Portable Payment Terminal for Gas Pumps and Parking Meters
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Solution Overview
Problem
Merchant payment transactions using non-traditional equipment, such as gas pumps and parking meters, often require additional customer actions and introduce security risks due to potential skimming and the need for upgrades to support secure chip card payments.
Innovation Solution
A payment system that integrates with merchant non-payment equipment, utilizing a transceiver system and payment tokens like QR codes or RFID tags, which capture and validate payment account data, enabling secure and seamless transactions by communicating with payment processors and authentication servers.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional payment equipment is used, then secure chip card payments can be processed, but the equipment requires expensive upgrades and maintenance
Solution Approach 1:
The patent introduces a portable payment terminal as an intermediary device that contains the secure chip card reading capability. This terminal acts as a mediator between the customer's chip card and the merchant's existing non-payment equipment, allowing secure payments to be processed without upgrading the merchant's fixed equipment. The portable terminal carries the cryptographic security functions to the point of sale.
Solution Approach 2:
The patent extracts the secure payment processing functionality from the merchant's fixed payment equipment and relocates it to a portable terminal. By taking out the chip card reader and cryptographic processing capabilities into a mobile device, the system eliminates the need for expensive upgrades to the merchant's stationary equipment while maintaining security.
2Productivity
If merchant payment equipment is used, then payments can be processed, but the equipment is vulnerable to skimming and fraud
Solution Approach 1:
The patent inverts the traditional payment flow by having the portable terminal read the chip card information and then communicate with the merchant's system, rather than the merchant's equipment directly reading the card. This reversal prevents skimming because the portable terminal already possesses the secure reading capability and can validate transactions without exposing sensitive data to potentially compromised merchant equipment.
Solution Approach 2:
The patent performs preliminary authentication and validation of the chip card data in the portable terminal before the transaction is completed at the merchant's location. By pre-reading and pre-validating the card information in a secure environment, the system prevents fraudsters from intercepting or skimming sensitive payment data during the transaction process.
3Adaptability or versatility
If non-traditional payment equipment is used, then payment flexibility is improved, but additional customer actions are required creating friction
Solution Approach 1:
The portable payment terminal is designed with universal compatibility to work with various types of merchant equipment (gas pumps, parking meters, vending machines, etc.) that traditionally did not have payment processing capabilities. The terminal provides multiple functions including chip card reading, contactless payment, and integration with diverse merchant systems, enabling flexible payments across different platforms without requiring customers to learn new procedures for each device.
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
The solution reduces customer friction and enhances security by allowing contactless payments while ensuring compatibility with various merchant systems, reducing the risk of fraud and the need for costly upgrades.
Implementation Method 1
at least one RFID active receiver; the at least one transceiver system configured to read encoded account data stored on at least one payment token
Data Source
AI summary
A payment system apparatus configured to install with a merchant's non-payment equipment, comprising one or more payment tokens, a transceiver system and a housing, within which the transceiver system is installed, configured to install physically, electrically, wirelessly, or any combination thereof, with the merchant's non-payment equipment.