Payment Likelihood Service for Real-Time Funds Availability
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Solution Overview
Problem
Conventional payment methods do not allow billers to have immediate access to payment funds in real-time after a customer initiates a payment, relying on batch data for fraud prevention and lacking direct interaction between financial institutions for real-time funds availability determination.
Innovation Solution
A system that facilitates real-time determination of funds availability by enabling interaction between financial institutions through a network, using a processing mechanism that receives inquiries from one financial institution, routes them to another, and provides payment likelihood indicators based on current account data, allowing for immediate decision-making on transaction approval or denial.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If conventional batch processing methods are used for fraud prevention, then system complexity is reduced, but real-time funds availability determination is lost
Solution Approach 1:
The patent introduces a payment likelihood service as an intermediary between financial institutions. This service receives requests from one financial institution, determines payment likelihood by analyzing account data from another financial institution, and returns the determination. This intermediary approach enables real-time funds availability determination without requiring direct complex integration between all financial institutions, thus resolving the contradiction between reliability and system complexity.
2Productivity
If real-time interaction between financial institutions is implemented, then payment processing speed is improved, but system complexity increases
Solution Approach 1:
The payment likelihood service acts as a mediator that simplifies real-time interactions between financial institutions. Instead of requiring direct complex connections between all institutions, the service receives standardized requests, performs the necessary data analysis and coordination, and returns payment likelihood determinations. This enables fast payment processing while keeping the system architecture manageable through centralized coordination.
Solution Approach 2:
The payment likelihood service provides a universal interface that handles multiple types of payment transactions and interactions between different financial institutions through a standardized process. This multi-functional service reduces overall system complexity by consolidating various interaction patterns into a single reusable mechanism, enabling improved payment processing speed without proportionally increasing complexity.
3Measurement precision
If current account data is used for fraud prevention, then payment processing accuracy is improved, but data access complexity increases
Solution Approach 1:
The payment likelihood service serves as an intermediary that handles the complexity of accessing and analyzing current account data from multiple financial institutions. It receives payment requests, automatically retrieves and analyzes relevant account data, determines payment likelihood, and returns the result. This approach enables high payment processing accuracy through access to current data while hiding the data access complexity from the requesting financial institutions.
Data Source
AI summary
A system including one or more processors and one or more non-transitory computer-readable media storing computing instructions configured to run on the one or more processors and perform various acts. The acts can include receiving, from a first entity, a first request to pay a second entity. The first request can include (a) an account identifier of an account of the first entity at the second entity, (b) a payment amount, and (c) a preauthorization by the first entity to pay the payment amount to the second entity. The acts also can include sending a second request to the second entity based on the first request. The acts additionally can include receiving, from the second entity, an invoice for the first entity for the payment amount. The acts further can include facilitating a real-time payment transaction from a first account of the first entity at a first financial institution to a second account of the second entity at a second financial institution without transmitting the invoice to the first entity, without receiving an authorization from the first entity to pay the invoice or the payment amount to the second entity after receiving the invoice from the second entity, and based on the preauthorization of the first request. Other embodiments are described.