Payment Token Service Using Common IDs for Fraud Verification
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Existing payment systems require users to enter personal and financial information repeatedly, which can be cumbersome and insecure, especially in online transactions, and lack efficient fraud prevention mechanisms.
Innovation Solution
A token service provider system uses a common identifier (ID) based on social media and user environment data to facilitate secure and seamless transactions, issuing tokens with customizable scopes and parameters for various environments, and performs risk analysis using a social graph to verify transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional authentication methods (login ID and password) are used, then user verification is achieved, but security risks and information exposure increase
Solution Approach 1:
The patent extracts sensitive authentication information (login ID, password, personal data) from the transaction flow and stores it securely in a token service provider's database. Only tokenized representations are transmitted during transactions, removing sensitive data from vulnerable transmission paths while maintaining authentication reliability.
Solution Approach 2:
The patent introduces a token service provider as an intermediary between the user and merchant systems. This intermediary holds the sensitive information securely and provides tokenized representations for transaction processing, eliminating direct exposure of sensitive data while ensuring reliable user verification.
2Reliability
If comprehensive user information is collected for transaction verification, then fraud detection capability improves, but user privacy and data protection requirements become more challenging
Solution Approach 1:
The patent applies different levels of information disclosure to different parties: the token service provider has access to comprehensive user information for fraud detection, while merchants receive only tokenized representations with limited scope. This local differentiation maintains fraud detection accuracy while protecting user privacy from unnecessary exposure.
Solution Approach 2:
The patent transforms user information from its original sensitive form into tokenized representations with modified parameters. The tokens contain only the necessary transactional attributes (validity, scope, amount) while removing personally identifiable information, thereby maintaining fraud detection capability while protecting privacy.
3Reliability
If tokenization is implemented to protect sensitive data, then security is improved, but system complexity and infrastructure requirements increase
Solution Approach 1:
The patent designs the token service provider as a universal system that handles multiple functions: secure storage of sensitive data, generation of tokenized representations, validation of tokens during transactions, and management of token lifecycles. This multi-functional approach consolidates complexity into a single infrastructure component rather than distributing it across multiple systems.
Solution Approach 2:
The token service provider automatically manages the entire tokenization lifecycle including generation, storage, validation, and expiration of tokens without requiring manual intervention. The system self-regulates token validity periods, automatically revokes expired tokens, and manages security credentials, reducing operational complexity while maintaining robust data protection.
Data Source
AI summary
A method for verifying transactions is discussed. The method includes receiving a transaction request for performing a transaction between a user account and a merchant account. The method includes determining, based on authentication of the user account, a common identifier associated with the user account, the common identifier indicating the user account being authorized for use at a plurality of merchant accounts including the merchant account. The method includes determining a payment token for performing the transaction, the determining the payment token based on the common identifier and a user associated with the user account. The method also includes providing the payment token for completing the transaction.