Settlement Engine with Dynamic Rules for Multi-Account Fund Distribution
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Solution Overview
Problem
Current financial transaction processing systems for merchant accounts lack flexibility and efficiency in managing multiple settlement accounts and settlement rules, leading to delayed fund transfers and limited control over settlement processes.
Innovation Solution
A computer-based funds settlement method and system that allows merchants to link multiple settlement accounts and define rules for fund distribution, enabling selective control over the amount, frequency, and type of transfers, using an acquirer processor with an electronic rules database and settlement engine to facilitate electronic transfers based on predefined rules.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If a merchant uses a traditional single settlement account system, then the system structure is simple, but the merchant lacks flexibility and control over fund distribution to multiple accounts
Solution Approach 1:
The patent segments the settlement process by introducing multiple settlement accounts (primary and secondary) that can be independently configured and managed. Each account serves specific purposes, allowing merchants to divide fund distribution across different accounts based on predefined rules, thereby achieving flexibility without requiring complete system redesign
Solution Approach 2:
The settlement account system is designed to be multi-functional by supporting both primary and secondary settlement accounts that can handle different types of transactions and fund distributions. The system universally manages various account types through a unified interface, providing adaptability while maintaining manageable complexity
2Ease of operation
If funds are transferred immediately to all settlement accounts, then fund availability is fast, but the merchant loses control over settlement timing and distribution
Solution Approach 1:
The patent implements dynamic settlement rules that allow flexible control over fund transfer timing and distribution. Merchants can configure rules to transfer funds immediately, delay transfers, or distribute funds based on varying conditions. This dynamic approach provides operational control while accommodating different timing requirements for different accounts
Solution Approach 2:
The system allows merchants to pre-configure settlement rules and account hierarchies in advance. By establishing the settlement structure and rules beforehand, merchants maintain control over the settlement process while enabling automatic execution that reduces delays in fund availability
3Adaptability or versatility
If the system supports multiple settlement accounts with custom rules, then settlement flexibility is enhanced, but the system complexity and difficulty of management increase
Solution Approach 1:
The patent segments the complexity by organizing multiple settlement accounts into a hierarchical structure with primary and secondary accounts. This segmentation allows merchants to manage complexity through clear account relationships and predefined rules rather than managing numerous independent accounts, maintaining settlement flexibility while reducing management burden
Solution Approach 2:
The system enables merchants to self-configure their settlement accounts and rules through automated processes. By allowing merchants to set up and modify their own settlement structures with intuitive interfaces and pre-defined templates, the system provides extensive customization while keeping management simple and accessible
Data Source
AI summary
Systems and methods for transferring funds from an acquirer processor account to one or more financial accounts. The transferring of the funds can be directed by one or more settlement rules defined by a merchant.