Dynamic Credit Card With Encoder And Display For Fraud Protection
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Solution Overview
Problem
Current credit card systems are vulnerable to fraud, particularly as traditional magnetic stripe cards can be copied and used later, and they lack full utilization of bandwidth, with American Express smart cards requiring hardware changes in establishments.
Innovation Solution
A dynamic credit card system that periodically changes its visible number, utilizing a battery, processor, and display, with an encoder to write the number to the magnetic stripe, and optionally creating magnetic fields, allowing for secure transactions without altering existing readers, using timing signals like WWVB, DCF, or GPS signals for synchronization.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a static magnetic stripe is used to store credit card information, then traditional readers can read the information, but the card is vulnerable to copying and fraud
Solution Approach 1:
The patent applies dynamics by transitioning from a static magnetic stripe to a dynamic display system. The credit card number is no longer fixed on the magnetic stripe but is displayed dynamically on an LCD or LED screen, changing periodically or on-demand. This dynamic approach prevents copying while maintaining reader compatibility through the encoder that can write to traditional magnetic stripes when needed.
Solution Approach 2:
The patent replaces the mechanical/magnetic storage system with an electronic display system. Instead of relying solely on magnetic stripe storage, the invention uses electronic displays (LCD, LED, OLED) to show the credit card number, supplemented by an encoder that can create magnetic fields for traditional readers. This substitution eliminates the copying vulnerability while preserving backward compatibility.
2Reliability
If the credit card number changes frequently, then fraud protection is improved, but synchronization with authorization facilities becomes more difficult
Solution Approach 1:
The patent implements feedback mechanisms including timing signals (WWVB, GPS, DCF) that continuously synchronize the card's internal clock with external time sources. This feedback loop ensures the card number changes are synchronized with the authorization facility's expectations, preventing timing mismatches while maintaining frequent number changes for security.
Solution Approach 2:
The patent employs periodic action by changing the credit card number at regular intervals (e.g., every minute, every hour, or daily) rather than continuously. This periodic approach balances security needs with synchronization requirements, allowing the authorization facility to anticipate and prepare for number changes at known intervals while still providing frequent updates to prevent copying.
3Adaptability or versatility
If an encoder is added to write to the magnetic stripe, then compatibility with traditional readers is maintained, but the magnetic stripe bandwidth is fully utilized for additional security information
Solution Approach 1:
The patent applies universality by making the credit card compatible with multiple reader types. The encoder component enables the card to write to traditional magnetic stripe readers, while the dynamic display system works with modern electronic readers. This multi-functionality ensures the card can operate across different infrastructure environments without requiring establishments to upgrade their hardware.
Solution Approach 2:
The patent implements nesting by embedding multiple systems within the credit card structure. The dynamic display system (LCD/LED), encoder, battery, and timing circuitry are all nested within the card body. The encoder can write to the magnetic stripe which is itself nested within the card, creating layers of functionality where each component serves multiple purposes - the magnetic stripe both stores traditional information and can receive dynamic updates from the encoder.
Applied Scientific Principles
This section explains which scientific principles are used to turn an abstract innovation direction into a practical engineering solution.
Function Achieved in This Case
The dynamic credit card system significantly reduces fraud by ensuring that credit card numbers change frequently, utilizing free magnetic stripe bandwidth for additional information, and providing real-time feedback and security features like tamper detection, while maintaining compatibility with traditional readers.
Implementation Method 1
Alternatively, circuitry that creates magnetic fields that can be read by a traditional credit card reader may be employed such that a magnetic stripe may be removed altogether
Data Source
AI summary
A dynamic credit card is provided in which a secure credit card number (e.g., a secret/hidden credit card number) is encoded based on a timing signal (e.g., an internal counter) to provide a dynamic credit card number. This dynamic number may be displayed to a user via a display (e.g., so that online purchases can be made) or written onto a magnetic stripe such that the number may be processed by traditional credit card merchants (e.g., swiped). At a remote facility, the dynamic number may be decoded based on time (and/or a counter/key number/equation) or the facility may have the secure number and perform the same function as the dynamic credit card (e.g., encode using time data as a parameter to the encoding equation) and compare the resultant dynamic number to the dynamic number received. Thus, a dynamic credit card number may change continually or periodically (e.g., every sixty seconds) such that credit card numbers may not be copied by thieves and used at later times. A dynamic verification code may be utilized in addition to, or in lieu of, a dynamic credit card number.