Rolling Payment Reservation System for Credit Optimization
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Current payment systems for multiple items or services on a credit card often require a single reservation and payment capture upfront, which can lead to inefficient credit utilization and increased costs, as they do not differentiate between items and do not account for varying shipment or activation times.
Innovation Solution
A rolling payment reservation system that splits reservations and payment capture for different items based on their type, allowing for multiple credit reservations and automatically initiating or canceling reservations based on historical data and predicted events, such as shipment times, to optimize credit availability.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If a single reservation and payment capture is made upfront for multiple items, then the payment process is simple and fast, but credit utilization becomes inefficient and costs increase
Solution Approach 1:
The patent segments the payment process by creating separate reservations and capture events for each individual item in an order, rather than treating the entire order as a single transaction. This allows each item to be charged independently based on its own fulfillment status, improving credit utilization efficiency while maintaining streamlined processing through automated rules.
2Ease of operation
If a single reservation is made for the entire order amount, then credit card availability is reduced upfront, but the payment system is simpler to manage
Solution Approach 1:
The patent implements dynamic reservation management where the total reserved amount fluctuates based on individual item fulfillment. As items are shipped or delivered, their reservations are released back to the customer's available credit. This dynamic approach maximizes available credit throughout the order fulfillment process while maintaining automated simplicity in managing multiple reservations.
3Productivity
If payment capture occurs immediately for all items, then the payment process is straightforward, but it does not account for varying shipment or activation times
Solution Approach 1:
The patent establishes preliminary reservations for each item at the time of order placement, securing the necessary credit before fulfillment begins. However, the actual payment capture is deferred until each item is individually fulfilled (shipped, delivered, or activated). This preliminary reservation approach maintains fast payment processing capability while adapting to varying fulfillment timelines through automated capture triggers.
Data Source
AI summary
A rolling electronic payment reservation and reservation system is provided. In aspects, reservations and payment capture for different items on a credit card (or other payment instrument) are split based on the type of item, and rolling, multiple credit reservations are made for different items on the same, single order.