Time-Of-Transaction Foreign Currency Conversion

• US 20100145744A1
• Filed: 02/08/2010
• Published: 06/10/2010
• Est. Priority Date: 11/07/2002
• Status: Active Grant

• Current Assignee: Planet Payment Incorporated (Fintrax Group Holdings Ltd.)
• Original Assignee: Planet Payment Incorporated (Fintrax Group Holdings Ltd.)
• Inventors: McCormack, Michael H., Noblett, Paul, Beck, Philip D.
• Granted Patent: US 8,626,660 B2
• Time in Patent Office: Days
• US Class Current: 705/5
• CPC Class Codes: G06Q 10/02 Reservations, e.g. for tickets, services or events
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/204 comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit
• CPC Class Codes: G06Q 20/381 Currency conversion
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 20/4037 Remote solvency checks
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/12 Accounting
• CPC Class Codes: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02

Abstract

Providing a time-of-transaction currency conversion from a merchant'"'"'s local currency to a cardholder'"'"'s credit card currency uses a conversion rate developed by reference to the particular merchant, acquirer, card association and issuer. After a merchant has generated an authorization request in the merchant'"'"'s currency for a transaction by a cardholder in a different currency, the transaction amount in the authorization is converted from the merchant'"'"'s currency to the currency of the cardholder'"'"'s issuing currency, and optionally modified to include additional fees. The converted authorization request is then transmitted to the appropriate card association and then to the issuing bank for authorization, with a response returned to the merchant. The cardholder sees and approves the transaction in the cardholder'"'"'s currency, and in an amount identical to the amount for which he will be billed.

Claims

1. A method for processing a credit card transaction involving a currency conversion, the method comprising:

receiving an authorization request for a credit card transaction including a transaction amount in a first currency;

converting the transaction amount to a second currency;

transmitting the authorization request including the converted transaction amount to an issuing bank;

receiving an authorization response approving the transaction;

printing a transaction slip including the converted transaction amount, the transaction slip including a signature block for receiving a signature of the cardholder declining to have the transaction processed with the converted transaction amount.

2. A method for processing credit card transactions, each transaction occurring between a merchant and a cardholder using a credit card of the cardholder and having a transaction amount, each merchant associated with a local currency, each credit card having an associated issuing currency, the method comprising:

receiving a plurality of transactions from a plurality of merchants;

for each transaction;

determining a base rate for converting the transaction from an amount denominated in the local currency to an amount denominated in the issuing currency;

determining a markup to apply to the base rate;

converting the transaction amount from the amount denominated in the local currency to an amount denominated in the issuing currency according to the base rate and the markup rate;

communicating to the merchant from which the transaction was received the amount denominated in the issuing currency.

3. A method for processing credit card transactions, the transaction occurring between a merchant and a plurality of cardholders, each cardholder using a credit card having an associated issuing currency, the merchant having a merchant ID (MID) and the merchant associated with a local currency, the method comprising:

defining a foreign merchant ID (FMID) for the merchant for each issuing currency supported by the merchant;

determining a mapping from the MID to each FMID of the merchant;

receiving from the merchant a plurality of credit transaction records to be processed, each transaction record including the MID;

for each received transaction record, replacing the MID with the FMID for the issuing currency of the credit card used in the transaction to create a modified transaction record;

grouping the modified transaction records according to FMID; and

transmitting the grouped modified transaction records for clearance.

4. The method of claim 3 further comprising:

receiving a settlement report, the settlement report including settlement results of the grouped modified transaction records transmitted for clearance;

determining a mapping from each FMID of the merchant to the MID of the merchant;

transmitting a reconciliation report to the merchant identified by the MID.

5. A system for processing credit card transactions, each transaction occurring between a merchant and a cardholder, the cardholder having a credit card with an associated issuing currency, each merchant having an associated local currency, the system comprising:

a merchant point of sale system, for facilitating a transaction between a merchant and a cardholder using a credit card, the transaction denominated in the local currency associated with the merchant, and for disclosing to the cardholder at the time of the transaction a converted transaction amount in the issuing currency associated with the credit card, and the transaction amount in the local currency; and

a payment processor, communicatively coupled to the merchant point of sale system, the payment processor including payment processing logic and a plurality of data files for determining at the time of the transaction a currency conversion from the local currency to the issuing currency by selecting an applicable conversion rate from a plurality of conversion rates between the local currency and the issuing currency, and for communicating the selected conversion rate to the merchant point of sale system.

6. The system of claim 5 wherein a communication from the merchant point of sale system to the payment processor identifies the local currency.

7. The system of claim 5 wherein the payment processor includes a settlement file, the settlement file indicating for each transaction whether a cardholder completed the transaction in the local currency or the issuing currency.

8. The system of claim 7 wherein the settlement file additionally includes, for each transaction, a time of the transaction, the local currency denomination, the issuing currency denomination, the conversion rate and a currency code.

9. The system of claim 5 wherein the disclosure to the cardholder of both the transaction amount in the local currency and the transaction amount in the issuing currency is provided on a credit card receipt, and the credit card receipt includes a signature line for authorizing the conversion.

10. The system of claim 9 wherein the credit card receipt further includes:

a location for entry of a gratuity amount; and

a disclosure that the gratuity amount will be converted using time of transaction currency conversion.

11. The system of claim 10 wherein the credit card receipt further includes a signature line for opting out of the time of transaction currency conversion.

12. The system of claim 5 wherein the converted transaction amount disclosed to the cardholder is a projected amount.

13. The system of claim 12 wherein the merchant provides lodging to the cardholder, and the projected amount is disclosed upon arrival of the cardholder.

14. The system of claim 12 wherein the merchant provides lodging to the cardholder, and an actual conversion amount is provided to the cardholder upon the departure of the cardholder.

15. The system of claim 14 wherein the merchant provides lodging to the cardholder for a plurality of rate periods, and the actual conversion amount includes a conversion amount for each of the plurality of rate periods.

16. The system of claim 15 wherein the rate period is a night.

17. The system of claim 5 wherein the plurality of data files includes an acquirer identification table for identifying merchant acquirers for which transactions will be converted by the payment processor.

18. The system of claim 5 wherein the plurality of data files includes a base conversion rate table for identifying a base conversion rate between the local currency and the issuing currency.

19. The system of claim 18 wherein the base conversion rate is further specified according to a card association.

20. The system of claim 18 wherein the base conversion rate is further specified according to an acquirer.

21. The system of claim 18 wherein the base conversion rate is further specified according to a time interval.

22. The system of claim 18 wherein the base conversion rate is further specified according to a merchant.

23. The system of claim 5 wherein the plurality of data files includes a merchant ID (MID) cross reference table for mapping a merchant MID to a foreign MID (FMID) for each issuing currency supported by the merchant.

24. The system of claim 23 wherein the MID cross reference table further includes an indication of a markup method to be used for converting from each merchant base currency to each FMID clearing currency.

25. The system of claim 5 wherein the plurality of data files includes a markup method table.

26. The system of claim 25 wherein the markup method table includes an indication of whether the markup is positive.

27. The system of claim 26 wherein the markup method table further includes a markup value.

28. The system of claim 25 wherein the markup method table includes an indication of whether the markup is negative.

29. The system of claim 28 wherein the markup method table further includes a markup value.

30. The system of claim 5 wherein the plurality of data files includes a card association fee table for indicating a markup applied to each of a plurality of credit cards.

31. The system of claim 30 wherein the card association fee table indicates a markup applied by an issuing bank.

32. The system of claim 30 wherein the card association fee table indicates a markup applied by a card association.

33. A method for processing credit card transactions, each transaction occurring between a merchant and a cardholder, each cardholder using a credit card having an issuing currency and associated with a card association, and each merchant having an associated local currency, the method comprising:

receiving an authorization request from a merchant, the authorization request including an identifier associated with the credit card used for the transaction being authorized, and a transaction amount in the local currency of the merchant;

converting the transaction amount in the local currency to a modified transaction amount in the issuing currency using a base rate between the two currencies and at least one of a plurality of markup rates between the two currencies;

forwarding the authorization request including the modified transaction amount to an issuing bank;

receiving an authorization for the transaction from the issuing bank;

transmitting the authorization to the merchant; and

receiving a reconciliation report from the card association, the reconciliation report including information describing the transaction.

34. The method of claim 33 wherein the reconciliation report includes information describing, for each transaction, an interchange fee and a foreign exchange gain.

35. The method of claim 34 wherein the foreign exchange game is negative.