Payment Management System Electronic Return Processing
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Solution Overview
Problem
Current payment systems face challenges in efficiently processing and managing payments, particularly in handling rejected payments, which often require physical return methods like paper checks, leading to increased costs and delays for receivers.
Innovation Solution
A payment management system that electronically processes payments by determining acceptance or rejection based on validation parameters, allowing users to review and decide on conditionally accepted payments, and facilitating electronic returns, thereby eliminating the need for physical payment instruments.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If physical payment instruments (e.g., paper checks) are used to return rejected payments, then receivers can handle rejected payments, but check printing equipment and maintenance requirements, remote check printing, check inventory and security requirements, lost check procedures, and address resolution procedures are created which are costly and delay the return of payments
Solution Approach 1:
The patent replaces the mechanical system of physical check printing and handling with an electronic payment return system. The payment processing system electronically returns rejected payments to customers through electronic funds transfer, eliminating the need for check printing equipment, physical check inventory, and associated maintenance requirements. This substitution of electronic mechanisms for mechanical ones resolves the contradiction by maintaining payment return capability while eliminating设备 complexity.
Solution Approach 2:
The patent creates an electronic copy or representation of the payment return process instead of using physical checks. The payment processing system generates electronic payment return instructions that replicate the function of physical checks without requiring physical printing, storage, or handling. This copying approach allows receivers to handle rejected payments reliably while avoiding the complexity of physical payment instrument management.
2Reliability
If receivers review payments prior to acceptance to handle exception items and avoid legal implications, then payment security is improved, but processing time and operational complexity increase
Solution Approach 1:
The patent implements preliminary validation of payments against predefined business rules and criteria before they reach the receiver for review. The payment processing system automatically screens payments for exceptions, validates formatting, checks for obvious errors, and pre-approves payments that meet all criteria. This preliminary action reduces the number of payments requiring manual review, thereby maintaining security and compliance while reducing processing time.
Solution Approach 2:
The patent enables the payment processing system to automatically handle routine payment validation and exception handling without requiring manual receiver intervention for standard cases. The system self-validates payments against stored business rules, automatically rejects clearly invalid payments, and only presents conditionally acceptable payments for receiver review. This self-service capability maintains reliability through automated compliance checking while significantly reducing processing time and operational complexity.
3Productivity
If automatic payment acceptance is implemented based on validation parameters, then processing speed and productivity are improved, but the ability to handle exception items and maintain control is reduced
Solution Approach 1:
The patent implements a dynamic payment acceptance system that automatically accepts payments meeting predefined validation parameters while dynamically identifying and routing exception items for manual review. The system adapts its processing mode based on payment characteristics: fully automatic for valid payments, conditional with reviewer notification for exceptions, and manual rejection for invalid payments. This dynamic approach maintains high productivity for standard payments while preserving the ability to handle exception items appropriately.
Solution Approach 2:
The patent incorporates feedback mechanisms where payment reviewers can provide input on conditionally accepted payments, and this feedback is used to refine validation parameters and business rules. The system learns from exception handling patterns and adjusts automatic validation criteria accordingly. This feedback loop maintains productivity by continuously improving automatic validation accuracy while preserving adaptability through ongoing human oversight and rule refinement based on real-world exception cases.
Data Source
AI summary
Methods and systems of processing a plurality of payments. One method can include receiving the plurality of payments from a plurality of customers, the plurality of payments payable to at least one receiver, determining a first set of payments included in the plurality of payments to automatically accept based on validation parameters, determining a second set of payments included in the plurality of payments to reject based on the validation parameters, determining a third set of payments included in the plurality of payments to conditionally accept based on the validation parameters, and electronically prompting at least one user to accept or reject payments included in the third set of payments.