Payment Integrated Loyalty System Using Fingerprint
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Solution Overview
Problem
Conventional loyalty systems require a separate loyalty card number or a dedicated mobile application, and are often tied to a single merchant, lacking integration with payment instruments.
Innovation Solution
A payment integrated loyalty system that uses a point of sale terminal with a card reader and communication subsystem to wirelessly communicate with payment instruments, generating a fingerprint for loyalty balance management without exposing the payment instrument identifier, allowing for seamless integration of loyalty programs with payment transactions across multiple merchants.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If a separate loyalty card number or dedicated mobile application is used, then loyalty tracking can be implemented, but device complexity and ease of operation deteriorate due to requiring multiple separate systems
Solution Approach 1:
The patent combines the loyalty card identifier with the payment instrument identifier into a single integrated system. The loyalty program identifier is embedded within or associated with the payment card, allowing the same card to serve both payment and loyalty tracking functions simultaneously, thereby eliminating the need for separate loyalty cards or dedicated applications.
Solution Approach 2:
The payment instrument is designed to perform multiple functions: it serves as both a payment method and a loyalty program identifier. This multi-functional approach allows a single card to handle transaction processing and loyalty tracking, reducing system complexity while maintaining versatility across different merchants and payment types.
2Measurement precision
If payment instrument identifier is transmitted for loyalty balance lookup, then loyalty tracking is accurate, but security deteriorates due to exposure of sensitive payment information
Solution Approach 1:
The patent introduces a fingerprint as an intermediary element that bridges the loyalty system and payment system without exposing sensitive information. The fingerprint is generated from the payment instrument identifier through a one-way cryptographic function, allowing the loyalty server to identify and track the customer's loyalty balance without ever receiving or storing the actual payment card number or sensitive identifier.
Solution Approach 2:
The patent transforms the payment instrument identifier into a different parameter form (fingerprint) through cryptographic hashing. This parameter transformation maintains the uniqueness and identifiability needed for accurate loyalty tracking while fundamentally changing the data format to eliminate security risks associated with transmitting or storing original payment identifiers.
3Ease of manufacture
If loyalty systems are tied to single merchant, then implementation is simple, but adaptability deteriorates due to inability to work across multiple merchants
Solution Approach 1:
The integrated payment and loyalty system enables universal application across multiple merchants. Since the payment instrument serves as the loyalty identifier, customers can use the same card for both payment and loyalty accumulation at any participating merchant, eliminating the need for merchant-specific loyalty cards while maintaining simple implementation through existing payment infrastructure.
Data Source
AI summary
A payment integrated loyalty system including a point of sale terminal comprising a card reader, a communication subsystem configured to wirelessly communicate with a payment instrument, and configured to communicate over a network with at least a first and second server. The payment integrated loyalty system includes a processor in communication with the communication subsystem and card reader, configured to receive, through the communication subsystem, a payment instrument identifier associated with the payment instrument, and obtain a fingerprint based on one-way encrypting the payment instrument identifier. The processor is further configured to receive, from the first server via the communication subsystem, a loyalty balance associated with the fingerprint and to complete the financial transaction based on an updated amount based on the loyalty balance.