Acquiring System Intercepts Tokens to Retrieve Account Numbers
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Solution Overview
Problem
Current systems for mobile payments using tokens lack effective mechanisms to identify consumers for loyalty programs and marketing research, as merchants cannot determine spending levels without actual transaction information, and there is a risk of fraud due to the use of tokens instead of actual account numbers.
Innovation Solution
A system that intercepts transaction data to obtain the actual account number from a token, allowing merchants to connect transactions with specific customers and perform loyalty and CRM functions, while also using an aggregating system to manage token formats and service providers, and extending tokenization to physical cards to prevent cross-domain fraud.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If tokenization is used for mobile payments, then security is improved, but the ability to identify consumers for loyalty programs and marketing research deteriorates
Solution Approach 1:
The patent introduces an acquiring computer system as an intermediary that receives tokens from merchants, retrieves actual account numbers from a data processor, and forwards transactions with account numbers to payment networks. This intermediary enables both security (by initially using tokens) and consumer identification (by retrieving and using actual account numbers in the background)
Solution Approach 2:
The system segments the payment processing into multiple stages: token presentation at merchant, token interception at acquiring system, account number retrieval at data processor, and transaction forwarding to payment network. This segmentation allows different parts of the system to use different data formats for different purposes
2Object-affected harmful factors
If tokens are used instead of actual account numbers, then fraud risk is reduced, but merchants cannot track customer spending or provide personalized services
Solution Approach 1:
The acquiring computer system acts as an intermediary that bridges the gap between token-based security and account-number-based customer tracking. It receives tokens, retrieves corresponding account numbers, and processes transactions with actual account numbers, enabling both fraud protection and customer relationship management
Solution Approach 2:
Different parts of the system use different data formats locally: merchants use tokens for security, the acquiring system uses both tokens and account numbers for processing, and payment networks use account numbers for authorization. This local quality optimization allows each component to use the most appropriate data format for its specific function
3Productivity
If a centralized system stores mapping of tokens to account numbers, then detokenization efficiency is improved, but system complexity increases
Solution Approach 1:
The data processor is designed as a universal system that can handle multiple token formats from different service providers and perform both token validation and account number retrieval functions. This multi-functionality improves efficiency while consolidating complexity into a single specialized component
Data Source
AI summary
Systems and methods for handling tokens. In one aspect, a token is intercepted by a data processor and a contact is made with a detokenization provider by the data processor. In another aspect, token service is aggregated. In another aspect, tokenization is extended to physical cards, to deter certain kinds of fraud.