RTS Node Routing for Real-Time Transaction Clearing
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Existing payment systems, particularly dual message systems, lack real-time clearing capabilities due to batch processing steps, leading to delays in fund release to merchants.
Innovation Solution
A method that utilizes an RTS node to determine transaction eligibility for real-time settlement, routes eligible transactions through an open banking network for authentication and consent, and generates an approval ID for real-time settlement, enabling near-real-time clearing by integrating real-time settlement components and open banking networks.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If batch processing is used for clearing transactions, then processing multiple transactions is efficient, but clearing time is delayed and not real-time
Solution Approach 1:
The patent segments the clearing process into two paths: a batch processing path for standard transactions and a real-time processing path for eligible transactions. The RTS node identifies and separates eligible transactions (those with pre-obtained approval IDs) from standard transactions, routing them through different processing channels. This segmentation allows the system to maintain batch processing efficiency for most transactions while providing real-time clearing for specific cases.
Solution Approach 2:
The patent implements preliminary action by obtaining customer approval and consent before the actual transaction occurs. The approval ID is generated in advance during the authentication phase, allowing the clearing process to skip time-consuming verification steps. This preliminary consent enables transactions to be cleared in real-time when they occur, as the authorization has already been established.
2Speed
If real-time settlement is implemented, then clearing speed is improved, but system complexity increases due to integration of multiple networks
Solution Approach 1:
The patent introduces an RTS node as an intermediary component that mediates between the dual message card network and the open banking network. This intermediary node handles the complexity of network integration, message routing, and protocol translation, allowing the real-time clearing functionality to be added without fundamentally redesigning the existing payment infrastructure. The RTS node acts as a bridge that manages the complexity of coordinating between multiple networks.
Solution Approach 2:
The RTS node is designed with multi-functionality, handling both batch processing and real-time processing, as well as managing authentication, clearing, and settlement functions across different networks. This universal design reduces overall system complexity by consolidating multiple functions into a single versatile component rather than requiring separate specialized systems for each function.
3Reliability
If dual message system is used, then authentication and authorization are separated, but clearing process becomes multi-step and slower
Solution Approach 1:
The patent merges the authentication and clearing processes for transactions that have pre-obtained approval IDs. When a transaction comes with a valid approval ID, the system combines the authentication verification and clearing authorization into a single streamlined process, eliminating the need for separate multi-step clearing procedures. This merging maintains security through the approval ID verification while significantly reducing clearing time.
Data Source
Figure 1a
Figure 1b
Figure 1c
AI summary
A method for enabling real-time clearing of a transaction between a cardholder and a merchant. The method comprises: receiving, by a real-time settlement (RTS) node, an authentication request from a merchant terminal associated with the merchant, the authentication request being associated with the transaction; determining, by the RTS node, that the transaction is eligible for real-time settlement; communicating, by the RTS node, with an open banking network to authenticate and acquire consent from the cardholder, thereby generating an approval identification (ID); forwarding, by the RTS node, the approval ID to the merchant terminal; receiving, by the RTS node, an authorization request associated with the transaction from an acquirer network node, the authorization request comprising the approval ID; responsive to receiving the authorization request, routing, by the RTS node, the authorization request to a card issuer node; receiving, by the RTS node, an authorization result from the acquirer network node, the authorization result comprising the approval ID; responsive to receiving the authorization result, extracting, by the RTS node, the approval ID from the authorization result; and responsive to extracting the approval ID, communicating, by the RTS node, with the open banking network to settle the transaction using the approval ID.