Multi-commerce channel wallet for authenticated transactions

Abstract

A phone-based electronic wallet providing authenticated transactions across multiple channels of commerce. The electronic wallet may be used for point-of-sale payments, remote mobile payments and / or web-based payments, and may use authentication tools such as offline PINs, SecureCode PINs and / or online PINs.

Description

[0001]This application claims the benefit of U.S. Provisional Application Ser. No. 61 / 372,955 filed Aug. 12, 2010 and U.S. Provisional Application Ser. No. 61 / 468,847 filed Mar. 29, 2011, the disclosures of which are hereby incorporated by reference in their entirety.BACKGROUND OF THE INVENTION[0002]The present invention relates to transactions for payment of goods / services and, more particularly, to a phone-based electronic wallet providing authenticated transactions across multiple channels of commerce.[0003]Both credit cards and debit cards are commonly used in the retail environment for the purchase of goods and / or services. Such cards are popular with consumers, and merchants accept these cards as a necessary part of doing business, i.e., they provide an effective substitute to cash and checks.[0004]These card-based transactions are typically performed across multiple channels of commerce. For example, card-based transactions may be performed in person at a retail outlet, via a...

AI Technical Summary

Benefits of technology

[0007]The present invention provides a mobile-phone centric electronic wallet providing the security of a virtual card terminal for online and off-line purchases. A wallet server (e.g., an application running in a cloud) and synchronized companion mobile and computer interface enables consumers to make purchases (which can include: retail, e-commerce, mobile, call center, etc) and use the mobile phone to authenticate against one of the authentication techniques tied to the chosen card (which can include: an offline PIN utilizing a secure memory chip, a MasterCard SecureCode PIN, and / or an online PIN such as an ATM PIN) where the necessary transaction and card specific authentication and processing method is directed by a central directory. The authentication process of the present invention allows participating banks to deem such transactions as more fully authenticated, which will allow them to lower the costs charged to merchants. The authentication process of the present invention will also limit / reverse the shifting of liability to the merchant since these more fully authenticated transactions will have less fraud associated therewith.

[0008]This system with its various authentication mechanisms will preferably utilize a central, hosted directory, which, when queried by the wallet application during a transaction, will instruct the wallet how the transaction needs to be authenticated and processed, depending on the card used and type of transaction. In all instances, the authentication result and authentication method will be communicated from the wallet to the merchant via specific transaction codes and / or transaction tokens that will further enable proper risk scoring, authorization processing, and enforcement of specific scheme rules and terms and conditions (e.g. pricing, rules, liability shift, etc.) by the merchant acquirer. The wallet facilitates authentication from multi-commerce channels and will leverage multi-band communication to facilitate transaction authentication.

[0011]For other remote (e-commerce, mobile or call center) purchase transactions, this invention builds on the pre-existing MasterCard SecureCode (MSC) system. It is contemplated herein that the SecureCode protocol can be extended to include a novel SecureCode wallet Application Programming Interface (API), to enable a MSC validation within the wallet interface through the wallet API, instead of through an internet browser session / window to communicate with the bank's authentication server. To facilitate this, the mobile phone will prompt the user for entry of the MSC password or PIN within the wallet-driven interface on the phone and communicate securely with the ACS (the bank's MSC authentication server). Successful authentication will be communicated from the wallet to the merchant's checkout system to be relayed to the Acquirer for approval. This last step preferably replaces the pre-existing MSC Merchant software, thus reducing the implementation requirements for the merchant. Finally, this interface will preferably allow setup and reset of a MSC password or PIN, again without the need to use a separate browser window or session with the bank's authentication server.

[0012]Thus, the system and method of the present invention provide an electronic wallet for authenticating transactions across multiple channels of commerce using the consumer's own mobile phone. The present invention provides better economics for merchants through lower fee structures, and limits / reduces the shifting of fraud liability to the merchant for remote transactions. The present invention is scalable in design to provide easy integration for merchants, and to avoid issuer by issuer sales and implementations. It is also easy to deploy directly to customers. Finally, the present invention will promote profitability by driving transaction volumes and revenues.

Problems solved by technology

These various transactions are conducted in different ways and, accordingly, have different levels of fraud risk associated therewith.

Those knowledgeable in the field will recognize that the risk of financial fraud is greater during remote transactions because there is less ability for the merchant to verify the identity and authenticity of the cardholder.

However, as the number of remote transactions increase, so does the risk of financial fraud.

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