Interaction Terminal

Abstract

Embodiments of the present invention are directed to systems, apparatuses and methods for using a mobile device with an accelerometer to conduct a financial transaction by making contact with an interaction terminal, thereby generating interaction data that is representative of the physical contact between the mobile device and the interaction terminal. The mobile device may be a mobile phone. The interaction terminal may be a point of sale terminal, access point device, or any other stationary (i.e., in a fixed position) device positioned at a line, door, gate, or entrance. A mobile device with an accelerometer physically contacts the interaction terminal. The interaction terminal flexes, recoils, or moves and generates interaction data (e.g., accelerometer, location, time data, etc.) representative of the physical interaction between the mobile device and the interaction terminal. A server computer determines, based on interaction data, that the mobile device and the interaction terminal made physical contact. After determining that the mobile device and the interaction terminal made contact, communication may be initiated between the devices. Communications may relate to processing a payment transaction using a payment processing network.

Description

CROSS-REFERENCES TO RELATED APPLICATIONS[0001]The present application is a non-provisional application of and claims priority to U.S. Provisional Application No. 61 / 264,543, filed on Nov. 25, 2009, the entire contents of which are herein incorporated by reference for all purposes.BACKGROUND[0002]There are many situations in which a person or entity (“payor”) wishes to transfer money to another person or entity (“payee”). In the simplest situation, the payor physically transfers cash funds to the payee. In other situations, the payor transfers money to the payee, using a check. If the payee is a merchant, the payor may use a credit card, debit card, or other portable consumer device by presenting that card or portable consumer device to the merchant.[0003]The process described above suffers from several shortcomings. In cases where payment is made through a written instrument such as a check, the payee is not guaranteed that the payment instrument is valid (e.g., bounced check). In a...

AI Technical Summary

Benefits of technology

The invention is about a system and method for conducting financial transactions using a mobile device and an interaction terminal. The mobile device has a processor and a motion sensor, while the interaction terminal has a processor and a motion sensor. When the mobile device comes into contact with the interaction terminal, the system detects the interaction and initiates a request for authorization to a issuer. The issuer then approves or denies the authorization request. The technical effect of this invention is to provide a more secure and efficient way to conduct financial transactions using a mobile device and an interaction terminal.

Problems solved by technology

In addition, even if the written instrument is valid or cash is received, the payment still must be deposited by the payee into a checking or savings account, thus further delaying the availability of the funds in the account for further transactions.

Physical cards are subject to loss, theft, and fraudulent use.

With more advanced portable consumer devices (in smart phones and personal digital assistants), there is the problem of securely connecting with, and transferring money to, the intended party.

Past efforts to “beam” information from one mobile device to another mobile device have posed security and privacy concerns.

For example, payment account information might be accidentally sent to the wrong party.

Still worse, payment account information might be captured by a fraudster trolling the airwaves for payment account information.

However, setting up Bluetooth connections to “pair” devices takes time and can be inconvenient and cumbersome to the customer because a code may be required.

Other forms of device-to-device communication also suffer security and privacy problems.

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