Encrypted RFID Smart Card for Offline Rewards Tracking

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Solution Overview

Problem

Payment cards lack the ability to integrate additional functionalities beyond payment, and existing reward programs fail to dynamically respond to customer needs and demands, leading to inefficiencies in customer engagement and data tracking.

Innovation Solution

A smart card that functions as both a payment card and a customer behavior tracker, storing data on customer visits and rewards, using RFID technology and cryptographic security to ensure data integrity and compatibility across multiple merchants.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Adaptability or versatility

If a standalone reward card or device is offered to each customer, then customer behavior tracking capability is improved, but customer convenience and card carrying burden deteriorate

Engineering Contradiction:
Improvecustomer behavior tracking capabilityVSAvoidcustomer convenience
Core Design Contradiction:
Adaptability or versatilityVSEase of operation

Solution Approach 1:

The patent combines payment card functionality with reward tracking functionality into a single unified card system. The payment card serves dual purposes: processing payments and tracking customer behavior for rewards programs, eliminating the need for separate reward cards or devices.

Inventive Principle:
Principle #5Merging (Combining)

Solution Approach 2:

The payment card is designed to perform multiple functions simultaneously: it serves as a payment instrument, a customer identification device, and a behavioral tracking tool. This multi-functionality allows the card to accumulate rewards data across various transactions and locations without requiring additional specialized devices.

Inventive Principle:
Principle #6Universality (Multi-functionality)

2Adaptability or versatility

If additional functions are added to payment cards, then customer engagement and behavior tracking are improved, but card security and safety deteriorate

Engineering Contradiction:
Improvecustomer engagement capabilityVSAvoidcard security
Core Design Contradiction:
Adaptability or versatilityVSReliability

Solution Approach 1:

The card system segments data storage and processing into distinct secure zones. Sensitive payment information is separated from behavioral tracking data, with each type of data protected by appropriate security measures. This segmentation allows additional functionality to be added without compromising the security of core payment functions.

Inventive Principle:
Principle #1Segmentation

Solution Approach 2:

The system introduces secure intermediaries including encryption protocols, digital signatures, and trusted third-party services to mediate between the additional tracking functions and the core payment security. These intermediaries ensure that behavioral data collection and processing do not compromise payment card security.

Inventive Principle:
Principle #24Intermediary (Mediator)

3Adaptability or versatility

If multiple separate cards are used for payment and rewards, then functional specialization is improved, but device complexity and portability deteriorate

Engineering Contradiction:
Improvefunctional specializationVSAvoidnumber of cards to carry
Core Design Contradiction:
Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The system merges previously separate payment card and reward card functionalities into a single integrated card. This consolidation maintains the functional benefits of specialization while eliminating the need for customers to carry multiple separate cards.

Inventive Principle:
Principle #5Merging (Combining)

Solution Approach 2:

The unified card is designed to universally handle both payment transactions and reward program participation. The card can be used across different merchants and for different purposes (payment, tracking, rewards redemption) without requiring card-specific applications or systems.

Inventive Principle:
Principle #6Universality (Multi-functionality)

4Adaptability or versatility

If dynamic reward values are implemented, then responsiveness to customer needs is improved, but data management complexity increases

Engineering Contradiction:
Improvedynamic response to customer needsVSAvoiddata management complexity
Core Design Contradiction:
Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The reward system implements dynamic reward values that can be adjusted in real-time based on customer behavior patterns, transaction history, and business objectives. The card and associated system can update reward points, discounts, and incentives dynamically without requiring physical card reissuance or complex manual data management.

Inventive Principle:
Principle #15Dynamics

Solution Approach 2:

The system incorporates feedback mechanisms that continuously monitor customer behavior and automatically adjust reward values accordingly. Transaction data is analyzed in real-time, and reward parameters are dynamically modified based on this feedback, enabling responsive customer engagement without manual intervention.

Inventive Principle:
Principle #23Feedback

Applied Scientific Principles

This section explains which scientific principles are used to turn an abstract innovation direction into a practical engineering solution.

Function Achieved in This Case

Enhances customer engagement by providing a unified rewards program that is convenient and secure, allowing merchants to track customer behavior without network integration, and incentivizes customers to carry a single card for both payment and rewards.

Implementation Method 1

The RFID tag can include an antenna configured to receive electromagnetic energy from the terminal and power up the smart card without power source on the smart card

Methodology Applied
Scientific EffectElectromagnetic induction: Electromagnetic Induction

Data Source

PatentEP4647962A2System and apparatus for encrypted data collection using RFID cards
Publication Date: 2025.11.12 CAPITAL ONE SERVICES LLC
  • EP4647962A2 patent drawingFigure 1A~1B
  • EP4647962A2 patent drawingFigure 2
  • EP4647962A2 patent drawingFigure 3

AI summary

A secure smart card is described. The smart card can include a processor, a memory and a transceiver. The smart card can communicate with various terminals and store a digital signature and other information on the card. Another terminal can validate the information stored on the smart card using the digital signature. In certain embodiments, the terminal can also validate the information by using a blockchain. The advanced design of the smart card obviates the need for a network connection.