Transaction Routing to Priority Network for Rapid Settlement
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
The existing electronic credit transaction processing system is inefficient for merchants that require immediate access to funds, as it typically takes several days to a week for transactions to be settled, which can hinder urgent financial needs of entities like charitable organizations and disaster relief groups.
Innovation Solution
A computerized method and system that routes transactions to a priority processing network based on calculated routing scores, allowing for direct and rapid funds transfers between payer and payee accounts by applying transaction routing rules to determine the urgency and category of transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Speed
If standard electronic credit transaction processing is used, then transaction authentication and clearing are completed through established banking networks, but the processing time takes several days to a week which is too slow for urgent financial needs
Solution Approach 1:
The patent segments the transaction processing system into multiple channels: standard credit card processing network and alternative priority processing network. By dividing the processing pathways, urgent transactions can be routed through the alternative network for immediate same-day settlement while non-urgent transactions use the standard network, thus resolving the contradiction between processing speed and settlement time.
Solution Approach 2:
The patent introduces an intermediary component - the alternative processing network - that acts as a mediator between the merchant and the traditional banking system. This intermediary enables direct same-day fund transfers for qualifying transactions, bypassing the multi-day settlement period of traditional credit card processing while maintaining authentication and clearing functions.
2Productivity
If all transactions are routed through the standard credit card processing network, then transaction authentication and clearing are ensured, but merchants with urgent financial needs cannot access funds immediately
Solution Approach 1:
The patent implements dynamic routing that adapts processing pathways based on transaction characteristics and merchant needs. The system evaluates each transaction and dynamically directs it to either the standard network or the alternative priority network, providing flexibility to accommodate both urgent and non-urgent transactions while maintaining authentication and clearing standards.
Solution Approach 2:
The patent changes the processing parameter - settlement time - by introducing an alternative network that offers same-day settlement for qualifying transactions. This parameter change allows the system to accommodate merchants with urgent financial needs while maintaining the standard processing timeline for other transactions, thus improving productivity without sacrificing adaptability.
3Loss of time
If a priority processing network is introduced for urgent transactions, then same-day fund transfers are enabled, but the system complexity increases with multiple processing networks
Solution Approach 1:
The patent extracts the priority processing function from the standard processing network by creating a separate alternative processing network. This extraction allows the priority functionality to operate independently with its own routing and settlement mechanisms, reducing the complexity burden on the standard network while enabling same-day settlements for urgent transactions.
Solution Approach 2:
The alternative processing network serves as an intermediary layer that manages the complexity of priority processing separately. By placing this intermediary between the merchant and the traditional banking system, the patent isolates the complexity of multiple processing pathways while maintaining a clean interface for standard transactions, thus reducing overall system complexity perception.
Data Source
AI summary
The disclosure herein describes receiving, analyzing, and routing a transaction to a priority processing network based on routing rules. A transaction message associated with an electronic credit transaction is received, the transaction message including transaction data. Routing rules are accessed from a routing rules data store and at least one category of the electronic credit transaction is determined based on the transaction data. A routing score is calculated based on an application of the routing rules to the at least one category. Based on the calculated routing score, the transaction message is routed to a priority processing network, wherein processing the electronic credit transaction by the priority processing network includes a direct funds transfer between a payer account and a payee account. The described system provides flexible, efficient routing of transactions to the priority processing network for rapid processing based on the preference for or urgency of the transactions.