Payment Routing System for Multi-Merchant Tokenization
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Solution Overview
Problem
Current payment management systems face challenges in providing secure, seamless, and cost-effective transaction processing for brick and mortar merchants, particularly in supporting virtual electronic payments and traditional credit/debit card transactions, with limitations in multi-merchant tokenization and integration of new payment devices, leading to delayed support and increased security risks.
Innovation Solution
A distributed enhanced payment processing system with multi-merchant tokenization and arbitraged enhanced payment processing, which includes a merchant POS terminal system, a remote payment management system, and a remote virtual electronic payment entity system, enabling secure processing of virtual electronic payments alongside traditional credit and debit card payments, with features like tokenization, encryption, and flexible payment routing.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If current payment management systems are used, then traditional credit and debit card transactions can be processed, but support for new virtual electronic payment devices is delayed and security risks increase
Solution Approach 1:
The patent introduces a payment gateway as an intermediary component that sits between the POS terminal and multiple payment processors. This gateway acts as a mediator that can handle various virtual electronic payment devices without requiring changes to the core payment management system, thereby improving adaptability while maintaining security through centralized control and monitoring.
Solution Approach 2:
The system is segmented into multiple independent components: POS terminal, payment gateway, and multiple payment processors. This segmentation allows the payment gateway to independently support new virtual electronic payment devices while the core system maintains stability and security, resolving the contradiction between adaptability and reliability.
2Speed
If centralized payment processing is used, then transaction security can be maintained, but processing speed and cash flow acceleration are limited
Solution Approach 1:
The patent implements a dynamic payment routing system that can adaptively select between centralized and distributed processing modes based on transaction characteristics. High-value or complex transactions are routed through centralized secure processing, while standard transactions use faster distributed processing paths, optimizing speed without compromising security.
Solution Approach 2:
The system creates multiple copies of payment processing capabilities across different nodes in the distributed architecture. Each node can independently process transactions, eliminating single points of congestion and accelerating overall processing speed while maintaining centralized coordination for security.
3Productivity
If multiple merchants require individual account input, then each merchant can maintain control, but transaction efficiency and customer convenience decrease
Solution Approach 1:
The patent implements a universal tokenization system where a single tokenized account representation can be used across multiple merchants. The payment gateway manages the universal account input once, and this universal representation is then valid across the merchant network, dramatically improving both transaction efficiency and customer convenience while maintaining individual merchant control through permission-based access.
Data Source
AI summary
An arbitraged enhanced payment processing system in association with a distributed enhanced payment processing system includes a merchant point of sale (POS) terminal system and a remote payment management system. The POS terminal system initiates a transaction that includes receiving a payment amount, a purchaser account identifier, a virtual electronic payment indicator, and a merchant ID via a payment client. Subsequently, the POS terminal system outputs the transaction to the remote payment management system which generates a token for the transaction. The payment management system then provides the purchaser account identifier, a merchant account identifier, and the payment amount to a payment processing servicer. Upon receiving a payment processing servicer response, the payment management system outputs the response and token to the POS terminal system.