Dynamic Payment Authorization with Direct Capture and Credential Separation
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Solution Overview
Problem
The increasing number of capture requests in credit/debit card transactions leads to high authorization processing costs and risks of data leakage due to the storage of card information on mobile operator systems.
Innovation Solution
Implement a payment authorization system that reduces authorization requests by configuring conditions for transactions, allowing some to bypass authorization and directly proceed to capture, with credential information stored independently from the business support system, reducing processing burden on card issuers and enhancing security.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If the mobile operator stores card details in a storage device to enable payments, then payment functionality is provided, but the risk of data leakage increases
Solution Approach 1:
The patent extracts card detail storage from the mobile operator's system by introducing a card host (bank) as a separate storage entity. The mobile operator no longer stores card details locally but instead stores only transaction-related information in its support system, while card details are maintained at the card host. This separation eliminates the data leakage risk at the mobile operator while preserving payment functionality through the gateway's authorization and capture mechanisms.
2Reliability
If the mobile operator processes all capture requests through the card company, then transaction authorization is ensured, but processing costs and resource consumption increase
Solution Approach 1:
The patent segments the payment processing workflow into distinct functional components: the mobile operator initiates transactions, the payment gateway handles authorization decisions, and the card host executes fund transfers. This segmentation allows the system to differentiate between transactions requiring full authorization (credit cards) and those that can proceed directly to capture (debit cards or pre-authorized transactions), thereby reducing unnecessary authorization processing costs while maintaining security through conditional gateway intervention.
3Reliability
If the system performs full authorization for all transactions, then security is maintained, but the number of authorization requests increases
Solution Approach 1:
The patent implements dynamic authorization control where the payment gateway adaptively determines whether full authorization is required based on transaction type, card type, and configured rules. The system dynamically adjusts the authorization process: for credit cards and high-risk transactions, full authorization is performed; for debit cards with sufficient funds or pre-authorized recurring payments, the system skips to direct capture. This dynamic approach maintains security for high-risk transactions while significantly improving processing efficiency for low-risk transactions.
Data Source
AI summary
A method of transaction authorization includes receiving, by a payment gateway of a payment platform and from a business support system (BSS), an authorization request for a transaction and a security token corresponding to credential information, determining, by the payment gateway, whether an authorization for the transaction is required, and, based on determining that an authorization for the transaction is not required, generating, by the payment gateway, a capture request for retrieving funds for the transaction, sending, by the payment gateway, the capture request to a card issuer corresponding to the credential information, and transferring, by the payment gateway, the funds for the transaction to an operator of the payment gateway.