Splitting Group Charges via Payment Processor Segmentation
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Solution Overview
Problem
Existing systems lack an efficient method for settling payments among group members, where contributions are often unequal, leading to difficulties in distributing shared financial obligations.
Innovation Solution
A system and method for splitting a shared financial obligation, where a single record of charge is received and split among group members using a payment processor that creates a group of transaction accounts, calculates a settlement amount based on various factors, and transfers the amount among members.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If a single individual makes a single payment towards a shared financial obligation, then the payment process is simplified, but it creates an imbalance where one member bears the full burden while others contribute unequally
Solution Approach 1:
The patent segments the single payment into multiple sub-payments allocated to different group members based on their individual contributions. The system divides the total financial obligation into portions corresponding to each member's actual expenditure, transforming one lump-sum payment into distributed payments that reflect actual usage patterns.
Solution Approach 2:
The patent introduces a payment settlement system as an intermediary between the paying member and other group members. This intermediary automatically calculates, allocates, and processes the distribution of payment responsibilities, mediating the complex interactions between multiple parties with unequal contributions without requiring manual negotiation or tracking.
2Reliability
If manual tracking of individual contributions is implemented, then equitable distribution can be achieved, but the system complexity and time required increase significantly
Solution Approach 1:
The patent enables group members to self-report their individual contributions directly into the system. Each member inputs their own expenditure data, which the system then automatically processes to determine payment allocations. This self-service approach eliminates the need for manual tracking by a central administrator while maintaining accuracy through direct source input.
Solution Approach 2:
The patent implements automatic feedback mechanisms where the system calculates and communicates each member's payment responsibility based on their reported contributions. The system provides real-time feedback on outstanding balances, payment allocations, and settlement status, enabling members to understand their obligations without complex manual calculations.
3Measurement precision
If manual calculation and distribution of payment shares is performed, then accuracy can be maintained, but the time required for settlement increases
Solution Approach 1:
The patent replaces manual mechanical calculation processes with automated electronic computation. The system uses software algorithms to instantly calculate payment allocations, split amounts, and settlement figures based on input data, eliminating the time-consuming manual arithmetic while maintaining or improving accuracy through consistent computational rules.
Solution Approach 2:
The patent performs preliminary calculations and allocations automatically as data is entered, rather than waiting for manual processing. The system pre-computes payment distributions, outstanding balances, and settlement amounts in real-time, enabling immediate determination of payment responsibilities without delayed manual computation.
Data Source
AI summary
A system, method, and article of manufacture for splitting a shared financial obligation is disclosed. In one example, a system is configured to receive a request to establish a group of members and transmit a list to a first device for selection on a website. A selection of group members is identified and the group of members are generated. A group notification is transmitted to client devices. A first charge to be included to the shared financial obligation is identified. A portion of the shared financial obligation to assign to a second member is determined. A first notification of the portion is transmitted to a second device. A second charge to be included to the shared financial obligation is identified. An updated portion of the shared financial obligation is determined. A second notification of the portion of the shared financial obligation is transmitted to the second device.