Proxy Transaction Accounts for Automated Group Expense Splitting
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Existing methods for group expense sharing are cumbersome, insecure, and fail to maximize rewards, leading to potential fraud and incomplete transaction tracking.
Innovation Solution
A proxy transaction account system that allows group members to share expenses through a unified payment instrument, with automated expense splitting and reward optimization, while maintaining privacy and reducing fraud risk.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If consumers use multiple payment instruments for group expenses, then payment flexibility is improved, but expense tracking complexity increases and security risks worsen
Solution Approach 1:
The patent merges multiple payment instruments into a single proxy transaction account that consolidates payment tracking for group expenses. The system combines multiple individual payment accounts under one unified proxy account, allowing automatic tracking of all transactions in one location rather than requiring separate tracking for each payment instrument.
Solution Approach 2:
The proxy transaction account acts as an intermediary between the merchant and multiple consumer payment accounts. It receives payment authorization requests from merchants, determines which consumer accounts to charge, and processes payments through selected payment instruments, thereby simplifying the tracking complexity for all parties involved.
2Adaptability or versatility
If consumers use multiple payment instruments for group expenses, then payment flexibility is improved, but security risks increase
Solution Approach 1:
The proxy transaction account serves as a secure intermediary that controls access to multiple consumer payment accounts. It implements authentication mechanisms and authorization checks before processing transactions, reducing security risks by centralizing security controls rather than requiring each consumer to manage security for their own payment instruments.
Solution Approach 2:
The system enables self-service security features where consumers can control which payment instruments are available for group expenses, set spending limits, and review transactions through the proxy account interface. This gives consumers direct control over their payment security while maintaining flexibility.
3Adaptability or versatility
If consumers manually split bills after transactions, then payment flexibility is maintained, but time consumption increases
Solution Approach 1:
The system performs preliminary actions by automatically determining expense allocations and charging consumer accounts at the time of transaction rather than requiring post-transaction bill splitting. The proxy account calculates which consumers are responsible for which expenses and processes payments immediately, eliminating the need for manual reconciliation later.
Solution Approach 2:
The system provides self-service automated expense splitting where the proxy transaction account automatically calculates allocations, notifies relevant consumers of charges, and processes payments without requiring manual intervention. This maintains payment flexibility while eliminating the time-consuming manual bill splitting process.
4Adaptability or versatility
If different consumers use different payment instruments, then payment flexibility is improved, but reward optimization capability deteriorates
Solution Approach 1:
The system dynamically changes the parameter of payment instrument selection based on reward optimization criteria. The proxy transaction account evaluates available payment instruments, their associated reward programs, and the specific transaction context to determine the optimal payment method that maximizes rewards while maintaining consumer flexibility in choosing from multiple payment options.
Data Source
AI summary
Disclosed are various embodiments for creating a proxy transaction account for a group of members (e.g., consumers) to use when sharing occasion-based expenses (e.g., trip expense, party expenses, etc.). In various examples, a proxy transaction account for a group of members can be created and a payment instrument (e.g., a physical or virtual payment card) associated with the proxy transaction account can be presented to a merchant to pay for the goods or services associated with a transaction. According to various examples, the transaction amount for the transaction can be split and the respective split amount can be applied to each member payment account of the group of members or the transaction amount can be applied to one or more selected member payment account(s) of the group of members in order to maximize reward offers associated with the transaction.