Transient Credit Code Payment System Fraud Prevention
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Solution Overview
Problem
Credit card transactions over public networks, such as the internet, are vulnerable to fraud due to the transmission of sensitive information like credit card numbers and expiry dates, which can be intercepted or misused, putting both card holders and merchants at risk.
Innovation Solution
A payment system that uses a single-use transient credit code, not linked to the purchaser's identity, which expires after use, allowing secure transactions without exposing sensitive information, and can be obtained through a payment system hub via an intermediate facilitator.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If credit card details are transmitted over public networks for payment, then payment transactions can be completed, but the risk of interception and fraudulent use of the information increases
Solution Approach 1:
The payment system segments the credit card functionality into multiple components: a transient credit code that is single-use, a payment system hub that manages code generation and validation, and an intermediate facilitator that handles the transaction process. This segmentation ensures that no single piece of information (like a permanent credit card number) is exposed during transmission, thereby resolving the contradiction between enabling payments and preventing interception/fraud.
Solution Approach 2:
The system employs a transient credit code that is designed to be single-use and then discarded. Unlike traditional credit card numbers that remain valid indefinitely, this transient code expires after one use or after a set time period. This disposable approach eliminates the risk of long-term fraudulent use of intercepted information, as the code becomes invalid after its single intended use, thus resolving the contradiction between transaction capability and fraud risk.
2Reliability
If a transient credit code is provided to the purchaser, then fraudulent use is prevented, but the system complexity increases
Solution Approach 1:
The system introduces an intermediate facilitator as a mediator between the purchaser and the payment system hub. This intermediary handles the complex operations of code generation, validation, and transaction processing, shielding the purchaser from system complexity while maintaining security. The intermediate facilitator absorbs the complexity of managing transient codes, thereby achieving fraud prevention without exposing the user to system intricacies.
Solution Approach 2:
The payment system hub automatically generates, manages, and validates transient credit codes without requiring manual intervention. The system self-manages the lifecycle of these codes from creation to expiration, reducing the operational complexity that would otherwise fall on users or merchants. This automated self-service approach maintains high reliability in fraud prevention while minimizing the practical complexity for end users.
3Object-affected harmful factors
If the purchaser's identity is not linked to the transient access code, then security is improved, but traceability and accountability are reduced
Solution Approach 1:
The system extracts the purchaser's identity information from the transient credit code, creating a separation between the security function and the identification function. The transient code contains only the necessary payment information and expires after use, while the purchaser's identity is maintained separately by the payment system hub. This extraction achieves security by preventing identity theft through the code while preserving accountability through separate identity tracking mechanisms.
Solution Approach 2:
The system dynamically manages the linkage between purchasers and codes through time-bound associations. The transient code is valid only for a specific transaction period and becomes invalid afterward, creating a dynamic state that adapts to the transaction lifecycle. This dynamic approach maintains security by limiting the window of vulnerability while preserving the ability to trace transactions to purchasers through temporal association records maintained by the payment system hub.
Data Source
AI summary
A payment system transfers funds from a purchaser to a supplier of goods and services. A single use transient credit code provided to the purchaser effects the transfer. The transient credit code is redeemable to a value limited to said transfer of funds thereby preventing subsequent fraudulent use of the code. The payment system apparatus transfers a payment from a purchaser to a supplier of goods and services. The apparatus incorporates a code issue device which keeps track of and generates a list of limited-value, single-use credit codes. The device issues the codes on request, receives notification of use of the codes and marks respective, ones as used. The transfer is done by single-use transient credit codes provided to the purchaser. The codes are redeemable to the value limited to a payment.