Payment Terminal Dynamic Merchant Configuration for Virtual Transactions
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Solution Overview
Problem
Existing payment systems in virtual environments face security issues due to card-on-file techniques, increased risk of fraud, and require intermediaries for transaction processing, and lack dynamic merchant configuration based on user location.
Innovation Solution
A computer-implemented method and system for dynamic merchant configuration in a payment terminal that receives location information from a VR device, determines merchant details, and sends transaction messages via a gateway for authorization, allowing secure transactions using physical payment cards without intermediaries.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If card on file technique is used for payments in virtual environment, then ease of operation is improved, but security and fraud risk deteriorate
Solution Approach 1:
The system performs preliminary configuration of merchant gateway details before the payment transaction occurs. The payment terminal receives and stores merchant information, gateway identifiers, and routing details in advance, so that when a payment is initiated, the transaction can be routed securely without requiring real-time card-on-file storage, thus maintaining security while enabling convenient payments.
Solution Approach 2:
The patent introduces a payment terminal as an intermediary device between the user and the merchant gateway. This terminal acts as a mediator that holds pre-configured gateway information and facilitates the transaction without requiring the virtual environment provider to store sensitive card details, thereby maintaining security while enabling seamless payments.
2Productivity
If existing payment techniques are used in virtual environment, then transaction processing is enabled, but device complexity increases due to multiple intermediaries
Solution Approach 1:
The patent extracts the merchant gateway configuration functionality from the virtual environment provider and places it in the payment terminal. This separation removes the complexity of managing multiple intermediaries from the virtual environment system, as the terminal now independently handles gateway selection and routing based on pre-configured information.
Solution Approach 2:
The payment terminal performs self-configuration by automatically receiving and storing merchant gateway details when a merchant is added to the virtual environment. The terminal independently manages the mapping between merchants and their gateways, eliminating the need for complex intermediary coordination and reducing overall system complexity.
3Adaptability or versatility
If dynamic merchant configuration is implemented, then adaptability is improved, but device complexity increases
Solution Approach 1:
The payment terminal implements dynamic configuration by automatically updating its stored merchant gateway information when new merchants are added to the virtual environment. The terminal adapts its routing table in real-time based on merchant registration, allowing flexible support for multiple merchants and gateways without requiring manual reconfiguration or increasing operational complexity.
Data Source
AI summary
The present invention relates to a system and computer implemented method for dynamic merchant configuration in a payment terminal for transacting in a virtual environment. The payment terminal receives a location information of a virtual user corresponding to a physical user performing a transaction in one of the one or more establishments configured in a virtual environment from a Virtual Reality (VR) device. Further, merchant and associated details corresponding to one of the one or more establishments is determined based on the location information upon the physical user initiating payment for the transaction using a physical payment card. Thereafter, a transaction message comprising the merchant and associated details is sent to an issuer system via a gateway associated with the merchant for authorization. Finally, a result of authorization of the transaction message is received from the issuer system via the gateway.