Virtual Credit Provisioning for Immediate Online Transactions
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Solution Overview
Problem
Existing credit application processes in online transactions often result in delayed availability of credit cards, contingent merchant liability, and require physical card delivery, limiting immediate transaction capabilities.
Innovation Solution
A system and method for integrating credit application and provisioning operations within ongoing online merchant transactions, allowing immediate credit account availability by redirecting users to a credit application site, pre-populating information, and associating payment credentials with a user profile for immediate transaction use.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If traditional credit card application process is used, then credit account can be created, but credit card is only available for single usage and requires physical card delivery
Solution Approach 1:
The system performs preliminary actions by pre-approving credit applications and pre-generating virtual payment credentials before the actual transaction occurs. The credit account is created and activated in advance within the transaction flow, eliminating the need for physical card delivery and enabling immediate usage for both the current and future transactions.
Solution Approach 2:
The patent uses virtual copies of payment credentials instead of physical cards. Virtual payment credentials are generated as digital representations that can be immediately used in online transactions without requiring physical card delivery, mail, or activation steps. These virtual credentials function as copies that can be transmitted and applied instantly.
2Reliability
If traditional credit application process is used, then credit account can be created, but merchant has contingent liability and delayed transaction capability
Solution Approach 1:
The system introduces a credit application processing system as an intermediary between the merchant and the credit issuing institution. This intermediary handles the credit application, approval, and credential generation processes, allowing the merchant to offer credit options without bearing direct contingent liability. The intermediary system manages the risk by working through established financial institutions with their own risk assessment frameworks.
3Productivity
If credit application process is integrated into merchant transaction, then immediate credit availability is achieved, but system complexity increases
Solution Approach 1:
The system segments the credit application process into distinct functional modules: credit application submission, credit decisioning, virtual credential generation, and credential association with user profiles. This segmentation allows each component to be developed, tested, and maintained independently while working together to provide integrated credit offering within the merchant transaction ecosystem.
Solution Approach 2:
The system creates a universal credit application framework that can be integrated into multiple merchant platforms and transaction types. The same core system handles various scenarios including initial purchases, account opening, and subsequent transactions, providing multi-functional capability that reduces overall system complexity compared to separate solutions for each use case.
Data Source
AI summary
The present disclosure involves systems, software, and computer implemented methods for generating new credit accounts for immediate availability for use in current online transaction. One example process includes identifying, at a merchant application, a request to perform a credit application process associated with a particular user via a client application. The credit application process is associated with a financial institution, and the merchant application stores a set of user accounts, each associated with a merchant-specific identifier identifying the particular user profile at the merchant. An interactive application is presented within the merchant application, and information associated with the completed application is transmitted to an API associated with the financial institution with the merchant-specific identifier of the associated user. A payment credential for a newly created credit account is received, and can be associated with the user profile corresponding to the merchant-specific identifier.