Dynamic Visual Code Refresh for Payment Fraud Prevention
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Solution Overview
Problem
In-store electronic payment systems can be expensive to obtain, operate, and maintain, and existing solutions do not effectively prevent fraud such as misplacement of static visual codes leading to incorrect payment transactions.
Innovation Solution
A system where a merchant device establishes a network connection with a payment provider server to dynamically adjust visual codes, such as QR codes, based on authentication and code change criteria, preventing fraud by periodically changing the visual codes displayed.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Device complexity
If static visual codes are used for payment transactions, then device complexity is reduced, but security against fraud deteriorates
Solution Approach 1:
The patent applies dynamics by transitioning from static visual codes to dynamically generated codes that change over time. The merchant device receives periodic updates from the payment provider server, receiving new visual code data that replaces the displayed code after a specified time period or after a certain number of uses, thereby enhancing security while maintaining system simplicity
Solution Approach 2:
The patent implements periodic action through time-based code expiration and regeneration. The visual code is automatically invalidated after a predetermined time period elapses, requiring the merchant device to request and display a new code from the payment provider server, creating regular security refreshes without complex user intervention
2Reliability
If dynamic visual codes are implemented, then fraud prevention capability is improved, but device complexity increases
Solution Approach 1:
The patent applies self-service by enabling the merchant device to autonomously manage visual code updates without manual intervention. The device automatically requests new codes from the payment provider server based on time expiration or usage criteria, and autonomously replaces displayed codes, eliminating the need for manual code configuration or complex authentication workflows
Solution Approach 2:
The patent uses the payment provider server as an intermediary that centralizes the complexity of code generation and management. The server handles secure code creation, expiration tracking, and regeneration logic, allowing the merchant device to maintain simplicity while benefiting from sophisticated security through the intermediary's backend processing
3Reliability
If visual codes are periodically changed, then security is enhanced, but loss of time in code updates increases
Solution Approach 1:
The patent applies preliminary action by pre-establishing the visual code validity period and regeneration triggers in advance. The system configures time-based expiration criteria and usage-based regeneration thresholds beforehand, allowing automatic code updates without real-time decision-making or manual intervention during the payment process
Solution Approach 2:
The merchant device autonomously monitors code expiration and automatically requests regeneration from the payment provider server without requiring merchant or customer action. This self-service mechanism ensures continuous security updates while minimizing disruption to the payment flow, as the device handles the entire code renewal process independently
Data Source
AI summary
A system is configured to perform operations that include causing a merchant device to display a first visual code. The operations further include receiving a request to initiate a payment transaction between a consumer and a merchant, the request to initiate the payment transaction being transmitted to the system in response to a consumer device of the consumer scanning the first visual code displayed by the merchant device. The operations also include causing funds to be transferred from an account of the consumer to an account of the merchant. Further, the operations include in response to determining, based on one or more criteria, an occurrence of a code change event, causing the merchant device to display a second visual code in replacement of the first visual code.