Multi-Nodal Payment Authentication With Biometric Card Authorization

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Solution Overview

Problem

Existing payment systems are susceptible to fraud, leading to difficulties in reversing fraudulent transactions and financial losses for financial institutions, as conventional fraud detection often results in legitimate transactions being terminated and goods being irretrievably received.

Innovation Solution

A multi-nodal authentication system using a payment instrument with biometric and signature capture capabilities, which verifies the transaction initiator's identity before completing the transaction, involving a transaction initiation node, processing entity, and payment cards with nano LED touch screens and wireless communication for real-time authorization.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If conventional fraud detection terminates suspected fraudulent payments, then fraud prevention is improved, but legitimate transactions are incorrectly blocked causing difficulty to payment initiators

Engineering Contradiction:

Improvefraud detection accuracyVSAvoidtransaction completion ease

Core Design Contradiction:

ReliabilityVSEase of operation

Solution Approach 1:

The system performs preliminary authentication actions during transaction processing by capturing biometric data (facial image, fingerprint, iris) and signature at the point of sale before finalizing the transaction. This preliminary verification ensures legitimate transactions are authenticated while flagging only genuinely fraudulent ones for termination, thus improving fraud detection accuracy without unnecessarily blocking legitimate payments.

Inventive Principle:

Principle #10Preliminary action

2Loss of energy

If transactions are terminated based on suspected fraud, then financial losses from fraud are reduced, but legitimate transactions are lost and goods become irretrievably received

Engineering Contradiction:

Improvefinancial lossVSAvoidtransaction legitimacy assurance

Core Design Contradiction:

Loss of energyVSReliability

Solution Approach 1:

The system implements feedback mechanisms where authentication results (biometric verification, signature capture) are fed back into the transaction processing system in real-time. This allows the system to distinguish between legitimate and fraudulent transactions with higher accuracy, reducing false terminations of legitimate payments while effectively blocking fraudulent ones, thereby minimizing financial losses without compromising transaction legitimacy.

Inventive Principle:

Principle #23Feedback

Solution Approach 2:

The system replaces conventional mechanical fraud detection methods (simple card verification, PIN checks) with biometric authentication systems (facial recognition, fingerprint scanning, iris detection). These advanced authentication mechanisms provide more reliable verification of transaction legitimacy, reducing both financial losses from fraud and false rejections of legitimate transactions.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

3Reliability

If multi-nodal authentication with biometric capture is implemented, then transaction security is enhanced, but device complexity increases

Engineering Contradiction:

Improvetransaction securityVSAvoidauthentication system complexity

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The payment processing system is designed with multi-functionality, integrating multiple authentication capabilities (biometric capture, signature collection, transaction processing) into a single unified platform. By making the system universal and capable of performing multiple functions, the complexity is consolidated rather than multiplied, as the same infrastructure supports various authentication methods and transaction types.

Inventive Principle:

Principle #6Universality (Multi-functionality)

Solution Approach 2:

The system merges multiple authentication functions (facial recognition, fingerprint scanning, iris detection, signature capture) and transaction processing into a single integrated point-of-sale system. This consolidation reduces overall system complexity compared to having separate systems for each function, while maintaining enhanced security through the combination of multiple authentication nodes.

Inventive Principle:

Principle #5Merging (Combining)

Data Source

PatentUS12572939B2Multi nodal authentication technology

Publication Date: 2026.03.10 BANK OF AMERICA CORP

AI summary

Methods are provided for authenticating an initiator of a transaction during processing of the transaction. Methods may include initiating a transaction, including transaction details, at a transaction initiation node. Methods may include transmitting the transaction to a processing entity. Methods may include identifying that the transaction is above a threshold of anomalous transactions based on historic transactions associated with the transaction details. Methods may include transmitting an authorization request from the processing entity to a payment card linked to the transaction details. Methods may include receiving the authorization request at the payment card. Methods may include approving and/or denying the authorization request at the payment card. Approving and/or denying the request may include input of a signature and/or biometric. Methods may include transmitting the approval and/or denial from the payment card to the processing entity. The processing entity may transmit the approval and/or denial to the transaction initiation node.