MagnePrint uses the inherent properties of magnetic materials to provide the authorization algorithm with a reliable measure of how likely it is that the card presented is the original card issued by the issuer – not a clone, not a copy, or not one that has altered data on the magnetic stripe, but the unique original. There currently exists no other cost effective technology capable of providing such statistically reliable, real time authentication of the payment instrument in a credit or debit card transaction. As a result, issuers that take MagnePrint into account in their authorization process should see an immediate and material decline in their fraud losses resulting from skimming.
Capture the Reference MagnePrint
MagTek makes readers that recover the encoded track data and the MagnePrint simultaneously. The MagnePrint is converted to a 54 byte digital string. When the card is first issued or first used, the Card Issuer or the Card Processor stores the digitized original MagnePrint on the Cardholder file. This is designated as the Reference MagnePrint. (The largest MagnePrint Reference database is operated by Magensa LLC, a payment gateway that provides fraud alerts, coupled with its PCI DSS compliant decryption, tokenization, and authentication services.)
Capture the Transaction MagnePrint
MagTek makes a variety of readers suitable for use in ATMs, gas pumps, PDAs, kiosks, PCs, vending machines, MACs, cell phones, ECRs and POS terminals. When a card is read, the encoded card data, the MagnePrint and the usual transaction details are sent to the Authorization server for verification. The MagnePrint obtained at this time is designated the Transaction MagnePrint.
Verify the Transaction MagnePrint
Transaction MagnePrints have a remarkable and valuable feature. They change stochastically – that is they change dynamically, but in ways that can’t be predicted with any certainty. The change is a matter of probability, built in by the imperfection of nature. The odds of obtaining two identical 54 byte Transaction MagnePrints from a single card are about 1 in 100 million. A Transaction MagnePrint identical to one previously used will be rejected. This inherent variability of Transaction MagnePrints provides an algorithmically verifiable, unique transaction number for every card swipe.
Score the Transaction MagnePrint against the Reference MagnePrint
MagTek licenses MagneScore™, a software application that receives a Transaction MagnePrint, compares it to the Reference MagnePrint and calculates a score based on the correlation between the two. A high score indicates a legitimate card. A low score points to a counterfeit card. The Card Issuer sets the minimum passing score and uses the MagnePrint Score as part of the transaction accept/decline criteria. MagnePrint scoring is a fast “real-time” process. Typical scoring times are 10 milliseconds or less.