Virtual Wallet Auto-Loading via Pseudo-PAN Intermediary
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Solution Overview
Problem
Decoupled debit payment systems face issues such as increased personal payment risk due to stored credit data, complexity in funding and transaction management, and inefficiencies in transaction details visibility, leading to consumer dissatisfaction and heightened payment risk for both consumers and PSPs.
Innovation Solution
A virtual wallet system with automatic-loading capabilities, utilizing a pseudo-primary account number (pseudo-PAN) to facilitate real-time funding and authorization, allowing consumers to manage multiple PSP accounts from a single funding source while protecting personal data and enhancing transaction transparency.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If decoupled debit payment systems store credit data, then payment transactions can be facilitated, but personal payment risk increases
Solution Approach 1:
The patent introduces a PSP account as an intermediary layer between the consumer's funding account and the merchant. The PSP account stores payment credentials and facilitates transactions without requiring the consumer to share sensitive credit data with merchants, thereby reducing personal payment risk while maintaining transaction facilitation
Solution Approach 2:
The payment system is segmented into separate functional components: the funding account (held by consumer), the PSP account (held by payment service provider), and the merchant account. This segmentation allows the PSP to act as a buffer that protects consumer data while enabling payments
2Adaptability or versatility
If multiple PSP accounts are managed separately, then payment flexibility is maintained, but transaction management complexity increases
Solution Approach 1:
The patent merges multiple PSP accounts under a single funding account structure. The consumer can link multiple PSP accounts to one funding source, allowing centralized management of payment credentials while maintaining the ability to use different PSPs for different transactions, thus reducing management complexity while preserving flexibility
3Reliability
If transaction details are hidden from consumers, then PSP security is maintained, but consumer satisfaction decreases
Solution Approach 1:
The patent implements a feedback mechanism where the PSP provides consumers with visibility into transaction details, account balances, and payment status through statements, online portals, or notifications. This allows consumers to monitor their PSP accounts while the PSP maintains security controls over the underlying funding accounts
4Productivity
If real-time funding is implemented, then transaction authorization efficiency improves, but system complexity increases
Solution Approach 1:
The patent implements preliminary action by pre-authorizing funding availability at the PSP account level before transactions occur. The PSP verifies fund availability and reserves amounts in real-time before merchant transactions, enabling rapid authorization without complex real-time coordination between multiple funding sources during the transaction moment
Data Source
AI summary
Methods and apparatus for operating a virtual wallet automatic loading system are described. In an embodiment, a virtual wallet server receives, from a consumer device, automatic-loading parameter data associated with funding a consumer's virtual wallet account, stores the automatic-loading parameter data, determines that at least one trigger condition associated with the consumer's virtual wallet account is met, and generates a standard authorization request message that includes an auto-load transaction amount and at least one payment account number (PAN) of a funding account. The process also includes the virtual wallet server routing the standard authorization message to a payment network authorization system, receiving an authorization response approved message, crediting the consumer's virtual wallet account and incrementing a stored value of the consumer's virtual wallet account, and transmitting an automatic-loading advisement message to the consumer device.