Mobile Device Management of Contactless Transaction Devices

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Solution Overview

Problem

Current methods for managing contactless transaction devices, such as smart cards and payment cards, are limited by the need for specific infrastructure and user access, particularly for issuers without ATM networks, and pose challenges in managing PINs and counter resets, especially for passive devices without data connections.

Innovation Solution

A computer-implemented method using a mobile device to manage contactless transaction devices through a mobile service application, enabling authentication, local wireless communication, and script execution for operations like PIN changes, counter resets, and risk management, via NFC technology, allowing remote management without relying on dedicated infrastructure.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If contactless transaction devices use NFC technology for contactless transactions, then transaction convenience is improved, but device management capability deteriorates

Engineering Contradiction:

Improvetransaction convenienceVSAvoiddevice management capability

Core Design Contradiction:

Ease of operationVSAdaptability or versatility

Solution Approach 1:

The mobile device is designed to perform multiple functions: it serves as both a contactless payment terminal and a management device for the transaction device. The mobile device includes an NFC interface for contactless transactions and the same NFC interface (or communication module) for management operations, allowing one device to fulfill multiple roles that previously required separate infrastructure

Inventive Principle:

Principle #6Universality (Multi-functionality)

Solution Approach 2:

The system enables users to manage their own transaction devices (PIN changes, counter resets) through the mobile application without requiring external infrastructure like ATMs or dedicated management terminals. The user's own mobile device becomes the management tool, eliminating the need for service provider infrastructure

Inventive Principle:

Principle #25Self-service

2Adaptability or versatility

If issuers without ATM networks need to provide administrative functionality, then service coverage is improved, but infrastructure complexity increases

Engineering Contradiction:

Improveservice coverageVSAvoidinfrastructure complexity

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The management functionality is extracted from traditional fixed infrastructure (ATMs, dedicated management terminals) and relocated to the user's mobile device. This removes the requirement for issuers to maintain complex physical infrastructure networks, allowing even issuers without ATM networks to provide administrative functions

Inventive Principle:

Principle #2Taking out (Extraction)

Solution Approach 2:

The patent replaces the mechanical/physical infrastructure system (ATMs, loading stations, contact interfaces) with a software-based system running on mobile devices. Management operations that previously required physical presence at specific locations can now be performed remotely through mobile applications using contactless communication

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

3Reliability

If contactless devices limit transactions to protect against misuse, then security is improved, but operational flexibility deteriorates

Engineering Contradiction:

ImprovesecurityVSAvoidoperational flexibility

Core Design Contradiction:

ReliabilityVSEase of operation

Solution Approach 1:

The system performs preliminary authentication and authorization through the mobile application before allowing management operations. The mobile device authenticates the user and establishes secure communication with the transaction device before executing any management functions, ensuring security is maintained while enabling flexible operations

Inventive Principle:

Principle #10Preliminary action

Applied Scientific Principles

This section explains which scientific principles are used to turn an abstract innovation direction into a practical engineering solution.

Function Achieved in This Case

Enables secure and efficient management of contactless transaction devices, including passive wearables, by authenticating users and executing management operations on the device, ensuring compliance with regulatory standards like PSD2 for strong customer authentication and counter resets, even for issuers without extensive infrastructure.

Implementation Method 1

contactless transactions use near field communication (NFC) technology to provide payment credentials from the card to a merchant device

Methodology Applied

Scientific EffectNear field communication (NFC): Electromagnetic Induction

Data Source

PatentEP3761248A1Transaction device management

Publication Date: 2021.01.06 MASTERCARD INT INC

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AI summary

There is provided a computer-implemented method for management of a transaction device (8) with a contactless interface, the method being performed by a mobile device (4). The method comprises accessing (112) a mobile service application (704) installed on the mobile device (4), authenticating (114) a user at the mobile device (4), establishing (116) a management operation associated with the transaction device (8). The method further comprises the mobile device (4) requesting a response from the transaction device (8) associated with the management operation via the contactless interface, the transaction device (8) generating the response and providing it to the mobile device (4); and the mobile service application (704) using the response to effect the management operation. There is also provided a suitably configured mobile device (4) and transaction device (8) for performance of the above-described methods.