SYSTEM AND METHOD FOR TOKEN-BASED PAYMENTS

• US 20140108260A1
• Filed: 12/18/2013
• Published: 04/17/2014
• Est. Priority Date: 10/17/2011
• Status: Active Grant

• Current Assignee: Capital One Services LLC (Capital One Financial Corporation)
• Original Assignee: Capital One Financial Corporation
• Inventors: POOLE, Thomas S., MORETON, Paul Young, NICZYPORUK, Janusz Michael
• Granted Patent: US 10,482,457 B2
• Time in Patent Office: Days
• US Class Current: 705/64
• CPC Class Codes: G06Q 20/306 using TV related infrastructures external card used for payment with client device H04N21/4185
• CPC Class Codes: G06Q 20/321 using wearable devices
• CPC Class Codes: G06Q 20/322 Aspects of commerce using mobile devices [M-devices]
• CPC Class Codes: G06Q 20/3226 Use of secure elements separate from M-devices
• CPC Class Codes: G06Q 20/326 Payment applications installed on the mobile devices
• CPC Class Codes: G06Q 20/3278 RFID or NFC payments by means of M-devices
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• 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 20/4014 Identity check for transactions
• CPC Class Codes: H04B 5/72 for local intradevice communication
• CPC Class Codes: H04B 5/77 for interrogation

Abstract

A system and method for enhanced token-based payments. The system and method including software and hardware to receive, via a network, a request for authorization; create, in response to the request, a dynamic payment packet (DPP) for payment; transmit, via a network, the DPP; receive, via a network, an authorization request, the DPP, and a transaction ID; receive at least one additional data element relating to the customer involved in the transaction and the transaction itself; and transmit, via a network, the transaction ID, an authorization response, and token.

Claims

1. A method for software-based contactless payment, comprising:

providing, via a network, a payment packet that includes a token and an additional data element to a mobile device of a customer for use with a transaction;

receiving, via a network, the payment packet in association with a transaction;

processing the token using a processor to determine whether to authorize the transaction; and

utilizing the additional data element to provide additional services relating to the transaction.

2. The method of claim 1, further comprising:

communicating, via a network, an authorization decision to the merchant.

3. The method of claim 1, further comprising:

receiving, via a network, a request for the payment packet from the customer.

4. The method of claim 1, wherein the payment packet is received as track data in a credit card transaction.

5. The method of claim 1, further comprising:

processing the transaction.

6. The method of claim 1, wherein the payment packet is provided and received by an issuer.

7. The method of claim 1, wherein the payment packet is received from a merchant system.

8. The method of claim 1, further comprising:

a database storing a list of provided tokens, and wherein the authorization determination is based on a comparison of the received token to the list of provided tokens.

9. The method of claim 1, wherein the received payment packet is transmitted in response to a personal identification number provided by the customer.

10. The method of claim 1, further comprising:

receiving an identifier associated with the mobile device; and

utilizing the identifier in the authorization determination.

11. A system for software-based contactless payment, comprising:

a payment packet manager that generates a payment packet and provides the payment packet via a network to a mobile device of a customer for use with a transaction, wherein the payment packet includes a token and an additional data element;

a communication interface that receives the payment packet via the network in association with a transaction;

a processor that processes the payment packet to determine whether to authorize the transaction; and

a processor that processes the additional data element to provide additional services relating to the transaction.

12. The system of claim 11, wherein the communication interface communicates an authorization decision to the merchant.

13. The system of claim 11, wherein the payment packet manager receives a request for the token from the customer.

14. The system of claim 11, wherein the payment packet manager receives the payment packet as track data in a credit card transaction.

15. The system of claim 11, further comprising:

a payment processor to process the transaction.

16. The system of claim 11, wherein the payment packet is provided and received by an issuer.

17. The system of claim 11, wherein the payment packet is received from a merchant system.

18. The system of claim 11, further comprising:

a database that stores a list of provided tokens, and wherein the authorization determination is based on a comparison of the received token to the list of provided tokens.

19. The system of claim 11, wherein the received token is transmitted in response to a personal identification number provided by the customer.

20. The system of claim 11, wherein the payment packet manager receives an identifier associated with the mobile device, and the processor utilizes the identifier in the authorization determination.