Smart Routing Engine for Wire to ACH Conversion
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Solution Overview
Problem
Current technology lacks a reliable method for straight-through processing of wire transfers as Automated Clearing House (ACH) transfers, particularly due to the absence of a technical platform that can accurately and efficiently convert wire transfer requests into ACH format, and financial institutions often lack the necessary routing details for ACH settlement.
Innovation Solution
A smart routing process that filters electronic payment requests associated with wire transfers, converts them into a native format, and transforms them into ACH format for fulfillment, utilizing a system comprising a filtering engine, conversion engine, and fulfillment engine to ensure accurate and reliable conversion.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Speed
If wire transfers are used for international payments, then payment speed is improved, but transaction cost increases
Solution Approach 1:
The system dynamically changes the payment method parameter based on time, location, and transaction characteristics. It converts wire transfer requests to ACH transfers by modifying routing parameters (SWIFT BIC to ABA routing number, account number formats), enabling the same payment to be processed through different networks with different cost-speed characteristics.
Solution Approach 2:
The patent introduces an intermediary payment processing system that sits between the wire transfer network and ACH network. This intermediary automatically translates and routes payments between networks, enabling seamless conversion from wire transfer format to ACH format without requiring manual intervention or knowledge of ACH routing details at the originating institution.
2Loss of energy
If ACH transfers are used for international payments, then transaction cost is reduced, but payment speed deteriorates
Solution Approach 1:
The system performs preliminary routing analysis and conversion before the payment is initiated. By pre-configuring routing rules and converting wire transfer requests to ACH format in advance, the system enables cost-effective ACH processing without delaying the payment timeline, as the conversion happens automatically as part of the initiation process.
3Loss of energy
If smart routing conversion from wire to ACH is implemented, then transaction cost is reduced, but system complexity increases
Solution Approach 1:
The patent segments the payment processing system into distinct functional modules: a filtering engine that identifies wire transfer requests, a conversion engine that translates formats, and a routing engine that directs payments to ACH networks. This segmentation allows each component to handle specific tasks independently, reducing overall system complexity through modular design.
Solution Approach 2:
The system implements self-service through automated routing rules and format conversion. The filtering engine automatically identifies wire transfer requests without manual input, the conversion engine autonomously translates between formats using predefined rules, and the routing engine automatically directs payments to appropriate networks, eliminating the need for manual intervention and reducing operational complexity.
4Measurement precision
If manual routing configuration is used for ACH transfers, then routing accuracy can be maintained, but processing efficiency deteriorates
Solution Approach 1:
The system incorporates feedback mechanisms where routing decisions and conversion results are tracked and used to refine routing rules. The filtering engine learns from successful conversions and adjustments, continuously improving routing accuracy based on actual performance data while maintaining high processing efficiency through automated rule-based decision-making.
Data Source
AI summary
Systems, apparatuses, methods, and computer program products are disclosed for performing smart routing of electronic payment requests. An example method includes: obtaining an electronic payment request; determining that the electronic payment request is associated with a pre-selected payment type; and processing, in response to the determination, the electronic payment request as an electronic payment having a first payment type different from the pre-selected payment type.