System and method for validating a genuine transaction card

A system comprising:

• a secure enclave:
• one or more processors;
• and
• a memory storing a validator service module and computer-executable instructions thereon, the validator service module including an artificial intelligence (AI) validation module, a token bindings module, and a data streaming engine, the computer-executable instructions, when executed by the one or more processors, causing the one or more processors to perform operations of:
• receiving, via the validator service module, a request to validate a transaction card from a merchant application running on a mobile device;
• in response to the request, performing, via the validator service module, a liveliness check of the transaction card;
• receiving, by the validator service module via the data streaming engine, transaction card image data including one or more images of the transaction card, wherein the data streaming engine does not store the transaction card image data in a memory of the mobile device and does not store or cache the transaction card digital image locally on the mobile device in any form;
• extracting, from the transaction card image data using the AI validation model, one or more transaction card features;
• determining, via the AI validation model and based on the extracted one or more transaction card features, an anomaly risk score;
• determining that the anomaly risk score is less than a predetermined threshold value;
• validating, via the AI validation model, the transaction card based on the determination;
• in response to validating the transaction card, transmitting, to a payment network associated with the transaction card via the data streaming engine, the transaction card image data and a request to tokenize the transaction card;
• receiving, via the validator service module and in response to the request to tokenize the transaction card, a payment token from the payment network, the payment token being representative of the transaction card;
• retrieving, via the token bindings module, one or more device parameters of the mobile device including a secure enclave ID;
• embedding, via the token bindings module, the retrieved one or more device parameters to the payment token;
• and
• transmitting the payment token with the embedded token bindings to the secure enclave for storage on the mobile device.