Mobile Terminal Mediator for Point of Sale Transaction Identification
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Solution Overview
Problem
Current distributed electronic transaction processing systems face challenges in efficiently, conveniently, and cost-effectively connecting customer mobile terminals with point of sale terminals, and securely processing transactions, due to the lack of a common technical approach among stakeholders, resulting in disparate and often uneconomical solutions.
Innovation Solution
A method and system that associate point of sale terminals with a machine-readable unique identifier, allowing customer mobile terminals to read and encode transaction requests, which are then processed through a host terminal, enabling secure and efficient electronic transactions without the need for new hardware or software on existing terminals, using NFC tags, barcodes, or RFID for identification.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If point of sale terminals are reconfigured with additional wireless local networking devices or replaced with newer models having wireless functionality, then mobile terminal connectivity is enabled, but hardware cost and system complexity increase
Solution Approach 1:
The patent introduces a mobile terminal as an intermediary device that bridges the customer and point of sale terminal. The mobile terminal contains a point of sale terminal identifier and enables communication between the customer and the existing point of sale terminal through network connectivity, avoiding the need to modify the point of sale terminal hardware.
Solution Approach 2:
The patent uses a copy of the point of sale terminal identifier stored in the mobile terminal to enable transaction processing. Instead of requiring the actual point of sale terminal to have wireless capabilities, the mobile terminal holds a digital copy of the terminal identifier that allows it to interact with the terminal over the network.
2Reliability
If new payment mechanisms are rolled out with integrated acceptance hardware, then transaction security is improved, but deployment cost and maintenance expense increase
Solution Approach 1:
The patent makes the mobile terminal a universal device that can function as both a communication tool and a payment instrument. The mobile terminal can store multiple point of sale terminal identifiers and facilitate transactions with different terminals using the same device, eliminating the need for separate dedicated payment hardware.
Solution Approach 2:
The system enables self-service transactions where the customer uses their own mobile terminal to initiate and complete the transaction. The mobile terminal automatically communicates with the point of sale terminal and host terminal, allowing the customer to control the transaction process without requiring merchant-assisted hardware or complex authentication procedures.
3Ease of manufacture
If existing point of sale terminals and mobile terminals are used without new hardware, then cost is reduced, but transaction processing capability is limited
Solution Approach 1:
The patent adds a network communication dimension to the traditional point of sale transaction. Instead of relying solely on local direct communication between the point of sale terminal and card reader, the system introduces network-based communication where the mobile terminal and host terminal exchange transaction data over a network, enabling new transaction capabilities with existing hardware.
Data Source
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AI summary
A method and a system for processing a transaction in a distributed electronic payment system are disclosed. The system comprises at least one point of sale terminal and at least one customer mobile terminal, each being respectively configured to communicate with at least one host terminal over a network. A machine-readable unique identifier of the at least one point of sale terminal is read by the at least one customer mobile terminal. At each of the at least one point of sale terminal and the at least one customer mobile terminal, a respective transaction request message is encoded and communicated to the at least one host terminal, which includes the unique identifier. At the least one host terminal, the respective transaction request messages are matched with the unique identifier and a payment request message is encoded and communicated to the at least one customer mobile terminal.