Settlement Engine for Virtual Wallet Interoperability
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Solution Overview
Problem
Existing virtual wallet systems are incompatible with each other, preventing seamless funds transfers and are primarily limited to online transactions, restricting their usability in various financial transaction scenarios.
Innovation Solution
A method and system for managing funds transfers using a settlement engine that receives payment vehicle identifiers, transaction details, and merchant identifiers to facilitate transactions between virtual wallets, allowing for the transfer of funds from a customer's virtual wallet to a merchant's virtual wallet, even if the transaction value exceeds the available account balance, by processing a first amount that is less than or equal to the transaction value and sending a corresponding second amount to the merchant's wallet.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If virtual wallets are designed to operate independently, then each wallet can maintain its own security and functionality, but transfers between different wallets are prevented due to incompatibility
Solution Approach 1:
The patent introduces a settlement engine as an intermediary component that mediates between different virtual wallets. The settlement engine receives payment vehicle identifiers from various wallets, processes transactions, and enables fund transfers between incompatible wallets by acting as a universal intermediary that translates between different wallet systems while maintaining their individual security models
2Reliability
If virtual wallets are designed for online transactions only, then security control can be maintained through internet-based authentication, but usability is restricted and cannot support offline transactions
Solution Approach 1:
The settlement engine is designed with universal functionality that handles both online and offline transaction scenarios. It can process payment vehicle identifiers from various sources including internet-based systems and offline point-of-sale terminals, making the system adaptable to multiple transaction environments while maintaining consistent security controls through its standardized processing architecture
3Reliability
If the system requires full transaction value to be available in the account balance, then transaction security is ensured, but transactions cannot be processed when the account balance is insufficient
Solution Approach 1:
The system performs preliminary actions by receiving and validating the payment vehicle identifier before the actual transaction execution. The settlement engine pre-processes the transaction by verifying the payment vehicle and establishing the transaction framework, allowing the transaction to proceed even when full balance availability cannot be confirmed at the moment of initiation, thereby improving productivity while maintaining security through preliminary validation
Data Source
AI summary
A method for managing funds is provided. The method includes receiving a payment vehicle identifier by which a payment vehicle can be identified, the payment vehicle includes an available account balance, transaction details of a purchase transaction, and the transaction details, sending a first amount that is less than or equal to the transaction value if the transaction value does not exceed the available account balance, and sending a second amount that is less than or equal to the first amount. The transaction details include a transaction value, a merchant identifier of a merchant with whom the purchase transaction is being made, and a merchant wallet identifier by which a merchant virtual wallet can be identified, the merchant virtual wallet being associated with the merchant identifier.