Mobile Payment Authorization via Proximity Verification
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Solution Overview
Problem
As mobile payments become more widespread, there is a growing risk of fraudulent transactions due to the potential theft of payment credentials, making it difficult for merchants and users to verify the legitimacy of payment transactions.
Innovation Solution
A system that authorizes mobile payment transactions based on the proximity of an authenticating client device to the Point of Sale (POS) module, using an anti-fraud service to compare the location information of the client device with the POS module to determine the legitimacy of the transaction, and requesting additional authentication if the locations do not match.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If mobile payment credentials are transmitted via POS module, then convenience of payment is improved, but security against fraudulent transactions deteriorates
Solution Approach 1:
The patent introduces an anti-fraud service as an intermediary between the POS module and payment processing system. This service receives payment requests, obtains location information from multiple sources (client device, POS module, network requests), compares these locations, and only permits payment processing if they match within a threshold distance. This intermediary layer maintains the convenience of mobile payments while adding security verification without requiring changes to the basic payment flow.
Solution Approach 2:
The system implements feedback by continuously monitoring and comparing location information from multiple sources. The anti-fraud service receives location data, compares it against expected locations, and provides feedback by either permitting or blocking the transaction based on this comparison. This feedback mechanism ensures that only geographically consistent transactions are processed, preventing credential theft while maintaining normal payment operations.
2Reliability
If location verification is added to payment process, then security is improved, but device complexity increases
Solution Approach 1:
The anti-fraud service performs multiple functions within a single system component: it receives payment requests, obtains location information from multiple sources (client device GPS, POS module location, network request geolocation), compares these locations, and makes authorization decisions. By consolidating these diverse functions into one universal service, the system achieves comprehensive security verification without proportionally increasing overall system complexity.
Solution Approach 2:
The system utilizes existing location capabilities of client devices and POS modules without requiring additional specialized hardware. The client device's existing GPS or location services, the POS module's location data, and network-based geolocation all serve the security function automatically. This self-service approach allows location verification to be implemented using already-deployed components, minimizing the increase in device complexity.
Data Source
AI summary
A method for authorizing a mobile payment transaction is provided. The method includes receiving, by a server, a request to authorize a payment transaction which originates from a point of sale (POS) module. In an embodiment, the request includes payment information of the payment transaction and location information of the POS module. When the request is received, an authorizing client device for the payment transaction is identified based on the payment information and a disposition of the request to authorize the payment transaction is determined based on whether the authorizing client device is located within a predetermined proximity to the POS module.