Authentication Node Tokenization for Secure Transaction Processing
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Current financial transaction systems, especially for card-not-present transactions, face security challenges as merchants may store incomplete credit/debit card information, making them vulnerable to data breaches and fraudulent activities, as they do not receive the complete account number, leading to reduced security measures.
Innovation Solution
Implementing an authentication node that receives partial credit/debit account information from merchants, determines the complete account number using the provided identification and name, and verifies transactions through a separate confirmation process, reducing the amount of sensitive data stored by merchants and enhancing security by using a third-party authentication service.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If merchants store complete credit/debit account numbers for transaction processing, then transaction processing is simplified and direct, but security risk increases due to potential data breaches and fraudulent activities
Solution Approach 1:
The system segments the credit/debit account information into two parts: a token (partial account number) that the merchant receives and stores, and the complete account number that is securely stored only by the authentication node. This segmentation allows the merchant to process transactions using the token without having access to or storing the complete sensitive account number, thereby reducing security risk while maintaining operational capability.
Solution Approach 2:
The authentication node acts as an intermediary between the merchant and the payment network. It receives the token from the merchant, retrieves the complete account number using the token, and processes the transaction. This intermediary role eliminates the need for the merchant to store or handle complete account numbers, reducing security risk while enabling transaction processing.
2Object-affected harmful factors
If merchants do not store complete account numbers to enhance security, then security risk is reduced, but transaction processing complexity increases due to additional authentication steps
Solution Approach 1:
The authentication node serves as an intermediary that handles the complexity of retrieving complete account numbers from tokens. While this adds a system component, it centralizes the complexity in a secure location rather than distributing it across multiple merchants. The merchant's system remains relatively simple, only requiring token management and basic transaction processing capabilities.
Solution Approach 2:
The authentication node automatically performs the lookup of complete account numbers using tokens without requiring manual intervention. The system self-services the translation from token to complete account number, minimizing the operational complexity for merchants while maintaining security.
3Reliability
If complete account numbers are stored by merchants for verification purposes, then transaction verification is more comprehensive, but the vulnerability to data breaches and fraud increases
Solution Approach 1:
The system segments account information so that merchants only handle tokens (partial account numbers) rather than complete account numbers. The authentication node holds the complete account numbers securely and performs verification. This segmentation maintains verification reliability through the authentication node's secure processes while reducing the merchant's exposure to data breach risks.
Solution Approach 2:
The authentication node acts as an intermediary that performs the comprehensive verification using complete account numbers stored securely in its controlled environment. The merchant relies on the authentication node's verification capability rather than performing verification itself with complete account numbers. This maintains verification reliability while minimizing the merchant's data breach vulnerability.
Data Source
AI summary
A method of operating an authentication node is disclosed. Transaction information for a transaction is received from a merchant node. The transaction information includes an identification for a credit/debit account, a name on the credit/debit account, and a transaction amount for the transaction. Responsive to receiving the transaction information, a complete account number for the credit/debit account is determined using the identification for the credit/debit account and the name on the credit/debit account. The identification for the credit/debit account is different than the complete account number for the credit/debit account. In addition, account information may be transmitted to an acquirer node, and the account information may include the complete account number for the credit/debit account, the name on the credit/debit account, and the transaction amount. Related methods of operating merchant nodes, related computer program products, and related computer systems are also disclosed.