Electronic Payment Device with Removable Packaging

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Solution Overview

Problem

Current electronic payment devices, such as credit and debit cards with magstripes, are prone to damage, costly for merchants, and lack control over usage, while stored value cards require large electronics and are inconvenient to carry.

Innovation Solution

A transceiver-based electronic payment device with a removable packaging and attachment system, allowing for easy activation and use, which can be carried on various carriers like clothing or accessories, and communicates with host systems for transaction processing.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Quantity of substance

If magstripe technology is used in credit and debit cards, then information storage capacity is improved, but reliability deteriorates due to susceptibility to destruction from scratching or magnetic exposure

Engineering Contradiction:

Improveinformation storage capacityVSAvoiddurability of magnetic stripe

Core Design Contradiction:

Quantity of substanceVSReliability

Solution Approach 1:

The patent replaces the mechanical magnetic stripe system with an electronic display system. Instead of storing information magnetically on a vulnerable stripe, the payment device uses an electronic display (such as an LCD or LED display) to show account information, which can be read by optical or electromagnetic scanners. This substitution eliminates the physical vulnerability of magnetic stripes to scratching and magnetic degradation while maintaining information storage and transmission capabilities.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

2Difficulty of detecting and measuring

If magstripe readers are used at POS terminals, then information reading capability is improved, but device complexity and cost increase due to bulky mechanical and magnetic elements

Engineering Contradiction:

Improveinformation reading capabilityVSAvoidcomplexity of magstripe reader

Core Design Contradiction:

Difficulty of detecting and measuringVSDevice complexity

Solution Approach 1:

The patent replaces complex mechanical magstripe readers with simpler optical or electromagnetic scanning systems. The electronic display on the payment device can be read by light-based or electromagnetic field-based scanners that lack the bulky mechanical components, moving parts, and strong magnets required by traditional magstripe readers. This reduces POS terminal complexity and cost while maintaining information reading capability.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

3Productivity

If credit and debit cards are linked to financial accounts, then transaction processing capability is improved, but ease of operation deteriorates due to difficulty in controlling spending

Engineering Contradiction:

Improvetransaction processing capabilityVSAvoidspending control

Core Design Contradiction:

ProductivityVSEase of operation

Solution Approach 1:

The patent segments the payment system into a reusable payment device (containing the display and identification information) and a financial account system. The device itself can be used repeatedly without reissuance, while spending control is managed through the account system. This allows parents to control children's spending by managing account limits and permissions, while the physical device remains a convenient, durable tool for transactions. The segmentation separates the function of identification (device) from the function of authorization and control (account system).

Inventive Principle:

Principle #1Segmentation

4Ease of operation

If stored value cards are used to limit spending and reduce fees, then ease of operation is improved, but device complexity increases due to requirement for large on-board electronics

Engineering Contradiction:

Improvespending controlVSAvoidelectronic components in card

Core Design Contradiction:

Ease of operationVSDevice complexity

Solution Approach 1:

The patent extracts the complex electronic storage and processing components from the payment device itself and places them in the external account system and POS terminals. The payment device contains only simple display elements and identification information, while balance storage, transaction processing, and spending control logic reside in the financial institution's systems. This extraction allows spending control functionality without requiring large, expensive electronics in the consumer's payment device.

Inventive Principle:

Principle #2Taking out (Extraction)

5Ease of operation

If stored value cards are delivered in credit card-like form, then ease of operation is improved, but portability deteriorates due to inconvenience of carrying

Engineering Contradiction:

Improveuser convenienceVSAvoidportability

Core Design Contradiction:

Ease of operationVSWeight of moving object

Solution Approach 1:

The patent employs flexible, thin-film construction for the payment device. The display element can be implemented as a flexible LCD, LED strip, or other thin-film technology that bends easily and weighs minimal amounts. This allows the device to maintain credit card-like dimensions and flexibility for easy carrying in wallets or pockets, while incorporating sufficient electronic components for display and communication functions.

Inventive Principle:

Principle #30Flexible shells and thin films

Data Source

PatentUS8296233B2Electronic payment instrument and packaging

Publication Date: 2012.10.23 FIRST DATA CORP

AI summary

Methods and systems provide and utilize a transceiver-based electronic payment device to consumers in an arrangement which allows for convenient carrying of the device and payment using the device.