Offline Payment Proxy for Short-Range Transaction Authorization

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Solution Overview

Problem

Conventional card readers require both the merchant and customer devices to be online for payment processing, which is not feasible in areas with unreliable internet connectivity, leading to delayed authorization and increased risk for merchants.

Innovation Solution

Implementing a payment proxy system that allows devices to communicate offline using short-range wireless technologies like Bluetooth or BLE, enabling payment transactions through a primary device that comes online to process requests on behalf of offline devices.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If conventional card readers require online connection for payment processing, then payment authorization can be confirmed in real-time, but the system becomes unusable in areas with unreliable internet connectivity

Engineering Contradiction:

Improvepayment processing reliabilityVSAvoidoperational adaptability to offline conditions

Core Design Contradiction:

ReliabilityVSAdaptability or versatility

Solution Approach 1:

The system performs preliminary actions by storing payment card information and transaction data locally on the device before offline mode begins. When offline, the device can still process transactions by storing them locally and syncing when connectivity is restored, eliminating the need for real-time online authorization.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The patent introduces a payment processing system that acts as an intermediary between the card reader and traditional authorization servers. This intermediary handles offline transactions by storing them locally and forwarding them to authorization servers when connectivity is available, bridging the gap between offline operation and online verification.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Productivity

If merchants accept payments in offline mode without immediate authorization, then service continuity is maintained, but the risk of credit card decline increases

Engineering Contradiction:

Improvetransaction processing continuityVSAvoidpayment authorization reliability

Core Design Contradiction:

ProductivityVSReliability

Solution Approach 1:

The system implements feedback mechanisms where transaction data is continuously synced with authorization servers when connectivity is available. This allows the system to learn from authorization outcomes and improve its offline decision-making, reducing the risk of accepting payments that will later be declined.

Inventive Principle:

Principle #23Feedback

Solution Approach 2:

The system performs preliminary verification of payment cards and transaction validity before accepting offline payments. By pre-validating card information and storing it securely, the system reduces the likelihood of accepting payments that would later be declined, while still maintaining offline operational capability.

Inventive Principle:

Principle #10Preliminary action

3Reliability

If real-time online authorization is required, then payment security is enhanced, but transaction delays occur in areas with poor internet connectivity

Engineering Contradiction:

Improvepayment securityVSAvoidauthorization time

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The system performs preliminary security validations locally before accepting offline transactions, such as verifying card format, checking against stolen card databases, and validating transaction amounts. This preliminary security check maintains security standards while enabling immediate offline processing without waiting for online authorization.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The payment processing system acts as an intermediary that handles security validations locally when offline and syncs with authorization servers when online. This intermediary approach maintains security requirements while eliminating authorization delays in areas with poor connectivity.

Inventive Principle:

Principle #24Intermediary (Mediator)

Data Source

PatentUS20260094137A1Processing electronic payment transactions in offline-mode

Publication Date: 2026.04.02 BLOCK INC

AI summary

In some examples, methods and systems may process one or more payment transactions between a payee and a payor by establishing a short-range communication channel between a first computing device associated with the payee and a second computing device associated with the payor. The method includes receiving, by the first computing device and from the second computing and while the first computing device and the second computing device are offline with respect to a transaction processing system, first payment information including an identifier corresponding to the second user; sending, by the first computing device to the second computing device while the first computing device and the second computing device are offline with respect to the transaction processing system, second payment information that includes an identifier corresponding to the first user; establishing, by the first computing device, a long-range communication channel with the transaction processing system; and transmitting a transaction request by the first computing device to the transaction processing system based on the identifier corresponding to the second user.