Pull Payment System Using Device Contact for Secure Transactions

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Solution Overview

Problem

In situations where service providers are paid in cash while clients use payment cards, payments are often delayed due to the lack of a secure and convenient method for immediate transactions.

Innovation Solution

A pull payment system where a financial institution registers payors and payees, enabling a pull payment relationship through user device contact or near contact events, allowing payees to initiate payments based on established rules and transaction codes.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Loss of time

If cash payment is used for service transactions, then payment immediacy is achieved, but security and convenience are reduced

Engineering Contradiction:

Improvepayment delayVSAvoidpayment security

Core Design Contradiction:

Loss of timeVSReliability

Solution Approach 1:

The patent introduces a financial institution computing system as an intermediary between payors and payees. This intermediary establishes pull payment relationships that enable secure electronic transactions, eliminating the need for cash while maintaining both security and convenience. The intermediary verifies identities, manages payment relationships, and processes transactions electronically.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent replaces the mechanical cash handling system with an electronic payment system. Instead of physical cash exchange, the system uses electronic data transmission through user devices and financial institution computing systems to transfer funds, achieving both immediacy and enhanced security.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

2Ease of operation

If cash payment is used for service transactions, then payment simplicity is maintained, but convenience for remote transactions is reduced

Engineering Contradiction:

Improvepayment simplicityVSAvoidremote payment capability

Core Design Contradiction:

Ease of operationVSAdaptability or versatility

Solution Approach 1:

The patent creates a universal payment system that handles multiple transaction types and scenarios through a single platform. The pull payment service can facilitate various payment scenarios including remote transactions, immediate payments, and structured payment arrangements, making the system adaptable to diverse payment needs while maintaining ease of operation.

Inventive Principle:

Principle #6Universality (Multi-functionality)

3Productivity

If traditional payment methods are used, then existing infrastructure is leveraged, but payment speed and efficiency are reduced

Engineering Contradiction:

Improvepayment processing speedVSAvoidsystem structure

Core Design Contradiction:

ProductivityVSDevice complexity

Solution Approach 1:

The patent implements preliminary action by pre-establishing pull payment relationships between payors and payees before transactions occur. During registration, the financial institution computing system verifies identities, creates user profiles, and sets up payment relationships in advance. This preliminary setup enables immediate payment processing when transactions occur, significantly improving payment speed.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The patent segments the payment system into distinct functional components: user device applications for interface and initiation, financial institution computing systems for processing and relationship management, and database systems for storing payment relationships and transaction data. This segmentation allows each component to specialize and operate efficiently, improving overall processing speed.

Inventive Principle:

Principle #1Segmentation

Data Source

PatentUS11734657B1Systems and methods for establishing a pull payment relationship

Publication Date: 2023.08.22 WELLS FARGO BANK NA

AI summary

A method includes generating a transaction code associated with a payee; generating and providing a payee device token to a payee user device; receiving an indication of a contact or a near-contact event between the payee user device and a payor user device; receiving from the payor user device, the transaction code associated with the payee and a transaction code associated with the payor, the transaction codes exchanged during the contact or near-contact event; establishing a payment relationship between the payee and the payor responsive to receiving the indication and the transaction codes from the payor user device; receiving a payment request; determining that the payment request originated from the user device identified by the payee device token, and that the received transaction codes contained in the payment request match stored transaction codes of the payee and the payor contained in a database; and processing the received payment request.