DYNAMIC MAGNETIC STRIPE

• US 20080120236A1
• Filed: 11/14/2007
• Published: 05/22/2008
• Est. Priority Date: 11/16/2006
• Status: Active Grant

• Current Assignee: Visa USA, Inc. (Visa, Inc.)
• Original Assignee: Visa USA, Inc. (Visa, Inc.)
• Inventors: Faith, Patrick, Hammad, Ayman
• Granted Patent: US 8,504,451 B2
• Time in Patent Office: Days
• US Class Current: 705/44
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02
• CPC Class Codes: G07F 7/12 Card verification
• CPC Class Codes: G07F 7/122 Online card verification

Abstract

A method and computer readable medium for conducting a transaction, comprising receiving a verification value and a portion of a dynamic data element, determining candidate dynamic data elements using the portion of the dynamic data element, calculating candidate verification values using candidate dynamic data elements, and determining if the received verification value matches any of the candidate verification values, wherein the transaction is thereafter authenticated if a candidate verification value matches a candidate verification value.

Claims

1. A method for conducting a transaction, the method comprising:

receiving a verification value and a portion of a dynamic data element;

determining a plurality of candidate dynamic data elements using the portion of the dynamic data element;

calculating a plurality of candidate verification values using the plurality of candidate dynamic data elements; and

determining if the received verification value matches any of the plurality of candidate verification values, wherein the transaction is thereafter authenticated if the received verification value matches any of the plurality of candidate verification values.

2. The method of claim 1, further comprising storing a candidate dynamic data element that is associated with the matched candidate verification value.

3. The method of claim 1, further comprising, after determining if the received verification value matches any of the plurality of candidate verification values, sending an authentication response message to an access device, wherein the authentication response message indicates that the transaction is authorized.

4. The method of claim 1, wherein the transaction is declined if none of the candidate verification values matches the received verification value.

5. The method of claim 1, wherein the verification value is generated using at least one static data element, and wherein the transaction is a payment transaction.

6. The method of claim 5, wherein the static data element includes at least one of an expiration date, a phone number, a card number, a service code, and an account number.

7. The method of claim 1, wherein the verification value is derived using unique derived keys.

8. The method of claim 1, wherein the dynamic data element is derived from an initial dynamic data element that is derived from personal information comprising a PAN, an expiration date, and a service code.

9. A method for conducting a transaction, comprising:

generating a verification value in response to a transaction involving a portable consumer device; and

sending the verification value and a portion of a dynamic data element to a service provider,

wherein the service provider determines whether the verification value matches any of a plurality of candidate verification values, wherein each of the plurality of candidate verification values is calculated using a plurality of candidate dynamic data elements, each of the plurality of candidate dynamic data elements is calculated using the portion of the dynamic data element,

wherein the transaction is thereafter authenticated if the verification values matches any of the plurality of candidate verification values.

10. The method of claim 9, further comprising:

constructing a data string using the dynamic data element;

deriving one or more unique derived keys using the dynamic data element; and

encrypting the data string with the one or more unique derived keys,

wherein generating the verification value comprises determining the verification value from the encrypted data string.

11. A computer readable medium, comprising:

code for receiving a verification value and a portion of a dynamic data element;

code for determining a plurality of candidate dynamic data elements using the portion of the dynamic data element;

code for calculating a plurality of candidate verification values using the plurality of candidate dynamic data elements; and

code for determining if the received verification value matches any of the plurality of candidate verification values, wherein the transaction is thereafter authenticated if the received verification value matches any of the plurality of candidate verification values.

12. The computer readable medium of claim 11, further comprising code for storing the candidate dynamic data element associated with the matched candidate verification value.

13. The computer readable medium of claim 11, further comprising code for authenticating the transaction if the received verification value matches any of the candidate verification values.

14. The computer readable medium of claim 11, further comprising code for declining to authenticate the transaction if the received verification value does not match any of the candidate verification values.

15. The computer readable medium of claim 11, wherein the verification value is generated using at least one static data element, wherein the transaction is a payment transaction.

16. The computer readable medium of claim 11, wherein the static data element includes at least one of an expiration date, a phone number, a card number, a service code, and an account number.

17. The computer readable medium of claim 11, wherein the verification value is derived using unique derived keys.

18. The method of claim 11, wherein the dynamic data element is derived from an initial dynamic data element that is derived from personal information comprising a PAN, an expiration date, and a service code.

19. A computer readable medium, comprising:

code for generating a verification value in response to a transaction involving a portable consumer device;

code for sending the verification value and a portion of a dynamic data element to a service provider; and

code for receiving a message from the service provider, wherein the message indicates whether the sent verification value matches any of one or more candidate verifications values, the one or more candidate verification values calculated using one or more candidate dynamic data elements, the one or more candidate dynamic data elements calculated using the portion of the dynamic data element, wherein the transaction is thereafter authenticated if the sent verification value matches any of one or more candidate verifications values.

20. The computer readable medium of claim 19, further comprising:

code for constructing a data string using the dynamic data element;

code for deriving one or more unique derived keys using the dynamic data element; and

code for encrypting the data string with the one or more unique derived keys,

wherein the code for generating the verification value comprises code for determining the verification value from the encrypted data string.

21. A system comprising:

a database; and

a server coupled to the database and operable to;

receive a verification value and a portion of a dynamic data element;

determine a plurality of candidate dynamic data elements using the portion of the dynamic data element;

calculate a plurality of candidate verification values using the plurality of candidate dynamic data element;

determine if the received verification value matches any of the plurality of candidate verification values; and

if the received verification value matches any of the plurality of candidate verification values, store the candidate dynamic data element associated with the matching candidate verification value,

wherein the transaction is thereafter authenticated if the received verification value matches any of the plurality of candidate verification values.