Virtual Card Authentication for Secure Remote Transactions
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Solution Overview
Problem
Existing authentication methods for transactions over public networks, such as the Internet, are inadequate as they lack assurance of identity and profile data verification, leading to increased fraud and disputes, and require users to manage multiple usernames and passwords.
Innovation Solution
The use of virtual cards, issued by an issuer, which are authenticated through a payment application, allowing users to select and verify their identity for transactions, ensuring secure communication and reducing the need for direct interaction between the issuer and relying party.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If traditional authentication methods (usernames/passwords) are used for transactions over public networks, then users can complete transactions remotely, but the system suffers from increased fraud and disputes due to lack of identity verification
Solution Approach 1:
The patent introduces a payment instrument (virtual card) as an intermediary that carries authentication information between the user and the relying party. This intermediary enables remote transactions while providing reliable identity verification, as the payment instrument contains embedded authentication data that proves the user's identity without requiring direct interaction between the user and relying party.
Solution Approach 2:
The patent implements preliminary authentication by pre-loading authentication information onto the payment instrument before the transaction occurs. The user's identity and authorization are verified in advance and stored on the payment instrument, allowing for quick and secure remote transactions without real-time identity verification challenges.
2Adaptability or versatility
If multiple usernames and passwords are required for different relying parties, then users can access various services, but the complexity of authentication management increases significantly
Solution Approach 1:
The patent creates a universal payment instrument that can be used across multiple relying parties and services. The single payment instrument contains authentication information that is recognized by various merchants and service providers, eliminating the need for users to manage multiple usernames and passwords while maintaining access to diverse services.
Solution Approach 2:
The patent uses virtual cards that can be copied or replicated as needed. Instead of requiring users to remember multiple authentication credentials, the system creates multiple instances or copies of the authentication information on separate payment instruments, simplifying user management while maintaining security.
3Reliability
If in-person authentication procedures are used, then identity verification is reliable, but transactions cannot be initiated from remote devices over public networks
Solution Approach 1:
The patent replaces the mechanical in-person authentication system (physical presence, signature verification, photo comparison) with an electronic/digital system. Authentication information is embedded in the payment instrument and verified electronically through cryptographic methods, maintaining the reliability of identity verification while enabling remote transaction initiation from any network-connected device.
Data Source
AI summary
Systems and methods for authenticating a party are disclosed. A transaction may be initiated between a relying party and a presenter. The relying party can send the presenter a message with transaction information and requirements for authentication. The presenter can forward the message to a third party, which can authenticate the presenter to the relying party.