Dynamic Payment Token Offline Authorization

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Solution Overview

Problem

Existing electronic payment systems are vulnerable to fraud when network access is lost, as static payment tokens cannot be used without communication with the centralized processing system, posing risks for both consumers and merchants.

Innovation Solution

Encrypting payment tokens with dynamic trust data, such as transaction history and token generation time, allows merchants to authorize transactions locally without network access, while protecting consumer account information from theft.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If a centralized payment processing system is used to verify tokens, then payment security is improved, but the system becomes vulnerable to fraud when network access is lost

Engineering Contradiction:

Improvepayment securityVSAvoidfraud risk during network outage

Core Design Contradiction:

ReliabilityVSObject-affected harmful factors

Solution Approach 1:

The system pre-loads trust data (transaction history, device reputation, location information) into the token before offline use. This preliminary action enables the merchant system to verify tokens locally without real-time network connection, maintaining payment security while eliminating fraud risk during network outages

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

Trust data acts as an intermediary between the centralized payment system and offline transaction verification. The trust data encapsulates authentication information that allows the merchant system to make authorization decisions locally, bridging the gap between centralized security requirements and offline operational needs

Inventive Principle:

Principle #24Intermediary (Mediator)

2Ease of operation

If static token information is used for payment, then transaction processing is simplified, but the token cannot be used offline without significant fraud risk

Engineering Contradiction:

Improvetransaction processing simplicityVSAvoidoffline payment capability

Core Design Contradiction:

Ease of operationVSReliability

Solution Approach 1:

The token is enhanced by adding dynamic trust data parameters (transaction history, device fingerprint, location coordinates, time stamps) to the traditional static token structure. This transformation maintains the simplicity of token presentation while enabling offline verification through enriched information content

Inventive Principle:

Principle #35Parameter changes

3Reliability

If merchants copy and save consumer account information for later processing, then offline payment capability is improved, but the risk of account theft increases

Engineering Contradiction:

Improveoffline payment capabilityVSAvoidaccount theft risk

Core Design Contradiction:

ReliabilityVSObject-affected harmful factors

Solution Approach 1:

The system uses disposable, single-use tokens that are generated for each transaction or short time period. Each token contains embedded trust data that is valid only for its intended use and time window. After use or expiration, the token becomes invalid, eliminating the risk associated with storing reusable account information while maintaining offline payment capability

Inventive Principle:

Principle #27Cheap short-living objects (Disposable)

Solution Approach 2:

The token transitions from static account information to a dynamic credential that includes time-sensitive and transaction-specific trust data. This dynamic nature ensures the token is only valid under specific conditions (time, location, transaction amount), preventing unauthorized reuse while enabling offline processing

Inventive Principle:

Principle #15Dynamics

Data Source

PatentUS11587057B2Distributed authenticity verification for consumer payment transactions

Publication Date: 2023.02.21 GRUBHUB HLDG

AI summary

Payment tokens designed for display on a consumer's mobile device include dynamic trust data (e.g., transaction history and/or token generation date) along with financial account information, enabling merchants to make an informed decision about whether to accept payment without communication with the central processing system, and also protecting the consumer's account information from theft.