Secure Payment Transactions via Direct Processor Communication
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Solution Overview
Problem
Traditional payment processing systems expose sensitive card information to merchants, creating security risks and vulnerabilities to data breaches and fraud, despite advancements in digital payment technologies.
Innovation Solution
A method and system for secure payment transactions that utilize direct processor communication, where a payment invoice is created and sent to the consumer in real-time via QR codes or NFC, allowing the consumer to process payments without sharing secret card details with the merchant.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional payment processing systems are used where card details are transmitted to merchants, then the transaction process is simple and direct, but security risks and vulnerability to data breaches increase significantly
Solution Approach 1:
The patent extracts the sensitive card information transmission step from the traditional payment flow. Instead of transmitting card details to the merchant, the system uses a tokenization approach where only a token is shared with the merchant, while the actual card information remains securely stored in the consumer's mobile device and payment processor system.
Solution Approach 2:
The patent introduces an intermediary tokenization layer between the consumer and merchant. The token acts as a mediator that enables payment authorization without exposing sensitive card information. The payment processor also serves as an intermediary that facilitates direct communication between the consumer's device and the processor, bypassing the merchant's system for sensitive data handling.
2Reliability
If tokenization is implemented to protect cardholder data, then security against data breaches is improved, but integration complexity and compatibility requirements increase
Solution Approach 1:
The patent implements a universal payment interface that works across multiple merchants and payment processors through standardized QR code and NFC protocols. The mobile payment application serves multiple functions including token storage, QR code generation/scanning, NFC communication, and transaction authorization, making the system adaptable to various payment scenarios without requiring separate implementations for each merchant.
3Ease of operation
If merchant devices are used to collect card details, then the transaction process is straightforward, but vulnerability to device compromise and data breaches increases
Solution Approach 1:
The patent removes the merchant device from the sensitive data collection process entirely. Instead of using the merchant device to capture card information, the system extracts this function and performs it directly between the consumer's mobile device and the payment processor through QR code scanning or NFC communication, eliminating the security vulnerability of merchant device compromise.
4Reliability
If direct processor communication is implemented, then card information security is improved, but the transaction process requires more advanced technologies
Solution Approach 1:
The patent replaces traditional mechanical card swiping or magnetic stripe reading with digital communication methods. QR codes use optical pattern recognition and NFC uses electromagnetic field communication to transmit payment tokens, substituting physical card handling with digital protocols that enable secure direct communication between the consumer's device and the payment processor.
Data Source
AI summary
A method and system for secure payment transactions using direct processor communication is provided. The method includes creating a payment invoice by the merchant using a payment facilitating application provided by a payment provider. Further, the method includes sending the payment invoice to a consumer in real-time by either scanning a payment invoice code or tapping a consumer's communication device to transfer the invoice data. Further, the method includes processing payment by the consumer using a payment application or manually entering card details on the consumer's device, without transmitting secret card details to the merchant. Furthermore, the method includes updating the merchant payment invoice automatically upon completion of the payment transaction.