Portable Card Reader Secure Payment via Mobile Encryption
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Solution Overview
Problem
Current credit card payment systems are vulnerable to information theft and lack a portable, cost-effective solution for secure transactions both offline and online, particularly for personal use.
Innovation Solution
A method and system utilizing a portable card reader device and a mobile phone to securely conduct credit card payments through encryption and communication with a payment server, ensuring secure data transmission and compliance with EMV standards.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a traditional POS terminal is used for secure credit card payments, then security against information theft is improved, but portability and cost are worsened (bulky, expensive, transaction fees)
Solution Approach 1:
The system divides the POS terminal functionality into separate components: a portable card reader device that interfaces with the smart card, a mobile phone for communication, and a remote payment server for processing. This segmentation allows secure payment functionality to be distributed across multiple portable devices rather than requiring a single bulky terminal.
Solution Approach 2:
The mobile phone acts as an intermediary between the portable card reader device and the payment server. It receives encrypted payment data from the card reader, communicates with the server, and relays responses back, enabling portable secure transactions without direct connection between the reader and server.
2Reliability
If a traditional POS terminal is used for secure credit card payments, then security against information theft is improved, but cost is worsened (expensive purchase and transaction fees)
Solution Approach 1:
The system replaces expensive, durable POS terminal infrastructure with cheaper, portable devices that can be easily manufactured and distributed. The portable card reader device and mobile phone combination provides secure payment functionality at a fraction of the cost of traditional terminals, with no transaction fees charged to users.
Solution Approach 2:
The system enables users to perform secure credit card payments themselves using their own portable devices, eliminating the need for expensive merchant-acquired POS terminals. Users can make payments directly by inserting their smart card into their personal card reader device and following the on-screen instructions.
3Ease of operation
If credit card information is transmitted over wireless networks, then portability and accessibility are improved, but vulnerability to data theft is worsened
Solution Approach 1:
The system applies preliminary anti-action by encrypting the smart card information with a reader key before transmission occurs. This pre-encryption protects the data from potential interception during wireless transmission, counteracting the security risks of network communication before the threat can materialize.
Solution Approach 2:
The system changes the state of the payment data from plaintext to encrypted form using cryptographic transformations. The smart card information is encrypted with a reader key, and the encryption parameters are managed securely, transforming vulnerable data into protected information suitable for wireless transmission.
Data Source
AI summary
A method of conducting secure electronic credit payments to a payment acquirer using a credit payment unit, including a smart card, a portable card reader device and a mobile phone, and a payment server. The method is based on using a unique reader key in the card reader device to encrypt all the sensitive smart card information communicated to the payment server, and thus being able to use an unsecure mobile phone to communicate with the payment server. The payment server then completes the transaction with the payment acquirer over a secure line.