Method and system for generating a dynamic verification value

• US 8,087,582 B2
• Filed: 05/10/2010
• Issued: 01/03/2012
• Est. Priority Date: 08/18/2003
• Status: Expired due to Term

• Current Assignee: Ayman Hammad, Christian Aabye, Jagdeep Singh Sahota, Patrick Faith
• Original Assignee: Ayman Hammad, Christian Aabye, Jagdeep Singh Sahota, Patrick Faith
• Inventors: Hammad, Ayman, Faith, Patrick, Aabye, Christian, Sahota, Jagdeep Singh
• Primary Examiner(s): Labaze, Edwyn
• Application Number:
  US12/776,949
• Publication Number:
  US 20100252623A1
• Time in Patent Office: 603 Days
• Field of Search: 235/379, 235/380, 235/375, 235/487, 235/451, 235/492, 235/493, 705/41
• US Class Current: 235/379
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/32 using wireless devices
• CPC Class Codes: G06Q 20/3227 using secure elements embedded in M-devices
• CPC Class Codes: G06Q 20/341 Active cards, i.e. cards including their own processing means, e.g. including an IC or chip
• CPC Class Codes: G06Q 20/3823 combining multiple encryption tools for a transaction
• CPC Class Codes: G06Q 20/388 using mutual authentication without cards, e.g. challenge-response
• 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 20/4093 Monitoring of device authentication
• CPC Class Codes: G07F 7/1008 Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system

Abstract

A method is disclosed. The method includes generating a verification value in response to a transaction involving a portable consumer device, where the verification value is generated using a first dynamic data element and a second dynamic data element. The verification value is sent to a service provider associated with the portable consumer device so that the service provider can verify the transaction.

Claims

1. A method comprising:

generating a verification value in response to a transaction involving a portable consumer device, wherein the verification value is generated using an application transaction counter, a first dynamic data element that is different from the application transaction counter, and a second dynamic data element that is different from both the application transaction counter and the first dynamic data element, wherein the first dynamic data element or the second dynamic data element comprises a non-random dynamic element; and

sending the verification value to a service provider with data in a magnetic stripe data format so that the service provider can verify the verification value.

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

3. The method of claim 2 wherein the static data element includes at least one of an expiration date, a phone number, a SIM card number, a service, code, and an account number.

4. The method of claim 1 wherein the verification value is derived using unique derived keys (UDKs).

5. The method of claim 1 wherein at least the first dynamic verification value or the second dynamic verification value falls within a predetermined range.

6. The method of claim 1 wherein the verification value is generated on the portable consumer device.

7. The method of claim 1 wherein the verification value is generated on a point of sale terminal.

8. The method of claim 1 wherein the non-random dynamic element relates to a consumer'"'"'s portable electronic device.

9. The method of claim 1 wherein the non-random dynamic element is a time of day.

10. The method of claim 1 wherein the non-random dynamic element does not change with each transaction.

11. The method of claim 1 wherein the non-random dynamic element relates to a consumer using the portable consumer device.

12. The method of claim 11 wherein the non-random dynamic element is an account balance.

13. A computer readable medium comprising:

code for generating a verification value in response to a transaction involving a portable consumer device, wherein the verification value is generated using an application transaction counter, a first dynamic data element that is different from the application transaction counter, and a second dynamic data element that is different from both the application transaction counter and the first dynamic data element, wherein the first dynamic data element or the second dynamic data element comprises a non-random dynamic element; and

code for sending the verification value to a service provider with data in a magnetic stripe data format so that the service provider can verify the verification value.

14. The computer readable medium of claim 13 wherein the verification value is also generated using at least one static data element, and wherein the transaction is a payment transaction.

15. The computer readable medium of claim 14 wherein the static data element includes at least one of an expiration date, a service, code, and an account number.

16. The computer readable medium of claim 13 wherein the verification value is derived using unique derived keys (UDKs).

17. A portable consumer device comprising the computer readable medium of claim 13.

18. A phone comprising the computer readable medium of claim 13.

19. A point of sale terminal comprising the computer readable medium of claim 13.

20. A method comprising:

receiving a verification value with data in a magnetic stripe data format in response to a transaction involving a portable consumer device, wherein the verification value is generated using an application transaction counter, a first dynamic data element that is different from the application transaction counter, and a second dynamic data element that is different from both the application transaction counter and the first dynamic data element, wherein the first dynamic data element or the second dynamic data element comprises a non-random dynamic element; and

determining if the received verification value matches a verification value at a service provider computer.

21. A system comprising:

means for receiving a verification value with data in a magnetic stripe data format in response to a transaction involving a portable consumer device, wherein the verification value is generated using an application transaction counter, a first dynamic data element that is different from the application transaction counter, and a second dynamic data element that is different from both the application transaction counter and the first dynamic data element, wherein the first dynamic data element or the second dynamic data element comprises a non-random dynamic element; and

means for determining if the received verification value matches a verification value at a service provider computer.