Remote Check Assurance System for Secure Payment Processing
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Solution Overview
Problem
Current payment systems, particularly those using credit, charge, or debit cards, impose high costs on merchants in the form of percentage fees and manual processes for ensuring payment guarantees, which are burdensome and inefficient.
Innovation Solution
A remote check assurance system and method that enables payors to create and certify checks electronically, using certified, cashier's, or teller's checks, which are guaranteed by the bank, allowing for secure and efficient payment processing without the need for physical presence or high transaction fees.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If payment card transactions (credit, charge, or debit cards) are used to provide payment assurances to payees, then payment reliability is improved, but transaction cost increases due to high percentage fees charged by card issuers
Solution Approach 1:
The patent introduces a bank as an intermediary that issues certified checks, cashier's checks, or teller's checks. The bank certifies the check by confirming available funds in the payor's account, thereby providing payment assurance to the payee without requiring high transaction fees from card issuers. The bank acts as a trusted mediator that guarantees payment while charging lower fees compared to payment card networks.
2Reliability
If traditional manual check certification processes are used, then payment assurance is provided, but processing time increases and requires physical presence at the bank
Solution Approach 1:
The patent replaces the manual mechanical process of check certification with an automated electronic system. The system automatically verifies the payor's account balance, generates the certified check electronically, and transmits it to the payee without requiring physical presence at the bank. This automation maintains the payment guarantee while dramatically reducing processing time from days to minutes or hours.
3Reliability
If certified checks are issued through traditional bank processes, then payment reliability is improved, but device complexity and operational requirements increase due to manual procedures and physical presence requirements
Solution Approach 1:
The patent enables payors to initiate and complete the check certification process remotely through electronic devices. The system automatically performs account verification, check generation, and transmission without requiring the payor to visit the bank or interact with bank staff. This self-service capability maintains payment certification reliability while significantly simplifying the operational process for users.
Data Source
AI summary
Before providing goods or services, a party being paid (the “payee”) wants assurances that the party paying (the “payor”) will in fact provide payment. Such assurances are even more important when the payee is using a payment method other than cash currency. A method described includes receiving for a transaction between a payor and a payee, via a computer network, payor and payee information and transaction information; receiving from an electronic device an indication for payment for the transaction, wherein the indication includes a type of payment and a transaction amount; communicating payor and payee information, transaction amount, and type of payment to a payor bank; receiving from the payor bank a notification of assurance associated with a check for payment for the transaction; and communicating to the payee that payment for the transaction is assured.