Peripheral Device Dynamic Verification Value Generation for Online Transactions
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Solution Overview
Problem
Existing systems for online financial transactions face challenges in securing payment information from unauthorized use, as they require costly modifications to financial presentation devices to embed processors and displays for generating dynamic verification data.
Innovation Solution
A system comprising a peripheral device with a processor and memory that generates dynamic verification values for financial transactions, which can be transmitted to a user's computer for authentication, and an authentication computer that compares these values to authorize transactions securely without requiring significant changes to existing financial presentation devices.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If financial presentation devices are modified to embed processors and displays for generating dynamic verification data, then transaction security is improved, but device manufacturing cost and complexity increase
Solution Approach 1:
The system divides the dynamic verification functionality into two separate components: a peripheral device that generates dynamic verification values and an authentication computer that validates them. This segmentation allows existing financial presentation devices to remain unchanged while still achieving dynamic verification, resolving the contradiction between security improvement and device complexity.
Solution Approach 2:
The peripheral device acts as an intermediary between the user and the authentication computer. It generates dynamic verification values based on information from the financial presentation device and transmits them to the authentication computer for validation, enabling enhanced security without modifying the original financial presentation devices.
2Ease of manufacture
If existing financial presentation devices are used without modifications, then manufacturing cost is reduced, but vulnerability to fraud and unauthorized use increases
Solution Approach 1:
The peripheral device serves as an intermediary security layer that works with existing financial presentation devices without requiring modifications to them. It generates dynamic verification values that prevent fraud while maintaining compatibility with unchanged devices, thus reducing manufacturing costs while lowering fraud vulnerability.
Solution Approach 2:
The peripheral device performs preliminary generation of dynamic verification values before the actual transaction occurs. This preliminary action ensures that each transaction has a unique verification value, preventing unauthorized use and fraud while working with existing devices.
3Reliability
If dynamic verification data is generated using embedded processors and displays, then transaction authorization security is improved, but manufacturing process requirements become more stringent
Solution Approach 1:
The system segments the dynamic verification functionality into a separate peripheral device rather than embedding it in the financial presentation device. This eliminates the need for complex manufacturing processes involving embedded processors and displays, while still achieving high authorization security through the peripheral device's verification value generation.
Data Source
AI summary
A system for authorizing a financial transaction of a financial presentation device such as a credit or debit card being presented from a customer to an online merchant. The system includes a peripheral device having a processor configured to generate a dynamic verification value for the card which changes for each financial transaction, and to transmit the dynamic verification value to a user computer via an I/O interface during an online transaction. The system also includes an authentication computer having a memory for storing information used to generate a comparison verification value, a communication device for receiving the dynamic verification value originating from the peripheral device, a processor and an authentication module executable by the processor adapted to generate the comparison verification value using information stored in memory. The authentication computer determines whether to authorize the financial transaction based on whether the comparison verification value matches the received dynamic verification value.