Methods and systems for processing an electronic payment

Patent metadata

Field	Value
Publication number	US-2016239833-A1
Application number	US-201615042717-A
Country	US
Kind code	A1
Filing date	Feb 12, 2016
Priority date	Feb 17, 2015
Publication date	Aug 18, 2016
Grant date	—

Abstract

A method is provided for processing an electronic payment. The method comprises (a) receiving, by a server, a first electronic request for a first token from a cardholder's device, the server being in communication with a database storing payment credentials for one or more payment cards associated with the cardholder; (b) generating the first token using an identity of the cardholder's device and transmitting the first token to the device; (c) receiving a second electronic request for processing the transaction from a merchant terminal, said second request comprising the first token and a merchant terminal identifier; (d) generating a second token using the first token and the merchant terminal identifier and transmitting the second token to the merchant terminal; (e) receiving a third token and a transaction authorization request from a merchant acquiring bank; (f) validating the third token using the second token; and (g) upon the validation operation (f) being successful, submitting the transaction authorization request to a card issuing bank.

First claim

1 . A method for processing an electronic payment comprising the operations of:
(a) receiving, by a server, a first electronic request for a first token from a cardholder's device, the server being in communication with a database storing payment credentials for one or more payment cards associated with the cardholder; (b) the server generating the first token using an identity of the cardholder's device and transmitting the first token to the cardholder's device; (c) receiving, by the server, a second electronic request for processing the transaction from a merchant terminal, said second request comprising the first token and a merchant terminal identifier; (d) the server generating a second token using the first token and the merchant terminal identifier and transmitting the second token to the merchant terminal; (e) receiving, by the server, a third token and a transaction authorization request from a merchant acquiring bank; (f) the server validating the third token using the second token; and (g) upon the validation operation (f) being successful, submitting, via the server, the transaction authorization request to a card issuing bank.

2 . A method according to claim 1 , wherein the database further stores identity data of the cardholder for a payment system at which the cardholder has previously registered, the method further comprising an operation of verifying an identity of the cardholder prior to operation (b) using the identity data.

3 . A method according to claim 1 , wherein operation (b) comprises generating the first token further using payment credentials of a chosen payment card associated with the cardholder.

4 . A method according to claim 1 , wherein operation (b) comprises generating the first token further using a timestamp of the first electronic request.

5 . A method according to claim 1 , wherein operation (d) comprises generating the second token further using a timestamp of the second electronic request.

6 . A method according to claim 1 , wherein operation (g) comprises submitting the payment credentials of the chosen card to the card issuing bank.

7 . A method according to claim 1 , wherein operation (f) comprises extracting from the third token the payment credentials of the chosen card using a detokenization system.

8 . A method according to claim 1 further comprising, prior to operation (d), an operation of the server receiving a first timestamp associated with the first electronic request and a second timestamp associated with the second electronic request, determining if a time difference between the first and second timestamp meets a pre-defined criterion, and proceeding with operation (d) only if the criterion is met.

9 . A system for processing an electronic payment comprising:
a server configured to be in communication with a cardholder's device, a merchant terminal and a merchant acquiring bank, said server having a computer processor and a data storage device, the data storage device storing non-transitory instructions operative by the processor to cause the processor to perform the operations of:
(a) receiving a first electronic request for a first token from a cardholder's device, the server being in communication with a database storing payment credentials for one or more payment cards associated with the cardholder;
(b) generating the first token using an identity of the cardholder's device and transmitting the first token to the cardholder's device;
(c) receiving a second electronic request for processing the transaction from a merchant terminal, said second request comprising the first token and a merchant terminal identifier;
(d) generating a second token using the first token and the merchant terminal identifier and transmitting the second token to the merchant terminal;
(e) receiving a third token and a transaction authorization request from a merchant acquiring bank;
(f) validating the third token using the and the second token; and
(g) upon the validation operation (f) being successful, submitting the transaction authorization request to a card issuing bank.

10 . A system according to claim 9 , wherein the database further contains identity data of the cardholder for a payment system at which the cardholder has previously registered, the method further comprising an operation of verifying an identity of the cardholder prior to operation (b) using the identity data.

11 . A system according to claim 9 , wherein the data storage device further stores non-transitory instructions operative by the processor to cause the processor to generate the first token further using payment credentials of a chosen payment card associated with the cardholder.

12 . A system according to claim 9 , wherein the data storage device further stores non-transitory instructions operative by the processor to cause the processor to generate the first token further using a timestamp of the first electronic request.

13 . A system according to claim 9 , wherein the data storage device further stores non-transitory instructions operative by the processor to cause the processor to generate the second token further using a timestamp of the second electronic request.

14 . A system according to claim 9 , wherein the data storage device further stores non-transitory instructions operative by the processor to cause the processor to submit the payment credentials of the chosen card to the card issuing bank.

15 . A system according to claim 9 , wherein the data storage device further stores non-transitory instructions operative by the processor to cause the processor to extract from the third token to cardholder's the payments credentials of the chosen card using a detokenization system.

16 . A system according to claim 9 , wherein the data storage device further stores non-transitory instructions operative by the processor to cause the processor to, prior to operation (d), receive a first timestamp associated with the first electronic request and a second timestamp associated with the second electronic request, determine if a time difference between the first and second timestamp meets a pre-defined criterion, and proceed with operation (d) only if the criterion is met.

17 . A method for processing an electronic transaction between a cardholder and a merchant carried out over a payment network, comprising the operations of:
(a) receiving, by a merchant terminal, a first token from a cardholder's device, said first token being associated with an identity of the cardholder's device, (b) the merchant terminal transmitting an electronic request for processing the payment to a server; said electronic request comprising the first token and a merchant terminal identifier; (c) the merchant terminal receiving, via the server, a second token; said second token being generated using the first token and the merchant terminal identifier; (d) the merchant terminal transmitting the second token to a merchant acquiring bank, thereby causing the merchant acquiring bank to communicate with a card issuing bank to effect the transaction.

18 . A method according to claim 17 , wherein operation (d) comprises encrypting the second token and transmitting the encrypted token to the merchant acquiring bank.

19 . A merchant terminal for processing an electronic transaction comprising:
a computer processor and a data storage device, the data storage device storing non-transitory instructions operative by the processor to cause the processor to perform the operations of:
(a) receive a first token from a cardholder's d

Assignees

• Mastercard Asia Pacific Pte Ltd

Inventors

• Venugopalan Vijin
• Gilbey Benjamin Charles
• Sharma Prashant

Classifications

• G06Q20/3674 Primary

  involving authentication · CPC title

• G06Q20/382

  insuring higher security of transaction · CPC title

• G06Q20/38215

  Use of certificates or encrypted proofs of transaction rights · CPC title

• G06Q20/385

  using an alias or single-use codes · CPC title

• G06Q20/3274

  using a pictured code, e.g. barcode or QR-code, being displayed on the M-device · CPC title