NC3 Charge Card System Secure Transaction Segmentation

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Solution Overview

Problem

Existing charge card systems face security issues due to the potential for large-scale breaches, exposing consumers to financial loss and confidence erosion, as well as operational inefficiencies and increased costs, particularly in handling card-present and e-commerce transactions.

Innovation Solution

The No Compromise Charge Card (NC3) system separates account identification and transaction authorization into encrypted, context-sensitive elements, using optical non-contact communication to facilitate secure transactions across various merchant types without revealing the underlying charge card number, enabling secure, context-sensitive, and time-limited transactions.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If charge card information is transmitted through existing infrastructures, then transaction functionality is maintained, but security vulnerabilities increase due to potential large-scale breaches

Engineering Contradiction:

Improvetransaction securityVSAvoidbreach exposure

Core Design Contradiction:

ReliabilityVSObject-affected harmful factors

Solution Approach 1:

The charge card information is segmented into multiple components: account identification, transaction authorization, and contextual parameters. Each component is encrypted separately and transmitted through different channels, so that even if one component is intercepted, the complete information cannot be reconstructed

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

An intermediary encryption layer is introduced between the charge card and the transaction system. This intermediary transforms the original charge card information into encrypted tokens that maintain transaction functionality while preventing direct access to sensitive data, thereby reducing breach exposure

Inventive Principle:

Principle #24Intermediary (Mediator)

2Adaptability or versatility

If traditional charge card systems are used, then broad usability is maintained, but operational costs increase due to breach handling and security measures

Engineering Contradiction:

Improvemerchant type compatibilityVSAvoidoperational cost

Core Design Contradiction:

Adaptability or versatilityVSLoss of energy

Solution Approach 1:

The system employs a universal encrypted token format that can be used across multiple merchant types (retail, e-commerce, mobile, contactless). This single standardized approach replaces multiple specialized systems, reducing operational complexity and costs while maintaining broad compatibility

Inventive Principle:

Principle #6Universality (Multi-functionality)

Solution Approach 2:

The system changes the parameter of information representation from plaintext charge card numbers to encrypted tokens with specific contextual parameters. This parameter transformation enables the same information structure to serve multiple merchant types while reducing security costs through inherent encryption

Inventive Principle:

Principle #35Parameter changes

3Ease of operation

If charge card numbers are exposed during transactions, then transaction processing is simplified, but consumer confidence decreases due to security risks

Engineering Contradiction:

Improvetransaction processingVSAvoidconsumer confidence

Core Design Contradiction:

Ease of operationVSLoss of information

Solution Approach 1:

Instead of transmitting the original charge card number, the system creates and transmits an encrypted copy or token that represents the charge card information. This copy maintains all necessary transaction functionality while eliminating the exposure of sensitive information, thereby preserving consumer confidence

Inventive Principle:

Principle #26Copying

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

The NC3 system enhances security by limiting transaction exposure, reduces operational costs, and simplifies transactions across all merchant types, providing a more secure and efficient payment process that protects consumers and providers from unauthorized use.

Implementation Method 1

The merchant's optical scanner reads the optical image

Methodology Applied

Scientific EffectOptical scanning:

Data Source

PatentUS10621589B2System for merchant and non-merchant based tractions utilizing secure communications while allowing for secure additional functionality

Publication Date: 2020.04.14 JAFFE JONATHAN E

AI summary

Methods, apparatuses, non-transitory computer program products, systems, and mobile terminal devices are disclosed for performing wireless financial transactions which separate an account identification and transaction authorization from a single charge card into two separate elements, which include at least an encrypted account identifier and a transaction-adaptive, context sensitive, dynamically content-rich, transaction authorization.