Cardless Transaction Substitute Value Mediator
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Solution Overview
Problem
Existing systems for cardless transactions at ATMs are limited by bank relationships, require physical cards, and are vulnerable to fraud, as they often rely on card credentials and account numbers, restricting access and incurring extra fees, especially when used abroad.
Innovation Solution
The method involves using substitute values, such as constructed values or dynamic tokens, associated with accounts, which are distinct from actual account numbers, to enable transactions at any ATM, eliminating the need for physical cards and reducing fraud by not transmitting actual account credentials.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If cardless transaction systems use substitute values instead of account numbers, then security against fraud is improved, but compatibility with existing payment networks may deteriorate
Solution Approach 1:
The patent introduces a payment network as an intermediary that receives transactions with substitute values (constructed values or dynamic tokens) and translates them into proper account number-based transactions. This mediator layer enables cardless transactions to work with existing payment infrastructure without exposing actual account numbers, thus maintaining both security and compatibility
Solution Approach 2:
The system creates substitute values that copy the essential functionality of account numbers without containing the actual sensitive data. These constructed values or dynamic tokens replicate the routing and identification functions of traditional account numbers while being secure alternatives that don't expose real account information
2Ease of operation
If ATMs require physical cards with magnetic stripes, then transaction verification is simplified, but vulnerability to card theft and fraud increases
Solution Approach 1:
The patent extracts the essential authentication function from the physical card itself and separates it from the sensitive magnetic stripe data. By using substitute values that can be generated on mobile devices or through other cardless methods, the system removes the vulnerable magnetic stripe component while retaining the ability to verify transaction authenticity
Solution Approach 2:
The system replaces the mechanical card insertion and magnetic stripe reading process with electronic substitute values that can be transmitted through more secure channels. This substitution eliminates the physical card handling vulnerability while maintaining transaction verification capabilities
3Adaptability or versatility
If account holders use ATMs from different banks, then accessibility is improved, but fees and transaction restrictions increase
Solution Approach 1:
The patent creates a universal transaction system where substitute values can be processed by any payment network regardless of bank affiliation. This multi-functional approach allows account holders to access any ATM through the payment network infrastructure without being restricted by bank relationships, eliminating cross-bank fees and restrictions
4Productivity
If ATMs transmit account numbers for transactions, then transaction processing is simplified, but risk of account number interception and theft increases
Solution Approach 1:
The payment network acts as an intermediary that receives transactions containing substitute values instead of actual account numbers. This mediator translates the secure substitute values back into proper account number format for processing, maintaining transaction efficiency while preventing account number exposure during transmission
Solution Approach 2:
The system uses substitute values that copy the functional characteristics of account numbers for transaction routing and processing without containing the actual sensitive account information. This allows efficient transaction processing while eliminating the security risk of transmitting real account numbers
Data Source
AI summary
Systems and methods are provided for processing cardless financial transactions at transaction devices such as Automated Teller Machines. An example method comprises receiving a transaction request including at least one transaction parameter and receiving a substitute value representing an account for processing the transaction request. The substitute value is distinct from an account number associated with the account. The method further comprises sending the at least one transaction parameter and the substitute value to a payment network associated with the substitute value and completing the transaction request. A second method comprises receiving a transaction request with at least one transaction parameter and a substitute value. The second method further comprises determining account credentials associated with the substitute value using the account credentials.