Instant Credit Provisioning via Virtual Card Issuance
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Solution Overview
Problem
Traditional credit card interactions require a physical card to be received before transactions can occur, and new credit applications often result in initial usage only, with contingent liability for merchants, limiting immediate availability of credit for future transactions.
Innovation Solution
A system and method for providing credit application and provisioning operations that allow new lines of credit to be immediately available within ongoing online interactions, where users can apply for credit through a merchant platform, with instant approval and association of payment credentials with their user profile, enabling immediate use for current and future transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional credit card application process is used, then physical card can be issued, but credit is not immediately available for future transactions and contingent liability remains
Solution Approach 1:
The system performs preliminary credit approval and virtual card issuance during the online transaction process itself, before the customer would traditionally need to receive and activate a physical card. The credit line is pre-established and made immediately available for both current and future transactions, eliminating the time delay between application and usability.
Solution Approach 2:
The patent uses virtual card numbers instead of physical cards. The system generates virtual card credentials that can be immediately used in online transactions, replacing the need for physical card receipt, mailing, and activation. This virtual copy approach enables immediate credit availability without physical delivery delays.
2Productivity
If new credit account is created during transaction, then immediate credit availability is achieved, but system complexity increases
Solution Approach 1:
The system introduces a credit application service as an intermediary component that handles the complex credit assessment and virtual card generation processes. This intermediary service integrates with the existing e-commerce platform, allowing credit accounts to be created during transactions without significantly increasing the visible system complexity to the user or requiring major architectural changes to the core transaction processing system.
3Reliability
If physical card receipt is required, then traditional credit card process is maintained, but transaction delays occur
Solution Approach 1:
The system replaces physical cards with virtual card numbers that can be immediately generated and used in online transactions. The virtual card credentials are created during the credit application process itself, eliminating the time required for physical card manufacturing, mailing, and activation. Customers can complete transactions immediately without waiting for physical card receipt.
Data Source
AI summary
The present disclosure involves systems, software, and computer implemented methods for generating new credit accounts for immediate availability for use in current online transaction. One example process includes identifying a request to perform a credit application process associated with a particular user via a client application. A first signal can be transmitted that includes a redirect instruction for the client application to a credit application site to perform a credit application process. A second signal can be transmitted that includes a merchant-specific identifier of the particular user and a request to perform the credit application process. A third signal can be received from the credit application site that includes an approval, a payment credential associated with a newly created credit account, and the merchant-specific identifier of the particular user. The payment credential can be associated with the user profile of the user corresponding to the merchant-specific identifier.