Virtual Wallet Authorization System for Secure E-Commerce Transactions
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Solution Overview
Problem
E-commerce transactions face challenges such as security concerns during information transmission, cumbersome authorization processes, and the lack of physical 'signing' procedures, leading to customer hesitation and increased fraudulent activities, which conventional systems fail to adequately address.
Innovation Solution
A system called ZixCharge, which includes a server wallet for secure storage and processing of payment information, allowing customers to authorize transactions without directly sharing personal details with merchants, using digital signatures and a centralized repository for secure and convenient e-commerce transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If customer manually enters payment information at each transaction, then transmission security is improved, but ease of operation deteriorates
Solution Approach 1:
The system performs preliminary action by storing payment information in the virtual wallet before transactions occur. The customer enters payment information once during wallet setup, and this information is retained for future transactions, eliminating the need to manually re-enter data at each transaction while maintaining security through encrypted storage and controlled access.
Solution Approach 2:
The virtual wallet acts as an intermediary between the customer and the merchant. Instead of the customer directly transmitting sensitive payment information to the merchant, the wallet serves as a secure middle layer that holds the information and facilitates transactions without exposing the actual payment details to the merchant, thus improving transmission security while simplifying the customer's interaction.
2Ease of operation
If customer stores payment information in database, then ease of operation is improved, but transmission security deteriorates
Solution Approach 1:
The virtual wallet serves as a secure intermediary database that the customer trusts. Payment information is stored encrypted in the wallet database with access controlled by the customer's password. The wallet then acts as a mediator that provides this information to merchants only through secure, authorized channels, maintaining both ease of operation (information is readily available) and transmission security (through encrypted storage and controlled release).
Solution Approach 2:
The system creates a secure copy of the payment information stored in the virtual wallet database. This copy can be used for transactions without exposing the original sensitive data. The wallet maintains the master copy encrypted and secure, while transactional copies are handled through secure protocols, allowing ease of operation without compromising the security of the primary information storage.
3Device complexity
If conventional authorization system is used, then device complexity is reduced, but reliability deteriorates due to fraudulent transactions
Solution Approach 1:
The virtual wallet system introduces an intermediary authorization layer between the customer and the conventional authorization system. The wallet captures and validates authorization information from the customer, then submits transactions to the conventional authorization system on the customer's behalf. This intermediary layer adds fraud prevention capabilities (by controlling and monitoring all authorization interactions) while maintaining compatibility with existing authorization infrastructure, thus improving reliability without excessively increasing overall system complexity.
Solution Approach 2:
The authorization process is segmented into distinct functional components: the virtual wallet module that handles customer interaction and information capture, the secure database module that stores payment information, and the transaction submission module that interfaces with the conventional authorization system. This segmentation allows each component to specialize in specific security functions while working together, improving overall system reliability through distributed security responsibilities rather than a single complex authorization system.
4Productivity
If e-commerce transaction process is simplified, then productivity is improved, but reliability deteriorates due to lack of physical signing
Solution Approach 1:
The system replaces the mechanical act of physical signing with an electronic authorization capture mechanism. Instead of requiring customers to physically sign paper forms, the virtual wallet captures electronic authorization information (such as password entry, biometric data, or electronic signature) that holds equivalent legal and security weight. This substitution maintains the simplified electronic transaction process (improving productivity) while providing reliable authorization verification (maintaining reliability) through digitally captured and secured authorization data.
Data Source
AI summary
A system and method for authorizing certain aspects of network based transactions between a customer and a merchant is disclosed.