Delegate Payment Authorization with Identity Verification
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Solution Overview
Problem
Users face challenges in controlling a delegate's spending when they are unable to make a purchase in person, as they have limited control over the delegate's use of their funds, leading to potential misuse.
Innovation Solution
A system where a user authorizes a delegate to make purchases by sending information such as the delegate's picture, merchant details, and transaction limitations to a payment provider, which generates a one-time code for the delegate to use, ensuring the delegate's identity is verified before processing the transaction, allowing the user to control spending through various restrictions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If a user gives a delegate a payment instrument or cash to make purchases on their behalf, then the delegate can make purchases without the user being present, but the user loses control over what the delegate can spend and on what
Solution Approach 1:
The payment instrument is segmented into multiple components: a base card and separate disposable virtual accounts. Each virtual account has its own spending limits and restrictions, allowing the user to divide control into manageable segments rather than giving one large sum of control.
Solution Approach 2:
The user performs preliminary actions by pre-configuring spending limits, merchant categories, and geographic restrictions on each virtual account before giving it to the delegate. This preliminary setup ensures control is established in advance, preventing misuse during the actual purchase process.
2Reliability
If a user provides detailed spending restrictions to a delegate, then user control over spending is improved, but the complexity of the payment system increases
Solution Approach 1:
The payment instrument acts as an intermediary between the user and delegate. It automatically enforces spending rules, limits, and restrictions without requiring complex communication or verification between user and delegate during transactions. The intermediary handles the complexity internally while presenting a simple interface to both parties.
Solution Approach 2:
Instead of creating a complex custom payment system, the invention uses copies of existing payment technology (virtual accounts, spending limits, merchant categories) that already have built-in control mechanisms. These copied features are combined to achieve the desired control without redesigning the entire system.
3Measurement precision
If a user creates multiple virtual accounts with different spending limits, then control precision is improved, but the time required to set up and manage accounts increases
Solution Approach 1:
The payment instrument system allows dynamic creation and modification of virtual accounts. Users can quickly create new virtual accounts on-demand with different spending limits and restrictions, and can modify existing accounts as needed. This dynamic capability reduces setup time compared to static pre-configured systems.
Solution Approach 2:
The system allows users to change parameters (spending limits, merchant categories, geographic restrictions) of virtual accounts without recreating the entire account structure. This parameter flexibility enables precise control while minimizing the time investment required for setup and management.
Data Source
AI summary
A user who is authorizing a delegate to make a purchase using funds from an account of the user sends information to a payment provider. The information includes a picture of the delegate, along with information such as a merchant name, a maximum amount, a type of purchase, item information, and/or any other transaction limitations/restrictions. The payment provider then transmits this information to the merchant. A one-time code or number may be communicated to the delegate. When the delegate is ready to make a payment with the user account, the delegate gives the delegate's name and/or other identifying information to the merchant, along with the payment code. The merchant enters the information and is shown a picture of the delegate. If there is a match, the payment may be submitted for processing. In one embodiment, a photo of the delegate may be taken by the merchant and the image transmitted to the user. The user may then be requested to confirm the delegate as an authorized delegate.