Virtual Payment Token System for Dynamic Card Selection

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Solution Overview

Problem

Consumers face the inconvenience of carrying multiple payment instruments due to varying promotional offers from different issuers, making it difficult to select the most beneficial card for each transaction.

Innovation Solution

An electronic system and method that uses a common virtual payment token linked to a digital wallet, allowing consumers to associate multiple payment instruments with the token, which is then used to select the most suitable card for a merchant based on transaction details, eliminating the need to carry multiple cards.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Adaptability or versatility

If consumers carry multiple payment instruments to access different promotional offers, then the ability to maximize rewards and promotional offers is improved, but the convenience and ease of operation deteriorates

Engineering Contradiction:

Improveability to access different promotional offersVSAvoidconvenience of carrying and selecting payment instruments

Core Design Contradiction:

Adaptability or versatilityVSEase of operation

Solution Approach 1:

The patent combines multiple payment instruments into a single unified digital wallet application. The system stores multiple payment card details (credit cards, debit cards, gift cards) within one mobile application, allowing consumers to access all their payment instruments through a single interface rather than carrying multiple physical cards or switching between different applications.

Inventive Principle:

Principle #5Merging (Combining)

Solution Approach 2:

The patent introduces an automated selection system that acts as an intermediary between the consumer and multiple payment instruments. This system automatically analyzes merchant information, promotional offers, and spending patterns to select the most beneficial payment instrument for each transaction, eliminating the need for consumers to manually compare and select cards.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Adaptability or versatility

If consumers manually track and remember promotional offers for different merchants, then the ability to maximize rewards is improved, but the time required and complexity of operation increases

Engineering Contradiction:

Improveability to maximize rewardsVSAvoidtime to remember and select appropriate payment instruments

Core Design Contradiction:

Adaptability or versatilityVSLoss of time

Solution Approach 1:

The patent implements an automated system that performs the selection of payment instruments without requiring consumer intervention. The system automatically retrieves merchant information, compares promotional offers across different payment instruments, analyzes spending patterns, and selects the optimal card for each transaction, allowing the system to serve itself rather than requiring manual consumer effort.

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

The patent performs preliminary analysis and selection of payment instruments before the actual transaction occurs. The system pre-configures spending patterns, pre-identifies promotional offers, and pre-selects the most beneficial payment instrument for upcoming transactions based on the merchant type and amount, so that when a transaction is needed, the selection is already made.

Inventive Principle:

Principle #10Preliminary action

3Ease of operation

If consumers use a single default payment instrument for all transactions, then the ease of operation is improved, but the ability to maximize promotional offers and rewards deteriorates

Engineering Contradiction:

Improvesimplicity of using a single payment instrumentVSAvoidability to optimize for different merchant promotions

Core Design Contradiction:

Ease of operationVSAdaptability or versatility

Solution Approach 1:

The patent transforms the static default payment instrument concept into a dynamic selection system. Instead of assigning a fixed default card, the system continuously adapts the selected payment instrument based on real-time factors including the current merchant, available promotional offers, transaction amount, and the consumer's spending patterns, allowing the optimal card to change dynamically with each transaction context.

Inventive Principle:

Principle #15Dynamics

Data Source

PatentUS11741446B2Electronic system and method for transaction processing

Publication Date: 2023.08.29 MASTERCARD INT INC

AI summary

A system comprises a server configured for performing steps of receiving, from an acquirer financial institution for a merchant, details of a transaction and a common virtual payment token. The transaction details include details of the merchant. Identification details of a set of consumer payment instruments associated with the common virtual payment token are retrieved from a consumer database. The consumer payment instrument for the merchant is selected from the set of consumer payment instruments, based on the merchant details. Payment details of the selected consumer payment instrument are retrieved from the consumer database. The transaction is processed with the selected consumer payment instrument by communicating to an issuer financial institution for the selected consumer payment instrument, the transaction details and the payment details of the selected consumer payment instrument.