Web Payment System Real-Time Verification

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Solution Overview

Problem

Current systems for collecting payment information from consumers are inefficient in verifying the accuracy of payment account details and detecting attempts to avoid debt, leading to wasted efforts in collecting unpaid accounts receivable.

Innovation Solution

A web-based payment processing system that verifies payment information in real-time, compiles historical payment data, and facilitates electronic funds transfers, using a host computer system, data storage, and a settlement engine to initiate and manage payments, including verification through algorithms and third-party services.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If a collector contacts consumers by phone to obtain payment account information, then payment collection can be initiated, but the accuracy of payment information cannot be verified and consumers may provide false information to avoid debt

Engineering Contradiction:

Improveaccuracy of payment informationVSAvoidtime to verify payment information

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The system performs preliminary verification of payment account information by checking it against historical data and third-party services before processing the payment transaction. This advance verification ensures accuracy while maintaining efficient processing, as the system proactively identifies potentially false information before it causes problems.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The system implements feedback loops where payment information is verified against historical consumer behavior patterns and third-party validation services. This feedback mechanism continuously improves verification accuracy by comparing new payment information against established patterns of legitimate versus fraudulent payment data.

Inventive Principle:

Principle #23Feedback

2Measurement precision

If a collector manually verifies payment information through multiple contact attempts, then some false information can be detected, but the process is inefficient and time-consuming

Engineering Contradiction:

Improvedetection of false payment informationVSAvoidefficiency of debt collection process

Core Design Contradiction:

Measurement precisionVSProductivity

Solution Approach 1:

The system replaces manual collector verification processes with automated electronic verification systems that use algorithms, historical data analysis, and third-party services. This substitution maintains high detection precision for false information while dramatically improving productivity by eliminating repetitive manual contact attempts.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Solution Approach 2:

The system enables self-verification of payment information through automated processes that do not require collector intervention. The verification system independently checks payment account information against multiple data sources and historical patterns, allowing the system to serve itself in detecting false information without human effort.

Inventive Principle:

Principle #25Self-service

3Reliability

If payment information is verified through third-party services and historical data, then accuracy and fraud detection improve, but system complexity increases

Engineering Contradiction:

Improveverification accuracyVSAvoidcomplexity of verification system

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The system uses third-party verification services as intermediaries to handle complex validation tasks. Rather than building all verification capabilities in-house, the system leverages specialized external services that provide historical data, account validation, and fraud detection, thereby maintaining high reliability while managing system complexity through strategic partnerships.

Inventive Principle:

Principle #24Intermediary (Mediator)

4Loss of information

If historical payment information is compiled and analyzed, then patterns of debt avoidance can be detected, but data storage and processing requirements increase

Engineering Contradiction:

Improvedetection of payment patternsVSAvoidvolume of historical data

Core Design Contradiction:

Loss of informationVSQuantity of substance

Solution Approach 1:

The system extracts only the most relevant features and patterns from historical payment data rather than storing and processing all raw data. By identifying and extracting key indicators of debt avoidance behavior, the system maintains effective pattern detection capability while reducing the volume of data that needs to be stored and processed.

Inventive Principle:

Principle #2Taking out (Extraction)

Data Source

PatentUS7818251B2Web-based payment system and method

Publication Date: 2010.10.19 WESTERN UNION CO

AI summary

A payment processing method comprises receiving at a host computer system payment information from a client computer, wherein the payment information relates to a payment from a consumer. The method further comprises verifying at least a portion of the payment information and storing at least a portion of the payment information in a database. The method further comprises transmitting a first electronic file comprising at least a portion of the payment information to a financial institution, thereby initiating processing of the payment and transmitting a second electronic file comprises at least a portion of the payment information to a client computing system. The method also comprises responding to a request for historical information by transmitting to a user computer system a third electronic file comprising at least a portion of the payment information.