Mobile Payment Authorization via Merchant Identification Codes
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Solution Overview
Problem
Conventional merchant systems require vendors to carry expensive computing devices for mobile transactions, making it cost-prohibitive for some vendors, especially those who need to operate in mobile or door-to-door settings.
Innovation Solution
A computer-implemented method where a payment processing system associates a merchant financial account with a merchant system identification code, allowing users to initiate transactions using a QR code or other machine-readable code, eliminating the need for vendors to carry transaction processing hardware by enabling authorization and payment processing through a user's computing device.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If vendors carry computing devices for mobile transactions, then transaction processing capability is improved, but vendor cost increases
Solution Approach 1:
The patent extracts the transaction processing capability from the vendor's computing device and relocates it to the user's computing device. The vendor system only needs to provide identification code (such as QR code) while all processing, authorization, and communication with payment networks occur on the user's device, eliminating the need for vendors to carry expensive mobile computing equipment.
Solution Approach 2:
The patent introduces an intermediary payment processing system that mediates between the user's computing device and the merchant system. This intermediary handles the transaction processing, authorization, and communication with payment networks, allowing vendors to operate without their own computing devices while maintaining full transaction processing capability through the user's device and the payment processing system.
2Ease of operation
If vendors use conventional mobile transaction systems, then purchase transaction capability is improved, but device portability deteriorates
Solution Approach 1:
The patent extracts the heavy computing hardware requirements from the vendor's mobile equipment and places them entirely on the user's computing device. The vendor only needs to display or provide a lightweight identification code (such as a printed QR code), eliminating the need to carry mobile phones, card readers, or other transaction processing hardware.
Solution Approach 2:
The patent uses a copy of the vendor's identification information in the form of machine-readable codes (QR codes, barcodes) that can be displayed on any surface or provided on business cards. These codes contain all necessary identification data, replacing the need for physical computing devices while maintaining full transaction capability.
3Adaptability or versatility
If vendors purchase mobile phones and transaction processing hardware, then transaction functionality is improved, but initial investment increases
Solution Approach 1:
The patent makes the user's computing device serve multiple functions: it acts as the merchant interface, payment terminal, authorization system, and communication device all in one. This universal use of the user's existing device eliminates the need for vendors to purchase specialized equipment, as the user's smartphone or computer performs all transaction processing functions.
Solution Approach 2:
The patent enables the user's computing device to self-perform all transaction processing, authorization, and communication functions without requiring external vendor equipment. The device uses its own processor, display, camera (for scanning), and network connectivity to complete the entire transaction process autonomously, eliminating dependency on vendor-purchased hardware.
Data Source
AI summary
A merchant creates a record with a payment processor. As part of the record, the payment processor records identification codes for one or more merchant operators of the merchant system. The merchant operator, such as a vendor, presents their identification code to a user that desires to purchase a product from the vendor. The user's computing device receives the vendor's identification code, as well as transaction details for the desired purchase transaction. The payment processor receives a request from the user's computing device to process the purchase transaction. Based on the identification code received and the transaction details, the payment processor identifies the merchant record and verifies a financial account for the user. The payment processor provides an authentication to the user computer device, which includes an authorization indicator, such as a vendor password. After the vendor views the authorization indicator, the vendor can provide the product to the user.