Acoustic-Code Authentication for Private Remote Transaction Settlement

Resolve Bottlenecks,
Find Innovative Solutions
Generate Solutions

Solution Overview

Problem

Existing transaction authentication methods in online marketplaces are inconvenient, insecure, and prone to fraud, leading to abandoned transactions and increased costs due to chargebacks.

Innovation Solution

A system utilizing FatToken and AuthChain for secure, remote transaction authentication, which includes encrypted identity attributes and blockchain-based authentication, allowing payment verification without revealing personal information and reducing fraud through environmental sampling.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If traditional checkout processes are used, then transactions can be completed, but users abandon transactions due to inconvenience and security concerns

Engineering Contradiction:
Improvecheckout convenienceVSAvoidtransaction completion rate
Core Design Contradiction:
Ease of operationVSReliability

Solution Approach 1:

The patent introduces an authentication mediary system that acts as an intermediary between the user and the merchant. This mediator handles the authentication process using sound-based codes, allowing the user to verify their identity without directly sharing personal information with the merchant. The mediary system processes authentication requests, verifies user identity through acoustic signals, and communicates authentication status, thereby simplifying the checkout process and increasing completion rates while maintaining security.

Inventive Principle:
Principle #24Intermediary (Mediator)

2Reliability

If personal information is requested during checkout, then authentication can be verified, but users are discouraged from completing transactions

Engineering Contradiction:
Improveauthentication accuracyVSAvoidinformation disclosure requirement
Core Design Contradiction:
ReliabilityVSEase of operation

Solution Approach 1:

The patent replaces traditional mechanical information disclosure methods with acoustic signal-based authentication. Instead of requiring users to input personal information such as credit card numbers, addresses, or social security numbers, the system uses sound-based codes that users can pronounce or sing. The authentication mediary captures these acoustic signals, processes them through pattern recognition, and verifies user identity without any direct disclosure of personal information to the merchant or third parties.

Inventive Principle:
Principle #28Mechanics substitution (Replace mechanical system)

3Productivity

If payment methods are disclosed to merchants, then transactions can be processed, but fraud and chargebacks increase

Engineering Contradiction:
Improvetransaction processing speedVSAvoidfraud and chargebacks
Core Design Contradiction:
ProductivityVSObject-generated harmful factors

Solution Approach 1:

The authentication mediary system serves as a secure intermediary that processes payment authentication without disclosing sensitive payment information to merchants. The system uses sound-based authentication codes that can be processed remotely, allowing transaction verification without exposing credit card details or other financial information to potential fraudsters. This intermediary approach maintains fast transaction processing while significantly reducing the risk of friendly fraud and identity theft.

Inventive Principle:
Principle #24Intermediary (Mediator)

4Reliability

If remote authentication is implemented, then transaction security improves, but system complexity increases

Engineering Contradiction:
Improvetransaction securityVSAvoidauthentication system complexity
Core Design Contradiction:
ReliabilityVSDevice complexity

Solution Approach 1:

The patent replaces complex electronic authentication systems with acoustic signal processing. Instead of requiring users to input passwords, PINs, or biometric data through complex interfaces, the system uses sound-based codes that can be easily transmitted via audio signals. The authentication mediary processes these acoustic signals using pattern recognition algorithms, providing secure remote authentication with relatively simple technology. This approach reduces the complexity of user interfaces and data transmission while maintaining high security standards.

Inventive Principle:
Principle #28Mechanics substitution (Replace mechanical system)

Data Source

PatentEP3857486B1System, method, and computer program product for secure, remote transaction authentication and settlement
Publication Date: 2025.07.09 VISA INTERNATIONAL SERVICE ASSOCIATION
  • EP3857486B1 patent drawingFigure 1
  • EP3857486B1 patent drawingFigure 2
  • EP3857486B1 patent drawingFigure 3

AI summary

Described are a system, method, and computer program product for secure, remote transaction authentication and settlement. The method includes receiving transaction data associated with a transaction to be completed between a merchant and a customer via a point-of-sale (POS) terminal. The method also includes generating a unique identifier for the transaction and sound data encoding the unique identifier. The method further includes storing the unique identifier in association with the transaction data and communicating the sound data to a merchant communication device to cause the sound wave to be produced at the POS terminal for receipt and decoding by a user communication device. The method further includes receiving, from the user communication device, the unique identifier and user payment authorization data. The method further includes corresponding the user payment authorization data with the transaction data and generating a transaction request to an acquirer processor.