Tokenized Payment Storage for Repeat Transaction Efficiency
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Solution Overview
Problem
Existing point-of-sale (POS) systems require frequent reading and transmission of sensitive payment information during transactions, which can be inefficient and insecure, especially when dealing with repeat customers whose transaction patterns indicate a need for stored payment information.
Innovation Solution
A system where a payment service analyzes transaction data to determine when to request customers to store their payment information with the merchant, allowing subsequent transactions to use stored data without re-reading sensitive information, enhancing security and efficiency.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If the POS device reads and transmits sensitive payment information during each transaction, then the transaction processing is straightforward and reliable, but the security risk increases and processing efficiency decreases for repeat customers
Solution Approach 1:
The system performs preliminary actions by storing payment information securely after the first transaction and obtaining customer consent. For subsequent transactions, the stored information is used without re-reading the physical card, thereby maintaining reliability while reducing security risks associated with frequent handling of sensitive data
Solution Approach 2:
The system creates a digital copy of the payment information (tokenized data) that can be used for subsequent transactions without needing to read the original physical card. This copy maintains transaction reliability while eliminating the security risks of repeatedly exposing the actual payment card data
2Productivity
If the POS device reads payment information during each transaction, then the system maintains high security by not storing sensitive data, but the processing efficiency and customer convenience decrease
Solution Approach 1:
The system performs the security-sensitive action of reading and verifying payment information only once during the first transaction. After obtaining customer consent, it stores a tokenized version for future use, thereby improving processing efficiency for repeat customers while minimizing exposure of sensitive information
Solution Approach 2:
The system uses a tokenized copy of the payment information instead of the actual sensitive data for subsequent transactions. This copy enables efficient processing while preventing exposure of the real payment card information, thus resolving the contradiction between efficiency and security
3Productivity
If the system stores payment information for future transactions, then processing efficiency improves for repeat customers, but the complexity of the system increases
Solution Approach 1:
The system introduces a payment service intermediary that handles the complexity of storing, managing, and retrieving payment information. This intermediary layer absorbs the system complexity while providing simplified interfaces to the POS device, enabling efficient repeat customer transactions without burdening the core POS system
Solution Approach 2:
The system uses tokenized copies of payment information stored in a secure database rather than storing complete sensitive data locally at the POS device. This approach distributes system complexity to specialized infrastructure while keeping the POS device simple, thereby improving repeat customer efficiency without significantly increasing local device complexity
Data Source
AI summary
Techniques for improving card on file transactions are described. Transaction data associated with previous transaction(s) between a customer and merchant(s) can be received. Payment information associated with a payment instrument of the customer authorizable for a cost of a transaction between the customer and a merchant can be received. A suggestion that the payment information be stored in association with the merchant can be sent to the merchant device and/or a customer device, wherein the suggestion is based on the transaction data and/or information associated with the transaction. An instruction to store the payment information in association with the merchant can be received and, based at least partly on receiving the instruction, the payment information can be stored in association the merchant, wherein storing the payment information allows the merchant to use the payment information for subsequent transactions without again reading or receiving the payment information.