Location-Bound Virtual Credentials for Card-Not-Present Transactions
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Solution Overview
Problem
Existing systems limit the use of virtual credentials to online transactions, preventing their application in in-person card-not-present transactions due to security concerns and the need for physical card presentation.
Innovation Solution
A credential system that remotely creates a virtual credential bound to a specific physical location, enabling secure in-person transactions by mapping merchant locations and transaction terminals, using multi-factor authentication, and verifying the location of use through tokenized information.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If virtual credentials are used for online transactions only, then security is maintained through controlled access, but the versatility of virtual credentials is limited and cannot be applied to in-person transactions
Solution Approach 1:
The patent applies local quality by binding the virtual credential to specific transaction terminals at specific physical locations. The credential system creates a mapping between physical locations and transaction terminals, then binds the virtual credential to particular terminals. This localized binding allows the credential to be used in-person at authorized locations while maintaining security controls, thus expanding versatility without compromising security.
Solution Approach 2:
The patent introduces a credential system as an intermediary between the virtual credential and the transaction terminal. This intermediary system verifies the binding between the credential and terminal, authenticates the user through multi-factor authentication, and coordinates the transaction authorization. The intermediary ensures secure in-person usage while enabling new application scenarios.
2Ease of operation
If physical card presentation is required for in-person transactions, then security is ensured through physical verification, but convenience is reduced and card-not-present transactions are not supported
Solution Approach 1:
The patent creates a virtual copy of the primary payment credential that can be used in place of the physical card. The virtual credential contains the necessary authentication information to transact at bound terminals without requiring physical card presentation. Users can authorize transactions remotely through multi-factor authentication, eliminating the need to physically present the card while maintaining security through the credential binding and verification system.
Solution Approach 2:
The patent replaces the mechanical system of physical card insertion or swiping with an electronic authentication system. Instead of requiring physical card presentation at the terminal, the system uses electronic verification of the virtual credential binding, user authentication through multiple factors, and digital authorization. This substitution maintains security verification while significantly improving convenience and enabling card-not-present transactions.
3Object-affected harmful factors
If virtual credentials are bound to specific physical locations and terminals, then fraud risk is reduced through location verification, but system complexity increases due to mapping and verification requirements
Solution Approach 1:
The patent applies preliminary action by pre-establishing the binding between virtual credentials and specific transaction terminals before transactions occur. The credential system creates and stores the mapping between physical locations, terminals, and credentials in advance. When a transaction is initiated, the system simply verifies whether the credential is bound to the current terminal rather than performing complex real-time analysis. This preliminary binding reduces fraud risk while keeping the verification process relatively simple.
4Reliability
If multi-factor authentication is implemented for virtual credential authorization, then security is enhanced through additional verification layers, but transaction time increases due to multiple authentication steps
Solution Approach 1:
The patent applies preliminary action by performing user authentication through multi-factor authentication before the actual transaction occurs. The credential system verifies the user's identity and authorization status in advance, storing the authentication result. When the transaction is initiated at the bound terminal, the system can quickly retrieve the pre-verified authentication status rather than repeating all authentication steps. This reduces the time loss during the actual transaction while maintaining enhanced security through the preliminary multi-factor verification.
Data Source
AI summary
In some implementations, a credential system may create a virtual credential bound to a physical location associated with a transacting entity based on a request from a user device. The credential system may send information to a transaction terminal at the physical location bound to the virtual credential to register the virtual credential and identify a user that owns an account associated with the virtual credential. The credential system may provide, to the user device, tokenized information related to the virtual credential. The credential system may receive the tokenized information from a transaction terminal requesting authorization for the transaction. The credential system may send, to the transaction terminal requesting the authorization for the transaction, an authorization decision associated with the transaction based on whether the transaction terminal is present at the physical location bound to the virtual credential.