Payment Proxy for Offline Electronic Transaction Processing
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Solution Overview
Problem
Conventional card readers require both the merchant and customer devices to be online for payment processing, which can lead to authorization delays and risks of non-receipt of payment due to network unavailability or inconsistency, especially in areas with poor Internet connectivity.
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 to be processed through a primary device that comes online, with risk analysis and contention resolution for seamless transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If conventional card readers require both devices to be online for payment processing, then payment security and authorization can be maintained, but payment processing fails or delays occur in areas with poor Internet connectivity
Solution Approach 1:
The system performs preliminary actions by pre-authorizing transactions and storing payment information locally on devices before network connectivity is needed. The payment proxy stores transaction details and authorization status locally, enabling offline payment processing without requiring real-time online verification at the moment of transaction.
Solution Approach 2:
The payment proxy acts as an intermediary between the merchant device and the remote authorization server. It buffers payment information, stores transaction details locally, and facilitates communication between offline devices and the online authorization server, enabling payments to be processed even when direct network connectivity is unavailable.
2Adaptability or versatility
If devices operate offline to enable payment processing in areas with poor connectivity, then payment processing capability is maintained, but security risks and fraudulent transactions increase
Solution Approach 1:
The system implements feedback mechanisms where the payment proxy continuously monitors transaction status, authorization responses, and communication between devices. It provides real-time feedback on payment processing status and security conditions, enabling dynamic adjustment of transaction handling based on current system state and network availability.
Solution Approach 2:
Security verification actions are performed preliminarily before offline transactions are authorized. The system pre-validates payment information, checks authorization status, and stores security-related transaction details locally before network connectivity is lost, ensuring that security protocols are maintained even in offline mode.
3Productivity
If payment information is stored locally on devices for offline processing, then payment processing can continue without network connectivity, but data storage requirements and system complexity increase
Solution Approach 1:
The system extracts essential payment processing functionality from the complex online authorization system and places it in a simplified local payment proxy component. This separates the core payment processing tasks (information storage, local verification) from the complex online communication and authorization processes, reducing overall system complexity while enabling offline operation.
Solution Approach 2:
The payment proxy is designed as a multi-functional component that handles multiple tasks including local storage of payment information, transaction buffering, authorization status management, and communication coordination between offline devices and online servers. This consolidates multiple functions into a single component, reducing system complexity.
4Speed
If transactions are processed instantly online, then payment authorization is rapid and reliable, but network dependency increases and processing fails in offline areas
Solution Approach 1:
The system performs preliminary authorization actions and stores payment information locally before network connectivity is needed. When offline, the payment proxy uses pre-stored authorization data to process transactions instantly without requiring real-time online verification, maintaining both speed and reliability in offline environments.
Data Source
AI summary
Methods and systems may process transactions in offline mode. In some implementations, a first device and a second device communicate via a short-range communication channel, the second device offline to a transaction processing system via a long-range communication channel. The first device receives from the second device, a payment identifier associated with a transaction between first and second device users, the identifier being associated with a financial account of the second device user. The first device accesses, based on the payment identifier, a risk score associated with the second device or user. A transaction request is provisionally completed by the first device based on the risk score being above a threshold level, which authorizes an associated transfer of funds, and subsequently the first device transmits to the transaction processing system via the long-range communication channel, the transaction request and the identifier to facilitate the transaction.