Dynamic Virtual Card Identifiers for Authorized-User Controls
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Solution Overview
Problem
Authorized users of virtual credit cards are not legally obligated to pay for charges, leading to potential misuse, exceeding usage limits, unauthorized transactions, and fraudulent activities, which negatively impact customer experience and credit account limits.
Innovation Solution
A computer-based system dynamically generates unique schema-specific identifiers (virtual card numbers) through an API call based on user identity, location, and action type, using machine learning and artificial intelligence to authenticate transactions and manage usage parameters.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If authorized users are granted permission to utilize services associated with a credit card account, then user convenience and service accessibility are improved, but transaction security and risk of fraudulent activities deteriorate
Solution Approach 1:
The patent segments the credit card account system by creating dynamic virtual card numbers for each authorized user instead of using a single shared card number. Each virtual card number is associated with specific controls (spending limits, time periods, locations, merchants), dividing the monolithic account into controlled segments that can be independently monitored and restricted.
Solution Approach 2:
The patent applies local quality by assigning different control parameters to different authorized users based on their specific needs and risk profiles. Each user receives customized controls including spending limits, geographic restrictions, time-based limitations, and merchant-specific restrictions, allowing the system to treat each user transaction with appropriate localized security measures.
2Reliability
If dynamic virtual card numbers are generated with multiple control parameters, then transaction security and fraud prevention are improved, but system complexity and processing requirements deteriorate
Solution Approach 1:
The patent applies preliminary action by pre-configuring control parameters (spending limits, locations, time periods, merchants) when creating virtual card numbers for authorized users. These controls are established in advance through API calls to the card issuer system, so that when transactions occur, the system only needs to verify against pre-set rules rather than making complex real-time decisions, reducing processing complexity.
Solution Approach 2:
The patent introduces an intermediary layer (the virtual card number system with API integration) between the authorized users and the primary credit card account. This intermediary handles the complex control logic, parameter validation, and transaction monitoring, shielding the primary account system from direct exposure to complex security checks while maintaining centralized control through the card issuer's API.
3Ease of operation
If multiple authorized users are granted access to the account, then user convenience and service utilization are improved, but monitoring and control over individual user spending deteriorate
Solution Approach 1:
The patent segments user identification and spending tracking by generating unique virtual card numbers for each authorized user. This segmentation allows the system to automatically attribute each transaction to a specific user through their unique virtual card number, making spending monitoring straightforward without requiring manual tracking or user identification at the point of transaction.
Solution Approach 2:
The patent implements feedback mechanisms where the system continuously monitors transactions against pre-configured control parameters for each authorized user. When transactions occur, the system automatically compares them against the user's limits (spending caps, geographic restrictions, time periods, merchant approvals) and provides real-time feedback by approving or declining transactions, along with notifying users of their spending status.
Data Source
AI summary
In some embodiments, the present disclosure provides an exemplary method that may include steps of receiving a permission from a user of a plurality of users to utilize a particular service associated with a device; identifying a predetermined plurality of authentication rules associated with a profile of the primary user; determining a plurality of parameters associated with the device at a particular time period; comparing a set of controls associated with a current utilization of the service of the device to the plurality of parameters associated with the device; generating an API call based on a comparison of the set of controls to the plurality of parameters; generating a plurality of unique schema-specific identifiers based on a generated API call associated with the set of controls established by the primary user; and generating a provision utilizing the unique schema-specific identifier to perform a particular action associated with the device.