Payment Information Validation via Image OCR and Data Matching
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Solution Overview
Problem
In online commerce, consumers frequently enter incorrect payment information, leading to rejected transactions that are costly and inconvenient for both consumers and merchants, and existing pre-authorization processes are time-consuming and inefficient.
Innovation Solution
A system that compares a first representation of payment information entered by a consumer with a second representation, such as an image of a value token, to validate the payment information, allowing for correction and fraud analysis if they do not match, and can be processed by either a merchant service provider or directly by the merchant.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If pre-authorization process is used to validate payment information, then transaction rejection rate is reduced, but processing time increases and convenience deteriorates
Solution Approach 1:
The system performs validation actions in advance by capturing an image of the payment instrument and extracting data from it before the actual transaction occurs. This preliminary data extraction and validation preparation reduces the need for time-consuming re-verification during the transaction process, thereby maintaining high transaction acceptance rates while reducing processing time.
Solution Approach 2:
The patent replaces traditional manual pre-authorization processes with automated optical character recognition (OCR) technology to extract and validate payment information from images. This substitution of mechanical/manual verification with automated optical recognition systems significantly reduces processing time while maintaining validation accuracy and transaction acceptance rates.
2Ease of operation
If manual entry of payment information is used, then ease of operation is maintained, but errors increase leading to transaction rejections
Solution Approach 1:
The system creates an optical copy (image) of the payment instrument and uses automated recognition to extract data from this copy. This eliminates the need for manual typing while ensuring accuracy, as the data is directly captured from the source document through image processing and OCR technology.
Solution Approach 2:
Manual entry of payment information is replaced with automated optical character recognition (OCR) systems that extract data directly from images of payment instruments. This substitution eliminates human typing errors while maintaining ease of operation, as the system automatically captures and processes the information without requiring manual input.
3Ease of operation
If communication channels are used to transmit payment information, then ease of operation is improved, but data corruption may occur leading to validation failures
Solution Approach 1:
The system performs preliminary validation by comparing the originally captured payment instrument image data with the transmitted data before final processing. This preliminary check detects and corrects potential data corruption from communication channels, ensuring data accuracy while maintaining the convenience of electronic transmission.
Solution Approach 2:
The system implements feedback mechanisms where the captured image data serves as a reference to verify the accuracy of transmitted payment information. If data corruption is detected during transmission, the system can request re-transmission or correction using the original image data as a reference, thereby maintaining data integrity while preserving transmission convenience.
Data Source
AI summary
A method for validating payment information for an online transaction is provided. A payment server can receive two representations of the same payment information. The payment information can be validated if it is determined that the two representations match. If there is no match, or the payment information is otherwise invalid, the payment information can be repaired based on a trusted representation of the payment information, such as stored payment information or an image of an associated value token. Payment information can be received via one or more communication channels, and can be provided by one or more consumer devices. A merchant service provider can validate payment information and handle transaction processing on behalf of a merchant.