PAYMENT SYSTEM

• US 20120030066A1
• Filed: 07/06/2011
• Published: 02/02/2012
• Est. Priority Date: 01/06/2009
• Status: Active Grant

• Current Assignee: Visa Europe Limited (Visa, Inc.)
• Original Assignee: Visa Europe Limited (Visa, Inc.)
• Inventors: Stringfellow, Westley, Winfield-Chislett, Peter, Lesuisse, Itamar, Tamblyn, Raymond, Casabonne, Verónica
• Granted Patent: US 8,942,997 B2
• Time in Patent Office: Days
• US Class Current: 705/26.41
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/027 involving a payment switch or gateway
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/0855 involving a third party
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping 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 20/227 characterised in that multiple accounts are available, e.g. to the payer
• CPC Class Codes: G06Q 20/34 using cards, e.g. integrated circuit [IC] cards or magnetic cards
• 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 30/0613 Third-party assisted
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

Embodiments of the invention provide a method of processing payment authorization requests for payment transactions to be conducted via a data communications network on behalf of online merchants, the payment authorization requests are conducted as a result of orders by financial instrument holders via a plurality of different online merchant systems. Each of the online merchants has an online merchant identity. The method is conducted by a trusted central intermediary system which is arranged to transmit payment authorization requests to each of a plurality of different online merchant Internet Payment Service Provider (IPSP) systems. Each merchant IPSP system is arranged to transmit payment authorization requests to at least one of a plurality of acquiring bank payment processor systems, and each of said plurality of acquiring bank payment processor systems is responsible for processing payment authorizations for at least one of said acquiring banks. Embodiments of the invention enable a user to select a payment method on a per transaction basis, whilst removing the requirement for the user to provide payment details to individual online merchant systems or to their merchant IPSP systems. Thus, providing that online merchants, or their merchant IPSPs, subscribe to a service arranged to perform the method, users only have to submit their respective payment details, preferably only once, to a separate, trusted entity.

Claims

1. A method of processing payment authorization requests for payment transactions to be conducted via a data communications network on behalf of online merchants, the payment authorization requests being conducted as a result of orders by financial instrument holders via a plurality of different online merchant systems, each of said online merchants having an online merchant identity, and each of said online merchants being associated with one of a plurality of acquiring banks,

wherein the method is conducted by a trusted central intermediary system which is arranged to transmit payment authorization requests to each of a plurality of online merchant Internet Payment Service Provider (IPSP) systems,

each of said merchant IPSP systems being arranged to transmit payment authorization requests to at least one of a plurality of acquiring bank payment processor systems, each of said plurality of acquiring bank payment processor systems being responsible for processing payment authorizations for at least one of said acquiring banks, and the method comprising:

receiving from a first online merchant system, responsible for originating payment authorization requests for a first online merchant, a payment authorization request relating to authorization of a payment transaction, said received payment authorization request being initiated as a result of a financial instrument holder conducting an order via the first online merchant system;

in response to receiving said request;

a) generating a payment authorization request comprising transaction data including;

i) a financial instrument identity to be used in the payment transaction by the financial instrument holder; and

ii) an online merchant identity, associated with the first online merchant, as the payment transaction beneficiary; and

iii) one or more transaction details including a payment amount; and

b) retrieving transmission data to enable the transmission of payment authorization request data to a selected merchant IPSP system associated with the first online merchant; and

c) on the basis of the retrieved transmission data, transmitting said generated payment authorization request to the selected merchant IPSP system, wherefrom a further payment authorization request may be generated and transmitted to an acquiring bank payment processor system responsible for processing payment authorizations for the acquiring bank with which the first online merchant is associated.

2. A method according to claim 1, wherein the trusted central intermediary system receives a payment authorization response from said selected merchant IPSP system, and in response thereto transmits a payment authorization response to said first online merchant system.

3. A method according to claim 2, wherein the first online merchant is an online merchant account holder with the acquiring bank with which it is associated.

4. A method according to claim 3, wherein the method comprises receiving an online merchant identity from the first online merchant system, the online merchant identity included in the generated authorization request being generated on the basis of the received online merchant identity.

5. A method according to claim 1, wherein at least some of said plurality of merchant IPSP systems transmit payment authorization requests to more than one of said plurality of acquiring bank payment processor systems.

6. A method according to claim 1, wherein the method comprises receiving data indicating a selection, by the financial instrument holder, between a plurality of different financial instruments for use in the payment transaction, and retrieving a financial instrument identity to be used in the generated payment authorization request on the basis of said indicated selection.

7. A method according to claim 1, wherein the trusted central intermediary system provides a registration interface for a financial instrument holder whereby the financial instrument holder can provide a financial instrument identity for registration with said trusted central intermediary system as stored registration data, the method comprising the step of authenticating a financial instrument holder and, in response thereto, retrieving a registered financial instrument identity to be used in the generated payment authorization request from said stored registration data.

8. A method according to claim 1, wherein the step of retrieving transmission data comprises retrieving a network address for the selected merchant IPSP system, and the step of transmitting said generated payment authorization request to the selected merchant IPSP system comprises transmitting said generated payment authorization request on the basis of the retrieved network address.

9. A method according to claim 1, wherein said trusted central intermediary system cooperates with a plurality of issuing authentication systems, each being responsible for conducting authentication for a different issuing bank, the method comprising the step of selectively communicating with a respective issuing authentication system so as to verify the identity of the financial instrument holder.

10. A method according to claim 9, comprising transmitting data to said financial instrument holder enabling said financial instrument holder to perform authentication with respect to a said issuing authentication system, and receiving verification response data from said issuing authentication system in response to verification of the financial instrument holder by the corresponding issuing bank.

11. A method according to claim 10, in which verification of the financial instrument holder is performed in accordance with the 3-D Secure messaging protocol.

12. A method according to claim 1, wherein said trusted central intermediary system cooperates with a plurality of issuing authentication systems, each being responsible for conducting authentication for a different issuing bank, the method comprising the step of retrieving a financial instrument identity to be used in the generated payment authorization request on the basis of the authentication of the instrument holder by a selected one of said plurality of issuing authentication systems.

13. A method according to claim 12, comprising transmitting data to said financial instrument holder enabling said financial instrument holder to perform authentication with respect to a selected authentication system, and receiving authentication response data from said selected authentication system in response to authentication of the financial instrument holder by the selected issuing authentication system.

14. A method according to claim 13, comprising receiving data indicating a financial instrument identity to be used in the generated payment authorization request from said selected issuing authentication system in response to authentication of the financial instrument holder by the selected issuing authentication system.

15. A method according claim 1, wherein said financial instrument identity comprises a Primary Account Number (PAN) associated with said financial instrument.

16. A method according to claim 15, wherein said PAN comprises a credit card number or debit card number.

17. A method according to claim 1, wherein the merchant IPSP system provides payment transaction settlement for an online merchant account through which said payment transaction is conducted, on behalf of the first online merchant.

18. A method according to claim 1, wherein the merchant IPSP system provides payment transaction history for the first online merchant, said payment transaction history being accessible by the first online merchant via an online merchant interface provided by the merchant IPSP.

19. A method according to claim 1, wherein the trusted central intermediary system provides a registration interface for the first online merchant whereby the first online merchant can register a merchant IPSP system with which the first online merchant is associated, and wherein the step of retrieving transmission data to enable the transmission of payment authorization request data to the selected merchant IPSP system associated with the first online merchant is conducted on the basis of the merchant IPSP system registered by the first online merchant.

20. A method according to claim 1, wherein the trusted central intermediary system receives and processes payment authorization requests for payment transactions of a first type originating from the first online merchant system, and in response thereto to transmit a generated payment authorization request to the selected merchant IPSP system, and wherein said merchant IPSP systems receive and process payment authorization requests for payment transactions of a different type originating from the first online merchant system, said payment authorization requests for payment transactions of a different type not being processed via said central intermediary system.

21. A method according to claim 20, wherein said payment authorization requests for payment transactions of a first type originating from the first online merchant system do not include said financial instrument identity and said payment authorization requests for payment transactions of said different type originating from the first online merchant system include a financial instrument identity collected by the online merchant system during order processing of payment transactions of said different type.

22. A method according to claim 21, wherein the financial instrument identity collected by the online merchant system during order processing of payment transactions of said different type comprises a credit card number or a debit card number.

23. A trusted intermediary system in communication with a plurality of online merchant systems and a plurality of merchant IPSP systems, said trusted intermediary system being arranged to conduct the trusted intermediary system steps of a method according to claim 1.

24. A payment authorization system for processing payment authorization requests in respect of payment transactions to be conducted via a data communications network on behalf of online merchants, the payment authorization requests being conducted as a result of orders by financial instrument holders via a plurality of different online merchant systems, each of said online merchants having an online merchant identity, wherein the payment authorization system comprises:

a trusted central intermediary system arranged to communicate with a plurality of different online merchant Internet Payment Service Provider (IPSP) systems and with a plurality of said online merchants, the trusted central intermediary system being arranged to transmit payment authorization requests to each of the plurality of different online merchant Internet Payment Service Provider (IPSP) systems,

wherein each of said merchant IPSP systems is arranged to transmit payment authorization requests to at least one of a plurality of acquiring bank payment processor systems, each of said plurality of acquiring bank payment processor systems being responsible for processing payment authorizations for at least one of said acquiring banks,

wherein, responsive to a payment authorization request relating to authorization of a payment transaction from a first online merchant system, said received payment authorization request being initiated as a result of a financial instrument holder conducting an order via the first online merchant system and the online merchant system being responsible for originating payment authorization requests for said first online merchant, the trusted intermediary system is arranged to;

a) generate a payment authorization request comprising transaction data including;

i) a financial instrument identity to be used in the payment transaction by the financial instrument holder; and

ii) an online merchant identity, associated with the first online merchant, as the payment transaction beneficiary; and

iii) one or more transaction details including a payment amount; and

b) retrieve transmission data to enable the transmission of payment authorization request data to a selected merchant IPSP system associated with the first online merchant; and

c) on the basis of the retrieved transmission data, transmit said generated payment authorization request to the selected merchant IPSP system, wherefrom a further payment authorization request may be generated and transmitted to an acquiring bank payment processor system responsible for processing payment authorizations for the acquiring bank with which the first online merchant is associated.