IC Card Transaction System with Dynamic Authorization Switching
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Solution Overview
Problem
Current debit and credit card technologies, particularly magnetic strip cards, are vulnerable to fraud due to stolen account numbers and data breaches, and the transition to integrated circuit (IC) cards has limitations in processing requests for funds.
Innovation Solution
A system and method for accessing funds from a financial account using an IC card, where if an initial transaction request is denied, the system automatically provides additional options for processing the request through alternate transaction types without requiring the cardholder to reinsert their card.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If IC card transaction uses a single transaction type for security, then fraud resistance is improved, but transaction success rate deteriorates when initial request is denied
Solution Approach 1:
The system dynamically switches between different transaction types (online and offline) based on the response from the authorization server. When online authorization fails or is unavailable, the system automatically transitions to offline transaction processing, allowing the transaction to complete without requiring card reinsertion.
Solution Approach 2:
The system changes the transaction processing mode parameter from exclusively online to a flexible state that can operate in either online or offline mode. This parameter change enables the terminal to adapt to different authorization scenarios while maintaining security through IC card technology.
2Reliability
If IC card requires reinsertion for alternate transaction types, then security is improved, but user convenience deteriorates
Solution Approach 1:
The system maintains continuous transaction processing capability by keeping the IC card inserted in the terminal while switching between online and offline transaction types. The useful action of fund access continues without interruption or requiring the user to remove and reinsert the card.
Solution Approach 2:
The terminal automatically determines and switches between transaction types without requiring user intervention. The system self-manages the transition from online to offline mode when authorization fails, eliminating the need for the user to manually reinsert the card or initiate new transactions.
3Reliability
If IC card uses unique transaction codes for each action, then card duplication fraud is prevented, but transaction flexibility deteriorates when codes are denied
Solution Approach 1:
The transaction system is segmented into two independent pathways: online transactions with unique transaction codes and offline transactions with alternative authentication. When online code-based transactions are denied, the system switches to the offline pathway, providing flexibility while maintaining security through different authentication mechanisms.
Data Source
AI summary
Methods, systems and apparatus are provided for facilitating financial transactions using an IC type financial card presented at a terminal. A requested transaction for monetary value is processed via a first transaction type. If the transaction is successful, monetary value (such as cash or a monetary value ticket or receipt) is dispensed to the user. If unsuccessful, the card is not ejected and the transaction is processed via a second transaction type. The first transaction type might be a PIN based ATM or ticket transaction and the second transaction type might be a signature based transaction.