Smartcard Offline Value Transfer via E-Chequebook Segmentation
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Solution Overview
Problem
Existing smartcard-based payment systems, such as EMV and ITSO, do not effectively support multiple commodities and card-to-card transactions, lacking dynamic management of commodity addition, deletion, and modification, as well as secure off-line transaction capabilities.
Innovation Solution
A programmable smartcard scheme utilizing ITSO open standards, with a Secure Access Module (SAM) for security and cryptographic functionality, enables off-line transactions through e-chequebooks and e-cheque exchange between cards, allowing multiple commodities from various brokers and secure two-factor authentication, while updating account data only when the card is online.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If EMV or ITSO standards are used for smartcard-based payment systems, then secure transaction processing and remote authentication are achieved, but card-to-card transactions and multiple commodity management are not supported
Solution Approach 1:
The system segments transaction processing into two distinct modes: offline card-to-card transactions using e-chequebook exchanges for immediate payment, and online host-verified transactions for account management. This segmentation allows card-to-card functionality without compromising the security architecture of established standards like EMV and ITSO.
Solution Approach 2:
The patent introduces an intermediary authentication mechanism using cryptographic verification between cards during offline transactions. The e-chequebook exchange acts as an intermediary that enables value transfer without direct host involvement, while still maintaining security through cryptographic protocols derived from established standards.
2Ease of operation
If offline transaction capability is implemented for convenience, then circulation of value is stimulated, but fraud prevention and revenue collection become difficult
Solution Approach 1:
The system performs preliminary authentication and authorization actions during offline card-to-card transactions using pre-established cryptographic credentials. The e-chequebook exchange includes built-in verification mechanisms that prevent fraud at the point of transaction, eliminating the need for immediate online verification while maintaining security.
Solution Approach 2:
The patent implements a feedback mechanism where transaction data is periodically synchronized with the host system. The host receives transaction reports and updates account balances, providing continuous monitoring and control. This feedback loop enables fraud detection and revenue collection while preserving offline transaction convenience.
3Adaptability or versatility
If multiple commodities from multiple brokers are allowed on the same card, then system openness and interoperability are improved, but system complexity increases
Solution Approach 1:
The system segments multiple commodities into separate, independently managed e-chequebooks within the card. Each commodity from different brokers is stored in its own dedicated data structure, allowing multiple commodities to coexist without interference. This segmentation simplifies management by providing clear boundaries between different commodity types.
Solution Approach 2:
The patent implements a universal e-chequebook data structure that can accommodate any commodity type from any broker through standardized fields. The same basic framework handles diverse commodities (e.g., currency, precious metals, commodities) uniformly, reducing complexity despite the variety of supported assets.
4Adaptability or versatility
If dynamic addition and deletion of commodities is enabled, then system flexibility is improved, but security management becomes more difficult
Solution Approach 1:
The system performs preliminary security verification through cryptographic authentication before allowing any addition, deletion, or modification of commodities. The host system verifies the cardholder's identity and authorization level before permitting changes to the e-chequebook structure, ensuring security is established before dynamic operations occur.
Solution Approach 2:
The patent introduces an intermediary cryptographic verification layer that mediates all dynamic commodity operations. Before any addition or deletion of commodities, the system performs cryptographic validation through the Secure Access Module, acting as an intermediary security checkpoint that simplifies security management despite dynamic operations.
Data Source
AI summary
In a value transfer scheme, users are provided with programmable devices, for example, smart cards, capable of carrying data representing at least one available commodity value. Data representing user accounts is held at a remote processing station. Transactions between users are effected by the off-line exchange of data between users'respective smartcards, the exchanged data containing a record of each transaction entered into. The user account data for each user's account held at the remote processing station is updated only subsequently when the user's smartcard is on-line to the remote processing station and data therefrom is uploaded to the remote processing station. The scheme of the invention can, conveniently, be based around the ITSO scheme which is used to govern the secure transfer of data. The scheme is capable of providing a secure multi-commodity value transfer system.