Real-Time Payment Fund Availability System
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Solution Overview
Problem
Conventional payment methods do not allow billers to access payment funds in real-time after a customer initiates a payment, leading to delays in fund availability.
Innovation Solution
A system and method that facilitate real-time determination of funds availability by communicating through a network with multiple depository financial institutions, sending inquiries, and receiving responses to assess the likelihood of payment based on current account status and balance, enabling immediate fund availability.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of time
If conventional payment methods are used, then customers can initiate payments through various channels, but billers cannot access payment funds in real-time
Solution Approach 1:
The system performs preliminary verification of account status and available balance before the payment transaction is completed. By checking whether the payer's account is open, active, and has sufficient funds in advance, the system ensures that funds can be made available to the biller in real-time without subsequent delays or failures.
Solution Approach 2:
The system establishes a feedback loop where the payer's financial institution continuously provides updated account status and balance information to the payment processing system. This real-time feedback mechanism enables the system to determine current funds availability and notify the biller immediately when payment funds are accessible, eliminating traditional delays.
2Measurement precision
If real-time account status verification is implemented, then fund availability can be determined immediately, but system complexity increases
Solution Approach 1:
The system introduces an intermediary payment processing platform that acts as a mediator between the payer's financial institution and the biller. This intermediary maintains real-time communication channels with multiple financial institutions, aggregates account status information, and provides a unified interface for determining funds availability, thereby managing complexity centrally rather than at each transaction point.
Solution Approach 2:
The system creates a universal payment processing framework that can verify account status and determine funds availability across multiple different financial institutions through a single standardized interface. This multi-functional system handles various account types, financial institutions, and payment methods through common verification protocols, reducing the need for institution-specific complex integrations.
Data Source
AI summary
A method including providing a payment application to a sender from an application service provider. The method also can include receiving a payment authorization from the sender through the payment application. The payment authorization can be made by the sender at a payment authorization time. The method additionally can include sending a first debit message from the application service provider to debit a first account maintained by a first financial institution based on the payment authorization. The method further can include receiving a first debit response at the application service provider in real-time after the payment authorization time. The method additionally can include generating a first promise-to-pay message for a second financial institution to credit a second account maintained by the second financial institution to make funds available in the second account in real-time after the payment authorization time. The method further can include sending the first promise-to-pay message. The method additionally can include receiving a first response at the application service provider indicating a successful credit of the second account maintained by the second financial institution. The method further can include sending a notification to the sender from the application service provider in real-time after the payment authorization time of the successful credit of the second account maintained by the second financial institution. Other embodiments are provided.