Cross-Network Payment Token Routing via Issuer Identifier
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Solution Overview
Problem
Conventional payment systems face challenges in identifying the source or issuer of a payment token, especially when transactions involve different payment processing networks, leading to difficulties in routing transactions appropriately.
Innovation Solution
A method and system that enable transactions using a token associated with a first payment network to be processed through a second payment network, by identifying the network token system associated with the token, sending a token verification request, and receiving a response with a primary account identifier and validation result, allowing the transaction to be routed correctly.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a payment token is used to replace the consumer's PAN, then security against fraudulent activity is improved and PCI DSS compliance requirements are reduced, but the ability to identify the source or issuer of the token deteriorates
Solution Approach 1:
The token is segmented into multiple functional components: a token value for security purposes and a separate predetermined issuer identifier for routing purposes. This segmentation allows the token to simultaneously provide security (by replacing the PAN) while preserving routing information (through the separate identifier), thus resolving the contradiction between security improvement and information loss.
2Reliability
If a token without apparent routing information is used, then security is improved, but the ability to route transactions appropriately deteriorates
Solution Approach 1:
A predetermined issuer identifier acts as an intermediary element that bridges the gap between the tokenized payment system and the traditional routing infrastructure. This intermediary carries the necessary routing information from the token issuer to the payment processing network, enabling appropriate transaction routing while maintaining the security benefits of tokenization.
3Adaptability or versatility
If tokens from different payment networks are processed through a single network, then network versatility is improved, but the complexity of identifying and validating the correct network deteriorates
Solution Approach 1:
The predetermined issuer identifier is embedded in the token during the tokenization process, performing the network identification function in advance. This preliminary action eliminates the need for complex real-time network identification and validation when processing cross-network transactions, as the correct network can be immediately identified from the issuer identifier already present in the token.
Data Source
AI summary
Systems, apparatuses, and methods are provided for enabling a transaction using a token associated with a first payment network to be conducted using a second payment network. When a transaction using a token is submitted to a payment network, the payment network can determine the payment network associated with the token. If the token is associated with a second payment network, a token verification request including the token can be sent to the second payment network. The second payment network can then return a token verification response including a primary account identifier such as a primary account number (PAN) corresponding to the token and a validation result. The transaction may then be processed using the primary account identifier.