Methods and systems for dynamically generating a verification value for a transaction and for utilizing such value to verify the authenticity of the payment service application. The dynamically created verification value may be generated on a payment device, such as an integrated circuit credit card or smart card, embedded into the payment data, and transmitted to a point of sale terminal. Alternatively, payment data is sent by a payment device to a point of sale terminal, which generates a verification value and embeds it into the payment data. The embedded verification value is used by a service provider to verify the authenticity of the transaction. The methods and systems may be used in a contactless (wireless) environment or a non-wireless environment.

Method and system for generating a dynamic verification value

Embodiments of the invention enable cardholders conducting an online transaction to be authenticated in real-time using a challenge-response application. The challenge-response application can be administered by an issuer or by a third party on-behalf-of an issuer. A challenge question can be presented to the cardholder, and the cardholder's response can be verified. The challenge question presented can be selected based on an analysis of the risk of the transaction and potentially other factors. A variety of dynamic challenge questions can be used without the need for the cardholder to enroll into the program. Additionally, there are many flexible implementation options of the challenge-response application that can be adjusted based on factors such as the location of the merchant or the location of the consumer.

Online challenge-response

Likelihood of fraud is reduced by having at least one of an identifier of a location from where a request is submitted or information that can lead to identification of the location, submitted with or in addition to a request. Then, determination is made to whether to service the request, based at least in part on the location from where the request is submitted. In various embodiments, the location may be compared against predetermined permissible location(s) or a current user location. The request may be a request to charge an amount against an account, such as a credit card account, a request to access a physical resource, such as a VPN, or an informational resource, such as account information, or a request to access a secured area.

Location based fraud reduction system and method

A portable consumer device that is used to conduct a transaction at a merchant is authenticated. Information provided to a server computer includes locations of a merchant and a mobile communication device possessed by a consumer. If the location of the mobile communication device corresponds to the location of the merchant, the portable consumer device that is used to conduct the transaction is authenticated.

Location based authentication

Offers from multiple entities provide an incentive for consumers to behave in a manner that is beneficial to the offer provider. Each offer is associated with rules that establish conditions that must be met for the offer to be valid. For example, a rule may be established to promote the use a specific form of payment, such as a particular credit card. Thus, the offer would only be valid if the consumer paid for the merchandise using the particular credit card. A merchant may generate its own offers or receive offers from a variety of sources (e.g., a payment processing organization, an issuer, or other external sources).

Coupon offers from multiple entities

An authentication system and method uses information on a position of a card as determined, for example, by detecting a position of a user's cell phone and the position of a card reader determined from card reader identification data. If the card is used in a card reader located near the user's cell phone, and the usual card authorizations are approved, it is determined that the card use is authorized. The position information thus serves as an additional level of security against a lost or stolen card.

Authentication system using information on position

PROBLEM TO BE SOLVED: To provide a personal authentication system capable of removing a person except the subject to be authenticated, namely, illegal authentication by pretense, by the position for executing the authentication and information of the position of an authenticator, and thereby heightening furthermore the safety of the authentication, an authentication system by a card, and a door lock system by a password number. SOLUTION: The personal authentication device 101 is a device having an authentication means 102, an authentication device position detection means 103 for detecting the self position, an authentication object registration region 104, an authentication method setting means 105, a position judging means 106, an illegal use notification means 107, and a communication means 108. By using a position detection device 109 of the authentication object and the personal authentication device, it is judged whether the authentication object is a normal authentication object or not by the position judging means from position information of the personal authentication device detected by the authentication device position detection means and the positional relation of the authentication object detected by the position detection device of the authentication object, and the authentication is supplemented by its own authentication means.

Personal authentication system using position information, authentication system by card and door lock system by password number

The user of a credit card 212 can be authenticated by determining whether the position of the user's mobile telephone 211 accords with the point of use of the card 202. An authentication unit 201 of the card company calculates information on the position of the card reader 202 by referring to a database 205 which stores identification information and corresponding locations of card readers. The authentication unit searches a card user database 204 for the telephone number of the card user's mobile telephone and a position-acquiring unit 206 acquires information on the position of the telephone on the basis of its telephone number. Authentication of the user is based on a comparison of the position of the point of use of the card and that of the user's telephone. The user can be notified via his mobile telephone that the card is used at a position remote from him or by a person other than him. In another embodiment (Fig. 4) a PIN entered at a doorlock is likewise authenticated by determining whether the position of the PIN-holder's mobile telephone coincides with the position of the doorlock.

Satoru Fujii

Papers

Authentication system using information on position

Personal authentication system using position information, authentication system by card and door lock system by password number

Authentication system using position information