Multi-token Payment Processing for Routing Flexibility
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Solution Overview
Problem
Merchants face challenges in minimizing transaction costs for online purchase card transactions due to restrictive processing fees and lack of control over payment routing, which limits their ability to optimize payment processing and maximize profits.
Innovation Solution
The system allows merchants to obtain and manage both primary and secondary tokens for a purchase card, enabling them to route transactions through alternative networks, such as Pulse, while maintaining compliance with regulatory standards, thereby providing greater control over payment processing and cost optimization.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If merchants use primary tokens from global front-of-card brands, then payment processing is simplified, but routing flexibility is restricted
Solution Approach 1:
The patent segments the token system into primary tokens (from global front-of-card brands) and secondary tokens (from local back-of-card brands). This segmentation allows merchants to hold both types of tokens and selectively route transactions to different networks based on cost and flexibility requirements, resolving the contradiction between processing simplicity and routing flexibility.
Solution Approach 2:
The patent introduces secondary tokens as intermediary elements that bridge the gap between primary tokens and alternative payment networks. These secondary tokens enable merchants to route transactions to alternate networks (e.g., Pulse) while maintaining compatibility with the existing primary token infrastructure, thus preserving ease of operation while enhancing routing flexibility.
2Loss of energy
If merchants pay different fees based on bank issuing the debit card, then transaction costs vary, but cost predictability decreases
Solution Approach 1:
The patent implements dynamic routing decisions where merchants can select between primary and secondary tokens based on real-time cost conditions. The system allows flexible switching between different payment networks (Visa, Mastercard, Pulse) depending on interchange fee structures, enabling cost optimization while maintaining predictability through structured routing preferences.
Solution Approach 2:
The patent changes the parameter of token selection based on cost conditions. By allowing merchants to configure routing preferences and switch between primary and secondary tokens depending on fee structures, the system achieves both cost reduction and cost predictability through standardized routing decision parameters.
3Reliability
If merchants store network-based tokens instead of actual card numbers, then security is improved, but routing control is lost
Solution Approach 1:
The patent segments token storage into separate primary token fields and secondary token fields within the merchant's database. This segmentation maintains security by storing network-based tokens instead of actual card numbers, while simultaneously preserving routing control by organizing tokens in a structured manner that enables selective routing to different networks based on merchant preferences.
Solution Approach 2:
The patent creates copies of card data in the form of secondary tokens that replicate the functionality of primary tokens but enable alternative routing. These secondary tokens are generated by token service providers and stored alongside primary tokens, allowing merchants to maintain security through tokenization while regaining routing control through the copied token structures.
4Productivity
If merchants cannot establish per-transaction routing preferences, then processing is simplified, but profit optimization is limited
Solution Approach 1:
The patent implements preliminary action by having merchants configure routing preferences and establish token routing rules in advance. Merchants can pre-define which networks they prefer and set up cost-based routing strategies before transactions occur. This preliminary configuration enables efficient per-transaction processing while optimizing profits through structured routing decisions without requiring complex real-time calculations.
Data Source
AI summary
Systems, methods, and software are disclosed for provisioning tokens in a networked computing environment including merchants participating in payment networks. The method includes receiving, by a merchant processor, card account data of a purchase card from a cardholder. The method includes determining, by the merchant processor, that the card account data includes a multi-token enabled BIN. The method includes, in response to determining that the card account data includes the multi-token enabled BIN, receiving and storing, by the merchant processor and in a memory of the merchant, respectively, a primary token associated with a front-of-card brand of the purchase card. The method includes, in response to receiving the primary token, transmitting, by the merchant processor, a request for a secondary token. The method includes receiving and storing, by the merchant processor and in the merchant memory, respectively, the secondary token simultaneously with storing the primary token.