Passphrase Account Identifier for Cardless Payment Transactions
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Solution Overview
Problem
In online and face-to-face financial transactions, customers face inconvenience and errors due to the need to remember and recall 16-digit credit card numbers for multiple funding instruments, leading to cumbersome and inefficient payment processes.
Innovation Solution
A passphrase account identifier is introduced as a substitute for the credit card number, allowing users to easily remember and use a simpler alphanumeric combination for payment transactions, which is matched to the corresponding funding instrument number and account within the payment provider system for authorization.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If customers use traditional credit card numbers for payment transactions, then the funding instrument can be verified and authorized, but the process becomes cumbersome and error-prone due to the need to remember and recall 16-digit card numbers
Solution Approach 1:
The patent creates a simplified copy or representation of the credit card number called a 'passphrase account identifier'. This passphrase is an easier-to-remember alternative that maps to the actual card number through the payment provider system, allowing customers to use simple passphrases instead of complex 16-digit numbers while maintaining secure authorization
Solution Approach 2:
The payment provider system acts as an intermediary between the customer and the merchant system. It receives the passphrase from the customer, matches it to the corresponding funding instrument number, and completes the authorization process, thereby shielding the customer from dealing directly with complex card numbers
2Adaptability or versatility
If customers carry multiple funding instruments for different purchasing purposes, then various accounting needs can be satisfied, but the complexity of managing and recalling multiple card numbers increases
Solution Approach 1:
The payment provider system provides a universal interface for managing multiple funding instruments. Instead of requiring separate management systems for each card type (personal, business, merchant-specific), the system handles all passphrases and their corresponding funding instruments through a single unified mechanism, making the system multi-functional and adaptable to various accounting needs
3Productivity
If customers manually recall and communicate credit card numbers, then the transaction can be completed, but errors occur due to difficulty in remembering and accurately communicating the numbers
Solution Approach 1:
The passphrase serves as an accurate and error-free copy or representation of the actual card number. Since passphrases are designed to be memorable and unique, they eliminate the errors associated with misremembering or miscommunicating complex card numbers, while the payment provider system ensures the correct funding instrument is identified
Data Source
AI summary
A system and method for facilitating a financial transaction over a network including use of a passphrase account identifier is described herein. In one embodiment, a system for facilitating a financial transaction over a network comprises a communication interface; and a payment provider system configured to receive via the communication interface a passphrase account identifier from a merchant system, match the passphrase account identifier to a corresponding funding instrument number of a corresponding funding instrument, communicate the corresponding funding instrument number to an issuer system, receive from the issuer system a notification indication of one of acceptance of the funding instrument or decline of the funding instrument, and communicate back to the merchant system the notification indication.