Partial Address Validation for Fraud Prevention
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Solution Overview
Problem
Current online purchasing systems face challenges in validating addresses during transactions, leading to potential fraud and erroneous rejections due to the lack of exact matches and the inability to process transactions using alternative payment methods, which limits flexibility for both buyers and merchants.
Innovation Solution
An automatic address validation system that receives an identifier and a portion of a postal address, searches for associated accounts, and communicates confirmation or rejection to merchants, allowing for flexible payment options and enhanced security through token generation and validation.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If exact match validation is used for address verification, then fraud prevention is improved, but false rejections increase due to minor mistakes or alternative spellings
Solution Approach 1:
The patent changes the validation parameter from requiring exact match to accepting partial match of the postal address. Instead of comparing the entire address string for exact equality, the system validates that a portion of the supplied address matches the billing address on file, thereby reducing false rejections while maintaining fraud prevention capabilities
Solution Approach 2:
The patent applies partial action by validating only a portion of the postal address rather than requiring complete exact match. This partial validation approach allows transactions to proceed when the essential identifying portion of the address matches, even if other parts differ due to spelling variations or minor errors
2Reliability
If AVS is used for credit card purchases, then address verification is improved, but flexibility is reduced for buyers using alternative payment methods
Solution Approach 1:
The patent creates a universal address validation service that can be applied across multiple payment methods, not just credit card transactions. The system provides a general-purpose address verification mechanism that works with various funding sources including loans, funded accounts, electronic fund transfers, and other alternative payment methods, thereby maintaining payment flexibility while improving verification reliability
3Adaptability or versatility
If multiple addresses are allowed for buyers, then buyer flexibility is improved, but fraud detection becomes more difficult
Solution Approach 1:
The patent introduces an intermediary validation service that mediates between the buyer's multiple addresses and the merchant's fraud detection needs. The service acts as a trusted third party that verifies which addresses are legitimate for the buyer, providing merchants with confidence even when buyers have multiple valid addresses for different purposes
Data Source
AI summary
An identifier is received with a portion of a postal address. That portion is compared against multiple additional postal addresses associated with the identifier. If a match is detected, a confirmation is transmitted to a requestor who originally sent the identifier and the portion of the postal address.