Secure PIN Debit Service Middleware for Mobile Payment Authorization
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Solution Overview
Problem
PIN Debit transactions are not widely accepted for eCommerce and mobile payments due to security concerns and the requirement for special equipment to securely capture and store cardholder PINs, limiting their adoption and potentially eroding market share for PIN-Debit networks.
Innovation Solution
A method and system that allow PIN-debit transactions to be processed without significant modifications to existing Debit Networks or point-of-sale equipment, using a Secure PIN Debit Service (SPDS) that communicates with customers via mobile telephones for authorization and inserts the cardholder's PIN into the transaction record for processing, enabling PIN-debit payments through eCommerce and mobile wallets with minimal changes to existing infrastructure.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If PIN Debit transactions use traditional encrypted PIN pads at point-of-sale terminals, then security for cardholder PINs is improved, but device complexity and infrastructure requirements worsen
Solution Approach 1:
The patent introduces a mobile telephone as an intermediary device between the cardholder and the payment system. The mobile device captures the PIN through its camera or keypad, encrypts it locally, and transmits it to the payment processor. This intermediary approach eliminates the need for specialized encrypted PIN pads at merchant terminals while maintaining security through the mobile device's existing encryption capabilities.
Solution Approach 2:
The patent replaces the mechanical encrypted PIN pad hardware with a software-based solution running on mobile devices. Instead of requiring physical encryption hardware at point-of-sale terminals, the system uses mobile device processors and software applications to perform PIN capture and encryption, significantly reducing infrastructure complexity.
2Reliability
If PIN Debit transactions require special encrypted PIN pad equipment, then security for cardholder PINs is improved, but ease of operation and adoption worsen
Solution Approach 1:
The patent leverages the universal nature of mobile telephones, which are already widely owned and used by consumers for various purposes. By implementing PIN capture functionality within existing mobile operating systems or applications, the solution allows any mobile device to serve as a secure PIN entry mechanism, eliminating the need for specialized equipment and greatly facilitating adoption.
Solution Approach 2:
The system enables cardholders to perform PIN entry and encryption themselves using their own mobile devices. The mobile application guides users through the process of securely entering their PIN, which is then encrypted and transmitted automatically. This self-service approach eliminates the need for trained operators or specialized hardware at merchant locations.
3Reliability
If PIN Debit is not widely accepted for eCommerce and mobile payments, then infrastructure security requirements are maintained, but market share and productivity of PIN-Debit networks worsen
Solution Approach 1:
The patent extends PIN Debit functionality from the traditional point-of-sale dimension to the mobile and eCommerce dimension. By implementing PIN capture and encryption capabilities within mobile operating systems and web browsers, the system enables PIN Debit transactions in previously inaccessible channels, opening new markets while maintaining security through the same encryption standards.
Solution Approach 2:
The system performs preliminary PIN capture and encryption actions within the mobile device before the actual transaction occurs. The mobile application securely stores the encrypted PIN locally, and when a transaction is initiated, the pre-encrypted PIN is readily available for transmission. This preliminary action enables rapid transaction processing in eCommerce and mobile environments without compromising security.
Data Source
AI summary
A method for facilitating the widespread use of the PIN-Debit payment method for Internet “eCommerce” and mobile payments sales which requires little or no change for the cardholders, merchants, debit networks and card issuers based primarily on the introduction of a layer of middleware and wherein the Debit Networks and Issuing Banks may customize the implementation of the services based on individual strategy and cardholder preferences.