Pre-paid Payment Instrument Value Return System
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Solution Overview
Problem
Conventional pre-paid payment instruments often result in unused value due to lack of expiration mechanisms, leading to a value proposition favoring sellers, as there is no automatic return of unused funds to purchasers.
Innovation Solution
Implementing a system that receives value, associates it with a payment instrument, and automatically returns unused value to the sender upon expiration, optionally deducting a restocking fee, using a payment processor, issue engine, tracking engine, and redemption engine to manage pre-paid payment mechanisms.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If pre-paid payment instruments are issued without expiration mechanisms, then purchasers can use the instruments flexibly, but sellers retain unused value resulting in a value proposition favoring sellers
Solution Approach 1:
The system automatically performs the action of returning unused value to the purchaser at the predetermined expiration time without requiring manual intervention. This preliminary automation ensures that the value return process is initiated and completed before the instrument expires, resolving the contradiction by maintaining flexibility while eliminating seller retention of unused value.
Solution Approach 2:
The system implements a feedback mechanism where the tracking engine monitors instrument usage and the redemption engine automatically processes value returns based on expiration status. This feedback loop ensures that unused value is identified and returned to purchasers, transforming the value proposition from seller-favoring to purchaser-favoring while maintaining use flexibility.
2Device complexity
If no automatic return of unused value is implemented, then the system remains simple, but purchasers do not receive full value for pre-paid instruments
Solution Approach 1:
The system enables self-service by automatically detecting when an instrument expires and initiating the value return process without requiring purchaser action. The tracking engine monitors expiration status and the redemption engine processes returns automatically, maintaining relative system simplicity while ensuring purchasers receive full value for unused instruments.
Solution Approach 2:
The system recovers unused value from instruments that would otherwise be discarded or lost. When an instrument expires unused, the redemption engine recovers the remaining value and returns it to the purchaser, transforming a value loss into a recoverable resource while maintaining operational simplicity through automated processes.
3Productivity
If sellers track purchases against value manually, then basic tracking is possible, but redemption rates remain below 100 percent due to lost or unspent instruments
Solution Approach 1:
The system replaces manual tracking mechanisms with automated electronic systems. The tracking engine automatically monitors instrument usage and expiration status, while the redemption engine automatically processes value returns. This substitution of manual mechanics with automated systems enables 100% redemption by capturing and returning all unused value, eliminating losses from lost or unspent instruments.
Data Source
AI summary
Methods, systems, and apparatus, including computer program products, in which a method includes attributing a value to a pre-paid payment instrument, determining an expiration time associated with the pre-paid payment instrument, and automatically return an un-used portion of value associated with the pre-paid payment instrument at the expiration time to the purchaser.