Systems and methods for payment for delivery services
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Solution Overview
Problem
Conventional collect-on-delivery (COD) transactions are labor-intensive and prone to errors due to the need for manual payment processing, especially when the consumer is not present at the time of delivery, leading to potential cash handling issues and increased costs associated with packaging and shipping.
Innovation Solution
A computer-implemented method and device that reads a machine-readable transaction code, transmits transaction details to a consumer computing device, and processes payments through an interchange network, enabling electronic transactions upon delivery without the consumer's physical presence, using a payment-on-delivery device equipped with a camera, motion sensor, and wireless communication modules.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If manual payment collection is used for COD transactions, then the consumer can pay upon delivery, but the process becomes labor-intensive and error-prone
Solution Approach 1:
The patent replaces the manual mechanical payment collection process with an automated electronic system. The payment-on-delivery device automatically captures the transaction code, communicates with the consumer's computing device, processes payment electronically through an interchange network, and completes the transaction without manual intervention, thereby eliminating labor-intensive operations and human errors.
2Reliability
If manual payment processing is required, then payment can be collected at delivery, but the consumer must be present which causes delivery delays
Solution Approach 1:
The system performs preliminary actions by pre-generating and attaching the machine-readable transaction code to the package before delivery. When the package arrives, the payment-on-delivery device automatically reads this pre-prepared code and initiates the electronic payment process, eliminating the need for the consumer to be physically present to provide payment information, thus maintaining payment assurance while eliminating delivery delays.
3Reliability
If cash handling is used for COD transactions, then payment can be collected, but cash security and handling costs increase
Solution Approach 1:
The patent substitutes the physical cash handling system with an electronic payment system. The payment-on-delivery device communicates with the consumer's computing device to transfer payment information electronically through an interchange network, completely eliminating the need for physical cash handling, thereby reducing security risks and handling costs while maintaining reliable payment collection.
4Productivity
If electronic payment processing is automated, then manual labor is reduced, but the system complexity increases
Solution Approach 1:
The payment-on-delivery device is designed as a multi-functional universal device that can read various machine-readable codes, communicate with different types of consumer computing devices, interface with interchange networks, and complete payment transactions. By consolidating these multiple functions into a single device, the system achieves automated high-efficiency processing without proportionally increasing overall system complexity.
Data Source
AI summary
An apparatus and computer-implemented electronic transaction method includes the operation of reading, via a payment-on-delivery device, a machine-readable transaction code in which transaction details of a collect-on-delivery transaction are encoded. A notification is transmitted to a consumer computing device. In addition, the transaction details are transmitted to the consumer computing device. The apparatus transmits payments details for funding the collect-on-delivery transaction to an interchange network for processing the collect-on-delivery transaction. The apparatus receives a payment authorization response message from the interchange network indicating completion of the collect-on-delivery transaction.