Merchant Universal Payment Identifier for Fraud Reduction
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Solution Overview
Problem
Current transaction systems lack a deterministic understanding of a merchant's identity in remote commerce transactions, leading to potential fraud and security issues, especially since merchant identifiers are often fragmented across different payment networks.
Innovation Solution
The introduction of a universal merchant identifier, known as the Merchant Universal Payment Identifier (MuPi), which is validated and used to securely authenticate merchants across multiple payment networks, enhancing transaction security and reducing fraud.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a universal merchant identifier (MuPi) is implemented across multiple payment networks, then transaction security and merchant identity verification are improved, but system complexity and implementation difficulty increase
Solution Approach 1:
The MuPi is designed as a universal identifier that functions across multiple payment networks (Visa, Mastercard, American Express, etc.), replacing the need for separate merchant identifiers for each network. This multi-functional approach improves transaction security through consistent identity verification while the standardized structure keeps implementation manageable.
Solution Approach 2:
The MuPi structure is segmented into distinct components: a network identifier portion and a merchant identifier portion. This segmentation allows the system to maintain compatibility with existing payment network infrastructures while introducing universal verification, thereby improving security without overwhelming system complexity.
2Adaptability or versatility
If separate merchant identifiers are used for different payment networks, then each network can maintain its own security standards, but merchant identity fragmentation and fraud risk increase
Solution Approach 1:
The MuPi serves multiple payment networks simultaneously with a single identifier, eliminating the fragmentation caused by separate identifiers. Each network can still process transactions through its own infrastructure while the unified MuPi ensures consistent merchant identity verification across all networks, reducing fraud risk.
3Productivity
If traditional merchant identifiers are used in remote commerce transactions, then transaction processing is simple, but fraud detection and merchant authentication are weakened
Solution Approach 1:
The MuPi enables preliminary merchant identity verification to occur before transaction processing. By validating the merchant's identity through the universal identifier in advance, the system maintains efficient transaction processing while significantly enhancing fraud detection and authentication capabilities.
Data Source
AI summary
Briefly, embodiments are directed to a system, method, and article for receiving an authorization request message for a remote commerce transaction with a particular merchant, where the authorization request message comprises a merchant universal payment identifier (MuPi). The MuPi may be extracted from the authorization request message. Validation information may be determined for the MuPi. A message may be transmitted to a payment network to enable authorization of the remote commerce transaction at least partially in response to the determination of the validation information.