Virtual Card Token for Real-Time Payment Authorization
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Solution Overview
Problem
Current transaction management systems using mobile devices for Real-Time Payment (RTP) transactions are inefficient due to slow processing times and complexity, especially when dealing with multiple bank accounts, and existing systems struggle to facilitate real-time authorization and fraud prevention.
Innovation Solution
An account management system generates a virtual card token that can be used for RTP transactions, allowing users to link multiple bank accounts and set usage parameters, enabling real-time fund retrieval and authorization through an RTP network, which streamlines transaction processing and enhances security by securing funds before approval.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Speed
If ACH transactions are used for bank account transactions, then funding can be accessed, but processing delays of days occur resulting in inefficient transactions
Solution Approach 1:
The patent introduces a virtual card token as an intermediary between the consumer's bank account and the merchant system. This token enables real-time payment network transactions instead of slow ACH transfers, achieving instant authorization while maintaining secure access to bank account funds through the payment network infrastructure.
Solution Approach 2:
The system performs preliminary actions by pre-linking the consumer's bank account to a virtual card token before the actual transaction occurs. This preparation enables immediate transaction authorization without requiring real-time bank account verification or multi-day ACH processing, thus eliminating processing delays.
2Ease of operation
If consumers use mobile devices for transactions with multiple bank accounts, then transaction convenience is improved, but system complexity increases
Solution Approach 1:
The patent segments the complex bank account management into simplified virtual card tokens. Each token represents a specific bank account linkage, allowing consumers to manage multiple accounts through simple token selection rather than complex account configuration. The system handles the complexity of multi-account management behind the scenes while presenting a simple interface to the user.
Solution Approach 2:
The system creates virtual copies (tokens) of bank account information that can be easily stored and transmitted on mobile devices. These token copies enable convenient mobile transactions without requiring consumers to manually input or manage complex bank account details, thus improving ease of operation while reducing perceived complexity.
3Reliability
If bank account transactions are conducted without virtual card tokens, then direct account access is possible, but fraudulent transactions cannot be prevented and authorization is slow
Solution Approach 1:
The virtual card token serves as a secure intermediary that prevents direct exposure of sensitive bank account information. The token can be validated and revoked independently, enabling fraud prevention mechanisms without requiring slow direct bank account verification. This intermediary layer allows for rapid authorization decisions while maintaining strong security controls.
Solution Approach 2:
The system performs preliminary validation and linkage of bank accounts to virtual tokens before transactions occur. This pre-authorization setup enables rapid transaction processing without requiring real-time bank account verification, thus preventing fraud through pre-established security protocols while maintaining fast authorization speeds.
Data Source
AI summary
Disclosed herein are system, method, and computer program product embodiments for providing a virtual card token to facilitate Real-Time Payment (RTP) network transactions. An account management system may facilitate RTP transactions with consumer bank accounts using the virtual card token. After providing the virtual card token to a user device, the user device may present the virtual card token to a merchant system to conduct a transaction. The virtual card token may operate with existing merchant systems and/or point-of-sale (POS) terminals. The merchant system may provide the virtual card token to the account management system for transaction approval. The account management system may select and retrieve funding from a particular bank account based on user-defined parameters. Upon retrieving funding from the particular bank account via the RTP network, the account management system may approve the transaction and/or provide payment to the merchant system.