Method of performing transactions with contactless payment devices using pre-tap and two-tap operations

• US 9,824,355 B2
• Filed: 09/21/2009
• Issued: 11/21/2017
• Est. Priority Date: 09/22/2008
• Status: Active Grant

• Current Assignee: Visa International Service Association (Visa, Inc.)
• Original Assignee: Visa International Service Association (Visa, Inc.)
• Inventors: Aabye, Christian, Ngo, Hao, Wilson, David
• Primary Examiner(s): Ebersman, Bruce I
• Assistant Examiner(s): ANDERSON, JOHN A
• Application Number:
  US12/563,444
• Publication Number:
  US 20100211504A1
• Time in Patent Office: 2,983 Days
• Field of Search: 705 35- 40, 455558
• 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 20/204 comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit
• CPC Class Codes: G06Q 20/322 Aspects of commerce using mobile devices [M-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 20/3829 involving key management
• 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

Abstract

A system, apparatus, and method for processing payment transactions that are conducted using a mobile payment device that includes a contactless element, such as an integrated circuit chip. The invention enables one or more of the operations of activation of a payment application, transfer of transaction data, updating of account records, setting or re-setting of a payment application counter or register, or transfer or processing of a script, command, or instruction, with these functions being performed with minimal impact on a consumer. This is accomplished by introducing a pre-tap and/or two-tap operation prior to, or as part of, the transaction flow.

Claims

1. A method of conducting a payment transaction, comprising:

detecting a presence of a payment device using a wireless communications technology of a device reader, wherein the payment device includes a contactless element that communicates and transfers data using wireless communications technology, the presence of the payment device launches a payment application installed on a memory of the payment device;

transferring, by the device reader, data or a command to the payment device to trigger activation of the payment application installed on the memory of the payment device;

receiving, by the device reader, data identifying a payment account or consumer associated with the payment device;

determining, by the device reader, that an interaction with the payment device or the consumer is required prior to a performance of the payment transaction;

determining, by the device reader, that the interaction has been performed;

after determining that the interaction has been performed, detecting the presence of the payment device using the wireless communications technology of the device reader;

performing, by the device reader, the payment transaction; and

receiving a message from issuer of the payment account after performing the transaction, the message including data to be transmitted to the payment device;

determining that an interaction with the payment device is required based on the received message from the issuer;

requesting that the payment device be presented to the device reader; and

performing an issuer update on the payment device using the device reader, wherein the issuer update transmits the data received from the issuer to the payment device, wherein the issuer update includes identification data to confirm authenticity of the issuer.

2. The method of claim 1, further comprising processing transaction data for the payment transaction.

3. The method of claim 1, wherein determining that an interaction with the payment device or the consumer is required prior to the performance of the payment transaction further comprises accessing a database containing data indicating a status of the payment device, the database maintained by one or more of a merchant, an Acquirer, the Issuer, or an element of a payment processing network.

4. The method of claim 1, wherein performing the issuer update includes one or more of setting a value of a counter, configuring a function of the payment device, enabling or disabling a function of the payment device, or accessing data stored in the payment device.

5. The method of claim 1, wherein the payment device is a mobile phone.

6. The method of claim 1, wherein the identification data includes a cryptogram for confirming the authenticity of the issuer.

7. The method of claim 1, wherein the wireless communications technology is a near field communications technology.

8. The method of claim 1 further comprising, after performing the payment transaction, synchronizing an account record stored in the payment device with an account record stored by the issuer.

9. The method of claim 8 further comprising, after performing the payment transaction, re-setting a counter in the payment device by the issuer.

10. A device reader, comprising:

a processor;

a memory; and

a set of instructions stored in the memory, which when executed by the processor implement a method to;

detect a presence of a payment device using a wireless communications technology, wherein the payment device includes a contactless element that communicates and transfers data using wireless communications technology, the presence of the payment device launches a payment application installed on a memory of the payment device;

transfer data or a command to the payment device to trigger activation of the payment application installed on the memory of the payment device;

receive data identifying a payment account or consumer associated with the payment device;

in response to receiving the data, determine that an interaction with the payment device or the consumer is required prior to a performance of a payment transaction;

determine that the interaction has been performed;

after determining that the interaction has been performed, detect the presence of the payment device using the wireless communications technology of the device reader;

perform the payment transaction;

receive a message from issuer of the payment account after performing the transaction, the message including data to be transmitted to the payment device;

determine that an interaction with the payment device is required based on the received message from the issuer;

request that the payment device be presented to the device reader; and

perform an issuer update on the payment device by transmitting the data to the contactless element of the payment device via the wireless communications technology of the device reader, wherein the issuer update includes identification data to confirm authenticity of the issuer.

11. The device reader of claim 10, wherein the issuer update performed on the payment device is one or more of updating a transaction record stored in the payment device or setting a counter value.

12. The device reader of claim 10, wherein the payment device is a mobile phone.

13. The device reader of claim 10, wherein the wireless communications technology is a near field communications technology.

14. A method of conducting a payment transaction, comprising:

detecting a presence of a payment device using a wireless communications technology of a device reader, wherein the payment device includes a contactless element that communicates and transfers data using wireless communications technology;

in response to detecting the presence of the payment device the first time, transferring, by the device reader, data or a command to the payment device to trigger activation of a payment application installed on a memory of the payment device;

after activating the payment application, detecting, by the device reader, the presence of the payment device;

performing, by the device reader, the payment transaction; and

receiving a message from issuer of the payment account after performing the transaction, the message including data to be transmitted to the payment device;

determining that an interaction with the payment device is required based on the received message from the issuer;

requesting that the payment device be presented to the device reader; and

performing an issuer update on the payment device using the device reader, wherein the issuer update transmits the data received from the issuer to the payment device, wherein the issuer update includes identification data to confirm authenticity of the issuer.

15. The method of claim 14, wherein the contactless element is contained in a mobile phone.

16. The method of claim 14, wherein detecting the presence of the payment device further comprises detecting an association between the payment device and a user interface element displayed by the device reader, and the method further comprises activating the payment application identified by the user interface element in response to detecting the presence of the payment device.

17. The method of claim 14, wherein the wireless communications technology is a near field communications technology.