Trusted Beneficiary Payment Instrument Differentiation
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Solution Overview
Problem
Card-not-present transactions face challenges in user authentication due to increased user friction and network latency caused by the three-domain secure (3DS) protocol, which redirects users to a different network for authentication, leading to inconsistent user interfaces and potential network failures.
Innovation Solution
The introduction of user interfaces that differentiate payment instruments with whitelisted merchants or payees as trusted beneficiaries, allowing for exemptions from strong customer authentication (SCA) through a delegation exemption, reducing the need for additional authentication challenges and shifting liability to the payee entity, and utilizing an exemption selection engine to identify the most likely successful exemption for a payment transaction.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If the three-domain secure (3DS) protocol is used for authentication in card-not-present transactions, then authentication security is improved, but user friction and network latency increase
Solution Approach 1:
The system performs preliminary actions by pre-establishing trusted beneficiary relationships between payees and payment instruments before transactions occur. This allows the system to leverage pre-existing authentication data and trusted relationships during actual transactions, avoiding the need for real-time authentication challenges and reducing network latency while maintaining security.
Solution Approach 2:
The patent introduces an intermediary mechanism that allows payee entities to perform authentication challenges themselves rather than requiring direct involvement from payment issuers. This intermediary approach (delegation exemption) reduces the number of network hops and communication steps needed, thereby reducing latency while still providing strong authentication.
2Reliability
If the three-domain secure (3DS) protocol redirects users to a different network for authentication, then authentication security is improved, but user interface consistency deteriorates
Solution Approach 1:
The patent merges the authentication process with the existing payment user interface by allowing the payee entity to present their own customized UI for authentication challenges. This eliminates the need to redirect users to a separate payment issuer network, maintaining UI consistency while still providing secure authentication through the delegation exemption mechanism.
3Reliability
If strong customer authentication (SCA) is required for all card-not-present transactions, then fraud protection is improved, but payment processing speed deteriorates
Solution Approach 1:
The system applies local quality by differentiating authentication requirements based on the specific transaction context and trusted beneficiary relationships. For transactions involving pre-established trusted payees, the system uses lighter authentication mechanisms (delegation exemption) rather than full SCA, while maintaining strong fraud protection for high-risk transactions through traditional SCA processes.
Solution Approach 2:
The patent applies partial action by implementing authentication challenges only when necessary based on risk assessment and trusted beneficiary status. For low-risk transactions with trusted payees, the system uses partial authentication (delegation exemption) rather than full SCA, thereby improving processing speed while maintaining adequate fraud protection.
Data Source
AI summary
Disclosed are various embodiments for user interfaces that differentiate payment instruments having a trusted beneficiary. It is determined that a payee entity has been designated as a trusted beneficiary for a particular payment instrument issued by a particular payment issuer. A user interface is generated that facilitates a user selection of one of a plurality of payment instruments associated with a user account. The plurality of payment instruments include the particular payment instrument. The user interface differentiates the particular payment instrument based at least in part the payee entity being designated as the trusted beneficiary for the particular payment instrument.