Wireless Device Offer Presentation Based on Transaction Data
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Solution Overview
Problem
Conventional credit card transactions require physical swiping of magnetic stripe cards, which is less efficient compared to the emerging use of wireless devices for storing and transmitting payment information, and there is a lack of effective methods to offer incentives based on past purchases across different merchant locations.
Innovation Solution
A method and system using wireless devices to store card data, receive transaction line-item data, and determine offers for a second merchant location based on past purchases, allowing for the presentation of offers when the user is near the second merchant location, utilizing technologies like RFID, NFC, and cellular communication.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If magnetic stripe card swiping is used for transactions, then physical card presence is required, but transaction efficiency and convenience are reduced
Solution Approach 1:
The patent stores a copy of the magnetic stripe card data in the memory of a wireless device (mobile phone, PDA, or other portable device). This digital copy can be transmitted wirelessly to replace the physical card, eliminating the need for physical card handling while maintaining transaction functionality.
Solution Approach 2:
The patent replaces the mechanical card swiping process with wireless data transmission. Instead of physically swiping a magnetic stripe through a card reader, the card data is transmitted electronically via wireless communication protocols (RFID, NFC, Bluetooth, or cellular networks), substituting mechanical action with electronic communication.
2Productivity
If wireless devices are used to store and transmit card data, then transaction efficiency is improved, but new security and transmission challenges emerge
Solution Approach 1:
The patent uses an intermediary processing system that receives the wireless transmission of card data, validates it, and then processes the transaction. This intermediary layer (the system described in the patent) ensures secure handling of the transmitted data while maintaining transaction speed, bridging the gap between wireless transmission and secure processing.
3Adaptability or versatility
If purchase history data is collected and analyzed, then personalized offers can be provided, but system complexity and data processing requirements increase
Solution Approach 1:
The patent collects and stores purchase history data in advance, building a database of consumer purchasing patterns before offers are needed. This preliminary data collection and analysis allows the system to quickly generate personalized offers without complex real-time processing, reducing the complexity burden during actual offer generation.
Solution Approach 2:
The patent implements a feedback loop where purchase history data is continuously analyzed, and the results are used to generate personalized offers that are then presented to consumers. This feedback mechanism allows the system to adapt and improve offer personalization over time while managing complexity through iterative refinement rather than complex upfront processing.
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
Enables a more interactive transaction experience by providing personalized offers to consumers based on their purchase history, increasing the opportunity for complementary purchases across different merchant locations without the need for physical card swiping, enhancing the efficiency and convenience of transactions.
Implementation Method 1
RFID tags are microchips, some versions of which may store and encrypt data. Others may receive and transmit data from a processor. An RFID tag acts as a transponder and is capable of transmitting a radio frequency signal when the RFID tag receives a query radio signal from another device.
Implementation Method 2
Some wireless devices may also transmit information wirelessly using other technology such as Bluetooth, Wi-Fi, near field communication (NFC), and cellular technologies such as CDMA, TDMA, LTE, GSM, for example.
Data Source
AI summary
A wireless device is enabled to provide offers. The wireless device receives card data for a financial account card and stores the card data in a memory associated with the wireless device. Responsive to using the card data in a transaction at a first merchant location, the wireless device receives transaction line-item data from a computing system associated with the first merchant location. The wireless device determines merchant information for a second merchant location and determines an offer associated with the second merchant location based on the line-item data and the merchant information for the second merchant. The wireless device presents the offer when the wireless device is near the second merchant location.