QR Code Payment OTP Verification for Merchant Identity
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Solution Overview
Problem
Existing QR code payment systems lack robust verification mechanisms, making them susceptible to fraud and scams, where either the merchant or customer can be defrauded due to insufficient verification of transaction authenticity and legitimacy.
Innovation Solution
A secure transaction system that involves scanning a QR code to initiate a payment, sending a one-time password (OTP) to a pre-registered contact for the merchant, and requiring confirmation before completing the transaction, ensuring both parties' verification and authorization.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If QR code payment systems use simple verification methods, then ease of operation is improved, but reliability deteriorates due to fraud susceptibility
Solution Approach 1:
The system performs preliminary verification actions by sending OTPs to pre-registered contact information (phone numbers or emails) associated with merchant accounts before completing the payment transaction. This advance verification ensures the merchant's identity is confirmed without adding significant complexity to the payment flow, resolving the contradiction between ease of operation and reliability.
Solution Approach 2:
The patent introduces an intermediary verification mechanism using OTPs as a mediator between the payment system and the merchant. Instead of directly trusting the QR code information, the system uses the OTP as an intermediate verification layer that confirms the merchant's identity, thereby improving reliability while maintaining operational simplicity through automated verification.
2Reliability
If QR code payment systems implement robust verification mechanisms, then reliability is improved, but device complexity worsens
Solution Approach 1:
The verification system operates autonomously by automatically sending OTPs to pre-registered contact information and validating the responses without requiring manual verification steps from users or merchants. The system self-manages the entire verification process, including OTP generation, delivery, and validation, which improves reliability while minimizing the complexity burden on users and devices.
3Productivity
If QR code payment systems use minimal data transmission, then productivity is improved, but reliability deteriorates due to insufficient verification information
Solution Approach 1:
The system performs preliminary verification actions by sending OTPs to pre-registered contact information (phone numbers or emails) associated with merchant accounts before completing the payment transaction. This advance verification ensures the merchant's identity is confirmed without adding significant complexity to the payment flow, resolving the contradiction between ease of operation and reliability.
Solution Approach 2:
The patent introduces an intermediary verification mechanism using OTPs as a mediator between the payment system and the merchant. Instead of directly trusting the QR code information, the system uses the OTP as an intermediate verification layer that confirms the merchant's identity, thereby improving reliability while maintaining operational simplicity through automated verification.
Data Source
AI summary
A Secure Transaction System can receive a request to initiate a transaction from a payment application. The request can include merchant information obtained from a QR code generated for a merchant. The Secure Transaction System can search a merchant storage resource for corresponding contact information for the merchant identified by the merchant information and communicate a password over a communication channel using the contact information for the merchant. The password sent to the merchant can be provided to the payment application in some manner and the payment application can communicate the password to the Secure Transaction System, which determines whether the verification information satisfies conditions with respect to the password for the merchant and communicates confirmation to the payment application that the transaction can proceed when the verification information satisfies the conditions.