Portable Payment Account Number Decoupling Issuer Identification
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Solution Overview
Problem
The existing system of using a bank identification number (BIN) as a prefix to the primary account number (PAN) for payment transactions is inconvenient for consumers and inefficient, as it requires changes in account information when switching issuers or using new payment devices, leading to errors and increased data processing requirements.
Innovation Solution
Decoupling the BIN from the account identifier to generate a payment account number or device identifier, allowing the BIN to be provided separately or stored in a lookup table, enabling a portable and customizable account number that does not include issuer information, facilitating easier transaction processing and increased flexibility in payment products.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If the BIN is coupled to the account identifier to create a unique PAN, then the payment account number is unique and identifies the issuer, but the consumer must change account information when switching issuers or products, leading to inconvenience and errors
Solution Approach 1:
The patent segments the payment account number into two independent components: a portable account number (PAN) that remains constant for the consumer, and a separate issuer identifier (BIN) that identifies the current issuer. This segmentation allows the PAN to be reused across different issuers while the BIN changes with each issuer, resolving the contradiction between maintaining uniqueness and providing consumer convenience.
Solution Approach 2:
The patent extracts the issuer identifier (BIN) from the traditional combined PAN structure, creating a separate field for issuer identification. This extraction allows the account number portion to be independent of the issuer, enabling consumers to retain their account numbers when switching issuers while still maintaining unique identification through the separate BIN field.
2Productivity
If the BIN is included in the PAN, then routing information is embedded in the account number, but data processing and storage requirements increase
Solution Approach 1:
The patent segments transaction data into separate fields: a compact portable account number for routing and identification, and a separate issuer identifier field. This segmentation reduces the processing burden by allowing systems to work with the shorter PAN for routing decisions while storing the full issuer information separately, thereby reducing overall data processing and storage requirements.
3Reliability
If the BIN is coupled to the account identifier, then issuer information is embedded in the account number, but the system lacks flexibility for new payment products and services
Solution Approach 1:
The patent segments the identification system into a consumer-specific portable account number and a separate issuer identifier. This segmentation enables greater versatility by allowing the same PAN to be used across multiple issuers and product types, while the separate BIN field maintains reliable issuer identification. This structure supports innovative payment products and cross-issuer services that would be difficult to implement with the traditional coupled structure.
Data Source
AI summary
A payment device for conducting a transaction is provided. The payment device includes a device substrate, a payment device identifier visibly located on the device substrate, and a data storage region contained on or within the payment device. The payment device identifier does not include information identifying an issuer for the payment device. The data storage region comprises a first data storage sub region containing data corresponding to the payment device identifier, and a second data storage sub region electronically isolated from the first data storage sub region and containing data identifying the issuer of the payment device.