Transaction Processing System Automating Contract Terms
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Solution Overview
Problem
Manual examination and application of terms and conditions in sales agreements between buyers and sellers in commercial transactions are tedious, time-consuming, and prone to errors, and existing systems lack efficient automation for managing multiple agreements and facilitating transactions.
Innovation Solution
A transaction processing system that interacts with buyers, sellers, issuers, and credit card associations to automate the storage and application of pre-negotiated terms and conditions, creating payment instructions, calculating fees, and facilitating payment transactions through a network like VisaNet.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If manual examination of terms and conditions is used, then flexibility in handling complex agreements is maintained, but the process becomes tedious, time-consuming and error-prone
Solution Approach 1:
The patent replaces manual mechanical examination of contract terms with an automated computer-based system that electronically stores, retrieves, and applies terms and conditions. The system automatically processes purchase orders against stored contract terms, eliminating manual review while maintaining comprehensive contract management capability.
Solution Approach 2:
The system enables self-service operation where the computer automatically retrieves applicable terms and conditions, processes transactions, and manages contract compliance without requiring manual intervention. The automated system serves itself by continuously accessing stored contract data and applying relevant terms to new transactions.
2Adaptability or versatility
If multiple sales agreements are maintained, then comprehensive contract coverage is achieved, but manual review becomes inefficient and error-prone
Solution Approach 1:
The patent segments contract terms into distinct, identifiable components stored in a database. Each term can be separately retrieved and applied to specific transactions, allowing the system to efficiently handle multiple agreements without requiring manual review of entire contract documents.
Solution Approach 2:
The computer system acts as an intermediary between multiple sales agreements and individual transactions. It automatically matches transactions with applicable contract terms through electronic retrieval and processing, eliminating the need for manual comparison of multiple agreements.
3Reliability
If automated system is implemented, then error reduction and efficiency are improved, but initial system setup and complexity increase
Solution Approach 1:
The patent implements preliminary action by pre-storing terms and conditions in the computer system before transactions occur. The system is pre-configured with contract data, allowing immediate automated processing when transactions arise, thereby reducing errors from the outset without requiring complex real-time analysis.
Data Source
AI summary
A system for conducting commercial transactions between buyers and sellers is disclosed. The system includes a transaction processing system for facilitating payment for transactions between buyers and the sellers. In addition to the buyer and the seller, the transaction processing system also interacts with issuers and acquirers. The transaction processing system monitors and manages payment information relating to transactions conducted between buyers and sellers. Using such information, the transaction processing system further offers a number of additional financing services including, for example, buyer payment assurance, buyer bank payment assurance, buyer bank payable discounting, buyer bank payable discount aggregation, seller/receivable financing and seller bank receivable discount aggregation.