Point of Sale Terminal Fee Transparency
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Solution Overview
Problem
In credit card transactions, merchants are unable to pass transaction fees directly to customers, increasing their operating expenses and ultimately affecting the prices of goods, as there is no mechanism for customers to be informed about or choose transaction fees at the point of sale.
Innovation Solution
Apparatus and methods that provide transaction fee information to customers at the point of sale by receiving transaction data, identifying transaction fees, and transmitting this information to a point of sale platform, allowing customers to select a payment method based on fee information, including incentives and cost comparisons.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If merchants accept credit card payments, then customers gain access to ready funds and credit, but merchants incur transaction fees that increase operating expenses
Solution Approach 1:
The system provides real-time feedback to customers about transaction fees and alternative payment options at the point of sale. The POS terminal displays fee information and allows customers to compare different payment methods, enabling them to make informed decisions that could reduce merchant costs.
Solution Approach 2:
The patent introduces an intermediary system (POS terminal with fee calculation capabilities) that mediates between the merchant, customer, and payment networks. This intermediary provides transparency about fees and facilitates customer selection of payment methods, potentially reducing overall transaction costs.
2Object-affected harmful factors
If merchants cannot pass transaction fees to customers, then customers benefit from lower prices, but merchants experience increased operating expenses
Solution Approach 1:
The system empowers customers to actively participate in fee management by allowing them to view transaction fee information and select payment methods that minimize fees. This self-service approach enables customers to protect their interests without requiring merchants to explicitly pass fees along.
Solution Approach 2:
The system dynamically changes the displayed fee parameters based on the selected payment method, allowing customers to see how different choices affect transaction costs. This enables real-time optimization of payment decisions without requiring fee pass-through mechanisms.
3Ease of operation
If transaction fee information is not provided at point of sale, then the transaction process remains simple, but customers cannot make informed payment decisions
Solution Approach 1:
The system performs preliminary calculations and displays transaction fee information before the customer finalizes the payment. This advance provision of information allows customers to make informed decisions without complicating the actual transaction execution.
Solution Approach 2:
The patent adds an information dimension to the transaction process by displaying fee data and payment options on the POS terminal screen. This additional layer of information transparency does not significantly complicate the physical transaction flow but enables informed decision-making.
Data Source
AI summary
Apparatus and methods for providing transaction fee information to a customer. The apparatus and methods may provide to a customer at a merchant point of sale terminal information regarding a transaction fee. The transaction may be based on the customer's credit card or other purchasing instrument. The transaction fee may be imposed by an issuer of the credit card. The merchant may be required to pay the fee. The point of sale terminal may be configured to provide an opportunity for the customer to decide, based on the transaction fee, whether to continue the transaction or obtain information about fees associated with other credit cards.