Remote Payment Terminal Emulation via Mobile Intermediary

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Solution Overview

Problem

Current payment systems lack a secure and efficient method for conducting card-present transactions when the merchant and user are geographically separated, leading to increased fraud risks and inconvenience in remote transactions.

Innovation Solution

A computer-implemented method that allows for the execution of card-present transactions from a remote environment by using an intermediate agent device to receive payment details and configuration information from a second payment terminal, emulate the second terminal, and communicate transaction data for authorization, enabling secure and convenient remote payments.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If card not present transaction is used for remote payments, then convenience for users is improved, but security and fraud verification capability deteriorate

Engineering Contradiction:

Improveconvenience for usersVSAvoidsecurity and fraud verification capability

Core Design Contradiction:

Ease of operationVSReliability

Solution Approach 1:

The patent introduces an intermediary device (mobile device with camera and processor) that acts as a mediator between the user and the remote payment terminal. This intermediary captures images of the physical card and transaction details, then transmits this data to the remote terminal, enabling card-present transaction verification without requiring physical presence at the merchant location.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent creates visual copies of the physical payment card and transaction details through camera imaging. The mobile device captures images of the card front, card back, and transaction information, then transmits these image copies to the remote payment terminal, allowing the terminal to verify card authenticity and transaction details as if the physical card were present.

Inventive Principle:

Principle #26Copying

2Reliability

If physical card presentation is required for secure transactions, then security verification is improved, but user convenience and accessibility deteriorate

Engineering Contradiction:

Improvesecurity verificationVSAvoiduser convenience and accessibility

Core Design Contradiction:

ReliabilityVSEase of operation

Solution Approach 1:

The patent replaces the mechanical requirement of physical card insertion or magnetic stripe swiping at a remote terminal with an optical imaging system. The mobile device camera captures images of the card and transaction details, which are then transmitted electronically to the remote terminal for verification, eliminating the need for physical card presentation at the terminal location.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Solution Approach 2:

The mobile device serves as an intermediary that bridges the gap between the user's physical card and the remote payment terminal. It captures the necessary visual information and transmits it to the terminal, allowing security verification to occur remotely while maintaining the security standards of card-present transactions.

Inventive Principle:

Principle #24Intermediary (Mediator)

3Adaptability or versatility

If remote transaction systems are implemented, then user accessibility is improved, but fraud risks and chargeback issues worsen

Engineering Contradiction:

Improveuser accessibilityVSAvoidfraud risks and chargeback issues

Core Design Contradiction:

Adaptability or versatilityVSObject-affected harmful factors

Solution Approach 1:

The patent performs preliminary verification actions by capturing and transmitting images of the physical card and transaction details before the transaction is finalized. The remote terminal receives these images in advance, allowing it to verify card authenticity, check for holograms, and validate transaction information before authorization, thereby preventing fraud and chargebacks.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The system implements feedback by transmitting transaction details and card images from the user's mobile device to the remote terminal, which then processes this information to verify authenticity and provide authorization decisions. This feedback loop ensures that the transaction can be verified as card-present even though it occurs remotely, reducing fraud and chargeback risks.

Inventive Principle:

Principle #23Feedback

Data Source

PatentUS11250410B2Computer implemented method and a payment terminal for executing card present transaction dynamically from remote environment

Publication Date: 2022.02.15 VISA INTERNATIONAL SERVICE ASSOCIATION

AI summary

The present invention relates to a system and computer implemented method for executing card present transaction dynamically from remote environment. A first payment terminal receives payment details and configuration information of a second payment terminal associated with a merchant located separate from the first payment terminal from an intermediate agent device. A payment channel is initiated by emulating the second payment terminal using the configuration details. The first payment terminal receives transaction related data once user initiates the payment transaction using a physical payment card in the first payment terminal. The transaction related data is communicated to the second payment terminal which sends a transaction message comprising transaction related data to an issuer system for authorization. Thereafter, a result of the payment transaction is received from the second payment terminal via the intermediate agent device.