Mobile EFT Authorization via 2D Barcode for Secure Payments
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Solution Overview
Problem
Credit card transactions are prone to fraud and are expensive, necessitating a more secure and cost-effective alternative for completing payments.
Innovation Solution
A system and method utilizing Electronic Funds Transfer (EFT) processes, where a transaction terminal identifies items, determines payment amounts, obtains customer information, creates a check image, and sends a request to a mobile device for authorization via a 2D barcode, enabling secure and cost-effective payments through the Automated Clearing House (ACH) system.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If credit cards are used for transactions, then payment convenience is improved, but security risk increases and transaction costs increase
Solution Approach 1:
The patent introduces an intermediary authorization process where the customer receives a notification on their mobile device and must explicitly approve the transaction. This intermediary step acts as a mediator between the transaction request and fund transfer, preventing unauthorized use while maintaining convenience. The mobile device serves as an intermediary authentication channel that eliminates the security risks of direct credit card use.
Solution Approach 2:
The system performs preliminary actions by notifying the customer of the transaction details before the actual payment is processed. The customer must pre-approve the transaction through their mobile device, and only after this preliminary authorization does the fund transfer occur. This preliminary authentication step ensures security while maintaining ease of operation.
2Ease of operation
If credit cards are used for transactions, then payment convenience is improved, but transaction costs increase
Solution Approach 1:
The patent uses an intermediary EFT authorization process that replaces expensive credit card transactions. By introducing a mobile-based approval mechanism as an intermediary, the system eliminates the need for costly credit card processing while maintaining payment convenience. The intermediary authorization channel enables lower-cost EFT transactions.
Solution Approach 2:
The system replaces expensive, reusable credit cards with a disposable-like authorization mechanism. Each transaction requires a new authorization code sent to the mobile device, effectively making each authorization a single-use credential. This approach eliminates the ongoing costs associated with credit card processing while maintaining convenience.
3Reliability
If EFT with mobile authorization is used, then security is improved, but device complexity increases
Solution Approach 1:
The patent leverages the mobile device's existing multi-functionality to handle transaction authorization. The same device used for communication and information access is also used for financial authentication, eliminating the need for separate security hardware. This universal use of the mobile device achieves high security without adding significant system complexity.
Solution Approach 2:
The system enables self-service authorization where the customer uses their own mobile device to approve transactions. The mobile device's existing capabilities (display, messaging, authentication) are utilized without requiring additional specialized components. This self-service approach achieves enhanced security while minimizing the increase in device complexity.
Data Source
AI summary
A system and method of using Electronic Funds Transfer (EFT) to complete payment for goods and services. An example method of operating a transaction terminal includes identifying items selected by a customer for purchase, determining a required payment amount for the items, obtaining identification information from the customer, obtaining contact information and payment information, including bank account information and bank routing number information, from a customer profile associated with the identification information, creating a check image, sending a request for payment message providing access to the check image and the payment information to a mobile communication device of the customer using the contact information in the customer profile, and receiving a reply message from the mobile communication device authorizing payment for the items via electronic funds transfer and including a 2D barcode containing the check image and the payment information.