Indicia-Based Payment Authorization via Low-Value Token
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Solution Overview
Problem
Users face inconvenience in conducting payment transactions using multiple financial accessories and are hesitant to share sensitive information with merchants, leading to a need for efficient, remote payment systems that protect personal financial data.
Innovation Solution
A system and method for performing payment transactions using indicia-based associations between two user interfaces, where a user selects goods or services, generates an indicia encoding transaction information, and authorizes the transaction using a mobile device, with the indicia-based payment server processing the transaction without exposing sensitive payment source information to merchants.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If users carry multiple financial accessories (credit cards, debit cards, checks) for different payment purposes, then payment versatility is improved, but portability and convenience deteriorate due to the burden of carrying numerous items
Solution Approach 1:
The patent merges multiple financial accessories and payment sources into a single mobile device. The mobile device stores and manages multiple payment sources (credit cards, debit cards, loyalty accounts) that would traditionally require separate physical cards or documents, eliminating the need to carry multiple financial accessories while maintaining full payment versatility
Solution Approach 2:
The mobile device serves as a universal payment platform that can handle various types of transactions (credit, debit, loyalty rewards, gift cards) through a single interface. The system provides multi-functional payment capabilities across different merchants and transaction types without requiring separate dedicated devices or cards for each payment source
2Productivity
If users transfer sensitive payment information to merchants for transaction processing, then payment processing efficiency is improved, but security and privacy deteriorate due to exposure of sensitive data
Solution Approach 1:
The patent introduces an indicia-based intermediary system that acts as a mediator between the user's mobile device and the merchant. Instead of directly sharing sensitive payment information with the merchant, the system generates an indicia (encoded representation) that contains transaction details but conceals sensitive payment source information. The merchant can process the transaction using the indicia without ever accessing the user's actual payment credentials, thus maintaining security while enabling efficient processing
Solution Approach 2:
The system creates a copy of the payment information in the form of an indicia that contains all necessary transaction data (amount, merchant, timestamp) but replaces sensitive identifiers with concealed representations. This copy enables the merchant to process the transaction accurately without exposing the user's actual payment source details, maintaining both efficiency and security
3Ease of operation
If users want to conduct payment transactions remotely without visiting merchant terminals, then convenience is improved, but the ability to verify transaction details and maintain security deteriorates
Solution Approach 1:
The system performs preliminary actions by generating and displaying the indicia on the merchant's terminal before the user authorizes the transaction. The user can review the encoded transaction details in the indicia on their mobile device, verify the amount and merchant information, and confirm the transaction details before providing authorization. This preliminary verification step ensures reliability while maintaining remote convenience
Solution Approach 2:
The system provides feedback to the user by displaying the indicia with encoded transaction details on both the merchant terminal and the user's mobile device. The user receives visual confirmation of the transaction amount, merchant information, and other details through the indicia representation, enabling informed authorization decisions while conducting the transaction remotely without visiting the physical merchant location
Data Source
AI summary
Systems and methods are disclosed for performing payment transactions using indicia-based associations between two or more user interfaces. One method includes: receiving transaction information related to a user's selection of goods or services from a merchant; generating an indicia encoding the transaction information related to the selected goods or services, the merchant, and the transaction amount; transmitting the indicia to be displayed, and to enable a user interface of a first user device to scan the indicia and extract the transaction information; receiving from the first user device, an authorization to process the payment transaction using a mobile payment source; and if sufficient resources exist in the mobile payment source: generating and transmitting a low value token to the merchant indicating the authorization of the payment transaction, wherein the low value token conceals the information related to the mobile payment source; and processing the transaction using the mobile payment source.