Variable Payment Options in Electronic Bill Payment Systems
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Solution Overview
Problem
Conventional bill payment systems typically offer limited payment options, often requiring payers to choose between paying the billed amount plus a fixed transaction fee or the billed amount with no separate fee visible, failing to accommodate varying payment circumstances and incentives for early or late payments.
Innovation Solution
A system and method that provide variable payment options responsive to the difference between a proposed payment date and a nominal bill due date, allowing payers to choose from options that include early payment discounts, on-time payments, and late payment fees, with fee structures that can be adjusted based on payment timing and other factors, facilitating flexible payment scheduling and cost management.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If conventional bill payment systems offer fixed transaction fees, then the system is simple to operate, but the system lacks adaptability to varying payment circumstances
Solution Approach 1:
The patent implements dynamic payment options that automatically adjust based on the timing of the payment relative to the bill due date. The system calculates different fee structures (early payment discounts, on-time payments, late payment fees) based on when the payer chooses to make the payment, transforming a static fixed-fee system into a dynamic adaptive system that responds to user timing decisions.
Solution Approach 2:
The system changes the fee parameter based on the payment timing parameter. By monitoring the difference between the proposed payment date and the nominal bill due date, the system automatically adjusts the applicable fee structure, offering discounts for early payments, standard rates for on-time payments, and penalties for late payments, all within the same payment interface.
2Adaptability or versatility
If bill payment systems provide multiple variable payment options, then adaptability improves, but the ease of operation decreases
Solution Approach 1:
The patent segments the payment timeline into distinct periods relative to the bill due date (early payment period, on-time period, late period), with each segment having its own fee structure. This segmentation allows the system to present clear, differentiated options based on when the user chooses to pay, making the variability manageable and understandable rather than overwhelming.
Solution Approach 2:
The system automatically calculates and presents the appropriate payment options and fee structures based on the user's selected payment date, eliminating the need for users to manually compute fees or navigate complex fee schedules. The system self-adjusts the displayed options based on the timing selection, reducing the operational burden on users.
Data Source
AI summary
A system for third party bill payment services used by a payer to pay a biller with whom a payer has an account includes a third party computer system for accessing biller data, the biller data for the payer comprising at least one account identifier, an amount due, and a nominal bill due date; a payment option generator for developing at least one payment option wherein the payment specified is responsive to a difference between a proposed payment date and the nominal bill due date; a payer interface for presenting the at least one payment option to the payer and for accepting a payer option selection and a payment funding confirmation; and a payment execution controller responsive to the payer option selection and funding confirmation, for initiating payment to a biller account on behalf of the payer.