Offline Payment Code Mediator for Fraud Reduction
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Solution Overview
Problem
Existing methods for electronic payments, especially in offline transactions, often require the exchange of personal information, which can lead to privacy concerns and potential identity fraud.
Innovation Solution
A system that enables secure offline payments using a code, such as a QR code or NFC code, which is exchanged between a customer and a merchant, allowing the customer to authorize payments without sharing personal information directly, with a host managing the payment process and storing transaction details.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If personal information is exchanged during electronic payment, then payment processing can be completed, but information privacy is compromised and risk of identity fraud increases
Solution Approach 1:
The patent introduces a code (such as QR code or NFC code) as an intermediary element that replaces direct personal information exchange. The code acts as a mediator that carries payment instructions without exposing sensitive personal data, thus enabling payment processing while protecting privacy and reducing fraud risk
Solution Approach 2:
The patent uses a code that is a simplified copy or representation of the payment instruction rather than the actual personal information. This copy contains only the necessary payment data in an encoded format, allowing transaction completion without sharing sensitive personal details
2Ease of operation
If personal information is shared with merchants, then transactions can be facilitated, but privacy protection is weakened
Solution Approach 1:
The code serves as an intermediary that enables transaction facilitation without requiring direct sharing of personal information. It carries the necessary payment instructions while maintaining a barrier that protects the customer's private data from being exposed to the merchant
3Productivity
If traditional electronic payment methods are used, then payments can be processed, but personal information must be exchanged increasing vulnerability to fraud
Solution Approach 1:
The patent replaces direct personal information exchange with a coded representation that contains only the essential payment instructions. This copy mechanism enables payment completion while enhancing security by eliminating the need to share sensitive personal data
Solution Approach 2:
The code acts as a secure intermediary that carries payment instructions without exposing personal information, thereby enabling reliable payment processing with reduced vulnerability to fraud and identity theft
Data Source
AI summary
This disclosure is directed to techniques and systems to enable customers to make secure electronic payments to entities (e.g., merchants, vending machines, etc.). The entities may be at brick-and-mortar locations or other locations where the entities are “offline” and may not readily receive payments from customers that have payment accounts stored and managed by a host. In various embodiments, a customer may direct the host to transfer a payment to a merchant after the customer and merchant exchange a code that includes a payment instruction. The code may be used in place of usernames, passwords, or other personal information and may be difficult for others (e.g., bystanders, etc.) to intercept. After the exchange of the code, the customer may authorize the host to a transfer payment to the merchant based on the payment instruction.