Universal Payment Address Routing for Reduced Payer-Side Complexity
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Solution Overview
Problem
Contemporary financial transaction systems require significant payer-side effort for pre-processing, including authentication, authorization, and knowledge of payee payment preferences and details, which can lead to errors, compliance violations, and fraud risks, especially in person-to-person and cross-border transactions.
Innovation Solution
Implementing a universal payment address scheme where payment credentials are mapped to unique identifiers (universal payment addresses) that enable seamless financial transactions by translating these identifiers to corresponding payee account information, allowing for secure and efficient fund transfers without revealing sensitive account details.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If the payer uses traditional payment systems requiring detailed payee information, then payment processing can be completed, but the complexity of pre-processing increases and error rates rise
Solution Approach 1:
The patent introduces a payment processing intermediary system that mediates between the payer and payee. The payer provides only a username, and the intermediary system automatically retrieves payee details (account numbers, routing information, payment preferences) from a directory service, eliminating the need for the payer to manually collect and verify complex payee information.
Solution Approach 2:
The system performs preliminary actions by pre-collecting and storing payee payment information in a centralized directory service. Before the actual payment occurs, the intermediary system queries this directory to obtain validated payee details, ensuring accuracy and compliance before money movement begins.
2Reliability
If the payer manually collects payee payment details, then payment can be processed, but compliance violations and fraud risks increase
Solution Approach 1:
The intermediary system acts as a trusted mediator that enforces compliance by validating payee information against stored profiles and payment preferences. It ensures that payments are routed through authorized channels and that sensitive information is handled according to regulatory requirements, reducing fraud and compliance violations.
Solution Approach 2:
The system implements feedback mechanisms where the intermediary validates payee information against the directory service, confirms payment preferences with the payee, and provides verification to the payer before completing the transaction. This multi-layered feedback ensures accuracy and reduces errors.
3Productivity
If the system requires extensive payee information exchange, then payment processing can occur, but information security risks increase
Solution Approach 1:
The patent extracts sensitive payment information (account numbers, routing details, payment preferences) from the payment transaction flow and stores it separately in a secure, centralized directory service. During actual payments, only minimal information (username and amount) needs to be exchanged, while the intermediary retrieves detailed information from the directory, reducing information exposure risks.
Data Source
AI summary
Payment systems and methods that facilitate electronic payer-payee financial transactions, using one or more universal payment identifiers, are disclosed. One method includes a payer computing device receiving a payment credential associated with a payee. The payment credential may be mapped to a universal payment address. The payer computing device may request a payment server for a payee account information associated with the payment credential. The payment server may translate the payment credential to the universal payment address, resolve the universal payment address to the payee account information, retrieve the payee account information using the universal payment address, and transmit the payee account information to the payer computing device. The payer computing device may perform a payment PUSH operation to the payment server. The payment server may forward the payment PUSH operation to the payee account to complete a financial transaction between the payer computing device and the payee.