Dynamic Payment Tokenization for Secure Transaction Authorization
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Solution Overview
Problem
Current cashless transaction systems lack effective security measures to prevent payment card misuse and do not allow users to set personalized limitations on transactions, exposing account holders to risks of unauthorized transactions and losses.
Innovation Solution
A system and method that generates a graphic indicium or token associated with a financial service account, allowing users to set limitations such as date, time, and location for transactions, which can be printed on a substrate or loaded into an electronic payment system, enabling secure and customizable transaction authorization.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If traditional cashless transaction systems are used, then payment convenience is improved, but security risks and unauthorized transactions increase
Solution Approach 1:
The patent divides the payment card functionality into multiple segments: a primary card for general use and multiple secondary cards with specific limitations (geographic, temporal, merchant-type restrictions). This segmentation allows users to maintain convenience while reducing security risks by limiting the impact of any single card compromise.
Solution Approach 2:
The system introduces an intermediary layer between the user's financial account and the merchant, represented by the limited-use secondary cards. These intermediary cards act as buffers that can be easily revoked or limited without affecting the primary account, thereby reducing direct security exposure.
2Reliability
If payment cards are made more secure with limitations, then unauthorized transactions are reduced, but transaction flexibility and convenience are limited
Solution Approach 1:
The patent implements dynamic card management where users can create multiple secondary cards with different limitation profiles and activate/deactivate them based on transaction needs. The system dynamically adjusts card availability and limitations through a user interface, allowing flexible adaptation to different shopping scenarios while maintaining security.
Solution Approach 2:
The limited-use payment cards serve multiple functions: they provide security through limitations, enable transactional flexibility through user-selectable parameters, and offer account management capabilities. A single card system handles both security enforcement and user convenience requirements.
3Reliability
If users can set personalized transaction limitations, then control over unauthorized transactions is improved, but system complexity increases
Solution Approach 1:
The system creates simplified copies of the payment card with pre-configured limitations rather than requiring complex real-time verification. The limited-use cards contain embedded restriction data that can be easily read and enforced by point-of-sale systems without complex processing, reducing overall system complexity while maintaining user control.
Solution Approach 2:
Users independently manage their payment card limitations through an intuitive user interface, creating and configuring secondary cards with their own specific requirements. This self-service approach eliminates the need for complex administrative systems while giving users full control over transaction limitations.
Data Source
AI summary
In some embodiments, a request associated with a user account may be obtained, where the request includes a restriction associated with the user account. Based on the restriction included in the request, a token (that encodes the restriction included in the request) may be generated. The graphic indicum may be sent to the client device to facilitate a transaction using the token. In some embodiments, information associated with the token and a request to authorize the transaction may be obtained, and the restriction may be identified based on the information associated with the token. The transaction may be authorized based on a determination that the transaction satisfies the restriction.