Deferred Real-Time Payments via Digital Certificates
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Solution Overview
Problem
Current real-time payment networks lack the necessary infrastructure and security measures to facilitate trusted and secure deferred payment transactions for deferred fulfillment orders, particularly due to concerns about man-in-the-middle attacks and the instantaneous transfer of funds, which compromises trust and security.
Innovation Solution
A system environment that utilizes digital certificates for authentication and secure communication between entities, eliminating the need to transmit sensitive account credentials, and employs a real-time payment network for trusted and secure deferred transactions through a deferred payment system that includes a processor, memory, certificate generator, secure directory service, and API for facilitating trusted and secure communication.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Speed
If real-time payment network transfers funds instantaneously from consumer bank account to merchant bank account, then payment speed is improved, but trust and security are worsened due to inability to perform pre-authorization and partial settlements
Solution Approach 1:
The patent introduces a deferred payment system as an intermediary layer between the consumer and merchant banks. This system receives pre-authorization requests, validates them, and then initiates controlled real-time transfers. The intermediary enables pre-authorization checks and partial settlement capabilities while maintaining the speed benefits of real-time transfers, resolving the contradiction between instantaneous payment and security/trust requirements.
Solution Approach 2:
The patent segments the payment process into distinct phases: pre-authorization, deferred payment setup, and controlled settlement. This segmentation allows the system to perform security validations and authorization checks before the actual fund transfer, while still enabling real-time transfers when authorized. The segmented approach maintains payment speed for approved transactions while enhancing trust and security through preliminary validation steps.
2Ease of operation
If bank account credentials are transmitted through the payment network, then payment processing is simplified, but security is worsened due to risk of man-in-the-middle attacks and credential theft
Solution Approach 1:
The deferred payment system acts as a trusted intermediary that receives and validates payment instructions without requiring direct transmission of sensitive bank account credentials across the network. The system uses secure tokenization and validation mechanisms, where credentials are verified by the intermediary rather than transmitted end-to-end. This eliminates the credential transmission vulnerability to man-in-the-middle attacks while maintaining simplified payment processing for users.
Solution Approach 2:
The patent implements tokenization where sensitive credential information is replaced with secure tokens or references. Instead of transmitting actual bank account numbers and routing numbers through the network, the system uses validated credential copies or tokens that are meaningless to attackers. This copying approach maintains the functionality of payment processing while eliminating the security risk of credential exposure during transmission.
Data Source
AI summary
The disclosure relates to a deferred real-time payment (RTP) in a trusted and secure system environment to pay for a deferred fulfillment order. The deferred fulfillment order includes products or services that may be fulfilled in part or in full after authorization of the deferred RTP. To facilitate trust and security, a deferred payment system may digitally sign certificates issued to various entities in the system environment. Devices in the system environment may transmit and receive messages to create and later settle deferred RTPs that are trusted based on authentication of the digitally signed certificates, which mitigate against security threats such as man-in-the-middle attacks in a communication network.