Secure Mobile Payment via Third-Party Demand Draft
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Solution Overview
Problem
Existing payment methods require immediate verification of available funds for consumers using demand drafts or debit cards, incurring banking fees and limiting convenience for both consumers and vendors.
Innovation Solution
A method utilizing QR codes to initiate a remotely created demand draft from a third party, where the QR code encodes geolocation and time-synchronized one-time use passwords, allowing payment without immediate fund verification, and employing a trusted third party to guarantee the payment, similar to a cashier's check.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If immediate fund verification is performed for demand draft payments, then payment security is improved, but banking fees increase and convenience deteriorates
Solution Approach 1:
The patent introduces a third-party payment processing system that acts as an intermediary between consumers and vendors. This intermediary verifies funds in advance and issues demand drafts or electronic checks, eliminating the need for vendors to perform immediate fund verification while maintaining payment security. The third party absorbs the verification burden, allowing consumers to pay conveniently without direct internet access at purchase time.
Solution Approach 2:
The system performs fund verification and demand draft creation in advance of the actual purchase transaction. Consumers can pre-register their payment information and authorize future payments, so that when a purchase occurs, the payment is already validated and ready for immediate processing without requiring real-time fund checks or internet connectivity.
2Reliability
If consumers must have internet access at the time of purchase for payment verification, then payment security is improved, but convenience and accessibility deteriorate
Solution Approach 1:
The system performs fund verification and demand draft creation in advance of the actual purchase transaction. Consumers can pre-register their payment information and authorize future payments, so that when a purchase occurs, the payment is already validated and ready for immediate processing without requiring real-time fund checks or internet connectivity.
Solution Approach 2:
The patent creates electronic copies of checks and demand drafts that can be transmitted and processed without requiring the original physical document or real-time system access. These digital copies maintain the full security and validity of the original payment instruments while enabling offline processing and broader accessibility.
3Reliability
If vendors perform immediate fund verification, then payment reliability is improved, but processing time and complexity increase
Solution Approach 1:
The patent extracts the fund verification function from the vendor's payment processing system and relocates it to a specialized third-party payment processor. This separation allows vendors to accept payments without implementing complex verification systems, while the third party handles all fund validation and demand draft issuance, reducing vendor system complexity while maintaining payment reliability.
Data Source
AI summary
A method and system for consumers to pay vendors or service providers is presented. A demand draft is created and sent to a vendor or service provider from a trusted third party on behalf of a consumer. The verification of consumer funds available to cover the demand draft is not necessary because the demand draft is from a trusted third party to a vendor or service provider. The method employs real-time geolocation information available within mobile devices and time-synchronized one time passwords to increase the security of the process.