Tokenized Payment Pre-Authorization Without Credential Detokenization

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Solution Overview

Problem

Current payment processing systems using tokenized credentials are vulnerable to theft and interception of real payment credentials due to the involvement of token service providers, compromising consumer privacy and security.

Innovation Solution

A system where each entity involved in a payment transaction verifies the authenticity of the preceding entity by using unique identifiers and digital signatures, with all transaction data stored on a distributed ledger like a blockchain, ensuring that only the issuer knows the actual payment credentials, thus enhancing security without sacrificing convenience.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If payment tokens are distributed by token service providers, then consumers can use digitized payment instruments for convenience, but the real payment credentials may be stolen or intercepted during the detokenization process

Engineering Contradiction:

Improveconvenience of using digitized payment instrumentsVSAvoidsecurity of real payment credentials

Core Design Contradiction:

Ease of operationVSReliability

Solution Approach 1:

The patent extracts the token service provider from the payment processing flow entirely. Instead of having a centralized provider that holds and detokenizes credentials, the system eliminates this intermediate step by allowing direct peer-to-peer token exchange between consumer and merchant, removing the vulnerability point where credentials could be stolen during detokenization

Inventive Principle:

Principle #2Taking out (Extraction)

Solution Approach 2:

The patent introduces a distributed ledger as an intermediary that enables trust between parties without requiring a centralized token service provider. The ledger maintains the mapping between tokens and credentials in a decentralized manner, allowing secure credential exchange without a single point of failure or vulnerability

Inventive Principle:

Principle #24Intermediary (Mediator)

2Ease of operation

If payment tokens are stored on mobile devices, then consumers have convenience and security, but the devices become targets for theft and interception

Engineering Contradiction:

Improveconvenience of storing payment tokens on devicesVSAvoidtheft and interception of payment credentials

Core Design Contradiction:

Ease of operationVSObject-affected harmful factors

Solution Approach 1:

The patent creates a distributed copy of the credential mapping across multiple nodes in the distributed ledger network. Instead of storing the master credential mapping in a single location that could be stolen, the system replicates this information across many nodes, making it impossible to intercept or steal the complete credential mapping from a single device

Inventive Principle:

Principle #26Copying

Solution Approach 2:

The patent moves the credential storage from a single-device dimension to a distributed network dimension. Rather than keeping all credential mappings on the consumer's mobile device, the system distributes this information across a network of nodes, adding a spatial dimension that prevents local theft and interception

Inventive Principle:

Principle #17Another dimension (Dimensionality change)

3Device complexity

If a centralized system processes payment transactions, then processing is simplified, but single point of failure increases vulnerability to credential theft

Engineering Contradiction:

Improvesimplicity of payment processing systemVSAvoidsecurity against credential theft

Core Design Contradiction:

Device complexityVSReliability

Solution Approach 1:

The patent segments the centralized processing function into distributed nodes across the network. Instead of one centralized system handling all payment processing, the workload is divided among multiple nodes that collectively maintain and process transactions, eliminating the single point of failure while maintaining processing functionality

Inventive Principle:

Principle #1Segmentation

Data Source

PatentUS20250348878A1Method and system for payment processing using distributed digitized surrogates

Publication Date: 2025.11.13 MASTERCARD INT INC

AI summary

A method for pre-authorization of a payment transaction with tokenized credentials includes: receiving a first data set signed with a first digital signature and including an acquirer identification value and a second data set; verifying the first digital signature using a first public key of a first cryptographic key pair associated with the acquirer identification value; extracting, from the first data set in response to verification of the first digital signature, the second data set including a merchant identification value and a third data set; extracting, from the second data set, the third data set including an issuer identification value and transaction data; identifying an issuing computing system based on the issuer identification value; and transmitting a fourth data set to the issuing computing system, the fourth data set including the first data set and a steward identification value.