Disposable RFID Electronic Tokens for Secure Offline Transactions
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Solution Overview
Problem
Existing electronic payment systems using credit cards or similar tools face issues with loss and cloning, limiting their safety and versatility across various commercial contexts.
Innovation Solution
A process involving the issuance of electronic tokens with unique identification codes and monetary values, assignable to consumers, allowing transactions without requiring an internet connection, with remote reimbursement capabilities and customizable features like validity dates and merchant types, using RFID technology for secure and diverse usage.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If credit cards or electronic payment tools are used, then transactions can be carried out electronically, but the system is vulnerable to loss and cloning
Solution Approach 1:
The patent employs disposable electronic tokens that are loaded with specific monetary values and can be used for a limited number of transactions or within a validity period. Once used or expired, these tokens become invalid, preventing cloning and repeated use attacks. The tokens are designed to be single-use or limited-use payment instruments that enhance security by eliminating the risk of credential reuse.
Solution Approach 2:
The system dynamically changes critical parameters of the payment tokens including validity dates, monetary values, and transaction limits. Each token contains encoded parameters that define its usage conditions, and these parameters are verified by the payment system during transactions. This dynamic parameter management ensures that even if a token is compromised, its utility is limited by time and value constraints.
2Adaptability or versatility
If traditional electronic payment systems are used, then transactions require internet connection and specific devices, but this reduces accessibility and versatility
Solution Approach 1:
The electronic tokens are designed to be self-contained payment instruments that do not require external system verification for basic transaction validation. The tokens themselves carry all necessary identification and value information, allowing them to be processed by simple readers without requiring complex backend systems or internet connections. This self-service capability enables use in offline environments and simplifies the infrastructure requirements.
Solution Approach 2:
The patent creates a universal token-based payment system that can function across multiple contexts including online and offline transactions, various merchant types, and different geographical locations. The tokens are designed to be compatible with multiple reading devices and transaction scenarios, making the system adaptable to diverse commercial environments without requiring context-specific payment instruments.
3Reliability
If consumer reference codes are stored in tokens permanently, then consumer identity is always verified, but consumer privacy is compromised
Solution Approach 1:
The system performs preliminary verification of consumer identity and token ownership before the actual transaction takes place. The consumer reference code is validated against the issuer's database in advance, and once verified, the token can be used for transactions without continuously exposing the consumer's identity information. This preliminary action separates the verification step from the transaction execution, enhancing privacy protection.
Solution Approach 2:
The patent extracts the consumer's personal identification information from the token itself, storing only a reference code that links to the consumer's account in the issuer's database. The actual consumer identity data remains securely stored at the issuer, while the token contains only the minimal necessary reference information. This extraction approach minimizes the exposure of sensitive consumer information during transactions.
Applied Scientific Principles
This section explains which scientific principles are used to turn an abstract innovation direction into a practical engineering solution.
Function Achieved in This Case
Enables secure, versatile, and easily trackable transactions without the need for devices, allowing consumers to monitor their token balance and merchants to verify transactions, with remote reimbursement and customizable token profiles.
Implementation Method 1
A token of this type is known by document US 2012/0055996. Said document illustrates a token formed by a disc-shaped plastic support in which an RFID (Radio Frequency Identification) tag is provided to identify the single electronic token.
Data Source
AI summary
The invention concerns a process for carrying out transactions which includes issuing electronic tokens marked by a first unique identification code and a monetary value, assigning electronic tokens having a reference code associated with the consumer addressee stored inside to a consumer, and using electronic tokens to carry out transactions such as purchasing goods and/or services at merchants. At the end of each transaction, the consumer reference code is deleted from the tokens used in the transaction and a reference code of the merchant who received the tokens in the transaction is stored in the electronic tokens.