Claims:1. A method for conducting overdraft transactions, the method comprising:
receiving, by a server from a terminal device, first and second transaction counts stored in a transaction card memory of a transaction card of a cardholder, when an overdraft transaction is initiated at the terminal device by way of the transaction card;
receiving, by the server, transaction details of the overdraft transaction from the terminal device, wherein the transaction details include at least a transaction amount of the overdraft transaction;
processing, by the server, the overdraft transaction for approval or denial, based on at least the second transaction count and the transaction details; and
updating, by the server, the second transaction count by way of the terminal device, when the overdraft transaction is approved and an account linked to the transaction card has insufficient funds to cover the transaction amount.

2. The method of claim 1, wherein the first transaction count defines a maximum permissible value of the second transaction count, and wherein the second transaction count defines a count of the overdraft transactions that the cardholder is allowed to perform by using the transaction card when the account linked to the transaction card has insufficient funds.

3. The method of claim 1 or claim 2, further comprising receiving, by the server from the terminal device, a value of a per-transaction amount (PTA) stored on the transaction card memory, wherein the value of the PTA indicates a maximum line of credit available to the cardholder for the overdraft transaction, and wherein the overdraft transaction is further processed for approval or denial, based on the value of the PTA.

4. The method of any of claims 1 to 3, wherein the second transaction count is further updated by way of the terminal device, when the overdraft transaction is reconciled.

5. A method for conducting offline transactions, the method comprising:
reading, by a first terminal device while operating in an offline mode, at least first and second transaction counts from a transaction card memory of a transaction card of a cardholder, when an offline transaction is initiated at the first terminal device by way of the transaction card;
receiving, by the first terminal device, transaction details of the offline transaction, wherein the transaction details include at least a transaction amount of the offline transaction;
approving, by the first terminal device, the offline transaction based on at least the second transaction count and the transaction details; and
updating, by the first terminal device, the second transaction count stored in the transaction card memory based on the approval of the offline transaction.

6. The method of claim 5, wherein the first transaction count defines a maximum permissible value of the second transaction count, and wherein the second transaction count defines a count of the offline transactions that the cardholder is allowed to perform by using the transaction card.

7. The method of claim 5 or claim 6, further comprising reading, by the first terminal device, a value of per-transaction amount (PTA) stored in the transaction card memory, wherein the value of the PTA indicates a maximum line of credit available to the cardholder for the offline transaction.

8. The method of any of claims 5 to 7, further comprising storing, by the first terminal device, a first transaction indicator in the transaction card memory and a second transaction indicator in a terminal device memory associated with the first terminal device, when the offline transaction is approved, wherein the first and second transaction indicators indicate that the offline transaction is pending reconciliation.

9. The method of claim 8, further comprising transmitting, by the first terminal device while operating in an online mode, the second transaction indicator to an issuer server for reconciling the offline transaction, wherein the issuer server reconciles the offline transaction based on the second transaction indicator and the first transaction indicator, and wherein the first transaction indicator is read from the transaction card and transmitted to the issuer server by one of the first terminal device or a second terminal device.

10. The method of claim 9, further comprising deleting, by the first terminal device, the second transaction indicator from the terminal device memory, when the second transaction indicator is successfully transmitted to the issuer server.

11. The method of claim 9, wherein the first transaction indicator is deleted from the transaction card memory, when the first transaction indicator is successfully transmitted to the issuer server.

12. The method of any of claims 5 to 11, further comprising:
reading, by the first terminal device, encrypted authentication information of the cardholder from the transaction card memory, when the offline transaction is initiated at the first terminal device by using the transaction card;
decrypting, by the first terminal device, the encrypted authentication information;
receiving, by the first terminal device, authentication information submitted by the cardholder for initiating the offline transaction; and
authenticating, by the first terminal device, the cardholder based on a match between the authentication information submitted by the cardholder and the decrypted authentication information, wherein the first terminal device approves the offline transaction, when the cardholder is authenticated.

13. A system for conducting offline and overdraft transactions, the system comprising:
circuitry that is configured to:
receive first and second transaction counts stored in a transaction card memory of a transaction card of a cardholder, when a first transaction is initiated by way of the transaction card,
receive transaction details of the first transaction, wherein the transaction details include at least a transaction amount of the first transaction,
process the first transaction for approval or denial based on at least the second transaction count and the transaction details, and
update the second transaction count stored in the transaction card memory based on the approval of the first transaction.

14. The system of claim 13, wherein the first transaction count defines a maximum permissible value of the second transaction count, and wherein the second transaction count defines a count of the offline and overdraft transactions that the cardholder is allowed to perform by using the transaction card.

15. The system of claim 13 or claim 14, wherein the circuitry is further configured to:
receive a value of a per-transaction amount (PTA) stored in the transaction card memory, wherein the value of the PTA indicates a maximum line of credit available to the cardholder for the first transaction, and wherein the first transaction is further processed for approval or denial, based on the PTA.

16. The system of any of claims 13 to 15, wherein the circuitry is further configured to store a first transaction indicator in the transaction card memory and a second transaction indicator thereon, when the first transaction is approved, and wherein the first and second transaction indicators indicate that the first transaction is pending reconciliation.

17. The system of claim 16, wherein the circuitry is further configured to:
communicate the second transaction indicator to an issuer of the transaction card for reconciling the first transaction, and
delete the second transaction indicator, when the second transaction indicator is successfully communicated to the issuer.

18. The system of claim 16, wherein the circuitry is further configured to update the second transaction count based on the reconciliation of the first transaction.

19. The system of any of claims 13 to 15, wherein the circuitry is further configured to:
receive encrypted authentication information of the cardholder from the transaction card memory, when the first transaction is initiated by using the transaction card,
decrypt the encrypted authentication information,
receive authentication information submitted by the cardholder for initiating the first transaction, and
authenticate the cardholder based on a match between the authentication information submitted by the cardholder and the decrypted authentication information, wherein the first transaction is approved, when the cardholder is authenticated.

20. The system of any of claims 13 to 15, wherein the first transaction is at least one of an offline transaction or an overdraft transaction.
, Description:METHOD AND SYSTEM FOR CONDUCTING OVERDRAFT AND OFFLINE TRANSACTIONS

BACKGROUND

FIELD OF THE INVENTION

The present invention relates to a method and a system for conducting electronic transactions, and, more particularly to a method and a system for conducting offline and overdraft transactions.

DESCRIPTION OF THE RELATED ART

Technological advancements have led to emergence and evolution of a transaction system that uses card technologies for enabling customers to perform cashless transactions, such as deposits and withdrawals, credit transfers, purchase payments, and the like. The card technologies facilitate cashless transactions by way of transaction cards, such as credit and debit cards. Performing a cashless transaction at a terminal device, such as an automated teller machine (ATM) or a point-of-sale (POS) device, of the transaction system, requires a customer to use her transaction card at the terminal device. The terminal device reads information from the transaction card to initiate a request for the cashless transaction.
Many payment transaction systems rely at least partly on network connectivity when processing transactions. While such transaction systems have proliferated in urban and developed economies, these transaction systems can have challenges when implemented in less developed or rural areas, such as those in developing countries, for example. The lack of a highly developed network infrastructure, and consequently reduced network connectivity, in the less developed areas can present challenges for transaction systems. Further, economically disadvantaged individuals may be apprehensive about using transaction cards or making cashless transactions. Such individuals typically borrow, often at high rates of interest, from informal sources (such as moneylenders) to meet their financial needs.
In light of the foregoing, there exists a need for a transaction system that is capable of functioning in areas with limited network connectivity and one that, in the interest of financial inclusion, promotes cashless transactions.

SUMMARY
In an embodiment of the present invention, a method for conducting overdraft transactions is provided. The method includes receiving, by a server from a terminal device, at least first and second transaction counts stored in a transaction card memory of a transaction card when an overdraft transaction is initiated at the terminal device by way of the transaction card. Transaction details of the overdraft transaction are received by the server from the terminal device. The transaction details include a transaction amount of the overdraft transaction. The overdraft transaction is processed by the server for approval or denial based on the first and second transaction counts. The second transaction count is updated by the server by way of the terminal device when the overdraft transaction is approved and an account linked to the transaction card has insufficient funds to cover the transaction amount.
In another embodiment of the present invention, a method for conducting offline transactions is provided. The method includes reading, by a first terminal device while in an offline mode, at least first and second transaction counts stored in a transaction card memory of a transaction card, when an offline transaction is initiated at the first terminal device by way of the transaction card. Transaction details of the offline transaction are received by the terminal device. The transaction details include a transaction amount of the offline transaction. The offline transaction is approved by the terminal device based on at least the second transaction count and the transaction details. The second transaction count is updated by the terminal device based on the approval of the offline transaction.
In yet another embodiment of the present invention, a system for conducting offline and overdraft transactions is provided. The system includes circuitry that is configured to receive first and second transaction counts stored in a transaction card memory of a transaction card of a cardholder, when a first transaction is initiated by way of the transaction card. The circuitry is further configured to receive transaction details of the first transaction. The transaction details include at least a transaction amount of the first transaction. The circuitry is further configured to process the first transaction for approval or denial based on at least the second transaction count and the transaction details. The circuitry is further configured to update the second transaction count stored in the transaction card memory based on the approval of the first transaction.

BRIEF DESCRIPTION OF DRAWINGS

Various embodiments of the present invention are illustrated by way of example, and not limited by the appended figures, in which like references indicate similar elements, and in which:
FIG. 1 is a block diagram that illustrates an exemplary environment for conducting transactions, in accordance with an embodiment of the present invention;
FIG. 2A is a process flow diagram that illustrates an exemplary scenario for conducting an overdraft transaction, in accordance with an embodiment of the present invention;
FIG. 2B is a process flow diagram that illustrates an exemplary scenario where an overdraft transaction is declined, in accordance with an embodiment of the present invention;
FIG. 3A is a process flow diagram that illustrates an exemplary scenario for conducting an offline transaction, in accordance with an embodiment of the present invention;
FIG. 3B is a process flow diagram that illustrates an exemplary scenario where an offline transaction is declined, in accordance with an embodiment of the present invention;
FIG. 4 is a process flow diagram that illustrates an exemplary scenario where a terminal device of FIG. 1 synchronizes transaction details and transaction indicators of offline transactions with an issuer server of FIG. 1, in accordance with an embodiment of the present invention;
FIGS. 5A and 5B, collectively represent a process flow diagram that illustrates an exemplary scenario for reconciling an offline transaction, in accordance with an embodiment of the present invention;
FIG. 6 is table that illustrates various exemplary scenarios for reconciliation of offline transactions that are performed by way of a transaction card of FIG. 1, in accordance with an embodiment of the present invention;
FIGS. 7A and 7B, collectively represent a flow chart that illustrates a method for processing overdraft transactions, in accordance with an embodiment of the present invention;
FIGS. 8A and 8B, collectively represent a flow chart that illustrates a method for conducting an offline transaction, in accordance with an embodiment of the present invention;
FIG. 9 represents a flow chart that illustrates a method for reconciling an offline transaction conducted by a customer of FIG. 1 at the terminal device by using the transaction card, in accordance with an embodiment of the present invention;
FIG. 10 represents a high-level flow chart that illustrates a method for conducting an overdraft transaction, in accordance with an embodiment of the present invention;
FIG. 11 represents a high-level flow chart that illustrates a method for conducting an offline transaction, in accordance with another embodiment of the present invention;
FIG. 12 is a block diagram that illustrates the issuer server of the environment of FIG. 1, in accordance with an embodiment of the present invention;
FIG. 13 is a block diagram that illustrates the terminal device of the environment of FIG. 1, in accordance with an embodiment of the present invention;
FIG. 14 is a block diagram that illustrates the transaction card of the environment of FIG. 1, in accordance with an embodiment of the present invention; and
FIG. 15 is a block diagram that illustrates system architecture of a computer system, in accordance with an embodiment of the present invention.
Further areas of applicability of the present invention will become apparent from the detailed description provided hereinafter. It should be understood that the detailed description of exemplary embodiments is intended for illustration purposes only and is, therefore, not intended to necessarily limit the scope of the present invention.

DETAILED DESCRIPTION OF EMBODIMENTS

The present invention is best understood with reference to the detailed figures and description set forth herein. Various embodiments are discussed below with reference to the figures. However, those skilled in the art will readily appreciate that the detailed descriptions given herein with respect to the figures are simply for explanatory purposes as the methods and systems may extend beyond the described embodiments. In one example, the teachings presented and the needs of a particular application may yield multiple alternate and suitable approaches to implement the functionality of any detail described herein. Therefore, any approach may extend beyond the particular implementation choices in the following embodiments that are described and shown.
References to “an embodiment”, “another embodiment”, “yet another embodiment”, “one example”, “another example”, “yet another example”, “for example”, and so on, indicate that the embodiment(s) or example(s) so described may include a particular feature, structure, characteristic, property, element, or limitation, but that not every embodiment or example necessarily includes that particular feature, structure, characteristic, property, element or limitation. Furthermore, repeated use of the phrase “in an embodiment” does not necessarily refer to the same embodiment.
OVERVIEW
A customer may use a transaction card at a terminal device, such as an automated teller machine (ATM) or a point-of-sale (POS) device, for performing a transaction. For example, the customer may wish to withdraw cash at the ATM or make a payment at a merchant store of a merchant by way of a POS device of the merchant. In one exemplary scenario, the terminal device may have limited network connectivity, thereby hindering transactions at the terminal device and causing inconvenience to the customer attempting to perform the transaction. In another exemplary scenario, the customer may not have sufficient funds in her customer account to perform the transaction, thus preventing her from making the payment to the merchant.
Various embodiments of the present invention provide a method and a system that solve the abovementioned problems by enabling the customer to use her transaction card to perform overdraft and offline transactions. In one embodiment, the customer initiates the transaction at the terminal device, when the terminal device is operating in an online mode. The terminal device reads transaction card attributes (such as a first count, a second count, a per-transaction amount (PTA)) stored in the transaction card, when the customer is authenticated. The customer enters transaction details, such as a transaction amount, of the transaction. The terminal device communicates a first request to the issuer to process the transaction. The first request includes transaction card details, the transaction card attributes, and the transaction details. The issuer may process the transaction as a regular transaction if an account balance of the customer account covers the transaction amount. The issuer may flag the transaction as an overdraft transaction if the account balance of the customer account fails to cover the transaction amount. The difference between the transaction amount and the account balance of the customer is called an overdraft transaction amount. The issuer may approve or decline the overdraft transaction based on the transaction card attributes and the overdraft transaction amount. When the overdraft transaction amount is less than or equal to the PTA and a remaining overdraft limit of the customer account after taking the current overdraft transaction and current unsynchronized offline transactions into consideration is greater than or equal to ‘0’, the issuer may approve the overdraft transaction, else the transaction may be declined. The current unsynchronized offline transactions refer to offline transactions, performed by using the transaction card, that are yet to be synced and reconciled by the issuer. The issuer instructs the terminal device to update the second transaction count based on the approval of the overdraft transaction. The terminal device then decrements the second count as per the instructions of the issuer. The issuer may further update the second transaction count, when the customer remits the overdraft transaction amount to the customer account. The issuer may further update the first count and the PTA based on a credit history or transaction history of the customer.
In another embodiment, the customer initiates a transaction (i.e., an offline transaction) at the terminal device, when the terminal device is operating in an offline mode. The terminal device may operate in an offline mode due to limited network connectivity. In the offline mode, the customer is authenticated based on encrypted authentication information (such as a personal identification number or biometric information) of the customer stored in the transaction card. The terminal device reads the transaction card attributes from the transaction card and prompts the customer to provide transaction details (such as the transaction amount) of the offline transaction. The customer provides the transaction details to the terminal device. The terminal device may approve the offline transaction when the transaction amount is less than or equal to the PTA and the second transaction count is greater than the threshold value, else the offline transaction is declined. Upon approval of the offline transaction, the terminal device updates the second transaction count (i.e., decrements the second transaction count by one). The terminal device may store first and second transaction indicators (such as time-stamps indicating a time of the offline transaction) on a transaction card memory of the transaction card and a terminal device memory of the terminal device, respectively. The terminal device may also store, in the terminal device memory, the transaction details and transaction card details of the transaction card corresponding to the offline transaction. When the terminal device starts operating in the online mode, the terminal device synchronizes the second transaction indicator, the transaction details, and the transaction card details with the issuer. The issuer receives the first transaction indicator and the transaction card attributes when the customer uses the transaction card at any other terminal device operating in the online mode after the offline transaction has been performed. The issuer authorizes and reconciles the offline transaction based on the transaction details, the transaction card details, and the first and second transaction indicators. Further, the issuer may instruct the terminal device to update the second transaction count and delete the first and second transaction indicators. The issuer may further instruct the terminal device to update the first transaction count and the PTA.
Thus, the method and system of the present invention enables the customer to perform transactions at the terminal device by using the transaction card even when the terminal device has limited network connectivity with the associated acquirer. Also, the method and system promote financial inclusion by allowing the customer to perform overdraft transactions.
A transaction is an exchange of funds between two or more parties. For example, the transaction may include transferring a transaction amount from a customer to a merchant, when the customer makes a purchase from the merchant. In another example, the transaction may include dispensing cash, by an ATM, equivalent to a transaction amount debited from an account of the customer based on a request from the customer. The transaction is one of an online transaction or an offline transaction. The transaction is referred to as the online transaction when there exists a network connection between the terminal device and a corresponding acquirer. There are two categories of online transactions, i.e., regular transactions and overdraft transactions. The transaction is referred to as the offline transaction when the transaction is performed at the terminal device in the absence of network connectivity between the terminal device and the acquirer.
Regular transaction is a category of the online transactions in which a customer account from which the transaction is performed has sufficient funds to cover a transaction amount of the transaction.
Overdraft transaction is another category of the online transactions in which a transaction is authorized even when the customer account from which the transaction is performed fails to cover a transaction amount of the transaction.
Authentication information of a customer refers to details of the customer that uniquely identifies the customer. For example, the authentication information of the customer includes a personal identification number (PIN), biometric information of the customer, or a combination thereof. In one embodiment, the authentication information of the customer is stored on a transaction card of the customer in an encrypted format.
Transaction card is a payment means, such as a debit card, a credit card, a prepaid card, a promotional card, and/or a contactless card, that allows a cardholder to perform electronic transactions, such as deposits and withdrawals, credit transfers, purchase payments, and the like. In an embodiment, the transaction card may be radio frequency identification (RFID) or near field communication (NFC) enabled for performing contactless payments. The transaction card is issued to the cardholder by an issuer.
Merchant is an entity that offers various products and/or services in exchange for payments. The merchant may establish a merchant account with a financial institution, such as an acquirer to accept the payments from several customers by use of one or more payment methods. The merchant may accept payments by means of cash or cashless transactions. In a cashless transaction, the merchant uses a terminal device, such as a POS device, a mobile POS (MPOS) device, a point-of-interaction (POI) device, a point-of-purchase (POP) device, for receiving a payment from a customer.
Issuer is a financial institution which establishes and maintains customer accounts of several customers. The issuer authorizes transactions in accordance with various payment network regulations and local legislation.
Payment networks, such as those operated by Mastercard®, process transactions between acquirers and issuers. Processing by a payment network includes steps of authorization, clearing, and settlement.
Server is a physical or cloud data processing system on which a server program runs. The server may be implemented in hardware or software, or a combination thereof. In one embodiment, the server may be implemented in computer programs executing on programmable computers, such as personal computers, laptops, or a network of computer systems. The server may correspond to one of a payment network server, an issuer server, an acquirer server, or a merchant server.
Terminal device is an electronic device that enables a customer to perform electronic transactions. Examples of the terminal device include an ATM, a POS device, an MPOS device, a POI device, a POP device, or the like. The terminal device may be capable of operating in two modes such as an online mode (i.e., when the terminal device has network connectivity with an acquirer of the terminal device) or an offline mode (i.e., when there is no network connectivity between the terminal device and the acquirer). While operating in the offline mode, the terminal device allows customers to perform offline transactions.
Transaction indicator uniquely identifies an offline transaction performed at the terminal device by way of a transaction card. In one embodiment, the transaction indicator is a time-stamp that represents a time and date of the offline transaction. When the offline transaction is approved by the terminal device, the terminal device stores the transaction indicator in a transaction card memory of the transaction card and a terminal device memory of the terminal device.
First count is a first numerical value stored on a transaction card memory of a transaction card. The first count indicates a maximum permissible value of a second count.
Second count is a second numerical value stored on a transaction card memory of a transaction card. The second count indicates a count of offline and overdraft transactions available to a cardholder of the transaction card.
Per-transaction amount (PTA) is a numerical value stored on a transaction card memory of a transaction card. The PTA represents a maximum line of credit available to a cardholder of the transaction card for each overdraft and offline transaction performed by using the transaction card.
Reconciliation of an offline transaction is performed by an issuer of the transaction card. For example, the issuer reconciles an offline transaction performed by a customer at a terminal device when transaction indicators stored in memories of the transaction card and the terminal device corresponding to the offline transaction are synchronized with the issuer.
FIG. 1 is a block diagram that illustrates an exemplary environment 100 for conducting transactions, in accordance with an embodiment of the present invention. The environment 100 includes a customer 102 in possession of a transaction card 104. The environment 100 further includes a terminal device 106, a merchant server 108, an acquirer server 110, a payment network server 112, and an issuer server 114. The terminal device 106, the merchant server 108, the acquirer server 110, the payment network server 112, and the issuer server 114 may communicate with each other by way of a communication network 116 or through separate communication networks established therebetween.
The customer 102 is an individual, who is an account holder of a customer account. The customer account may be maintained at a financial institution, such as an issuer. The issuer issues the transaction card 104 to the customer 102 (i.e., the customer 102 is the cardholder of the transaction card 104). In one embodiment, the transaction card 104 is a physical card. In another embodiment, the transaction card 104 is a virtual card that is stored as data in a memory (not shown) of a customer device (not shown) of the customer 102. Examples of the transaction card 104 include a credit card, a debit card, a charge card, a prepaid card, a gift card, an electronic cash card, or the like. The transaction card 104 is linked to the customer account and includes a transaction card memory that stores various transaction card attributes and information of the customer account (hereinafter referred to as “account information”). The transaction card memory may be implemented by way of an electronic chip or a machine readable magnetic strip embedded in the transaction card 104. The account information may include an account number, a name of an account holder (i.e., a name of the customer 102), or the like. The transaction card attributes include a threshold count (TC) (i.e., a first count), a transaction availability count (TAC) (i.e., a second count), and a per-transaction amount (PTA). The TC is a variable stored in the transaction card memory for indicating a maximum permissible value of the TAC. The TAC is another variable stored in the transaction card memory for defining a count of offline and overdraft transactions that the customer 102 is allowed to perform by using the transaction card 104. The PTA is yet another variable stored in the transaction card memory for defining a maximum line of credit available to the customer 102 for performing an offline or overdraft transaction by using the transaction card 104.
The issuer that issues the transaction card 104 to the customer 102 is responsible for initializing the TC, TAC, and PTA at the time of issuance of the transaction card 104. In a non-limiting example, both the TC and the TAC may be initialized to ‘4’ and the PTA may be initialized to ‘$50’ by the issuer. The TAC is subjected to an update when the customer 102 performs any offline or overdraft transaction by way of the transaction card 104. For example, when the customer 102 performs a first offline transaction by way of the transaction card 104, the TAC is decremented to ‘3’. If the customer 102 performs another offline transaction or an overdraft transaction before the reconciliation of the first offline transaction, the TAC is further decremented from ‘3’ to ‘2’. The TAC is further updated based on the reconciliation of the offline and overdraft transactions. For example, the TAC having the value ‘2’ is incremented to ‘4’, when both the previous transactions are reconciled. However, the TAC having the value ‘2’ is incremented to ‘3’, when only one of the previous transactions is reconciled. If the TAC is ‘0’, the customer 102 may not be allowed to perform any more offline or overdraft transactions by using the transaction card 104 until the previous transactions are reconciled and the TAC becomes greater than ‘0’.
Update to the TC and PTA is independent of the offline or overdraft transactions performed by way of the transaction card 104. The TC and PTA can be updated only at the discretion of the issuer that issues the transaction card 104 to the customer 102. The issuer updates the TC and PTA based on various customer parameters, such as a credit history of the customer 102, an account balance of the customer account of the customer 102, a transaction history of the customer 102, and the like. Any update to the TC results in an update of the TAC as well. For example, the TC is ‘4’ and the TAC is ‘2’ when the customer 102 performs two offline transactions, which are yet to be reconciled, by using the transaction card 104. Thus, if the issuer updates the TC to ‘5’, the TAC gets updated to ‘3’. However, if the issuer updates the TC to ‘2’, the TAC becomes ‘0’. Any update in the PTA may result in an update to the TAC as well. For example, the TC is ‘5’, the PTA is ‘$50’, and the TAC is ‘2’ indicating that the customer 102 has already performed three offline or overdraft transactions each amounting to a maximum of ‘$50’. Therefore, from a total overdraft limit of ‘$250’ (i.e., TC * PTA), the customer 102 has used ‘$150’ (i.e., (TC-TAC) * PTA) and thus remaining overdraft limit is ‘$100’. Now, if the issuer updates the PTA to ‘$20’, new overdraft limit becomes ‘$100’ (i.e., TC * new PTA). Since the customer 102 has already used ‘$150’ as overdraft, which is greater than the new overdraft limit, the TAC is updated from ‘2’ to ‘0’ indicating that the customer 102 has exceeded the new overdraft limit applicable to her. In a similar example, if the issuer updates the PTA to ‘$100’, the new overdraft limit becomes ‘$500’ (i.e., TC * new PTA). Since the customer 102 has already used ‘$150’ as the overdraft, the remaining overdraft limit is ‘$350’. Thus, the TAC is updated from ‘2’ to ‘3’.
The transaction card memory is further capable of storing a unique transaction indicator for each offline transaction performed by way of the transaction card 104. The transaction indicator corresponding to an offline transaction performed by way of the transaction card 104 indicates that the offline transaction is pending reconciliation. In one example, the transaction indicator is a time-stamp which indicates a time and date of the offline transaction. Thus, a number of transaction indicators stored in the transaction card memory indicates the number of offline transactions performed, by way of the transaction card 104, that are yet to be reconciled.
When the customer 102 initiates a transaction (i.e., an offline or online transaction) by using the transaction card 104, the customer 102 is authenticated based on at least one of a primary personal identification number (PIN), a secondary PIN, or biometric information (i.e., such as fingerprint, iris scan, faceprint, or the like) of the customer 102. The primary PIN may be known only to the customer 102 and the issuer. The secondary PIN and the biometric information are stored in the transaction card memory in an encrypted format and the secondary PIN is also known to the customer 102. The primary PIN and the secondary PIN may or may not be same. While performing an online transaction by way of the transaction card 104, the customer 102 may use any of the primary PIN, the secondary PIN, or the biometric information to confirm her identity. The customer 102 may use the secondary PIN, the biometric information, or a combination thereof to confirm her identity while performing an offline transaction by way of the transaction card 104. The transaction card 104, commonly, has a unique card number, an expiry date, a card security code, and a card type associated with it. The card number, the expiry date, the card security code, and the card type constitute transaction card details of the transaction card 104.
The terminal device 106 is an electronic device that enables the customer 102 to perform various transactions from the customer account by using the transaction card 104. The terminal device 106 is installed by an acquirer. Examples of the terminal device 106 include an ATM, a POS device, an MPOS device, a POI device, a POP device, or the like. The terminal device 106 is capable of operating in two modes such as an online mode (i.e., when the terminal device 106 has network connectivity with the acquirer server 110) or an offline mode (i.e., when the terminal device 106 has no network connectivity with the acquirer server 110). The customer 102 may initiate an online transaction (i.e., an overdraft transaction or a regular transaction) at the terminal device 106 by using the transaction card 104, when the terminal device 106 is operating in the online mode. The customer 102 may initiate an offline transaction at the terminal device 106 by using the transaction card 104, when the terminal device 106 is operating in the offline mode. Also, the customer 102 may use the transaction card 104 at the terminal device 106, when the terminal device 106 is operating in the online mode, to synchronize various offline transactions performed by way of the transaction card 104 with the issuer server 114.
The terminal device 106 may include a mechanism to read and decrypt the secondary PIN or the biometric information, stored in the transaction card memory, when the customer 102 opts to use the secondary PIN or the biometric information, respectively, to confirm her identity for performing an offline or online transaction at the terminal device 106. Further, the terminal device 106 is capable of reading the transaction card attributes of the transaction card 104, when the customer 102 uses the transaction card 104 at the terminal device 106. The terminal device 106 may approve or decline the offline transaction, based on the transaction card attributes of the transaction card 104. When operating in the offline mode, the terminal device 106 may update the TAC of the transaction card 104 upon completion of the offline transaction. The terminal device 106 may further store first and second transaction indicators (such as a time-stamps indicating a time and date of the offline transaction) in the transaction card memory and a terminal device memory of the terminal device 106, respectively. The first and second transaction indicators are the same. The terminal device 106 further stores transaction details (such as a transaction amount, a transaction identification number, and the transaction card details) of the offline transaction on the terminal device memory. The terminal device memory may store multiple transaction indicators, similar to the second transaction indicator, and transaction details that correspond to other offline transactions performed at the terminal device 106. When the customer 102 uses the transaction card 104 at the terminal device 106 operating in the online mode, the terminal device 106 may update any of the transaction card attributes (such as the TC, the TAC, or the PTA) based on instructions received from the issuer server 114. The terminal device 106, while operating in the online mode, synchronizes the transaction indicators and the transaction details stored in the terminal device memory with issuer servers that correspond to the offline transactions performed at the terminal device 106 for reconciling the offline transactions.
The merchant server 108 is a computing server that is associated with a merchant (not shown). The merchant may establish a merchant account with another financial institution, such as an acquirer, to accept payments for products and/or services purchased and/or availed by various customers from the merchant. In one embodiment, the merchant may possess the terminal device 106 which is a POS device, a POP device, or a POI device. The merchant server 108 processes transactions performed at the terminal device 106 by various customers for making purchases from the merchant. The merchant server 108 further maintains a purchase history of each customer who makes a purchase from the merchant. For example, the purchase history of the customer 102 maintained by the merchant server 108 may represent details of all previous purchases made by the customer 102 from the merchant. The details of a purchase may include a purchase order ID, a transaction amount for the purchase, a purchase date. The purchase order ID is a unique identifier assigned to each purchase. The transaction amount represents an amount paid by the customer 102 to make the purchase. The purchase date represents a date on which the customer 102 made the purchase.
The acquirer server 110 is a computing server that is associated with the acquirer. The acquirer server 110 processes transactions initiated at various terminal devices, such as the terminal device 106, associated therewith. The acquirer server 110 further communicates transactions details to payment networks or issuers, by way of the communication network 116. The acquirer server 110 credits or debits merchant accounts of various merchants that are established with the acquirer. The payment network server 112 is a computing server that is associated with a payment network association of various transaction cards.
The issuer server 114 is a computing server that is associated with the issuer. The issuer may be a financial institution that manages customer accounts of multiple customers and issues transaction cards to the customers. Account details of the customer accounts established with the issuer are stored as account profiles in a memory of the issuer server 114 or on a cloud server associated with the issuer server 114. The account details may include an account balance, a credit line, details of an account holder, a transaction history of the account holder, account information, a credit history of the account holder, or the like. The issuer server 114 credits and debits the customer accounts when corresponding transactions are processed. Methods for crediting and debiting customer accounts via the issuer server 114 will be apparent to persons having skill in the art and may include processing via the traditional four-party system or the traditional three-party system.
The issuer server 114 provides the primary and secondary PINs to the customer 102 and stores the secondary PIN and/or the biometric information of the customer 102 in the transaction card memory of the transaction card 104 in an encrypted format. At the time of issuance of the transaction card 104 to the customer 102, the issuer server 114 initializes the TC, the TAC, and the PTA. The initialization of the TC, the TAC, and the PTA for the transaction card 104 is based on the customer parameters, such as the credit history, of the customer 102. Thus, TC, TAC, and PTA may be different for different customers. The issuer server 114 may further update the TC, the TAC, and the PTA of the transaction card 104 based on updates in the credit history, the transaction history, or the account balance of the customer account of the customer 102.
The issuer server 114 determines the rights of entities (such as the terminal device 106) to update the transaction card attributes. In one embodiment, the issuer server 114 grants the terminal device 106 permission to update only the TAC of the transaction card 104, when the terminal device 106 operates in the offline mode. The issuer server 114 may further grant the terminal device 106 permission to update any of the transaction card attributes of the transaction card 104 based on the instructions received from the issuer server 114, when the transaction card 104 is used at the terminal device 106 while the terminal device 106 is operating in the online mode.
The issuer server 114 further receives the first transaction indicator stored in the transaction card memory of the transaction card 104, when the customer 102 uses the transaction card 104 at the terminal device 106 that is operating in the online mode after performing the offline transaction. The issuer server 114 receives the second transaction indicator stored in the terminal device memory of the terminal device 106 when the terminal device 106 begins operating in the online mode after the offline transaction has been performed. The issuer server 114 instructs the terminal device 106 to delete the second transaction indicator from the terminal device memory of the terminal device 106 after the issuer server 114 receives the second transaction indicator. The issuer server 114 further instructs the terminal device 106 to delete the first transaction indicator from the transaction card memory. The issuer server 114 authorizes and reconciles the offline transaction based on the first transaction indicator and the second transaction indicator. It will be apparent to a person having ordinary skill in the art that other offline transactions performed at the terminal device 106 are reconciled in a manner similar to the reconciliation of the offline transaction performed by using the transaction card 104. Further, it will be apparent to those skilled in the art that the customer 102 can use the transaction card 104 at any other terminal device operating in the online mode to synchronize the first transaction indicator with the issuer server 114.
Examples of the merchant server 108, the acquirer server 110, the payment network server 112, and the issuer server 114 include, but are not limited to, computers, laptops, mini-computers, mainframe computers, any non-transient and tangible machines that can execute a machine-readable code, cloud-based servers, distributed server networks, a network of computer systems, or a combination thereof.
The communication network 116 is a medium through which content and messages are transmitted between the terminal device 106, the merchant server 108, the acquirer server 110, the payment network server 112, the issuer server 114, and other entities that are pursuant to one or more standards for the interchange of transaction messages, such as the ISO8583 standard. Examples of the communication network 116 include, but are not limited to, a wireless fidelity (Wi-Fi) network, a light fidelity (Li-Fi) network, a local area network (LAN), a wide area network (WAN), a metropolitan area network (MAN), a satellite network, the Internet, a fiber optic network, a coaxial cable network, an infrared (IR) network, a radio frequency (RF) network, and combinations thereof. Various entities in the environment 100 may connect to the communication network 116 in accordance with various wired and wireless communication protocols, such as Transmission Control Protocol and Internet Protocol (TCP/IP), User Datagram Protocol (UDP), 2nd Generation (2G), 3rd Generation (3G), 4th Generation (4G), 5th Generation (5G) communication protocols, Long Term Evolution (LTE) communication protocols, or any combination thereof.
FIG. 2A is a process flow diagram 200A that illustrates an exemplary scenario for conducting an overdraft transaction, in accordance with an embodiment of the present invention. The process flow diagram 200A involves the customer 102, the transaction card 104, the terminal device 106, the acquirer server 110, the payment network server 112, and the issuer server 114.
When the customer 102 performs an online transaction by using the transaction card 104 at the terminal device 106, the terminal device 106 reads the transaction card details of the transaction card 104 (as shown by arrow 202). The terminal device 106 may prompt the customer 102 to authenticate herself. For authentication, the customer 102 enters the authentication information (such as the primary PIN, the secondary PIN, or the biometric information) at the terminal device 106 (as shown by arrow 204).
In one embodiment, the customer 102 provides the primary PIN as the authentication information. In such a scenario, the terminal device 106 transmits an authentication request to the issuer server 114 by using an existing acquirer and payment network channel (i.e., a network channel formed by the acquirer server 110 and the payment network server 112) for authenticating the customer 102 (as shown by arrows 206a, 206b, and 206c). The authentication request includes the transaction card details of the transaction card 104 and the primary PIN provided by the customer 102. The issuer server 114 receives the authentication request and authenticates the customer 102 by matching the primary PIN provided by the customer 102 against the primary PIN of the customer 102 stored in a first memory of the issuer server 114 (as shown by arrow 208). The authentication of the customer 102 is successful when the primary PIN provided by the customer 102 matches the primary PIN of the customer 102 stored in the first memory. Upon successful authentication, the issuer server 114 notifies the terminal device 106 that the customer 102 is authenticated.
In another embodiment, the customer 102 may provide the secondary PIN or the biometric information as the authentication information. In such a scenario, the terminal device 106 reads and decrypts the encrypted secondary PIN or the biometric information stored in the transaction card memory. The terminal device 106 then authenticates the customer 102 by matching the secondary PIN or the biometric information provided by the customer 102 against the decrypted secondary PIN or the decrypted biometric information, respectively. The terminal device 106 notifies the issuer server 114 that the customer 102 is authenticated when the secondary PIN or the biometric information provided by the customer 102 matches the decrypted secondary PIN or the decrypted biometric information, respectively.
Upon successful authentication, the terminal device 106 reads the transaction card attributes (such as the TC, the TAC, and the PTA) stored in the transaction card memory (as shown by arrow 210). In one embodiment, the terminal device 106 further reads transaction indicators that correspond to offline transactions previously conducted by the customer 102 by using the transaction card 104. The terminal device 106 then prompts the customer 102 to provide the transaction details, such as a transaction amount, of the online transaction. The customer 102 enters the transaction details at the terminal device 106 (as shown the arrow 212). The terminal device 106 communicates a transaction request to the acquirer server 110 (as shown by arrow 214a). The transaction request is pursuant to the one or more standards for the interchange of transaction messages (such as the ISO8583 standard) and includes the transaction card attributes of the transaction card 104 and the transaction details. In one embodiment, the transaction request further includes the transaction indicators corresponding to the offline transactions previously conducted by the customer 102. The acquirer server 110 communicates the transaction request to the payment network server 112 (as shown by arrow 214b) and the payment network server 112 further communicates the transaction request to the issuer server 114 (as shown by arrow 214c). The issuer server 114 receives the transaction request. The transaction indicators included in the transaction request are synchronized with the issuer server 114. Based on the transaction indicators, the issuer server 114 may reconcile the previous offline transactions either partially or completely. Based on the partial or complete reconciliation of the offline transactions, the issuer server 114 determines a presumed balance of the customer account linked to the transaction card 104. The presumed balance is a tentative account balance of the customer account by taking into consideration all the previous unsynchronized offline transactions that are yet to be reconciled. Reconciliation of offline transactions is described in conjunction with FIGS. 5A and 5B. In one scenario where there are no unsynchronized offline transactions, the presumed balance is same as the account balance of the customer account linked to the transaction card 104.
The issuer server 114 then checks whether the online transaction is a regular transaction or an overdraft transaction. For checking whether the online transaction is a regular transaction or an overdraft transaction, the issuer server 114 determines a new presumed balance of the customer account by taking into consideration the transaction amount of the current online transaction and the previously determined presumed balance. For example, if the previous presumed balance is ‘$200’ and the transaction amount is ‘$40’, the new presumed balance for the current online transaction is ‘$160’. In another example, if the previous presumed balance is ‘- $200’ and the transaction amount is ‘$40’, the presumed balance for the current online transaction is ‘- $240’. If the new presumed balance of the customer account is less than zero, the issuer server 114 flags the online transaction as an overdraft transaction, else the online transaction is processed as a regular transaction. In a non-limiting example, it is assumed that the new presumed balance of the customer account is less than zero and thus the online transaction is an overdraft transaction. Once the online transaction is flagged as the overdraft transaction, the issuer server 114 may approve or decline the overdraft transaction.
For approving the overdraft transaction, the issuer server 114 determines an overdraft transaction amount for the overdraft transaction. In a scenario where the previous presumed balance is less than or equal to zero, the transaction amount becomes the overdraft transaction amount for the overdraft transaction. For example, if the previous presumed balance is ‘- $20’ and the transaction amount is ‘$40’, ‘$40’ becomes the overdraft transaction amount. In another scenario where the previous presumed balance is greater than zero, a difference between the transaction amount and the previous presumed balance corresponds to the overdraft transaction amount. For example, if the previous presumed balance is ‘$20’ and the transaction amount is ‘$40’, ‘- $20’ becomes the overdraft transaction amount for the current online transaction. The issuer server 114 approves the overdraft transaction, when the PTA is greater than or equal to the overdraft transaction amount and a remaining overdraft limit after considering the current online transaction is greater than or equal to zero. The remaining overdraft limit is a difference between an overdraft limit (i.e., TC * PTA) of the transaction card 104 and an overdraft limit that may be availed by the customer 102 if the current online transaction were approved. For example, when the PTA is ‘$50’, the overdraft transaction amount is ‘$30’, and the remaining overdraft limit is ‘$40’, the issuer server 114 approves the overdraft transaction. The issuer server 114 declines the overdraft transaction, when the PTA is less than the overdraft transaction amount or the remaining overdraft limit after considering the current online transaction is less than or equal to zero. In one example, when the PTA is ‘$50’, the remaining overdraft limit is ‘$40’, and the overdraft transaction amount is ‘$60’, the issuer server 114 declines the overdraft transaction. In another example, when the PTA is ‘$50’, the remaining overdraft limit is ‘- $10’, and the overdraft transaction amount is ‘$40’, the issuer server 114 declines the overdraft transaction. The process flow diagram 200A illustrates the scenario where the issuer server 114 approves the overdraft transaction (as shown by arrow 216).
The issuer server 114 communicates a transaction-approved response to the payment network server 112 indicating that the overdraft transaction is approved (as shown by arrow 218a). The transaction-approved response includes instructions, from the issuer server 114 to the terminal device 106, to decrement the TAC. The payment network server 112 communicates the transaction-approved response to the acquirer server 110 (as shown by arrow 218b) and the acquirer server 110 communicates the transaction-approved response to the terminal device 106 (as shown by arrow 218c).
The terminal device 106 decrements the TAC as per the instructions of the issuer server 114 (as shown by arrow 220). For example, the TAC may have a value ‘3’ and based on the instructions of the issuer server 114, the terminal device 106 decrements the TAC to ‘2’. The decrement in the TAC indicates that the overdraft transaction is approved and the count of offline and overdraft transactions available to the customer 102 is reduced from ‘3’ to ‘2’.
In one embodiment, when the customer 102 remits an amount equivalent to the availed overdraft limit to the customer account linked to the transaction card 104, the issuer server 114 adjusts the TAC accordingly. The updates in the TAC are reflected to the transaction card 104 when the customer 102 uses the transaction card 104 at any terminal device (such as the terminal device 106) that is operating in the online mode. In one scenario the customer 102 may visit an institutional branch of the issuer for remitting the amount equivalent to the availed overdraft limit and getting the TAC of the transaction card 104 updated.
In one embodiment, the issuer server 114 may further instruct the terminal device 106 to update the other transaction card attributes, such as the TC and the PTA, and reflect the changes in the TAC as well, without deviating from the scope of the invention.
FIG. 2B is a process flow diagram 200B that illustrates an exemplary scenario where the overdraft transaction initiated at the terminal device 106 by using the transaction card 104 is declined, in accordance with an embodiment of the present invention. The process flow diagram 200B involves the customer 102, the transaction card 104, the terminal device 106, the acquirer server 110, the payment network server 112, and the issuer server 114.
In process flow diagram 200B, the issuer server 114 declines the overdraft transaction (as shown by arrow 222). The issuer server 114 may decline the overdraft transaction if the overdraft transaction amount exceeds the PTA or the remaining overdraft limit after considering the current online transaction is less than zero. The issuer server 114 communicates a transaction-declined response to the payment network server 112 (as shown by arrow 224a). The payment network server 112 communicates the transaction-declined response to the acquirer server 110 (as shown by arrow 224b) and the acquirer server 110 communicates the transaction-declined response to the terminal device 106 (as shown by arrow 224c). The transaction-declined response may include a message stating a reason for the overdraft transaction getting declined. The terminal device 106 may present a transaction-declined notification to the customer 102 to inform that the transaction is declined (as shown by arrow 226).
FIG. 3A is a process flow diagram 300A that illustrates an exemplary scenario for conducting an offline transaction, in accordance with an embodiment of the present invention. The process flow diagram 300A includes the customer 102, the transaction card 104, and the terminal device 106.
For performing the offline transaction, the customer 102 uses the transaction card 104 at the terminal device 106 that is operating in the offline mode (as shown by arrow 302). The terminal device 106 reads the transaction card details of the transaction card 104 and prompts the customer 102 to authenticate herself. For authentication, the customer 102 enters the authentication information (such as the secondary PIN or the biometric information) at the terminal device 106 (as shown by arrow 304).
The terminal device 106 reads and decrypts the encrypted secondary PIN or the encrypted biometric information stored in the transaction card memory. The terminal device 106 then authenticates the customer 102 by matching the secondary PIN or the biometric information entered by the customer 102 against the decrypted secondary PIN or the decrypted biometric information, respectively (as shown by arrow 306). The customer 102 is successfully authenticated if the secondary PIN or the biometric information entered by the customer 102 matches the decrypted secondary PIN or the decrypted biometric information, respectively.
Upon successful authentication, the terminal device 106 reads the transaction card attributes (such as the TC, the TAC, and the PTA) stored in the transaction card memory (as shown by arrow 308). The terminal device 106 then prompts the customer 102 to provide the transaction details, such as the transaction amount, of the offline transaction. The customer 102 enters the transaction details at the terminal device 106 (as shown the arrow 310). The terminal device 106 may approve or decline the offline transaction based on the TAC and the PTA. The terminal device 106 approves the offline transaction if the TAC is greater than the threshold value (i.e., ‘0’) and the transaction amount of the offline transaction is less than or equal to the PTA. The terminal device 106 declines the offline transaction if the TAC is less than or equal to the threshold value (i.e., ‘0’) or the transaction amount of the offline transaction is greater than the PTA. The process flow diagram 300A illustrates the scenario where the terminal device 106 approves the offline transaction (as shown by arrow 312).
When the offline transaction is approved, the terminal device 106 updates the TAC (as shown by arrow 314). For example, the TAC may have a value ‘5’ and based on the approval of the offline transaction, the terminal device 106 decrements the TAC to ‘4’. The decrement in the TAC indicates that the offline transaction is approved and the count of offline and overdraft transactions available to the customer 102 is reduced from ‘5’ to ‘4’. The terminal device 106 further writes the first transaction indicator to the transaction card memory of the transaction card 104 and stores the second transaction indicator on the terminal device memory of the terminal device 106 (as shown by arrows 316 and 318, respectively). Reconciliation of the offline transaction is explained in detail in FIGS. 4, 5A, 5B, and 6 .
FIG. 3B is a process flow diagram 300B that illustrates an exemplary scenario where the offline transaction initiated at the terminal device 106 by using the transaction card 104 is declined, in accordance with an embodiment of the present invention. The process flow diagram 300B includes the customer 102, the transaction card 104, and the terminal device 106. In the process flow diagram 300B, the terminal device 106 declines the offline transaction (as shown by arrow 320). The terminal device 106 may decline the offline transaction, when the PTA is less than the transaction amount or the TAC is equal to the threshold value (i.e., ‘0’). The terminal device 106 may present the transaction-declined notification to the customer 102, informing the customer 102 that offline transaction is declined (as shown by arrow 322).
FIG. 4 is a process flow diagram 400 that illustrates an exemplary scenario where the terminal device 106 synchronizes transaction details and transaction indicators of offline transactions performed at the terminal device 106 with the issuer server 114, in accordance with an embodiment of the present invention. The process flow diagram 400 includes the terminal device 106, the acquirer server 110, the payment network server 112, and the issuer server 114.
When the terminal device 106 has a network connectivity with the acquirer, the terminal device 106 enters the online mode. In the online mode, the terminal device 106 synchronizes the transaction details and the second transaction indicator of the offline transaction (as described in FIG. 3A) with the issuer server 114 by way of the existing acquirer and payment network channel. For synchronizing the transaction details and the second transaction indicator, the terminal device 106 communicates a first request to the issuer server 114 by way of the acquirer server 110 and the payment network server 112 (as shown by arrows 402a, 402b, and 402c, respectively). The first request includes the transaction details and the second transaction indicator that correspond to the offline transaction performed by way of the transaction card 104.
Upon receiving the first request, the issuer server 114 authorizes the offline transaction (as shown by arrow 404) and stores the transaction details and the second transaction indicator in the first memory (as shown by arrow 406). The issuer server 114 may send a notification (not shown) to the terminal device 106, informing the terminal device 106 that the transaction details and the second transaction indicator of the offline transaction have been synchronized. Consequently, the terminal device 106 deletes the transaction details and the second transaction indicator from the terminal device memory (as shown by arrow 408).
It will be apparent to a person having ordinary skill in the art that the terminal device 106 synchronizes transaction details and transaction indicators of all offline transactions performed at the terminal device 106 in a similar manner as described in the foregoing, without deviating from the scope of the invention.
FIGS. 5A and 5B, collectively represent a process flow diagram 500 that illustrates an exemplary scenario for reconciling an offline transaction, in accordance with an embodiment of the present invention. The process flow diagram 500 includes the customer 102, the transaction card 104, the terminal device 106, the acquirer server 110, the payment network server 112, and the issuer server 114. For the sake of simplicity, the reconciliation process is explained with respect to the offline transaction performed at the terminal device 106 by way of the transaction card 104 (as explained in the foregoing in FIG. 3A). In a non-limiting example, it is assumed that the terminal device 106 has already synchronized the transaction details and the second transaction indicator of the offline transaction with the issuer server 114 (as explained in FIG. 4).
In the process flow diagram 500, the customer 102 uses the transaction card 104 at the terminal device 106 when the terminal device 106 is operating in the online mode (as shown by arrow 502). The terminal device 106 reads the transaction card details of the transaction card 104 and prompts the customer 102 to authenticate herself. For authentication, the customer 102 enters the authentication information (such as the primary PIN, the secondary PIN, or the biometric information) at the terminal device 106 (as shown by arrow 504).
In one embodiment, the customer 102 may enter the primary PIN as the authentication information. In such a scenario, the terminal device 106 transmits the authentication request to the issuer server 114 by using the existing acquirer and payment network channel (i.e., the existing acquirer and payment network channel is formed by the acquirer server 110 and the payment network server 112) for authenticating the customer 102 (as shown by arrow 506a, 506b, and 506c). The authentication request includes the transaction card details of the transaction card 104 and the primary PIN entered by the customer 102. The issuer server 114 receives the authentication request and authenticates the customer 102 (as shown by arrow 508). Upon successful authentication, the issuer server 114 notifies the terminal device 106 that the customer 102 is authenticated.
In another embodiment, the customer 102 may enter the secondary PIN or the biometric information as the authentication information. In such a scenario, the terminal device 106 reads and decrypts the encrypted secondary PIN or the encrypted biometric information (i.e., the encrypted authentication information) stored in the transaction card memory. The terminal device 106 authenticates the customer 102 when the secondary PIN or the biometric information entered by the customer 102 matches the decrypted secondary PIN or the decrypted biometric information, respectively.
Upon successful authentication, the terminal device 106 reads the transaction card attributes (such as the TC, the TAC, and the PTA) and the first transaction indicator stored in the transaction card memory (as shown by arrow 510). The terminal device 106 then transmits the transaction card attributes and the first transaction indicator to the issuer server 114 by way of the acquirer server 110 and the payment network server 112 (as shown by arrows 512a, 512b, and 512c, respectively). When the first transaction indicator for the offline transaction is received, the issuer server 114 checks whether the transaction details and the second transaction indicator corresponding to the offline transaction have been received. In this scenario, the terminal device 106 has already synchronized the transaction details and the second transaction indicator with the issuer server 114. The issuer server 114 matches the first transaction indicator with the second transaction indicator to confirm the validity of the offline transaction (as shown by arrow 514). Based on the match between the first transaction indicator and the second transaction indicator, the issuer server 114 proceeds to reconcile the offline transaction. The issuer server 114 may debit an amount equivalent to the transaction amount of the offline transaction from the customer account of the customer 102 (as shown by arrow 516). In a scenario where the customer account of the customer 102 has insufficient funds, the overdraft facility is availed.
In one embodiment, the issuer server 114 may not have received the second transaction indicator when the first transaction indicator is synchronized. In such a scenario, the offline transaction is not reconciled and the issuer server 114 determines a presumed balance for the customer account based on the synchronization of the first transaction indicator. In such a scenario the presumed balance for the customer account indicates a tentative account balance of the customer account if the offline transaction were reconciled. In one embodiment, when the account balance of the customer account is sufficient to cover the transaction amount of the offline transaction, the presumed balance is greater than or equal to zero. In another embodiment, when the account balance of the customer account is insufficient to cover the transaction amount of the offline transaction, the presumed balance is less than zero. Various exemplary scenarios pertaining to the reconciliation of offline transactions have been explained later in conjunction with FIG. 6.
Based on the reconciliation of the offline transaction, the issuer server 114 transmits a transaction-reconciliation response to the terminal device 106 by way of the payment network server 112 and the acquirer server 110 (as shown by arrow 518a, 518b, and 518c, respectively). The transaction-reconciliation response includes instructions for the terminal device 106 to delete the first transaction indicator and update the TAC. The terminal device 106 deletes the first transaction indicator from the transaction card memory and updates the TAC, as per the instructions included in the transaction reconciliation response (as shown by arrow 520). In the current scenario, the terminal device 106 updates the TAC by incrementing the TAC.
In one embodiment, the issuer server 114 may further instruct the terminal device 106 to update the other transaction card attributes, such as the TC and the PTA, and reflect the changes in the TAC as well, without deviating from the scope of the invention. It will be apparent to a person having ordinary skill in the art that the customer 102 may perform an online transaction along with the synchronization of the first transaction indicator with the issuer server 114.
FIG. 6 is table 600 that illustrates various exemplary scenarios for reconciliation of offline transactions that are performed by way of the transaction card 104, in accordance with an embodiment of the present invention. Table 600 includes first through eleventh columns 602a-602k and first through sixth rows 604a-604g. The first through eleventh columns 602a-602k represent values of old TC, new TC, old TAC, new TAC, old PTA, new PTA, old overdraft limit, new overdraft limit, count of offline transactions reconciled, account balance after reconciliation, presumed balance after synchronization, respectively. The terminal device 106 that is operating in the online mode reads the transaction card attributes (such as the TC, the TAC and the PTA) of the transaction card 104 as described in the foregoing in FIGS. 5A and 5B. Values of the transaction card attributes (such as the TC, the TAC and the PTA) that are read by the terminal device 106 are referred to as old values (such as the old TC, the old TAC, and the old PTA) and are represented by the first, third, and fifth columns 602a, 602c, and 602e, respectively. The seventh column 602g represents the old overdraft limit that is based on the old values. For example, the old overdraft limit is a product of the old TC and the old PTA. The ninth column 602i represents a count of the offline transactions that are reconciled and the tenth column 602j represents the account balance of the customer account linked to the transaction card 104 after the reconciliation of the offline transactions. The eleventh column 602k represents a presumed balance of the customer account based on the offline transactions that are yet to be reconciled. In a scenario where all the offline transactions performed by the transaction card 104 are reconciled, the presumed balance represented by the eleventh column 602k is same as the account balance as represented by the tenth column 602j. The second, fourth, and sixth columns 602b, 602d, and 602f represent values of the transaction card attributes (i.e., the new TC, the new TAC, and the new PTA) that are updated by the issuer server 114. In a scenario where a transaction card attribute is not updated, the new transaction card attribute remains same as the old transaction card attribute. For example, if the issuer server 114 does not update the TC, the new TC represented by the second column 602b is same as the old TC represented by the first column 602a. The eighth column 602h represents the new overdraft limit that is based on the updated values of the transaction card attributes. For example, the new overdraft limit is a product of the new TC and the new PTA. Each row of the first through sixth rows 604a-604f represents a unique transaction reconciliation scenario.
The first row 604a represents a transaction reconciliation scenario where the offline transactions performed by the transaction card 104 are reconciled partially (e.g., one of four offline transactions is reconciled) and the issuer server 114 decreases the PTA (i.e., the old PTA ‘$200’ is updated to the new PTA ‘$180’ and the new TC ‘5’ is same as the old TC ‘5’). Due to update of the PTA, the new overdraft limit becomes ‘$900’ (i.e., new PTA * new TC) which is less than the old overdraft limit ‘$1,000’. The account balance of the customer account linked to the transaction card 104 after the reconciliation of the offline transactions is ‘$10,000’. The issuer server 114 determines that the customer account has sufficient balance to cover the three offline transactions that are not reconciled yet. Considering that the customer 102 has availed ‘$200’ (i.e., the old PTA) for each of the three offline transactions that are not reconciled yet, the issuer server 114 determines the presumed balance, i.e., account balance after reconciliation – (old PTA * count of offline transactions that are yet to be reconciled). The issuer server 114 determines the new TAC based on the presumed balance, the new overdraft limit, and the new PTA. If the presumed balance is greater than or equal to zero, the new TAC is determined based on equation 1 below:
New TAC=New TC (1)
If the presumed balance is less than zero, the new TAC is determined based on equation 2 below:
New TAC= ?(New overdraft limit+Preseumed balance )/(New PTA)? (2)
With respect to the transaction reconciliation scenario represented by the first row 604a, the presumed balance of the customer account is ‘$9,400’, which is greater than ‘$0’. Thus, based on equation 1, the new TAC is ‘5’ (i.e., equal to the new TC ‘5’). In one embodiment, the issuer server 114 may block a difference of the account balance and the presumed balance (i.e., $10,000 - $9,400 = $600) from the customer account so as to reconcile the remaining three offline transactions.
The second row 604b represents another transaction reconciliation scenario where the offline transactions performed by the transaction card 104 are reconciled partially (e.g., two of four offline transactions are reconciled) and the issuer server 114 increases the PTA (i.e., the old PTA ‘$200’ is updated to the new PTA ‘$300’ and the new TC ‘5’ is same as the old TC ‘5’). Due to update of the PTA, the new overdraft limit becomes ‘$1500’ (i.e., the new PTA * the new TC) which is greater than the old overdraft limit ‘$1,000’. The account balance of the customer account linked to the transaction card 104 after the reconciliation of the two offline transactions is ‘$0’. The issuer server 114 determines that the customer account does not have sufficient funds to cover the two offline transactions that are not reconciled yet. Considering that the customer 102 has availed ‘$200’ (i.e., the old PTA) for each of the two offline transactions that are not reconciled yet, the issuer server 114 determines the presumed balance as ‘-$400’, i.e., account balance after reconciliation – (old PTA * count of offline transactions that are yet to be reconciled). In this scenario, the presumed balance of the customer account is less than ‘$0’. Thus, the issuer server 114 determines the new TAC based on equation 2. The new TAC is ‘3’ (i.e., (?$1,500-$400)/$300 ?= 3).
The third row 604c represents another transaction reconciliation scenario where the offline transactions performed by the transaction card 104 are reconciled completely (e.g., all four offline transactions are reconciled reconciled) and the issuer server 114 decreases the PTA (i.e., the old PTA ‘$200’ is updated to the new PTA ‘$150’) and increases the TC (i.e., the new TC ‘7’). Due to update of the PTA and the TC, the new overdraft limit becomes ‘$1,050’ (i.e., the new PTA * the new TC). The account balance of the customer account linked to the transaction card 104 after the reconciliation of the four offline transactions is ‘$10,000’. Since all the offline transactions are reconciled, the presumed balance of the customer account is same as the account balance of the customer account and greater than ‘$0’. Thus, the issuer server 114 determines the new TAC based on equation 1. The new TAC is ‘7’ (i.e., equal to the new TC ‘7’).
The fourth row 604d represents another transaction reconciliation scenario where the offline transactions performed by the transaction card 104 are reconciled completely (e.g., all four offline transactions are reconciled) and the issuer server 114 increases the PTA and the TC (i.e., the old PTA ‘$200’ is updated to the new PTA ‘$300’ and the old TC ‘5’ is updated to the new TC ‘7’). Due to update of the PTA, the new overdraft limit becomes ‘$2,100’ (i.e., the new PTA * the new TC) which is greater than the old overdraft limit ‘$1,000’. The account balance of the customer account linked to the transaction card 104 after the reconciliation of the four offline transactions is $0. Since all the offline transactions are reconciled, the presumed balance of the customer account is same as the account balance of the customer account. In this scenario, the presumed balance of the customer account is ‘$0’. Thus, the issuer server 114 determines the new TAC based on equation 1. The new TAC is ‘7’ (i.e., equal to the new TC ‘7’).
The fifth row 604e represents another transaction reconciliation scenario where the offline transactions performed by the transaction card 104 are reconciled partially (e.g., one of four offline transactions is reconciled) and the issuer server 114 does not update the PTA and the TC (i.e., the new PTA ‘$200’ is same as the old PTA ‘$200’ and the new TC ‘5’ is same as the old TC ‘5’). Due to the fact that the PTA is unchanged, the new overdraft limit is ‘$1,000’ (i.e., the new PTA * the new TC) which is same as the old overdraft limit ‘$1,000’. The account balance of the customer account linked to the transaction card 104 after the reconciliation of the offline transaction is ‘$10,000’. The issuer server 114 determines that the customer account has sufficient balance to cover the three offline transactions that are not reconciled yet. Considering that the customer 102 has availed ‘$200’ (i.e., the old PTA) for each of the three offline transactions that are not reconciled yet, the issuer server 114 determines the presumed balance as ‘$9,400’ (i.e., $10,000 – ($200 * 3)). In this scenario, the presumed balance of the customer account is greater than ‘$0’. Thus, the issuer server 114 determines the new TAC based on equation 1. The new TAC is ‘5’ (i.e., equal to the new TC ‘5’).
The sixth row 604f represents another transaction reconciliation scenario where the offline transactions performed by the transaction card 104 are reconciled completely (e.g., all four offline transactions are reconciled) and the issuer server 114 keeps the PTA and the TC unchanged (i.e., the new PTA ‘$200’ is same as the old PTA ‘$200’ and the new TC ‘5’ is same as the old TC ‘5’). Due to the fact that the PTA is unchanged, the new overdraft limit is ‘$1,000’ (i.e., the new PTA * the new TC) which is same as the old overdraft limit ‘$1,000’. The account balance of the customer account linked to the transaction card 104 after the reconciliation of the two offline transactions is ‘$10,000’. Since all the offline transactions are reconciled, the presumed balance of the customer account is same as the account balance of the customer account and greater than ‘$0’. In this scenario, the presumed balance of the customer account is ‘$10,000’. Thus, the issuer server 114 determines the new TAC based on equation 1. The new TAC is ‘5’ (i.e., equal to new TC ‘5’).
The issuer server 114 instructs the terminal device 106 to update the transaction card attributes of the transaction card 104 (i.e., the PTA, the TC, and the TAC) based on the new values and delete the transaction indicators that are synchronized with the issuer server 114 from the transaction card memory. It will be apparent that the abovementioned exemplary scenarios are for illustrative purpose and should not be construed to limit the scope of the invention.
FIGS. 7A and 7B, collectively represent a flow chart 700 that illustrates the method for processing overdraft transactions, in accordance with an embodiment of the present invention. The customer 102 uses the transaction card 104 to initiate an online transaction at the terminal device 106 which is operating in the online mode. The customer 102 may be authenticated by methods described in the foregoing in FIG. 2A. The terminal device 106 reads the PTA, the TC and the TAC (i.e., the first and second transaction counts, respectively) from the transaction card 104 and prompts the customer 102 to provide transaction details of the online transaction (such as a transaction amount). In one embodiment, when the customer 102 uses the transaction card 104 at the terminal device 106 which is operating in the online mode, the previous offline transactions performed by way of the transaction card 104 may be reconciled and the TAC may be adjusted accordingly by the issuer server 114 as described in FIGS. 5A, 5B, and 6.
At step 702, the issuer server 114 receives the PTA, the TC, and the TAC (i.e., the TAC after adjustment based on the reconciliation of the previous offline transactions) from the terminal device 106. At step 704, the issuer server 114 receives the transaction details as provided by the customer 102 from the terminal device 106. The issuer server 114 determines a new presumed balance of the customer account of the customer 102 by taking the transaction amount of the current online transaction into consideration. For example, the new presumed balance may be a difference of a previous presumed balance and the transaction amount of the current online transaction as explained in FIGS. 2A and 2B. The issuer server 114 determines the previous presumed balance based on the reconciliation of the previous offline transactions. At step 706, the issuer server 114 checks whether the new presumed balance is greater than or equal to zero. If at step 706, it is determined that the new presumed balance of the customer account is greater than or equal to zero, step 708 is performed. At step 708, the issuer server 114 processes the online transaction as a regular transaction. If at step 706, it is determined that the new presumed balance of the customer account is less than zero, step 710 is performed.
At step 710, the issuer server 114 flags the online transaction as the overdraft transaction and determines an overdraft transaction amount for the overdraft transaction. In one scenario where the previous presumed balance is less than or equal to zero, the transaction amount is the overdraft transaction amount. In another scenario where the previous presumed balance is greater than zero, a difference between the transaction amount and the previous presumed balance is the overdraft transaction amount. At step 712, the issuer server 114 checks whether a remaining overdraft limit after considering the transaction amount of the current online transaction is greater than or equal to zero. If at step 712, it is determined that the remaining overdraft limit is less than zero, step 714 is performed. At step 714, the issuer server 114 declines the overdraft transaction and notifies the customer 102. If at step 712, it is determined that the remaining overdraft limit is greater than or equal to zero, step 716 is performed.
At step 716, the issuer server 114 checks whether the overdraft transaction amount is greater than or equal to the PTA. If at step 716, it is determined that the overdraft transaction amount is greater than the PTA, step 714 is performed. If at step 716, it is determined that the overdraft transaction amount is less than or equal to the PTA, step 718 is performed. At step 718, the issuer server 114 approves the overdraft transaction. At step 720, the issuer server 114 decrements the TAC of the transaction card 104 by instructing the terminal device 106.
In one embodiment, when the customer 102 remits the overdraft transaction amount to the customer account, the issuer server 114 updates the TAC of the transaction card 104. The update in the TAC may be reflected to the transaction card 104 when the customer 102 uses the transaction card 104 at any terminal device (such as the terminal device 106) operating in the online mode. In another embodiment, the issuer may update the TAC of the transaction card 104 based on a request from the customer 102 when she visits an institutional branch of the issuer.
It will be apparent to a person having ordinary skill in the art that the issuer server 114 may further instruct the terminal device 106 to update the first transaction count and the PTA without deviating from the scope of the invention.
FIGS. 8A and 8B, collectively represent a flow chart 800 that illustrates the method for conducting an offline transaction at the terminal device 106, in accordance with an embodiment of the present invention. The customer 102 uses the transaction card 104 to initiate the offline transaction at the terminal device 106, when the terminal device 106 is operating in the offline mode. The terminal device 106 may authenticate the customer 102 by using the encrypted authentication information stored in the transaction card 104 as described in the foregoing in FIG. 3A. At step 802, the terminal device 106 receives the PTA, the TC, and the TAC stored in the transaction card memory of the transaction card 104. At step 804, the terminal device 106 receives the transaction details (such as a transaction amount) of the offline transaction as provided by the customer 102. At step 806, the terminal device 106 checks whether the TAC is less than or equal to the threshold value (i.e., ‘0’). If at step 806, it is determined that that the TAC is less than or equal to the threshold value, step 808 is performed. At step 808, the issuer server 114 declines the offline transaction. If at step 806, it is determined that the TAC is greater than the threshold value, step 810 is performed. At step 810, the terminal device 106 checks whether the transaction amount is greater than the PTA. If at step 810, it is determined that the transaction amount is greater than the PTA, step 808 is performed.
If at step 810, it is determined that the transaction amount is less than or equal to the PTA, step 812 is performed. At step 812, the terminal device 106 approves the offline transaction. At step 814, the terminal device 106 updates the TAC of the transaction card 104 (i.e., decrements the TAC by one). At step 816, the terminal device 106 stores the first transaction indicator (such as the time-stamp indicating the time of the offline transaction) in the transaction card memory and the second transaction indicator (such as the time-stamp indicating the time and date of the offline transaction) on the terminal device memory of the terminal device 106, for the reconciliation of the offline transaction. The reconciliation of the offline transaction is described in FIG. 9.
FIG. 9 represents a flow chart 900 that illustrates the method for reconciling the offline transaction conducted by the customer 102, in accordance with an embodiment of the present invention. At step 902, the issuer server 114 receives the transaction details and the second transaction indicator of the offline transaction from the terminal device 106, when the terminal device 106 starts operating in the online mode. In one embodiment, after performing the offline transaction, the customer 102 may again use the transaction card 104 at the terminal device 106 which is operating in the online mode. In another embodiment, after performing the offline transaction, the customer 102 may use the transaction card 104 at another terminal device which is operating in the online mode. In a non-limiting example, it is assumed that the customer 102 uses the transaction card 104 at the terminal device 106. When the terminal device 106 is operating in the online mode, it reads the PTA, the TC, the TAC, and the first transaction indicator stored in the transaction card memory of the transaction card 104 and communicates it to the issuer server 114 by way of the existing acquirer and payment network channel. At step 904, the issuer server 114 receives the PTA, the TC, the TAC, and the first transaction indicator of the transaction card 104 from the terminal device 106. At step 906, the issuer server 114 checks whether the first and the second transaction indicators are different. If at step 906, it is determined that the first and second transaction indicators do not match and are different, step 908 is performed. At step 908, the issuer server 114 aborts the reconciliation of the offline transaction. If at step 906, it is determined that the first and second transaction indicators match, step 910 is performed. At step 910, the issuer server 114 reconciles the offline transaction based on the account balance of the customer account. At step 912, the issuer server 114 instructs the terminal device 106 to delete the first and second transaction indicators from the transaction card memory of the transaction card and the terminal device memory of the terminal device 106, respectively, and update the TAC. In one embodiment, the issuer server 114 may further instruct the terminal device 106 to update the PTA and the TC, without deviating from the scope of the invention.
FIG. 10 represents a high-level flow chart 1000 that illustrates the method for conducting an overdraft transaction, in accordance with an embodiment of the present invention. The customer 102 initiates a transaction by using the transaction card 104 at the terminal device 106, when the terminal device 106 is operating in the online mode. At step 1002, the issuer server 114 receives the first and second transaction counts (i.e., the TC and the TAC, respectively) stored in the transaction card memory of the transaction card 104 from the terminal device 106. At step 1004, the issuer server 114 receives transaction details of the transaction from the terminal device 106. The transaction details include a transaction amount of the transaction. At step 1006, the issuer server 114 processes the transaction based on the second transaction count and the transaction details. At step 1008, the issuer server 114 updates the second transaction count by way of the terminal device 106, when the transaction is approved and the customer account linked to the transaction card 104 has insufficient funds to cover the transaction amount.
FIG. 11 represents a high-level flow chart 1100 that illustrates the method for conducting an offline transaction, in accordance with an embodiment of the present invention. The customer 102 initiates the offline transaction at the terminal device 106 by using the transaction card 104, when the terminal device 106 is operating in the offline mode. At step 1102, the terminal device 106, while operating in the offline mode, reads the first and second transaction counts (i.e., the TC and the TAC, respectively) stored in the transaction card memory of the transaction card 104. At step 1104, the terminal device 106 receives transaction details of the offline transaction from the terminal device 106. The transaction details include a transaction amount of the offline transaction. At step 1106, the terminal device 106 approves the offline transaction based on the second transaction count and the transaction details of the offline transaction. At step 1108, the terminal device 106 updates the second transaction count stored in the transaction card memory based on the approval of the offline transaction.
FIG. 12 is a block diagram that illustrates the issuer server 114, in accordance with an embodiment of the present invention. The issuer server 114 includes a first processor 1202, a first memory 1204, and a first transceiver 1206. The first processor 1202, the first memory 1204, and the first transceiver 1206 communicate with each other by way of a first communication bus 1208. The first processor 1202 includes an authorization manager 1210 and a first transaction manager 1212.
The first processor 1202 includes suitable logic, circuitry, and/or interfaces to process transactions performed by the customer 102 by using the transaction card 104. The first processor 1202 initializes the transaction card attributes (such as the TC, TAC, and PTA) of the transaction card 104 at the time of issuance of the transaction card 104 to the customer 102. The first processor 1202 stores the secondary PIN and/or the biometric information of the customer 102 in the transaction card memory of the transaction card 104 and determines the rights of entities (such as the terminal device 106) to update the transaction card attributes. The first processor 1202 reconciles the overdraft and offline transactions performed by using the transaction card 104. Consequently, the first processor 1202 may instruct the terminal device 106 to update the transaction card attributes (such as the TAC) of the transaction card 104 based on the reconciliation of the overdraft and offline transactions. Further, the first processor 1202 may update the transaction card attributes of the transaction card 104 based on the credit history of the customer 102. Examples of the first processor 1202 include, but are not limited to, an application-specific integrated circuit (ASIC) processor, a reduced instruction set computing (RISC) processor, a complex instruction set computing (CISC) processor, a field-programmable gate array (FPGA), and the like. The first processor 1202 executes the operations for processing the transactions by way of the authorization manager 1210 and the first transaction manager 1212.
The authorization manager 1210 authenticates customers (such as the customer 102) who perform the transactions. The authorization manager 1210 verifies whether authentication information (such as the primary PIN) provided by the customer 102 is valid. The authorization manager 1210 validates the authentication information by using various validation and verification techniques known in the art.
The first transaction manager 1212 approves or declines the online transactions performed by the customers from corresponding customer accounts. In one exemplary scenario, the customer 102 may initiate an online transaction at the terminal device 106 by using the transaction card 104. The first transaction manager 1212 determines whether the online transaction is an overdraft transaction or a regular transaction. If the online transaction is determined to be the overdraft transaction, the first transaction manager 1212 either approves or declines the overdraft transaction based on the TAC and the PTA of the transaction card 104 (as described in FIGS. 2A and 2B). The first transaction manager 1212 stores a record of the overdraft transaction in the first memory 1204. The first transaction manager 1212 may reconcile the overdraft transaction when the customer 102 remits the overdraft transaction amount. The first transaction manager 1212 further authorizes and reconciles the offline transaction performed by using the transaction card 104 (as described in FIGS. 5A and 5B). The first transaction manager 1212 instructs the terminal device 106 to update the transaction card attributes of the transaction card 104, when the transaction card 104 is used at the terminal device 106 which is operating in the online mode.
The first memory 1204 includes suitable logic, circuitry, and/or interfaces to store the account profiles of the customer accounts that are maintained at the issuer. The first memory 1204 further stores transaction records, credit history, transaction history, and the like for each customer account. The first memory 1204 may also store various transaction indicators and transaction details received from various terminal devices for reconciling corresponding offline transactions. Examples of the first memory 1204 include a random-access memory (RAM), a read-only memory (ROM), a removable storage drive, a hard disk drive (HDD), a flash memory, a solid-state memory, and the like. It will be apparent to a person skilled in the art that the scope of the invention is not limited to realizing the first memory 1204 in the issuer server 114, as described herein. In another embodiment, the first memory 1204 may be realized in form of a database server or a cloud storage working in conjunction with the issuer server 114, without departing from the scope of the invention.
The first transceiver 1206 transmits and receives data over the communication network 116 using one or more communication network protocols. The first transceiver 1206 transmits various requests and messages to the terminal device 106, the merchant server 108, the acquirer server 110, the payment network server 112, or other entities that are pursuant to one or more standards for the interchange of transaction messages, such as the ISO8583 standard. The first transceiver 1206 further receives various requests and messages to the terminal device 106, the merchant server 108, the acquirer server 110, and/or the payment network server 112. Examples of the first transceiver 1206 include, but are not limited to, an antenna, a radio frequency transceiver, a wireless transceiver, a Bluetooth transceiver, an ethernet port, a universal serial bus (USB) port, or any other device configured to transmit and receive data.
FIG. 13 is a block diagram that illustrates the terminal device 106, in accordance with an embodiment of the present invention. The terminal device 106 includes a second processor 1302, a terminal device memory 1304, a transaction card reader 1306, a transaction card attribute editor 1308, and a second transceiver 1310. The second processor 1302, the terminal device memory 1304, the transaction card reader 1306, the transaction card attribute editor 1308, and the second transceiver 1310 communicate with each other by way of a second communication bus 1312. The second processor 1302 includes an authentication manager 1314 and a second transaction manager 1316.
The second processor 1302 includes suitable logic, circuitry, and/or interfaces to process various transactions performed by the customer 102 at the terminal device 106. The second processor 1302 is capable of operating in the online and offline modes based on the network connectivity with the acquirer server 110. While operating in the online mode, the second processor 1302 allows the customer 102 to perform the online transaction at the terminal device 106 by way of the transaction card 104 (as described in FIG. 2A). The second processor 1302 further synchronizes the first transaction indicator stored in the transaction card memory of the transaction card 104 and the second transaction indicator stored in the terminal device memory 1304, with the issuer server 114. While operating in the offline mode, the second processor 1302 allows the customer 102 to perform the offline transaction at the terminal device 106 by way of the transaction card 104 (as described in FIG. 3A). The second processor 1302 may update the transaction card attributes of the transaction card 104 based on successful completion of the offline transaction or instructions from the issuer server 114. Examples of the second processor 1302 include, but are not limited to, an ASIC processor, a RISC processor, a CISC processor, an FPGA, and the like. The second processor 1302 executes the operations for processing the transactions by way of, the transaction card reader 1306, the transaction card attribute editor 1308, the authentication manager 1314, and the second transaction manager 1316.
The terminal device memory 1304 includes suitable logic, circuitry, and/or interfaces to store transaction details and transaction indicators of all offline transactions that are performed at the terminal device 106. Examples of the terminal device memory 1304 include a RAM, a ROM, a removable storage drive, an HDD, a flash memory, a solid-state memory, and the like. It will be apparent to a person skilled in the art that the scope of the invention is not limited to realizing the terminal device memory 1304 in the terminal device 106, as described herein. In another embodiment, the terminal device memory 1304 may be realized in form of a database server or a cloud storage working in conjunction with the terminal device 106, without departing from the scope of the invention.
The transaction card reader 1306 includes suitable logic, circuitry, and/or interfaces for reading data from the transaction card 104 used at the terminal device 106. The data read by the transaction card reader 1306 includes the transaction card attributes, the encrypted authentication information, the first transaction indicator stored in the transaction card memory of the transaction card 104, and the transaction card details. The transaction card reader 1306 may also possess the ability to decrypt the encrypted authentication information (such as the encrypted secondary PIN or the encrypted biometric information) stored in the transaction card memory of the transaction card 104.
The transaction card attribute editor 1308 includes suitable logic, circuitry, and/or interfaces for updating the transaction card attributes of the transaction card 104 and the first transaction indicator stored in the transaction card memory of the transaction card 104. In a scenario where the offline transaction performed by the customer 102 by using the transaction card 104 is successful, the transaction card attribute editor 1308 updates the TAC of the transaction card 104. The transaction card attribute editor 1308 then stores the first transaction indicator in the transaction card memory of the transaction card 104 to indicate that the offline transaction is pending reconciliation. The transaction card attribute editor 1308 may delete the first transaction indicator from the transaction card memory when the first transaction indicator is successfully synchronized with the issuer server 114 based on instructions from the issuer server 114. In another scenario, when the terminal device 106 is operating in the online mode, the transaction card attribute editor 1308 updates the transaction card attributes based on the instructions received from the issuer server 114. In one embodiment, the transaction card attribute editor 1308 may allow the customer 102 to update the encrypted authentication information stored in the transaction card memory of the transaction card.
The second transceiver 1310 transmits and receives data over the communication network 116 using one or more communication network protocols. When the terminal device 106 is operating in the online mode, the second transceiver 1310 transmits various requests and messages to the merchant server 108, the acquirer server 110, or other entities that are pursuant to one or more standards for the interchange of transaction messages, such as the ISO8583 standard. The second transceiver 1310 further receives various requests and messages from the merchant server 108, the acquirer server 110, or other entities that are pursuant to one or more standards for the interchange of transaction messages, such as the ISO8583 standard. Examples of the second transceiver 1310 include, but are not limited to, an antenna, a radio frequency transceiver, a wireless transceiver, a Bluetooth transceiver, an ethernet port, a USB port, or any other device configured to transmit and receive data.
The authentication manager 1314 authenticates customers, who initiate the offline transactions. For example, the authentication manager 1314 ensures that the customer 102 has provided valid authentication information (such as the secondary PIN or the biometric information) to confirm her identity. The authentication manager 1314 checks the validity of the authentication information provided by the customer 102 based on a match with the encrypted authentication information (i.e., the encrypted secondary PIN or the encrypted biometric information) stored in the transaction card memory of the transaction card 104.
The second transaction manager 1316 approves or declines the offline transactions initiated at the terminal device 106 by way of the transaction card 104, based on the transaction amount of the offline transaction, the TAC, and the PTA of the transaction card 104. Upon approval of the offline transaction, the second transaction manager 1316 stores the second transaction indicator on the terminal device memory 1304 of the terminal device 106.
FIG. 14 is a block diagram that illustrates the transaction card 104, in accordance with an embodiment of the present invention. The transaction card 104 includes a transaction card memory 1402. The transaction card memory 1402 includes first through third transaction card attribute registers 1404-1408, an authentication-information register 1410, and a transaction-indicator register 1412. The first through third transaction card attribute registers 1404-1408 store the TC, the TAC, and the PTA, respectively. The authentication-information register 1410 stores the encrypted authentication information (i.e., the encrypted secondary PIN and/or the encrypted biometric information). The transaction-indicator register 1412 stores a set of transaction indicators corresponding to a set of offline transactions performed by using the transaction card 104, which are pending reconciliation. For example, the transaction-indicator register 1412 stores the first transaction indicator that is a time-stamp of the format ‘[Date], [Time]’. Examples of the transaction card memory 1402 include non-volatile memory sources implemented as a chip or magnetic stripe on the transaction card 104.
FIG. 15 is a block diagram that illustrates system architecture of a computer system 1500, in accordance with an embodiment of the present invention. An embodiment of present invention, or portions thereof, may be implemented as computer readable code on the computer system 1500. In one example, the terminal device 106, the merchant server 108, the acquirer server 110, the payment network server 112, and the issuer server 114 of FIG. 1 may be implemented in the computer system 1500 using hardware, software, firmware, non-transitory computer readable media having instructions stored thereon, or a combination thereof and may be implemented in one or more computer systems or other processing systems. Hardware, software, or any combination thereof may embody modules and components used to implement the methods of FIGS. 7A, 7B, 8A, 8B, 9, 10, and 11.
The computer system 1500 includes a processor 1502 that may be a special-purpose or a general-purpose processing device. The processor 1502 may be a single processor, multiple processors, or combinations thereof. The processor 1502 may have one or more processor cores. In one example, the processor 1502 is an octa-core processor. Further, the processor 1502 may be connected to a communication infrastructure 1504, such as a bus, message queue, multi-core message-passing scheme, and the like. The computer system 1500 may further include a main memory 1506 and a secondary memory 1508. Examples of the main memory 1506 may include RAM, ROM, and the like. The secondary memory 1508 may include a hard disk drive or a removable storage drive, such as a floppy disk drive, a magnetic tape drive, a compact disc, an optical disk drive, a flash memory, and the like. Further, the removable storage drive may read from and/or write to a removable storage device in a manner known in the art. In one example, if the removable storage drive is a compact disc drive, the removable storage device may be a compact disc. In an embodiment, the removable storage unit may be a non-transitory computer readable recording media.
The computer system 1500 further includes an input/output (I/O) interface 1510 and a communication interface 1512. The I/O interface 1510 includes various input and output devices that are configured to communicate with the processor 1502. Examples of the input devices may include a keyboard, a mouse, a joystick, a touchscreen, a microphone, and the like. Examples of the output devices may include a display screen, a speaker, headphones, and the like. The communication interface 1512 may be configured to allow data to be transferred between the computer system 1500 and various devices that are communicatively coupled to the computer system 1500. Examples of the communication interface 1512 may include a modem, a network interface, i.e., an Ethernet card, a communication port, and the like. Data transferred via the communication interface 1512 may correspond to signals, such as electronic, electromagnetic, optical, or other signals as will be apparent to a person skilled in the art. The signals may travel via a communication channel (not shown) which may be configured to transmit the signals to devices that are communicatively coupled to the computer system 1500. Examples of the communication channel may include, but are not limited to, cable, fiber optics, a phone line, a cellular phone link, a radio frequency link, and the like.
Computer program medium and computer usable medium may refer to memories, such as the main memory 1506 and the secondary memory 1508, which may be a semiconductor memory such as a DRAM. These computer program mediums may provide data that enables the computer system 1500 to implement the methods illustrated in FIGS. 7A, 7B, 8A, 8B, 9, 10, and 11. In an embodiment, the present invention is implemented using a computer implemented application, the computer implemented application may be stored in a computer program product and loaded into the computer system 1500 using the removable storage drive or the hard disc drive in the secondary memory 1508, the I/O interface 1510, or the communication interface 1512.
Thus, the environment 100 allows customers (such as the customer 102) to perform offline and overdraft transactions in areas with limited network connectivity by way of transaction cards (such as the transaction card 104). As a result, financial institutions are empowered to introduce cashless transactions to customers in areas (such as less developed or rural areas) with limited network connectivity. Further, the customer 102 is permitted to perform overdraft transactions, essentially allowing the customer 102 to access short-term debt. Limits may be set to a per-transaction amount (i.e., the PTA) and a number of offline and overdraft transactions (i.e., the TC) available to the customer 102. Hence, the risk of the customer 102 not repaying the debt is controlled. For example, at the time of issuance of the transaction card 104 to the customer 102, the issuer may set low limits on the PTA and the TC. The issuer may choose to update the PTA and the TC based on a credit history or a transaction history of the customer 102 (i.e., the issuer can dynamically dial up or down the PTA available to the customer 102). Thus, the environment 100 promotes cashless transactions and inculcates financial discipline in the customers. As a result, more customers may be encouraged to enter a formal financial system, thereby reducing the role of informal sources, such as money lenders. The financial institutions can boost their business by offering more financial products to the customers once the customers have entered the formal financial system.
A person having ordinary skill in the art will appreciate that embodiments of the disclosed subject matter can be practiced with various computer system configurations, including multi-core multiprocessor systems, minicomputers, mainframe computers, computers linked or clustered with distributed functions, as well as pervasive or miniature computers that may be embedded into virtually any device. For instance, at least one processor such as the processor 1502 and a memory such as the main memory 1506 and the secondary memory 1508 implements the above described embodiments. Further, the operations may be described as a sequential process, however some of the operations may in fact be performed in parallel, concurrently, and/or in a distributed environment, and with program code stored locally or remotely for access by single or multiprocessor machines. In addition, in some embodiments the order of operations may be rearranged without departing from the spirit of the disclosed subject matter.
Techniques consistent with the present invention provide, among other features, systems and methods for conducting overdraft and offline transactions. While various exemplary embodiments of the disclosed system and method have been described above it should be understood that they have been presented for purposes of example only, not limitations. It is not exhaustive and does not limit the invention to the precise form disclosed. Modifications and variations are possible in light of the above teachings or may be acquired from practicing of the invention, without departing from the breadth or scope.
In the claims, the words ‘comprising’, ‘including’ and ‘having’ do not exclude the presence of other elements or steps then those listed in a claim. The terms “a” or “an,” as used herein, are defined as one or more than one. Unless stated otherwise, terms such as “first” and “second” are used to arbitrarily distinguish between the elements such terms describe. Thus, these terms are not necessarily intended to indicate temporal or other prioritization of such elements. The fact that certain measures are recited in mutually different claims does not indicate that a combination of these measures cannot be used to advantage.
While various embodiments of the present invention have been illustrated and described, it will be clear that the present invention is not limited to these embodiments only. Numerous modifications, changes, variations, substitutions, and equivalents will be apparent to those skilled in the art, without departing from the spirit and scope of the present invention, as described in the claims.