# US 10,503,936 B2 · Systems and methods for utilizing magnetic fingerprints obtained using magnetic stripe card readers to derive transaction tokens

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- Number: US 10,503,936 B2
- Document ID: US10503936B2
- Status: Granted
- Kind: B2
- Application number: 15/907,173
- Filed: 2018-02-27
- Published: 2018-09-06
- Granted: 2019-12-10
- Earliest claimed: 2017-02-27
- Assignees: MagTek, Inc.
- Applicants: MagTek, Inc.
- Inventors: Annmarie D. Hart; Roger Warren Applewhite
- Web page: https://patentgrep.com/patent/US10503936B2

## CPC

- G06K 7/087: {flux-sensitive, e.g. magnetic, detectors (G06K7/10336 takes precedence)}
- G06Q 20/34: using cards, e.g. integrated circuit [IC] cards or magnetic cards
- G06Q 20/3567: {Software being in the reader}
- G06Q 20/385: {using an alias or single-use codes}
- G07F 7/0873: {Details of the card reader}
- H04L 9/0866: {involving user or device identifiers, e.g. serial number, physical or biometrical information, DNA, hand-signature or measurable physical characteristics}
- H04L 9/0869: {involving random numbers or seeds}
- H04L 9/32: including means for verifying the identity or authority of a user of the system {or for message authentication, e.g. authorization, entity authentication, data integrity or data verification, non-repudiation, key authentication or verification of credentials}
- H04L 9/3226: {using a predetermined code, e.g. password, passphrase or PIN (network architectures or network communication protocols for supporting authentication of entities using passwords in a packet data network H04L63/083)}
- H04L 2209/56: Financial cryptography, e.g. electronic payment or e-cash
- G06K: GRAPHICAL DATA READING (image or video recognition or understanding G06V); PRESENTATION OF DATA; RECORD CARRIERS; HANDLING RECORD CARRIERS
- G06Q: INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
- G07F: COIN-FREED OR LIKE APPARATUS (coin sorting G07D3/00; coin testing G07D5/00; {handling coins or paper currencies apart from payment activated apparatus G07D; payment architectures, schemes or protocols G06Q20/00})
- H04L: TRANSMISSION OF DIGITAL INFORMATION, e.g. TELEGRAPHIC COMMUNICATION (arrangements common to telegraphic and telephonic communication H04M)

## Abstract

Systems and methods for utilizing magnetic fingerprints obtained using magnetic stripe card readers to generate digital transaction tokens in accordance with embodiments of the invention are disclosed. In one embodiment, a method for authenticating a user using a digital token includes collecting user information and card information from an identification card containing an electronically readable component using a user authentication terminal, where the user information describes identifying information about a user and the card information describes information to uniquely identify the identification card, collecting session information using the user authentication terminal, wherein the session information describes information regarding a request for an authenticated communications session, generating a digital token based on the collected user information, the collected card information, and the collected session information using the user authentication terminal, and sending the digital token to a host access processor for authorization of an authentication request.

## Claims

### Claim 1

A method for authenticating a digital token used in a user authentication transaction comprising:
receiving a digital token from a user authentication transaction terminal;
extracting information from the digital token, wherein the information includes information describing a unique intrinsic characteristic of an electronically readable component of an identification card, user information, and session information, where:
the information describing a unique intrinsic characteristic is a derived value differing from and correlating to a reference description of the unique intrinsic characteristic;
the user information describes identifying information about a cardholder; and
the session information describes information regarding a request for an authenticated communications session;
comparing the extracted information describing the unique intrinsic characteristic to the reference description of the unique intrinsic characteristic to generate a correlation score;
authorizing the user authentication transaction based on at least some of the extracted information from the digital token; and
returning a user authentication transaction result to the user authentication transaction terminal, wherein:
a positive result is returned, if the correlation score is at or above a threshold correlation value and the at least one other piece of information is valid; and
a negative result is returned, if the correlation score is below the threshold correlation value or if the at least one other piece of information is not valid.

### Claim 2 (depends on 1)

The method of claim 1, wherein:
the digital token is encrypted; and
the method further comprises decrypting the digital token.

### Claim 3 (depends on 1)

The method of claim 1, wherein:
the digital token includes authentication factors, where the authentication factors identify at least one of the group consisting of the cardholder and the payment card; and
further comprises verifying the authentication factors.

### Claim 4 (depends on 3)

The method of claim 3, wherein the authentication factors includes at least one of the group consisting of: a personal identification number (PIN), password, biometric data, and a unique number identifying the magnetic stripe card.

### Claim 5 (depends on 1)

The method of claim 1, wherein the electronically readable component is a magnetic stripe.

### Claim 6 (depends on 5)

The method of claim 5, wherein:
the information describing the unique intrinsic characteristic is a transactional magnetic fingerprint representing a sequence identifying a unique remanent noise characteristic of the magnetic stripe; and
the reference description is a reference magnetic fingerprint.

### Claim 7 (depends on 1)

The method of claim 1, wherein the user information includes at least one of the group consisting of: a name of the cardholder, home address of the user, work address of the user, access permissions, access attempt location, biometric data and password.

### Claim 8 (depends on 1)

The method of claim 1, wherein the session information includes at least one of the group consisting of: login time, encrypted data, session identifier, and login location.

### Claim 9

A method for authenticating a digital token used in a payment transaction comprising:
receiving a digital token from a payment transaction terminal;
extracting information from the digital token, wherein the information includes information describing a unique intrinsic characteristic of an electronically readable component of a payment card, cardholder information, and transaction information, where:
the information describing a unique intrinsic characteristic is a derived value differing from and correlating to a reference description of the unique intrinsic characteristic;
the cardholder information describes identifying information about a cardholder; and
the transaction information describes information regarding the type and amount of a payment transaction;
comparing the extracted information describing the unique intrinsic characteristic to a reference description of the unique intrinsic characteristic;
authorizing the payment transaction based on at least some of the extracted information from the digital token; and
returning a payment transaction result to the payment terminal, wherein:
a positive result is returned, if the correlation score is at or above a threshold correlation value and the at least one other piece of information is valid; and
a negative result is returned, if the correlation score is below the threshold correlation value or if the at least one other piece of information is not valid.

### Claim 10 (depends on 9)

The method of claim 9, wherein:
the digital token is encrypted; and
the method further comprises decrypting the digital token.

### Claim 11 (depends on 9)

The method of claim 9, wherein:
the digital token includes authentication factors, where the authentication factors identify at least one of the group consisting of: the cardholder and the payment card; and
further comprising verifying the authentication factors.

### Claim 12 (depends on 11)

The method of claim 11, wherein the authentication factors includes at least one of the group consisting of: a personal identification number (PIN), password, biometric data, and a unique number identifying the magnetic stripe card.

### Claim 13 (depends on 9)

The method of claim 9, wherein the electronically readable component is a magnetic stripe.

### Claim 14 (depends on 13)

The method of claim 13, wherein:
the information describing the unique intrinsic characteristic is a transactional magnetic fingerprint representing a sequence identifying a unique remanent noise characteristic of the magnetic stripe; and
the reference description is a reference magnetic fingerprint.

### Claim 15 (depends on 9)

The method of claim 9, wherein the cardholder information includes at least one of the group consisting of: a name of the cardholder, account information for an account associated with the cardholder, shipping address of the cardholder, and billing address of the cardholder.

### Claim 16 (depends on 9)

The method of claim 9, wherein the transaction information includes at least one of the group consisting of: routing information for a beneficiary account, routing information for a destination account, a transaction amount, perso codes, and a session identifier.