Real-Time Payment Order Validation for Secure Funds Transfer
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Solution Overview
Problem
Current financial technologies lack a universal system for real-time funds transfers both within one country and across borders, with high error probability and security vulnerabilities due to lack of preliminary checks and approvals, leading to potential fraudulent transactions and regulatory violations.
Innovation Solution
A system and method that utilize a data flow to prepare and approve payment orders in real-time, ensuring reliable identification of the recipient, correcting errors, and calculating exchange rates and fees before the transfer, using existing payment infrastructure to support any payment instrument.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Speed
If real-time funds transfer is implemented without preliminary checks, then transaction speed is improved, but reliability and security deteriorate due to errors and fraudulent transactions
Solution Approach 1:
The system performs preliminary validation of payment order data, including recipient identification and account status verification, before the actual funds transfer occurs. This preliminary action ensures that errors and fraudulent transactions are detected in advance, maintaining high transaction speed while improving reliability.
Solution Approach 2:
The transaction process is divided into separate stages: data validation stage and funds transfer stage. The validation stage checks recipient identification, account status, and other critical information, while the transfer stage executes the actual funds movement. This segmentation allows comprehensive checks without slowing down the overall transaction speed.
2Reliability
If comprehensive preliminary checks are performed before funds transfer, then reliability is improved, but transaction speed deteriorates due to processing time
Solution Approach 1:
The system performs preliminary validation of payment order data, including recipient identification and account status verification, before the actual funds transfer occurs. This preliminary action ensures that errors and fraudulent transactions are detected in advance, maintaining high transaction speed while improving reliability.
Solution Approach 2:
The system automatically validates payment order data using pre-established criteria and databases, such as checking recipient account status and identification information against known data. This automated self-service validation reduces manual processing time while maintaining comprehensive checks, thus improving reliability without significantly slowing down transactions.
3Adaptability or versatility
If a universal system is designed for both domestic and cross-border transfers, then adaptability is improved, but device complexity increases
Solution Approach 1:
The system is designed as a universal platform that handles both domestic and cross-border funds transfers through a common architecture. The same validation mechanisms, recipient identification processes, and security checks are applied regardless of transfer type, eliminating the need for separate systems and reducing overall complexity while maintaining high adaptability.
Solution Approach 2:
The system adapts to different transfer types by dynamically adjusting validation parameters and checks rather than using entirely different processes. For example, cross-border transfers may require additional compliance checks while domestic transfers use standard validation, but the underlying system architecture remains the same, reducing complexity through parameter-based flexibility.
4Reliability
If recipient identification is performed in advance, then security against fraudulent transactions is improved, but loss of time occurs during preliminary verification
Solution Approach 1:
The system performs preliminary validation of payment order data, including recipient identification and account status verification, before the actual funds transfer occurs. This preliminary action ensures that errors and fraudulent transactions are detected in advance, maintaining high transaction speed while improving reliability.
Solution Approach 2:
The system automatically validates payment order data using pre-established criteria and databases, such as checking recipient account status and identification information against known data. This automated self-service validation reduces manual processing time while maintaining comprehensive checks, thus improving reliability without significantly slowing down transactions.
Data Source
AI summary
The invention relates to the financial industry, more specifically to systems and methods for automatic transaction processing for funds transfer between accounts in real time upon prior approval. The described methods and systems make it possible to perform interbank transfers in real time both within one country and for cross-border funds transfers. The technical result is an expansion of the scope of application, since the system and method use the existing payments acceptance and processing infrastructure, make it is possible to use any payment instrument for transferring funds both within one country and for cross-border transfers; an improvement of the transfer rate as the funds flow is not accompanied by approval and calculation of the exchange rate and fee; an improvement of the funds transfer reliability by decreasing the likelihood of payment refusal due to the fact that the funds flow is performed after preliminary preparation.