Dynamic POS Payment Codes via Server Validation
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Solution Overview
Problem
Current point of sale (POS) transaction systems are vulnerable to fraud due to easily skimmed card data and interceptable fixed data, allowing unauthorized access and fraudulent activities.
Innovation Solution
Implementing dynamic machine-readable code settings at POS terminals that generate new codes at pre-defined intervals, using a server system to manage and validate these codes, ensuring only valid transactions are facilitated through a public key-private key encryption system.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If fixed data is used in POS terminals for transactions, then ease of operation is improved, but security is worsened due to interceptability
Solution Approach 1:
The patent implements dynamic machine-readable codes that are generated at pre-defined intervals and are valid only for specific time periods. This transforms the static, fixed data into dynamic, time-sensitive data that automatically changes, making interception useless after the validity period expires. The dynamic nature maintains ease of operation while fundamentally improving security.
Solution Approach 2:
The patent changes the temporal parameter of the data by introducing time validity periods and generation intervals. The machine-readable codes include time-related parameters that cause the data to be valid only within specific time windows, transforming fixed data into time-dependent data that cannot be reused after expiration.
2Object-affected harmful factors
If dynamic machine-readable codes are generated at pre-defined intervals, then security is improved, but device complexity is worsened
Solution Approach 1:
The patent implements periodic generation of machine-readable codes at pre-defined intervals. This systematic, periodic approach to code generation provides a clear and manageable complexity model, where the system automatically creates new codes at regular intervals rather than requiring complex real-time generation algorithms.
Solution Approach 2:
The patent introduces a server system as an intermediary that manages and validates the dynamic machine-readable codes. The server handles the complexity of code generation, validation, and time management, while the POS terminal and customer device only need to interact with the intermediary, simplifying their respective implementations.
3Object-affected harmful factors
If machine-readable codes are made valid for only pre-defined intervals, then fraud prevention is improved, but loss of time is worsened due to code expiration
Solution Approach 1:
The system automatically manages code generation, validation, and expiration without requiring manual intervention. The pre-defined intervals and automatic regeneration eliminate the need for users to manually update codes, and the system handles time management autonomously, reducing the perceived time loss for users.
Solution Approach 2:
The server system provides feedback to both the POS terminal and customer device regarding code validity and transaction status. This real-time feedback mechanism ensures that expired codes are immediately rejected while valid codes are processed, preventing fraud without requiring users to manually track code expiration times.
Data Source
AI summary
Embodiments provide a method for facilitating a payment transaction at a POS terminal. The method includes receiving, by a server system associated with a payment network, a machine-readable code comprising information corresponding to a merchant and a dynamic token. The machine-readable code is valid for only a pre-defined interval. The method includes sending, by the server system, a notification associated with the machine-readable code received from the customer device, to a merchant device for approval of the payment transaction. The method further includes receiving, by the server system, a merchant defined transaction code from the merchant device in response to receipt of the notification at the merchant device. The merchant defined transaction code indicates a nature of the payment transaction. facilitating, by the server system, the payment transaction upon receipt of the merchant defined transaction code from the merchant device.