Dynamic Code Payment Card Verification System
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Solution Overview
Problem
Current payment card verification systems, particularly CVV2, are vulnerable to fraud in card-not-present transactions and require frequent card replacements due to expiration or data breaches, leading to increased costs for financial institutions.
Innovation Solution
Implementing a dynamic code system where payment cards are associated with a periodically or randomly changing verification code, rather than static CVV2, which is generated by the issuer and accessed through a verification application, enhancing security by removing physical numbers from the card and requiring additional authentication.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If static CVV2 code is used on payment card, then card-not-present transactions can be verified, but the system becomes vulnerable to fraud and requires frequent card replacements
Solution Approach 1:
The patent applies dynamics by transitioning from a static CVV2 code printed on the card to a dynamic code that changes periodically or randomly. The dynamic code is generated by a verification application on the user's device rather than being fixed on the physical card, allowing the verification value to adapt over time and preventing fraud from compromised static codes.
Solution Approach 2:
The patent introduces an intermediary verification application that acts as a mediator between the payment card and the verification system. Instead of directly using the static CVV2 printed on the card, the system uses this intermediate software layer to generate and provide dynamic verification codes, adding a security buffer that prevents direct exploitation of card information.
2Reliability
If CVV2 expires within a certain timeframe, then security is maintained, but new cards must be sent to cardholders frequently increasing costs
Solution Approach 1:
The patent implements self-service by allowing the verification code to refresh automatically through the verification application without requiring physical card replacement. The system serves itself by generating new dynamic codes through software updates rather than requiring manual intervention to issue new physical cards, eliminating the cost and logistics of card replacement while maintaining security.
Solution Approach 2:
The patent changes the parameter of the verification code from static to dynamic, allowing it to change over time without changing the physical card itself. This parameter change enables the verification value to expire and refresh digitally, maintaining security requirements while eliminating the need for physical card replacement and associated costs.
3Reliability
If CVV2 is compromised through data breach or card theft, then fraud prevention fails, but financial institutions must send new cards
Solution Approach 1:
The patent applies dynamics by making the verification code changeable and renewable through software rather than being fixed on the physical card. When compromise is detected or suspected, the system can immediately invalidate the old dynamic code and generate new ones through the verification application, maintaining fraud prevention without requiring physical card replacement and simplifying card management.
Data Source
AI summary
Embodiments described herein disclose methods and systems for authorizing a payment card transaction using dynamic codes. The system can issue a payment card to a user. The payment card can be associated with a verification application accessible by a device associated with the user. The verification application can include a dynamic code associated with the payment card. The system can receive a request for authorization for a transaction using the payment card from a remote computing device, and the request can include an identifier of the payment card and a verification code. The system can identify the payment card using the identifier of the payment card and can compare the verification code with a value of the dynamic code at the time of the transaction. The system can authorize the transaction when the verification code matches the value of the dynamic code at the time of the transaction.