iSignthis Patents - Expanded Intellectual Property Portfolio
- iSignthis holds 5 unique US Patents for Payment Instrument Verification.
- EU Member State Patents also granted, with further patents pending.
- Payment Instrument Verification is a core requirement of the EU's PSD2 and 4AMLD
Retrieval of a Secret Generated by iSignthis
The 5 granted US patents allow the company to offer PIV via the following means, whereby in each case the customer must first access their account issuers online, mobile or phone banking account, and retrieve a 'secret' generated by iSignthis and transmitted with the payment transaction.
The secret can be generated by the cardholder by utilising information transmitted with a transaction that appears in the descriptor field, including;
- solving a mathematical equation, or
- creating an anagram, or, completing a word form letters provided by iSignthis, or
- completing a numeric sequence, or
- matching a word in the descriptor to an onscreen picture.
The above 4 patents compliment and provide alternatives to the Company's previously announced patented 'ratio method', where the Sales amount is randomly divided into two amounts, and each of the amounts is calculated as a ratio against the Sales Amount. The ratio method ensures that when a customer retrieves the two values from the secure area of their account, and subsequently responds to iSignthis' verification request, that foreign currency conversion is automatically accommodated, as the ratio between the two sums will stay consistent, even after application of foreign exchange.
iSignthis also holds a US patent for adding or deducting a random amount from the Sales Amount, and requires the cardholder to access their account and retrieve the modified Sales Amount.
The importance of the US within the interconnected global payments and banking network means that US patent rights are of significance globally. The Company also holds European patents for its core Paydentity(TM) service.
EU's Payment Services Directive 2 (PSD2) and the One Leg Out Scenario
The European Banking Authority has a requirement that all card transactions originating from outside the EEA (European Economic Area) must be subject to either Strong Customer Authentication, or, "European PSPs (Payment Services Provider) shall make every reasonable effort to determine the legitimate use of the payment instrument". This requirement to determine legitimate use is known as the 'one leg out' requirement.
The Company sees opportunity for use of the above patents to solve the one leg out requirement as part of its own transactional banking and payment operations, which it will conduct under its own authorisation as a Monetary Financial Institution, soon to be operating in the EEA. PIV is also a critical function of Anti Money Laundering (AML) and Counter Funding of Terrorism (CFT) customer due diligence, to ensure that identity and ownership of accounts are matched.
Paydentity(TM) is the world's most advanced automated identity and payments platform, incorporating real time remote verification of end users domiciled in any FATF (Financial Action Task Force), MONEYVAL or equivalent low risk jurisdiction, leveraging verification of 'bank verified' payment instruments to establish identity. The Paydentity(TM) platform allows our merchants to on-board their customers at a much faster rate, whilst also increasing their overall customer reach.
The iSignthis(R) solution incorporates cascading KYC, which supplements UK residents data supplied from credit reference agencies, electoral roll and government public access data, with Paydentity(TM) data. This approach minimises customer friction for UK residents, by augmenting partial "1+1 matches" and "no match" customers with Paydentity payment instrument verification (PIV) and associated data and metadata, to deliver enhanced due diligence to satisfy the JMLSG (Joint Money Laundering Steering Group) and 4AMLD (Fourth Anti-Money Laundering Directive).
For customers domiciled in the rest of Europe or elsewhere in the world, where independent and reliable databases such as those found in the UK and Australia are limited, Paydentity(TM) provides our merchants with global reach and access to over 3.5Bn 'bank verified' potential customers, optimising customer on-boarding and conversions with marketing campaigns.
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About iSignthis Ltd
iSignthis Ltd (ASX:ISX) (FRA:TA8) is the global RegTech leader in remote identity verification, payment authentication and payment processing. iSignthis provides an end-to-end on-boarding service for merchants, with a unified payment and identity service via our Paydentity(TM) and ISXPay(R) solutions.
By converging payments and identity, iSignthis delivers regulatory compliance to an enhanced customer due diligence standard, offering global reach to any of the world's 4.2Bn 'bank verified' card or account holders, that can be remotely on-boarded to regulated merchants in as little as 3 to 5 minutes.
iSignthis Paydentity service is the trusted back office solution for regulated entities, allowing merchants to stay ahead of the regulatory curve, and focus on growing their core business.
iSignthis' and its subsidiary, iSignthis eMoney Ltd, trade as ISXPay(R), and is an EEA authorised eMoney Monetary Financial Institution, offering card acquiring in the EEA, Australia and New Zealand. ISXPay is a principal member of Visa Inc, Mastercard International and JCB International.
Read more about the company at our website http://www.isignthis.com