Chip and PIN Reader Adaptation for Token-Less Transactions
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Solution Overview
Problem
The existing payment card infrastructure requires significant investment in new technology for chip and PIN card transactions, and there is a need to support new kinds of cashless transactions without additional infrastructure costs.
Innovation Solution
Adapting chip and PIN card readers to facilitate token-less transactions, which use existing infrastructure for chip and PIN card transactions, allowing for operations in both token device and token-less transaction modes, enabling transactions like voucher redemption and loyalty points redemption without the need for new hardware.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If chip and PIN card readers are deployed for secure payment transactions, then transaction security is improved, but infrastructure cost and device complexity increase
Solution Approach 1:
The card reader is designed to perform multiple functions: it can process both traditional chip and PIN card transactions and new token-less transactions using alternative authentication methods. This multi-functionality allows the same hardware infrastructure to support diverse transaction types, reducing the need for separate dedicated devices for each transaction mode and thereby lowering overall infrastructure costs while maintaining security standards
2Adaptability or versatility
If new transaction types like voucher redemption are added, then system versatility is improved, but infrastructure investment requirements increase
Solution Approach 1:
The system is designed with universal compatibility to handle multiple transaction types including chip and PIN payments, token-less transactions, voucher redemptions, and loyalty points transactions. By using the existing card reader infrastructure for all these purposes, the system achieves high versatility without requiring separate specialized hardware for each transaction type, thus avoiding additional infrastructure investment
Solution Approach 2:
The patent introduces an intermediary authentication processor that mediates between the card reader and various transaction types. This intermediary component enables the system to handle diverse transaction formats (chip cards, token-less entries, voucher codes, loyalty points) through a unified interface, allowing existing infrastructure to support new transaction types without direct modification or additional investment in specialized hardware
Data Source
AI summary
Aspects and embodiments of the present invention relate to alternative kinds of transactions, which do not involve payment using only cash or a token device such as a smart card or chip and PIN card. In some embodiments, transactions involve a customer providing token-less transaction authentication information using customer interface means (150) that is adapted to receive, from a customer, in a first mode of operation, PIN or other token device authentication information, for use in a token device transaction, and token-less transaction authentication information, when operating in another mode of operation. In some embodiments, the customer interface means may be a specially-adapted chip and PIN card reader apparatus. Accordingly, such a customer input means facilitates manual input by a customer of voucher, coupon, accrued loyalty points, Air Miles, ticket or pass authentication information, without the need for a retailer to install new equipment or IT infrastructure.