Custom Tender POS Flow Using Mobile Tokenized Authorization
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Solution Overview
Problem
Modern POS systems often limit credit options and create barriers to transactions, particularly in mobile environments, due to concerns over fraud, data privacy, and regulatory compliance, which can hinder seamless transaction experiences.
Innovation Solution
A modular custom tender system is integrated with POS devices, allowing secure payment operations through a custom tender application on a separate device (e.g., a smartphone) via an ecosystem-specific SDK, utilizing tokenization and dynamic URL generation for secure data transmission and fraud detection, enhancing privacy and security.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If a traditional POS system is used for transactions, then the checkout process can be completed, but credit options are limited and barriers to transactions are created due to fraud concerns and data privacy issues
Solution Approach 1:
The patent introduces a separate mobile device as an intermediary between the POS terminal and the credit network. This mobile device handles sensitive authentication and credit card data processing, acting as a mediator that protects the POS system from direct exposure to sensitive data while enabling expanded credit options. The mobile device generates secure communication channels and handles tokenization, thereby resolving the contradiction between versatility and security.
Solution Approach 2:
The system segments the transaction process into distinct components: the POS terminal handles the user interface and basic transaction initiation, while the mobile device handles sensitive authentication and credit processing. This segmentation allows each component to specialize in specific functions, expanding overall transaction options while concentrating security measures in the mobile device segment.
2Adaptability or versatility
If client data is shared for credit transactions, then credit options can be provided, but regulatory compliance and privacy concerns create barriers
Solution Approach 1:
The mobile device serves as an intermediary that implements tokenization to replace sensitive client data with non-sensitive tokens during transmission to credit networks. This mediator approach enables credit transactions to proceed while regulatory compliance is maintained through encrypted and tokenized data channels, preventing direct exposure of sensitive information.
Solution Approach 2:
The patent replaces direct mechanical data sharing between POS and credit networks with a digital substitution system using tokenization and secure communication protocols. Instead of physically or directly sharing sensitive data, the system uses token representations that maintain regulatory compliance while enabling credit functionality.
3Ease of operation
If mobile platforms are used for POS transactions, then accessibility is improved, but security barriers and fraud concerns increase
Solution Approach 1:
The mobile device acts as a secure intermediary that leverages the security capabilities already present in mobile platforms (biometric authentication, secure enclaves, encrypted communications) to protect against fraud while maintaining the accessibility benefits of mobile POS usage. The mobile device mediates between the convenience of mobile access and the need for fraud prevention.
Solution Approach 2:
The system creates a secure copy of the authentication and transaction process in the mobile device, separate from the POS terminal. This copying allows the transaction to be initiated at the accessible POS interface while the sensitive security-critical operations are replicated and executed in the secure environment of the mobile device, reducing fraud risk.
Data Source
AI summary
Examples presented herein describe secure point of sale (POS) operations. One example is a method including receiving, at a mobile device, a communication associated with a custom tender payment for a secure transaction payment, where the mobile device includes a custom payment application configured for the secure transaction payment with a point of sale (POS) device. The method includes receiving account data associated with a user account selection for the custom tender payment for the secure transaction payment, transmitting an account signal including the account data, where when the account signal is transmitted to an integration server as part of the secure transaction payment, the account signal is not transmitted to the POS device, and receiving an authorization communication, where when the authorization communication is received by the mobile device from the integration server, the authorization communication is not communicated to the mobile device via the POS device.