POS Consumer Identification via Consortium Processor
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Solution Overview
Problem
Existing systems for identifying consumers at a point-of-sale (POS) system are inadequate as they either require loyalty cards or rely on trade area append methods, which suffer from inaccuracies and limitations such as duplicate names, missed consumers, and incorrect identifications.
Innovation Solution
A system incorporating a virtual wallet database and a consortium processor that checks tender data against a networked database, utilizing a consortium of financial services providers to confirm consumer identity without requiring loyalty cards, and employing trade area append when necessary to resolve ambiguities.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If trade area append is used to identify consumers by name and address, then consumer identification can be performed without loyalty cards, but duplicate names within the trade area cause identification errors
Solution Approach 1:
The patent introduces a consortium processor as an intermediary between the POS system and consumer databases. This intermediary resolves duplicate name conflicts by accessing additional data sources and applying conflict resolution algorithms, thereby maintaining identification accuracy while enabling cardless transactions.
Solution Approach 2:
The system dynamically adjusts identification parameters by switching between different data sources (tender data, trade area append, consortium processor) based on the situation. When duplicate names are detected, the system changes the identification approach from simple name matching to more sophisticated resolution methods.
2Measurement precision
If trade area size is reduced to minimize duplicate names, then identification accuracy improves for local consumers, but consumers traveling or shopping outside their local area are missed
Solution Approach 1:
The system maintains multiple identification methods that can be applied universally regardless of consumer location. The consortium processor can access national consumer databases, enabling the system to identify consumers from any geographic area, not just local trade areas, thus making the system universally applicable to all consumers.
Solution Approach 2:
The system pre-loads and maintains access to multiple consumer databases including national databases through the consortium processor. This preliminary preparation ensures that when a transaction occurs, the system can quickly access relevant consumer data regardless of whether the consumer is local or traveling, eliminating the need to adjust trade area parameters.
3Measurement precision
If loyalty cards are required for unique consumer identification, then accurate identification is achieved, but consumer convenience decreases and card loss prevents data capture
Solution Approach 1:
The system enables consumers to be automatically identified through their tender data (credit card, debit card, electronic wallet) without requiring them to actively present or manage loyalty cards. The identification process occurs automatically in the background, making the consumer experience more convenient while maintaining accurate identification.
Solution Approach 2:
The consortium processor acts as an intermediary that enables cardless identification by mediating between the POS system and consumer databases using tender data. This intermediary layer allows accurate consumer identification without requiring the consumer to physically present or remember a loyalty card.
4Adaptability or versatility
If a broad consumer database is accessed for trade area append, then more consumers can be identified, but duplicate names and incorrect matches increase
Solution Approach 1:
The consortium processor serves as a sophisticated intermediary that manages access to broad consumer databases. It implements advanced matching algorithms and conflict resolution logic to handle duplicate names, ensuring that breadth of database access does not compromise identification accuracy.
Solution Approach 2:
The system uses feedback from the identification process to refine future matches. When the consortium processor resolves duplicate name conflicts or confirms consumer identity, this feedback is used to improve the accuracy of future identifications, allowing the system to leverage broad database access while maintaining high precision.
Data Source
AI summary
A system for identifying a consumer at a retailer point of sale (POS) incorporates a virtual wallet database that contains consumer records. A consortium processor utilizes a database or databases with information known to the electronic tender provider but not available to the virtual wallet database. If the identifying data from the retailer POS hardware does not match any data from the virtual wallet database, an enhanced trade area append processor is employed to find a matching consumer within the retailer POS trade area. If a match is found, the applicable address is attached to the consumer data captured at the POS. A record is then sent to the consortium processor, which compares this data to its own records and returns a match or no-match result. The virtual wallet database is updated based on the match results.