Intermediary System for Disparate Payment Network Routing
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Solution Overview
Problem
Current systems for processing electronic transactions in financial institutions face challenges in managing complex and diverse payment networks, leading to difficulties for consumers and merchants in efficiently managing multiple accounts and transactions, particularly for small merchants with low user volumes.
Innovation Solution
A processor-based system that facilitates electronic payments between disparate payment networks by selecting and routing transaction data through multiple networks using profile data and business rules, allowing a single account to access multiple networks and enabling automated interactions between autonomous payment networks.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If multiple autonomous payment networks are used to process transactions, then payment versatility and network access are improved, but system complexity and difficulty of managing multiple accounts increase
Solution Approach 1:
The patent introduces an intermediary system that acts as a mediator between disparate payment networks and participating entities. This intermediary maintains profile data sets for multiple networks, automatically selects appropriate networks for transactions, and routes payments accordingly. By centralizing the complexity of managing multiple networks in this intermediary layer, individual merchants and consumers can access diverse payment networks without directly managing the complexity of each network's protocols and requirements.
Solution Approach 2:
The patent creates a universal access mechanism that enables a single account to function across multiple disparate payment networks. The system provides a unified interface and account structure that can interact with various payment networks (proprietary, association, international) through standardized processes. This universal approach allows participants to access multiple networks without needing separate accounts and management procedures for each network.
2Reliability
If direct agreements between multiple payment networks are required, then transaction reliability is improved, but ease of operation and scalability worsen
Solution Approach 1:
The intermediary system serves as a central coordinating body that establishes and maintains agreements with multiple payment networks on behalf of all participants. Rather than requiring each merchant and consumer to negotiate direct agreements with multiple networks, the intermediary centralizes these agreements and manages the relationships. This approach ensures transaction reliability through established agreements while maintaining ease of operation for individual users who simply interact with the intermediary's standardized interface.
3Reliability
If proprietary processing functions are used by payment networks, then network control and security are improved, but device complexity and difficulty of integration increase
Solution Approach 1:
The intermediary system acts as a buffer between participants and the proprietary processing functions of various payment networks. It maintains profile data sets that contain the necessary information to interact with each network's proprietary systems and implements standardized translation and routing logic. This allows the intermediary to preserve each network's control and security measures while presenting a simplified, standardized interface to merchants and consumers, thereby reducing integration complexity.
4Adaptability or versatility
If multiple accounts across different networks are maintained, then payment versatility is improved, but loss of time and effort in managing accounts increases
Solution Approach 1:
The patent implements a universal account structure that can access multiple payment networks through a single interface. Instead of requiring users to maintain separate accounts on each network, the system provides a unified account that automatically routes transactions through the appropriate network based on profile data and transaction characteristics. This eliminates the need for users to manually manage multiple accounts across different networks, thereby reducing the time and effort required while preserving access to diverse payment options.
Data Source
AI summary
Electronic transaction data and/or electronic payment data therefor is routed to disparate payment networks for a multitude of transactions. A software-programmed computer type circuit receives and processes point-of-sale transaction data to select two disparate payment networks for processing electronic payment for the transaction data. Transaction and/or payment data is routed to each of the disparate payment networks, to respectively debit and credit payment accounts, to provide payment to a seller on behalf of a buyer involved in the transaction.