Digital Pre-authorization Tokens for Real-time Payment Security
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Solution Overview
Problem
Current payment systems face challenges in preventing fraudulent activities, particularly in digital transactions, due to delays in authorization processes and exposure to malicious interventions during offline authorization protocols.
Innovation Solution
The implementation of a system that generates and provisions digital pre-authorization tokens, which are valid for limited temporal intervals and include device-specific cryptograms, allowing terminal devices to authorize transactions locally based on pre-authorized data exchanges, reducing the risk of fraudulent activities by requiring both tokenized payment data and device-specific cryptograms to be valid during specific times.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If real-time authorization is implemented, then security against fraudulent activities is improved, but processing time and system complexity increase
Solution Approach 1:
The system performs pre-authorization of data exchanges before the actual transaction occurs. The computing system receives pre-authorization requests with parameter values, validates them against occurrence data, and generates digital tokens in advance. This preliminary validation reduces the need for complex real-time authorization processing, thereby improving security while minimizing processing time delays during actual transactions.
Solution Approach 2:
Digital tokens serve as intermediaries between the pre-authorization system and the actual data exchange. These tokens encapsulate authorization information and can be validated locally by terminal devices without requiring continuous communication with the computing system. This intermediary mechanism enhances security through pre-validation while reducing real-time processing requirements.
2Reliability
If pre-authorization tokens with temporal validity are used, then fraudulent activity detection is improved, but device complexity and data management burden increase
Solution Approach 1:
The system changes the temporal parameter of authorization tokens by embedding validity time intervals within them. Each digital token contains information about its issuance time and expiration time, allowing terminal devices to automatically determine validity by comparing current time with these parameters. This parameter-based approach improves fraud detection capability while keeping device complexity manageable through automated time comparison logic.
Solution Approach 2:
The patent employs short-lived digital tokens that expire after specific temporal intervals. These tokens are designed to be consumed once for authorization purposes and then discarded, replacing the need for long-term credential management. This approach enhances security by limiting the window for fraudulent use while reducing the long-term data management burden through automatic expiration and disposal of outdated tokens.
3Productivity
If offline authorization protocols are used, then processing speed is improved, but security against malicious interventions deteriorates
Solution Approach 1:
The system performs security validation in advance by pre-authorizing data exchanges and generating digital tokens before offline processing occurs. The computing system validates parameters against occurrence data and creates authenticated tokens that can be processed offline. This preliminary security measure maintains high processing speeds during offline operations while preventing malicious interventions through prior validation.
Solution Approach 2:
The system creates digital token copies that contain authorization information, allowing terminal devices to perform offline authorization by validating against these copied tokens rather than requiring continuous online communication. This copying mechanism enables fast offline processing while maintaining security through the use of pre-authenticated token copies that can be verified locally without exposing sensitive data to potential interception.
Data Source
AI summary
The disclosed exemplary embodiments include computer-implemented systems, apparatuses, and processes that, among other things, authorize initiated exchanges of data in real-time based on dynamically generated tokenized data. For example, an apparatus may receive first positional data identifying a first geographic position of a client device and based on the first positional data, the apparatus may determine a value of a parameter characterizing an exchange of data between the client device and a terminal device disposed proximate to the client device during a temporal interval. The apparatus may transmit data requesting a pre-authorization of the data exchange to a computing system, which perform operations that pre-authorize the data exchange in accordance with the parameter value and transmit a digital token representative of the pre-authorized data exchange to the terminal device. The digital token may be valid during the temporal interval and may include a cryptogram associated with the client device.