Local Marketing Computer System for POS Fraud Reduction
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Solution Overview
Problem
Convenience stores face substantial coupon redemption fraud and ineffective accounting for redeemed purchase incentives, necessitating a system that provides targeted product information and incentives while minimizing fraud and requiring minimal training for store clerks, without modifying existing Point Of Sale (POS) systems.
Innovation Solution
A system that time-correlates input data with predetermined time periods to trigger targeted information outputs, uses intelligent Y cables to filter data, and builds a time correlation history database to customize communications, ensuring accurate incentive redemption and fraud deterrence, all while being economically feasible and requiring minimal POS system modifications.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional POS systems are used for coupon redemption, then existing infrastructure is utilized, but substantial coupon redemption fraud occurs and accounting is ineffective
Solution Approach 1:
The patent introduces a Local Marketing Computer System (LM CS) as an intermediary between the scanner/POS system and the central processing system. This LM CS acts as a mediator that receives scanned data, performs local validation against stored coupon files, determines eligibility, and triggers targeted information outputs. By placing this intermediary system at the point-of-sale, the patent achieves reliable coupon redemption control without requiring extensive modifications to the existing POS infrastructure, thus resolving the contradiction between improving reliability and limiting device complexity.
Solution Approach 2:
The patent segments the coupon redemption process into distinct functional modules: data collection (scanner), local processing (LM CS with coupon files), validation logic, and information output. This segmentation allows each component to perform its specific function independently, improving the reliability of the overall system while keeping individual components simple and compatible with existing POS systems.
2Reliability
If comprehensive coupon validation is implemented, then fraud is reduced, but system complexity and cost increase
Solution Approach 1:
The LM CS serves as a dedicated intermediary that handles all coupon validation logic locally. It maintains its own copy of coupon files and validation rules, performing comprehensive fraud prevention checks without requiring the main POS system to be complex or modified extensively. This mediator approach concentrates the validation complexity in a separate, manageable system.
Solution Approach 2:
The system performs preliminary validation actions by pre-storing coupon files and validation rules in the LM CS before transactions occur. When a coupon is scanned, the system immediately compares it against the pre-loaded validation criteria, enabling comprehensive fraud prevention through advance preparation rather than complex real-time processing.
3Measurement precision
If time-correlation tracking is implemented, then targeted marketing accuracy improves, but data processing complexity increases
Solution Approach 1:
The system performs preliminary data collection by capturing and storing time-stamped information about scanned items and customer interactions in the LM CS before analysis is needed. This pre-collected data is then used to determine time-correlations with past purchases, enabling accurate customer targeting without requiring complex real-time analysis during the transaction process.
Solution Approach 2:
The LM CS autonomously performs data processing and time-correlation analysis using its own stored data and processing capabilities. It self-determines which customers are eligible for targeted offers based on their purchase history and the current transaction timing, reducing the need for complex external processing systems while maintaining high targeting accuracy.
4Adaptability or versatility
If extensive POS modifications are made, then system functionality is enhanced, but implementation cost and complexity increase
Solution Approach 1:
The patent employs a Local Marketing Computer System as an intermediary layer that enhances POS functionality without modifying the core POS infrastructure. The LM CS interfaces with the existing scanner and POS system, adding sophisticated marketing and validation capabilities while maintaining compatibility with standard POS hardware and software, thus improving adaptability without proportionally increasing implementation complexity.
Solution Approach 2:
The LM CS is designed as a universal system that can be integrated with various existing POS configurations and scanner models. It performs multiple functions including coupon validation, fraud detection, time-correlation analysis, and targeted marketing, making it a multi-functional addition that enhances system capabilities without requiring function-specific modifications to the POS hardware.
Data Source
AI summary
Disclosed are systems and methods that time correlate input at a point of entry of consumer data of least two identifications for products, prescriptions, vouchers, or codes, uses positive correlation determinations for triggering output of predetermined information. The time correlation of identifications may be used to build a time correlation database, and thereafter use that database for targeted communications. Related inventions include an intelligent Y cable or the like to filter data transmitted from a scanner at a point of entry of consumer data, and a novel POS CS configured to receive bar codes that would otherwise cause the POS CS to enter an error condition.