Payment Routing System Using Settlement Likelihood Scores
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Existing payment systems often result in suboptimal payment processing and higher average costs due to predetermined merchant settings, leading to failed transactions and inefficiencies in routing payments.
Innovation Solution
A system and method for payment routing that generates a scaled score representing the likelihood of settlement for each potential payment rail, allowing for the selection of the most optimal rail for processing transactions based on factors like customer account data, transaction amount, and industry-specific risk assessments.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If predetermined merchant settings are used for payment routing, then the system is simple to operate, but the payment processing efficiency deteriorates and transaction failure rate increases
Solution Approach 1:
The system performs self-service by automatically evaluating multiple payment rails and selecting the optimal routing based on real-time settlement likelihood scores, eliminating the need for manual merchant configuration while maximizing processing efficiency
Solution Approach 2:
The system dynamically changes routing parameters by calculating scaled scores for different payment rails based on transaction-specific factors, allowing optimal routing decisions without fixed predetermined settings
2Device complexity
If predetermined merchant settings are used for payment routing, then the system complexity is low, but the transaction cost increases
Solution Approach 1:
The system autonomously evaluates settlement likelihood across multiple payment rails and selects the most cost-effective routing without requiring complex merchant-side configuration or intervention
Solution Approach 2:
The system uses feedback from settlement data and transaction characteristics to dynamically adjust routing decisions, optimizing cost efficiency without increasing system complexity
3Device complexity
If predetermined payment rail selection is used, then the routing process is simple, but the settlement reliability deteriorates
Solution Approach 1:
The system dynamically changes routing parameters by calculating scaled scores that reflect real-time settlement likelihood for different payment rails, improving reliability without requiring complex manual configuration
Solution Approach 2:
The system performs preliminary evaluation of multiple payment rails before transaction submission, selecting the most reliable routing option in advance to maximize settlement success
Data Source
AI summary
A system for payment routing according to a likelihood of settlement. The system includes processors and/or transceivers programmed to receive a payment transaction message relating to a putative payment transaction. The payment transaction message contains putative payment transaction data including a customer identification (ID) for an account and a transaction amount. The system generates a scaled score representing the likelihood of settlement of the putative payment transaction on at least one date for each of a plurality of potential payment rails. Based at least in part on the at least one scaled score for each of the plurality of potential payment rails, the system selects a payment rail from the plurality of payment rails. The system initiates, via the selected payment rail, a payment transaction corresponding to the putative payment transaction.