Payment Collection Device Isolating Transaction Data from POS Systems
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Solution Overview
Problem
Current payment processing systems require merchants to handle sensitive payment information, increasing security risks and limiting the ability to accept new payment methods without modifying Point of Sale (POS) systems.
Innovation Solution
A processor-implemented payment collection method and apparatus that receives a payment token from a POS system, retrieves transaction details, prompts customers for payment information, collects and authorizes payments, and informs the POS system, allowing for the use of new payment methods and promotional materials without modifying the POS system.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If merchants handle sensitive payment information directly through POS systems, then payment processing can be completed, but security risks increase and the system becomes vulnerable to breaches
Solution Approach 1:
The patent extracts sensitive payment information handling from the merchant's POS system and places it in a separate payment collection device. The POS system only receives a payment token instead of actual payment details, removing the security vulnerability while maintaining payment processing functionality.
Solution Approach 2:
The patent introduces a payment collection device as an intermediary between the customer and the merchant's POS system. This intermediary collects and transmits payment information securely, acting as a buffer that protects both the merchant system and customer data from direct exposure.
2Adaptability or versatility
If the POS system is modified to accept new payment methods, then payment versatility improves, but system complexity and modification costs increase
Solution Approach 1:
The payment collection device is designed as a universal platform that can handle multiple payment methods (credit cards, debit cards, mobile payments, etc.) through a single interface. This allows merchants to accept various payment types without modifying their existing POS systems.
Solution Approach 2:
The patent segments the payment processing function into a separate, standalone device that interfaces with the existing POS system. This segmentation allows the payment collection capabilities to be updated or changed independently without affecting the core POS system.
3Productivity
If payment information is collected and stored at the merchant location, then transaction processing is straightforward, but security risks and compliance burdens increase
Solution Approach 1:
The patent extracts the collection and transmission of payment information from the merchant premises, using a portable payment collection device that can process payments on-site without storing sensitive data at the merchant location. Payment tokens are transmitted directly to the payment processor.
4Ease of operation
If merchants manually handle payment collection, then customer interaction is personalized, but labor costs and processing time increase
Solution Approach 1:
The payment collection device enables customers to self-initiate and complete payment transactions by presenting their payment methods to the device. This reduces the need for manual handling by cashiers while maintaining customer interaction and can be processed quickly.
Data Source
AI summary
A customer engagement device (CED) may receive a payment token associated with a transaction from a point of sale (POS) system. The CED may retrieve transaction details associated with the transaction from a gateway. The CED may prompt a customer to provide payment information for the transaction and may collect payment information from the customer. The CED may provide the payment information and may obtain a transaction authorization from the gateway. The CED may inform the POS system regarding the transaction authorization.