Emulated Mag Stripe Chip Capability Indicator for Legacy Terminals
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Solution Overview
Problem
Legacy Point of Sale (POS) terminals lack the ability to utilize the more secure chip capabilities of credit/debit cards and emulated mag stripe technologies, resulting in insecure transactions and liability issues for merchants who do not support chip technology.
Innovation Solution
Implementing a method that uses a unique 3-digit service code in emulated mag stripe data to indicate chip capability, enabling additional security measures and communication with servers to facilitate more secure transactions, including dynamic authentication values like the dynamic card verification value (dCVV) and application transaction counter (ATC), which can be used with legacy mag stripe terminals and contactless NFC transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If emulated mag stripe is used with legacy terminals, then compatibility with existing payment systems is maintained, but transaction security is compromised
Solution Approach 1:
The patent introduces a server as an intermediary between the legacy terminal and the payment network. The server receives the emulated mag stripe data, detects the chip capability indicator, and facilitates secure communication with the user device to obtain dynamic authentication values. This intermediary enables security enhancement without requiring terminal upgrades.
Solution Approach 2:
The patent adds a new dimension of security by incorporating dynamic authentication values (dCVV, ATC) into the traditional mag stripe transaction flow. This transforms a static, insecure mag stripe protocol into a dynamic, secure transaction by adding temporal and cryptographic dimensions to the authentication process.
2Object-affected harmful factors
If dynamic authentication values are implemented, then fraud risk is reduced, but system complexity increases
Solution Approach 1:
The patent extracts the complex authentication logic from the terminal and relocates it to a backend server. The terminal only needs to transmit data, while the server handles the complex operations of detecting chip capability, generating challenges, and verifying dynamic authentication values. This extraction reduces terminal complexity while maintaining security.
Solution Approach 2:
The user device performs self-service by generating and providing its own dynamic authentication values in response to server challenges. This eliminates the need for the terminal or server to complexly generate these values, as the secure element in the user device autonomously produces them.
3Reliability
If chip capability indication is added to mag stripe data, then secure transactions are enabled on legacy terminals, but data transmission requirements increase
Solution Approach 1:
The patent applies local quality by embedding a compact chip capability indicator (service code digits 2-3) within the existing mag stripe data structure. This localized modification allows the system to identify chip-capable devices without requiring complete data restructuring or significant increases in transmission volume.
Data Source
AI summary
In one embodiment, the present invention provides a method and communication device with an emulated mag stripe capability. Information is transmitted in the mag stripe data indicating that the communication device has chip capability as well. This information is used by a server on the back-end (acquirer, issuer, network) to take advantage of that chip capability. For example, additional fields can be used for security measures and communication over the telecommunications network with the device can be performed to provide a more secure communication with a terminal. In one embodiment, the additional information is provided in the service code, using a unique 3 digit code other than 2xx.