Unified Payment Code Generation for Multi-Tender Transactions
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Solution Overview
Problem
Existing contactless payment systems using mobile devices face challenges such as high infrastructure costs, user complexity, limited adoption due to enrollment and authentication issues, and the inability to utilize multiple forms of tender for transactions.
Innovation Solution
A method and system that allows mobile devices to transmit identifiers and transaction requests to a payment authority system, which generates a unified approval code applying multiple forms of tender, such as credit cards, gift cards, and coupons, to facilitate transactions by integrating user and merchant preferences.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If contactless payment systems using mobile devices are implemented, then payment convenience is improved, but infrastructure costs and device complexity increase
Solution Approach 1:
The patent introduces a payment authority system as an intermediary between the mobile device and the point of sale terminal. This mediator handles the complex authentication and transaction processing, allowing the mobile device to remain simple while enabling secure contactless payments through RFID/NFC technology.
Solution Approach 2:
The system implements feedback mechanisms where the payment authority system communicates authentication results and transaction status back to the mobile device and point of sale terminal. This feedback loop ensures proper authorization while maintaining system simplicity at the user interface level.
2Adaptability or versatility
If multiple forms of tender are applied to a transaction, then payment flexibility is improved, but transaction processing complexity increases
Solution Approach 1:
The patent applies preliminary action by pre-authorizing transactions through the payment authority system before the actual point of sale transaction. The system determines eligible forms of tender and applies them in advance, simplifying the actual transaction processing while maintaining flexibility in payment options.
Solution Approach 2:
The transaction processing is segmented into distinct phases: authorization request, tender selection, approval code generation, and final transaction completion. This segmentation allows complex multi-tender processing to be broken down into manageable steps handled by different system components.
3Reliability
If user authentication is implemented, then transaction security is improved, but enrollment time and user complexity increase
Solution Approach 1:
Authentication and enrollment are performed in advance through the payment authority system before actual transactions occur. Users complete security setup once, and subsequent transactions automatically utilize the pre-established authentication credentials, minimizing time loss during actual payments.
Solution Approach 2:
The system enables self-service authentication where users can enroll and manage their own payment credentials through the mobile device interface. This automated self-enrollment process reduces the time and complexity compared to manual enrollment while maintaining strong security through the payment authority system.
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
This solution simplifies transactions by reducing infrastructure costs, enhancing user experience through streamlined enrollment, and enabling the use of multiple payment forms, thereby increasing adoption and efficiency.
Implementation Method 1
cell phones may be equipped with a short-range Radio Frequency Identification (RFID) chip or other near-field communication devices
Implementation Method 2
cell phones may be equipped with a short-range Radio Frequency Identification (RFID) chip or other near-field communication devices
Data Source
AI summary
Methods, systems, and devices are described for providing mobile device transaction approvals utilizing multiple forms of tender. An identifier of a mobile device and a request for a transaction authorization may be transmitted from a mobile device and received at a payment authority system. The payment authority system may generate a payment code for transmission to the mobile device. The payment code may be provided to a point of sale (POS) system. The POS system may transmit a transaction amount, an identifier of a merchant, and the payment code to the payment authority system. A number of forms of tender may be applied to the transaction amount. The payment authority system may generate a unified approval code applying the multiple forms of tender to the transaction. The unified approval code may be transmitted to the POS system and applied to a transaction.