RFID POS Terminal Change Value Transfer
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Solution Overview
Problem
The existing systems for handling change in cash transactions, particularly for amounts less than $5, are inefficient as they often result in customers losing or not wanting coins, and businesses face the hassle of restocking various denominations, while current technologies like coin dispensers and value cards do not effectively address the issue of dispensing change in a convenient manner.
Innovation Solution
A system and method utilizing an RFID device or card reader/writer connected to a POS terminal or cash register to add value to a consumer card or account instead of dispensing coins, allowing users to accumulate and redeem this value at participating stores, with options for adding to a credit card or award points, and using a barcode for simpler transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If coin change is dispensed to customers, then exact change can be provided, but customers lose or do not care about the coins and businesses must restock numerous denominations
Solution Approach 1:
The patent replaces the mechanical coin dispensing system with an electronic value transfer system. Instead of physically dispensing coins through mechanical chutes and solenoids, the system uses electronic communication between the POS terminal and a remote server to transfer value to a customer's account, eliminating the need for physical coin handling and restocking operations.
Solution Approach 2:
The patent introduces a remote server as an intermediary between the POS terminal and the customer's value account. The server receives requests from the POS terminal, processes the value transfer, and updates the customer's account balance, thereby mediating the transaction without requiring physical coin dispensing mechanisms at the point of sale.
2Extent of automation
If coin dispensers are used at POS terminals, then change can be provided automatically, but the devices are complex and require multiple coin denominations to be stocked
Solution Approach 1:
The patent extracts the value storage and transfer functionality from the POS terminal itself and places it in a remote server system. The POS terminal only needs to communicate the transaction amount and customer identifier, while the complex value management infrastructure resides remotely, simplifying the point-of-sale device while maintaining automated change provision capabilities.
3Reliability
If value is stored on cards with magnetic strips or micro-controllers, then value can be retained securely, but the cards may be lost or stolen without adequate protection
Solution Approach 1:
The patent changes the security parameters by implementing encrypted value storage on the card with periodic verification requirements. The system uses encryption algorithms to protect the stored value and requires authentication or verification transactions to access or transfer the value, thereby enhancing security against theft or loss while maintaining reliable value storage.
Data Source
AI summary
A system and method for receiving a value on or associated with a consumer card in lieu of actually receiving coin change. In particular embodiments, and RFID device or other card reader/writer device is connected either in place of, or parallel to, an electric coin dispenser on a Point-of-Sale (POS) terminal or cash register. Instead of receiving an odd amount of coin change after a purchase, the RFID device can augment a total value either stored on the card itself or in an account associated with the card. Alternatively a clerk can cause value to be added to a card equal to the amount that would have given as coin change. A consumer can redeem value up to the amount on the value card at participating stores as if it were a gift card. In one embodiment, a customer ID, total value and optionally a password or PIN can be stored on a smartcard usually in encrypted form. Alternatively, the card or telephone can simply present a barcode which relates to an account. The present invention can either be implemented to work with a particular merchant or merchant chain, or it can be implemented to work across a large number of participating merchants. The latter case usually requires a single remote value account accessible by all the participating merchants.