Smart Card One-Time Credit Numbers
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
The credit card industry faces increased fraudulent activities and data theft, leading to concerns among card holders about e-commerce security, as existing systems lack effective measures to protect credit card information during transactions.
Innovation Solution
A smart card system and method that utilizes one-time use credit card numbers, which are automatically obtained and filled into transaction forms, providing additional security without significantly increasing transaction overhead. This system includes a smart card with memory, a card reader/writer, and a computer application that communicates with the card issuer to generate and manage temporary credit card information for secure transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional credit card numbers are used in e-commerce transactions, then transaction processing is simple and straightforward, but credit card information becomes vulnerable to fraudulent activities and data theft
Solution Approach 1:
The patent segments the credit card information into two parts: a stable cardholder verification number (CVN) stored on the smart card, and a disposable one-time use number generated during each transaction. This segmentation allows the CVN to remain secure while the transaction-specific number provides security for each individual transaction, resolving the contradiction between security and system simplicity.
Solution Approach 2:
The system performs preliminary actions by pre-generating and storing multiple one-time use numbers on the smart card before transactions occur. The cardholder verification number is also pre-stored on the card. This preliminary preparation eliminates the need for real-time generation of verification numbers during transactions, maintaining security while simplifying the transaction process.
2Reliability
If one-time use credit card numbers are generated and managed securely, then fraudulent activities are reduced, but transaction processing time and system overhead increase
Solution Approach 1:
The smart card pre-stores multiple one-time use numbers and the cardholder verification number before transactions occur. This preliminary action eliminates the need for real-time generation of verification numbers during transactions, significantly reducing transaction processing time while maintaining security against fraudulent activities.
Solution Approach 2:
The smart card autonomously generates and manages one-time use numbers without requiring external intervention from the issuing bank or additional verification steps. The card itself performs the security functions, eliminating the need for complex server-side processing and reducing transaction overhead.
3Ease of operation
If smart card credentials are preloaded with account information, then automatic transaction execution is enabled, but security risks from database and identity theft increase
Solution Approach 1:
The system segments stored information into two categories: permanent cardholder verification numbers stored on the smart card, and disposable one-time use numbers generated during transactions. This segmentation ensures that even if the card database is compromised, only the CVN is exposed, not the transaction-specific one-time numbers, thus maintaining security while enabling automatic transactions.
Solution Approach 2:
The patent employs disposable one-time use numbers that are valid only for a single transaction and then discarded. These short-living credentials eliminate the risk of long-term database theft, as each number is used once and then becomes invalid. This approach enables automatic transaction execution while protecting against identity theft by ensuring that compromised credentials cannot be reused.
Data Source
AI summary
A system, apparatus and method for utilizing one-time, or temporary, “credit” card information for executing purchase transactions with a smart card or similar electronic data card device. The card is activated in an activation process with the issuer prior to receiving and utilizing temporary card information (numbers). Retrieval and submission of temporary card information is performed in an automatic process executed by application programming, such as within a web browser. By way of example, a user surfing the web commences a purchase transaction wherein their smart card communicates with the issuer of the smart card to retrieve one-time or temporary use card data which is submitted through the network for processing within the transaction. In one embodiment the programming is executed within a web browser which marks card data fields within transaction forms and automatically fills these fields with temporary card information received from the issuer.