Dynamic Payment Packet Generation for Secure Tokenized Commerce
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Solution Overview
Problem
Current payment systems are limited in their ability to provide additional data elements with payment credentials, requiring secure servers that restrict the range of participants and data ownership, thereby limiting commerce and payment participants.
Innovation Solution
The implementation of a token-based commerce system that generates dynamic payment packets (DPPs) which can include additional data elements, allowing interactions with external systems and third parties, and can be used on mobile devices for secure, real-time transactions, eliminating the need for storing credit card numbers and CVV codes, with parameters such as transaction limits and expiration dates.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If additional data elements are combined with payment credentials in a secure server, then payment security is improved, but the range of participants in commerce and payments is limited
Solution Approach 1:
The system segments payment data into two parts: static payment credentials stored securely in the issuer server, and dynamic data elements generated at the point of sale. This segmentation allows the static credentials to remain protected while enabling dynamic participation from multiple parties (merchants, processors, issuers) without compromising security.
Solution Approach 2:
The patent introduces an intermediary system (the payment processing network with DPP manager) that mediates between the issuer server and external participants. This intermediary generates and manages dynamic payment packets, allowing multiple participants to interact securely without direct access to sensitive payment credentials, thus expanding participant range while maintaining security.
2Reliability
If all payment data is stored and owned by the issuer/manager, then data security is improved, but device complexity and data management requirements increase
Solution Approach 1:
The system extracts sensitive payment credentials from the transaction flow and stores them securely in the issuer server, while only transmitting necessary dynamic payment data elements during transactions. This extraction reduces the complexity of data management at processing points while maintaining security through centralized credential storage.
Solution Approach 2:
Instead of storing and managing all payment data centrally, the system creates dynamic copies (DPPs) of payment credentials at the point of sale. These temporary copies contain only the necessary transaction data, reducing the complexity of centralized data management while maintaining security through limited data exposure.
3Adaptability or versatility
If dynamic payment packets are generated and transmitted, then transaction functionality is enhanced, but data transmission and processing time increases
Solution Approach 1:
The system performs preliminary actions by pre-generating and storing dynamic payment packet templates in the issuer server, containing all necessary data element structures. During transactions, only specific values need to be populated and transmitted, significantly reducing processing time while maintaining enhanced functionality.
Solution Approach 2:
The system changes parameters by generating dynamic values for specific data elements (such as transaction-specific identifiers, timestamps, and amounts) while keeping the overall DPP structure standardized. This allows for enhanced transaction functionality through dynamic data while maintaining fast processing through consistent data formats.
Data Source
AI summary
A system and method for enhanced token-based payments. The system and method including software and hardware to receive, via a network, a request for authorization; create, in response to the request, a dynamic payment packet (DPP) for payment; transmit, via a network, the DPP; receive, via a network, an authorization request, the DPP, and a transaction ID; receive at least one additional data element relating to the customer involved in the transaction and the transaction itself; and transmit, via a network, the transaction ID, an authorization response, and token.