Mobile Device Card Reader Activation via Payment Request Instructions
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Solution Overview
Problem
Current electronic payment systems for mobile devices lack efficient methods for processing transactions between merchants and customers, particularly in scenarios where a card reader needs to be activated and payment confirmations need to be managed through a mobile computing device, often requiring complex setups and limited customer interaction options.
Innovation Solution
A method and apparatus for processing transactions using a mobile computing device that includes receiving a payment request, activating a card reader, obtaining customer authorization, and processing credit card payments, with features like push notifications to launch mobile payment apps, and interactive displays for customer acceptance, decline, or modification of transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of manufacture
If a card reader is connected to a POS terminal for payment processing, then payment transactions can be processed, but the system requires complex setup and infrastructure
Solution Approach 1:
The patent extracts the card reader functionality from the POS terminal and relocates it to the mobile computing device. The mobile device's audio jack or communication interface is used to connect to and control the card reader independently, eliminating the requirement for a POS terminal infrastructure.
Solution Approach 2:
The mobile computing device performs multiple functions: it acts as the user interface for customers, the control unit for the card reader, and the communication bridge to the payment processing system. This multi-functionality consolidates what previously required separate dedicated devices.
2Ease of operation
If payment requests are processed through a POS terminal, then transactions can be completed, but customer interaction options are limited
Solution Approach 1:
The mobile computing device serves as an intermediary between the customer and the payment processing system. It presents payment requests to the customer through its display, receives customer authorization input, and relays this information to the card reader and payment processor, thereby enhancing customer interaction.
Solution Approach 2:
The customer directly interacts with the mobile device to review and authorize payment details. The device's touchscreen interface allows customers to independently confirm or decline transactions without requiring merchant intervention at the terminal, enabling self-service payment authorization.
3Productivity
If a mobile device activates and controls a card reader, then operational efficiency increases, but the system requires new communication protocols
Solution Approach 1:
The patent replaces traditional electrical or physical connection protocols (such as USB or serial connections between POS terminal and card reader) with wireless communication protocols. The mobile device communicates with the card reader via Bluetooth, Wi-Fi, or other wireless standards, enabling activation and control without physical wiring.
4Loss of information
If payment confirmations are managed through the mobile device, then transaction visibility improves, but real-time communication requirements increase
Solution Approach 1:
The mobile computing device receives payment confirmation data from the card reader or payment processing system and immediately displays it to the customer through its screen. This feedback loop provides real-time transaction status visibility, confirming whether the payment was successful, declined, or requires additional action.
Data Source
AI summary
This disclosure relates to systems and methods for processing electronic payments for customer purchases. In some implementations, a mobile computing device receives a payment request identifying a sales transaction between a merchant and a customer. The payment request indicates a purchase amount owed by the customer to the merchant, and carries a set of instructions. The mobile computing device activates a card reader based at least in part on the set of instructions, receives customer authorization for electronic payment of the purchase amount, instructs the card reader to process a credit card for the purchase amount based on receiving the customer authorization, and receives confirmation of payment of the purchase amount from the card reader.