Single-Use Payment Token Lifecycle Management

Resolve Bottlenecks,
Find Innovative SolutionsGenerate Solutions

Solution Overview

Problem

The existing tokenization systems in payment ecosystems face challenges in managing the lifecycle of payment-enabled tokens, leading to potential unauthorized use and difficulties in delivering value-added services due to the lack of an aggregated view of transactions across multiple tokens linked to a single account number.

Innovation Solution

The implementation of a Payment Account Reference (PAR) value within the EMV framework, which assigns a 29-character identifier linking tokens back to the original account number, allowing for token deactivation and subsequent reactivation, enabling secure and automated management of token usage and auditing.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If tokenization is implemented to replace sensitive payment data with tokens, then security against data breaches is improved, but the risk of unauthorized token use and fraud remains

Engineering Contradiction:

Improvesecurity against data breachesVSAvoidunauthorized token use

Core Design Contradiction:

ReliabilityVSObject-affected harmful factors

Solution Approach 1:

The patent segments the token lifecycle into distinct states (active, deactivated, expired) and uses single-use tokens that are automatically deactivated after one transaction. This segmentation prevents reuse of compromised tokens while maintaining security benefits of tokenization.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The system dynamically manages token states through automated activation and deactivation based on transaction history and risk assessments. Tokens transition from active to deactivated states automatically, enabling adaptive security that responds to usage patterns without manual intervention.

Inventive Principle:

Principle #15Dynamics

2Ease of operation

If payment-enabled tokens are made reusable to facilitate multiple transactions, then convenience is improved, but the risk of fraud and unauthorized reuse increases

Engineering Contradiction:

Improvetransaction convenienceVSAvoidfraud risk

Core Design Contradiction:

Ease of operationVSObject-affected harmful factors

Solution Approach 1:

The patent extracts the reusability feature from tokens by implementing single-use tokens that are automatically deactivated after one transaction. This separates the convenience of easy token acquisition from the risk of reuse, as tokens are obtained conveniently but can only be used once.

Inventive Principle:

Principle #2Taking out (Extraction)

Solution Approach 2:

The system uses disposable single-use tokens that are automatically deactivated after one transaction. These short-lived tokens provide sufficient convenience for single transactions while eliminating the fraud risk associated with reusable tokens, as they cannot be exploited across multiple transactions.

Inventive Principle:

Principle #27Cheap short-living objects (Disposable)

3Adaptability or versatility

If multiple tokens are linked to a single account number to enable flexible payment options, then versatility is improved, but the difficulty of auditing and tracking transactions increases

Engineering Contradiction:

Improvepayment option flexibilityVSAvoidtransaction auditing complexity

Core Design Contradiction:

Adaptability or versatilityVSDifficulty of detecting and measuring

Solution Approach 1:

The patent introduces a token vault as an intermediary system that maintains the mapping between multiple tokens and a single account number. This mediator enables flexible payment options while simplifying auditing by centralizing the relationship management, allowing the system to track which tokens belong to which accounts without exposing the mapping to individual transactions.

Inventive Principle:

Principle #24Intermediary (Mediator)

4Reliability

If tokens are designed to be single-use to prevent fraud, then security is improved, but the complexity of managing token lifecycle and reactivation increases

Engineering Contradiction:

Improvefraud preventionVSAvoidtoken lifecycle management

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The system implements self-service token lifecycle management where tokens are automatically activated and deactivated based on predefined rules and transaction history. The token vault autonomously handles deactivation after single use and can reactivate tokens based on configured policies, eliminating the need for manual intervention and reducing operational complexity.

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

The patent uses parameter changes in token states (active/deactivated/expired) and timestamps to manage lifecycle complexity. By storing state information and using automated rules based on time and usage parameters, the system simplifies lifecycle management while maintaining fraud prevention capabilities.

Inventive Principle:

Principle #35Parameter changes

Data Source

PatentUS11715101B2Single-use payment tokens

Publication Date: 2023.08.01 MASTERCARD INT INC

AI summary

Provided are systems and methods for managing and implementing single-use payment-enabled tokens. In one example, a method may include distributing, via a server, a payment-enabled token to a payment application on a computing device, the payment-enabled token being mapped to a payment account of the payment application via a tokenization service, detecting use of the payment-enabled token as a payment via the payment application, and in response to the detecting, deactivating the payment-enabled token at the server and storing an identifier of the payment-enabled token and an additional data element of the payment-enabled token that identifies the payment account together within a data structure of the server.