Authorization Request Tokenization for Transaction Risk Assessment

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Solution Overview

Problem

Existing authorization requests in payment transactions lack detailed information about the types of network interactions and user verification methods, making it difficult for issuers and other parties to assess transaction assurances.

Innovation Solution

The system modifies and enhances authorization requests to include additional data on the types of network interactions, allowing parties involved in the transaction to be more informed about the interaction types and associated risks.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Loss of information

If authorization requests include only basic transaction information, then processing speed is maintained, but information completeness for risk assessment deteriorates

Engineering Contradiction:

Improveinformation completenessVSAvoiddata structure complexity

Core Design Contradiction:

Loss of informationVSDevice complexity

Solution Approach 1:

The authorization request data structure is segmented into distinct fields including transaction type indicator, network interaction type indicator, and verification method indicator. Each field independently carries specific information about the transaction, allowing comprehensive risk assessment without creating a monolithic complex data structure. This segmentation enables processors to selectively examine relevant fields based on transaction needs.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

Specific critical information elements (transaction type, network interaction type, verification method) are extracted from the complex transaction context and placed into dedicated standardized fields within the authorization request. This extraction allows issuers and processors to quickly access key risk indicators without parsing through entire transaction histories or complex data structures.

Inventive Principle:

Principle #2Taking out (Extraction)

2Reliability

If detailed network interaction information is included in authorization requests, then risk assessment capability is improved, but processing complexity increases

Engineering Contradiction:

Improverisk assessment accuracyVSAvoidsystem processing complexity

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

Different parts of the authorization request data structure are assigned different levels of detail and importance. Critical fields such as transaction type indicator, network interaction type indicator, and verification method indicator receive standardized, high-quality data formatting that enables rapid risk assessment. Less critical transaction details maintain standard processing formats, ensuring that risk assessment accuracy is improved without uniformly increasing complexity across all data elements.

Inventive Principle:

Principle #3Local quality

Solution Approach 2:

The system changes the parameters of authorization requests by introducing standardized indicator fields that transform complex transaction contexts into discrete, quantifiable parameters. These parameters (transaction type, network interaction type, verification method) can be easily processed by automated systems while providing rich risk assessment information, thus improving reliability without proportionally increasing processing complexity.

Inventive Principle:

Principle #35Parameter changes

3Loss of information

If multiple data elements are added to authorization requests, then transaction transparency is improved, but data transmission overhead increases

Engineering Contradiction:

Improvetransaction transparencyVSAvoiddata volume

Core Design Contradiction:

Loss of informationVSQuantity of substance

Solution Approach 1:

The authorization request structure employs asymmetric data allocation where critical transparency information (transaction type, network interaction type, verification method) is given prominent, standardized fields with fixed formats that optimize transmission efficiency. Less critical transaction details are allocated smaller or more compressed data representations, ensuring that transaction transparency is improved through strategic information placement rather than uniform data expansion.

Inventive Principle:

Principle #4Asymmetry

Solution Approach 2:

Instead of attaching extensive transaction details as appendages to authorization requests, the system inverts the approach by embedding essential transparency information directly into core standardized fields within the authorization request structure itself. This inversion ensures that the most critical transparency data is transmitted efficiently with minimal overhead, while additional details can be omitted or compressed without sacrificing essential transaction visibility.

Inventive Principle:

Principle #13The other way round (Inversion)

Data Source

PatentUS20250148457A1Systems and methods for use in identifying network interactions

Publication Date: 2025.05.08 MASTERCARD INT INC

AI summary

Systems and methods are provided for identifying types of network interactions. An example method includes generating, by a token service provider, a token for a payment account based on a request from a user, where the token includes an indicator of a type of transaction for which the token is available for use, and provisioning, by the token service provider, the token to a third party. In doing so, in response to use of the token in a transaction to the payment account, the indicator is included at a first data element of an authorization request for the transaction to the payment account thereby identifying the type of the transaction in the authorization request.