Browse Prior Art Database

Secured Two-Step electronic payment system

IP.com Disclosure Number: IPCOM000249760D
Publication Date: 2017-Mar-31
Document File: 3 page(s) / 69K

Publishing Venue

The IP.com Prior Art Database

Abstract

Online or in-store, typical electronic payments force users to expose their credentials while making the transactions. For example, a payer gives his card to a store associate to perform the transaction, the store associate then uses the NFC/Magnetic-strip/chip reader, the transaction is processed, and then the customer gets his card back. There is a chance for a rogue device/system within the end-to-end process that may lead to potential misuse (cloning of cards etc.). Though this problem is comparatively reduced with the use of mobile wallets (which emulate a different card for each transaction) it could be a potential problem in the future as a customer is still exposing his identify at the time of performing the transaction. And with the number of transactions growing, there could be a potential limitation on the number of virtual credit cards that can be generated. To solve this, a gateway may be provided that can break the current process of money transfer into two steps. This gateway would create a transaction from one party, then wait for another party to link to it to complete the process.

This text was extracted from a PDF file.
This is the abbreviated version, containing approximately 53% of the total text.

Secured Two-Step electronic payment system

Online or in-store, typical electronic payments force users to expose their credentials while making the

transactions. For example, a payer gives his card to a store associate to perform the transaction, the store

associate then uses the NFC/Magnetic-strip/chip reader, the transaction is processed, and then the

customer gets his card back. There is a chance for a rogue device/system within the end-to-end process

that may lead to potential misuse (cloning of cards etc.).

Though this problem is comparatively reduced with the use of mobile wallets (which emulate a different

card for each transaction) it could be a potential problem in the future as a customer is still exposing his

identify at the time of performing the transaction. And with the number of transactions growing, there

could be a potential limitation on the number of virtual credit cards that can be generated.

To solve this, a gateway may be provided that can break the current process of money transfer into two

steps. This gateway would create a transaction from one party, then wait for another party to link to it to

complete the process.

In this new approach, a recipient (i.e. store associate) will initiate a transaction, and receive a unique

transaction ID from the financial institutions. A customer is asked to tap his mobile to the NFC

infrastructure to load the unique transaction ID into his smart phone. Or, the customer could use any other

existing infrastructure (print/email/SMS/WI-FI/Bluetooth) for the same purpose. Now the customer can

link to the transaction using the unique transaction ID and complete the transaction using his card/wallet

etc. Once the customer has completed the tra...