Payment Token System for Secure QR Code Transactions
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Solution Overview
Problem
Current payment systems are expensive and risky due to high transaction processing costs and the potential for repudiated payments and insufficient funds, particularly with bankcard and direct debit methods.
Innovation Solution
A system and method for electronic transaction processing that allows customers to make payments by scanning 2D barcodes or QR codes using a mobile device, which encrypts code data and decrypts it on a server to facilitate secure, non-repudiable credit transfers, reducing the need for costly bankcard and check-processing operations.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If bankcard or direct debit payment methods are used, then payment processing is straightforward, but transaction processing costs increase significantly and risk of repudiated payments increases
Solution Approach 1:
The patent introduces a payment token as an intermediary element that replaces sensitive payment information (card numbers, account details) with a secure token. This token can be stored on the customer's device and used for multiple transactions without exposing actual payment credentials, thereby reducing both processing costs and repudiation risks while maintaining security
Solution Approach 2:
The system performs preliminary actions by storing payment tokens and authorization data in advance on the customer's device. This allows for instant payment processing without needing to contact the payment network for each transaction, reducing processing costs and enabling faster, more reliable payments that cannot be easily repudiated
2Reliability
If encrypted code data is transmitted to a server for decryption, then security is improved, but data processing time increases
Solution Approach 1:
The payment token and associated decryption keys are prepared and stored in advance on the customer's device in a secure enclave. When a transaction is initiated, the token is used locally without needing real-time server decryption, eliminating processing delays while maintaining security through pre-established cryptographic relationships
Data Source
AI summary
Various embodiments herein each include at least one of systems, methods, and software for electronic transaction processing. One embodiment includes a method that may be performed by a server includes maintaining a database of payee accounts. A payee account may include at least a payee identifier and a payee bank account identifier. This method further includes decrypting code data including at least a payee identifier received from a node over a network via a network interface. The method may then retrieve a payee bank account identifier from the database based on the decrypted payee identifier and transmit a form of the payee bank account identifier to the node over the network via the network interface device. Some such embodiments include a single server, which may actually be multiple servers operating jointly, that provide such services for multiple payees.