PIN Debit Transaction Processing via Credit Message Translation
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Solution Overview
Problem
There is no ubiquitous way to use a PIN debit card for Internet transactions, lacking a standardized system for processing debit transactions online, which increases the risk of identity theft and requires significant modifications to existing merchant payment processing systems.
Innovation Solution
A system and method that utilize a universal merchant platform to process debit transactions by receiving payment information, collecting authentication data, translating credit authorization messages to debit authorization messages, and transmitting them through a payment processor, enabling PIN debit card usage in e-commerce while minimizing changes to existing infrastructure and reducing fraud risks.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If PIN debit cards are used for Internet transactions without a standardized processing system, then consumers can make online purchases, but the risk of identity theft and fraud increases
Solution Approach 1:
The patent introduces a standardized processing system that acts as an intermediary between the consumer's PIN debit card and the merchant's payment system. This intermediary layer translates debit authorization requests into credit authorization formats, enabling secure e-commerce transactions while maintaining security protocols and reducing fraud risk through controlled information exchange.
Solution Approach 2:
The system changes the parameter format of authorization messages by translating debit-specific parameters into credit card-compatible parameters. This parameter transformation allows PIN debit cards to be used in e-commerce environments designed for credit cards, adapting the transaction type while maintaining security standards.
2Reliability
If a standardized system is implemented to enable PIN debit card usage online, then security and efficiency are improved, but modifications to existing merchant payment processing systems are required
Solution Approach 1:
The patent creates a universal processing platform that can handle multiple transaction types (debit and credit) through a single standardized interface. This multi-functional system reduces the need for merchants to implement separate processing systems for different card types, thereby improving security without proportionally increasing system complexity.
3Speed
If traditional debit card processing is used without translation, then processing speed is maintained, but compatibility with existing e-commerce infrastructure is lost
Solution Approach 1:
The system creates a translated copy of the debit authorization request in the format expected by credit card processing infrastructure. This copied and reformatted message can then be processed through existing e-commerce channels without requiring changes to the underlying processing speed or infrastructure, maintaining both compatibility and efficiency.
Data Source
AI summary
A system for processing a debit transaction between a merchant and a consumer. The system includes one or more processors programmed to receive payment information for the consumer, collect authentication data for the debit card from the consumer, transmit an alias account number unique to the debit transaction to the merchant, receive a credit authorization message including the alias account number from the merchant, translate the credit authorization message to a debit authorization message using the authentication data, and transmit the debit authorization message to a payment processor.