Point of Sale Credit Pre-Screening System
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Solution Overview
Problem
Applying for a private label credit card or commercial credit card is time-consuming and inconvenient for shoppers, requiring a special trip to the customer service desk and filling out credit forms, with the approval process being inefficient and not allowing immediate purchasing power.
Innovation Solution
A method and system for pre-screening customers for credit at a point of sale by receiving customer data, transmitting it to a server, searching a database, and performing a creditworthiness check, allowing for instant pre-approval and the option to open a charge account during the checkout process, utilizing a point of sale system connected to a communications link and a credit information server.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If traditional credit card application process is used (trip to customer service desk, filling out forms), then credit approval can be obtained, but it is time-consuming and inconvenient for shoppers
Solution Approach 1:
The system performs preliminary credit screening by checking customer data against credit bureaus before the actual purchase transaction. Customer information is pre-collected through loyalty cards or membership programs, and creditworthiness is assessed in advance, so that when a customer makes a purchase, the credit approval has already been completed or can be instantly determined.
Solution Approach 2:
The credit application process is integrated into the existing point-of-sale system, allowing customers to receive credit offers and complete applications during their normal shopping experience without needing to visit a separate customer service desk. The system automatically presents credit offers at the register based on pre-screening results.
2Productivity
If credit approval process is simplified and integrated into point of sale, then convenience and speed are improved, but the complexity of the system increases
Solution Approach 1:
The patent integrates multiple functions into the existing point-of-sale system: customer identification, credit screening, offer generation, application processing, and transaction authorization all occur within the same system infrastructure. This leverages existing hardware and software capabilities rather than requiring separate dedicated systems for each function.
Solution Approach 2:
The system uses existing intermediaries such as credit bureaus and customer loyalty programs to handle complex credit assessment tasks. The point-of-sale system acts as a coordinator that interfaces with these external services, rather than building all credit evaluation capabilities in-house, thus reducing system complexity.
3Loss of time
If credit screening is performed at point of sale, then immediate purchasing power is enabled, but customer data security requirements increase
Solution Approach 1:
Customer data is collected and screened in advance through existing loyalty card programs and membership systems. Credit checks are performed before the point-of-sale transaction occurs, using pre-collected information. This preliminary action allows the system to work with already-verified data during the actual purchase, reducing the need to handle sensitive information in real-time.
Solution Approach 2:
The system uses copies of customer information (such as loyalty card numbers or membership identifiers) rather than requiring direct access to sensitive personal data during the transaction. These identifiers serve as keys to retrieve pre-verified credit information from secure databases, minimizing the exposure of sensitive customer data.
Data Source
AI summary
An exemplary embodiment of the invention relates to a method, system and storage medium for pre-screening customers for a credit card at a point of sale. The method includes receiving the customer data at a point of sale system and, during a check out process: transmitting the customer data to a server; searching a database for the customer data; and based upon results of the searching, performing a credit worthiness check and providing said customer with an invitation to open a charge account. If the customer accepts the invitation, a charge account is opened before a payment method is selected whereby the customer can place the items selected for purchase on the new charge account while at the point of sale system. The system includes at least one point of sale system coupled to a communications link; a server coupled to the point of sale system via the communications link; a data storage device in communication with the server; and a link to a credit information server.