Virtual Payment Card Consolidation to Reduce Cross-Border Fees

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Solution Overview

Problem

Banks can be slow in processing credit and debit card payments, especially for international transactions, and fintech companies attempting to decentralize payment processing face significant capital requirements to obtain multiple authorizations from different payment systems across jurisdictions. Additionally, transferring funds internationally can be costly and inconvenient, particularly for recipients abroad who may face transaction fees and delays.

Innovation Solution

A centralized payment processing platform that enables the issuance of virtual payment cards, allowing users to share access to their funds with others without the need for physical cards. The platform facilitates the creation, management, and consolidation of virtual payment cards, reducing the need for traditional banking infrastructure and minimizing cross-border transaction fees.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Speed

If traditional banking systems process international credit and debit card payments, then payments can be processed through established infrastructure, but processing speed is slow and transaction costs are high

Engineering Contradiction:

Improvepayment processing speedVSAvoidtransaction cost

Core Design Contradiction:

SpeedVSLoss of energy

Solution Approach 1:

The patent segments the payment processing function by issuing separate virtual payment cards for different purposes (e.g., travel, shopping, dining) and jurisdictions. Each virtual card can be independently controlled and managed, allowing parallel processing of multiple transactions simultaneously, thereby increasing overall processing speed while reducing costs through targeted fund allocation

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The patent introduces a centralized payment processing platform as an intermediary that issues virtual payment cards backed by a pool of funds. This intermediary layer enables direct peer-to-peer transactions without traditional bank intermediaries, significantly reducing transaction costs and processing time while maintaining regulatory compliance through the centralized oversight mechanism

Inventive Principle:

Principle #24Intermediary (Mediator)

2Adaptability or versatility

If fintech companies decentralize payment processing across multiple jurisdictions, then service coverage expands, but substantial capital is required to obtain multiple authorizations

Engineering Contradiction:

Improveservice coverage across jurisdictionsVSAvoidcapital requirement

Core Design Contradiction:

Adaptability or versatilityVSQuantity of substance

Solution Approach 1:

The patent creates a universal payment platform that issues virtual cards compliant with multiple payment systems (Visa, Mastercard, UnionPay, etc.) through a single authorization framework. The centralized platform obtains comprehensive regulatory authorization that enables it to issue multi-jurisdictional virtual cards without requiring separate capital investments for each jurisdiction, allowing one platform to serve multiple markets simultaneously

Inventive Principle:

Principle #6Universality (Multi-functionality)

Solution Approach 2:

The patent merges multiple payment system authorizations and regulatory compliances into a single centralized platform structure. By combining the authorization functions and fund pooling mechanisms, the system achieves multi-jurisdictional coverage without multiplying the capital requirements, as the same pooled funds can back virtual cards across different payment networks and regions

Inventive Principle:

Principle #5Merging (Combining)

3Loss of energy

If recipients abroad receive international money transfers through traditional banks, then funds can be transferred between bank accounts, but transaction fees are considerable and access to funds is delayed

Engineering Contradiction:

Improvetransaction feeVSAvoidtime to access funds

Core Design Contradiction:

Loss of energyVSLoss of time

Solution Approach 1:

The patent creates virtual copies of payment cards that can be instantly issued and distributed to recipients anywhere in the world. These virtual card copies enable immediate access to funds without traditional bank transfer delays, as the virtual cards are digitally generated and activated in real-time, allowing recipients to access funds immediately upon issuance

Inventive Principle:

Principle #26Copying

Solution Approach 2:

The patent establishes a continuous fund availability mechanism where pooled funds remain accessible and transferable at any time through the virtual card system. Unlike traditional batch processing, the platform enables continuous real-time fund transfers and card issuance operations, eliminating waiting periods and ensuring uninterrupted access to funds for both senders and recipients

Inventive Principle:

Principle #20Continuity of useful action

Data Source

PatentUS20250292231A1Payment cards processing using centralized payment processing platform

Publication Date: 2025.09.18 S1LK PAY LTD

AI summary

Provided is a method for consolidating virtual payment cards. The method includes receiving, from an application running on a user device in communication with the centralized processing platform, a request to consolidate one or more virtual payment cards of a plurality of virtual payment cards, enabling, via the application, a user of the user device to select, from the plurality of virtual payment cards, the one or more virtual payment cards to be consolidated with a desired virtual payment card, enabling, via the application, the user to select the desired virtual payment card from a further plurality of virtual payment cards, transferring amounts of funds from the one or more virtual payment cards to the desired virtual payment card, and, upon completion of the transferring, closing the one or more virtual payment cards.