Holder-Controlled Payment Instrument Switching for Fraud Mitigation

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Solution Overview

Problem

Existing payment systems lack direct control by the holder over payment instruments, leading to increased fraud risk and delayed fraud mitigation, requiring external assistance and multiple transaction processing steps.

Innovation Solution

A payment vehicle with an 'on' and 'off' function that allows the holder to remotely enable or disable the payment instrument via text message or electronic means, providing control over its usage and enabling fraud prevention.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If a payment instrument is always turned on, then ease of operation is improved, but security and fraud prevention deteriorate

Engineering Contradiction:

Improveease of operationVSAvoidsecurity

Core Design Contradiction:

Ease of operationVSReliability

Solution Approach 1:

The payment instrument transitions from a static always-on state to a dynamic state that can be switched between on and off by the holder through electronic communication, allowing the security status to adapt to different usage scenarios and risk levels

Inventive Principle:

Principle #15Dynamics

Solution Approach 2:

The holder directly controls the on/off status of their payment instrument through electronic communication without requiring external assistance from customer service representatives, enabling immediate self-service security control

Inventive Principle:

Principle #25Self-service

2Reliability

If fraud mitigation requires external assistance, then reliability of fraud prevention is improved, but loss of time increases

Engineering Contradiction:

Improvefraud preventionVSAvoidtime delay

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

The system establishes electronic communication channels and protocols in advance that enable immediate on/off control of payment instruments, so when fraud is detected, the holder can instantly disable the instrument without waiting for external assistance

Inventive Principle:

Principle #10Preliminary action

3Ease of operation

If a payment instrument holder wants direct control, then ease of operation is improved, but device complexity increases

Engineering Contradiction:

Improvedirect controlVSAvoidsystem complexity

Core Design Contradiction:

Ease of operationVSDevice complexity

Solution Approach 1:

The patent introduces an intermediary electronic communication system that mediates between the holder and the payment instrument issuer, allowing direct control functionality without requiring complex changes to the existing payment infrastructure or instrument design

Inventive Principle:

Principle #24Intermediary (Mediator)

Data Source

PatentUS12462248B2Payment vehicle with on and off function

Publication Date: 2025.11.04 WELLS FARGO BANK NA

AI summary

A computer-based network system and method for using a payment vehicle having an on and off function. The system comprises a payment vehicle comprising an on and off function to enable or to disable the payment vehicle in the computer-based network for processing an electronic payment transaction, a holder of the payment vehicle, and a computer payment network wherein the computer payment network comprises a transaction engine for enabling or for disabling the payment vehicle at a request of the holder of the payment vehicle.