Physical-to-Digital Cash Conversion at Point of Sale
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Solution Overview
Problem
The inefficiency in managing and storing physical change received during transactions, leading to significant losses and increased administrative costs for both consumers and merchants, as existing digital payment systems do not effectively digitize loose change.
Innovation Solution
A system that allows customers to opt for electronic deposits of change into digital accounts during point-of-sale transactions, using a physical-to-digital cash processing program that interfaces with merchant payment systems and customer mobile devices, enabling the conversion of physical change into digital format for storage and investment.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If physical cash is used for transactions, then transactions can be completed easily and universally, but significant losses occur and administrative costs increase due to managing and storing physical change
Solution Approach 1:
The patent creates a digital copy of physical change by capturing images of cash and coins using imaging devices. These digital representations are stored and managed electronically, replacing the need to physically handle and store actual change. The system creates a virtual copy that maintains the value and transaction history without requiring physical storage space.
Solution Approach 2:
The patent replaces the mechanical system of physical cash handling with an electronic system. Instead of manually counting, storing, and transporting physical change, the system uses digital imaging, data processing, and electronic storage to manage the same information. This substitution eliminates the mechanical labor and physical storage requirements.
2Quantity of substance
If physical change is received and stored, then customers can use it for future transactions, but it often gets lost, given away, or stored somewhere and is never used again
Solution Approach 1:
The system creates a permanent digital record of physical change through imaging. This digital copy is stored securely in an electronic database, eliminating the risk of loss associated with physical storage. The digital representation maintains the full value and transaction history indefinitely, as electronic data does not deteriorate or get misplaced like physical cash.
Solution Approach 2:
The system provides feedback to customers about their change through digital records. Customers can view their change history, transaction details, and balances through the system interface. This feedback mechanism increases reliability by allowing customers to track and manage their change digitally, reducing the likelihood of loss or misuse.
3Adaptability or versatility
If governments continue to print and circulate physical money, then transactions can be conducted without electronic systems, but significant costs are incurred for creating and administering the physical money system
Solution Approach 1:
The patent replaces the physical money creation and administration system with a digital imaging and data processing system. Instead of printing and physically distributing cash, the system captures images of cash and stores them electronically. This substitution dramatically reduces the costs associated with physical money production, distribution, and secure storage.
Solution Approach 2:
The system changes the fundamental parameter of money from physical form to digital form. By converting physical cash into digital images and data records, the system maintains the value and transaction functionality while eliminating the physical administration costs. This parameter change transforms the money system from a physical to an electronic paradigm.
4Productivity
If merchants manage physical cash and change, then transactions can be processed, but large amounts of money are lost to theft by employees or others
Solution Approach 1:
The system creates digital copies of cash transactions and stores them in secure electronic databases. This eliminates the need for merchants to physically handle and store large amounts of cash, thereby removing the vulnerability to theft. The digital records maintain full transaction accountability without exposing physical money to theft risks.
Solution Approach 2:
The patent replaces the physical cash handling system with an electronic data processing system. Instead of physically counting, securing, and storing cash, the system uses digital imaging and electronic records to manage transactions. This substitution eliminates the physical presence of money in merchant locations, thereby eliminating the risk of theft by employees or others.
Data Source
AI summary
Systems and methods for efficiently managing administration and storage of physical cash by merchants and minimizing loss of physical change by customers resulting from point of sale purchases at merchants by returning change in the form of digital cash electronically deposited to an account. Customers associate financial accounts with the system, such as bank, brokerage and cryptocurrency accounts. Customers select whether to receive all or some of the change digitally. The system includes a physical-to-digital payment processing program configured to deposit electronic cash into customers' accounts, the merchant using the physical-to-digital payment processing program to make the electronic deposit of digital change of the amount of change owed to the customer. In embodiments, the physical-to-digital payment processing program interfaces between a payment processing system of the merchant and a mobile device of the customer.