POS Camera Payment Verification via OCR

Resolve Bottlenecks,
Find Innovative SolutionsGenerate Solutions

Solution Overview

Problem

Current point-of-sale (POS) devices face challenges in verifying the presence of a payment instrument during transactions, particularly in card-not-present scenarios, leading to higher fraud risks and increased transaction fees for merchants.

Innovation Solution

Implementing a camera on POS devices to capture images of payment instruments, which are then uploaded to a payment service for optical character recognition (OCR) to identify and verify the instrument, reducing fraud by comparing images and charging lower fees for transactions where the instrument is proven present.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If manual entry of payment instrument identifier is used, then transaction can be completed without physical proximity, but fraud risk increases and transaction fees increase

Engineering Contradiction:

Improvetransaction completion convenienceVSAvoidfraud risk

Core Design Contradiction:

Ease of operationVSReliability

Solution Approach 1:

The patent uses optical copying by capturing an image of the payment instrument with a camera. This creates a visual copy that can be processed to extract the identifier, replacing manual entry while maintaining security. The image copy serves as proof of physical presence without requiring manual typing.

Inventive Principle:

Principle #26Copying

Solution Approach 2:

The patent replaces the mechanical action of manually typing the identifier with an optical system (camera) that automatically captures and processes the payment instrument image. This substitution eliminates the need for physical proximity during entry while maintaining verification security through image analysis.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

2Ease of operation

If manual entry of payment instrument identifier is used, then transaction can be completed remotely, but transaction fees increase

Engineering Contradiction:

Improveremote transaction capabilityVSAvoidtransaction fees

Core Design Contradiction:

Ease of operationVSLoss of energy

Solution Approach 1:

By creating an optical copy of the payment instrument through camera imaging, the system enables remote processing while providing verifiable proof of physical presence. This reduces fees by categorizing the transaction as card-present rather than card-not-present.

Inventive Principle:

Principle #26Copying

Solution Approach 2:

The system performs preliminary action by capturing the image of the payment instrument before the transaction is finalized. This advance capture provides the necessary verification data to qualify for lower transaction fees associated with card-present transactions.

Inventive Principle:

Principle #10Preliminary action

3Reliability

If camera-based verification is implemented, then fraud risk decreases and transaction fees decrease, but device complexity increases

Engineering Contradiction:

Improvefraud preventionVSAvoidPOS device structure

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The patent applies multi-functionality by using a camera, which is a common component in modern mobile devices, for payment verification purposes. This universal component serves multiple functions including capturing the payment instrument image and providing proof of physical presence, thereby minimizing additional device complexity.

Inventive Principle:

Principle #6Universality (Multi-functionality)

Solution Approach 2:

The system enables self-service by allowing the payment instrument itself to provide verification data through its visual characteristics. The camera captures the instrument's image, and optical character recognition automatically extracts the identifier, reducing the need for complex manual verification processes.

Inventive Principle:

Principle #25Self-service

4Reliability

If image capture and OCR processing is used, then verification security increases, but processing time increases

Engineering Contradiction:

Improveverification securityVSAvoidtransaction processing time

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The patent replaces time-consuming manual entry with automated optical character recognition. The camera rapidly captures the payment instrument image, and OCR technology automatically extracts the identifier, significantly reducing processing time while maintaining high verification security through image analysis.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Data Source

PatentUS9530128B1Payment instrument verification techniques

Publication Date: 2016.12.27 BLOCK INC

AI summary

Techniques and arrangements for authorizing a payment instrument by capturing an image of the payment instrument at a point-of-sale (POS) device and uploading the image to a payment service, which performs optical character recognition (OCR) on the image to identify an identifier of the payment instrument. The payment service may then use the identifier to authorize the payment instrument for a cost of a transaction performed at the POS device.