QSecure's core technology and patents are centered on the proprietary chip embedded in the magnetic stripe, and the end-to-end transaction authorization of the unique number associated with each transaction. QSecure's patent portfolio, issued and pending, addresses the chip, card, authorization processes, and overall transaction model related to the QSecure solution.
QSecure's chip is a patented MEMS (Micro-Electro-Mechanical System) device. The chip is seamlessly embedded and integrated with the static magnetic stripe on the back of the card, to create a "hybrid stripe" that combines both static and dynamic data. The point-of-sale magnetic stripe reader does not distinguish between the static and dynamic portions of the data. To the terminal, the card appears as a standard magnetic stripe of card holder information that it sends, as usual, for authorization.
To merchant acquirers or processors, this is a standard credit or debit card transaction. There is no change required to process these dynamic transactions with unique numbers.
The card issuer examines the transaction using QSecure's authorization software and verifies the unique data. If it is fraudulent, they can immediately decline the transaction in real time.
QSecure has developed an end-to-end solution with its partners for card issuers to cost-effectively deploy QSecure SmartStripe™ cards and authenticate the unique data with minimal changes to their issuing authorization systems.
The QSecure authentication solution can be implemented by the issuer within their existing processing infrastructure or can be outsourced to a QSecure service partner.