Virtual Cash System Using Wireless Display Barcodes
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Solution Overview
Problem
Current m-commerce solutions lack the ability to effectively handle or replace cash and card transactions in mobile commerce environments, requiring an expansion of existing technologies to improve security, accuracy, and efficiency in financial transactions.
Innovation Solution
A wireless device-based system that utilizes a bar code or other machine-readable indicia to represent virtual cash, allowing for direct cash payments without the need for physical currency, leveraging existing infrastructure and minimizing the authorization stage in credit/debit card transactions by using a preestablished cash balance and rolling codes for security.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If physical cash is used for transactions, then payment flexibility is maintained, but security risks and handling complexity increase
Solution Approach 1:
The patent creates a virtual copy of cash in the form of electronic account balances and digital representations. Instead of using physical cash, the system uses electronic records stored in databases that replicate the functionality of cash without the physical handling risks. This allows transactions to be conducted using digital copies of monetary value, eliminating security risks associated with physical cash while maintaining payment flexibility.
Solution Approach 2:
The patent replaces the mechanical system of physical cash handling with an electronic information-based system. Transactions are processed through electronic data transmission and database operations rather than physical exchange of currency. This substitution eliminates the need for physical cash handling, reducing security risks and operational complexity while maintaining transaction functionality.
2Productivity
If card transaction infrastructure is expanded to handle virtual cash, then transaction efficiency improves, but system complexity increases
Solution Approach 1:
The patent makes the existing card transaction infrastructure universal by enabling it to handle multiple types of transactions including traditional card payments, virtual cash transfers, and electronic fund movements through a single integrated system. The wireless device and processing center can accommodate various transaction types without requiring separate dedicated systems, thereby improving efficiency while managing complexity through multi-functionality.
Solution Approach 2:
The patent introduces a processing center as an intermediary between wireless devices and financial institutions. This intermediary manages the complexity of coordinating between multiple components (wireless devices, POS terminals, banks, and databases) by centralizing authorization, transaction routing, and balance management functions. The intermediary simplifies the overall system architecture by providing a single point of coordination rather than requiring direct complex interactions between all components.
3Loss of time
If authorization stages are minimized in transactions, then transaction speed increases, but security verification may be compromised
Solution Approach 1:
The patent performs security verification in advance by requiring users to register with the system and have their accounts pre-authorized and funded before actual transactions occur. Account balances are pre-established and verified, and security credentials are pre-configured. This preliminary action ensures that when transactions occur, minimal verification is needed at the point of sale, reducing processing time while maintaining security through prior verification of funds and authorization.
Solution Approach 2:
The patent implements continuous feedback mechanisms where the processing center monitors account balances, transaction histories, and authorization statuses in real-time. The system provides immediate feedback to wireless devices and POS terminals about transaction approval status, balance sufficiency, and authorization validity. This feedback loop enables rapid transaction processing with adequate security verification by continuously monitoring and responding to transaction conditions without requiring lengthy pre-authorization processes for each transaction.
Data Source
AI summary
A virtual cash system, method, and apparatus for establishing account records containing a record of money amounts associated with a wireless device and a security code comprising a code portion to verify a deposit of money. Cash transfers between account records may be subject to restrictions associated with the cash amounts. Cash amounts can be spent from the account records directly from the wireless device via information derived from the wireless device via a bar code on the display, a short range radio signal, a light beam, or the like. A different security code is generated for each account transaction for verification.