FINANCIAL TRANSACTION METHOD AND SYSTEM HAVING AN UPDATE MECHANISM

• US 20130185167A1
• Filed: 09/21/2010
• Published: 07/18/2013
• Est. Priority Date: 09/21/2010
• Status: Active Grant

• Current Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Original Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Inventors: Mestr, Patrick, Radu, Cristian, Roberts, David A., Van de Velde, Edward L.H.
• Granted Patent: US 10,147,077 B2
• Time in Patent Office: Days
• US Class Current: 705/21
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/202 Interconnection or interaction of plural electronic cash registers [ECR] or to host computer, e.g. network details, transfer of information from host to ECR or from ECR to ECR
• CPC Class Codes: G06Q 20/4033 Local solvency checks
• CPC Class Codes: G06Q 20/4037 Remote solvency checks
• CPC Class Codes: G07F 7/10 together with a coded signal , e.g. in the form of personal identification information, like personal identification number [PIN] or biometric data
• CPC Class Codes: G07F 7/127 in which both online and offline card verification can take place

Abstract

A payment device and method and system for using the payment device is described capable of utilizing a pre-authorized amount on existing infrastructure, including POS terminals or for using offline pre-paid products on this infrastructure. The updates for the pre-authorized or offline prepaid products can be sent by the issuer and applied by the card contemporaneously with the card'"'"'s processing of the issuer authentication data but without requiring any additional bytes in the issuer authentication data. The updates performed by the issuer can be larger and more extensive than could be achieved by using any available space in the issuer authentication data.

Claims

1. Method of managing a payment device in a financial transaction between an issuer node and a payment device via a terminal across a payment network, update information of the financial transaction routed through the payment network to the payment device being subject to errors and/or a bandwidth limitation, each financial transaction being routed at an application layer from the issuer node to the terminal, and components of the financial transaction being transferred from the terminal to the payment device, the payment device being issued by an issuer or an agent of the issuer, at least a first component of the financial transaction being delivery of the update information and being transferred by the terminal to the payment device, the at least one first component of the financial transaction requiring at least one operation of recording the update information in non-volatile memory on the payment device conditional on at least a second component of the financial transaction, the second component including an outcome requested by the issuer or the agent of the issuer, said method comprising the payment device executing the steps of:

a) on receiving the update information, provisionally storing the update information on the payment device without losing prior values corresponding to the update information; and

b) on receiving the at least one second component, applying the update information to non-volatile memory on the payment device only if the payment device has issued a confirmation that the financial transaction has been completed in accordance with the outcome requested by the issuer or the agent.

2. The method of claim 1, wherein the applying step is only carried out if the payment device has successfully authenticated instructions from the issuer or the agent in accordance with an authentication process.

3. The method of claim 1, wherein the confirmation is an application cryptogram.

4. The method of claim 1, wherein the outcome requested by the issuer or the agent is approval or denial.

5. The method of claim 2 further comprising:

(a) providing said payment device with a pre-authorized limit representing the maximum value which may be utilized with said payment device for at least one off-line transaction without communication with said issuer or said agent via said payment network for authorization of said transaction;

(b) storing on said payment device a pre-authorized balance representing the value of transactions conducted with said payment device without on-line communication with said payment network for authorization of said transaction;

(c) utilizing said payment device for conducting said transaction and reading from said payment device said preauthorized balance, or said preauthorised amount, and an account number associated with an account;

(d) determining to initiate an on-line authorization request in the event the value of said transaction is greater than the difference between said pre-authorized limit and said pre-authorized balance;

(e) in function of step (d), initiating an on-line authorization request by communicating with a payment network; and

(f) receiving authorization to conduct said transaction and updating by said payment device said pre-authorized balance and said pre-authorized limit, wherein the issuer or the agent, through said payment device, updates the pre-authorized limit.

6. The method of claim 5, wherein the issuer or the agent, through said payment device, updates the pre-authorized balance.

7. The method of claim 5, further comprising the steps of

receiving a denial prohibiting said transaction and updating by said payment device said pre-authorized balance and said pre-authorized limit, wherein the issuer or the agent, through said payment device, is able to update the pre-authorized limit.

8. The method of claim 3, wherein the payment device receives a response code, and the update information is only applied if the application cryptogram is the one defined by the response code.

9. The method of claim 8 wherein the response code has an indication whether the financial transaction should be declined if the update information was not received or be processed independently of the presence of the update information.

10. The method of claim 1, wherein the at least one first and/or second component is transferred securely from the terminal to the payment device.

11. The method of claim 10, wherein in the step of securely transferring includes an error detection mechanism.

12. The method of claim 1, wherein the update information is calculated assuming the financial transaction has been completed successfully.

13. A system for managing a payment device in a financial transaction between an issuer node and a payment device via a terminal across a payment network, update information of the financial transaction routed through the payment network to the payment device being subject to errors and/or a bandwidth limitation, each financial transaction being routed at an application layer from the issuer node to the terminal, and components of the financial transaction being transferred from the terminal to the payment device, the payment device being issued by an issuer or an agent of the issuer, at least a first component of the financial transaction being delivery of the update information and being transferred by the terminal to the payment device, the at least one first component of the financial transaction requiring at least one operation of recording the update information in non-volatile memory on the payment device conditional on at least a second component of the financial transaction, the second component including an outcome requested by the issuer or the agent of the issuer, wherein the payment device is adapted so that:

a) on receiving the update information, the payment device provisionally stores the update information on the payment device without losing prior values corresponding to the update information; and

b) on receiving the at least one second component, the payment device applies the update information to non-volatile memory on the payment device only if the payment device has issued a confirmation that the financial transaction has been completed in accordance with the outcome requested by the issuer or the agent.

14. The system of claim 13, wherein the payment device is adapted to apply the update information only if the payment device has successfully authenticated instructions from the issuer or the agent in accordance with an authentication process.

15. The system of claim 13, wherein the confirmation is an application cryptogram.

16. The system of claim 13, wherein the outcome requested by the issuer or the agent is approval or denial.

17. The system of claim 14, further comprising:

(a) the payment device having stored thereon a pre-authorized limit representing the maximum value which may be utilized with said payment device for at least one off-line transaction without communication with said issuer or the agent via said payment network for authorization of said transaction;

(b) the payment device having stored thereon a pre-authorized balance representing the value of transactions conducted with said payment device without on-line communication with said payment network for authorization of said transaction;

(c) means for reading from said payment device said pre-authorized balance or said preauthorised amount, and an account number associated with an account;

(d) means for determining to initiate an on-line authorization request in the event the value of said transaction is greater than the difference between said pre-authorized limit and said pre-authorized balance;

(e) the means for determining, in function of step (d), being adapted to initiate an online authorization request by communicating with a payment network; and

(f) means for receiving authorization to conduct said transaction and for updating by said payment device of said pre-authorized balance and said pre-authorized limit, wherein the issuer or the agent, through said payment device, updates the pre-authorized limit.

18. The system of claim 17, wherein the issuer or the agent, through said payment device, updates the pre-authorized balance.

19. The system of claim 17, further comprising:

the payment device being adapted to receive a denial prohibiting said transaction and updating by said payment device said pre-authorized balance and said pre-authorized limit, wherein the issuer or the agent, through said payment device, is able to update the pre-authorized limit.

20. The system of claim 15, wherein the payment device is adapted to receive a response code, and the update information is only applied if the application cryptogram is the one defined by the response code.

21. The system of claim 20 wherein the response code has an indication whether the financial transaction should be declined if the update information was not received or be processed independently of the presence of the update information.

22. The system of claim 13, wherein a connection between the terminal and the payment device is adapted such that the at least one first and/or second component is transferred securely from the terminal to the payment device.

23. The system of claim 22, wherein the connection for securely transferring includes an error detection mechanism.

24. The system of claim 13, wherein system is adapted to calculate the update information assuming the financial transaction has been completed successfully.

25. A payment device having volatile and non-volatile memory, the payment device being for use in a financial transaction between an issuer node and the payment device via a terminal across a payment network, the payment device being adapted to process each financial transaction delivered at an application layer from the issuer node to the terminal, whereas components of the financial transaction are transferred from the terminal to the payment device, the payment device being issued by an issuer or an agent of the issuer, at least a first component of the financial transaction being delivery of update information and being received by the payment device from the terminal, the at least one first component of the financial transaction requiring at least one operation of recording the update information in non-volatile memory on the payment device conditional on at least a second component of the financial transaction, the second component including an outcome requested by the issuer or the agent of the issuer, wherein the payment device is adapted so that:

a) on receiving the update information, the payment device provisionally stores the update information on the payment device without losing prior values corresponding to the update information; and

b) on receiving the at least one second component, the payment device applies the update information to non-volatile memory on the payment device only if the payment device has issued a confirmation that the financial transaction has been completed in accordance with the outcome requested by the issuer or the agent.