Consumer Identification System for Secure Payment Transactions
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Solution Overview
Problem
Current methods for securing payment card transactions are complex and costly to implement, as they rely heavily on primary account numbers (PANs) for identification, which poses security risks and compliance challenges.
Innovation Solution
The introduction of a Consumer Identification (CID) system that generates and uses a unique Consumer Identification value, separate from PANs, to identify cardholders in transactions, allowing for secure processing without relying on PANs for non-financial service transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If PANs are used for cardholder identification in transactions, then accurate cardholder identification is achieved, but security risks and compliance complexity increase
Solution Approach 1:
The patent segments the identification function from the payment account number. A separate Consumer Identification (CID) value is introduced specifically for identifying cardholders in non-financial transactions, while PANs are reserved solely for financial transaction processing. This segmentation eliminates the security risk of PAN exposure in non-financial contexts while maintaining accurate cardholder identification through the dedicated CID system.
Solution Approach 2:
The patent extracts the identification function from the PAN and places it in a separate CID system. The CID is specifically designed for non-financial service transactions, removing the need to handle PANs in these contexts. This extraction reduces security risks and compliance complexity associated with PAN handling while preserving accurate cardholder identification capabilities.
2Reliability
If PANs are used for cardholder identification in non-financial transactions, then accurate identification is achieved, but compliance complexity and security measures increase
Solution Approach 1:
The patent segments transaction types and identification methods: financial transactions use PANs with full compliance measures, while non-financial transactions use CIDs with simplified compliance requirements. This segmentation reduces overall system complexity by matching the identification mechanism to the transaction type, eliminating unnecessary compliance burden in non-financial contexts.
Solution Approach 2:
The patent extracts the identification function for non-financial transactions from the PAN system and places it in the CID system. This extraction removes the complexity of PAN compliance requirements (such as PCI-DSS) from non-financial transaction processing, simplifying the system while maintaining accurate cardholder identification.
3Reliability
If new security mechanisms are implemented to mitigate fraud risk, then security is improved, but implementation time and cost increase
Solution Approach 1:
The patent extracts the identification function from PANs and implements it through CIDs that can be processed using existing transaction infrastructure. This approach provides fraud mitigation through reduced PAN exposure without requiring complex new security mechanisms, thereby minimizing implementation time and cost while improving security.
Data Source
AI summary
Methods and systems for receiving an authorization request associated with a transaction, the authorization request including a payment account number and a card verification value; determining the authorization request is to be processed as having a dynamic card verification value; automatically bypassing, in response to the determination that the authorization request is to be processed as having a dynamic card verification value, at least one card verification process to be used in a processing of the authorization request; and sending the authorization request to a card verifier to verify the card verification value matches a dynamic card verification value of record. Some methods and systems include transmitting the authorization request to a payment network for authorization of the transaction; receiving an authorization response in reply to the transmitted authorization request; and providing an indication of the authorization response to a merchant associated with the transaction.