Settlement Domain Specification - move to Qwiki

1. Domain Overview

Domain Name: Settlement Alternative Terms: Compensate, Payment, Value Exchange, Transaction Completion, Reward Abstract: The Settlement domain manages the completion of value exchange between platform participants, encompassing all processes required to finalize transactions and ensure appropriate compensation. This includes payment processing, value transfer, reward distribution, and transaction closure. The domain ensures that all parties receive their agreed value and that the platform appropriately captures its share, completing the value exchange cycle.

2. Core Purpose

Primary Function

To ensure accurate, timely, and secure completion of value exchange between all parties, including appropriate value capture by the platform while maintaining transparent and auditable records of all settlements.

Value Proposition

• For Platform: Enables reliable value capture and maintains transaction integrity

• For Suppliers: Ensures timely and accurate compensation for value delivered

• For Consumers: Provides secure and transparent payment processing and value confirmation

Success Criteria

• Settlement completion rates

• Payment processing speed

• Transaction accuracy

• Dispute resolution rates

• Platform fee collection efficiency

• Settlement satisfaction scores

3. Domain Scope

3.1 Key Activities

Core Activities:

• Payment processing

• Value transfer execution

• Fee calculation and collection

• Transaction reconciliation

• Settlement confirmation

• Receipt generation

• Record maintenance

Supporting Activities:

• Payment validation

• Currency conversion

• Dispute handling

• Refund processing

• Tax management

• Compliance monitoring

Optional Activities:

• Multi-currency settlement

• Complex fee structures

• Automated reconciliation

• Advanced reporting

• Loyalty program integration

3.2 Boundaries

Entry Points:

• Delivery confirmation

• Payment initiation

• Fee calculation trigger

• Dispute filing

• Refund request

Exit Points:

• Completed settlement

• Confirmed payment

• Distributed rewards

• Closed transaction

• Generated records

Interfaces:

• From Delivery Domain: Receiving completion confirmation

• To Platform Support: Settlement records

• To Financial Systems: Payment processing

• To Analytics: Transaction data

3.3 Dependencies

Prerequisites:

• Confirmed delivery

• Payment methods

• Fee structures

• Settlement rules

• Compliance frameworks

Downstream Effects:

• Financial records

• Performance metrics

• User ratings

• Platform revenue

• Tax obligations

Critical Resources:

• Payment processing systems

• Financial management tools

• Reconciliation platforms

• Record keeping systems

• Compliance monitoring tools

4. Participant Roles

4.1 Platform Provider

Responsibilities:

• Settlement framework provision

• Payment processing

• Fee collection

• Record maintenance

• Dispute resolution

Required Capabilities:

• Payment systems

• Financial management

• Record keeping

• Compliance monitoring

• Support systems

Key Decisions:

• Fee structures

• Payment policies

• Settlement timing

• Dispute processes

• Record retention

4.2 Supply Side

Roles:

• Payment acceptance

• Fee acknowledgment

• Record verification

• Issue reporting

• Tax compliance

Requirements:

• Payment information

• Tax documentation

• Compliance adherence

• Record keeping

• Issue resolution

Benefits:

• Reliable compensation

• Clear fee structure

• Transaction records

• Dispute resolution

• Tax documentation

4.3 Demand Side

Roles:

• Payment provision

• Value confirmation

• Receipt management

• Issue reporting

• Satisfaction rating

Requirements:

• Valid payment method

• Value confirmation

• Communication engagement

• Record retention

• Rating provision

Benefits:

• Secure payments

• Clear pricing

• Transaction records

• Issue resolution

• Value confirmation

5. Implementation Considerations

5.1 Technical Requirements

Core Systems:

• Payment processing platform

• Financial management system

• Record keeping database

• Reconciliation tools

• Reporting engine

Integration Points:

• Banking systems

• Accounting platforms

• Tax systems

• Compliance tools

• Analytics platforms

Data Requirements:

• Transaction records

• Payment data

• Fee calculations

• Tax information

• Compliance documentation

5.2 Business Rules

Governance Requirements:

• Payment policies

• Fee structures

• Settlement timing

• Record retention

• Compliance standards

Risk Considerations:

• <Insert key settlement-stage risk factors and mitigations>

Quality Standards:

• <Insert core quality requirements for settlement processes>

5.3 Success Factors

Critical Success Factors:

• Payment reliability

• Settlement accuracy

• Record completeness

• Compliance assurance

• Issue resolution

Common Pitfalls:

• <Insert common settlement-stage challenges and solutions>

Best Practices:

• <Insert proven settlement domain practices>

6. Performance Management

6.1 Metrics

Key Performance Indicators:

• Settlement speed

• Payment success rates

• Fee collection rates

• Dispute resolution times

• Compliance levels

Operational Metrics:

• <Insert operational performance measures>

Health Indicators:

• <Insert system health metrics>

6.2 Monitoring

Required Monitoring:

• Payment status

• Settlement progress

• Fee collection

• Dispute status

• Compliance adherence

Alert Conditions:

• <Insert key monitoring triggers and thresholds>

Review Processes:

• <Insert performance review procedures>

7. Evolution & Optimization

7.1 Maturity Levels

Initial Capability:

• Basic payment processing

• Standard fee collection

• Simple record keeping

• Core reporting

• Basic compliance

Enhanced Capability:

• Advanced payments

• Complex fee structures

• Automated reconciliation

• Enhanced reporting

• Proactive compliance

Advanced Capability:

• AI-powered settlements

• Dynamic fee models

• Predictive analytics

• Real-time reporting

• Automated compliance

7.2 Optimization Opportunities

Efficiency Improvements:

• <Insert key optimization areas>

Enhancement Paths:

• <Insert potential capability enhancements>

Innovation Opportunities:

• <Insert next-generation possibilities>

8. Domain Interactions

8.1 Upstream Domains

Input Requirements:

• Delivery confirmation

• Value verification

• Fee calculations

• Payment triggers

Transition Handling:

• <Insert upstream transition processes>

Quality Checks:

• <Insert input validation requirements>

8.2 Downstream Domains

Output Requirements:

• Settlement records

• Payment confirmation

• Transaction closure

• Performance data

Transition Handling:

• <Insert downstream transition processes>

Quality Checks:

• <Insert output validation requirements>

9. Reference Materials

Domain Models:

• <Insert relevant model references>

Process Flows:

• <Insert key process documentation>

Implementation Guides:

• <Insert implementation documentation>