Card-to-Bank Payment Routing Without Card Number Transmission
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Solution Overview
Problem
Security issues and inefficiencies arise in 'card not present' transactions due to the transmission of credit card numbers, which can lead to fraud and manual entry errors, and existing automated payment methods are cumbersome and insecure.
Innovation Solution
A method for automated payment processing that directly transfers funds from a purchaser's account to a supplier's account without transmitting transaction account numbers, using virtual account numbers for enhanced security, and reconciling transactions efficiently through backend systems.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If credit card numbers are transmitted via email or phone for card not present transactions, then transactions can be completed without physical card presence, but security risks increase due to potential leakage and fraud
Solution Approach 1:
The patent introduces an automated payment processing system as an intermediary between purchaser and supplier. The system receives transaction requests, processes payments automatically, and handles reconciliations without requiring direct transmission of sensitive credit card information between parties. This intermediary architecture eliminates the security vulnerability of email/phone transmission while maintaining convenient card-not-present transactions.
Solution Approach 2:
The system enables self-service automated payment processing where the purchaser initiates transactions through an interface, and the system automatically completes payment transfer, account reconciliation, and transaction processing without manual intervention. This self-service mechanism maintains security by eliminating human handling of sensitive card data while preserving operational convenience.
2Ease of operation
If credit card numbers are manually entered at the point of sale, then transactions can be completed without physical card, but the process is time consuming and prone to human error
Solution Approach 1:
The system performs preliminary actions by automatically processing payment transactions in the background once a purchaser initiates a request. The automated system pre-handles account debiting, payment transfer, and reconciliation processes before the transaction is complete, eliminating the time-consuming manual entry steps while maintaining the ability to complete transactions without physical card presence.
3Productivity
If multiple emails with sensitive credit card information are received, then multiple transactions can be processed, but confusion and delays increase
Solution Approach 1:
The patent merges multiple transaction processing functions into a single automated system. Instead of receiving separate emails for each transaction, the system consolidates transaction requests, payment processing, and reconciliations into one integrated platform. This merging approach maintains high transaction productivity while eliminating the confusion and delays associated with handling multiple separate communications.
Solution Approach 2:
The system implements automated feedback mechanisms that provide real-time status updates and notifications for transaction processing, account reconciliations, and payment completions. This feedback loop eliminates confusion by providing clear, centralized information about transaction states without requiring manual tracking of multiple emails, thereby maintaining productivity while reducing processing delays.
4Reliability
If automated payment processing is implemented, then security is enhanced by not transmitting card numbers, but system complexity increases
Solution Approach 1:
The automated payment processing system acts as a secure intermediary that handles all sensitive payment operations behind the scenes. By concentrating security functions in this single intermediary layer, the system achieves high security standards without distributing complexity across multiple points of contact. The intermediary manages account verification, payment processing, and reconciliation centrally, enhancing security while containing system complexity in a manageable architecture.
Data Source
AI summary
Disclosed herein are system, method, and computer program product embodiments for a method of automated payment processing. In some embodiments, the method may receive a transaction request from a purchaser to transfer a payment amount from a purchaser account of the purchaser to a supplier account associated with a supplier. The transaction request may be an invoice including a payment amount for the specific transaction and a supplier identification number identifying the supplier. In response to the transaction request, the method debits the payment amount from the purchaser account, identifies the supplier account based on the supplier identification number, and credits the payment amount to the identified supplier account. The purchaser account may be linked to a transaction card used to pay the payment amount. The method allows automated payment processing without transmission of a transaction account number linked to the purchaser account.