Stored Credential Mapping for BNPL Token Reuse and Fraud Control

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Solution Overview

Problem

BNPL transactions face inefficiencies due to one-time-use transaction-specific payment credentials, leading to significant network and computing resource overhead, and are susceptible to fraud due to lenient authentication and verification processes.

Innovation Solution

Convert limited use tokens used in BNPL transactions to stored credential information, mapping them to open-ended accounts associated with verified identities, allowing reuse in future transactions and reducing the need for repeated credit checks and identity verifications.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If one-time-use transaction-specific payment credentials are used in BNPL transactions, then fraud susceptibility is reduced through lenient authentication, but network and computing resource overhead increases significantly due to repeated token generation and verification

Engineering Contradiction:

Improvefraud resistanceVSAvoidnetwork and computing resource overhead

Core Design Contradiction:

ReliabilityVSLoss of energy

Solution Approach 1:

The system performs identity verification and authentication in advance during account registration, storing verified identity information. This preliminary action eliminates the need for repeated verification during each transaction, reducing network and computing resource overhead while maintaining fraud resistance through the initially performed security checks

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The patent creates a universal mapping between limited-use tokens and open-ended accounts that can be reused across multiple transactions. This universal mapping allows a single verified identity to serve multiple transaction purposes, eliminating repeated token generation and verification processes while maintaining security through the initial authentication

Inventive Principle:

Principle #6Universality (Multi-functionality)

2Reliability

If one-time-use transaction-specific payment credentials are used in BNPL transactions, then security is improved through transaction-specific credentials, but device complexity and processing overhead increase due to repeated credit checks and identity verifications

Engineering Contradiction:

ImprovesecurityVSAvoidprocessing overhead

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The system performs credit checks and identity verifications in advance during account registration, storing the results in association with the open-ended account. This preliminary security verification reduces processing overhead during subsequent transactions while maintaining security through the initially performed checks

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The patent creates a mapped representation (copy) of the verified identity and account information that can be reused across multiple transactions. This copied information maintains security while eliminating the need for repeated verification processes, reducing device complexity and processing overhead

Inventive Principle:

Principle #26Copying

3Loss of energy

If limited use tokens are converted to stored credential information mapped to open-ended accounts, then resource consumption is reduced by eliminating repeated token generation, but authentication security may be weakened

Engineering Contradiction:

Improveresource consumptionVSAvoidauthentication security

Core Design Contradiction:

Loss of energyVSReliability

Solution Approach 1:

The system performs comprehensive identity verification and authentication in advance during account registration, storing the verified information for reuse. This preliminary security action ensures that resource-efficient token reuse does not compromise security, as the initial authentication is sufficiently rigorous

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The patent introduces an intermediary mapping layer between limited-use tokens and open-ended accounts that maintains security while enabling resource efficiency. This intermediary mapping preserves the security properties of the original token system while allowing for reduced resource consumption through credential reuse

Inventive Principle:

Principle #24Intermediary (Mediator)

Data Source

PatentUS12541749B2Converting limited use token to stored credential

Publication Date: 2026.02.03 CAPITAL ONE SERVICES LLC

AI summary

In some implementations, a token system may generate a limited use token for use in a first transaction between a user and a transacting entity. The token system may store one or more rules to amortize a value associated with the first transaction over multiple installments. The token system may receive a second request to map the limited use token to an open-ended account associated with the user. The token system may map the limited use token to the open-ended account associated with the user based on the second request. The token system may receive information indicating that the limited use token was used in a second transaction between the user and the transacting entity. The token system may map the second transaction associated with the limited use token to the open-ended account mapped to the limited use token.