Payment Transaction Authorization via Account Server
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Solution Overview
Problem
Conventional online payment processing systems face limitations in scalability, user friendliness, and security, particularly due to the need for multiple payment service providers (PSPs) handling different interfaces and data formats, which restricts interaction between merchants and card issuers and complicates customer support and conflict resolution.
Innovation Solution
A method and system that initiates a secure communication channel between a user interface and an account server, allowing direct processing of payment transactions from a user's financial account, with the account server linking purchase information to the user profile and requesting authentication and confirmation before submitting data to a payment service provider for processing, thereby reducing reliance on PSPs for payment details and enhancing data handling and security.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If all transaction information is routed through the PSP, then payment processing is standardized, but interaction between merchant and card issuer is limited and scalability is restricted
Solution Approach 1:
The patent introduces a new intermediary component (the account server or direct communication interface) that enables the merchant to communicate directly with the card issuer, bypassing the mandatory routing through the PSP. This allows transaction information to flow directly between merchant and card issuer while the PSP still handles payment processing, thus improving interaction capability without completely restructuring the system architecture.
2Adaptability or versatility
If multiple PSPs with different interfaces are used, then payment options are diverse, but data handling and formatting differ causing display issues
Solution Approach 1:
The patent implements a universal interface standard that allows the system to work with multiple PSPs while maintaining consistent data handling. The direct communication path between merchant and card issuer uses standardized data formats and interfaces, ensuring that address information and other transaction data are displayed correctly regardless of which PSP is used for payment processing.
3Ease of operation
If databases are maintained at every instance (merchant, PSP, card issuer), then data accessibility is improved, but system scalability is limited
Solution Approach 1:
The patent extracts the need for redundant databases at every instance by implementing direct communication between merchant and card issuer. Transaction information is transmitted directly without being stored in multiple distributed databases, thereby improving system scalability while maintaining data accessibility through the direct communication channel.
4Productivity
If direct communication between merchant and card issuer is enabled, then scalability and customer service are improved, but security requirements increase
Solution Approach 1:
The patent implements preliminary authentication and authorization steps before enabling direct communication between merchant and card issuer. Security protocols, digital certificates, and access controls are established in advance to ensure that direct communication meets security standards while enabling improved scalability and customer service capabilities.
Data Source
AI summary
A method for authorizing and processing payment transactions over a network, the method comprising the steps of initiating, responsive to a user payment request to process a payment for a purchase on a merchants web site, a user interface, establishing a secure communication channel between the interface and an account server, the account server having stored a profile of an registered user, submitting, by the user interface, purchase information of the purchase order to the account server, requesting, by the account server through the user interface, authentication of the user, linking, at the account server, purchase information to the user profile, requesting, through the user interface, purchase confirmation by the user, requesting, by the user interface, a checkout reference for the confirmed purchase order from the account server, submitting, at least part of the purchase information and the checkout reference to a payment service provider to process the transaction.