Identifier-Based Payment Verification for Delivery Confirmation
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Solution Overview
Problem
Current COD transactions face challenges such as payment fraud, charge-backs, and difficulties in ensuring delivery to the correct recipient, leading to inefficiencies and losses for buyers, sellers, and delivery companies.
Innovation Solution
Implementing an identifier-based system where the buyer enters a 'shared secret' upon delivery, which, if matching the associated identifier, triggers the release of funds from the buyer's account to the seller's account, ensuring secure and accurate payment through a payment provider like PayPal, with options for various identifier types and confirmation methods.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If COD transaction is used to ensure delivery to correct buyer, then payment security is improved, but transaction complexity increases
Solution Approach 1:
The system performs preliminary actions by pre-arranging the identifier-based verification mechanism before delivery occurs. The buyer and seller exchange identifiers in advance, and the verification system is pre-configured to check these identifiers at delivery, eliminating the need for complex real-time negotiations or manual verification procedures during the actual transaction.
Solution Approach 2:
The patent introduces an intermediary verification system that acts as a mediator between the buyer and seller. This system uses identifiers as a intermediary mechanism to confirm proper delivery without requiring direct complex interactions between parties, simplifying the overall transaction process while maintaining security.
2Reliability
If identifier verification system is implemented, then fraud prevention is improved, but ease of operation deteriorates
Solution Approach 1:
The system enables self-service by allowing the buyer to independently verify the seller's identifier and the delivery person's identifier without requiring intervention from bank officials or complex authentication procedures. The buyer simply compares the provided identifiers with their pre-arranged identifiers, making the fraud prevention process straightforward and user-friendly.
Solution Approach 2:
The patent uses identifier copying as a simplified verification method. Instead of complex biometric or document-based verification, the system relies on copying and comparing simple identifier strings (such as account numbers or reference codes) that can be easily transmitted and verified, maintaining security while improving ease of operation.
3Reliability
If funds are held until delivery confirmation, then seller protection is improved, but loss of time increases
Solution Approach 1:
The system implements a feedback mechanism where the delivery confirmation (verification that the identifier matches) automatically triggers the fund release process. This feedback loop ensures seller protection by confirming proper delivery before releasing funds, while simultaneously reducing delays by automating the release decision based on the verification result, eliminating manual approval wait times.
Solution Approach 2:
Funds are arranged to be held in advance (preliminary action) but are configured for automatic release upon verification. This preliminary arrangement protects the seller while the pre-configured automatic release mechanism minimizes the actual time funds are held, as soon as the identifier verification is complete, the funds are immediately released without additional delays.
Data Source
AI summary
Guaranteed funds from a buyer are held until a delivery to the buyer is confirmed by a payment provider. The funds are then released to the seller immediately upon confirmation. Confirmation may be accomplished by the buyer entering an identifier upon delivery or some other confirmation by the shipper, where the identifier was provided to the buyer during the transaction with the seller. In other embodiments, the identifier generated by the payment provider is provided partially to the buyer and partially to the seller. Upon receiving a match of the identifier from the buyer and seller on delivery, buyer funds are released to the seller.