POS Terminal Contactless Payment via Network Intermediary
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Solution Overview
Problem
POS terminals without local wireless capabilities are limited to contact-based payments, restricting transaction capabilities with consumers who only support contactless payments.
Innovation Solution
The system enables POS terminals to receive payment account credentials from a payment network instead of the payment device, allowing for contactless transactions by submitting a transaction setup request and receiving a transaction setup message containing necessary payment information, thereby mimicking contactless payments without local wireless communication.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If POS terminals use contact-based payment methods, then device complexity is reduced, but adaptability to contactless payment devices is limited
Solution Approach 1:
The patent introduces a payment network as an intermediary between the POS terminal and the payment device. The payment network receives transaction setup requests from the POS terminal, obtains payment account credentials from the payment device remotely, and returns transaction setup messages to the POS terminal. This mediator approach enables contactless payment capability without requiring the POS terminal to have direct wireless communication hardware.
Solution Approach 2:
The patent shifts the communication dimension from local direct connection to remote network-based connection. Instead of requiring the POS terminal to communicate directly with the payment device through wireless protocols, the system uses a network dimension where all communications pass through the payment network, enabling contactless functionality through a different communication paradigm.
2Adaptability or versatility
If POS terminals lack local wireless capabilities, then device complexity is reduced, but transaction capability with contactless payment devices is restricted
Solution Approach 1:
The payment network acts as a mediator that bridges the capability gap. The POS terminal sends a transaction setup request to the payment network, which then remotely interacts with the payment device to obtain credentials, and returns a transaction setup message to the POS terminal containing necessary payment information.
Solution Approach 2:
The system performs preliminary actions by having the payment network obtain payment account credentials from the payment device before the actual transaction processing. The transaction setup message is prepared in advance with all necessary payment information, allowing the POS terminal to proceed with the transaction without needing wireless capabilities.
3Adaptability or versatility
If POS terminals implement contactless communication hardware, then adaptability to contactless payments is improved, but device complexity and cost increase
Solution Approach 1:
The payment network provides a universal solution that enables contactless payment functionality for POS terminals regardless of their hardware capabilities. The same network-based approach can be used by both terminals with and without wireless capabilities, creating a multi-functional system that adapts to different hardware configurations.
Solution Approach 2:
By using the payment network as an intermediary, the system eliminates the need for POS terminals to invest in additional wireless communication hardware. The intermediary handles all complex wireless interactions with payment devices, allowing terminals to maintain simpler designs while still supporting contactless payments.
Data Source
AI summary
Disclosed are exemplary embodiments of systems and methods for providing contactless payment at a point-of-sale (POS) terminal associated with a merchant, without local, direct communication of the POS terminal with a payment device. One exemplary method includes receiving a selection of a modified contactless payment option for a transaction at the POS terminal. In response, the POS terminal presents a detail for the transaction and receives a transaction setup message from a payment network. The transaction setup message includes a credential for a payment account associated with the consumer. An authorization request for the transaction is then generated, which includes the payment account credential, a merchant ID of the merchant, and an amount of the transaction. The POS terminal then transmits the authorization request to the payment network, via an acquirer associated with the merchant, thereby initiating the transaction without interacting locally and/or directly with the payment device.