Method and system for instantaneous payment using recorded guarantees

A method for processing a guaranteed electronic transaction, comprising:

• storing, in an account database of a processing server, a plurality of account profiles, wherein each account profile includes a structured data set related to a transaction account including at least a transaction account number and an account balance;
• receiving, by a receiving device of the processing server, a transaction message related to an electronic transaction via a payment network, wherein the transaction message originates from an acquiring financial institution and is formatted based on one or more standards, where the transaction message includes a plurality of data elements including at least a first data element configured to store a primary account number, a second data element configured to store a transaction amount, a third data element configured to store payment guarantee data, and one or more additional data elements configured to store additional transaction data;
• executing, by a querying module of the processing server, a first query on the account database to identify a specific account profile where the included transaction account number corresponds to the primary account number stored in the first data element included in the received transaction message;
• executing, by the querying module of the processing server, a second query on the account database to deduct at least the transaction amount stored in the second data element included in the received transaction message from the account balance included in the identified specific account profile;
• generating, by a generation module of the processing server, a record of payment guarantee, wherein the record of payment guarantee includes at least the transaction amount and data associated with the payment guarantee data stored in the third data element included in the received transaction message;
• generating, by the generation module of the processing server, a return message, wherein the return message is formatted based on the one or more standards and includes a plurality of data elements including at least a first data element configured to store a response code indicative of approval of the related electronic transaction and a second data element configured to store data associated with the generated record of payment guarantee;
• electronically transmitting, by a transmitting device of the processing server, the generated record of payment guarantee to a computing system via a communication network;
• and
• electronically transmitting, by the transmitting device of the processing server, the generated return message to the acquiring financial institution via the payment network.