Card Payment Location Verification to Block Unauthorized Use
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Solution Overview
Problem
Existing credit card systems face significant security challenges due to unauthorized use of lost or stolen cards, particularly in online transactions, where location-based authentication is not effectively implemented without extensive infrastructure installation and management.
Innovation Solution
A card payment system and method that utilizes a dedicated application to identify the location of card use by integrating user terminals, POS devices, central servers, and bank/card company servers, enabling location-based approval or blocking of transactions within predefined areas.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If wireless access point devices are installed and managed to compute current location for payment approval, then card payment security is strengthened, but device complexity and infrastructure management burden increase
Solution Approach 1:
The patent enables the user terminal to autonomously determine its own location using built-in GPS or network-based location services, eliminating the need for external wireless access point infrastructure. The terminal independently computes location coordinates and transmits them to the server,实现ing self-service location identification without requiring complex infrastructure deployment or management
Solution Approach 2:
The patent extracts the location identification function from the infrastructure side (wireless access points) and relocates it to the user terminal side. By using the terminal's own GPS receiver or network location capabilities, the system removes the burden of installing and managing wireless access point devices while maintaining location-based security
2Reliability
If location identification function is added to traditional credit cards, then unauthorized use prevention is improved, but device complexity increases
Solution Approach 1:
The patent leverages the universal presence of GPS receivers and network communication capabilities in modern mobile terminals to provide location identification for credit card transactions. Instead of adding specialized hardware to the card itself, the system uses the multi-functional capabilities of the user's existing terminal device to enable location-based security
Solution Approach 2:
The patent introduces a server as an intermediary that coordinates between the user terminal and the payment system. The server receives location information from the terminal, verifies it against the transaction location, and makes approval decisions, thereby enabling location-based security without directly modifying the credit card or terminal hardware
Data Source
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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.