The present disclosure relates to the distribution, transfer, use, receipt, and validation of electronic entitlement certificates, specifically the use of entitlement certificates for conducting electronic transactions associated with a transaction account.

BACKGROUND

As the security and variety of available payment instruments increases, consumers have grown more and more accustomed to making purchases with transaction accounts via associated payment instruments in place of cash. Payment instruments offer greater convenience and security than cash does, as there is often only a single card or device that need be carried, and if the payment instrument is lost or stolen the consumer may be able to recover the instrument or receive a replacement without losing their money. As such, many consumers often prefer the use of payment instruments in place of cash.

However, there are instances where payment instruments may be less convenient than cash. For example, a person-to-person transfer of funds may be difficult, and in some instances impossible, to perform using traditional payment instruments. In addition, traditional payment instruments often require a working connection between the merchant or individual receiving a payment instrument and a payment network or financial institution associated therewith for processing the transaction. Furthermore, payment via a payment instrument may not be guaranteed for a merchant, as the funds may never end up being transferred to the merchant due to intermediate actions taken by the consumer. As such, there are instances where the use of cash may be beneficial over a payment instrument associated with a transaction account.

Thus, there is a need for an improved technological system where a payment instrument may be suitable for use in making guaranteed payments, person-to-person payments, and payments for transactions in instances where a recipient may lack a connection to a payment network or other payment processor. Such technological improvements may increase the utility of payment instruments to accommodate for some of the traditional advantages gained via cash purchases.

SUMMARY

The present disclosure provides a description of systems and methods for distribution, transfer, receipt, use, and validation of entitlement certificates.

A method for distribution and transfer of entitlement certificates includes: storing, in an account database of a processing server, a plurality of account profiles, wherein each account profile includes at least an account identifier, a primary account number, and an account balance; receiving, by a receiving device of the processing server, a data signal superimposed with an entitlement request from a computing device, wherein the entitlement request includes at least a specific account identifier, entitlement balance, and one or more usage controls; executing, by a querying module of the processing server, a first query on the account database to identify a specific account profile where the included primary account identifier corresponds to the specific account identifier; generating, by a generation module of the processing server, an entitlement certificate, wherein the entitlement certificate includes at least the entitlement balance and one or more usage controls; generating, by a generation module of the processing server, an entitlement identifier for the generated entitlement certificate; executing, by the querying module of the processing server, a second query on the account database to place a hold associated with the entitlement certificate on the account balance included in the specific account profile for at least the entitlement balance and insert the generated entitlement identifier into the specific account profile; and electronically transmitting, by a transmitting device of the processing server, a data signal superimposed with the entitlement certificate to the computing device.

A method for receipt and use of entitlement certificates includes: storing, in a memory of a computing device, a signature key; receiving, by a receiving device of the computing device, a data signal superimposed with an entitlement certificate, wherein the entitlement certificate includes at least an entitlement balance and one or more usage controls; signing, by a signing module of the computing device, the entitlement certificate using at least the stored signature key; executing, by , a querying module of the computing device, a query on the memory to store the signed entitlement certificate; and electronically transmitting, by a transmitting device of the computing device, the signed entitlement certificate.

A method for receipt and validation of entitlement certificates includes: receiving, by a receiving device of a processing server, a transaction message related to a payment transaction via a payment network, wherein the transaction message is formatted based on one or more standards and includes at least a message type indicator indicative of an authorization request, a first data element configured to store a primary account number, and a second data element configured to store a transaction amount; receiving, by the receiving device of the processing server, at least one entitlement certificate, wherein each entitlement certificate includes at least an entitlement balance and one or more usage controls; generating, by a generation module of the processing server, a transaction message for each entitlement certificate, wherein each generated transaction message is formatted based on the one or more standards and includes at least a message type indicator indicative of a clearing record, a first data element configured to store the primary account number, and a second data element configured to store the entitlement balance included in the respective entitlement certificate; electronically transmitting, by a transmitting device of the processing server, each generated transaction message to a payment network; and processing, by a transaction processing module of the processing server, the payment transaction.

A system for distribution and transfer of entitlement certificates includes: a transmitting device of a processing server; an account database of the processing server configured to store a plurality of account profiles, wherein each account profile includes at least an account identifier, a primary account number, and an account balance; a receiving device of the processing server configured to receive a data signal superimposed with an entitlement request from a computing device, wherein the entitlement request includes at least a specific account identifier, entitlement balance, and one or more usage controls; a querying module of the processing server configured to execute a first query on the account database to identify a specific account profile where the included primary account identifier corresponds to the specific account identifier; and a generation module of the

processing server configured to generate an entitlement certificate, wherein the entitlement certificate includes at least the entitlement balance and one or more usage controls, and an entitlement identifier for the generated entitlement certificate. The querying module of the processing server is further configured to execute a second query on the account database to place a hold associated with the entitlement certificate on the account balance included in the specific account profile for at least the entitlement balance and insert the generated entitlement identifier into the specific account profile. The transmitting device of the processing server is configured to electronically transmit a data signal superimposed with the entitlement certificate to the computing device.

A system for receipt and use of entitlement certificates includes: a memory of a computing device configured to store a signature key; a receiving device of the computing device configured to receive a data signal superimposed with an entitlement certificate, wherein the entitlement certificate includes at least an entitlement balance and one or more usage controls; a signing module of the computing device configured to sign the entitlement certificate using at least the stored signature key; a querying module of the computing device configured to execute a query on the memory to store the signed entitlement certificate; and a transmitting device of the computing device configured to electronically transmit the signed entitlement certificate.

A system for receipt and validation of entitlement certificates includes: a receiving device of a processing server configured to receive a transaction message related to a payment transaction via a payment network, wherein the transaction message is formatted based on one or more standards and includes at least a message type indicator indicative of an authorization request, a first data element configured to store a primary account number, and a second data element configured to store a transaction amount, and at least one entitlement certificate, wherein each entitlement certificate includes at least an entitlement balance and one or more usage controls; a generation module of the processing server configured to generate a transaction message for each entitlement certificate, wherein each generated transaction message is formatted based on the one or more standards and includes at least a message type indicator indicative of a clearing record, a first data element configured to store the primary account number, and a second data element configured to store the entitlement balance included in the respective entitlement certificate; a transmitting device of the processing server configured to electronically transmit each generated transaction message to a payment network; and a transaction processing module of the processing server configured to process the payment transaction.

BRIEF DESCRIPTION OF THE DRAWING FIGURES

The scope of the present disclosure is best understood from the following detailed description of exemplary embodiments when read in conjunction with the accompanying drawings. Included in the drawings are the following figures:

FIG. 1 is a block diagram illustrating a high level system architecture for the generation, distribution, transfer, use, and receipt of entitlement certificates for electronic transactions and monetary transfers in accordance with exemplary embodiments.

FIG. 2 is a block diagram illustrating the issuer server of FIG. 1 for the generation and distribution of entitlement certificates in accordance with exemplary embodiments.

FIG. 3 is a block diagram illustrating the computing device of FIG. 1 for the receipt, signing, and distribution of entitlement certificates in accordance with exemplary embodiments.

FIG. 4 is a block diagram illustrating the processing server of FIG. 1 for the receipt, validation, and use of entitlement certificates in accordance with exemplary embodiments.

FIG. 5 is a flow diagram illustrating a process for the distribution and use of entitlement certificates in the system of FIG. 1 in accordance with exemplary embodiments.

FIG. 6 is a flow chart illustrating an exemplary method for distribution and transfer of entitlement certificates in accordance with exemplary embodiments.

FIG. 7 is a flow chart illustrating an exemplary method for receipt and use of entitlement certificates in accordance with exemplary embodiments.

FIG. 8 is a flow chart illustrating an exemplary method for receipt and validation of entitlement certificates in accordance with exemplary embodiments.

FIG. 9 is a flow diagram illustrating the processing of a payment transaction in accordance with exemplary embodiments.

FIG. 10 is a block diagram illustrating a computer system architecture in accordance with exemplary embodiments.

Further areas of applicability of the present disclosure will become apparent from the detailed description provided hereinafter. It should be understood that the detailed description of exemplary embodiments are intended for illustration purposes only and are, therefore, not intended to necessarily limit the scope of the disclosure.

DETAILED DESCRIPTION

Glossary of Terms

Payment Network - A system or network used for the transfer of money via the use of cash-substitutes. Payment networks may use a variety of different protocols and procedures in order to process the transfer of money for various types of transactions. Transactions that may be performed via a payment network may include product or service purchases, credit purchases, debit transactions, fund transfers, account withdrawals, etc. Payment networks may be configured to perform transactions via cash-substitutes, which may include payment cards, letters of credit, checks, transaction accounts, etc. Examples of networks or systems configured to perform as payment networks include those operated by MasterCard®, VISA®, Discover®, American Express®, PayPal®, etc. Use of the term "payment network" herein may refer to both the payment network as an entity, and the physical payment network, such as the equipment, hardware, and software comprising the payment network.

Issuer - An entity that establishes (e.g., opens) a letter or line of credit in favor of a beneficiary, and honors drafts drawn by the beneficiary against the amount specified in the letter or line of credit. In many instances, the issuer may be a bank or other financial institution authorized to open lines of credit. In some instances, any entity that may extend a line of credit to a beneficiary may be considered an issuer. The line of credit opened by the issuer may be represented in the form of a payment account, and may be drawn on by the beneficiary via the use of a payment card. An issuer may also offer additional types of payment accounts to consumers as will be apparent to persons having skill in the relevant art, such as debit accounts, prepaid accounts, electronic wallet accounts, savings accounts, checking accounts, etc., and may provide consumers with physical or non-physical means for accessing and/or utilizing such an account, such as debit cards, prepaid cards, automated teller machine cards, electronic wallets, checks, etc.

Merchant - An entity that provides products (e.g., goods and/or services) for purchase by another entity, such as a consumer or another merchant. A merchant may be a consumer, a retailer, a wholesaler, a manufacturer, or any other type of entity that may provide products for purchase as will be apparent to persons having skill in the relevant art. In some instances, a merchant may have special knowledge in the goods and/or services provided for purchase. In other instances, a merchant may not have or require and special knowledge in offered products. In some embodiments, an entity involved in a single transaction may be considered a merchant. In some instances, as used herein, the term "merchant" may refer to an apparatus or device of a merchant entity.

Acquirer - An entity that may process payment card transactions on behalf of a merchant. The acquirer may be a bank or other financial institution authorized to process payment card transactions on a merchant's behalf. In many instances, the acquirer may open a line of credit with the merchant acting as a beneficiary. The acquirer may exchange funds with an issuer in instances where a consumer, which may be a beneficiary to a line of credit offered by the issuer, transacts via a payment card with a merchant that is represented by the acquirer.

Payment Transaction - A transaction between two entities in which money or other financial benefit is exchanged from one entity to the other. The payment transaction may be a transfer of funds, for the purchase of goods or services, for the repayment of debt, or for any other exchange of financial benefit as will be apparent to persons having skill in the relevant art. In some instances, payment transaction may refer to transactions funded via a payment card and/or payment account, such as credit card transactions. Such payment transactions may be processed via an issuer, payment network, and acquirer. The process for processing such a payment transaction may include at least one of authorization, batching, clearing, settlement, and funding. Authorization may include the furnishing of payment details by the consumer to a merchant, the submitting of transaction details (e.g., including the payment details) from the merchant to their acquirer, and the verification of payment details with the issuer of the consumer's payment account used to fund the transaction. Batching may refer to the storing of an authorized transaction in a batch with other authorized transactions for distribution to an acquirer. Clearing may include the sending of batched transactions from the acquirer to a payment network for processing. Settlement may include the debiting of the

issuer by the payment network for transactions involving beneficiaries of the issuer. In some instances, the issuer may pay the acquirer via the payment network. In other instances, the issuer may pay the acquirer directly. Funding may include payment to the merchant from the acquirer for the payment transactions that have been cleared and settled. It will be apparent to persons having skill in the relevant art that the order and/or categorization of the steps discussed above performed as part of payment transaction processing.

Blockchain - A public ledger of all transactions of a blockchain-based currency. One or more computing devices may comprise a blockchain network, which may be configured to process and record transactions as part of a block in the blockchain. Once a block is completed, the block is added to the blockchain and the transaction record thereby updated. In many instances, the blockchain may be a ledger of transactions in chronological order, or may be presented in any other order that may be suitable for use by the blockchain network. In some configurations, transactions recorded in the blockchain may include a destination address and a currency amount, such that the blockchain records how much currency is attributable to a specific address. In some instances, the transactions are financial and others not financial, or might include additional or different information, such as a source address, timestamp, etc. In some embodiments, a blockchain may also or

alternatively include nearly any type of data as a form of transaction that is or needs to be placed in a distributed database that maintains a continuously growing list of data records hardened against tampering and revision, even by its operators, and may be confirmed and validated by the blockchain network through proof of work and/or any other suitable verification techniques associated therewith. In some cases, data regarding a given transaction may further include additional data that is not directly part of the transaction appended to transaction data. In some instances, the inclusion of such data in a blockchain may constitute a transaction. In such instances, a blockchain may not be directly associated with a specific digital, virtual, fiat, or other type of currency.

System for Generation. Distribution, Validation, and Use of Entitlement Certificates

FIG. 1 illustrates a system 100 for the generation, distribution, validation, and use of entitlement certificates via a payment instrument for use in electronic transactions for the money transfers.

The system 100 may include an issuer server 102. The issuer server 102, discussed in more detail below, may be part of a computing system of an issuing financial institution, such as an issuing bank, configured to create, storage, issuer, or otherwise manage financial transaction accounts for use in funding electronic transactions and money transfers. In the system 100, the issuer server 102 may issue a transaction account to a consumer 106 for use in funding electronic transactions. As part of the issuing of the transaction account, the issuer server 102 may issue payment credentials to a computing device 104 associated with the consumer 106.

In some instances, the issuer server 102 may issue the computing device 104 to the consumer 106, which may be a payment instrument configured to store payment details for conveyance to a merchant system 108 or other computing device for use in conveying funds as part of an electronic transaction or money transfer. In other instances, the issuer server 102 may issue payment credentials to a computing device 104 already possessed by the consumer 106, which may cause the computing device 104 to become a payment instrument once issued with the payment credentials. In each instance, the computing device 104, discussed in more detail below, may be configured to store payment credentials and perform the functions discussed herein for electronic transactions and money transfers via the use of entitlement certificates. The computing device 104 may be, for example, a payment card with an integrated circuit included therein, a mobile computing device (e.g., cellular phone, smart phone, smart watch, wearable computing device, implantable computing device, etc.) having an electronic wallet or other payment application program stored therein, or other suitable type of device.

To provide for guaranteed transactions, person-to-person money transfers, and offline transactions, the issuer server 102 may be configured to generate and distribute entitlement certificates to the computing device 104. An entitlement certificate may be an electronic certificate distributed to a computing device 104 for storage therein and transfer to another computing device that is serves as a guarantee of an associated currency amount for retrieval by an entity in possession of the entitlement certificate. The consumer 106 may request one or more entitlement certificates from the issuer server 102 using a suitable computing device, such as the computing device 104 in instances where the computing device 104 may be a suitable type of mobile communication device. In other instances, the consumer 106 may insert the computing device 104 into or otherwise interface the computing device 104 with a secondary computing device for submission of an entitlement certificate request to the issuer server 102, such as by interlacing an integrated circuit payment card with an automated teller machine in communication with the issuer server 102.

The entitlement certificate request may be electronically transmitted to the issuer server 102 via a suitable communication method and may include at least an account identifier, an entitlement balance, and one or more usage controls. The account identifier may be a value suitable for use in identifying the transaction account to be used as the source of funds for the electronic transaction or money transfer, The account identifier may be a primary account number for the related transaction account or other suitable value, such as an identification number, username, e-mail address, phone number, etc. The entitlement balance may be an amount guaranteed by the corresponding entitlement certificate. The one or more usage controls may include controls on the usage of the funds guaranteed by the corresponding entitlement certificate. Usage controls may include, for example, a control on where the funds may be used (e.g., at specific merchants, at specific types of merchants, in a person-to-person money transfer, in a specific geographic location or area, etc.) or how the funds may be used (e.g., for deposit only, for person-to-person transfer only, for withdrawal at an automated teller machine only, etc.). In some embodiments, an entitlement certificate request may also include a currency denomination, which may indicate the type of currency for the associated funds (e.g., the United States Dollar). Additional information regarding usage controls in payment transactions, and usage controls, generally, can be found in U.S. Patent No. 6,636,833, issued October 21, 2003; U.S. Patent No. 7,136,835, issued November 14, 2006; U.S. Patent No. 7,571,142, issued August 4, 2009; U.S. Patent No. 7,567,934, issued July 28, 2009; U.S. Patent No. 7,593,896, issued September 22, 2009; U.S. Patent No. 7,359,880, issued April 15, 2008; U.S. Patent No. 7,895,122, issued February 22, 2011; U.S. Patent No. 8,229,854, issued July 27, 2012; U.S. Patent No. 8,321,315, issued November 27, 2012; U.S. Patent No. 8, 10,218, issued August 13, 2013; U.S. Patent No. 8,639,623, issued December 27, 2012; U.S. Patent No.

8,756,150, issued June 17, 2014; and U.S. Patent No. 8,527,416, issued September 3, 2013, each of which are herein incorporated by reference in their entirety.

The issuer server 102 may receive the entitlement certificate request and may generate one or more entitlement certificates based thereon. As discussed herein, "entitlement certificates" may also be referred to as "entitlement certificate units" or "ECUs," Each entitlement certificate may include at least the associated entitlement balance and one or more usage controls, as requested by the consumer 106. In some instances, the issuer server 102 may generate an identifier, for use in identifying the entitlement certificate or transactions associated therewith. In some cases, the identifier may be included in the entitlement certificate, or may accompany the entitlement certificate. In the latter cases, the identifier may be generated based on the entitlement certificate, such as by applying a hashing algorithm to the entitlement certificate. As part of the generation of an entitlement certificate, the issuer server 102 may be configured to place a hold on the related transaction account for the entitlement balance. The hold may be such that the associated funds (e.g., of the amount of the entitlement balance) cannot be used until a clearing record associated with the corresponding entitlement certificate is received, thus

guaranteeing the associated funds.

The issuer server 102 may electronically transmit a data signal to the computing device 104 that is superimposed with the generated entitlement certificates. In some instances, the entitlement certificates may be directly transmitted to the computing device 104 from the issuer server 102. In other instances, the entitlement certificates may be transmitted through one or more intermediate entities or devices, such as a secondary computing device in communication with the computing device 104, such as an automated teller machine or point of sale device. The computing device 104 may receive the entitlement certificates and may store the certificates in a memory included therein.

In some embodiments, the computing device 104 may be configured to sign received entitlement certificates. The computing device 104 may store a signature key in a memory included therein, which may be used to digitally sign received entitlement certificates using a suitable signing algorithm and/or process. In some embodiments, the signature key may be a private key in a key pair, where the corresponding public key may be used in validation of the digital signatures generated therewith. In some embodiments, the computing device 104 may also be configured to generate a ledger of signed entitlement certificates. The ledger may consist of entries for each entitlement certificate received and signed by the computing device 104, which may be used in the validation of the signed entitlement certificates for use in guaranteed electronic transactions and money transfers. In some instances, the

ledger may also indicate the sequence of receipt and distribution of entitlement certificates by the computing device 104.

Once one or more entitlement certificates are received by and stored in (e.g., and signed, if applicable) the computing device 104, the consumer 106 may present the computing device 104 to a merchant system 108 for use in funding an electronic transaction or money transfer. While it is illustrated in FIG. 1 and discussed herein that the computing device 104 may be used at a merchant system 108, it will be apparent to persons having skill in the relevant art that a second computing device 104 (e.g., which may also include entitlement certificates) or other suitable device (e.g., an automated teller machine) may be used in place of the merchant system 108 for participation in an electronic transaction or money transfer. For example, the merchant system 108 may be replaced by a payment instrument used in the receipt of a person-to-person money transfer or an automated teller machine where the computing device 104 may be used to deposit funds into a transaction account therewith.

The computing device 104 may be presented to the merchant system 108 and may electronically transmit at least one entitlement certificate to the merchant system 108 for use in an electronic transaction or money transfer. In instances where the computing device 104 may store a ledger, the ledger may also be electronically transmitted with the entitlement certificate(s) transmitted to the merchant system 108. The computing device 104 may also electronically transmit identification information, such as the ledger, a primary account number or other payment credentials, a payment token identifier or associated payment token, entitlement identifiers for the transmitted entitlement certificates, etc. In some cases, the computing device 104 may transmit enough entitlement certificates such that.the aggregated entitlement balance covers a transaction amount for the electronic transaction or money transfer being conducted with the merchant system 108. The computing device 104 may update the ledger stored therein to indicate the transfer of the transmitted entitlement certificates to the merchant system 108. In some instances, the computing device 104 may delete or clear any ledger for which the associated entitlement certificate was transferred. The electronic transmission of data from the computing device 104 to the merchant system 108 may use any suitable method, such as via near field

communication, Bluetooth, the reading of a magnetic stripe encoded in the computing device 104, the reading of a machine-readable code displayed by the computing

device 104, transfer via contact to one or more contact points on the computing device 104, etc.

Once the merchant system 108 has received the entitlement certificates, the merchant system 108 may electronically transmit the entitlement certificates to a processing server 112 in a payment network 110. The transmission may also include identifying information associated with the computing device 104 or received entitlement certificates, such as a primary account number, one or more entitlement identifiers, or the ledger. In instances where the entitlement certificates may be provided as part of an electronic transaction (e.g., and not just a money transfer for the entitlement balances), the merchant system 108 may also provide transaction data, such as a transaction amount, for the electronic transaction. The processing server 112, discussed in more detail below, may be a part of the payment network 110 and may be configured to facilitate the clearing of entitlement certificates for release of guaranteed funds for payment in electronic transactions and money transfers .

The processing server 112 may be configured to validate the entitlement certificates provided by the merchant system 108. Validation may include the comparison of the entitlement certificates with the data contained in the ledger, such as to ensure chain of custody of the entitlement certificates and confirm availability of the associated funds. Validation may also include verifying compliance with the one or more usage controls included in the entitlement certificate, such as to ensure that the entitlement certificate is being used as required by the usage controls. In instances where entitlement certificates may be signed, validation may include verification of the digital signature for each of the entitlement certificates. In such instances, the processing server 102 may store a signature key used in the verification of the digital signature. In some embodiments, the signature key may be a public key in a key pair where the corresponding private key is the signature key used by the computing device 104 to sign the entitlement certificates.

Once the entitlement certificates have been validated, the processing server 102 may generate a clearing record corresponding to each entitlement certificate. The clearing record may be a transaction message that is formatted pursuant to one or more standards governing the exchange of financial transaction messages, such as the International Organization of Standardization's ISO 8583 standard, that includes a message type indicator indicating a type of the transaction message to be a clearing record, and that also includes a plurality of data elements. The data elements may store data as indicated by a bitmap included in the transaction message, such as having a data element configured to store the entitlement balance. In instances where an entitlement identifier may be received, a data element in the clearing record may store the associated entitlement identifier. In some cases, the clearing record may also include a data element indicating a payee for the associated entitlement balance, such as indicating a transaction account associated with the merchant system 108. The processing server 102 may electronically transmit each of the clearing records to the issuer server 102 via the payment network 110, such as using the payment raiis.

The issuer server 102 may receive the clearing records, and may process the clearing records accordingly. The processing of a clearing record may include identification of the associated entitlement certificate that was distributed to the computing device 104 and release of the entitlement balance from the related transaction account. In instances where the entitlement balance is to be transferred, such as indicated in the clearing record, the issuer server 102 may initiate a transfer of the entitlement balance from the transaction account to the payee indicated in the clearing record, such as to the transaction account associated with the merchant system 108. Use of the entitlement certificate may therefore ensure that funds being paid to the merchant system 108 by the consumer via the computing device 104 are guaranteed, as the associated funds are held until a clearing record is received, the clearing record being initiated by the merchant system 108 providing the

corresponding entitlement certificate. In addition, the entitlement certificate can ensure the guarantee of funds even in instances where the payment network 110 may be unavailable, as the funds may remain on hold until a connection with the payment network 110 is established for transmission of the corresponding entitlement certificate.

In some instances, entitlement certificates may be used in conjunction with an electronic transaction for a transaction amount greater than or equal to the entitlement balances of more than one entitlement certificate. For instance, the merchant system 108 may submit a transaction message (e.g., as formatted by and/or transmitted via one or more intermediate entities, such as an acquiring financial institution) for the electronic transaction to the processing server 112 via the payment network 110. The transaction message may include a message type indicator

indicative of an authorization request and may include a data element configured to store the transaction amount for the transaction, as well as a data element configured to store the primary account number associated with the computing device 104, as may be provided by the computing device 104 to the merchant system 108 using traditional methods. The transaction message may be received by the processing server 112 and routed to the issuer server 102 via the payment network 110 using traditional methods. The issuer server 102 may receive the transaction message and may approve or deny the electronic transaction using traditional methods, where the amount of funds released via the clearing records corresponding to the entitlement balances may be considered in the approval or denial of the electronic transaction. The issuer server 102 may return a transaction message as an authorization response back to the processing server 112 via the payment network 110, which may be forwarded to the merchant system 108 for use in finalizing the transaction. Methods for the traditional processing of an electronic transaction using transaction messages are discussed in more detail below with respect to the process 900 illustrated in FIG. 9.

The use of entitlement certificates in conjunction with a transaction message for an electronic transaction may provide a guarantee as to the transaction amount being requested for transfer to the merchant associated with the merchant system 108. In such embodiments, the computing device 104 may provide the entitlement certificates to the merchant system 108 for forwarding to the processing server 112 via the payment network 110, which may be included in the transaction message or transmitted in a separate and/or accompanying data message. In other embodiments, the computing device 104 may directly transmit the entitlement certificates (e.g., and the ledger and any other additional data, such as entitlement identifiers) to the processing server 112 via the payment network 110 using the payment rails or a suitable, alternative communication network. In such

embodiments, the transaction may be guaranteed via the use of entitlement certificates, without the need to modify existing merchant systems 108. In addition, because the entitlement certificates may serve as a guarantee for the associated entitlement balance, the merchant system 108 may finalize the electronic transaction without waiting for the processing of an associated transaction message, as the transaction amount is guaranteed, which may result in faster processing of transactions with consumers 106 via the entitlement certificates.

The use of entitlement certificates may thus provide for guaranteed electronic transactions and money transfers, which may be conducted absent a connection with a payment network 110 or other payment processor. In addition, person-to-person money transfers may also be easily conducted via the transfer of entitlement certificates from one computing device 104 to another. In such an instance, the transfer of an entitlement certificate to a second computing device 104 by a first computing device 104 may be recorded in a ledger in each computing device 104, which may be used by the processing server 112 in validation of the transfer once the ledgers and the entitlement certificate is transmitted to the processing server 112. In such instances, the clearing record generated by the processing server 112 and transmitted to the issuer server 102 may indicate the transaction account associated with the second computing device 104 as the payee for the entitlement balance.

WHAT IS CLAIMED IS:

A method for distribution and transfer of entitlement certificates, comprising:

storing, in an account database of a processing server, a plurality of account profiles, wherein each account profile includes at least an account identifier, a primary account number, and an account balance;

receiving, by a receiving device of the processing server, a data signal superimposed with an entitlement request from a computing device, wherein the entitlement request includes at least a specific account identifier, entitlement balance, and one or more usage controls;

executing, by a querying module of the processing server, a first query on the account database to identify a specific account profile where the included primary account identifier corresponds to the specific account identifier;

generating, by a generation module of the processing server, an entitlement certificate, wherein the entitlement certificate includes at least the entitlement balance and one or more usage controls;

generating, by a generation module of the processing server, an entitlement identifier for the generated entitlement certificate;

executing, by the querying module of the processing server, a second query on the account database to place a hold associated with the entitlement certificate on the account balance included in the specific account profile for at least the entitlement balance and insert the generated entitlement identifier into the specific account profile; and

electronically transmitting, by a transmitting device of the processing server, a data signal superimposed with the entitlement certificate to the computing device.

2. The method of claim 1, further comprising:

receiving, by the receiving device of the processing server, a transaction message via a payment network, wherein the transaction message is formatted based on one or more standards and includes at least a message type indicator indicative of a clearing record, a first data element configured to store the primary account number included in the specific account profile, and a second data element configured to store the generated entitlement identifier; and

executing, by the querying module of the processing server, a third query on the account profile to release the hold associated with the entitlement certificate on the account balance.

3. The method of claim 1, wherein the entitlement identifier is generated via application of one or more hashing algorithms to the generated entitlement certificate.

4. A method for receipt and use of entitlement certificates, comprising: storing, in a memory of a computing device, a signature key;

receiving, by a receiving device of the computing device, a data signal superimposed with an entitlement certificate, wherein the entitlement certificate includes at least an entitlement balance and one or more usage controls;

signing, by a signing module of the computing device, the entitlement certificate using at least the stored signature key;

executing, by a querying module of the computing device, a query on the memory to store the signed entitlement certificate; and

electronically transmitting, by a transmitting device of the computing device, the signed entitlement certificate.

5. The method of claim 4, further comprising:

receiving, by the receiving device of the computing device, a second data signal superimposed with a second entitlement certificate, wherein the second entitlement certificate includes at least an entitlement balance and one or more usage controls;

signing, by the signing module of the computing device, the second entitlement certificate using at least the stored signature key;

generating, by a generation module of the computing device, a ledger, wherein the ledger comprises at least the signed entitlement certificate and the signed second entitlement certificate; and

executing, by the querying module of the computing device, a second query on the memory to store the signed second entitlement certificate and generated ledger.

6. The method of claim 5, wherein transmitting the signed entitlement certificate further includes transmitting at least the generated ledger.

7. The method of claim 4, further comprising:

generating, by a generation module of the computing device, an entitlement identifier via application of one or more hashing algorithms to the entitlement certificate, wherein

transmitting the signed entitlement certificate further includes transmitting the generated entitlement identifier.

8. A method for receipt and validation of entitlement certificates, comprising:

receiving, by a receiving device of a processing server, a transaction message related to a payment transaction via a payment network, wherein the transaction message is formatted based on one or more standards and includes at least a message type indicator indicative of an authorization request, a first data element configured to store a primary account number, and a second data element configured to store a transaction amount;

receiving, by the receiving device of the processing server, at least one entitlement certificate, wherein each entitlement certificate includes at least an entitlement balance and one or more usage controls;

generating, by a generation module of the processing server, a transaction message for each entitlement certificate, wherein each generated transaction message is formatted based on the one or more standards and includes at least a message type indicator indicative of a clearing record, a first data element configured to store the primary account number, and a second data element configured to store the entitlement balance included in the respective entitlement certificate;

electronically transmitting, by a transmitting device of the processing server, each generated transaction message to a payment network; and

processing, by a transaction processing module of the processing server, the payment transaction.

9. The method of claim 8, wherein

each entitlement certificate is signed, and

the method further comprises:

storing, in a memory of the processing server, a signature key; and validating, by a validation module of the processing server, each signed entitlement certificate using the stored signature key.

10. The method of claim 8, wherein the at least one entitlement certificate is stored in a third data element included in the received transaction message.

11. A system for distribution and transfer of entitlement certificates, comprising:

a transmitting device of a processing server;

an account database of the processing server configured to store a plurality of account profiles, wherein each account profile includes at least an account identifier, a primary account number, and an account balance;

a receiving device of the processing server configured to receive a data signal superimposed with an entitlement request from a computing device, wherein the entitlement request includes at least a specific account identifier, entitlement balance, and one or more usage controls;

a querying module of the processing server configured to execute a first query on the account database to identify a specific account profile where the included primary account identifier corresponds to the specific account identifier; and

a generation module of the processing server configured to generate

an entitlement certificate, wherein the entitlement certificate includes at least the entitlement balance and one or more usage controls, and

an entitlement identifier for the generated entitlement certificate, wherein

the querying module of the processing server is further configured to execute a second query on the account database to place a hold associated with the entitlement certificate on the account balance included in the specific account profile for at least the entitlement balance and insert the generated entitlement identifier into the specific account profile, and

the transmitting device of the processing server is configured to electronically transmit a data signal superimposed with the entitlement certificate to the computing device.

12. The system of claim 11 , wherein

the receiving device of the processing server is further configured to receive a transaction message via a payment network, wherein the transaction message is formatted based on one or more standards and includes at least a message type indicator indicative of a clearing record, a first data element configured to store the primary account number included in the specific account profile, and a second data element configured to store the generated entitlement identifier, and

the querying module of the processing server is further configured to execute a third query on the account profile to release the hold associated with the entitlement certificate on the account balance.

13. The system of claim 11, wherein the entitlement identifier is generated via application of one or more hashing algorithms to the generated entitlement certificate.

14. A system for receipt and use of entitlement certificates, comprising: a memory of a computing device configured to store a signature key;

a receiving device of the computing device configured to receive a data signal superimposed with an entitlement certificate, wherein the entitlement certificate includes at least an entitlement balance and one or more usage controls;

a signing module of the computing device configured to sign the entitlement certificate using at least the stored signature key;

a querying module of the computing device configured to execute a query on the memory to store the signed entitlement certificate; and

a transmitting device of the computing device configured to electronically transmit the signed entitlement certificate.

15. The system of claim 14, further comprising:

a generation module of the computing device, wherein

the receiving device of the computing device is further configured to receive a second data signal superimposed with a second entitlement certificate, wherein the second entitlement certificate includes at least an entitlement balance and one or more usage controls;

the signing module of the computing device is further configured to sign the second entitlement certificate using at least the stored signature key;

the generation module of the computing device is configured to generate a ledger, wherein the ledger comprises at least the signed entitlement certificate and the signed second entitlement certificate, and

the querying module of the computing device is further configured to execute a second query on the memory to store the signed second entitlement certificate and generated ledger.

16. The system of claim 15, wherein transmitting the signed entitlement certificate further includes transmitting at least the generated ledger.

17. The system of claim 14, further comprising:

a generation module of the computing device configured to generate an entitlement identifier via application of one or more hashing algorithms to the entitlement certificate, wherein

transmitting the signed entitlement certificate further includes transmitting the generated entitlement identifier.

18. A system for receipt and validation of entitlement certificates, comprising:

a receiving device of a processing server configured to receive

a transaction message related to a payment transaction via a payment network, wherein the transaction message is formatted based on one or more standards and includes at least a message type indicator indicative of an authorization request, a first data element configured to store a primary account number, and a second data element configured to store a transaction amount, and

at least one entitlement certificate, wherein each entitlement certificate includes at least an entitlement balance and one or more usage controls;

a generation module of the processing server configured to generate a transaction message for each entitlement certificate, wherein each generated transaction message is formatted based on the one or more standards and includes at least a message type indicator indicative of a clearing record, a first data element configured to store the primary account number, and a second data element

configured to store the entitlement balance included in the respective entitlement certificate;

a transmitting device of the processing server configured to electronically transmit each generated transaction message to a payment network; and

a transaction processing module of the processing server configured to process the payment transaction.

19. The system of claim 18, further comprising:

a memory of the processing server; and

a validation module of the processing server, wherein

each entitlement certificate is signed,

the memory of the processing server is configured to store a signature key, and the validation module of the processing server is configured to validate each signed entitlement certificate using the stored signature key.

20. The system of claim 18, wherein the at least one entitlement certificate is stored in a third data element included in the received transaction message.