Payment Initiation via POS Notification and Tokenized Payor Data
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Solution Overview
Problem
The inconvenience and security risks associated with in-person cash transactions and the need for physical payment cards have led to the development of electronic payment methods, but these still require users to share sensitive information with merchants, which is inconvenient and potentially risky.
Innovation Solution
A system involving a merchant point of sale device, a payor compute device, and a remote gateway compute device facilitates transactions by using a transaction identifier and short-range wireless communication to enable secure payment processing without the need for the payor to share payment card information directly with the merchant.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If payment card information is shared directly with merchants for electronic payments, then payment convenience is improved, but security risks increase
Solution Approach 1:
The patent introduces a tokenization system where a transaction identifier (token) serves as an intermediary between the payment card information and the merchant. The token contains encrypted or hashed payment data that can be processed by the payment processor without exposing the actual card details to the merchant, thus maintaining convenience while enhancing security
Solution Approach 2:
The system creates a copy of the payment card information in the form of a transaction identifier or token. This token is a representation of the original payment data that can be used for transactions without exposing the sensitive original information, allowing the merchant to process payments without handling actual card details
2Reliability
If physical payment cards are required for transactions, then payment security is improved, but user convenience deteriorates
Solution Approach 1:
The patent replaces the mechanical system of physical card handling (swiping, inserting, tapping) with an electronic system. Payment card information is captured once and stored securely, then used electronically through tokens or encrypted data transmissions, eliminating the need for repeated physical card interactions while maintaining security through cryptographic methods
3Productivity
If payment card information is stored in electronic devices for quick access, then transaction speed is improved, but security risks increase
Solution Approach 1:
The system extracts the sensitive payment card information from the electronic device's storage and replaces it with a token or encrypted representation. The actual card data remains secure in encrypted form or with the payment processor, while the extracted token enables quick transactions without exposing the original sensitive information
Data Source
AI summary
Technologies for initiating payment processing include a compute device. The compute device includes circuitry configured to obtain, at a merchant location, a notification transmitted from a merchant point of sale device, to facilitate a financial transaction. The notification may be indicative of a financial transaction that was initiated between the merchant point of sale device that is at the merchant location and a remote gateway compute device that is not at the merchant location. The circuitry may also be configured to send, to the remote gateway compute device, payor identification data that identifies the payor associated with the financial transaction. Further, the circuitry may be configured to send, to the remote gateway compute device, payment method selection data indicative of a payment method selected by the payor for the financial transaction.