Digital Wallet ACH Transaction Token Authentication
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Solution Overview
Problem
Automated Clearing House (ACH) networks face challenges in user convenience and reducing erroneous transactions, particularly for consumers, as existing systems lack effective mechanisms for ensuring accurate recipient identification during fund transfers.
Innovation Solution
The implementation of tokens stored in digital wallets for ACH transactions, where authentication processes verify the selected token belongs to the intended recipient, ensuring accurate recipient identification and reducing errors.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If traditional ACH transaction systems are used, then fund transfers can be completed, but user convenience is reduced and erroneous transactions increase due to lack of effective recipient identification mechanisms
Solution Approach 1:
The patent introduces tokens as intermediary objects that mediate between the user and the recipient's bank account. Instead of directly handling sensitive account information, the system uses tokens that represent recipients, thereby improving both user convenience through simplified selection and transaction accuracy through cryptographic verification of token-recipient matching
Solution Approach 2:
The patent segments the recipient identification process into distinct components: token selection by the user, authentication verification by the system, and token-to-recipient mapping. This segmentation allows each component to be optimized independently, improving overall ease of operation while maintaining high reliability through layered verification
2Measurement precision
If tokens are implemented in digital wallets, then recipient identification accuracy improves, but system complexity increases
Solution Approach 1:
The patent creates simplified copies (tokens) that represent complex recipient account information. These tokens can be stored and transmitted easily in digital wallets, providing high identification accuracy without requiring users to manage complex account details, thereby limiting the increase in perceived system complexity
Solution Approach 2:
The patent replaces manual recipient identification mechanisms (typing account numbers, manual verification) with automated token-based authentication. This substitution improves measurement precision through cryptographic verification while reducing the operational complexity users experience, even though backend system complexity increases
3Reliability
If authentication processes are added to verify tokens, then erroneous transactions are reduced, but transaction processing time increases
Solution Approach 1:
The patent performs authentication verification as a preliminary action during token selection, before the actual fund transfer occurs. This allows erroneous transactions to be prevented early in the process with minimal additional time, as the verification happens during the natural user interaction flow rather than as a separate post-processing step
Data Source
AI summary
A message is generated to initiate an ACH (automated clearing house) transaction to benefit a recipient account associated with a recipient token. The message includes the recipient token. After the message is transmitted, an authentication message is received. The authentication message indicates authentication of the recipient token. The ACH transaction is implemented in response to receiving the authentication message.