Payment Terminal Cryptogram Recovery for Torn Transactions
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Solution Overview
Problem
Existing payment systems face issues with 'torn' transactions, where a card is removed before the transaction is completed, leading to apparent loss of funds, merchant dissatisfaction, and the need for manual reconciliation, which can result in fraud and cardholder dissatisfaction.
Innovation Solution
A method and system that allows payment terminals to detect and recover torn transactions by storing recovery data on the card and using a RECOVER AC command to re-produce the cryptogram, ensuring accurate transaction completion without increasing the card's balance and maintaining security.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Speed
If the card is removed before the transaction is completed, then the transaction speed is improved, but the transaction reliability deteriorates due to torn transactions and apparent loss of funds
Solution Approach 1:
The system performs preliminary actions by storing the cryptogram on the card during the initial transaction setup phase. This allows the transaction to be recovered later even if the card is removed before completion, as the necessary data is already prepared and stored on the card itself.
Solution Approach 2:
The system creates a copy of the cryptogram data and stores it on the card. This copy enables the terminal to recover the transaction details later by re-reading the stored cryptogram, ensuring transaction reliability without requiring the original transaction data to be retained in memory.
2Measurement precision
If manual reconciliation is performed for torn transactions, then the transaction accuracy is improved, but the productivity deteriorates due to time-consuming manual processes
Solution Approach 1:
The system enables self-service by automatically recovering torn transactions through the RECOVER AC command. The terminal autonomously retrieves the stored cryptogram and completes the transaction without requiring manual intervention, thereby maintaining transaction accuracy while eliminating time-consuming manual reconciliation processes.
Solution Approach 2:
The system implements feedback by automatically detecting torn transactions and triggering the recovery process. When a transaction is identified as torn, the system automatically retrieves the stored cryptogram and completes the transaction, providing continuous monitoring and self-correction without manual oversight.
3Reliability
If the cryptogram is stored on the card for recovery, then the transaction reliability is improved, but the device complexity increases due to additional storage and recovery mechanisms
Solution Approach 1:
The system achieves universality by using the existing card memory and processor to store and retrieve the cryptogram. The same card infrastructure that handles normal transaction data is also used for storing recovery data, eliminating the need for separate dedicated storage mechanisms and reducing overall device complexity.
Solution Approach 2:
The system merges the cryptogram storage function with the existing card memory structure. The recovery data is integrated into the same memory space and processed through the existing processor, combining multiple functions into a single unified system that reduces complexity while maintaining reliability.
4Object-affected harmful factors
If the RECOVER AC command is used to re-produce the cryptogram, then the fraud prevention is improved, but the device complexity increases due to additional command processing
Solution Approach 1:
The system uses the stored cryptogram as an intermediary to verify transaction authenticity. Instead of directly validating transaction details, the system retrieves and verifies the cryptogram, which serves as a secure intermediate layer that prevents fraud while using existing cryptographic validation mechanisms.
Solution Approach 2:
The system performs preliminary cryptographic validation by storing the cryptogram in advance. This pre-computed cryptographic data enables rapid fraud prevention checks during recovery without requiring complex real-time computation, as the validation data is already prepared and stored.
Data Source
AI summary
A first command is sent from a payment terminal assembly to a payment device with an on-device balance to compute a cryptogram to complete a putative transaction. It is detected that the cryptogram is not received as expected. In response, an identifier of the payment device and transaction recovery data associated with the putative transaction are stored in a storage area of a terminal memory of the payment terminal assembly. The payment terminal assembly obtains the identifier of the payment device, upon re-presentation of the payment device. Upon such re-presentation, the payment terminal assembly compares the obtained identifier of the payment device to contents of the storage area. Conditioned at least upon the comparing yielding a match, a second command is sent from the payment terminal assembly to the payment device to instruct the payment device to re-produce the cryptogram to complete the putative transaction.