Pre-authorization Code System for Rapid Checkout
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Solution Overview
Problem
Current financial transaction processes are slow due to the need for multiple inquiries and verification steps, which can delay the authorization of transactions and inconvenience consumers during the checkout process.
Innovation Solution
A system that allows consumers to pre-authorize transactions by indicating their intent to make a purchase at a merchant location, using GPS or beacons, which then transmits a preauthorization code to the merchant, allowing for faster checkout without the need for additional verification steps such as signatures or ID checks.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If the system performs multiple inquiries and verification steps during checkout, then transaction security is improved, but transaction processing time increases
Solution Approach 1:
The system performs authorization inquiries and verification steps before the actual checkout transaction. The authorizing entity conducts fraud checks, credit verification, and other security inquiries in advance, storing the results for rapid retrieval during the actual transaction, thereby eliminating these time-consuming steps from the checkout process while maintaining security
Solution Approach 2:
The transaction process is divided into two distinct phases: a pre-initiation phase where security inquiries and verifications are performed, and a checkout phase where only the final authorization is needed. This segmentation allows the time-consuming security checks to be separated from the time-critical checkout process
2Object-affected harmful factors
If the system requires additional verification checks such as consumer ID or signature, then fraud prevention is improved, but checkout speed decreases
Solution Approach 1:
The system performs fraud prevention checks and verification of consumer identity in advance during the pre-initiation phase. The authorizing entity conducts these security checks before checkout, so that during the actual transaction, the merchant can process the authorization request without requiring additional verification steps like ID checks or signatures
Solution Approach 2:
The verification steps (ID checks, signature collection) are extracted from the checkout process and performed separately during the pre-initiation phase. This removal of verification steps from the critical checkout path enables faster processing while maintaining fraud prevention through the preliminary verification
Data Source
AI summary
A consumer may indicate that the consumer intends to complete a transaction at a merchant. An authorizing entity may perform some of the authorization inquiries typically performed at the time of checkout. The authorizing entity may provide a preauthorization code to the consumer. The consumer may use the preauthorization code to complete the transaction. The processing time to complete the transaction may be decreased due to the previously initiated inquiries. Additionally, the merchant may be authorized to forego verifying a signature or ID verification, speeding up the checkout process.