Composite Code Generation for Secure Digital Transactions
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Solution Overview
Problem
Current electronic payment systems are fragmented and insecure, leading to data compromise and theft during transactions, resulting in losses for corporations and users, and escalating merchant and client costs.
Innovation Solution
A method for secure currency-related transactions involving the generation and use of composite codes, which combine a first code with a security code to form a composite code associated with a currency value, including features like PIN code masking, secure transmission, and expiration to enhance security and reduce fraud.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional electronic payment systems are used, then transaction convenience is maintained, but security and vulnerability to data compromise worsen
Solution Approach 1:
The payment system is segmented into multiple independent components: virtual accounts, composite codes, security codes, and transaction logs. Each component serves a specific security function, and no single component contains all sensitive information, preventing complete data compromise even if one element is breached.
Solution Approach 2:
The patent introduces intermediary elements including the payment facilitator, virtual accounts, and composite codes that act as mediators between the user and the payment processor. These intermediaries shield sensitive information by using temporary identifiers and one-time codes instead of exposing actual account credentials during transactions.
2Reliability
If security measures are enhanced through composite codes and verification, then data protection improves, but system complexity increases
Solution Approach 1:
The system creates temporary copies of payment credentials in the form of composite codes and security tokens. These copies are generated on-demand for each transaction, contain only the necessary information for that specific transaction, and are discarded afterward. This allows enhanced security verification without permanently storing or transmitting complex security structures.
3Reliability
If frequent code generation and verification are implemented, then fraud reduction improves, but transaction processing time increases
Solution Approach 1:
Security codes and composite codes are generated and validated in advance before the actual payment processing. The system performs verification checks on the validity, expiration, and usage status of codes beforehand, so that when the actual transaction occurs, the verification is already complete or can be quickly confirmed, minimizing delays during the critical payment moment.
Data Source
AI summary
A method for authorizing recurring transaction according to one embodiment includes receiving a defined payment amount associated with a user or entity. Additionally, the method includes receiving a first code associated with a first predetermined currency value, where the first code is also associated with the user or entity. Furthermore, the method includes verifying an availability of funds to pay the defined payment amount and authorizing payment of the defined payment amount if funds are available to pay the defined payment amount. Further still, the method includes generating a new code associated with a new predetermined currency value, and sending the new code to a sender of the defined payment amount.