Single-Use Virtual Credit Card Authentication for B2B Payments
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Solution Overview
Problem
Current B2B payment systems that require separate pre-registration processes are inefficient for one-time suppliers or those paid infrequently, as they do not adequately manage security risks associated with authenticating recipients of virtual credit card numbers.
Innovation Solution
Implementing a system that authenticates suppliers on a per-purchase basis using specific data elements shared between the payer and supplier, generating a single-use virtual credit card number for each transaction, thereby minimizing the risk of unauthorized access.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a separate pre-registration process is used to authenticate suppliers before payment, then security risks are minimized for frequent suppliers, but the process becomes inefficient for one-time or infrequently paid suppliers
Solution Approach 1:
The authentication process is segmented from the payment process. Instead of requiring pre-registration before any payment, the system performs authentication at the moment of payment using purchase-specific data elements (authorization number, date of service, cost). This segmentation allows efficient one-time authentication without maintaining separate pre-registration infrastructure.
Solution Approach 2:
The system performs authentication action at the precise moment of payment rather than requiring preliminary pre-registration. The authentication uses purchase-specific data elements that are already available when the payment occurs, eliminating the need for prior registration while maintaining security.
2Reliability
If pre-registration is required for all suppliers, then security is improved for frequent suppliers, but complexity increases for one-time suppliers who never register
Solution Approach 1:
The authentication and payment processes are merged into a single integrated flow. The system combines authentication verification with the payment transaction itself, using purchase-specific data elements (authorization number, date of service, cost) that are naturally part of the payment process. This eliminates separate pre-registration steps and reduces overall system complexity.
3Ease of operation
If virtual credit card numbers are distributed to suppliers, then payment processing is simplified, but security risks increase if numbers are accessed by unauthorized users
Solution Approach 1:
The system generates single-use virtual credit card numbers that are valid only for one specific payment transaction. Each virtual card number is tied to specific purchase data elements (authorization number, date of service, cost) and cannot be reused or transferred to unauthorized users. After successful payment, the virtual card number becomes invalid, eliminating the risk of unauthorized access.
Solution Approach 2:
The virtual credit card numbers are customized for each specific purchase transaction rather than being generic. Each virtual card is associated with local, purchase-specific data elements (authorization number, date of service, cost), making it impossible for unauthorized users to misuse the card for different purchases or transactions.
Data Source
AI summary
An authentication and payment system for paying a supplier via a network may include a non-transitory computer readable storage medium having program logic stored thereon having a code for an authentication and payment application executable by a processor of a computing device. The code may be programmed to perform a step of receiving a first set of specific data elements from a payer regarding an authorized purchase by the payer from the supplier. The code may be further programed to receive a second set of specific data elements from the supplier. If the first set of specific data elements matches at least a portion of second set of specific data elements, the code may be programed to generate and send a single-use number to the supplier. The single-use number may be usable as a credit card number for only one purchase.