Reusable Installment Authorization for Merchant POS Payment Access
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Existing point of sale systems face challenges in facilitating payment for goods or services when customers lack sufficient funds, leading to inefficiencies such as merchants having to store items for extended periods and customers not having access until full payment is made, with lay-by agreements incurring costs and delays.
Innovation Solution
A computer-implemented method and system that enables payment through multiple future installments, involving an installment payment server, mobile device, and merchant POS system, using optical machine-readable representations like barcodes or QR codes to authorize and validate future payments, ensuring goods can be released to customers while payments are made over time.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If a lay-by agreement is made to allow customers to purchase goods with insufficient funds, then customers can access goods before full payment, but merchants incur storage costs and interest costs on inventory
Solution Approach 1:
The patent segments the payment process into multiple future instalments rather than requiring full payment upfront. The system divides the total payment amount into scheduled portions, allowing customers to receive goods immediately while paying over time, thereby eliminating the need for traditional lay-by storage arrangements.
Solution Approach 2:
The patent introduces an instalment payment server as an intermediary between the customer and merchant. This server manages the authorization data, validates future payments, and coordinates the release of goods, eliminating the need for merchants to physically store items while customers pay incrementally.
2Loss of time
If merchants store items for lay-by customers, then customers can make periodic payments, but the process involves warehousing costs and extended storage time
Solution Approach 1:
The patent replaces the physical mechanical system of storing goods in warehouses with a digital authorization system. Instead of physically holding items, the merchant POS system stores and validates optical machine-readable authorization data that proves the customer's right to receive goods, eliminating warehousing requirements entirely.
Solution Approach 2:
The patent creates optical machine-readable copies (barcodes or QR codes) of the authorization data that can be scanned and validated by the POS system. These digital copies replace the need for physical item storage, as the scanned authorization serves as proof of payment arrangement and customer entitlement.
3Reliability
If traditional payment systems are used, then full payment is required upfront, but customers cannot access goods when funds are insufficient
Solution Approach 1:
The patent performs preliminary actions by generating and storing authorization data before the actual purchase transaction. The instalment payment server creates validated authorization records in advance, which are then scanned at the POS system to immediately approve the transaction, enabling customers with insufficient funds to access goods while maintaining payment security through pre-validated installment arrangements.
Data Source
AI summary
A computer-implemented method comprising, in an example, receiving a request to set up a payment for an amount using multiple future installments; analyzing data associated with a user to generate authorization data indicative of an authorization of the multiple future installments; sending the authorization data to a mobile device of the user, wherein the authorization data is presentable to any merchant associated with the installment payment service; receiving, from a merchant device, data associated with a transaction between the user and the merchant that identifies a total amount of at least one good or service and an indication of the authorization data; determining that the total amount is less than the amount requested; and initiating the installments. The authorization data may remain valid for use with any merchant associated with the installment payment service for a designated period of time or until the amount requested is exceeded.