Enabling Card Simulates Magnetic Swipe for Secure POS Transactions
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Solution Overview
Problem
Existing payment systems using magnetic cards and RFID devices lack sufficient security, as security codes and PINs can be compromised, and existing solutions do not effectively address the need for enhanced transaction security.
Innovation Solution
A payment device and method that utilizes an enabling card with a processor and coil to simulate a magnetic card swipe by generating a magnetic field based on encrypted information received from a mobile device, ensuring secure transactions without storing sensitive information on the card.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If magnetic stripe cards store cardholder information on the card, then transactions can be completed, but security is compromised as information can be stolen through skimming
Solution Approach 1:
The patent extracts sensitive cardholder information from the magnetic stripe card and relocates it to the mobile device. The card itself no longer stores financial data, but rather contains only a unique identifier. This extraction eliminates the risk of information theft through skimming while maintaining the ability to complete transactions.
Solution Approach 2:
The mobile device serves as an intermediary between the card and the payment system. It receives the unique identifier from the card, retrieves the actual cardholder information securely from the user's mobile application, and presents this information to the payment terminal. This intermediary approach allows transactions to proceed without compromising card security.
2Reliability
If security codes and PINs are required for transactions, then some security protection is provided, but these can still be stolen and compromised
Solution Approach 1:
The patent removes the vulnerability of stored security codes and PINs by extracting authentication requirements from the card itself. Instead of the card containing stealable security information, the mobile device performs authentication through the mobile application, which uses stronger authentication mechanisms that are not stored on the card.
Solution Approach 2:
The patent replaces the traditional mechanical magnetic stripe reading system with a wireless communication system. The mobile device communicates with the payment terminal wirelessly, eliminating the need for physical card insertion and magnetic stripe reading, thereby removing the vulnerability of skimming attacks.
3Reliability
If cards have embedded chips or RFID devices to improve security, then transaction security is enhanced, but device complexity increases
Solution Approach 1:
The patent uses a simple, inexpensive unique identifier on the card rather than complex embedded chips or RFID devices. This simple identifier serves its purpose of linking the card to the mobile device without adding complexity. The complex authentication and communication functions are performed by the mobile device, which already exists in the user's ecosystem.
Solution Approach 2:
The patent leverages the existing mobile device and mobile application ecosystem to perform security functions. Instead of adding specialized security hardware to the card, the system uses the mobile device's existing capabilities (wireless communication, authentication mechanisms) to provide security, making the card simpler while maintaining security through the mobile device's universal functions.
4Ease of operation
If sensitive information is stored on the card for easy access, then transactions can be completed quickly, but security risks increase
Solution Approach 1:
The patent extracts sensitive information storage from the card and relocates it to the mobile device. The card only holds the unique identifier, which is minimal data. The actual cardholder information remains in the mobile application, accessed securely through the mobile device. This extraction maintains ease of operation while significantly improving security.
Solution Approach 2:
The patent performs preliminary action by pre-storing cardholder information securely in the mobile application before the transaction occurs. When a transaction is needed, the information is already available in the mobile device, eliminating the need for the card to store this information. This preliminary preparation maintains transaction speed while improving security.
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
This solution significantly enhances transaction security by separating sensitive information from the card, making it easily replaceable if lost or stolen, and minimizing risks of PIN disclosure and skimming attacks, while maintaining compatibility with existing payment terminals and allowing for periodic updates and enhanced security features.
Implementation Method 1
a coil carried by the enabling card for generating a magnetic field in response to the digital signal is simulate the swipe of card in the reader
Data Source
AI summary
The invention relates to an enabling card as well as a system and method for completing a financial transaction in a P.O.S. terminal comprising: a processor carried by the enabling card for establishing a connection with a mobile device; receiving secure information from a mobile device and generating a digital signal; a coil carried by the enabling card for generating a magnetic field in response to the digital signal to simulate the swipe of card in the P.O.S. terminal and complete the financial transaction.