Identity-Verified Payment Initiation With Context-Based Fraud Control
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Solution Overview
Problem
Existing payment systems face challenges in verifying the identity of the payor, leading to either over-inclusive fraud prevention that blocks legitimate transactions or under-inclusive fraud prevention that allows fraudulent transactions, particularly in situations where multiple forms of identification are required.
Innovation Solution
An augmented passport or unique identifier that integrates a payment mechanism, coupled with an electronic scanning device and a server system, allows for identity verification to automatically initiate payments based on predefined context settings, ensuring secure and efficient transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional payment systems require separate verification of identification and payment, then fraud prevention can be applied, but legitimate transactions may be blocked due to over-inclusive fraud prevention measures
Solution Approach 1:
The patent merges the identification verification function and payment initiation function into a single integrated system. The augmented passport combines the unique identifier with a payment mechanism, allowing identity verification and payment to occur simultaneously through a single scanning action, thereby reducing false blocking while maintaining fraud prevention
Solution Approach 2:
The augmented passport serves multiple functions: it acts as both a unique identifier for identity verification and as a payment mechanism. This multi-functionality eliminates the need for separate payment cards or devices, enabling legitimate transactions to proceed smoothly while maintaining security through the integrated verification and payment system
2Measurement precision
If multiple forms of identification are required for verification, then identity confirmation accuracy improves, but the complexity and time required for verification increases
Solution Approach 1:
The augmented passport consolidates multiple identification requirements into a single multi-functional device. It contains both the unique identifier for verification and the payment mechanism, eliminating the need to present and verify multiple separate forms of identification while maintaining comprehensive identity confirmation accuracy
3Productivity
If payment mechanisms are integrated with identification documents, then convenience and speed of transaction improves, but security risks and fraud potential increases
Solution Approach 1:
The system incorporates feedback mechanisms where the server verifies the unique identifier and checks account status before authorizing payment. The clearinghouse receives verification information and provides feedback on payment authorization, creating multiple layers of security review that prevent fraud while maintaining fast transaction processing
Solution Approach 2:
The patent introduces a server and clearinghouse as intermediary systems between the augmented passport scanner and the actual payment execution. These intermediaries verify identification, check account balances, and authorize transactions, adding security layers that prevent fraud while enabling rapid payment processing
Data Source
AI summary
Initiating payments using identity verification. A personal identifier that uniquely identifies a prospective payor can also initiate a requested payment without the need for a payment mechanism other than the personal identifier itself. Whether payment is initiated by the personal identifier can depend on a context in which the payment request is made.