Pre-authorized Payment Transaction Processing via POS Terminal
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Solution Overview
Problem
The process of inputting authentication information and transaction amounts at point-of-sale (POS) terminals for electronic payment transactions is inconvenient, and the time involved in transaction authorization at the issuer backend can be lengthy, affecting the user experience.
Innovation Solution
Implementing pre-authorized payment transactions by storing transaction parameters in a pre-authorized transaction database, where a POS terminal generates a transaction payment request with populated PIN and transaction amount data elements independent of user input, allowing the transaction authorization server to initiate payments without relying on these data elements, thus streamlining the authorization process.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If authentication information and transaction amount are input at the POS terminal for each transaction, then transaction security is maintained, but user convenience deteriorates and transaction time increases
Solution Approach 1:
The system performs preliminary authorization by storing pre-approved transaction parameters (including authentication information and transaction amounts) in a database before the actual purchase occurs. When a transaction is initiated at the POS terminal, the system retrieves these pre-stored parameters instead of requiring real-time input and authorization, thereby eliminating the time-consuming authentication step while maintaining security through pre-validated credentials.
Solution Approach 2:
The invention extracts the authentication information and transaction amount input steps from the real-time transaction process and moves them to a preliminary phase. By separating these elements and storing them in advance in the database, the system eliminates the need for users to input sensitive information at the POS terminal, improving convenience and reducing transaction time while preserving security through pre-validated data.
2Reliability
If real-time authentication and authorization are performed at the issuer backend, then transaction security is ensured, but transaction processing time increases
Solution Approach 1:
The system performs the authorization function in advance by pre-validating transaction parameters and storing approved transaction details in a database before the actual purchase. This preliminary authorization eliminates the need for real-time issuer backend verification during the transaction, thereby maintaining security through pre-validated credentials while significantly reducing processing time at the point of sale.
Solution Approach 2:
The invention introduces a database as an intermediary that stores pre-authorized transaction parameters. Instead of direct real-time communication between the POS terminal and the issuer backend for authentication, the system uses this intermediary database to retrieve pre-approved transaction details, thereby maintaining security verification while eliminating the time delay associated with real-time backend processing.
3Measurement precision
If PIN and transaction amount input fields are present at the POS terminal, then transaction accuracy is maintained, but user experience deteriorates
Solution Approach 1:
The invention removes the PIN and transaction amount input fields from the POS terminal interface by extracting these data entry functions from the transaction execution phase. The system retrieves these parameters from pre-stored data in the database, thereby eliminating the need for users to manually input sensitive information while maintaining transaction accuracy through pre-validated data from the preliminary authorization process.
Solution Approach 2:
The system uses copies of pre-stored transaction parameters from the database instead of requiring real-time user input. By retrieving and using these pre-validated copies of authentication information and transaction amounts, the system maintains accuracy while improving convenience, as users no longer need to manually enter data at the POS terminal.
Data Source
AI summary
The invention provides methods, systems and computer program products for implementing pre-authorized payment transactions. In an embodiment, the invention comprises at a point-of-sale (POS) terminal (i) receiving a payment initiation request, (ii) receiving payment account information associated with a payment account associated with a payor, and (iii) receiving a first input identifying the payment transaction as a payment transaction that has been pre-authorized, (iv) responsive to receiving the first input identifying the payment transaction as a payment transaction that has been pre-authorized, generating a transaction payment request based on a pre-defined request message format, wherein a personal identification number (PIN) data element within the transaction payment request is populated independent of any PIN value input at the POS terminal, and (v) routing the generated transaction payment request to a transaction authorization server that is communicably coupled to the pre-authorized transaction database.