Limited-Use Token Management Server for Payment-Ledger Isolation
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Solution Overview
Problem
Existing stored-value card systems require merchants' point-of-sale terminals to access both stored-value and payment networks, compromising security and increasing network traffic and load on institution servers.
Innovation Solution
A token management server and network that processes limited-use tokens, allowing transactions via a payment network while confirming balance in a separate stored-value card ledger, enhancing security and reducing network load by isolating the payment and stored-value networks.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If the point-of-sale terminal accesses both stored-value card network and payment network, then the transaction can be processed, but the security is compromised and network load increases
Solution Approach 1:
A token management server is introduced as an intermediary between the payment network and the stored-value card network. The server receives token authorization requests from the payment network, validates them against stored-value card ledgers, and only initiates fund transfers when the balance is sufficient. This mediator approach allows the payment network to operate independently while maintaining security through centralized validation.
Solution Approach 2:
The system segments the transaction processing into distinct functional components: token authorization requests from the payment network, balance validation through the token management server, and fund transfer initiation only when balances are confirmed. This segmentation isolates the payment network from direct access to stored-value card networks, improving security while maintaining operational capability.
2Ease of operation
If the point-of-sale terminal accesses both stored-value card network and payment network, then the transaction can be processed, but the network traffic and load on institution servers increase
Solution Approach 1:
The token management server acts as an intermediary that consolidates balance validation operations. Instead of the payment network directly querying multiple stored-value card ledgers, all validation requests are routed through the token management server, which caches balance information and reduces redundant network traffic. This mediator approach significantly decreases the overall network load on institution servers.
Solution Approach 2:
The system performs preliminary balance validation through the token management server before initiating any fund transfers. By pre-validating balances and caching this information, the system avoids repeated network queries during transaction processing, thereby reducing real-time network traffic and server load while ensuring transaction capability remains available.
Data Source
AI summary
A computer server includes a memory and a data processor. The memory stores a token database and computer processing instructions. The computer processing instructions cause the data processor to receive from a POS station via a payment network a token authorization request that includes a limited-use token and an authorization value, locate in the token database a token record that stores a subledger identifier in association with the limited-use token, and extract the subledger identifier from the located token record. The computer processing instructions also cause the data processor to locate in a subledger database a subledger that is associated with the subledger identifier, confirm that a balance value associated with the located subledger is at least equal to the authorization value, and initiate a transfer from a pooling ledger, distinct from the subledger, of a transfer amount that is equal to the authorization value.