Personal POS Device NFC Binding for Secure E-Commerce
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Solution Overview
Problem
E-commerce transactions involving manual entry of credit card information are risky and incur higher processing fees due to their card-not-present nature, lacking the security and verification of traditional retail POS transactions.
Innovation Solution
Integration of a Personal Point of Sale (POS) device with embedded near field communication (NFC) capabilities into personal devices like PCs, smartphones, and tablets, allowing for secure, Tap and Pay-style transactions that verify the presence of a physical card, thus enhancing security and reducing processing fees.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If manual entry of credit card information is used for e-commerce transactions, then transaction convenience is improved, but security and fraud risk worsen
Solution Approach 1:
The patent replaces the mechanical/manual entry system with an automated NFC-based system. Instead of manually typing card information, the system uses near field communication to automatically read and transmit card data, eliminating the security vulnerabilities of manual entry while maintaining ease of use.
Solution Approach 2:
The patent introduces a certified personal POS device as an intermediary between the cardholder and the merchant. This device verifies the physical presence of the card through NFC communication and provides certification that the transaction is card-present, thereby enhancing security without compromising convenience.
2Adaptability or versatility
If manual entry of credit card information is used, then transaction flexibility is improved, but processing fees increase
Solution Approach 1:
The patent changes the fundamental parameter of transaction verification from 'card-not-present' to 'card-present' by using NFC technology. This parameter change allows merchants to access lower processing fee tiers reserved for in-person transactions, thereby reducing fees while maintaining transaction flexibility across various e-commerce scenarios.
3Reliability
If certified POS device is used for transactions, then security is improved, but device complexity increases
Solution Approach 1:
The patent makes personal devices (smartphones, tablets, laptops) serve multiple functions: they act as both the cardholder's payment device and the merchant's certified POS device. By integrating NFC capabilities into personal devices, the system achieves certified POS functionality without requiring separate specialized hardware, thereby reducing overall device complexity.
Applied Scientific Principles
This section explains which scientific principles are used to turn an abstract innovation direction into a practical engineering solution.
Function Achieved in This Case
This solution enables secure, card-present-like transactions online, reducing fraud risks and processing fees by ensuring the physical presence of a card during transactions, thereby improving the security and efficiency of e-commerce payments.
Implementation Method 1
Integration of a Personal Point of Sale (POS) device with embedded near field communication (NFC) capabilities into personal devices
Data Source
AI summary
Logic to register a personal point of sale (POS) device. Logic may communicate with the registration processor to establish a secure communication channel. Logic may access a basic input output system to obtain platform information. Logic may transmit the platform information to the registration processor to identify a certification associated with the device. Logic may communicate with a payment instrument via a card reader. Logic may transmit an encrypted message from the card reader to the registration processor to bind the payment instrument to the device. Logic may receive a communication from the device comprising platform information. Logic may perform a security protocol to establish a secure communication channel with the device. Logic may determine an existence of the certification for the device in the database based upon the platform information. And logic may register the platform in response to locating the certification of the platform.