Secure Online Transaction Processing System
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Solution Overview
Problem
Smaller online stores face high costs and compliance challenges with Payment Card Industry (PCI) standards when processing online transactions internally, and outsourcing to third-party payment processors leads to inconsistent user experiences and cumbersome integration with e-commerce components.
Innovation Solution
A method for securely processing online transactions by transmitting an encryption key to the merchant system, encrypting personal account data, and generating a transaction processing response, allowing for consistent branding and seamless integration with inventory management and accounting systems.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of manufacture
If smaller online stores outsource payment processing to third parties, then security compliance costs are reduced, but user experience consistency and branding are lost
Solution Approach 1:
The patent introduces a payment processing system that acts as an intermediary between the customer and the merchant system. This intermediary handles the sensitive payment processing while the merchant maintains control over the customer interface and branding. The system allows the merchant to embed the payment form within their own website, thus maintaining user experience consistency while offloading the security compliance burden to the specialized payment processing system.
Solution Approach 2:
The payment processing function is segmented into separate components: the merchant system handles customer interface and branding, while the payment processing system handles secure transaction processing. This segmentation allows each component to optimize for its specific function - the merchant for user experience and branding consistency, and the payment processor for security and compliance.
2Ease of operation
If smaller online stores handle payment processing internally, then user experience and branding consistency are improved, but infrastructure costs and PCI compliance requirements increase
Solution Approach 1:
The payment processing system serves as a mediator that provides secure payment processing infrastructure as a service. Instead of requiring the merchant to build and maintain their own secure infrastructure, the system provides this capability through the intermediary payment processor, reducing infrastructure complexity while maintaining user experience consistency through embedded payment forms.
3Device complexity
If third party payment processors are used, then infrastructure costs are reduced, but integration with e-commerce components becomes cumbersome
Solution Approach 1:
The patent merges the payment processing functionality with the merchant's existing e-commerce platform by embedding the payment form within the merchant's website. This integration approach combines the payment processing system with the merchant's existing infrastructure, making the integration seamless and eliminating the need for complex external redirects and separate processing systems.
Applied Scientific Principles
This section explains which scientific principles are used to turn an abstract innovation direction into a practical engineering solution.
Function Achieved in This Case
This method enhances the security and user experience of online transactions while reducing costs for smaller merchants by maintaining control over the transaction process and ensuring compliance with PCI standards, while maintaining consistent branding and integration with e-commerce components.
Implementation Method 1
transmitting an encryption key to the merchant system in response to the received authentication request. The encryption key may correspond to the transaction identifier. There may also be a step of receiving, from a customer system, the personal account data associated with the customer. The personal account data may be encrypted with the encryption key.
Data Source
AI summary
Various methods for securely processing an online transaction between a customer and a merchant are disclosed. In one method, an authentication credentials request that includes a transaction identifier is received from a merchant system. In response, an encryption key is transmitted to the merchant system. From a customer system, the personal account data associated with the customer is received, which is encrypted with the encryption key. A transaction processing request from the merchant system prompts the generating of a transaction processing response based upon its execution.