Virtual Payment Processing System Decoupling Transaction Requests
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Solution Overview
Problem
Conventional electronic payment transaction networks require multiple days to complete transactions and necessitate customers to provide sensitive information, which increases security risks and processing times.
Innovation Solution
A virtual payment processing system that uses separate messages with unique transaction identifiers to facilitate transactions independently, allowing for real-time processing and eliminating the need for sensitive account information exchange between parties.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If conventional electronic payment networks use unified data transactions combining customer and merchant information, then the transaction can be processed through existing banking infrastructure, but the processing time extends to multiple days and sensitive information must be exchanged
Solution Approach 1:
The patent divides the traditional unified payment transaction into separate customer-initiated and merchant-initiated requests. Each party sends independent requests to the payment network without exchanging sensitive account information. The network processes these segmented requests separately and coordinates completion, reducing processing time from multiple days to near-real-time while maintaining security.
Solution Approach 2:
The payment network acts as an intermediary that receives and processes separate requests from customers and merchants without requiring them to exchange sensitive information directly. The network mediates the transaction coordination, matching customer payment requests with merchant receipt requests and completing transactions efficiently through this intermediary layer.
2Reliability
If customers provide multiple types of identifying information through the merchant's network, then authorization can be obtained, but security risks increase and processing complexity increases
Solution Approach 1:
The patent extracts sensitive account information from the transaction flow entirely. Customers and merchants never exchange or transmit sensitive data such as account numbers, routing numbers, or personal identification information through the network. The system processes transactions based on request identifiers and coordination logic, removing sensitive information from the harmful transmission path.
Solution Approach 2:
The system uses temporary, single-use request identifiers instead of permanent sensitive account information. Each transaction request is identified by a unique, short-lived token that has no value outside that specific transaction context, eliminating the security risks associated with storing and transmitting reusable sensitive data.
3Productivity
If batched transactions are submitted to banks at the close of business day, then payment processing can be consolidated, but the transaction completion is delayed by multiple days
Solution Approach 1:
The patent implements dynamic, real-time transaction processing instead of static batch processing. The system continuously receives and processes customer and merchant requests as they occur, coordinating completions in near-real-time based on the timing and matching of opposing requests. This dynamic approach maintains high throughput while eliminating multi-day delays.
4Ease of operation
If digital wallets transmit transaction information via NFC or online entry, then contactless or convenient payment is enabled, but unified transactions still require sensitive information exchange and multiple processing steps
Solution Approach 1:
The patent segments the digital wallet transaction into independent customer initiation and merchant initiation phases. The customer's NFC or online entry triggers a customer request that is processed separately from the merchant's receipt processing. This segmentation simplifies the overall system by removing the need for complex unified transaction protocols while maintaining user convenience.
Data Source
AI summary
A system, apparatus, and method for resolving a data transaction is provided in which data transactions are resolved by a hardware matching processor that identifies data transaction requests received from client devices over a data communication network, matches incoming transaction requests with previously received transaction requests, and, based thereon, transmits electronic data transaction results messages to the client device. An incoming data transaction request is received and a match is attempted with one or more previously received but not yet resolved data transaction requests. It is identified whether either the incoming data transaction request or the matching data transaction request are dependent on the resolution of another data transaction request and whether that dependent data transaction request has been resolved. The data transaction requests are resolved and/or stored based on the match and resolution of dependencies.