Payment Network Server Fund Transfer Processing
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Solution Overview
Problem
Current point-of-sale (POS) terminals experience long processing times for cashless payments due to the need for authorization processes, which negatively impact customer experience and productivity.
Innovation Solution
A payment network server facilitates direct fund transfers between customer and merchant accounts through an intermediate account, using customer and merchant mandates to streamline transactions and reduce processing time.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If authorization process is used for card-based payments, then transaction security is ensured, but processing time increases significantly
Solution Approach 1:
The system performs preliminary actions by obtaining customer authorization and setting up standing instructions in advance. The customer mandate stored in the database contains pre-approved authorization that can be executed immediately during transactions without real-time authorization delays, thus resolving the contradiction between security and processing speed.
Solution Approach 2:
The payment network server acts as an intermediary between the customer account and merchant account. It holds the customer mandate and standing instructions, enabling direct fund transfers without requiring real-time authorization from the customer or merchant, thereby reducing processing time while maintaining security through pre-established agreements.
2Manufacturing precision
If individual account linking is implemented for fund transfers, then transaction accuracy is improved, but system complexity and administrative costs increase
Solution Approach 1:
The payment network server provides a universal solution by maintaining a centralized database of customer mandates and standing instructions that can be used across multiple transactions and merchants. This eliminates the need for individual account linking for each transaction, reducing system complexity while maintaining transaction accuracy through the standardized mandate verification process.
Solution Approach 2:
The system enables self-service by automatically verifying customer mandates and executing fund transfers based on pre-stored standing instructions. The payment network server autonomously matches transaction requests with corresponding mandates in the database, eliminating manual account linking and reducing administrative complexity while ensuring accurate fund transfers.
3Reliability
If traditional dual-message transaction system is used, then fund verification is thorough, but customer waiting time increases
Solution Approach 1:
The system performs fund verification in advance by obtaining customer authorization and storing standing instructions that confirm fund availability before transactions occur. During actual payments, the system simply executes the pre-verified instructions, eliminating the need for real-time dual-message verification and reducing customer waiting time while maintaining thorough fund verification.
Data Source
AI summary
A payment network server for processing a payment transaction at a point-of-sale terminal is described. The server comprises a transaction module, a query module and a transfer module. The transaction module is configured to: (i) receive a payment transaction request comprising at least transaction details and a fund transfer indicator, the transaction details comprise at least a customer identifier, a merchant identifier, and a payment amount, the fund transfer indicator indicating that the payment transaction is to be processed by fund transfer; and (ii) transmit a payment transaction response indicating if the payment transaction is approved or refused to proceed.