Instant POS Merchant Activation via Data Segmentation
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
The existing certification process for point of sale (POS) payment terminals is time-consuming, hindering instant activation of merchants, while current proprietary solutions are limited and require certification, necessitating a method for immediate activation without compromising security.
Innovation Solution
A system and method that encrypts sensitive payment data and transmits only non-sensitive data for risk analysis, allowing instant merchant activation without weakening security, using a payment initiation device, gateway, processor, and service engine to assess risks without accessing sensitive information.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If the traditional certification process is used for POS payment terminals, then security and compliance are ensured, but the activation time is lengthy and merchant onboarding is delayed
Solution Approach 1:
The patent segments the payment data into sensitive and non-sensitive portions. Sensitive data (card numbers, CVV) is encrypted and transmitted separately, while non-sensitive data (transaction details, merchant information) is transmitted for immediate risk analysis. This segmentation enables instant activation while maintaining security by processing sensitive data through established secure channels after initial authorization.
Solution Approach 2:
The system performs preliminary risk analysis on non-sensitive payment data before the complete transaction is finalized. By assessing risk characteristics of the payment request, merchant, and customer upfront, the system can instantly activate merchants while maintaining security through subsequent verification of sensitive data through encrypted channels.
2Productivity
If proprietary POS terminals are used for instant activation, then merchant onboarding is rapid, but the solution is limited to specific terminal types and requires certification
Solution Approach 1:
The patent creates a universal activation system that works with existing POS payment terminals from multiple providers, not just proprietary terminals. The system accepts various terminal types (Square, Clover, NCR, Genius, Verifone, etc.) and applies a common risk analysis framework, enabling instant activation across different terminal ecosystems while maintaining security through standardized encryption protocols.
3Ease of operation
If sensitive payment data is transmitted for processing, then complete transaction authorization is achieved, but security risks increase during transmission
Solution Approach 1:
The patent extracts sensitive payment data from the initial transmission stream. Only non-sensitive payment information is transmitted for immediate risk analysis and activation. Sensitive data is handled separately through encrypted channels, reducing the attack surface during transmission while maintaining complete transaction processing capability through subsequent verification steps.
Data Source
AI summary
A new approach is proposed to support instant merchant activation for secured in-person payment at a point of sale (POS) of a merchant. When a customer initiates an in-person payment request at a payment initiation device associated with the merchant, the payment initiation device collects both sensitive and non-sensitive portions of electronic payment transaction data for the request and encrypts the sensitive data portion for secured transmission. A payment gateway in the payment transaction process relays the data and the payment request to a payment processor for approval by an issuer and transmits only the non-sensitive portion of the data to a payment service engine for risk analysis if the payment request is approved by the issuer. The payment service engine determines if the payment request is at high risk based on risk analysis of non-sensitive portion of the data and notifies the payment initiation device and/or merchant accordingly.