Portable Device Card Transaction System Using Optical Character Recognition
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Solution Overview
Problem
Merchants face difficulties and high costs in processing credit card payments, particularly due to the need for bulky and expensive equipment for card-present transactions, which can be impractical for field operations and result in higher fees for non-card-present transactions.
Innovation Solution
A system utilizing a portable device with a transaction server to process card-present transactions by obtaining and verifying transaction data, including credit card images, using optical character recognition (OCR) to automate data entry and reduce the need for additional equipment, allowing merchants to perform transactions without the costs and impracticality of traditional card-swiping devices.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If mobile phone and laptop peripheral devices are used for processing card-present transactions, then credit card services can be provided in the field, but the devices are bulky and difficult to carry
Solution Approach 1:
The patent extracts the card-present transaction capability from bulky peripheral devices and integrates it into the portable device's native camera and processing system. The camera captures images of the credit card, and the device's processor performs OCR and validation, eliminating the need for external card readers or swipe terminals.
Solution Approach 2:
The patent uses optical copying through camera imaging to capture credit card information. Instead of requiring physical contact with the card through magnetic strips or chips, the system creates a digital copy of the card's visual information and processes it through OCR technology embedded in the portable device.
2Adaptability or versatility
If peripheral devices for card-present transactions are used, then transactions can be processed in the field, but each device costs hundreds to thousands of dollars
Solution Approach 1:
The patent makes the portable device universal by enabling it to perform multiple functions: the camera serves for both general photography and credit card capture, the processor handles both general computing and OCR/transaction validation, and the device itself acts as both a communication tool and a payment terminal, eliminating the need for dedicated expensive peripherals.
Solution Approach 2:
The portable device performs card-present transactions using its own built-in resources - the camera captures the card image, the processor performs OCR and validation, and the device communicates with the payment network. The system serves itself without requiring external specialized equipment, making the capability inherent to the device rather than additive.
3Reliability
If card-present transactions are established using additional equipment, then transaction verification is possible, but the equipment is impractical for field operations
Solution Approach 1:
The patent replaces mechanical card-swiping or magnetic stripe reading systems with an optical-mechanical system using the camera. The camera captures the card image, and software-based OCR replaces the mechanical reading process, enabling verification without physical contact or specialized mechanical interfaces.
Solution Approach 2:
The patent segments the transaction verification process into distinct digital steps: image capture by camera, OCR text extraction from the image, validation of extracted data against payment network rules, and authorization. This segmentation allows each function to be performed by standard portable device components rather than requiring integrated specialized hardware.
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
Enables merchants to process credit card transactions efficiently and cost-effectively in the field using a portable device, reducing equipment costs and fees associated with non-card-present transactions while ensuring transaction validity and security.
Implementation Method 1
The credit card information is obtained by performing optical character recognition (OCR) on a front image and a back image of the credit card.
Data Source
AI summary
Some embodiments of the present invention provide a system that processes a financial transaction involving a portable device and a transaction server. During operation, the system obtains transaction data associated with the financial transaction that includes a transaction amount, credit card information, and an image of a credit card. The system then sends the transaction data to the transaction server using the portable device. Next, the system verifies a card-present transaction using the transaction data and determines a validity of the transaction data. If the transaction data is valid, the transaction server processes the financial transaction and sends an authorization code confirming the financial transaction to the portable device.