Geolocation-Based Cardless Payment Authorization
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Solution Overview
Problem
Conventional point-of-sale credit card transactions require physical card swiping and signature or PIN verification, which can be inconvenient and risk unauthorized transactions, especially when dealing with multiple merchant locations and customers.
Innovation Solution
A cardless payment system that uses geolocation to authorize transactions between users and merchants without physical card presentation, allowing users to 'check-in' within a predetermined distance of a merchant to consent to payments, which are then processed through a secure network without revealing financial account details to the merchant.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If physical card swiping is used for transactions, then transaction security is improved through card verification, but customer convenience deteriorates due to the need to carry and swipe physical cards
Solution Approach 1:
The patent replaces the mechanical card-swiping system with a geolocation-based authorization system. Instead of physically swiping a card through a magnetic reader, the system uses GPS coordinates and distance calculations to determine customer proximity to the merchant, eliminating the need for physical card handling while maintaining security through location-based verification.
Solution Approach 2:
The patent introduces a server as an intermediary between the customer and merchant. The server receives location data from the customer's mobile device, determines proximity to the merchant, and authorizes the transaction based on this information. This intermediary layer enables cardless transactions by mediating the authorization process without requiring direct physical interaction with payment cards.
2Ease of operation
If cardless payment transactions are implemented, then customer convenience is improved by eliminating physical card swiping, but transaction security risk increases due to potential unauthorized transactions
Solution Approach 1:
The patent changes the authorization parameter from physical card presence to geolocation data. By using GPS coordinates and calculating distance between the customer's device and the merchant's location, the system maintains security controls while enabling contactless transactions. The predetermined distance threshold serves as a configurable parameter that balances convenience and security.
3Adaptability or versatility
If multiple merchant devices are used by a single merchant, then merchant versatility is improved by operating multiple locations, but system complexity increases in managing transactions across locations
Solution Approach 1:
The patent makes the merchant device system universal by enabling a single merchant to operate multiple devices at different locations. Each merchant device functions independently to serve customers in its vicinity, while the server coordinates transactions across all devices. This multi-functional setup allows merchants to expand to multiple locations without increasing operational complexity for individual devices.
Solution Approach 2:
The patent segments the merchant's operational presence across multiple independent devices located at different physical locations. Each device operates autonomously to serve local customers, while the server provides centralized coordination. This segmentation allows the merchant to expand versatility across locations without creating a complex centralized system at each site.
4Reliability
If geolocation-based authorization is used, then unauthorized transaction risk is reduced by verifying customer proximity, but measurement precision requirements increase for location determination
Solution Approach 1:
The patent uses partial precision by determining whether the customer is within a predetermined distance threshold of the merchant, rather than requiring exact location matching. This approach provides sufficient precision for security purposes (confirming proximity) without demanding excessive measurement accuracy, balancing unauthorized transaction prevention with practical location determination capabilities.
Data Source
AI summary
A method includes receiving a request for a list of nearby user devices, where the list of nearby user devices will be sent to a merchant device, where the merchant device is associated with a merchant, where the merchant operates a plurality of merchant devices, and where the merchant device is included in the plurality of merchant devices; receiving a respective location for one or more user devices, where each user device is associated with the merchant; determining, for each of the one or more user devices, whether the user device is nearby the merchant device, based on the respective location, to the merchant device than the other merchant devices in the plurality of merchant devices; generating the list of nearby user devices based at least on the determination; and sending the list of nearby user devices to the merchant device.