Rewards Management System for Tokenized Payment Transactions
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Solution Overview
Problem
Current rewards systems fail to effectively retrieve and apply rewards information during tokenized electronic transactions, as the BIN range differentiation is lost when payment data is tokenized, preventing accurate issuer differentiation and rewards application.
Innovation Solution
A rewards management system that processes tokenization data to instantly retrieve and apply rewards information by using the first 8 digits of the tokenized PAN, allowing identification of the issuer and associated rewards, even in tokenized transactions, through a server communication network.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If tokenization is used to secure payment data, then security against fraud is improved, but the ability to differentiate card issuers using BIN ranges is lost
Solution Approach 1:
The patent segments the tokenized PAN into multiple parts: the first 8 digits (token BIN) are extracted and transmitted separately to the rewards management system, while the remaining digits are used for actual payment processing. This segmentation allows issuer identification to be preserved in a separate data stream without compromising the security of the full tokenized PAN.
Solution Approach 2:
The patent introduces an intermediary component (rewards management system) that receives the token BIN separately from the payment processing system. This intermediary acts as a mediator that can identify the issuer using the first 8 digits without having access to the complete tokenized PAN, thus maintaining both security and issuer identification capabilities.
2Measurement precision
If the first 6 digits of tokenized PAN are used for issuer identification, then issuer differentiation is possible, but accurate rewards retrieval fails because tokenization changes the BIN structure
Solution Approach 1:
The patent changes the parameter used for issuer identification from the conventional first 6 digits (BIN) to the first 8 digits of the tokenized PAN. This parameter change accommodates the structural modifications introduced by tokenization while maintaining the ability to accurately identify the card issuer and retrieve the correct rewards information.
3Reliability
If tokenized payment credentials are used, then security is improved, but the current rewards system cannot differentiate card issuers based on token structure
Solution Approach 1:
The patent makes the rewards management system universal by enabling it to handle both traditional PAN-based identification and tokenized PAN-based identification. The system can process the first 8 digits of either format to identify the issuer, making it compatible with both conventional and tokenized payment systems.
Solution Approach 2:
The patent adds another dimension to the rewards system by introducing a separate data transmission channel for the token BIN (first 8 digits). This dimensional separation allows the rewards system to operate independently from the payment processing system, enabling rewards functionality to work with tokenized credentials without interfering with security protocols.
Data Source
AI summary
Methods and systems for processing an electronic transaction between a cardholder and a merchant using a payment card carried out over a payment network are provided. An example method comprises receiving tokenization data including identification data associated with a token representing payment data of the payment card, and issuer data indicative of rewards information associated with the payment card; receiving a rewards inquiry request from a merchant terminal, where the rewards inquiry request comprises the token and where the token is associated with the payment data for making the transaction; determining the rewards information associated with the rewards inquiry request using the tokenization data; and transmitting the rewards information to the merchant terminal for preparation of a transaction request to an acquirer using the rewards information.