Network-Based Pay-Per-Use System to Reduce Cash Fraud and Servicing
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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, which require frequent servicing and are prone to fraud, and existing alternatives like smart cards have 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 users to pay via online accounts, deducting costs electronically, and enabling device operation only when sufficient funds are available, thus eliminating the need for physical currency and reducing fraud.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If cash and coins are used for payment, then the payment method is simple and widely accepted, but frequent servicing is required and fraud is prone
Solution Approach 1:
The patent replaces the mechanical cash/coin payment system with an electronic network-based payment system. Instead of using physical currency that requires handling and verification, the system uses electronic fund transfers through RF readers and internet-connected servers to automatically deduct payment, eliminating fraud associated with physical currency while reducing the need for manual servicing.
Solution Approach 2:
The patent introduces an intermediary network-based payment system between the user and the pay-per-use device. Rather than direct cash transactions, the system uses RF readers, microprocessors, and internet servers as intermediaries to facilitate automatic electronic payment verification and fund deduction, improving reliability while managing complexity through centralized processing.
2Reliability
If bill readers are highly sensitive to prevent fraud, then fraud is reduced, but worn bills are not acceptable and servicing frequency increases
Solution Approach 1:
The patent replaces the mechanical bill reading system with an electronic network-based payment system. Instead of using bill readers that require high sensitivity and frequent servicing, the system uses RF readers and internet-connected servers to process payments electronically, eliminating the need for physical bill verification and associated servicing requirements.
3Productivity
If smart cards are used as payment alternative, then cash handling is reduced, but convenience and accessibility are limited
Solution Approach 1:
The patent creates a universal payment system that combines the benefits of smart cards with network connectivity. The system allows users to pay through multiple methods including RF card readers, mobile devices, and online accounts, making it more accessible and convenient than traditional smart cards while maintaining reduced cash handling through electronic payment processing.
4Reliability
If network-based payment system is implemented, then fraud is reduced and servicing is minimized, but device complexity increases
Solution Approach 1:
The patent segments the payment system into distinct functional components: RF readers at the device level for card reading, microprocessors for local processing, communications circuits for data transmission, and internet servers for account management. This segmentation allows each component to be optimized independently while working together to provide fraud-resistant payment processing with minimized servicing requirements.
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.