Mobile POS Terminal Tokenization for Secure Online Transactions
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Solution Overview
Problem
Existing mobile payment systems for e-commerce transactions face exposure risks and lack nonrepudiation assurance, similar to in-person transactions, due to the transfer of transaction account information over unsecured networks.
Innovation Solution
A mobile payment system utilizing a personal POS terminal on a consumer's device, integrated with a virtual terminal system, allows for secure transactions by generating a device identifier and payment token, ensuring low fraud risk through device verification and token generation.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If transaction account information is transferred over unsecured networks for e-commerce transactions, then convenience of online shopping is improved, but security and exposure risks deteriorate
Solution Approach 1:
The patent introduces a personal POS terminal as an intermediary device between the consumer and the merchant system. This terminal generates device identifiers and payment tokens that mediate the transaction process, allowing e-commerce convenience while securing the transaction account information through tokenization rather than direct exposure of sensitive data over networks
Solution Approach 2:
The patent creates a virtual copy of the POS terminal functionality on the consumer's mobile device. This personal POS terminal application replicates the security features of physical POS terminals, generating device identifiers and payment tokens that serve as secure representations of the transaction account information without exposing the actual account details
2Reliability
If a personal POS terminal generates and verifies device identifiers, then nonrepudiation assurance is improved, but device complexity increases
Solution Approach 1:
The personal POS terminal application enables the consumer's device to autonomously generate device identifiers and payment tokens without requiring complex external verification infrastructure. The device performs self-verification by matching received device identifiers against stored identifiers, providing nonrepudiation assurance through self-contained security operations
Solution Approach 2:
The personal POS terminal application consolidates multiple security functions into a single mobile application: it generates device identifiers, creates payment tokens, verifies transactions, and manages transaction account information. This multi-functional approach provides robust nonrepudiation assurance without requiring multiple separate complex systems
Data Source
AI summary
Disclosed are various embodiments for a point of sale application for a mobile device. In some embodiments, a system comprises a mobile device that is configured to initiate a transaction with a virtual terminal system and provide an identifier of the mobile device to the virtual terminal system. An activation command can be received from the service system. A user interface for the virtual terminal system can be presented for indicating a product for the transaction. The user interface is updated to receive a confirmation for an acceptance of the transaction. The mobile device is configured to generate a cryptogram transmit the cryptogram for the transaction to the service system.