Smart Card Cryptogram Authentication for Secure Online Purchases

Resolve Bottlenecks,
Find Innovative SolutionsGenerate Solutions

Solution Overview

Problem

Unauthorized users can access online marketplaces using payment card information from a physical card to make unauthorized purchases due to the visibility of this information on the card.

Innovation Solution

A smart card with a contactless chip that transmits an authentication code, including a cryptogram, to a personal computing device, which is verified by a card issuer system to authenticate the user and authorize online purchases.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If payment card information is printed on the physical card for convenient use, then ease of operation is improved, but security is worsened because unauthorized users can read and misuse the information

Engineering Contradiction:

Improveconvenience of payment card useVSAvoidunauthorized access to payment information

Core Design Contradiction:

Ease of operationVSObject-affected harmful factors

Solution Approach 1:

The patent extracts the sensitive payment information from the physical card surface by implementing a virtual account number system. The virtual account number is stored securely in a database and can be dynamically generated and transmitted through secure channels, eliminating the need to print sensitive information on the physical card while maintaining payment functionality.

Inventive Principle:

Principle #2Taking out (Extraction)

Solution Approach 2:

The patent introduces an intermediary system consisting of a secure database and communication protocols between the payment terminal and the database server. This intermediary layer allows the physical card to serve as an authentication token while the actual payment information is transmitted securely through the intermediary system, preventing direct exposure of sensitive data.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Adaptability or versatility

If payment card information is stored in a database for online transactions, then online purchase capability is improved, but security risk increases due to potential data breaches and unauthorized access

Engineering Contradiction:

Improveonline transaction capabilityVSAvoidsecurity of stored payment information

Core Design Contradiction:

Adaptability or versatilityVSReliability

Solution Approach 1:

The patent segments the payment information system into multiple components: a secure database storing encrypted account data, authentication logic for verifying user identity, and virtual account number generation capabilities. This segmentation allows online transaction functionality while distributing security responsibilities across multiple secure layers.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The patent changes the parameter of account number representation from static printed numbers to dynamically generated virtual account numbers. These virtual numbers can be temporarily created, used for a specific transaction, and then invalidated, providing adaptability for online transactions while maintaining security through parameter transformation.

Inventive Principle:

Principle #35Parameter changes

3Reliability

If authentication requires physical smart card presence, then security is improved, but ease of operation is worsened due to the need to physically handle the card during online purchases

Engineering Contradiction:

Improveauthentication securityVSAvoidonline purchase convenience

Core Design Contradiction:

ReliabilityVSEase of operation

Solution Approach 1:

The patent replaces the mechanical requirement of physically handling the smart card with an automated electronic authentication system. The authentication logic automatically verifies user identity and generates virtual account numbers through electronic processes, eliminating the need for manual card handling while maintaining security through automated verification.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Data Source

PatentUS12530665B1Systems and methods for smart card online purchase authentication

Publication Date: 2026.01.20 WELLS FARGO BANK NA

AI summary

A method of authenticating a transaction includes receiving, by a computing system, an authentication request regarding the transaction. The authentication request can include a code from a user device of a user and payment information. The code can include a cryptogram provided to the user device from a smart card via a first communication. The payment information can be provided to the user device via a second communication. The method further includes authenticating the transaction by decoding the code to reveal user information and the cryptogram; validating the cryptogram; and verifying that the payment information at least partially matches information regarding the user stored in a database. The method still further includes transmitting, based on authenticating the transaction, an authentication approval for the transaction.