Location-Based Single-Use Wallet Payments for Fraud Control
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Solution Overview
Problem
Existing digital payment systems lack secure and efficient methods for issuing single-use payment cards based on user location, which can reduce fraud and optimize transaction management.
Innovation Solution
A system and method for issuing a single-use payment card string based on the location of a computing device, using GPS or satellite navigation systems, and managing it through a digital wallet application, enabling secure and efficient transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional digital payment systems use static payment cards, then ease of operation is improved, but security is worsened due to fraud risks
Solution Approach 1:
The patent implements dynamic payment cards that automatically update their parameters (card number, expiry date, CVV) based on location, time, and transaction context. This dynamic nature ensures that each payment uses a fresh set of credentials, preventing fraud from stolen card information while maintaining ease of use through automated updates without user intervention.
Solution Approach 2:
The system applies different security parameters locally based on geographic location. Payment cards issued in different locations have location-specific identifiers and validity periods. This localized approach allows the system to maintain high security in high-risk areas while providing convenient access in trusted locations, resolving the contradiction between security and ease of operation.
2Reliability
If the system issues single-use payment cards for each transaction, then security is improved, but device complexity and transaction time are worsened
Solution Approach 1:
The system pre-generates pools of payment card parameters before transactions occur. When a payment is needed, the system quickly selects and assigns pre-prepared card numbers, expiry dates, and CVV codes from these pools, rather than generating everything in real-time. This preliminary preparation significantly reduces transaction complexity and time while maintaining the security benefits of single-use cards.
Solution Approach 2:
The system implements a lifecycle management approach where payment card parameters are issued for single use, then automatically discarded after validation. The infrastructure for generating and managing these parameters is recovered and reused for subsequent transactions. This approach maintains high security through single-use cards while reducing overall system complexity through efficient resource management.
3Ease of operation
If payment cards remain active in digital wallet, then ease of operation is improved, but security is worsened due to ongoing fraud risk
Solution Approach 1:
The system implements periodic automatic updates of payment card parameters at defined intervals (daily, weekly, or per transaction). This periodic regeneration of card numbers, expiry dates, and CVV codes ensures that even if card data is compromised, the window for fraudulent use is limited to the period between updates. Meanwhile, the cards remain continuously accessible in the digital wallet, maintaining ease of operation.
Solution Approach 2:
Payment cards in the digital wallet are made dynamic rather than static. The system continuously monitors location, time, and transaction context to automatically update card parameters. This dynamic behavior reduces fraud exposure by ensuring cards are valid only under specific conditions, while maintaining ease of access as users simply select from their stored cards without manual updates.
Data Source
AI summary
A system, and a product for purchasing goods with a digital wallet application is disclosed. The system includes an issuer server comprising processing circuitry. The processing circuitry is configured to: issue a single-use payment card string based on a location of a computing device comprising a digital wallet application. The digital wallet application is configured to enable payment by transferring the payment string to a payment terminal at a point of sale (POS) of a merchant and the payment terminal is configured to request approval for a requested amount of money from the issuer server and to receive the requested amount of money after the approval from the issuer server.