Methods and systems for blocking multi-rail contactless fraud

A computing device comprising:

• a database having a dynamic hashed security token record and a merchant account stored thereon, each being associated with a merchant, the merchant account further being associated with account registration information of the merchant;
• a processor;
• and
• a memory device including computer-readable instructions stored thereon, that when executed by the processor, cause the processor to perform operations comprising:
• receiving, from a software-based point-of-sale (POS) system operated by the merchant, a payment authorization request message, the payment authorization request message including transaction data and a dynamic hashed security token, the transaction data including transaction card details, a hardware identifier, an application identifier, and a merchant identifier corresponding to the merchant;
• extracting the dynamic hashed security token from the payment authorization request message;
• validating the dynamic hashed security token;
• upon validating the dynamic hashed security token, determining that the software-based POS system that transmitted the payment authorization request message is running a mobile POS software application;
• extracting the hardware identifier and the application identifier from the transaction data;
• comparing the hardware identifier and the application identifier to the account registration information stored with the merchant account on the database;
• determining that the hardware identifier and the application identifier match with the account registration information;
• and
• transmitting the payment authorization request message to an issuer associated with the transaction card details.

A non-transitory computer readable storage medium comprising computer readable instructions that, when executed by a processor, cause the processor to perform operations comprising:

• receiving, from a software-based point-of-sale (POS) system operated by a merchant, a payment authorization request message, the payment authorization request message including transaction data and a dynamic hashed security token, the transaction data including transaction card details, a hardware identifier, an application identifier, and a merchant identifier corresponding to the merchant;
• extracting the dynamic hashed security token from the payment authorization request message;
• validating the dynamic hashed security token;
• upon validating the dynamic hashed security token, determining that the software-based POS system that transmitted the payment authorization request message is running a mobile POS software application;
• extracting the hardware identifier and the application identifier from the transaction data;
• comparing the hardware identifier and the application identifier to account registration information stored with the merchant account on a database associated with the computing device;
• determining that the hardware identifier and the application identifier match with the account registration information;
• and
• transmitting the payment authorization request message to an issuer associated with the transaction card details.