Proxy Payment Account Isolation for Fraud Reduction
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Solution Overview
Problem
Existing electronic payment systems are vulnerable to fraud, making it difficult for users to protect their accounts while allowing easy payment transactions, as compromised accounts can lead to inconvenience and difficulty in identifying the source of the breach.
Innovation Solution
The implementation of proxy payment accounts linked to a primary account, which are not directly linked to the method of payment, allowing for secure transactions with rules that limit usage, such as maximum transaction sizes and specific counterparty associations, enabling quick cancellation and replacement if compromised, and simplifying payment tracking.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If direct linking of payment accounts to methods of payment is used, then payment processing is simple and direct, but security is compromised and fraud vulnerability increases
Solution Approach 1:
The patent introduces a payment account as an intermediary layer between the user and the method of payment. This account acts as a buffer that receives credentials from the user and processes payments without exposing the underlying payment method details, thereby enhancing security while maintaining operational simplicity.
Solution Approach 2:
The payment system is segmented into distinct components: the user, the payment account, and the method of payment. This segmentation isolates the sensitive payment method information from direct exposure, allowing the payment account to manage credentials separately and reduce fraud vulnerability.
2Ease of operation
If a single payment account is used across multiple vendors, then payment convenience is improved, but fraud detection and account protection become difficult
Solution Approach 1:
The patent applies local quality by allowing different security rules and credential management policies for different vendors or transaction contexts. Each payment account can have customized credentials or restrictions tailored to specific vendors, enabling convenient multi-vendor usage while maintaining differentiated security controls for fraud detection.
3Adaptability or versatility
If credit card information is stored at multiple vendors, then payment flexibility is improved, but exposure to fraud and credential compromise increases
Solution Approach 1:
The patent implements copying by creating vendor-specific credentials that are linked to the user's payment account but are distinct from the actual payment method information. These copied credentials can be shared across multiple vendors without exposing the real payment card details, thereby maintaining payment flexibility while reducing fraud exposure.
Data Source
AI summary
An electronic device including an input/output interface operable to receive an input from a user and communicate an output to the user, a transceiver operable to electronically communicate with a computer network, a computer processor operable to execute instructions, and a memory storage operable to store the instructions, the memory storage further comprising a program module that is operable to: receive credentials for a proxy payment account, where the proxy payment account is linked to a primary payment account and not linked directly to a method of payment underlying the primary payment account, and make payment at a Point of Sale (POS) using the received credentials.