Network-Based Pay-Per-Use System to Reduce Cash Handling and Fraud
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Solution Overview
Problem
Pay-per-use devices, such as those in Laundromats and parking systems, rely heavily on cash and coins, leading to servicing challenges and fraud issues, with existing alternatives like smart cards having limitations in convenience and accessibility.
Innovation Solution
A network-based pay-per-use system that uses RF readers, microprocessors, and internet-connected servers to manage user accounts, allowing for online payments, account management, and device operation, enabling users to start devices by deducting funds from their accounts electronically.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Device complexity
If cash and coins are used for payment, then the device can operate with simple payment mechanism, but it requires additional servicing of bill and coin readers and scheduled collection of generated revenues
Solution Approach 1:
The patent replaces the mechanical cash handling system with an electronic payment system using magnetic stripe cards and electronic fund transfers. The card reader with magnetic stripe technology substitutes physical bill and coin readers, eliminating the need for scheduled revenue collection and reducing servicing requirements while maintaining payment functionality.
Solution Approach 2:
The patent introduces magnetic stripe cards as an intermediary between the user and the payment system. The cards store account information and enable electronic transactions without requiring direct cash handling, thus resolving the contradiction between simple payment mechanism and efficient revenue collection.
2Reliability
If bill readers are made highly sensitive to counteract fraudulent bills, then fraud is reduced, but worn bills may not be acceptable
Solution Approach 1:
The patent replaces the bill reader system with magnetic stripe card readers that read encoded information from cards. This substitution eliminates the problem of worn bills being rejected while maintaining strong fraud prevention through magnetic stripe encoding and account verification systems.
Solution Approach 2:
The patent uses magnetic stripe cards that contain copied account information in magnetic form. The card reader reads this magnetic copy rather than physically examining cash, thus avoiding the issue of worn bills while maintaining security through encoded account data verification.
3Productivity
If smart cards are used as alternative payment method, then cash handling is reduced, but convenience and accessibility are limited
Solution Approach 1:
The patent uses magnetic stripe card technology which is more universally compatible and easier to use than traditional smart cards. The magnetic stripe readers are simpler and more widely available, improving user convenience while still eliminating cash handling requirements through electronic account deductions.
Data Source
AI summary
Aspects of the invention may involve systems, methods, and computer readable medium. In an embodiment of the invention, a computer-implemented method for paying for usage of a pay per use device may be provided. The method may transmit device identification information from the device to a server. Device setup information and vend price may be received and the vend price may be displayed. User identification may be received and transmitted to the server. An account balance value may be received and displayed on the display. A start request may be received and transmitted to the server. The device may start and an updated account balance may be displayed.