FORM 2
THE PATENTS ACT 1970
(39 of 1970)
&
THE PATENTS RULES 2003
PROVISIONAL/COMPLETE SPECIFICATION
(See Section 10 and rule 13)
1. TITLE OF THE DIGITAL PAYMENT SYSTEM AND PROCESS INVENTION FLOW DOCUMENT
2. APPLICANT (S)

(a) Name In-Solutions Global Ltd.
(b) Nationality Indian Company
(c) Address 601 / 602 / 618,
Palm Spring Link Road, Malad (West), Mumbai 400064 Maharashtra, India

3. PREAMBLE TO THE DESCRIPTION
COMPLETE SPECIFICATION
The following specification describes the invention and the manner in which it is to be performed.

4. DESCRIPTION
FIELD OF INVENTION:
The present invention provides a method and a system to minimize the potential frauds in electronic and digital payment industry. More particularly, relates to tracking and identifying of financial transactions, the system and process flow document for reduction of fraud in the transaction of the payment and other transaction during processing the data.
BACKGROUND OF THE INVENTION:
Internet payment fraud is constantly increasing, and is, apparently, unstoppable. Key drivers behind the growth of fraud include the rapidly expanding e-Commerce market, higher money flows in the online channel, and the increased use of mobile payments. The online payment fraud causes financial losses to financial institutions, merchants and to customers. There are various systems working as an individual system, to handle each and every functionality related to payment transactions. The drawbacks in these individual systems is that the modules in these individual systems are not inter-related to each other due to which the transaction cannot be tracked till its closure and therefore unable to track and identify fraud. None of the individual system discloses the integration of modules. The present invention gives rise to integration of various modules and integrating each step with Fraud and Risk Management to make the transaction authenticate at each stage. Moreover, in the individual systems there was no reconciliation at the switch level, the present invention overcomes the problem of reconciliation and authenticate the transaction at switch/payment gateway level.
The present invention is cost effective as the entire system is a one platform and different modules can be customized according to the requirements of the financial institutions and less time consuming as compared to the prior arts.

In this process transactions is authorized by the card holder's bank based on parameter set bank end and as per balance/card it limit available customers account.
Bank will enroll the merchant in its system and at the time of authorization validate the merchant details receive in the authorization request.
Bank will also validate the customer details based on the master maintained at its end.
OBJECTS OF THE INVENTION
The main objective of the system and the process is to track the each and every transaction till its closure which includes merchant payment, interchange, dispute etc.
It is the objective of the invention to minimize loss from potential frauds in
electronic and digital payment industry.
It is another objective of the invention to identify fraud in electronic and digital payment industry.
It is another objective of the present invention is to provide risk information associated with online payment transactions.
It is another objective of the present invention to provide a financial transaction tracker at each and every stage of transaction till its closure.
It is another objective of the invention to provide a financial tracker having end to erd flow

It is the objective of the invention to provide a system to track online payment transactions immediately at the time of the authorization.
Summary of the Invention
The present invention provides a method and a system to minimize the potential frauds in electronic and digital payment industry. The present invention is a financial transaction tracker having end to end flow and Integration of all modules and payment transactions will be tracked at each and every stage depending on the transaction type till its closure.
DESCRIPTION OF THE INVENTION
The present invention relates to tracking and identifying of financial transactions. More particularly, the present invention provides a method and a systerr to minimize the potential frauds in electronic and digital payment industry, the financial tracker having end to end flow and Integration of all modules and payment transactions will be tracked at each and every stage dependirg on the transaction type including but not limited to credit card, Debit ca'd, Aadhar card, Net Banking, Pay Cards, Prepaid card, Gift card, Travel card, virtual payment address (VPA), mobile number, virtual card, QR code, and all sorts of payments transactions and for all sort of mutual funds, insurance premiums, bill payment, electronic toll transactions and digital transaction. Payment systems includes modules such as Authorization, Fraud and Risk Management system, Merchant onboarding and settlement, Interchange and Fee Management, Credit Card Management System, Debit Card Reconciliation System, Complaint registration System, Dispute Management System and Accounting. The present invention tracks the transaction from point of initiation until the transaction is completed upon receipt of money to the transferee. The present invention also provides

customization of modules depending upon the requirements of the financial institutions.
The system provides the method of financial transaction tracking which starts when the merchant is on-boarded in the system through Application Processing and at the time of authorization, the merchant details received in the authorization request is validated. Transaction which is initiated at merchant terminal or portal is routed to cardholder's bank through network such as Visa, Mastercard, NPCI, Rupay, Amex, Diners, JCB and CUP by Switch. Online transactions will be routed through Payment Gateway (PG) and switch and reconciliation between payment gateway and switch is completed at this stage. After reconciliation, process for detecting fraud transactions is initiated and transactions are marked as suspicious on the basis of set rules. The merchant payment is kept on hold till the process of scrutinizing of the suspicious transactions is completed, once the scrutiny of suspicious transaction is completed merchant payment is released. The system calculates the merchant's commission based on the parameters and rate configured. System will hold certain predefined percentage of amount as fund reserve from merchant settlement to protect potential fraud. System will calculate merchant settlement amount after adjusting commission, risk hold, chargeback hold, potential hold, risk release, potential release and chargeback release. Post verification merchant payment is released. Reconciliation between hold and release of payment is completed at this stage. The outgoing files are created for the acquiring transactions on the basis of transaction type and network identification as per the formats prescribed by the respective networks. Outgoing files will be staged to respective networks. System will calculate expected Interchange fees on transactions as per the interchange fee rules configuration, Reconciliation between outgoing and Settlement data and reconciliation between system calculated fees and fees received from network incoming file is completed at this stage. In next stage system receives the incoming files from network which contains settlement, rejection, interchange fee, chargeback and

disputed transactions details. The rejected transactions are reprocessed. Issuer data (Credit card / Debit card/ all financial instrument) will receive through network incoming file. At the stage of network settlement system reconciles onus transactions with switch and core banking system (CBS) data; Off-us transactions are reconciled with switch, CBS and network data; cash in ATM are reconciled with Switch, CBS, Network and EJ data. Reconciliation is done for Debit Card, AEPS, IMPS, UPI, BBPS, NETC, BNA, IMT. Post reconciliation, system takes predefined action on exceptional transactions are the transactions in which one step is missing, the corrective actions for one of the missing stage out of all actions or route is taken as per the rules, turnaround time (TAT) and guidelines to resolve dispute. Every network will have different guidelines for resolving the dispute. System generates TTUM an uploadable file in bank's core banking system for passing accounting entry as per the actions performed on exceptional transaction. Dispute transactions are tracked. Dispute rules, dispute life cycle and dispute TATs are configured in the system. Disputed files which are received from networks will be processed in the module and system will take necessary actions as per the network. The system will generate file and provide it to the banks and then banks will examine the disputed and exceptional transactions and refund the amount either to customers or to merchants as the case may be. System is used for registering and resolution of the customer complaints. In the next stage bills are generated as per the billing cycle for transactions (onus/issuer) performed by On-us credit card customer. On receiving the bill, customer will make payment of bill amount either in full or minimum due amount. Accounting is processed at every stage of the process. Summarized voucher is generated according to accounting entries configured, with the appropriate narrations. Voucher are uploaded in the bank CBS system and the shadow account will be maintained on the system. Transaction details are available for every voucher. Through TTUM, complaint filed will be forwarded to the banks and the copy of the complaint is saved on the system as a record. After the accounting process general ledger is maintained in the system with the closing balance. Ledger shows the exact outstanding balance of that particular ledger. Transaction details will be

available for every ledger entry. System generated ledger is reconciled with the bank CBS ledger. System generates trial balance report. The system generates a report which display day wise and transaction wise details and outstanding entries therein.
The present invention provides to a system and the process is to track the each and every transaction till its closure which includes merchant payment, interchange, dispute etc. transactions is authorized by the card holder's bank based on parameter set bank end and as per balance/card it limit available customers account.
Bank will enroll the merchant in its system and at the time of authorization validate the merchant details receive in the authorization request.
Bank will also validate the customer details based on the master maintained at its end. The said transaction will be performed either by customer or by other bank customer using debit card or credit car. The said system and process comprising,
Switch/PG Transaction File
Transactions will be performed either by our customer or by other bank customer using debit card or credit card. Switch transaction file will contain log of these transactions.
Online transactions will be routed through Payment Gateway (PG).
Fraud and Risk Management
System will mark the transactions suspicious based on certain parameters set in provided in the system. The Merchant payment will be kept on hold for these transactions. Post verification Merchant payment will be released.

Merchant Settlement
The System will calculate the Merchant commission based on the parameters and rate configured. System will hold certain predefined percentage of amount from merchant settlement to protect potential fraud.
System will calculate merchant settlement amount after adjusting commission, risk hold, chargeback hold, potential Hold, risk release, potential release and chargeback release.
Interchange, further characterized by the
Outgoing Generation
The System will identify the transactions as per the network like Visa, MasterCard, RuPay, Diners etc. and generate the outgoing files as per the format prescribed by the network.
A Network Settlement
The System will receive the incoming files from Network which contains settlement, rejection, interchange fee and chargeback (disputed transactions) details. Rejected transactions will be reprocessed.
Fee Management

The system will calculate the interchange fee as per the parameter set by the network.
Actual Interchange fee will be checked with the system calculated fees.
Chargeback details will be used for Dispute Management system and merchant recovery.
Complaint Registration and Resolutions System
There will be utility for registering complaints of the customer. These complaints will be linked with the original transactions and based on the status of the transactions the system will take necessary action to resolve the complaint.
Dispute Management System
Disputed transaction will be tracked in dispute management system. Ail the dispute life cycle, TAT and rules will be configured in the system. Outgoing files will be generated as per network requirement and settlement will be checked based on files received from network.
Credit card Management System
For transactions performed by our credit card customer will be sent to credit card management system for billing purpose. Bills will be generated as per the billing and cycle and customer bill payment will be tracked.
Debit card Management
For transactions performed by our debit card customer will be checked in core banking system whether customer account is debited or not.

Reconciliation
System will perform reconciliation between following transactions.
• Reconciliation between Switch and PG file for PG transactions
• Reconciliation between Switch and CBS file Debit card, AEPS, IMPS etc.'
• Reconciliation between Switch and Network file
• Reconciliation between CBS and Network file
• Reconciliation between outgoing transactions and settlement
• Reconciliation between hold and Release
• Reconciliation between hold and Recovery
• Reconciliation between Chargeback and recovery
• Reconciliation between Chargeback and Representment till case resolutions
Exceptions Handling
Post reconciliation, system will take predefined action on exceptional transactions as per the rules and TAT defined in the system.
Accounting
Accounting will process at every stage of the process. Summarized voucher will be generated according to accounting entries configured, with the appropriate narrations. Voucher can be uploaded in the bank CBS system. Transaction details will be available for every voucher.
Shadow ledger
After the accounting processing General ledger will be maintain in the system with the closing balance

Ledger will show the exact outstanding balance of that particular ledger. Transaction details will be available for every ledger entry
Gl Reconciliation
System generated ledger will be reconciled with the bank CBS ledger. Trail balance
System will generate trial balance report.
MIS
The system will generate a report which will display day wise and transaction wise details and outstanding entries therein.
Case 1 :
SYSTEM AND METHOD TO MINIMIZE RETAIL FRAUD UTILIZING TWO- DIMENSIONAL BARCODES PRINTED ON PURCHASE RECEIPTS
This invention relates to systems and methods to reduce retail fraud, and more specifically to systems and methods to reduce the occurrence of fraudulently returned merchandise. It introduced bar code system and nothing to do with payment transactions.
ISG solution So there is no similarity in this solution and
Case 2 :

FRAUD REDUCTION SYSTEM FOR TRANSACTIONS
A system, apparatus, and method for reducing fraud in payment or other transactions by providing issuers with a warning that a transaction being processed for authorization is potentially fraudulent.
This invention is handling only one aspect that is fraud alert for issuer only but ISG solution handle all the below mentioned aspects of payment transaction.
ISG - Genius Digital Enterprise Platform
ISG invention is handling payment transaction from acquiring as well as issuing side. It is a centralized system which handles all types of Card transactions (Debit Card, Credit Card, Prepaid card). It also handles virtual ID (UPI), Aadhaar (AEPS) and QR (Bharat QR) based Transactions. It also support transactions initiated through various devices like POS, mPOS, Ecom, ATM, Micro ATM, mobile APP etc.
It covers below mentioned functionalities.
Acquiring
• Merchant Onboarding
• Switch
• Payment Gateway
• Fraud and Risk Management
• Merchant Settlement
• Interchange Management
• Fee Audit
• Reconciliation
• Dispute Management

• Complaint Resolution Management
• Accounting
Issuing
• Card Management System (Credit Card, Debit Card and Prepaid Card)
• Authorization Host
• Fraud and Risk Management
• Billing Module
• Interchange Management
• Fee Audit
• Reconciliation
• Dispute Management
• Complaint Resolution Management
• Accounting

5. CLAIMS We Claims,
1. A system and the process to track transaction till its closure comprising,
merchant payment, interchange, dispute etc. transactions is authorized by
the card holder's bank based on parameter set bank end and as per
balance/card it limit available customers account,
wherein, enroll the merchant in its system followed by authorization validate the merchant details receive in the authorization request, as well as validation by Bank customer details in the master maintained at its end., the said transaction can be performed either by customer or by other bank customer using debit card or credit car.
2. A system as claimed in claim 1, wherein said system and process comprising, Switch/PG transaction file desired transaction can be routed through either by customer or by other bank transaction file will contain log of these transactions,
3. A system and process as claimed in claim 1 and 2, wherein a Fraud and Risk Management indicates the Suspicious transactions based on parameters set in the system, the Merchant payment will be kept on hold for these transactions, useful for Post verification Merchant payment release,

4. A system and process as claimed in claim 1, wherein the Merchant Settlement calculate Merchant commission based on the parameters configured, such as to hold certain predefined percentage of amount from merchant settlement to protect potential fraud,
5. A system and process as claimed in claim 1, wherein in the interchange, further charecterised by the outgoing Generation which identify the transactions, a Network Settlement the System receive the incoming files from Network which contains settlement, rejection, interchange fee and charge back a fee Management system will calculate the interchange fee as per the parameter set by the network,
6. A system as claimed in above claims wherein the Complaint Registration and Resolutions System for registering complaints of the customer, these complaints can be linked with the original transactions and based on the status of the transactions the system will take necessary action to resolve the complaint,
7. A system as claimed in claim 6, wherein the Dispute Management System can track the Disputed transaction, and the dispute life cycle, TAT and rules will be configured in the system, Outgoing files will be generated as per network requirement and settlement will be checked based on files received,
8. A system as claimed in above claims wherein the Credit card Management System will send transactions performed will be sent to credit card management system for billing purpose, also Debit card Management transactions performed by our debit card customer will be checked in core banking system whether customer account is debited or not,
9. A system as claimed in claim 8 wherein the Reconciliation System will perform reconciliation between following transactions,

10. A system and process as claimed in above claims wherein in Exceptions Handling accounting, Shadow ledger after the accounting processing General ledger will be maintain in the system with the closing balance followed by Gl Reconciliation System generated ledger will be reconciled with the bank CBS ledger, Trail balance System will generate trial balance report. MIS the system will generate a report will display day wise and transaction wise details and outstanding entries therein.