Single Transaction Instrument for Multiple Linked Accounts
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Solution Overview
Problem
Current payment systems require multiple transaction instruments for different accounts, leading to inconvenience and increased costs for users and merchants, as they do not efficiently manage transactions across linked accounts.
Innovation Solution
A system that allows for fund transfers from multiple linked transaction accounts using a single transaction instrument, which selects the appropriate account based on preferences such as highest balance or transaction type, and communicates with existing proprietary networks for credit and debit card transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If a user has separate transaction instruments for each transaction account, then each account can be managed independently, but the user must carry and manage multiple cards, increasing complexity and inconvenience
Solution Approach 1:
The patent combines multiple transaction accounts under a single transaction instrument (card). The system allows a user to link multiple accounts (checking, savings, credit, etc.) to one card, enabling the card to represent multiple accounts simultaneously. This merging eliminates the need to carry separate cards for each account while maintaining the ability to access and manage different accounts through the single instrument.
Solution Approach 2:
The single transaction instrument is designed to be universal, capable of representing and accessing multiple different types of accounts. The card can function as a checking account card, savings account card, credit card, or other transaction accounts depending on which account is selected for the transaction. This multi-functionality allows one instrument to perform the roles of multiple specialized instruments.
2Productivity
If a payment system processes transactions directly through authorization systems without checking account linkages, then processing is simpler and faster, but it cannot support fund transfers across multiple linked accounts
Solution Approach 1:
The system performs preliminary actions by pre-linking multiple accounts to a single transaction instrument and storing the account hierarchy and relationships in a database before transactions occur. When a transaction is initiated, the system has already prepared the account linkages and can quickly determine which account to use or transfer funds from, eliminating the need for complex real-time account discovery during transaction processing.
Solution Approach 2:
The patent introduces an intermediary payment processing system that sits between the traditional authorization system and the accounts. This intermediary layer handles the complexity of account linkages, fund transfers, and account selection, while presenting a simple interface to merchants and users. The intermediary manages the account relationships and coordinates fund transfers across linked accounts without requiring changes to the underlying authorization infrastructure.
3Adaptability or versatility
If merchants accept multiple types of payment instruments, then they can serve more customers, but their payment processing costs and accounting complexity increase
Solution Approach 1:
The single transaction instrument serves as a universal payment method that can represent multiple account types (checking, savings, credit, etc.). Merchants need to accept only this single instrument type, and the system automatically handles routing to the appropriate underlying account. This eliminates the need for merchants to integrate with multiple different card networks and payment systems, reducing their processing complexity while maintaining the ability to access various funding sources.
Data Source
AI summary
Systems, methods, and articles of manufacture for transferring funds from multiple transaction accounts are provided. The system may allow a user to link one or more credit, debit, or other similar transaction accounts to a single transaction instrument. The system may receive a transaction authorization request, retrieve a merchant account number and a consumer transaction account number based on the transaction authorization request, and generate a funds transfer request comprising the merchant account number, the consumer transaction account number, and a payment amount. The funds transfer request may be executed by a transaction account network to transfer funds from the consumer transaction account to the merchant account.