Real-Time Spend Approval Using Schedule-Based Compliance Checks

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Solution Overview

Problem

Organizations face vulnerabilities due to intentional or unintentional misuse of funds by individuals entrusted with payment means, such as digital cards and cryptocurrencies, leading to potential embezzlement and unauthorized transactions.

Innovation Solution

A method and system for real-time expenditure approval using processors to analyze scheduling data and compliance with predefined rules or learned approval patterns, identifying request attributes, and applying machine learning models to determine approval or rejection of transactions.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If organization funds are entrusted to individuals for daily operations, then operational efficiency and ease of transaction are improved, but vulnerability to embezzlement and unauthorized transactions increases

Engineering Contradiction:

Improveease of transactionVSAvoidvulnerability to embezzlement

Core Design Contradiction:

Ease of operationVSReliability

Solution Approach 1:

The patent introduces an intermediary approval system that mediates between individuals and organization funds. The system receives expenditure requests, analyzes them against predefined rules and scheduling data, and provides automated approval or rejection decisions, thereby protecting funds while maintaining operational efficiency

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The system implements feedback mechanisms by continuously monitoring expenditure requests, comparing them with scheduling data and approval patterns, and providing real-time approval decisions. This feedback loop ensures compliance while enabling smooth operations

Inventive Principle:

Principle #23Feedback

2Reliability

If manual approval processes are used for expenditure requests, then control over fund usage is improved, but processing time and operational efficiency deteriorate

Engineering Contradiction:

Improvecontrol over fund usageVSAvoidprocessing time

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The system enables self-service automated approval by analyzing expenditure requests against predefined rules and scheduling data without requiring manual human intervention for routine decisions. The system autonomously determines approval or rejection based on compliance with organization policies

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

The patent replaces manual mechanical approval processes with an automated electronic system that uses machine learning models and rule-based analysis to evaluate expenditure requests, thereby eliminating delays associated with human processing while maintaining control

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

3Reliability

If predefined expenditure rules are strictly enforced, then compliance and security are improved, but flexibility and adaptability to changing business needs deteriorate

Engineering Contradiction:

ImprovecomplianceVSAvoidflexibility

Core Design Contradiction:

ReliabilityVSAdaptability or versatility

Solution Approach 1:

The system implements dynamic adaptability by using machine learning models that learn from historical approval patterns and scheduling data. The system can adapt its approval behavior based on learned patterns while maintaining compliance with core organization policies, allowing flexibility without sacrificing security

Inventive Principle:

Principle #15Dynamics

Solution Approach 2:

The patent enables parameter changes in expenditure rules based on scheduling data and learned patterns. The system can adjust approval thresholds and parameters dynamically based on business context, activity types, and historical data, providing flexibility while maintaining compliance

Inventive Principle:

Principle #35Parameter changes

4Measurement precision

If comprehensive analysis of scheduling data and approval patterns is performed, then accuracy of approval decisions is improved, but system complexity and computational resources required increase

Engineering Contradiction:

Improveaccuracy of approval decisionsVSAvoidsystem complexity

Core Design Contradiction:

Measurement precisionVSDevice complexity

Solution Approach 1:

The patent segments the analysis process into distinct components: scheduling data analysis, approval pattern recognition, rule-based compliance checking, and final decision-making. This segmentation allows the system to process complex information through modular stages, improving accuracy while managing complexity

Inventive Principle:

Principle #1Segmentation

Data Source

PatentUS12572945B2Programmatic approvals of corporate spend and employee expense

Publication Date: 2026.03.10 CUSTODIA INC

AI summary

A method of approving expenditures in real-time, comprising receiving an expenditure request initiated by a user associated with an organization for transferring funds of the organization in exchange for one or more products and/or services, identifying request attribute(s) relating to the user, the value, the funds, the product, the service, a time of reception of the expenditure request and/or a geographical location of the user, analyzing scheduling data obtained from one or more online data sources which is indicative of one or more activity attributes of activity(s) scheduled for the user, automatically determining compliance between the request attribute(s) and one or more expenditure rules predefined for the product(s) and/or service(s) with respect to the activity attribute(s) and transmitting a response to the expenditure request according to the determination which includes approval of the expenditure request in case of compliance and rejection in case of incompliance.