Foreign Cross-Issued Token for Multi-Currency Transactions

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Solution Overview

Problem

Existing systems for international transactions in different currencies are cumbersome, requiring pre-conversion of funds and dealing with changing exchange rates, and credit cards may expose account numbers to merchants, lacking certainty in conversion rates.

Innovation Solution

A token-based system that provides a virtual value token or foreign cross-issued token, allowing users to conduct transactions in multiple currencies without initial currency conversion, using a multi-currency token associated with multiple financial institution partners, which determines and applies the correct conversion rates at the time of transaction.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If pre-conversion of funds is performed before traveling, then customers can conduct transactions in foreign currency, but customers must deal with changing transaction rates and carry large sums of money

Engineering Contradiction:

Improveease of conducting foreign transactionsVSAvoidcertainty of conversion rate

Core Design Contradiction:

Ease of operationVSReliability

Solution Approach 1:

The system performs preliminary actions by establishing currency conversion parameters and determining multiple currency amounts in advance when the multi-currency token is created. However, the actual conversion to specific foreign currency amounts occurs at the time of transaction rather than requiring customers to pre-convert funds themselves, eliminating the need to carry large sums while maintaining conversion rate certainty through pre-established parameters.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The multi-currency token acts as an intermediary between the customer's home currency account and foreign currency transactions. The token stores value in multiple currencies based on pre-determined conversion parameters, allowing customers to conduct foreign transactions without directly dealing with currency conversion at the point of sale, thus ensuring both ease of operation and conversion rate certainty.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Ease of operation

If credit cards are used for foreign transactions, then customers can conduct transactions in foreign currencies, but the customer's actual account number must be released to the merchant

Engineering Contradiction:

Improveability to conduct foreign transactionsVSAvoidexposure of account information

Core Design Contradiction:

Ease of operationVSObject-affected harmful factors

Solution Approach 1:

The system extracts the sensitive account number information from the transaction process by using a multi-currency token that contains only the token value and currency information. The merchant receives and processes the token instead of the customer's actual account number, eliminating the security risk of account information exposure while maintaining the ability to conduct foreign currency transactions.

Inventive Principle:

Principle #2Taking out (Extraction)

Solution Approach 2:

The multi-currency token serves as an intermediary that replaces the customer's sensitive account information in foreign transactions. The token contains the necessary value and currency information for the transaction without exposing the underlying account number to the merchant, thus providing both operational convenience and security protection.

Inventive Principle:

Principle #24Intermediary (Mediator)

3Device complexity

If a single currency account is used, then account management is simple, but the user cannot conduct transactions in multiple currencies without conversion

Engineering Contradiction:

Improvesimplicity of account managementVSAvoidability to transact in multiple currencies

Core Design Contradiction:

Device complexityVSAdaptability or versatility

Solution Approach 1:

The multi-currency token is designed with multi-functionality to handle multiple currencies within a single account structure. The token determines multiple currency amounts based on pre-established conversion parameters, allowing the same token to be used for transactions in different currencies without requiring separate accounts for each currency, thus maintaining simplicity while enabling versatility.

Inventive Principle:

Principle #6Universality (Multi-functionality)

Solution Approach 2:

The system changes parameters by storing multiple currency amounts and conversion parameters within the single multi-currency token. Instead of requiring multiple accounts with different currencies, the token dynamically adjusts the currency amounts based on the transaction requirements and pre-determined conversion rates, providing multi-currency capability within a simplified single-account framework.

Inventive Principle:

Principle #35Parameter changes

Data Source

PatentUS9600844B2Foreign cross-issued token

Publication Date: 2017.03.21 BANK OF AMERICA CORP

AI summary

Embodiments disclosed herein relate to systems, methods, and computer program products for a system for providing a multi-currency token. The system, method, and computer program product are configured to receive a request for a multi-currency token, wherein the multi-currency token is associated with at least two financial institution partners; determine a value of the multi-currency token; establish currency conversion parameters for the multi-currency token based on at least one of the value of the multi-currency token and a conversion rate between currencies associated with the at least two financial institution partners; determine that a transaction is being performed with the multi-currency token, the transaction associated with a local currency; and complete the transaction with the multi-currency token in the local currency when the local currency is a currency associated with at least one of the financial institution partners.