Integrated Card Reader and NFC for Remote Card-Present Payments
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Solution Overview
Problem
Existing payment systems for mobile devices face challenges in facilitating card-present transactions, particularly for merchants on the go, due to increased fraud risk and higher processing fees associated with card-not-present transactions, and the complexity of peripheral card readers.
Innovation Solution
A general-purpose mobile device equipped with a card-present card reader and near-field communication capabilities, enabled by a cloud-based interface, allows for remotely activated card-present transactions through API calls and push notifications, integrating with point-of-sale terminals to process payments efficiently.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If peripheral card readers are attached to portable computers to facilitate card-present transactions, then card-present payment capability is improved, but device complexity and maintenance burden increase
Solution Approach 1:
The patent combines the card reader functionality directly into the mobile device itself, merging previously separate components (mobile device and peripheral card reader) into a single integrated unit. This eliminates the need for external peripherals while maintaining card-present payment capability through the device's built-in card reader and NFC interface.
Solution Approach 2:
The mobile device is designed to perform multiple functions: it serves as both the point-of-sale terminal and the card reader, while also providing customer interface capabilities through its display and communication interfaces. This multi-functionality replaces the need for separate dedicated card reading devices.
2Reliability
If peripheral card readers are attached to portable computers, then card-present transaction processing is enabled, but ease of operation deteriorates due to connectivity and charging issues
Solution Approach 1:
By integrating the card reader functionality into the mobile device itself, the patent eliminates connectivity and charging issues associated with peripheral devices. The card reading capability becomes an inherent function of the device, requiring no external power or data connections.
3Adaptability or versatility
If manually entered credit or debit card processing is used, then payment transactions can be conducted remotely, but fraud risk and processing fees increase
Solution Approach 1:
The patent replaces manual card data entry with automated optical scanning and NFC reading technologies. The card reader captures card information directly through the device's camera or NFC interface, eliminating the need for manual typing and enabling secure card-present transactions to be conducted remotely without physical card presence.
Applied Scientific Principles
This section explains which scientific principles are used to turn an abstract innovation direction into a practical engineering solution.
Function Achieved in This Case
This solution reduces fraud risk and processing fees while eliminating the need for additional hardware, providing a streamlined and reliable payment experience for both merchants and customers.
Implementation Method 1
the card-present card reader includes a Europay, Mastercard, Visa (EMV) compliant card reader configured to obtain the payment information from the payment card using a near-field communication (NFC) protocol
Data Source
AI summary
A general-purpose mobile device includes a computer-readable storage medium, a wireless transceiver, a memory circuit, a card-present card reader configured to initiate a card-present payment transaction from a payment card using a card-present protocol, and a general-purpose processing circuit communicatively coupled to the storage medium, the wireless transceiver, the memory circuit, and the card-present card reader. The storage medium is dynamically configurable through the wireless transceiver to enable the processing circuit and the memory circuit to perform a variety of general-purpose computing tasks. The processing circuit is configured to receive a message from a point-of-sale terminal to remotely activate the card-present payment transaction, obtain payment information for the remotely activated card-present payment transaction from the payment card using the card reader, send the obtained payment information to a payment processor to process the card-present payment transaction, and receive payment confirmation for the processed card-present payment transaction from the payment processor.