Tokenized Account Matching for Anonymous Payment Transactions
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Solution Overview
Problem
Current payment systems lack a standardized method for consumers to select the most beneficial payment option at a merchant's point-of-sale, leading to inefficiencies and potential fraud, particularly in anonymous transactions, where personal identifiable information and financial data security are paramount.
Innovation Solution
A system and method that utilizes a mobile application to securely match tokenized accounts between anonymous parties, allowing users to select the optimal payment method based on incentives, rewards, and financial goals, with secure tokenization and PCI-compliant vaults for data protection, facilitating transactions through APIs and ACH partnerships.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If consumers use traditional payment methods with standardized security measures, then financial data security is maintained, but consumers cannot easily select the most beneficial payment option based on rewards and incentives
Solution Approach 1:
The patent introduces a payment optimization system that acts as an intermediary between the consumer and multiple payment methods. This system automatically evaluates available payment options, compares rewards and incentives, and selects the optimal payment method without requiring the consumer to manually navigate complex payment systems. The intermediary handles the complexity of comparing multiple payment accounts, their associated rewards programs, and real-time offer eligibility, thereby maintaining consumer simplicity while achieving payment optimization.
Solution Approach 2:
The system enables self-service by allowing consumers to link multiple payment accounts and preferences to their profile once, after which the system autonomously makes payment decisions. The consumer does not need to repeatedly evaluate payment options for each transaction; instead, the system automatically applies stored preferences, reward thresholds, and eligibility criteria to select the best payment method, freeing the consumer from ongoing complex decision-making.
2Productivity
If consumers manually evaluate multiple payment methods for each transaction, then they can maximize rewards, but this process consumes significant time and increases transaction complexity
Solution Approach 1:
The system performs preliminary action by pre-configuring consumer payment preferences, reward thresholds, and account hierarchies before transactions occur. During the actual payment process, the system quickly evaluates available options against these pre-established criteria and makes automated selections, eliminating the need for time-consuming manual evaluation at the point of sale. The heavy lifting of payment strategy formulation is completed in advance, enabling rapid transaction processing.
Solution Approach 2:
The system autonomously handles the entire payment selection process without requiring consumer intervention during transactions. It automatically retrieves available payment methods, evaluates rewards and incentives, checks eligibility criteria, and selects the optimal payment option, thereby eliminating the time consumers would otherwise spend manually comparing payment options while maximizing reward capture.
3Reliability
If the system stores detailed financial account information for matching, then optimal payment matching is achieved, but security risks and fraud exposure increase
Solution Approach 1:
The system extracts and stores only the essential elements needed for payment matching—such as account identifiers, merchant category preferences, and reward thresholds—while excluding sensitive financial details like account numbers, security codes, and personal identification information. This selective extraction maintains payment matching accuracy by preserving account identification capabilities while removing the sensitive data that would expose the system to fraud and data breaches.
Solution Approach 2:
The system functions as a secure intermediary that never stores complete financial account information. Instead, it maintains reference profiles that link consumer preferences to anonymized account identifiers, enabling optimal payment matching without retaining sensitive data. The system mediates between the consumer's payment accounts and merchants by translating preferences into selection decisions without exposing or storing vulnerable financial details, thereby reducing fraud risk while maintaining matching reliability.
Data Source
AI summary
Systems and methods that allow fulfilment of a transaction wherein a first party initiates the transaction, for example, at a point-of-sale device, and a tokenized account of an anonymous second party is identified as an account optimal for completing the transaction. The tokenized account of the anonymous second party is identified based on the transaction information. The tokenized account of the anonymous second party is matched to complete the transaction for reasons including a financial advantage or incentive associated with the tokenized account of the anonymous second party and not available to the first party at the time of the transaction. This financial advantage may be shared between both parties. The tokenized account of the anonymous second party may receive a financial benefit or other valuable consideration for completing the transaction. The tokenized account of the anonymous second party is reimbursed for costs associated with completing the transaction.