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Enhanced authentication for debit/credit card transactions

IP.com Disclosure Number: IPCOM000237540D
Publication Date: 2014-Jun-20
Document File: 1 page(s) / 69K

Publishing Venue

The IP.com Prior Art Database

Abstract

Method for reducing card based fraud by pre-notifying a financial institution about an intention to use a card as a payment mechanism

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This is the abbreviated version, containing approximately 59% of the total text.

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Enhanced authentication for debit/credit card transactions

The current state of the art for card based transactions in Europe, and other parts of the world, is by the use of chip and pin; a chip embedded within the card the user holds and a pin code that the user knows.

    Despite this system's advantages, personal card based fraud is still occurring on a large scale.

    The system herein describes a means of reducing card based fraud by means of additional authentication actions which are simple to implement for the both the user and the financial institution.

    The change is that the user provides, prior to actually making a card transaction, a formal, authenticated "intention", via a separate channel (e.g. a mobile phone), which informs the financial institution that a request for a card

transaction is about to be made - in the "near" future.
The advantages of this approach are:
 as multiple, separate sets of credentials are provided, the risk of fraud is significantly reduced
These credentials would of course need to be made available
 no changes are required to existing POS systems
Separate systems would be needed by the financial institution to receive the intention notification, but the existing systems would not need to change except to the decision algorithm

    The system herein works by providing the financial institution with additional information about the nature of an impending transaction so that the bank has more confidence in the validity of the transacti...