Geofence Computing Device for Consumer Spending Analysis
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Solution Overview
Problem
Businesses and local governments face challenges in accurately determining consumer spending patterns and understanding how far customers are willing to travel for purchases, as existing methods rely on inaccurate polls and surveys, making it difficult to optimize retail location placement and set optimal tax rates.
Innovation Solution
A geofence computing device that tracks payment card transactions within defined geographic zones, using GPS and payment processor data to analyze spending trends and provide alerts based on geolocation comparisons, enabling more accurate predictive analytics for consumer behavior.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If polls or surveys are used to estimate consumer spending patterns, then data collection is simple and low-cost, but the accuracy of spending information is poor
Solution Approach 1:
The patent introduces geofence computing devices and payment processors as intermediaries between consumers and businesses/governments. These intermediaries automatically collect and transmit transaction data, eliminating the need for manual polls and surveys while providing accurate spending information.
Solution Approach 2:
The patent replaces the mechanical system of manual polling and surveying with an automated electronic system that uses geofencing technology and payment card transaction data to track and analyze consumer spending patterns automatically.
2Measurement precision
If geofencing technology with transaction tracking is implemented, then accuracy of spending information is improved, but device complexity and implementation cost increase
Solution Approach 1:
The patent makes existing payment card systems multi-functional by enabling them to not only process transactions but also automatically track location data and transmit it to geofence computing devices for analysis, eliminating the need for separate tracking systems.
Solution Approach 2:
The system enables self-service by allowing geofence computing devices to automatically receive, process, and analyze transaction data without manual intervention, and by enabling businesses and governments to access spending analytics through automated queries to the payment processor.
3Measurement precision
If detailed transaction data is collected and analyzed, then spending pattern accuracy is improved, but data privacy concerns and security requirements increase
Solution Approach 1:
The patent changes the parameters of data collection by using anonymized transaction data and aggregated spending patterns rather than collecting personally identifiable information, thereby maintaining accuracy while reducing privacy risks.
Data Source
AI summary
A geofence computing device, in communication with a user device and a payment processor, includes a memory and a processor in communication with the memory. The geofence computing device processor is configured to receive, from the user device, geofence data including a first user defined geofence zone having a first geographic area within a first geographic boundary, store the geofence data within the memory, receive, from the payment processor, from authorization request message transaction data representing a payment transaction initiated with a merchant by a cardholder associated with the payment processor, determine a geographic location of the merchant and a residence of the cardholder, compare the merchant geographic location and the cardholder residence geographic location to the first user defined geofence zone, and alert the user of the payment transaction based on the comparison. The transaction data includes at least one of a merchant location and a merchant identifier.