Multi-Scheme Payment Card Using Wallet Server Mediation
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Solution Overview
Problem
Existing multi-scheme payment systems are not compatible with magnetic stripe card technology, limiting their use in economies that have not adopted the EMV smartcard standard, and they lack the security features to ensure reliable and secure transactions.
Innovation Solution
A system that includes a wallet server, a mobile application, and a payment card with a magnetic stripe, where the mobile application indicates the payment scheme for a transaction, generates a one-time passcode, and sets a pre-authorization window and spend limit, allowing secure transactions via magnetic stripe devices without requiring EMV compatibility.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a multi-scheme payment system uses EMV smartcard standard, then security and reliability of transactions are improved, but compatibility with magnetic stripe card technology is lost
Solution Approach 1:
The patent introduces a wallet server as an intermediary component that mediates between the magnetic stripe card and the payment schemes. The wallet server stores multiple payment account information and handles the complex authentication and routing logic, allowing the simple magnetic stripe card to access secure multi-scheme payment capabilities without requiring EMV chip technology in the card itself.
Solution Approach 2:
The patent moves the security and multi-scheme functionality from the card dimension to the server dimension. Instead of embedding multiple chips or complex security features in the card, the system utilizes the computational and security resources of the wallet server, effectively shifting the complexity from the card to the backend infrastructure.
2Adaptability or versatility
If multiple payment cards are carried, then access to different payment schemes is enabled, but convenience and ease of operation deteriorate
Solution Approach 1:
The patent combines multiple payment account information into a single magnetic stripe card. The card contains a unified identifier that the wallet server uses to retrieve and manage multiple payment accounts, allowing users to access different payment schemes from one card rather than carrying multiple separate cards.
Solution Approach 2:
The magnetic stripe card is designed with universal functionality to work with the wallet server system across different payment schemes. The card serves as a universal key that can trigger authentication and account selection for various payment types, making the card itself multi-functional while maintaining simple magnetic stripe technology.
3Ease of manufacture
If magnetic stripe card technology is used, then compatibility and ease of manufacture are improved, but transaction security and reliability deteriorate
Solution Approach 1:
The wallet server acts as a security intermediary that compensates for the inherent security limitations of magnetic stripe technology. The server implements robust authentication protocols, encrypts sensitive payment data, and manages security tokens, thereby providing enterprise-grade security through the server rather than requiring it in the card itself.
Solution Approach 2:
The system performs preliminary authentication and security verification actions on the wallet server before the actual transaction occurs. The server validates the card, authenticates the user, selects the appropriate payment account, and prepares secure communication channels in advance, ensuring that security measures are established before sensitive financial operations take place.
Data Source
AI summary
An electronic payment system includes a wallet server storing account details of one or more payment schemes with which a user has an account; a mobile application operable to indicate to the wallet server which of the one or more payment schemes is to be pre-authorized for a transaction; and a payment card conforming to a payment card standard. Operating the payment card to effect a financial transaction effects a financial transaction using the payment scheme indicated to the wallet server by the mobile application.