Push Payment Decision Routing With Tokenized Rule Evaluation
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Solution Overview
Problem
Conventional payment processors face challenges in meeting regulatory requirements for sophisticated authentication and encryption to combat fraud while ensuring secure and efficient global fund routing for millions of users with minimal inconvenience.
Innovation Solution
Implementing a payment processor with enhanced push payment decision routing capabilities, utilizing software-configured computerized systems to securely route payments through tokenization and single-use tokens, ensuring that sensitive information is never exposed to merchant servers.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If sophisticated authentication and encryption are implemented to combat fraud, then security and compliance are improved, but system complexity and processing time increase
Solution Approach 1:
The patent introduces a payment rules engine as an intermediary component that sits between the payment processing system and regulatory requirements. This engine evaluates payment transactions against stored payment rules and determines compliance without requiring complex authentication protocols for each transaction. The rules engine mediates between security needs and processing efficiency by providing a centralized compliance determination mechanism.
Solution Approach 2:
The system performs preliminary actions by pre-storing payment rules and compliance criteria in the payment rules engine before transactions occur. Regulatory requirements and authentication protocols are configured in advance, allowing the system to quickly evaluate transactions against predetermined rules rather than implementing complex real-time authentication and encryption protocols for each payment.
2Reliability
If sophisticated authentication and encryption are implemented to combat fraud, then security and compliance are improved, but processing speed and efficiency decrease
Solution Approach 1:
The payment rules engine serves as a mediator that simplifies compliance checking. Instead of implementing multiple layers of authentication and encryption that slow down processing, the system uses the rules engine to quickly evaluate transactions against stored payment rules, maintaining security requirements while improving processing speed through efficient rule-based evaluation.
Solution Approach 2:
The system changes the parameter of compliance verification from complex authentication protocols to simplified rule evaluation. By transforming security checks into parameter-based rule comparisons (evaluating transaction characteristics against stored payment rules), the system maintains security standards while significantly improving processing efficiency.
3Reliability
If tokenization and single-use tokens are used to protect sensitive information, then information security is improved, but system complexity increases
Solution Approach 1:
The patent extracts sensitive information from the payment processing flow by using tokenization. Payment card information is replaced with tokens that have no intrinsic value outside the specific transaction context. This extraction of sensitive data eliminates the need for complex encryption and key management systems while maintaining information security through the use of single-use tokens.
Data Source
AI summary
In an example embodiment, a method for push payment decision routing in relation to a transaction is provided. An example method comprises issuing a virtual payment identifier to a mobile device and receiving payment rules from a mobile device. The user-defined rules include parameters for invoking at least one push payment to be made via the virtual payment identifier for the transaction. Instructions to implement or pay for the transaction as a pull payment are received and, based on the rules, the transaction is completed or paid for a push payment.