Cryptocurrency Payment Terminal Refund Processing

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Solution Overview

Problem

Retailers are hesitant to accept cryptocurrencies due to fluctuations in exchange value and lack of efficient refund processes, as existing systems do not support cryptocurrency payments or refunds effectively.

Innovation Solution

A system and method for cryptocurrency payment and refund processing on a transaction terminal, utilizing a transaction manager that integrates with a Blockchain or Acyclic Graph network to facilitate cryptocurrency transactions, including displaying cryptocurrency options, calculating exchange rates, and managing refunds through unique transaction identifiers.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Adaptability or versatility

If retailers accept cryptocurrency payments, then they can offer new payment options to customers, but they face fluctuation risk in exchange value

Engineering Contradiction:

Improvepayment optionsVSAvoidexchange value stability

Core Design Contradiction:

Adaptability or versatilityVSReliability

Solution Approach 1:

The system performs preliminary actions by locking in the exchange rate at the moment of transaction initiation and calculating the equivalent government-backed currency amount before the cryptocurrency transfer is complete. This preliminary valuation protects the retailer from subsequent exchange rate fluctuations, as the refund obligation is established in stable government-backed currency rather than volatile cryptocurrency.

Inventive Principle:

Principle #10Preliminary action

2Reliability

If retailers wait for cryptocurrency transfer confirmation, then they ensure payment security, but they experience delayed transaction completion

Engineering Contradiction:

Improvepayment securityVSAvoidtransaction completion time

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The system performs preliminary validation by checking the cryptographic network for the presence of a pending transaction identifier before fully completing the transaction. This preliminary check provides sufficient security assurance without requiring the retailer to wait for full confirmation, thereby reducing transaction completion time while maintaining adequate payment security.

Inventive Principle:

Principle #10Preliminary action

3Stability of the object's composition

If retailers provide cryptocurrency refunds, then they maintain payment consistency, but they expose customers to exchange value fluctuation risk

Engineering Contradiction:

Improvepayment consistencyVSAvoidexchange value risk to customer

Core Design Contradiction:

Stability of the object's compositionVSObject-affected harmful factors

Solution Approach 1:

The system creates a copy of the original transaction value in the form of government-backed currency for refund purposes. Instead of returning the original cryptocurrency, the system calculates and provides an equivalent amount in stable government-backed currency, thereby maintaining the monetary value of the refund while eliminating the harmful fluctuation risk that would otherwise be passed to the customer.

Inventive Principle:

Principle #26Copying

4Adaptability or versatility

If retailers implement cryptocurrency payment processing, then they enable cryptocurrency acceptance, but they increase system complexity

Engineering Contradiction:

Improvecryptocurrency acceptanceVSAvoidpayment processing system

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The system introduces an intermediary layer that translates between cryptocurrency transactions and traditional government-backed currency processing. This intermediary mechanism handles the complexity of cryptocurrency validation, exchange rate calculation, and refund processing, allowing the core payment system to remain relatively simple while still supporting cryptocurrency payments through the mediating translation layer.

Inventive Principle:

Principle #24Intermediary (Mediator)

Data Source

PatentUS11593793B2Cryptocurrency payment and refund processing on a transaction terminal

Publication Date: 2023.02.28 NCR ATLEOS CORP

AI summary

A transaction terminal provides processing for payment using a cryptocurrency during a transaction being conducted at the transaction terminal. The transaction terminal further provides processing for a refund transaction utilizing cryptocurrency.