Virtual Account Mapping for Credit Card Payments in Open Banking
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Solution Overview
Problem
Current open banking systems do not support credit card payments, limiting adoption due to the absence of consumer protections and reward programs associated with credit cards, and posing a high barrier for new entities to participate in payment transactions.
Innovation Solution
Enabling credit card payments through a mapped virtual account system, where a consumer registers their credit card with an open banking provider, generating a virtual account that appears as a standard debit account, allowing seamless integration with existing open banking infrastructure without requiring changes to merchant systems.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional payment rails are used for credit card transactions, then consumer protections and reward programs are available, but the barrier to entry for new entities is high and system complexity increases
Solution Approach 1:
The patent introduces an intermediary layer that maps credit card accounts to virtual debit accounts within the open banking framework. This intermediary mapping mechanism allows credit card functionality to operate through debit account interfaces, providing consumer protections without requiring direct integration with traditional payment rails, thus reducing system complexity while maintaining reliability
Solution Approach 2:
The virtual account system provides multi-functionality by enabling a single debit account interface to support both traditional debit transactions and credit card-like transactions. This universal approach allows the same infrastructure to serve multiple purposes, eliminating the need for separate complex credit card processing systems while maintaining consumer protections
2Adaptability or versatility
If open banking infrastructure is used without credit card support, then system simplicity is maintained, but adoption is limited due to absence of consumer protections and reward programs
Solution Approach 1:
The patent creates virtual copies of credit card accounts that operate within the open banking debit account framework. These virtual accounts replicate credit card functionality (protections, rewards) without requiring actual credit card infrastructure, thereby increasing adoption while maintaining system simplicity through the use of existing debit account mechanisms
3Adaptability or versatility
If credit card registration is required for open banking payments, then credit functionality becomes available, but onboarding complexity increases for consumers
Solution Approach 1:
The system enables consumers to self-register their credit card accounts through standardized open banking authentication mechanisms. The virtual account mapping is automatically created and configured through the existing account verification processes, eliminating complex manual onboarding steps while making credit functionality available through the familiar debit account interface
Data Source
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AI summary
Methods and systems for enabling credit card payments in open banking via a mapped virtual account includes: receiving, by a receiver of a processing server, a registration request, the registration request including at least payment details for a credit transaction account and a profile identifier; generating, by a processor of the processing server, a virtual account, the generated virtual account including at least an account identifier and a balance; mapping, by the processor of the processing server, the generated virtual account to the credit transaction account in a mapping database of the processing server; storing, in an account database of the processing server, at least the account identifier for the generated virtual account in an account profile associated with the profile identifier; and transmitting, by a transmitter of the processing server, at least the account identifier upon receipt of a payment request for payment via an open banking infrastructure.