Transaction Authentication Using Habit Data
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Solution Overview
Problem
Current transaction systems fail to allow customers to conduct financial transactions without their payment card or device, limiting their ability to make purchases even when they have forgotten their card or device, especially at frequented locations.
Innovation Solution
A financial institution computing system that uses customer habit information and a customer indicator to authenticate and authorize transactions, enabling subsequent transactions even without the payment card or device, by determining the transaction's conformity with the customer's habit data and applying conditions such as time, location, and amount thresholds.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If a payment card or device is required for transaction authentication, then transaction security is maintained, but customers cannot conduct transactions when they lose or forget their card or device
Solution Approach 1:
The patent creates a digital copy of the customer's transaction authorization capability by storing their transaction habits and patterns in a database. Instead of requiring the physical card or device, the system captures transaction requests and authenticates them by comparing against stored habit information, effectively copying the authentication function from the physical card to a digital habit profile.
Solution Approach 2:
The patent replaces the mechanical/physical authentication system (swiping or dipping a payment card) with an electronic/data-based authentication system. The transaction circuit receives electronic transaction requests and authenticates them by comparing data characteristics against stored habit information, substituting the physical card-swiping mechanism with electronic data analysis.
2Measurement precision
If habit information analysis is implemented for authentication, then transaction authorization accuracy is improved, but system complexity increases
Solution Approach 1:
The system performs preliminary actions by collecting and storing customer transaction habit information in advance during normal transactions. The habit information database is populated beforehand with patterns of legitimate customer behavior, which are then used for rapid authentication comparison when transaction requests are received, eliminating the need for complex real-time analysis.
Solution Approach 2:
The patent introduces an intermediary component - the habit information database - that mediates between the transaction request and the authentication decision. Instead of directly comparing transaction details with customer profiles, the system uses the habit information as an intermediary layer to evaluate whether the transaction pattern matches established behaviors, simplifying the authentication logic.
Data Source
AI summary
Systems, methods, and computer-readable storage media utilized for authorizing transactions without a payment card present. One method includes receiving a habitual transaction request including a customer indicator and identifying characteristics of the habitual transaction request. The method further includes identifying, utilizing the customer indicator, habit information of a customer and authenticating the habitual transaction request based on the characteristics of the habitual transaction request conforming with the habit information. The method further includes, in response to authenticating the habitual transaction request, authorizing the habitual transaction request and receiving a non-habitual transaction request including the customer indicator. The method further includes determining that the customer is active, and the customer indicator is approved to conduct a non-habitual transaction and authorizing the non-habitual transaction request based on the determination and the customer indicator being approved to conduct the non-habitual transaction and transmitting a notification indicating the non-habitual transaction request was authorized.