Flexible Transaction Identifier for Secure Legacy Interoperability
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Traditional electronic transaction systems face challenges in interoperability with legacy systems and increased fraud risks due to high standardization, limiting the adoption of new technologies and increasing fraudulent transactions.
Innovation Solution
A computer-implemented electronic transaction method using a flexible transaction identifier that includes a routing identifier, a serial number not directly associated with the user, and contextual information, which is verified and authenticated by an Authenticator to initiate transactions securely and flexibly.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a high degree of standardization is used in electronic transaction systems, then interoperability and fraud detection are improved, but the speed of introducing new developments is limited
Solution Approach 1:
The transaction identifier is segmented into multiple components: a legacy-compatible portion (routing identifier) that ensures interoperability with existing systems, and a new flexible portion (serial number not directly associated with user) that enables innovative transaction types. This segmentation allows simultaneous support for standardized processing and new development capabilities.
Solution Approach 2:
A transaction identifier intermediary structure is introduced that sits between legacy account numbers and new transaction systems. This intermediary contains both legacy-compatible routing information and new flexible serial numbers, acting as a bridge that allows new transaction types to coexist with and be processed by legacy infrastructure.
2Adaptability or versatility
If legacy systems are supported with high standardization, then interoperability is maintained, but the likelihood of fraudulent transactions being approved increases
Solution Approach 1:
The transaction identifier separates routing functions (handled by legacy-compatible routing identifier) from authentication functions (handled by new verification mechanisms using contextual information and deterministic verification values). This segmentation allows legacy systems to handle routing while new security mechanisms handle fraud detection.
Solution Approach 2:
The system changes the parameters of the transaction identifier from traditional account-based identification to a hybrid structure including contextual information and deterministic verification values. This parameter change enables enhanced fraud detection capabilities while maintaining compatibility with legacy routing infrastructure.
3Ease of operation
If direct user association (PAN/card number) is used for transaction identification, then account tracking is simplified, but flexibility in initiating transactions is reduced
Solution Approach 1:
An intermediary serial number not directly associated with the user is introduced between the user and the transaction system. This intermediary identifier enables flexible transaction initiation (users can share or revoke identifiers) while the system maintains tracking capability through the deterministic relationship between the serial number, contextual information, and verification values.
Solution Approach 2:
The system changes from direct user identification (PAN) to indirect identification through serial numbers with contextual parameters. This parameter change enables users to have multiple transaction identifiers, share them selectively, and revoke them independently, greatly increasing transaction flexibility while maintaining account traceability through the verification mechanism.
Data Source
AI summary
Currently, many aspects of electronic transactions have become digital, and may therefore be performed online using mobile devices. However, many of these possibilities have been adopted by no longer supporting legacy systems—in the newer and emerging economies, this does not create a major problem as they have few consumers using legacy systems and methods. But this lack of interoperability limits the adoption of legacy-compatible systems and method. It also restricts their adoption in other countries. In addition, the increased use of payment through such electronic transactions is increasing the frequency and amount of fraudulent transactions.A computer-implemented electronic transaction method 400 is provided comprising: providing 270 a transaction identifier 150 to initiate an electronic transaction, the transaction identifier 150 comprising: a routing identifier 160; a serial number (174) not directly associated with the user 210; contextual information 190 comprising one or more parameters associated with the generation of the transaction identifier 150; verification information 180 comprising a value calculated deterministically using the serial number 174 and the contextual information 190. The transaction identifier 150 is conveyed to an Authenticator 600 using the routing identifier 160; who authenticates the transaction identifier 150 using the verification information 180, the serial number (174) and the contextual information 190, and allows initiation if it is considered authentic.The authenticator has a high degree of freedom in defining the validity of the data contents. The improved transaction identifier may be adequately authenticated using data and values comprised in the improved transaction identifier itself. Optionally, additional external data or values (not comprised in the improved transaction identifier) may also be used. By using a serial number not directly associated with the user, more possibilities and more flexibility are provided to initiate electronic transactions, and in particular, electronic payment transactions.