Mobile Payment Authorization via Card-Device NFC Interaction
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Solution Overview
Problem
Existing payment systems are vulnerable to card information theft and require a merchant's POS terminal for transactions, which can be inconvenient and insecure, especially when the terminal is unavailable or stolen mobile devices can be used for unauthorized payments.
Innovation Solution
A system and method allowing customer-initiated payment transactions using a mobile device and card, where the mobile device processes transactions via NFC or Bluetooth, creating a payment authorization request and deleting card information after approval, eliminating the need for merchant POS terminals and enhancing security by requiring both the mobile device and card for transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If card information is transmitted to merchant's POS terminal for payment, then payment transaction can be processed, but card information security is compromised and risk of theft increases
Solution Approach 1:
The patent extracts the card information transmission step from the traditional payment flow. Instead of transmitting card information to the merchant's POS terminal, the system uses the mobile device to directly communicate with the card via NFC or Bluetooth, processes the payment authorization request, and completes the transaction without the merchant ever receiving the card information. This extraction eliminates the security vulnerability while maintaining payment functionality.
Solution Approach 2:
The mobile device serves as an intermediary between the card and the payment network. It reads card information locally, creates the payment authorization request, and transmits it to the acquirer without involving the merchant's POS terminal in the information transmission chain. This intermediary role protects card information from exposure to merchants while enabling payment processing.
2Reliability
If merchant POS terminal is required for card payment, then transaction approval can be obtained, but system availability decreases when terminal is unavailable or non-existent
Solution Approach 1:
The patent inverts the traditional payment initiation flow. Instead of the merchant's POS terminal initiating the transaction by reading the card, the customer's mobile device initiates the transaction by reading the card information and creating the payment request. This inversion allows payments to be made anywhere with card reader capability, not just at merchant locations with POS terminals, significantly improving system availability and adaptability.
Solution Approach 2:
The customer's mobile device performs the functions traditionally requiring a merchant's POS terminal. It reads the card, creates the payment authorization request, and transmits it to the acquirer. This self-service capability eliminates dependency on merchant infrastructure, allowing customers to make payments at any location with card reader support.
3Ease of operation
If mobile device stores card information for payment processing, then payment convenience is improved, but security risk increases if device is stolen
Solution Approach 1:
The system performs preliminary authentication by requiring the customer to present their physical card to the mobile device before payment processing. The mobile device reads card information via NFC or Bluetooth only when the card is physically present and authenticated. This preliminary action ensures that even if the mobile device is stolen, unauthorized payments cannot be made without the corresponding card, significantly reducing security risks while maintaining convenience.
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 secure, customer-controlled transactions without transmitting card information to merchants, simplifies payment processing, reduces costs, and maintains compatibility with existing payment systems, while minimizing the risk of card information theft and terminal dependency.
Implementation Method 1
the mobile device communicates with the card via near-field communication, Bluetooth (Trademark), or the likes
Data Source
AI summary
A system for a customer initiated payment transaction includes a mobile device of a customer, a card of the customer having card information, and a merchant having merchant information and payment information. The mobile device is operative to process a card payment transaction by the steps of, the mobile device: receiving the merchant information and the payment information; being activated, for processing the card payment transaction, by the card; creating a payment authorization, request using the card information, the merchant information, and the payment information, and sending the payment authorization request to an acquirer; and receiving a result of the payment authorization request from the acquirer.