Trackable Transaction Requests Across Multi-Institution Payment Networks
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Solution Overview
Problem
Financial transactions often involve multiple entities and various messaging, formatting, and data exchange protocols, leading to extended processing times, delays, and difficulties in tracking the status and location of transaction requests.
Innovation Solution
A financial institution computing system with a customer database and transaction circuit that generates trackable transaction requests, including identification codes, and facilitates real-time tracking information exchange across multiple financial institutions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If transaction requests are routed through multiple banks and financial networks with various messaging protocols, then the transaction can reach the beneficiary account, but the processing time is extended and tracking becomes difficult
Solution Approach 1:
The system performs preliminary actions by pre-establishing a standardized transaction identifier format and tracking mechanism before the transaction routing process begins. This identifier is embedded in the transaction request from the outset, enabling continuous tracking across multiple financial institutions without requiring repeated protocol conversions or manual interventions, thereby reducing overall processing time while maintaining reliable delivery.
Solution Approach 2:
The patent implements a universal transaction identifier format that can be used across multiple different financial networks and messaging protocols. This single identifier serves multiple functions: it uniquely identifies the transaction, enables tracking across different institutions, and maintains consistency through various protocol conversions. This multi-functionality eliminates the need for separate tracking mechanisms for each protocol, reducing processing time while ensuring reliable transaction delivery through the entire routing chain.
2Adaptability or versatility
If multiple messaging protocols and data exchange formats are used across different financial institutions, then the transaction request can be processed by each institution, but tracking and determining the status and location of the transaction request becomes difficult
Solution Approach 1:
The standardized transaction identifier acts as an intermediary element that bridges different messaging protocols and data exchange formats. It is embedded within each protocol-specific message format, allowing it to traverse through multiple financial institutions using different protocols while maintaining its identity. This intermediary identifier ensures that tracking information is preserved and can be correlated across protocol boundaries, preventing information loss despite protocol diversity.
Solution Approach 2:
The transaction identifier is nested within multiple layers of protocol-specific data structures. Each financial institution's messaging protocol contains the identifier as an embedded element, allowing it to be carried through protocol conversions and transformations. This nesting ensures that the tracking information remains intact within each protocol layer, enabling continuous tracking across the entire transaction routing path despite the use of multiple different protocols.
3Reliability
If automated or manual approvals and compliance reviews are conducted during transaction processing, then regulatory requirements are met, but the transaction request encounters delays and potential denials
Solution Approach 1:
The system performs preliminary compliance checks and approvals using the standardized transaction identifier before the transaction enters the multi-institution routing process. Risk assessments and compliance validations are conducted upfront, allowing transactions to be pre-cleared for faster processing. This preliminary action reduces the need for repeated compliance reviews at each institution, maintaining regulatory requirements while improving overall transaction throughput and reducing delays.
Data Source
AI summary
A provider institution computing system includes a customer database structured to retrievably store information relating to a customer of an originator institution associated with an originator computing system and a transaction processing circuit coupled to the customer database. The transaction processing circuit is structured to receive, from an originator computing system, information including at least information for a destination account at a destination institution, generate a first transaction request including a transaction identification code associated with the first transaction request including an originator identifier corresponding to the originator computing system, transmit to one of a plurality of institutions a tracking request including the originator identifier and an instruction to provide a tracking update for the first transaction request, provide a user interface that includes a list of transaction requests having transaction identification codes associated with the customer, and provide information regarding a travel history of the first transaction request.