CLIAMS:
1. A communication device communicably connected to a computing device and a central server, comprising:
at least one processor; and
a memory storing instructions executable by the at least one processor, wherein the instructions configure the at least one processor to:
initiate an electronic payment transaction on the computing device;
receive a packet with transaction input and information related to at least one issuing server of plurality of issuing servers from the computing device, wherein the packet is encrypted;
transmit the encrypted packet to the central server;
receive encrypted payment transaction approval from the central server;
transmit the received encrypted payment transaction approval to the computing device; and
receive authorization code and payment transaction information.

2. The communication device as claimed in claim 1 is communicably connected to the central sever using long range communication network.

3. The communication device as claimed in claim 1 is communicably connected to the computing device using short range communication network.

4. The communication device as claimed in claim 1 is configured to communicate with the computing device using a set of predefined identifications (IDs).

5. The communication device as claimed in claim 4, wherein the set of predefined identifications (IDs) is generated by the central server upon receiving information of the communication device and the computing device.

6. A method for transaction processing through a communication device connected between a computing device and a central server, the method comprising:
initiating an electronic payment transaction on the computing device;
receiving a packet with transaction input and information related to at least one issuing server of plurality of issuing servers from the computing device, wherein the packet is encrypted;
transmitting the encrypted packet to the central server;
receiving encrypted payment transaction approval from the central server;
transmitting the received encrypted payment transaction approval to the computing device; and
receiving authorization code and payment transaction information.
,TagSPECI:TECHNICAL FIELD

The present disclosure relates to transaction processing. In particular, the present disclosure relates to a communication device and a method for processing electronic payment transactions.

BACKGROUND

The existing electronic financial transaction systems involves customer, merchant, an acquiring bank (which gives POS terminals to the merchants), card associations like Visa®, MasterCard® etc., and multiple issuing banks (which is issuer of the cards to its customers). The setup of existing electronic financial transaction is illustrated in Fig. 1. The customer uses a card as payment mode to pay for the availed goods and/or services. The merchant receives the card from the customer to process the sale and swipes/ inserts the card on the POS terminal to obtain card information. Then, the card information and other related information is sent to an acquiring bank. The acquiring bank forwards the transaction information to the card association, which in turn sends the information to issuer bank for authorization in case of off-us transactions. The issuing bank validates the card and transaction information and debits amount from the card account. An approval is then transmitted by the issuing bank to the acquiring bank through the card association. The acquiring bank then forwards the approval to the POS terminal and the terminal prints out the receipt to the customer for future reference. At the end of the day, settlement process is initiated by the merchant. The acquiring bank pays the merchant for the transactions handled by it. Then, the issuing bank provides the reimbursement to the acquiring bank after deducting a predetermined percentage of the transaction cost. Also, the card association deducts it’s predetermined percentage of the transaction cost for the services provided. Finally, the issuer bank bills the customer for the amount, in case of credit card or debits the account in case of debit card.

In the existing system, the acquirer banks provide the POS terminal and payment processing services to the merchant. Therefore, each POS device corresponds to one issuing bank (also referred to as acquiring bank). If the merchant wishes to be tied up with multiple issuing banks directly, then the merchant needs to configure a different POS device for each of the issuing banks. This results in increased cost for configuring multiple POS device at the merchant site. Also, the maintenance of multiple POS devices adds up to the overall cost. The merchant in turn charge the customers in respect of these charges.

Merchants may further wish to receive the electronic payments by means of cards from customers without major expense and inconvenience of establishing the existing conventional infrastructure necessary to process electronic payments. Further, the acquiring banks receive a predetermined charge for each transaction as the acquiring bank hosts the platform for processing the transactions.

Therefore, there is a need for a method and a system for electronic payment transactions to overcome the above-mentioned problem.

SUMMARY OF THE DISCLOSURE

The shortcomings of the prior art are overcome and additional advantages are provided through the present disclosure. Additional features and advantages are realized through the techniques of the present disclosure. Other embodiments and aspects of the disclosure are described in detail herein and are considered a part of the claimed disclosure.

The present disclosure relates to a communication device and a method for performing electronic transactions.

The current trend of technology being wireless, using a communication device such as mobile phone would be advantageous to bring in different verticals into the payment domain like ticketing application on mobile etc. Also, keeping in mind the vulnerabilities in the mobile operating systems with respect to security, the mobile device can just be used as an intermediate medium to pass data to and fro between the computing device and the issuing banks, rather than completely processing the data by itself.

In one embodiment, the present disclosure relates to a communication device communicably connected to a computing device and a central server. The communication device comprises at least one processor, and a memory storing instructions executable by the at least one processor. The instructions configure the at least one processor to initiate an electronic payment transaction on the computing device, receive a packet with transaction input and information related to at least one issuing server of plurality of issuing servers from the computing device, wherein the packet is encrypted, transmit the encrypted packet to the central server, receive encrypted payment transaction approval from the central server, transmit the received encrypted payment transaction approval to the computing device, and receive authorization code and payment transaction information.

In an embodiment, the present disclosure relates to a method for transaction processing through a communication device connected between a computing device and a central server. The method comprises initiating an electronic payment transaction on the computing device, receiving a packet with transaction input and information related to at least one issuing server of plurality of issuing servers from the computing device, wherein the packet is encrypted transmitting the encrypted packet to the central server, receiving encrypted payment transaction approval from the central server, transmitting the received encrypted payment transaction approval to the computing device, and receiving authorization code and payment transaction information.

The aforementioned and other features and advantages of the disclosure will become further apparent from the following detailed description of the presently preferred embodiments, read in conjunction with the accompanying drawings. The detailed description and drawings are merely illustrative of the disclosure rather than limiting, the scope of the disclosure being defined by the appended claims and equivalents thereof.

BRIEF DESCRIPTION OF THE DRAWINGS

The features of the present disclosure are set forth with particularity in the appended claims. The embodiments of the disclosure itself, together with further features and attended advantages, will become apparent from consideration of the following detailed description, taken in conjunction with the accompanying drawings. One or more embodiments of the present disclosure are now described, by way of example only, with reference to the accompanied drawings wherein like reference numerals represent like elements and in which:

Fig. 1 illustrates a conventional system for financial transaction processing;

Fig. 2 illustrates an exemplary system for electronic transaction processing in accordance with an embodiment of the present disclosure;

Fig. 3 illustrates an exemplary block diagram of computing device in accordance with an embodiment of the present disclosure;

Fig. 4 illustrates an exemplary system for electronic transaction processing in accordance with an embodiment of the present disclosure;

Fig. 5 illustrates a flowchart showing method for initialization of computing device and communication device in accordance with an embodiment of the present disclosure;

Fig. 6A and 6B illustrates a flowchart showing method for electronic transaction processing in accordance with an embodiment of the present disclosure;

Fig. 7 illustrates a flowchart showing method for electronic transaction processing by a communication device in accordance with an embodiment of the present disclosure; and

Fig. 8 illustrates sequence diagram showing the flow of events for electronic transaction processing in accordance with an embodiment of the present disclosure.

The figures depict embodiments of the disclosure for purposes of illustration only. One skilled in the art will readily recognize from the following description that alternative embodiments of the structures and methods illustrated herein may be employed without departing from the principles of the disclosure described herein.

DETAILED DESCRIPTION

The foregoing has broadly outlined the features and technical advantages of the present disclosure in order that the detailed description of the disclosure that follows may be better understood. Additional features and advantages of the disclosure will be described hereinafter which form the subject of the claims of the disclosure. It should be appreciated by those skilled in the art that the conception and specific embodiment disclosed may be readily utilized as a basis for modifying or designing other structures for carrying out the same purposes of the present disclosure. It should also be realized by those skilled in the art that such equivalent constructions do not depart from the spirit and scope of the disclosure as set forth in the appended claims. The novel features which are believed to be characteristic of the disclosure, both as to its organization and method of operation, together with further objects and advantages will be better understood from the following description when considered in connection with the accompanying figures. It is to be expressly understood, however, that each of the figures is provided for the purpose of illustration and description only and is not intended as a definition of the limits of the present disclosure.

The present disclosure relates to an electronic payment transaction. In general, the present disclosure discloses multi-card enabled electronic payment transaction system. In a non-limiting embodiment, the present disclosure supports debit cards, credit cards, prepaid cards, corporate cards, gift cards and private label cards of different acquirer banks on a single electronic transaction payment system. Further, the system of the present disclosure supports multiple platforms, including but not limiting to, Europay®, Mastercard®, Visa® (EMV), American Express® (AMEX), National Payment Corporation of India (NPCI), and Aadhaar Enabled Payment System (AEPS). Also, the system of present disclosure supports payment to multiple banks through a single computing device. The system of the present disclosure facilitates any bank to authorize transaction generated from the cards issued by them.

Fig. 2 illustrates a system 200 for electronic transaction processing in accordance with an embodiment of the present disclosure.

The system 200 comprises a plurality of computing devices 202 and a plurality of communication devices 204, such that each computing device 202 is connected to a corresponding communication device 204 through short range communication networks 206. In an embodiment, the computing devices 202 and the communication devices 204 may be connected to each other by the network 206 including, but not limited to, Bluetooth. Further, the plurality of communication devices 204 is connected to a central server 208 through a network 210, and the central server 208 is in turn connected to a plurality of issuing servers 212 through the network 214.

It will be understood by one skilled in the art that connections to the network 210 and 214 may be wired, wireless or any combination thereof. For example, the plurality of communication devices 204 maybe connected to network 210 and the central server 208 and the plurality of issuing servers 212 may be connected to the network 214 through wireless local area network (WLAN) technologies (e.g., Wi-Fi, 3G, LTE, ) or through a physical network connection to a computer network router or switch (e.g., Ethernet). The communication device 204 may be connected to network 210 through mobile cellular networks, which may be operable to additionally provide cellular-specific services such as SMS text message notification.

The computing device 202 and the communication device 204 may be at any location where a customer and a merchant interact, wherein a buyer provides payment in exchange for goods or services. For example, the computing device 202 and the communication device 204 may be provided at any retail location, office, or other suitable location and or environment where a financial transaction may be processed. The plurality of computing devices 202 may include, but are not limited to, pin pad devices, other forms of hypermedia devices/interfaces, or any other suitable devices or platforms that are capable of enabling electronic payments. The plurality of communication devices 204 may include, but are not limited to, laptops, computer devices, smart phones, desktop, Personal Digital Assistant (PDA), tablet etc. The plurality of issuing servers 212 are the servers associated to the financial institutions, for example banks that issued the payment instruments (alternatively referred as card/cards), such as, but not limited to, debit cards, credit cards, prepaid cards, corporate cards, gift cards and private label cards. The financial institution which has issued the card authorizes and processes the payment transaction. In an embodiment, if any bank is not connected to the central server 208, then a server (alternatively referred as acquiring bank server/lead default bank) forwards the transaction to card association like Visa® / MasterCard® etc. In turn, the card association forwards the transaction to issuing server for transaction authorization. In an embodiment, one of the pluralities of issuing servers 212 is selected as the acquiring server. Further, the central server 208 is the intermediate server which connects the servers of one or more issuing banks to the merchant device, where the electronic payment transaction (alternatively referred as payment throughout the present disclosure) is initiated.

The electronic payment transactions involve various parties and various steps. Briefly, at least one of the computing device 202 and the communication device 204 initiate the payment process. Then, the transaction input is provided through the computing device 202 to the communication device 204. As illustrated in Fig. 3, the computing device 202 comprises an input unit 302 to receive the transaction input and a communication module 304 to transmit the transaction information. In an embodiment, the communication module 304 may comprise Bluetooth module. The input unit 302 comprises a keypad 306, an authentication unit 308 and at least one card reader 310. The keypad 306 is used to enter input related to the transaction like purchase amount, customer card pin etc. The authentication unit 308 comprises biometric scanners and other means for authentication of the customers. The biometric scanners can include, but are not limited to, iris scanner, face recognition scanner, fingerprint scanner etc. Further, the input unit 302 comprises at least one card readers 310 to read the card information. The communication device 204 receives the transaction input including, but not limited to, card data, customer authentication data, card pin and purchase amount data etc. and transmits it through the network 210 to the central server 208. The central server 208 then determines and forwards the transaction information to the appropriate issuing server 212 through the network 214. The payment transaction is then authorized by the issuing server 212, and an authorization message is sent back through the communication device 204 through the central server 208. If the transaction is authorized, the purchase amount of money is charged from the card of the customer by the issuing server 212.

Fig. 4 illustrates an exemplary system for electronic transaction processing in accordance with an embodiment of the present disclosure. The system of Fig. 4 is similar to the system as disclosed in Fig. 2. However, in addition to the central server 208 being connected to the issuing server 212 and the plurality of communication devices 204, an init (initialization) server 402 and a remote key management server 404 is also configured. The init server 402 is configured to initialize the computing devices 202 and the communication devices 204 belonging to a merchant before accepting transactions from the said merchant. The remote key management server 404 connected to the one or more issuing servers 212 to retrieve the keys from the issuing server banks and transmit the same to the computing devices 202 for using while PIN Block is created. .

In an exemplary embodiment, the init server 402 and the remote key management server 404 can be configured as a separate unit. In another exemplary embodiment, the functionality of the init server 402 and the remote key management server 404 can be integrated into the central server 208 itself.

Firstly, before any transaction happens on the central server 208, the computing devices 202 and the corresponding communication devices 204 are authorized by the init server 402 before initializing the said devices. The method for initialization of the computing device 202 and the communication device 204 is explained in Fig. 5. In an embodiment, the electronic payment application is configured on the communication device 204. The communication device 204 is first paired to the corresponding computing device 202 by establishing a connection at step 502. The communication device 204 transmits its information like IMEI number, phone number, and merchant demographic data to the computing device 202 at step 504. The computing device 202 includes its own device information like device ID etc. and encrypts the combined data at step 506. The encrypted data is then transmitted to the init server 402 through the communication device 204 at step 508. The init server 402 authorizes the received data and after successful authorization, generates a packet with predefined merchant ID, computing device ID and central server information with encryption. The encrypted packet is then sent to the communication device 204 at step 510. The communication device 204 then transmits the encrypted packet to computing device 202 for decryption at step 512. The computing unit 202 decrypts the packet to retrieve the merchant ID, computing device ID and central server information and forwards the relevant information back to the communication device 204 for conducting transactions at step 514.

Once the initialization is performed for the merchant device, the computing device 202 is provided with a predetermined key for each of the issuing banks for secure transaction by the remote key management server 404. In an embodiment, the computing device 202 comprises issuing bank name, issuing bank ID and Internal Memory Key Reference (IMKR) also referred to as key. Table 1 below illustrated the details of issuing bank stored in the computing device 202. The pin of any transaction relating to a particular issuing bank is encrypted using the corresponding key stored in the computing device 202 and then transmitted further.

BANK Bank ID Key
Bank 1 ID1 Abc123
Bank 2 ID2 Gef345
Bank 3 ID3 Mno789
.
. .
. .
.
Bank n IDn Xyz567

Table 1

In an embodiment, the computing device 202 stores key of only one issuing bank, preferably the default acquirer bank also referred to as lead bank. In an embodiment, the default acquiring bank is selected by the central server 208 from the one or more issuing banks connected to the network 214. The default acquirer bank key is preloaded into the computing unit while initialization of the computing device 202. All the transactions, relating to any issuing server bank are encrypted using the same key. The central server 208 then translates the received pin with the key of the issuing server 212 who has issued the card.

Figs. 6A and 6B illustrate a method for electronic transaction processing in accordance with an embodiment of the present disclosure. Fig. 8 illustrates sequence diagram showing the flow of events for electronic transaction processing.

The method comprises initiating a payment transaction at a merchant location using the predefined IDs assigned by the central server 208. The payment transaction can be initiated through the computing device 202 by swiping or inserting the card associated to the customer. In an embodiment, the payment transaction can be initiated through the communication device 204 associated with the corresponding computing device 202, where the communication device 204 prompts the computing device 202 to provide transaction information.

Then, input about the transaction is received by the computing device 202 from the input unit 302 at step 602. The transaction input comprises card information. Further, the transaction input may comprise at least one of card pin and biometric data for authentication of the customer. As the computing device 202 stores keys of the plurality of issuing servers 212, the computing device 202 can prepare a PIN Block relating to any of the associated issuing server 212. Also, the computing device 202 is configured to detect the issuing server / financial institution upon receiving card information. The computing device 202 then determines an issuing server of the card from the plurality of issuing servers which has issued the card of the customer based on the received transaction input at step 604. Then, a packet comprising the transaction input and the determined issuing server information is formed at step 606. First, the computing unit encrypts the card pin. In one embodiment, the card pin may be encrypted using the predetermined key of the determined issuing server provided by the remote key management server 404 at the time of initialization. In an embodiment, the card pin can be encrypted by using a default predetermined key. The card pin is later translated by the central server 208 which encrypts the card pin using the predetermined key of the issuing server 212 for payment processing. Then, the entire packet is also encrypted by the computing device 202. In a non-limiting embodiment, the packet may be encrypted by techniques like timestamp encryption, Derived Unique Key Per Transaction (DUKPT) based encryption and Public Key Infrastructure (PKI) based encryption. However, a person skilled in the art would understand that any other encryption technique for securing the data can be used with present disclosure. Then, at step 608, the encrypted packet is transmitted to the communication device 204 by the computing device 202. The communication device 204 acts as forwarding device and transmits the received encrypted packet, without any processing, to the central server 208 at step 610.

Now, the encrypted packet comprising the transaction input and the issuing server information is received by the central server 208 at step 612. The encrypted packet is decrypted to determine the issuing server from the plurality of issuing servers 212 which issued the card at step 614. The central server 208 then prepares a packet with necessary transaction request and transmits it to the determined issuing server 212 for authorization at step 616. The issuing server 212 validates the card information and provides the transaction approval upon authorization at step 618. The issuing server 212 then debits the card of the customer for the amount. The payment transaction approval is received by the central server 208, which encrypts the payment transaction approval and transmits it to the communication device 204 at step 620. The communication device 204 forwards the encrypted packet, as is, to the computing device 202 for decryption at step 622. The computing device 202 decrypts the payment approval information and sends back the transaction log details to the communication device 204 for settlement batch keeping at step 624.

Fig. 7 illustrates a flowchart showing method for electronic transaction processing by a communication device in accordance with an embodiment of the present disclosure. Firstly, an electronic payment transaction is initiated on the computing device 202 at step 702. In an embodiment, the payment transaction can be initiated on the communication device 204 as well and then transmitted for the computing device 202 for processing. At step 704, the communication device 204 receives a packet with transaction input and information related to at least one issuing server of plurality of issuing servers 212 from the computing device 202. The packet which is received by the communication device 204 is encrypted by the computing device 202 before transmitting. The communication device 204 transmits the encrypted packet to the central server 208 at step 706. The encrypted packet is processed and processing of the transaction happens between the central server 208 and the at least one issuing server. Then at step 708, the communication device 204 receives encrypted payment transaction approval from the central server 208. The communication device 204 transmits the received encrypted payment transaction approval to the computing device 202 at step 710. The computing device 202 then transmits authorization code and payment transaction information, which is received and stored by the communication device 204 as reference for a settlement processing at step 712.

In an embodiment, the method of the present disclosure can be implemented in existing payment transaction systems.

In an embodiment, no charges are to be paid by the issuing banks to the acquiring bank, as the issuing servers are directly addressed by the merchant end device through the central server 208.

In an embodiment, the present disclosure allows for transaction for any amount. There is no minimum limit of purchase for transacting through the present system.

In an embodiment, the method and system of the present disclosure allows for hassle free transaction at merchant site irrespective of the type of card and bank associated with the card. The whole setup is arranged at the central server, hence the banks do not need to manage a separate module. This eliminates setup and maintenance cost at the bank end.

In an embodiment, the setup at the merchant side for hosting payments remains same irrespective of the number of issuing banks connected with the merchant, i.e. a computing device and a communication device. In an embodiment, the method of the present disclosure allows for reduced transaction service charge as in most cases, there is no intermediate bank processing the transactions. In an embodiment, the merchant can use the present system to provide value added services including, but not limited to, ticketing, bill desk etc.

In an embodiment, even low and mid-sized merchant can implement the present system as the system is low cost. Further, as the setup at merchant end is simple (a computing device and a communication device), the maintenance of the setup is easy and cost effective.

This written description uses examples to disclose embodiments of the present disclosure, including the best mode, and also to enable any person skilled in the art to practice the technology disclosed in the present disclosure, including making and using any devices or systems and performing any incorporated methods. The patentable scope of the present disclosure is defined by the claims, and may include other examples that occur to those skilled in the art. Such other examples are intended to be within the scope of the claims if they have structural elements that do not differ from the literal language of the claims, or if they include equivalent structural elements with insubstantial differences from the literal languages of the claims.

Referral Numerals:

Reference number Description
202 Computing device
204 Communication device
206 Network
208 Central Server
210 Network
214 Network
302 Init Server
304 Remote Key Management Server