Cryptogram Preauthorization for Faster Electronic Payment Processing
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Solution Overview
Problem
Integrating new payment device provider systems in electronic payment processing networks is challenging due to the need to interface with multiple disparate systems, requiring significant computational resources and duplicative communication channels, and existing payment processes require users to wait for issuer authorization, which is inefficient.
Innovation Solution
A cryptogram-based system using a unified service orchestration layer generates a cryptogram with a public-private key pair to authenticate user devices during transactions, allowing immediate authorization without direct communication with the payment device provider system, and automatically debits or credits accounts based on prepaid amounts.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If a new payment device provider system integrates with multiple disparate systems through separate communication channels, then the system can initiate payment device programs, but the computational resources required increase and communication channels become duplicative and wasteful
Solution Approach 1:
A unified service orchestration layer is introduced as an intermediary between payment device provider systems and multiple disparate systems (issuer systems, KYC service providers, BIN sponsors, etc.). This orchestration layer consolidates multiple separate communication channels into a single unified interface, eliminating duplicative communication and reducing computational resource requirements while maintaining full integration capability.
Solution Approach 2:
The unified service orchestration layer provides multi-functional capabilities by handling multiple types of interactions (issuer authorization, KYC verification, BIN validation) through a single universal interface. This allows payment device provider systems to access multiple services through one consolidated channel rather than requiring separate integrations for each function.
2Reliability
If users wait for issuer authorization before leaving the point-of-sale device, then merchant payment assurance is provided, but transaction processing time increases
Solution Approach 1:
The system performs preliminary actions by generating cryptograms and establishing authorization credentials before the actual transaction occurs. Users receive prepaid amounts and authentication credentials in advance, allowing them to complete transactions immediately without waiting for real-time issuer authorization, thus reducing processing time while maintaining payment assurance through pre-established credentials.
Solution Approach 2:
The patent replaces the traditional mechanical authorization workflow (real-time issuer communication and waiting) with a cryptographic substitution system. Cryptograms and digital signatures provide mathematical assurance of payment validity without requiring physical or network-based verification during the transaction, enabling immediate processing while maintaining reliability through cryptographic proof.
Data Source
AI summary
A computer-implemented method may include: transmitting a public key to a merchant system, the public key of a payment device provider system; receiving a request for a prepaid amount from a user device of a user; in response to receiving the request, generating a cryptogram based on a payment device of the user, the prepaid amount, and a private key corresponding to the public key of the payment device provider system, the public key and the private key forming a public-private key pair associated with the payment device provider system; and transmitting the cryptogram to the user device, the cryptogram configured to authenticate the user device during an electronic payment transaction initiated by the user device with a merchant system.