Intermediary Node Anonymizing Payment Transactions
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Current computer communication networks do not enable merchants to avoid handling or storing sensitive payment information and do not allow them to prioritize payment methods, posing challenges in monetary exchange transactions.
Innovation Solution
A system and method that utilize an intermediary node to receive and anonymize transactions by extracting relevant data elements and condition elements from databases, allowing for the transfer of anonymized transactions between nodes without requiring the merchant to handle sensitive user information and enabling prioritization of payment methods.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If the merchant handles and stores payment information directly, then the transaction processing is straightforward, but the merchant bears regulatory burdens and security risks
Solution Approach 1:
The patent introduces an intermediary node that acts as a mediator between the merchant and the payment network. This intermediary receives anonymized transaction data from the merchant, performs the necessary payment processing, and returns results without the merchant ever handling sensitive payment information. The intermediary effectively transfers the regulatory burden and security risk away from the merchant while maintaining transaction processing simplicity.
Solution Approach 2:
The patent extracts sensitive payment information from the merchant's system entirely. By using anonymized transaction data that excludes card numbers and other sensitive details, the system removes the harmful element (payment information) from the merchant's environment, eliminating regulatory compliance requirements and security risks associated with storing and processing such data.
2Reliability
If the merchant must communicate with an acquirer, then payment authorization can be obtained, but the merchant loses flexibility in prioritizing payment methods
Solution Approach 1:
The patent enables the merchant to perform preliminary actions by including multiple payment methods and their prioritization preferences in the anonymized transaction data sent to the intermediary. The intermediary then processes these preferences before contacting the payment network, allowing the merchant to establish payment method priorities in advance without compromising the reliability of payment authorization.
Solution Approach 2:
The system introduces dynamics by allowing the merchant to specify different payment methods in different priorities within the transaction data. The intermediary dynamically selects which payment method to use based on these preferences and the response from the payment network, providing adaptability while maintaining reliable authorization through the structured communication protocol.
3Productivity
If the merchant stores payment information, then future transactions can be processed faster, but the merchant incurs security costs and regulatory compliance requirements
Solution Approach 1:
The intermediary node serves as a mediator that handles the complex security and compliance requirements on behalf of the merchant. The merchant simply sends anonymized transaction data to the intermediary, which then manages all security-related operations including communication with payment networks, authorization, and data protection, eliminating the need for the merchant to build and maintain security infrastructure.
Solution Approach 2:
The system uses anonymized copies of transaction data that contain all necessary information for processing (amount, recipient, payment method preference) without including sensitive payment information. These anonymized copies enable the merchant to process transactions without storing any actual payment data, achieving productivity without the associated security and compliance burdens.
Data Source
AI summary
A system and a method of transferring a transaction between a source node and a destination node of a computer network, by at least one processor of an intermediary node may include: receiving a request to transfer the transaction from the source node to the destination node; extracting from the transaction request at least one data element; obtaining from a first database at least one condition element; anonymizing the transaction; and transferring the anonymized transaction from the intermediary node to the destination node, based on at least one of: the at least one condition element and the at least one extracted data element.