Identity Verification Using Payment Instrument and Merchant POS
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Solution Overview
Problem
Traditional identity verification technologies are inadequate due to the widespread availability of personally identifying information (PII) from data breaches, leading to fraud and denial of services to underserved populations who lack sufficient PII, such as immigrants and minors.
Innovation Solution
An unconventional identity verification (IDV) system using multi-dimensional processes that combine factors like phone number verification, bank account credentials, legally identifying documents, and payment card information to generate a score indicating the accuracy and confidence of identity verification, allowing for gradated access to services and reducing fraud through interactions with merchants and alternative data sets.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional identity verification using PII is used, then verification process is simple, but verification reliability deteriorates due to widespread PII availability from data breaches
Solution Approach 1:
The verification system segments identity verification into multiple independent factors (payment information, device information, location information, behavioral information) rather than relying on a single PII-based check. Each factor is evaluated separately and combined to produce an overall verification score, improving reliability while maintaining manageable complexity through modular processing.
Solution Approach 2:
The system uses composite verification by combining multiple types of data (payment card information, device identifiers, location data, behavioral patterns) into a unified verification score. This composite approach creates a more robust verification mechanism that is resistant to fraud while systematically managing the complexity of handling multiple data sources.
2Adaptability or versatility
If strict PII-based verification is required, then fraud is reduced, but accessibility deteriorates for underserved populations lacking sufficient PII
Solution Approach 1:
The verification system is designed to be universal by accommodating multiple verification pathways. It can verify identities using traditional PII methods when available, or alternatively use payment information and device information for populations without sufficient PII. This multi-functional approach maintains verification reliability across diverse user groups while significantly improving service accessibility.
Solution Approach 2:
The system changes verification parameters dynamically based on the user's profile and available data. For users with insufficient PII, the system adjusts by weighing alternative factors (payment behavior, device information, location consistency) more heavily, allowing reliable verification without requiring traditional documentation, thus expanding accessibility to underserved populations.
3Measurement precision
If multiple verification factors are used, then verification accuracy improves, but processing time increases
Solution Approach 1:
The system applies partial verification by collecting and evaluating only the most relevant factors needed for each specific verification case, rather than requiring all possible data points. It uses a tiered approach where essential factors are verified first, and additional factors are collected only if needed to reach a confident verification decision, thereby maintaining high accuracy while minimizing unnecessary processing time.
Data Source
AI summary
Identity verification (IDV) using a payment processing platform is described herein. In an example, a computing device can receive identifying information of a user. The computing device can request payment information of a payment instrument of the user and can receive the payment information of the payment instrument of the user. The computing device can prompt the user to present the payment instrument at a point-of-sale (POS) of a trusted merchant and can verify the identity of the user based at least in part on verification information received from a merchant device operable by the trusted merchant at the POS.