Cardless Payment Authorization via SMS Intermediary
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Solution Overview
Problem
Conventional point-of-sale credit card transactions require physical card swiping and signature or PIN verification, which can be inconvenient and limit payment options, especially for online transactions and non-Internet enabled devices.
Innovation Solution
A system enabling cardless payment transactions through text messaging, where users can authorize payments using their mobile phones by responding to approval codes sent via SMS, allowing transactions without physical cards or Internet access.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If physical card swiping is used for transactions, then transaction security is improved through magnetic stripe verification, but ease of operation deteriorates due to the need for physical cards and signatures
Solution Approach 1:
The patent replaces the mechanical card-swiping system with an electronic text-message-based authorization system. Instead of physically swiping a card through a magnetic stripe reader, the system sends authorization requests via text messages to the user's mobile phone, eliminating the need for physical card handling and signature collection while maintaining transaction security through electronic verification.
Solution Approach 2:
The patent introduces text messages as an intermediary between the payment request and authorization. The text message serves as a mediator that carries the authorization request to the user's mobile device and transmits the authorization response back to the payment system, replacing the direct card-swiping and signature verification process.
2Ease of operation
If Internet-enabled devices are required for cardless payments, then ease of operation is improved by eliminating physical cards, but adaptability deteriorates for non-Internet enabled devices
Solution Approach 1:
The patent creates a universal payment authorization system that works across multiple device types and network configurations. By using text messages as the communication medium, the system can operate on any mobile device with SMS capability, whether Internet-enabled or not, making the cardless payment solution universally applicable across diverse device ecosystems.
3Adaptability or versatility
If text messaging is used instead of Internet communication, then adaptability is improved for non-Internet devices, but device complexity increases due to SMS protocol handling
Solution Approach 1:
The patent leverages the existing SMS infrastructure and protocols that are already universally supported by mobile devices. Rather than implementing complex custom communication protocols, the system uses the self-service capability of standard text messaging functions that are built into all mobile phones, eliminating the need for additional complexity in message processing while maintaining broad device compatibility.
Data Source
AI summary
Methods, systems, and apparatus, including computer programs encoded on computer storage media, for conducting cardless payment transactions. One of the methods includes receiving, in association with a payment transaction, a message from a customer device that includes data from an optical scan of a code displayed at a merchant point-of-sale. A request to authorize a payment for the payment transaction is received from a merchant computer. Customer and merchant accounts are identified and payment data previously associated with the customer account is accessed. The payment is authorized using the payment data, and notification of authorization is sent to the merchant device or customer device.