Electronic Wallet Backend Credential Selection for Legacy Tokenization
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Solution Overview
Problem
E-commerce aggregating wallet providers face challenges in supporting legacy and tokenized transactions due to the lack of card on file tokenization support from most providers and merchants, which hinders the functionality of existing token infrastructures.
Innovation Solution
The system and method for selecting electronic payment credentials involve an electronic wallet backend receiving payment credentials, determining the appropriate credential based on merchant capabilities, and communicating the selected credential to the merchant, enabling both tokenized and single-use account transactions by providing the necessary credentials to merchants, such as single-use account numbers or cryptograms, and dynamic card validation values.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If existing token infrastructures are used, then tokenized transactions can be processed, but most merchants and wallet providers do not support card on file tokenization, causing the infrastructure to fail
Solution Approach 1:
The patent introduces a tokenization service as an intermediary component that bridges legacy payment systems and tokenized transactions. This service handles the conversion and communication between different credential types (PANs, tokens, single-use account numbers) enabling compatibility between tokenized wallets and merchants who may not fully support tokenization yet
Solution Approach 2:
The payment credential selection system is designed to be universal, capable of selecting from multiple credential types including primary account numbers, tokens, and single-use account numbers. This multi-functional approach allows the same infrastructure to support both legacy and tokenized transactions across diverse merchant capabilities
2Adaptability or versatility
If multiple payment credentials are stored and managed, then credential flexibility and merchant compatibility improve, but system complexity and credential management difficulty increase
Solution Approach 1:
The system implements self-service credential selection where the wallet provider automatically determines which credential to use based on merchant capabilities and transaction requirements. This eliminates the need for manual credential selection and reduces the complexity burden on users while maintaining flexibility
Solution Approach 2:
The credential management system segments different credential types (PANs, tokens, single-use account numbers) into distinct categories with specific use cases. This segmentation allows for organized storage, retrieval, and selection of credentials based on merchant support and transaction requirements, reducing overall system complexity
3Adaptability or versatility
If single-use account numbers and cryptograms are used instead of tokenized credentials, then compatibility with legacy merchants is achieved, but transaction security and tokenization benefits are reduced
Solution Approach 1:
The system dynamically selects the appropriate credential type based on real-time assessment of merchant capabilities and transaction requirements. This dynamic approach allows the system to use tokenized credentials when merchant support allows (for enhanced security) and fall back to single-use account numbers or cryptograms when legacy compatibility is required, maintaining both security and adaptability
Data Source
AI summary
System and methods for supporting legacy and tokenized transactions are disclosed. According to one embodiment, in an information processing device comprising at least one computer processor, a method for selecting an electronic payment credential to communicate to a merchant, may include (1) an electronic wallet backend receiving a plurality of payment credentials associated with a payment account; (2) the electronic wallet backend receiving a credential capability for a merchant; (3) the electronic wallet backend selecting one of the payment credentials for a transaction with the merchant based on the credential capability; and (4) the electronic wallet backend communicating the selected payment credential to a point of transaction device for the merchant.