Dynamic Network Token Application for Credit Authorization
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Solution Overview
Problem
Existing electronic transaction systems face challenges in optimizing transaction conversion rates due to the absence of secure methods for operating across disparate token service providers, leading to declined transactions and undesirable outcomes for merchants and account holders.
Innovation Solution
The use of network tokens is optimized by determining whether a payment transaction should include a network token based on the likelihood of authorization, obtaining a network token if necessary, and modifying the transaction to include it, thereby improving the chances of approval.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If tokenization is used to replace sensitive data, then data security is improved, but the ability to operate across disparate token service providers deteriorates
Solution Approach 1:
The patent introduces an intermediary system that translates between different token service provider protocols and a standardized internal representation. This intermediary layer enables secure tokenization while maintaining compatibility across disparate providers, resolving the contradiction between security and adaptability.
Solution Approach 2:
The system implements a universal token interface that can work with multiple token service providers through a common API layer. This multi-functional approach allows the same system to operate across different token providers without compromising security or requiring provider-specific implementations.
2Ease of operation
If conventional transaction submission methods are used, then processing simplicity is maintained, but transaction conversion rates deteriorate
Solution Approach 1:
The system performs preliminary analysis of transaction characteristics before submission, identifying optimal authorization strategies in advance. This preliminary action improves conversion rates without adding complexity to the actual submission process, as the optimization is prepared beforehand.
Solution Approach 2:
The system implements feedback loops that analyze authorization outcomes and adjust submission strategies accordingly. This feedback mechanism continuously improves conversion rates while maintaining operational simplicity through automated learning and adaptation.
Data Source
AI summary
A computer-implemented method for optimizing transaction authorization conversion rates based on the use of network tokens may include receiving, at an acquirer processor, a payment transaction from a merchant, determining whether the payment transaction includes a network token, upon determining that the payment transaction does not include a network token, determining whether the payment transaction should be modified to include a network token based on a likelihood that the payment transaction will be authorized by a financial institution will be increased when the payment transaction includes a network token, upon determining whether the payment transaction should be modified to include a network token, obtaining a network token for the payment transaction, and modifying the payment transaction to include the obtained network token, and submitting the modified payment transaction to the financial institution for processing.