Credit Card Authorization via Wireless Terminal Proximity
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Solution Overview
Problem
Despite existing measures, credit card fraud remains a significant issue due to the lack of effective methods to verify the location and proximity of credit card transaction terminals to the user's wireless terminals, which can be exploited by thieves.
Innovation Solution
Implementing a credit card transaction authorization system that utilizes a wireless network interface to obtain location information from multiple wireless network providers, correlating the location of credit card transaction terminals with user-associated wireless terminals, and generating authorization information based on their proximity, with additional authentication levels depending on the number and network providers of the terminals.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If location verification is implemented to reduce credit card fraud, then security against fraud is improved, but system complexity increases due to multiple wireless network interfaces and location correlation requirements
Solution Approach 1:
The patent introduces a wireless network interface as an intermediary component that obtains location information from wireless network providers and correlates it with transaction terminal locations. This intermediary layer handles the complex location verification process, isolating the fraud prevention logic from the core authorization system and managing the complexity through a dedicated mediation component.
Solution Approach 2:
The authorization system is segmented into distinct functional modules: a credit card transaction interface for receiving transaction data, a wireless network interface for obtaining location information, and an authorization processor for correlating locations and making authorization decisions. This segmentation allows each component to handle specific tasks independently, improving reliability while organizing system complexity into manageable segments.
2Measurement precision
If multiple levels of authentication are required based on terminal proximity, then fraud detection accuracy is improved, but transaction processing time increases due to additional verification steps
Solution Approach 1:
The patent implements dynamic authentication where the number and type of verification steps adjust based on real-time conditions. When a wireless terminal is found in close proximity to the transaction terminal, the system dynamically reduces authentication requirements. When no proximate terminal is detected, the system dynamically increases verification levels, optimizing both accuracy and processing time based on the specific transaction context.
Solution Approach 2:
The system changes authentication parameters (number of required verifications, types of checks) based on the detected proximity parameter. By monitoring the distance between wireless terminals and transaction terminals, the system adjusts the stringency of authentication requirements, using parameter changes to balance fraud detection accuracy with transaction processing efficiency.
3Reliability
If location information is obtained from multiple wireless network providers, then verification reliability is improved, but information processing complexity increases
Solution Approach 1:
The wireless network interface is designed with multi-functionality to handle communications with multiple different wireless network providers using various protocols and formats. This universal interface consolidates the complexity of interfacing with multiple providers into a single component that can translate and normalize data from different sources, improving reliability through multiple data sources while containing processing complexity within a unified interface layer.
Data Source
AI summary
Credit card transaction servers, systems, methods and computer program products receive information concerning a prospective credit card transaction with one of multiple credit card issuers and obtain location information from multiple wireless network providers for wireless terminal(s) that are associated with a user of the credit card for the prospective credit card transaction. The locations of the credit card transaction terminal(s) and the locations of the wireless terminal(s) are correlated, and authorization information for the prospective credit card transaction is generated based upon this location correlation.