Payment Card Display Authentication via Wireless Beacons

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Solution Overview

Problem

Consumers often encounter frustration when attempting to make purchases because they are unaware if their payment card is accepted by a merchant, leading to missed sales and additional labor costs for merchants due to unclear or absent signage indicating accepted payment methods.

Innovation Solution

Implementing wireless beacons at merchant locations that use short-range communication to detect and authenticate payment cards, comparing card data to merchant-accepted payment sources, and providing alerts to both the consumer and merchant about card acceptance through display technologies like LEDs or E-INK displays.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If wireless beacons and display technologies are implemented to provide payment card acceptance information, then consumer convenience and transaction efficiency are improved, but device complexity and implementation costs increase

Engineering Contradiction:

Improveconsumer convenienceVSAvoidsystem complexity

Core Design Contradiction:

Ease of operationVSDevice complexity

Solution Approach 1:

The patent introduces wireless beacons as intermediary devices that mediate between the payment card system and the consumer. These beacons broadcast payment acceptance information and enable communication between the payment card and the point-of-sale system, thereby improving consumer convenience without requiring direct complex integration between all system components.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent replaces traditional mechanical information display methods (physical signage) with electronic wireless communication and display technologies. Payment card acceptance information is transmitted wirelessly via beacons and displayed through LED or E-INK displays, eliminating the need for manual signage updates and reducing physical infrastructure complexity.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

2Reliability

If security authentication is performed through displayed messages on payment cards, then transaction security is improved, but processing time and system complexity increase

Engineering Contradiction:

Improvetransaction securityVSAvoidprocessing time

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The patent performs security authentication in advance by displaying security messages on the payment card before the actual transaction occurs. The beacon transmits security information to the card, and the card displays authentication codes or messages that verify payment card validity ahead of time, ensuring security without delaying the transaction process.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The payment card itself performs the security display function, showing authentication messages and codes directly on its integrated display. This self-service approach eliminates the need for additional external authentication devices or manual verification processes, maintaining high security while minimizing processing time.

Inventive Principle:

Principle #25Self-service

Applied Scientific Principles

This section explains which scientific principles are used to turn an abstract innovation direction into a practical engineering solution.

Function Achieved in This Case

This solution enables consumers to determine if their payment card is accepted before entering a store, reducing frustration and missed sales, while also informing merchants of accepted payment methods, thereby optimizing transactions and reducing labor costs.

Implementation Method 1

Various merchant locations may provide short range wireless communications with users' payment cards, such as through beacons using Bluetooth Low Energy (BLE), LTE Direct, WiFi, or other communications that emit a radio frequency (RF) signal capable of communicating with the user's payment cards.

Methodology Applied

Scientific EffectElectromagnetic radiation: Electromagnetic Induction

Implementation Method 2

providing alerts to both the consumer and merchant about card acceptance through display technologies like LEDs or E-INK displays

Methodology Applied

Scientific EffectLight emitting diode: Light Emitting Diode

Implementation Method 3

display technologies like LEDs or E-INK displays

Methodology Applied

Scientific EffectElectrophoretic display:

Data Source

PatentUS9959540B2Security authentication using payment card display devices at accepted merchant locations

Publication Date: 2018.05.01 PAYPAL INC

AI summary

There are provided systems and methods for security authentication using payment card display devices at accepted merchant location. A user may be walking near or visiting a merchant location with a wireless smart payment card which may connect to a wireless beacon at the merchant location. The user's payment card may communicate issuer and type of payment card data when connected with the wireless beacon. The beacon may communicate the user's payment card data to a merchant device or server. The merchant device or server may compare user's payment card data to merchant's accepted payment sources. The merchant device or server may alert user's payment card via communication through the wireless beacon, the payment card is accepted at the merchant location. Additionally, security identification and/or advertisements may be communicated to the user's accepted payment card.