Private Label Token Provisioning for Payment Networks
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Solution Overview
Problem
Complex electronic payment transactions involving special agreements or offers with customized financing terms and multiple merchants require off-network processing, which is expensive and complex, especially when multiple institutions are involved.
Innovation Solution
The implementation of a private label token provisioning system that allows for the activation and use of private label tokens within the normal electronic payment transaction processing network, enabling the conveyance of promotional credit terms and interchange arrangements without off-network processing by mapping primary account numbers to token account ranges and provisioning tokens at multiple levels based on product characteristics.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If off-network processing is used for complex transactions with customized financing terms, then specialized processing capability is achieved, but processing cost and system complexity increase
Solution Approach 1:
The patent segments complex customized financing terms into standardized token types with predefined characteristics. Each token represents a specific financing arrangement (e.g., promotional terms, interchange rates) that can be independently configured and combined, allowing complex transactions to be built from modular components rather than requiring custom processing logic for each transaction.
Solution Approach 2:
The patent introduces tokens as intermediary objects between the transaction parties and the processing network. These tokens carry encoded financing terms and instructions through the standard network infrastructure, enabling specialized processing without requiring the network itself to be customized. The tokens act as carriers that translate complex agreements into standardized data structures.
2Adaptability or versatility
If off-network processing is used for transactions involving multiple merchants or institutions, then specialized agreement handling is achieved, but processing cost increases
Solution Approach 1:
The patent creates a universal token framework that can handle multiple types of agreements and financing terms through a single standardized mechanism. The same token infrastructure supports promotional financing, interchange arrangements, and multi-party agreements, eliminating the need for separate processing systems for each agreement type and reducing overall processing costs.
Solution Approach 2:
The patent enables flexible configuration of token parameters to accommodate different agreement terms without changing the underlying processing system. Financing rates, promotional terms, and other agreement-specific parameters can be adjusted by modifying token attributes rather than requiring custom processing logic, allowing cost-effective handling of diverse agreements.
3Productivity
If standard network flow is used for complex transactions, then processing efficiency is improved, but capability to handle customized financing terms is limited
Solution Approach 1:
The patent performs preliminary configuration of financing terms during token creation and validation phases, before the actual transaction processing. Complex financing arrangements are pre-validated and encoded into tokens with predefined rules, allowing the standard network to process transactions efficiently without real-time calculation or custom logic execution.
Solution Approach 2:
The patent uses token templates and patterns that can be replicated and reused across multiple transactions. Once a financing arrangement is validated and encoded in a token, the same token structure can be copied and applied to similar transactions, maintaining processing efficiency while handling customized terms through standardized patterns rather than custom code.
Data Source
AI summary
Embodiments include apparatuses, methods, and systems for an example token provisioning process. In embodiments, a server computer device may receive over a payment transactions network, a request from an issuer for a private label (PL) token associated with a primary account number (PAN) of a payment card and a partnership offer between a partner merchant and the issuer. In embodiments, the server computer device, may generate and/or activate the PL token. In embodiments, the PL token is provisioned at a first level according to, at least, product characteristics associated with the PAN and at a second level according to, at least, product characteristics associated with the partnership offer. Other embodiments may also be described and claimed.