Authentication Device for Dynamic Payment Instrument Limit Adjustment
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Solution Overview
Problem
Transaction cards, such as credit and debit cards, face security risks due to potential loss or theft, allowing fraudulent use without proper identification or authorization, especially in online transactions where merchants may not verify user identity.
Innovation Solution
An authentication device that communicates with a transaction card to modify its default limits, restrictions, and use conditions, using biometric or user input authentication to authorize higher limits or relaxed restrictions, and connects with a remote server for secure online transactions, preventing unauthorized use.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If transaction cards are used for online transactions without verification, then ease of operation is improved, but security and reliability deteriorate
Solution Approach 1:
The patent introduces an authentication device as an intermediary between the user and the transaction card. This device verifies user identity through biometric authentication (fingerprint, facial recognition, or iris scanning) before enabling the transaction card to be used, thereby maintaining ease of operation while significantly improving transaction security and preventing fraudulent use of lost or stolen cards
Solution Approach 2:
The patent implements preliminary authentication actions before the actual transaction occurs. The system performs biometric verification and authorization checks in advance, ensuring that only authenticated users can activate their transaction cards for use, thus preventing fraudulent transactions while maintaining convenient operation for legitimate users
2Reliability
If default limits and restrictions are imposed on transaction cards, then security is improved, but adaptability and versatility deteriorate
Solution Approach 1:
The patent implements dynamic limit adjustment capabilities where transaction limits and restrictions are not fixed but can be modified in real-time based on user authentication. The system allows users to set different spending limits for different contexts (online vs. offline transactions, domestic vs. international use) and adjusts these limits dynamically when authentication is successful, thereby maintaining security while providing transaction flexibility
Solution Approach 2:
The system changes transaction parameters (limits, restrictions, enabled/disabled status) based on authentication results. When a user successfully authenticates, the system modifies transaction parameters to allow higher limits or relaxed restrictions appropriate for that user's needs, thus maintaining security through controlled parameter changes while providing adaptability
Data Source
AI summary
Embodiments of systems and methods are provided for an authentication device that enables transactions with a payment instrument at different limitations, restrictions and/or use conditions. In an embodiment, a system comprises a receiver configured to receive, through an authentication device, authentication information associated with a user of the authentication device or with a payment instrument, wherein the payment instrument communicates with the authentication device, and the payment instrument has a first limitation that does not need pre-authorization. The system also comprises a payment instrument authorization module implemented by at least one hardware processor operatively connected to the receiver, the hardware processor(s) configured to: determine validity of the received authentication information; authorize a second limitation for the payment instrument based on the validity of the received authentication information; and communicate, to the authentication device or to a an entity device, authorization information for the payment instrument at the second limitation.