Transaction Authorization Platform Possession Verification

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Solution Overview

Problem

Existing transaction systems face challenges in verifying whether a user possesses a transaction card and is authorized to use it during card-present transactions, leading to potential fraudulent activities and resource wastage in mitigating such frauds.

Innovation Solution

A transaction authorization platform that communicates with a user device to confirm possession and authorization of a transaction card through queries and responses, determining the user's possession and authorization status before allowing or declining transactions.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If traditional transaction verification methods are used, then transaction processing is simple and fast, but fraudulent transactions cannot be effectively detected and security is compromised

Engineering Contradiction:

Improvetransaction securityVSAvoidverification system complexity

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The system performs preliminary actions by sending possession confirmation queries to the user device before authorizing the transaction. This advance verification ensures the user has the card without adding complex hardware, as it uses existing communication channels between the transaction terminal, authorization platform, and user device.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The transaction authorization platform acts as an intermediary between the transaction terminal and the user device. It coordinates the verification process by sending queries and receiving responses, enabling secure verification without requiring direct complex interactions between the terminal and user device.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Reliability

If comprehensive fraud detection measures are implemented, then fraudulent transactions are reduced, but processing time increases due to additional verification steps

Engineering Contradiction:

Improvefraud detection accuracyVSAvoidtransaction processing time

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The verification process uses periodic action by sending a discrete possession confirmation query at a specific point during the transaction flow. This targeted verification at a critical moment provides effective fraud detection without requiring continuous monitoring that would significantly delay processing.

Inventive Principle:

Principle #19Periodic action

3Measurement precision

If multiple verification queries are sent to user device, then authorization accuracy improves, but communication overhead and processing time increase

Engineering Contradiction:

Improveauthorization verification accuracyVSAvoidcommunication resource consumption

Core Design Contradiction:

Measurement precisionVSLoss of energy

Solution Approach 1:

The system extracts only the essential verification information needed for authorization by sending a targeted possession confirmation query. This selective approach obtains sufficient verification data without unnecessary additional queries, reducing communication overhead while maintaining authorization accuracy.

Inventive Principle:

Principle #2Taking out (Extraction)

Data Source

PatentUS20250140013A1Determining whether a user has possession of a transaction card and/or whether the user is authorized to possess the transaction card

Publication Date: 2025.05.01 CAPITAL ONE SERVICES LLC

AI summary

A device receives a transaction request concerning a transaction and a transaction card from a transaction terminal, and determines, based on the transaction request, information concerning the transaction card. The device sends, based on the transaction request and to a user device, a query concerning possession of the transaction card by a user of the user device, where the query includes an instruction for the user to confirm possession of the transaction card via a component of the user device. The device receives, from the user device and after sending the query to the user device, a response concerning possession of the transaction card by the user, and determines, based on the response and the information concerning the transaction card, whether the user has possession of the transaction card. The device performs, based on determining whether the user has possession of the transaction card, at least one action.