Card Payment Security via Location Verification

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Solution Overview

Problem

Existing card payment systems face challenges in securely managing payments, particularly when credit cards are lost, stolen, or used online, as they lack effective location-based identification and verification mechanisms.

Innovation Solution

A card payment system and method that utilizes a dedicated application to identify the location of a registered card and the application itself, allowing users to activate a card location identification function. This system includes a user terminal, affiliated store POS devices, online affiliated stores, a central server, and a bank/card company server, which work together to recognize and analyze location information for payment approval or rejection within a set identification area.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If location identification is implemented using wireless access point devices and signal power difference computation, then card payment security is strengthened, but device complexity and infrastructure requirements increase

Engineering Contradiction:

Improvecard payment securityVSAvoidinfrastructure complexity

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The patent introduces a location identification server as an intermediary component that centralizes the location verification functionality. Instead of requiring complex distributed wireless access point infrastructure, the server receives location information from the terminal and performs the identification logic centrally, simplifying the overall system architecture while maintaining security

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent replaces the physical infrastructure of wireless access point devices and signal-based location computation with a software-based location identification system. The terminal device itself provides location information through its built-in capabilities, and the server processes this information logically, eliminating the need for additional physical infrastructure

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

2Reliability

If real-time location computation is performed by payment terminals, then payment security is improved, but processing time and operational complexity increase

Engineering Contradiction:

Improvepayment securityVSAvoidprocessing time

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The patent implements preliminary location identification by having the terminal device provide its location information to the server as part of the payment request process. The server then performs the location verification logic in advance of the final payment approval, ensuring security checks are completed before transaction finalization without adding significant processing delays

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The patent extracts the location computation and verification logic from the payment terminal itself and relocates it to the location identification server. This separation allows the terminal to simply provide location data while the server handles the complex verification processes, reducing the processing burden on the terminal and speeding up local response time

Inventive Principle:

Principle #2Taking out (Extraction)

3Object-affected harmful factors

If location-based payment blocking is implemented, then fraud prevention is enhanced, but ease of operation and user convenience decrease

Engineering Contradiction:

Improvefraud preventionVSAvoiduser convenience

Core Design Contradiction:

Object-affected harmful factorsVSEase of operation

Solution Approach 1:

The patent implements automatic location-based verification where the system itself performs the security checks without requiring user intervention. The terminal device automatically provides location information, and the server automatically verifies whether the location matches the authorized payment location, blocking fraudulent transactions without requiring the user to manually verify or input additional information

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

The location identification server acts as an intermediary that handles the complex fraud prevention logic transparently. Users simply initiate payments as usual, and the server silently verifies location authenticity in the background, blocking only genuinely fraudulent transactions while maintaining seamless operation for legitimate payments

Inventive Principle:

Principle #24Intermediary (Mediator)

Data Source

PatentUS20250029088A1Card payment system and method having function of identifying location of use of card registered in dedicated application and location of dedicated application

Publication Date: 2025.01.23 PARK HEE YOUNG

AI summary

Proposed are a card payment blocking system and method using a card location identification function of a dedicated application. More particularly, provided is a payment method, in which when a user makes payment by a card registered in a dedicated application using a card location identification function of the dedicated application, payment is approved if location information of a terminal on which the dedicated application is installed and location information of an affiliated store POS device or an online affiliated store at which the card is used exist inside a set identification area, or payment is blocked if the two pieces of information exist outside the set identification area.