Centralized Payment Platform Virtual Card Tokenization
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Solution Overview
Problem
Current payment processing systems, especially for international transactions, are slow and costly, requiring substantial capital for multiple authorizations and involving high transaction fees and delays, making it inconvenient for urgent cross-border money transfers.
Innovation Solution
A centralized payment processing platform that allows users to create virtual payment cards, share funds digitally without physical cards, and process payments through a certified processor, reducing the need for intermediaries and associated fees by enabling direct access to funds within specified limits.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Speed
If traditional bank payment processing is used for international transactions, then payment security and compliance are ensured, but processing speed is slow and transaction fees are high
Solution Approach 1:
The patent introduces a centralized payment processing platform as an intermediary that obtains a single authorization from a payment system (Visa, MasterCard, etc.) and uses it to process multiple transactions across different jurisdictions. This single intermediary approach replaces the traditional model where each transaction requires separate bank authorizations, thereby reducing fees while maintaining security through the certified payment system's oversight.
Solution Approach 2:
The payment processing platform provides universal processing capabilities across multiple jurisdictions and currencies through a single authorized interface. By obtaining one authorization that covers multiple geographical regions and transaction types, the system achieves multi-functionality without requiring separate authorization for each transaction, thus reducing overall transaction costs and improving processing speed.
2Reliability
If multiple authorizations are obtained for transactions in multiple jurisdictions, then compliance with local regulations is achieved, but capital requirements and system complexity increase
Solution Approach 1:
The patent merges multiple jurisdictional authorizations into a single centralized authorization obtained through one payment system interface. Instead of maintaining separate authorization systems for each jurisdiction, the platform combines them under one unified authorization that covers multiple regions, thereby reducing system complexity while maintaining compliance through the payment system's multi-jurisdictional licensing.
Solution Approach 2:
The centralized platform achieves universal compliance across multiple jurisdictions through a single authorization mechanism. The payment system's authorization is designed to be universally valid across different regions, eliminating the need for separate compliance systems for each jurisdiction and reducing overall system complexity while maintaining regulatory reliability.
3Ease of operation
If cross-border bank transfers are used, then money can be transferred internationally, but transaction fees and processing delays are considerable
Solution Approach 1:
The centralized payment processing platform acts as an intermediary that enables direct virtual card issuance and token-based transfers, bypassing traditional cross-border bank transfer protocols. This intermediary approach allows instant virtual card creation and fund allocation without the lengthy IBAN verification and interbank settlement processes, thereby reducing processing delays while maintaining international transfer capability.
4Reliability
If virtual payment cards are issued through traditional banks, then payment security is maintained, but the process requires substantial capital and multiple authorizations
Solution Approach 1:
The centralized payment processing platform serves as an intermediary that issues virtual payment cards under a single payment system authorization. This eliminates the need for each participating entity to obtain separate bank authorizations and reduces capital requirements by consolidating the authorization structure. The payment system's single authorization provides the necessary security framework without requiring substantial capital from each jurisdictional participant.
Data Source
AI summary
Provided is a method for distributed payment processing using a centralized payment processing platform. The method includes creating, using an application, an account associated with the centralized payment processing platform; creating, using the application, a virtual payment card associated with the account; receiving a selection of a balance for the virtual payment card within a limit of the account; receiving a selection of a recipient for the virtual payment card; generating a token associated with the virtual payment card; and transferring the token to the recipient. The payments made with the virtual payment card are processed by the centralized payment processing platform.