Payment Network Interface for Disparate Transaction Systems

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Solution Overview

Problem

Existing computer systems and networks in financial institutions struggle to efficiently process the complex and expanding variety of electronic transactions and accounting data, particularly with the increasing use of electronic payments and disparate payment networks.

Innovation Solution

A computer circuit arrangement and method that facilitates electronic payment between disparate autonomous payment networks by using a point-of-sale interface circuit, data-storage circuit, payment network interface modules, and a software-programmed control processor circuit to communicate with specific payment networks and process transactions.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Adaptability or versatility

If a single payment network is used for all transactions, then device complexity is reduced, but adaptability to different payment networks deteriorates

Engineering Contradiction:

Improveadaptability to different payment networksVSAvoiddevice complexity

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The patent introduces a payment network interface as an intermediary component that mediates between the payment processing system and multiple disparate payment networks. This interface module handles protocol conversion and communication with various networks (e.g., Visa, MasterCard, American Express), allowing the core system to maintain simplicity while adapting to different network requirements through the intermediary layer.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The payment network interface is designed with multi-functionality to support multiple payment networks simultaneously. A single interface module can handle transactions for different payment networks by selecting the appropriate network based on the transaction type, card type, or merchant preferences, thereby achieving universality without requiring separate dedicated interfaces for each network.

Inventive Principle:

Principle #6Universality (Multi-functionality)

2Adaptability or versatility

If multiple payment networks are supported, then adaptability improves, but device complexity increases

Engineering Contradiction:

Improvesupport for multiple payment networksVSAvoiddevice complexity

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The patent segments the payment processing system into distinct functional modules: a payment network interface module for network-specific protocols, a transaction processing module for business logic, and a database module for data storage. This segmentation allows each module to be optimized independently, reducing overall system complexity while maintaining support for multiple payment networks through modular design.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The system incorporates dynamic selection mechanisms that automatically determine which payment network interface to use based on real-time transaction characteristics. The system can dynamically switch between different payment networks depending on the card type, merchant agreement, or available networks, making the complexity manageable through dynamic rather than static configuration.

Inventive Principle:

Principle #15Dynamics

3Productivity

If proprietary payment networks are used, then transaction processing efficiency improves, but adaptability to external networks deteriorates

Engineering Contradiction:

Improvetransaction processing efficiencyVSAvoidinteroperability with external networks

Core Design Contradiction:

ProductivityVSAdaptability or versatility

Solution Approach 1:

The payment network interface acts as an intermediary that bridges proprietary internal networks with external payment networks. It translates between the proprietary transaction formats and the standardized protocols of external networks (Visa, MasterCard), enabling efficient internal processing while maintaining broad external interoperability through protocol conversion at the interface level.

Inventive Principle:

Principle #24Intermediary (Mediator)

4Adaptability or versatility

If complex payment processing is implemented, then transaction capability improves, but ease of operation deteriorates

Engineering Contradiction:

Improvetransaction capabilityVSAvoidease of operation

Core Design Contradiction:

Adaptability or versatilityVSEase of operation

Solution Approach 1:

The system implements self-service mechanisms where the payment network interface automatically selects the appropriate payment network and handles protocol conversions without requiring manual intervention. The transaction processing system autonomously determines the best network to use based on pre-configured rules and real-time conditions, maintaining complex transaction capabilities while simplifying operation through automation.

Inventive Principle:

Principle #25Self-service

Data Source

PatentUS20250045712A1Profile based arrangements and methods for disparate network systems

Publication Date: 2025.02.06 US BANK NATIONAL ASSOCIATION

AI summary

Electronic transaction data sets are processed for a multitude of disparate transactions using a plurality of autonomous payment networks. A software-programmed computer circuit receives and processes electronic transaction data to identify and use electronic ID data to retrieve stored profile data. The computer circuit then uses the retrieved profile data to select one of a plurality of payment networks available to each of a buyer and seller involved in the transaction. Electronic payment is carried out using the selected payment networks.