System and method for closing pre-authorization amounts on a virtual token account

A system comprising:

• a processor;
• and
• a tangible, non-transitory computer readable storage medium configured to communicate with the processor, the tangible, non-transitory computer readable storage medium having instructions stored thereon that, in response to execution by the processor, cause the processor to perform operations comprising:
• receiving, by the processor, and from an account holder of a parent transaction account, a request to associate a virtual token with the parent transaction account based on a virtual token ID;
• receiving, by the processor, and from the account holder, an authorized variance for the virtual token and a settlement variance for the virtual token,
• wherein the virtual token comprises the virtual token ID, a token parameter, a virtual token balance, the authorized variance, and the settlement variance;
• generating, by the processor, a settlement variance transaction history that comprises token data relating to expiring of the virtual token;
• altering, by the processor, the settlement variance based on the settlement variance transaction history;
• receiving, by the processor, a transaction authorization request for the virtual token,
• wherein the transaction authorization request comprises a transaction request amount and is linked to the virtual token ID,
• wherein the virtual token balance is an authorized amount on the virtual token less the transaction request amount, and
• wherein the authorized variance includes an allowable increase in the authorized amount on the virtual token;
• comparing, by the processor, the transaction request amount to the virtual token balance;
• authorizing, by the processor, the transaction authorization request in response to the transaction request amount being less than the virtual token balance and the authorized variance;
• generating, by the processor, an authorized variance transaction history that comprises authorizing data relating to authorizing of the transaction authorization request;
• altering, by the processor, the authorized variance based on the authorized variance transaction history;
• comparing, by the processor, the settlement variance to the virtual token balance;
• and
• expiring, by the processor, the virtual token in response to the virtual token balance being less than the settlement variance,
• wherein in response to the expiring, the virtual token is no longer authorized for the transaction authorization request, but the virtual token is still settled by a settlement engine.

An article of manufacture including a non-transitory, tangible computer readable storage medium having instructions stored thereon that, in response to execution by a computer based system, cause the computer based system to perform operations comprising:

• receiving, by the computer based system, and from an account holder of a parent transaction account, a request to associate a virtual token with the parent transaction account based on a virtual token ID;
• receiving, by the computer based system, and from the account holder, an authorized variance for the virtual token and a settlement variance for the virtual token,
• wherein the virtual token comprises the virtual token ID, a token parameter, a virtual token balance, the authorized variance, and the settlement variance;
• generating, by the computer based system, a settlement variance transaction history, wherein the settlement variance transaction history comprises token data relating to expiring of the virtual token;
• altering, by the computer based system, the settlement variance based on the settlement variance transaction history;
• receiving, by the computer based system, a transaction authorization request for the virtual token,
• wherein the transaction authorization request comprises a transaction request amount and is linked to the virtual token ID,
• wherein the virtual token balance is an authorized amount on the virtual token less the transaction request amount, and
• wherein the authorized variance includes an allowable increase in the authorized amount on the virtual token;
• comparing, by the computer based system, the transaction request amount to the virtual token balance;
• authorizing, by the computer based system, the transaction authorization request in response to the transaction request amount being less than the virtual token balance and the authorized variance;
• generating, by the computer based system, an authorized variance transaction history that comprises authorizing data relating to authorizing of the transaction authorization request;
• altering, by the computer based system, the authorized variance based on the authorized variance transaction history;
• comparing, by the computer based system, the settlement variance to the virtual token balance;
• and
• expiring, by the computer based system, the virtual token in response to the virtual token balance being less than the settlement variance,
• wherein in response to the expiring, the virtual token is no longer authorized for the transaction authorization request, but the virtual token is still settled by a settlement engine.