Digital Wallet Tokenization via Acquirer Processor for PCI Isolation
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Solution Overview
Problem
Each merchant must handle transactions from different digital wallet hosts using unique communication formats, leading to inefficiencies and compliance challenges with PCI DSS data security standards.
Innovation Solution
An acquirer processor receives an encrypted payment payload from a digital wallet host, generates a low-value token devoid of financial data, and communicates with an issuer financial institution for authorization, providing a unified mechanism for handling diverse digital wallet transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If merchants handle transactions from multiple digital wallet hosts using their unique communication formats, then transaction compatibility across different wallet hosts is improved, but device complexity and processing time increase significantly
Solution Approach 1:
The patent introduces an intermediary layer (tokenization service and acquirer processor) between the merchant and the various digital wallet hosts. This intermediary receives encrypted payment payloads from different wallet hosts, tokenizes the financial data, and forwards standardized requests to the merchant. This resolves the contradiction by maintaining high adaptability to multiple wallet formats while keeping merchant system complexity low.
Solution Approach 2:
The patent segments the transaction processing system into distinct functional layers: the digital wallet host layer (handling diverse communication formats), the tokenization layer (standardizing data), and the merchant layer (receiving simplified requests). This segmentation allows each layer to specialize in specific functions, improving overall compatibility without increasing merchant complexity.
2Productivity
If merchants directly handle encrypted payment payloads containing financial data, then transaction processing capability is improved, but PCI DSS compliance burden and security risk increase
Solution Approach 1:
The patent extracts sensitive financial data from the payment flow by replacing it with tokens. The acquirer processor receives the encrypted payload, extracts the necessary authorization information, tokenizes the financial data, and sends only the token to the merchant. This extraction removes the harmful factor (exposure to financial data) while maintaining transaction processing capability.
Solution Approach 2:
The patent uses tokens as disposable substitutes for real financial data. These tokens are single-use, short-lived identifiers that replace sensitive information in the merchant system. They serve their purpose for authorization and then become obsolete, eliminating the need for long-term secure storage and reducing compliance burden.
3Reliability
If unique communication formats are used by each digital wallet host, then wallet-specific security and functionality are improved, but adoption rate and ease of operation decrease
Solution Approach 1:
The patent creates a universal interface at the merchant level that can handle multiple digital wallet hosts through a single standardized process. The acquirer processor acts as a multi-functional adapter that supports various wallet host communication formats while presenting a uniform interface to the merchant, improving ease of operation without compromising wallet-specific security features.
Data Source
AI summary
Systems and methods are provided for receiving an encrypted payment payload from a digital wallet host, transmitting a low value token to a merchant, receiving an authorization request, requesting authorization for the transaction from an issuer financial institution using financial data from the encrypted payment payload, receiving an authorization decision from the issuer financial institution, and transmitting an authorization response to the merchant.