Mobile App GPS Merchant Identification
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Solution Overview
Problem
In large payment transaction processing networks, accurately identifying a merchant based on merchant information such as business name and location is challenging due to variations in naming conventions and outdated data, and there is a need for precise location information of transaction terminals for providing location-related services.
Innovation Solution
A mobile application uses a global positioning system (GPS) and communication devices to authenticate merchants, determine their location, and associate a unique identifier with the location, allowing for accurate identification and tracking of transactions, while ensuring user privacy through enrollment and consent mechanisms.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If merchant identification relies on business name and location data from databases, then the system can process transactions, but identification accuracy deteriorates due to naming variations and outdated information
Solution Approach 1:
The patent replaces the mechanical database lookup system with a GPS-based spatial identification system. Instead of relying on text-based merchant names and static location data that suffer from naming variations and outdated information, the system uses GPS coordinates to automatically and precisely identify transaction terminals and their associated merchants, eliminating data accuracy issues related to human-editable database entries
Solution Approach 2:
The patent changes the identification parameter from text-based (merchant name, address) to coordinate-based (GPS location). This parameter transformation allows for precise, unambiguous identification of merchants and terminals without the problems of naming conventions, typos, or outdated address information that plague database-based systems
2Measurement precision
If GPS tracking is implemented for all transaction terminals, then location precision improves, but device complexity and energy consumption increase
Solution Approach 1:
The patent leverages the existing mobile device as a universal platform that already contains GPS capabilities, communication functions, and processing power. By making the mobile device serve multiple functions (payment processing, GPS tracking, communication, authentication), the system achieves precise location tracking without adding separate dedicated hardware components, thereby minimizing additional device complexity
Solution Approach 2:
The mobile device performs self-service by using its own built-in GPS receiver to determine its position and communicate this location information to the transaction handler. The device autonomously provides location data without requiring external tracking infrastructure, reducing overall system complexity while maintaining high location precision
3Ease of operation
If mobile devices store account numbers for transaction initiation, then ease of operation improves, but security risks increase from potential unauthorized access
Solution Approach 1:
The system performs preliminary authentication of the mobile device and user identity before allowing account number display or transaction initiation. The transaction terminal first verifies the mobile device's legitimacy and the user's authorization, then proceeds to display the account number or initiate the transaction, ensuring that convenience does not compromise security
Solution Approach 2:
The system implements feedback mechanisms where the transaction terminal communicates with the mobile device and authentication systems to verify transactions in real-time. The terminal receives confirmation that the displayed account number and initiated transaction are authorized, providing continuous feedback to prevent unauthorized transactions while maintaining ease of operation
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 enables efficient and accurate merchant identification and transaction tracking, improving privacy protections and enabling personalized services by correlating transactions with online activities and events, thus enhancing advertising and marketing strategies.
Implementation Method 1
a mobile application running on a mobile device can be used to establish the connection between a terminal identifier of a transaction terminal used in processing payment transactions of a merchant, the location of the transaction terminal configured in a payment processing network, and an identity of the merchant used outside the payment processing network
Data Source
AI summary
A system and method including a mobile application installed on a mobile device and configured to authenticate a merchant represented by a unique identifier, determine a position of the mobile device while the mobile device is co-located with a transaction terminal of the merchant, communicate the position to a portal to associate the position with the unique identifier and to receive an account number, and provide the account number to generate an authorization request on the transaction terminal. The authorization request includes a terminal identifier of the transaction terminal. When the authorization request generated using the account number is detected, the association between the account number provided to the mobile application and the location received from the mobile application is replaced with the association between the terminal identifier extracted from the authorization request and the location. Thus, subsequent authorization requests generated by the transaction terminal can be determined to contain the terminal identifier and identified to be associated with the location and the merchant identifier.