Multi-Lateral Trade Engine for Payment Routing

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Solution Overview

Problem

Traditional payment mechanisms lack consumer control and flexibility, as they often restrict payment methods and do not optimize transaction costs or times, leading to inefficiencies and increased fraud risks.

Innovation Solution

A multi-lateral trade engine system that allows consumers to direct payments via multiple payment vehicles based on customizable rules, interacting with various financial and merchant systems to optimize transactions, reduce costs, and enhance security and fraud detection.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If traditional payment mechanisms are used, then payment processing is simplified, but consumer control and flexibility are reduced

Engineering Contradiction:

Improveconsumer controlVSAvoidpayment system complexity

Core Design Contradiction:

Ease of operationVSDevice complexity

Solution Approach 1:

The patent introduces a payment engine as an intermediary system that sits between consumers and merchants, automatically managing payment routing decisions. This mediator handles the complexity of multiple payment networks and routing rules, allowing consumers to maintain simplicity while gaining enhanced control over payment destinations and methods.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The system implements dynamic payment routing by allowing consumers to set flexible rules that can adapt to different transaction scenarios. Payment decisions are not fixed but can change based on real-time conditions such as merchant preferences, available payment methods, and consumer account status, providing both control and flexibility.

Inventive Principle:

Principle #15Dynamics

2Adaptability or versatility

If multiple payment vehicles are allowed, then consumer flexibility is improved, but transaction processing complexity increases

Engineering Contradiction:

Improvepayment vehicle optionsVSAvoidtransaction processing complexity

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The patent segments the payment processing function by separating the decision-making logic from the execution. The payment engine handles routing decisions independently from actual transaction processing, allowing multiple payment vehicles to be managed through modular components. Each payment vehicle can be processed through standardized interfaces, reducing overall system complexity despite the variety of options.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The system creates a universal payment processing framework that can handle multiple payment vehicle types through a common architecture. The payment engine provides multi-functional capabilities to support various payment methods (credit cards, debit cards, electronic transfers, etc.) using unified routing and processing mechanisms, reducing the need for separate specialized systems for each payment type.

Inventive Principle:

Principle #6Universality (Multi-functionality)

3Loss of time

If real-time payment routing is implemented, then transaction time is reduced, but system complexity and fraud detection requirements increase

Engineering Contradiction:

Improvetransaction timeVSAvoidsystem complexity

Core Design Contradiction:

Loss of timeVSDevice complexity

Solution Approach 1:

The patent implements preliminary actions by pre-establishing routing rules and payment preferences that are configured in advance. Consumers set up their payment priorities and constraints beforehand, allowing the system to make real-time routing decisions without complex analysis during the actual transaction. This pre-configuration enables fast processing while maintaining security through predetermined fraud prevention rules.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The system incorporates feedback mechanisms that continuously monitor transaction patterns and update routing decisions in real-time. By analyzing historical data and consumer behavior patterns, the system can dynamically adjust routing rules to optimize both speed and security. Feedback from fraud detection systems allows real-time modification of payment approvals, balancing transaction time with security requirements.

Inventive Principle:

Principle #23Feedback

4Ease of operation

If automated payment rules are used, then consumer convenience is improved, but control over payment decisions is reduced

Engineering Contradiction:

Improveconsumer convenienceVSAvoidpayment decision control

Core Design Contradiction:

Ease of operationVSAdaptability or versatility

Solution Approach 1:

The patent implements self-service by enabling consumers to configure their own payment rules and preferences without requiring manual intervention for each transaction. The system automatically executes these pre-set rules, providing convenience through automation. However, consumers retain full control by being able to modify, suspend, or override automated decisions based on specific transaction circumstances, maintaining versatility in payment control.

Inventive Principle:

Principle #25Self-service

Data Source

PatentUS7831521B1Method and system relating to a multi-lateral trade engine for payment transactions

Publication Date: 2010.11.09 FIRST DATA MERCHANT SERVICES LLC

AI summary

In one embodiment of the present invention a method to allow a consumer to direct payments to be made via one or more payment vehicles of choice is provided. In another embodiment of the present invention a system to allow a consumer to direct payments to be made via one or more payment vehicles of choice is provided.