System and method for the security of payment transactions

• US 6,848,613 B2
• Filed: 01/09/2003
• Issued: 02/01/2005
• Est. Priority Date: 07/11/2000
• Status: Expired due to Fees

• Current Assignee: Pendawell Limited
• Original Assignee: Newt Limited
• Inventors: O'Donnell, Hugh Michael, Nielsen, Bruce Jeremy
• Primary Examiner(s): Lee, Michael G.
• Assistant Examiner(s): Franklin, Jamara A.
• Application Number:
  US10/339,420
• Publication Number:
  US 20030168509A1
• Time in Patent Office: 754 Days
• Field of Search: 235/379, 235/380, 235/382, 705 15- 17
• US Class Current: 235/379
• 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 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/403 Solvency checks

Abstract

A method of authorizing a payment transaction is described. The method comprises receiving data relating to a customer'"'"'s transaction card, and data relating to an original amount of the payment transaction; presenting the original amount data to the customer such that a gratuity amount can be determined and in response thereto receiving data relating to the gratuity amount; establishing a link with an acquirer via a telecommunications network and seeking online authorization for the payment transaction by transmitting the transaction card data and data relating to a value of the transaction and generating and providing receipt data to the customer. The transaction value comprises the gratuity amount and the original amount and the receipt data confirms authorization of the payment transaction at the transaction value when the transaction has been authorized. A method of authorizing concurrent payment transactions, such as may be generated by multiple mobile handsets and a base terminal, is also described.

Claims

1. A method of generating and handling an electronic online authorization and uploading request from a merchant relating to a payment transaction, the method comprising:

receiving data relating to a customer'"'"'s transaction card, and data relating to an original amount of the payment transaction;

presenting the original amount data to the customer such that a gratuity amount is determined and, in response thereto, receiving data relating to the gratuity amount;

constructing the electronic online authorization and uploading request, the request comprising all transaction data necessary for an acquirer to authorize the transaction and to completely upload the payment transaction for reconciliation to the merchant, and including identification of the merchant, the transaction card data and data relating to a value of the transaction, the transaction value comprising the gratuity amount and the original amount;

establishing a link with the acquirer via a telecommunications network and seeking online authorization for the payment transaction by transmitting the constructed request; and

generating and providing receipt data to the customer, the receipt data confirming authorization of the payment transaction at the transaction value when an electronic signal has been received specifying that the electronic online authorization and uploading request has been authorized.

2. A method according to claim 1, wherein the customer transaction card data is stored on a personal item of said customer, and the method further comprises obtaining the transaction card data from the personal item for the purposes of generating the electronic online authorization and uploading request.

3. A method according to claim 2, wherein the obtaining step comprises reading data stored on a magnetic strip of a customer'"'"'s transaction card.

4. A method according to claim 2, wherein the obtaining step comprises reading data stored on an electronic chip of a customer'"'"'s transaction card.

5. A method according to claim 2, wherein the obtaining step comprises using a data input device, such as a keyboard, for manually inputting data displayed on the personal item and converting the data into an electronic format.

6. A method according to claim 1, wherein the presenting step comprises outputting data in a humanly readable format.

7. A method according to claim 6, wherein the outputting step further comprises printing at least the original amount data onto a slip.

8. A method according to claim 6, wherein the outputting step further comprises displaying at least the original amount data on a display screen.

9. A method according to claim 1, further comprising obtaining further information from the customer regarding the transaction value.

10. A method according to claim 9, wherein the further information obtained is the gratuity amount and a transaction amount, the method further comprising checking that the transaction amount is the sum of the original amount and the gratuity amount and subsequently using the transaction amount as the transaction value.

11. A method according to claim 9, wherein the further information obtained is the gratuity amount, the method further comprising determining the transaction value by adding the gratuity amount to the original amount.

12. A method according to claim 9, wherein the further information obtained is a transaction amount, the method further comprising determining the gratuity amount by subtracting the original amount from the transaction amount.

13. A method according to claim 1, wherein the, receiving step comprises receiving data relating to the expiry date of the customer'"'"'s transaction data card for transmission to the acquirer.

14. A method according to claim 1, wherein the establishing step is triggered by the occurrence of the receiving step and is carried out at least in part concurrently with the presenting and gratuity amount data receiving steps.

15. A method according to claim 14, further comprising creating one or more software session instances for electronic online authorization and uploading request, the software session instances controlling the receiving, presenting, constructing, establishing, transmitting, and generating and providing steps for the request.

16. A method according to claim 15, wherein there are a plurality of electronic online authorization and uploading requests to be processed and one or more software session instances are created for each request, the method further comprising implementing the receiving, presenting, constructing, establishing, transmitting, and generating and providing steps for the plurality of requests concurrently.

17. A method according to claim 1, wherein the establishing and transmitting steps are implemented using the APACS 40 standard format.

18. A method according to claim 1, wherein the generating and providing step comprises outputting compiled receipt data in a humanly readable format.

19. A method according to claim 18, wherein the receipt data outputting step further comprises printing the authorized transaction value data onto a slip.

20. A method according to claim 18, wherein the receipt data outputting step further comprises displaying the authorized transaction value data on a display screen.

21. A method according to claim 18, wherein the receipt data outputting step further comprises outputting an authorization code received from the acquirer confirming the authorization of the transaction when the electronic signal is received.

22. A method according to claim 1, further comprising storing the receipt data in respect of each electronic online authorization and uploading request payment transaction in a local database for accounting purposes.

23. A method according to claim 1, further comprising creating one or more software session instances for the electronic online authorization and uploading request, the software session instances controlling the receiving, presenting, constructing, establishing, transmitting, and generating and providing steps for the request.

24. A method according to claim 23, wherein there are a plurality of electronic online authorization and uploading requests to be processed and software session instances are created for each request, the method further comprising implementing the receiving, presenting, constructing, establishing, transmitting, and generating and providing steps for the plurality of requests concurrently.

25. A method according to claim 1, wherein the constructing step further comprises encrypting the electronic online authorization and uploading request.

26. A method according to claim 25, wherein the encrypting step comprises including a message authentication block within the electronic online authorization and uploading request.

27. An electronic online request generation and handling apparatus for generating and handling an electronic online authorization and uploading request from a merchant relating to a payment transaction, the apparatus comprising:

input means for inputting data relating to a customer'"'"'s transaction card, and data relating to an original amount of the payment transaction;

presenting means arranged to present the original amount data to the customer'"'"'such that a gratuity amount is determined and in response thereto data relating to the gratuity amount is inputted via the input means;

constructing means arranged to build the electronic online authorization and uploading request, the request providing all of the transaction data necessary for an acquirer to authorize the transaction and to completely upload the payment transaction for reconciliation to the merchant, and including identification of the merchant, the transaction card data and data relating to a value of the transaction, the transaction value comprising the gratuity amount and the original amount;

communication means arranged to establish a link with the acquirer via a telecommunications network and to seek online authorization for the payment transaction by transmitting the electronic online authorization request; and

means for generating and providing receipt data to the customer, the receipt data confirming authorization of the payment transaction at the transaction value when an electronic signal has been received specifying that the electronic online authorization and uploading request has been authorized.

28. A system according to claim 27, the system comprising:

an acquirer apparatus arranged to receive the electronic online authorization and uploading request from the electronic online request generation and handling apparatus, to authorize the payment transaction at the transaction value and to transmit an electronic signal authorising the electronic online authorization and uploading request over the telecommunications network to the electronic online request generation and handling apparatus.

29. An electronic online request generation and handling apparatus for generating and handling an electronic online authorization and uploading request from a merchant relating to a payment transaction, the apparatus comprising:

a payment card reader for inputting data relating to a customer'"'"'s transaction card and an operator input device for inputting data relating to an original amount of the payment transaction;

a display for presenting the original amount data to the customer'"'"'such that a gratuity amount is determined and, in response thereto, data relating to the gratuity amount is inputted via the operator input device;

a request constructor arranged to build the electronic online authorization and uploading request, the request providing all of the transaction data necessary for an acquirer to authorize the transaction and to completely upload the payment transaction for reconciliation to the merchant, and including identification of the merchant, the transaction card data and data relating to a value of the transaction, the transaction value comprising the gratuity amount and the original amount;

an electronic fund transaction processing engine arranged to establish a link with an acquirer via a telecommunications network and to seek online authorization for the payment transaction by transmitting the electronic online authorization request; and

a printer for providing receipt data to the customer, the receipt data confirming authorization of the payment transaction at the transaction value when an electronic signal has been received specifying that the electronic online authorization and uploading request has been authorized.

30. A system according to claim 29, the system comprising:

an acquirer apparatus arranged to receive the electronic online authorization and uploading request from the electronic online request generation and handling apparatus, to authorize the payment transaction at the transaction value and to transmit an electronic signal authorising the electronic online authorization and uploading request over the telecommunications network to the electronic online request generation and handling apparatus.