Virtual PIN Debit Child Product for Secure Online Transactions

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Solution Overview

Problem

Current online payment systems lack a secure method for PIN debit transactions, as customers are hesitant to enter their PIN numbers due to security concerns, making PIN debit transactions unavailable for online transactions.

Innovation Solution

A method is introduced to generate a PIN debit 'child product' with a virtual PIN and card number linked to a core account, allowing secure PIN debit transactions online without requiring users to input their actual PIN, using a payment processing platform that authenticates users and processes transactions through a financial institution.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If customers enter their actual PIN number for online transactions, then PIN debit transactions can be performed, but security risk increases due to potential theft by hackers

Engineering Contradiction:

ImprovePIN debit transaction capabilityVSAvoidsecurity risk

Core Design Contradiction:

Ease of operationVSObject-affected harmful factors

Solution Approach 1:

The patent introduces a virtual PIN as an intermediary between the customer's actual PIN and the online transaction system. The virtual PIN is generated by the payment processing platform and used exclusively for online transactions, eliminating the need for customers to enter their actual PIN while maintaining the ability to perform PIN debit transactions. This mediator protects the actual PIN from exposure to merchants and potential hackers.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent segments the PIN functionality by creating separate virtual PINs for different online merchants or transaction contexts. Each virtual PIN is tied to a specific merchant or transaction type, allowing the system to maintain PIN debit capability while isolating the security risk. If one virtual PIN is compromised, the actual PIN and other virtual PINs remain protected.

Inventive Principle:

Principle #1Segmentation

2Object-affected harmful factors

If a virtual PIN system is implemented, then security is enhanced and actual PIN is protected, but system complexity increases due to additional processing steps

Engineering Contradiction:

Improvesecurity riskVSAvoidpayment processing system

Core Design Contradiction:

Object-affected harmful factorsVSDevice complexity

Solution Approach 1:

The payment processing platform performs multiple functions: it generates virtual PINs, authenticates customers, processes transactions, and interfaces with both merchants and financial institutions. By consolidating these functions in a single universal platform, the patent avoids the need for separate systems for each function, thereby managing complexity while achieving enhanced security.

Inventive Principle:

Principle #6Universality (Multi-functionality)

Solution Approach 2:

The system automatically generates virtual PINs and manages the authentication process without requiring manual intervention. The payment processing platform self-manages the complexity of coordinating between merchants, customers, and financial institutions, reducing the operational burden on individual participants while maintaining security.

Inventive Principle:

Principle #25Self-service

3Adaptability or versatility

If virtual PIN and child product generation is implemented, then online PIN debit capability is enabled, but manufacturing complexity increases

Engineering Contradiction:

Improveonline transaction capabilityVSAvoidsystem implementation

Core Design Contradiction:

Adaptability or versatilityVSEase of manufacture

Solution Approach 1:

The payment processing platform pre-generates virtual PINs and associates them with customer accounts before online transactions occur. This preliminary action allows the system to have virtual PINs ready for use, eliminating the need for complex real-time generation during transactions and simplifying the overall implementation while enabling online PIN debit capability.

Inventive Principle:

Principle #10Preliminary action

Data Source

PatentUS10755277B2Systems and methods for secure debit payment

Publication Date: 2020.08.25 VERIENT

AI summary

A method for generating a personal identification number (PIN) debit child product for use in performing a debit payment transaction with a merchant entity. A payment processing platform receives a user selection of a financial institution made via a merchant payment page and directs the user to authenticate a user identity with the financial institution. The payment processing platform receives a user selection of a core account held with the financial institution, such that the core account provides financial backing for the PIN debit child product. The PIN debit child product is generated that includes a child card number and a virtual PIN associated with the core account. Advantageously, the method provides the ability to make PIN debit transaction on the Internet.