WO2010122497A1

WO2010122497A1 - A payment transaction processing and authorization system and method

Info

Publication number: WO2010122497A1
Application number: PCT/IB2010/051732
Authority: WO
Inventors: Paul Kyriacou
Original assignee: Capicol (Pty) Limited
Priority date: 2009-04-20
Filing date: 2010-04-20
Publication date: 2010-10-28

Abstract

A payment transaction processing and authorization system 10 comprises at least one payment station 16 comprising a local processor 20. The local processor is connected to a card reader 26 for cards 25 to be presented by bearers of the cards and a fingerprint scanner 24. The processor is configured to retrieve from a memory arrangement 35, stored data relating to the fingerprints of authorized users of the card. The scanner 24 is configured to generate data relating to the fingerprint of the bearer on presentation at the payment station. The processor is further configured to process and compare the stored data and the data generated and to authorize or enable the payment transaction, if there is a predetermined correlation between the stored data and the generated data.

Description

A PAYMENT TRANSACTION PROCESSING AND AUTHORIZATION SYSTEM AND METHOD

INTRODUCTION AND BACKGROUND

This invention relates to a payment transaction processing and authorization system and a method of processing and authorizing a payment transaction.

It is well known that fraudulent payment transactions are mushrooming. In many cases, fraudsters are using stolen, false or cloned payment tokens and present these to a payee. Accordingly, an account of an innocent party to whom the stolen token belongs or whose token has been cloned, is unjustifiably debited. Currently, it is difficult to validate a token in real time on presentation thereof at a payment terminal. In the result, innocent parties and/or financial institutions and/or insurance companies suffer large losses.

OBJECT OF THE INVENTION

Accordingly, it is an object of the present invention to provide a payment transaction processing and authorization system and a method of processing and authorizing a payment transaction with which the applicant believes the aforementioned disadvantages may at least be alleviated.

SUMMARY OF THE INVENTION

According to the invention there is provided a payment transaction processing and authorization system comprising: at least one payment station comprising a local processor; the local processor being connected to a reader for tokens to be presented by bearers of the tokens; and a scanner; the reader being configured to input data carried by a token presented by a bearer and the processor being configured to retrieve from a memory arrangement, stored data relating to a biological feature of a part of the body of authorized users of the token; the scanner being configured to generate data relating to the biological feature on presentation of the part of the body of the bearer at the payment station; and the processor further being configured to process and compare the stored data and the data generated and to authorize the payment transaction, if there is a predetermined correlation between the stored data and the generated data. The payment station may comprise means for automatically determining whether the part of the body presented, is part of the body of the bearer.

The local processor may be configured to retrieve from the memory arrangement data relating to a likeness of authorized users of the token and to cause the likeness, based on the retrieved data, to be displayed on a monitor at the at least one payment station .

Also included within the scope of the present invention is a payment transaction processing and authorization system comprising: at least one payment station comprising a local processor; the local processor being connected to a monitor and a reader for tokens presented by bearers of the tokens; the reader being configured to input data carried by a token presented by a bearer; and the processor being configured to retrieve from a memory arrangement data relating to a likeness of authorized users of the token and to cause the likeness, based on the retrieved data, to be displayed on the monitor. The system may comprise a central authentication facility comprising an authentication server and an authentication database and wherein the at least one payment station is connectable to the authentication facility.

The memory arrangement may comprise the authentication database.

The memory arrangement may comprise a memory device on the token.

The local processor may be connected to a signature-capturing device and the payment station may be configured, if the payment transaction is enabled, to prompt the bearer to apply a signature of the bearer on the signature-capturing device, to generate digital data relating to the signature applied and to forward the data relating to the signature to the authentication database.

Further included within the scope of the invention is a payment transaction processing an authentication system, the system comprising: at least one authentication server; at least one payment station connected to the authentication server; the payment station comprising a local processor and a signature-capturing device connected thereto, the signature-capturing device comprising a region sensitive to the pattern of a manual signature applied by a payer and configured to generate digital data relating to the pattern of the signature; and the processor and authentication server being configured to store the generated data in a database associated with the authentication server in relation to data relating to a payment transaction made by the payer.

According to another aspect of the invention there is provided a method of processing and authorizing a payment transaction, the method comprising the steps of: prompting at a payment station a prospective payer to tender a payment token and to present for scanning, a part of the body of the prospective payer and which part of the body is associated with a biological feature; scanning the part of the body and the feature; generating data relating to the scanned feature; comparing the generated data to pre-stored data relating to the feature of authorized users of the token; and declining the transaction if there is not a predetermined correlation between the stored data and the generated data.

The pre-stored data may be stored on a memory device of the token and the comparison may be made at the payment station.

Alternatively, the pre-stored data may be stored in a central database, the pre-stored data may be retrieved from the central database and the comparison may be made at the payment station.

Further alternatively, the pre-stored data may be stored in a central database, the generated data may be forwarded to a central facility and the comparison may be made at the central facility and a result may be forwarded to the payment station.

Still further according to the invention there may be provided a method of processing and authorizing a payment transaction, the method comprising the steps of: prompting a prospective payer to tender a payment token at a payment station; retrieving data relating to a likenss of authorized users of the token; causing the likeness to me displayed; and causing a comparison between the displayed likeness and the bearer to be made, before a transaction is authorized.

Yet further according to the invention there may be provided a method of processing and authenticating a payment transaction, the method comprising the steps of: if a payment transaction by a payer is authorized, prompting the payer at a payment station to apply a signature of the payer on a signature-capturing device; causing the signature to be converted into digital data relating to the signature; and causing the data relating to the signature to be stored in an authentication database in relation to data relating to the transaction. BRIEF DESCRIPTION OF THE ACCOMPANYING DIAGRAMS

The invention will now further be described, by way of example only, with reference to the accompanying diagrams wherein: figure 1 is a diagrammatic block diagram of a payment transaction processing and authorization system according to the invention; figure 2 is a first part of a flow diagram illustrating a method of processing and authorizing a payment transaction; and figure 3 is a second part of the flow diagram illustrating the method of processing and authorizing a payment transaction.

DESCRIPTION OF A PREFERRED EMBODIMENT OF THE INVENTION

A payment transaction processing and authorization system according to the invention is generally designated by the reference numeral 10 in figure 1 .

The system 10 comprises an authentication facility 12 comprising an authentication server 14. A plurality of payment stations, only one of which is shown at 1 6 in figure 1 , are connected to the authentication facility 12. The payment station 16 comprises a local processor 20 and connected to the processor a communications device 18, a monitor 1 9, a data entry means, such as a keyboard (not shown), a printer 22 and a scanner 24 for scanning and capturing data relating to a biological feature of a part of the body (such as a finger or eye) of a bearer of a payment token. The scanner 24 or another special device at the payment station may comprise means for electronically and automatically determining whether the body part presented, is part of the body of the bearer, alternatively a fake part or amputated part of the body of an authorized user. The means may for example comprise a circuit connected to the processor 20 for detecting a pulse in the body part. If a pulse is detected, it is assumed that the part presented forms part of the bearer body and if not, it is assumed that the part presented, is not part of the body of the bearer.

The station 16 further comprises at least one of a known card reader 26, a known cheque reader (not shown), a known signature-capturing device 28 and a known cash checker (also not shown) connected to the processor 20. In use, the processor 20 executes an authorizing or enabling and/or authentication application, as graphically illustrated in figures 2 and 3. The authentication facility 12 is connected to computer systems of a plurality of financial institutions, only one of which is shown at 30 in figure 1 . The authentication facility 12 may comprise one central authentication station, as shown in figure 1 , or a plurality of distributed and interconnected authentication stations. The station comprises the authentication server 14 and a local or remote database 32 for logging transaction data, as will hereinafter be described.

The payment station 16 is one of a plurality of payment stations associated with a particular vendor of services or goods. Payment stations associated with a plurality of different vendors may be connected to the authentication facility 1 2. The authentication facility 12 is also connected to the central computer systems of a plurality of vendors, only one of which is shown at 34 in figure 1 .

The card reader 26 is configured to read a card, such as a known credit card, a known debit card and a special card (hereinafter referred to as "S-Card") comprising a processor and/or digital memory device 35 and which card is associated with at least one authorized user. In the memory device of the S-Card there is stored at least one of data relating to a PIN of the authorized user, data relating to a card number, data relating to the likeness of the authorized user and data relating to a biological feature of the authorized user. The biological feature may for example be a fingerprint or a retina pattern of the authorized user. The aforementioned scanner 24 is configured to input data relating to the feature into the processor 20.

The method according to the invention is illustrated in figures 2 and 3. A self-explanatory initialization phase of the payment station 16 is illustrated at 40 in figure 2. At 42, an attendant inserts a vendor card (not shown) into the card reader 26. Data is read and at 44, the attendant is prompted to enter a PIN. If the PIN entered corresponds with a PIN stored on the vendor card, the attendant is allowed to proceed and to await at 45 the first payment transaction.

A prospective payer and bearer of a payment token 25 attending to the payment station 16 is invited to tender a payment token. Depending on the nature of the token, it is scanned by a suitable one of the aforementioned card reader 26, the cheque reader and the cash checker. In the event of a credit card, a dedicated vendor card and a cheque, the processor 20, at 46, 48 and 50 respectively, branches to a point C in the aforementioned application program, also shown in figure 3. If the token is a debit card, the processor branches to point B in the aforementioned program. If the token is the S-Card, the processor branches to point A in the aforementioned program. Points A, B and C are also shown in figure 3 and in the following part of this description, reference will be made to figure 3.

Referring to point C, in the event of a PIN card, the bearer-payer is prompted at 60 to enter a PIN on the aforementioned keypad at the payment station. If, at 62, the PIN entered, matches the PIN stored on and read from the card, the payer is prompted, at 64, to enter the amount to be paid from an account of the payer at a first financial institution holding a relevant account of the payer to a designated account of the vendor, which may be held by a second financial institution. The first and second financial institutions may be the same or may be different.

At 66, the processor at the payment station 16 connects via device 18 to the server 14 at the authentication facility 12. At 68, the server at the authentication facility 12 connects to the computer system of the first financial institution, namely that of the payer, and, if the proposed transaction is in order (that is if there is sufficient credit), to the computer system of the second financial institution, namely that of the vendor. Data relating to a relevant funds transfer from the first institution to the second financial institution is caused to be transmitted between the computer system of the first financial institution, the authentication facility 1 2 and the computer system of the second financial institution. It will be clear that in some cases, for example where there is not sufficient credit available to the payer at the first financial institution, the transaction will not be authorized and the funds transfer cannot be effected, resulting in an unsuccessful transaction.

At 70, and at the authentication station 12, the result of the transaction and all relevant and/or associated data relating to the transaction is stored in the database 32. At 72, the authentication station 12, causes the result of the transaction to be transmitted to the payment station 16.

At 74, the result is displayed at the payment station 16. If the transaction was successful, the payer is prompted to apply her signature to a designated region of the device 28 which is sensitive to the pattern of the applied signature. At 76, data relating to the signature is digitally captured by the device and at 78, the processor 20 at the payment station connects to the authentication facility 12, to save in database 32 and at 80, data relating to the signature in relation to the aforementioned transaction data. At 82, a slip is printed, which is presented to the payer. Thereafter, the processor returns to point 45 (see figure 2) in the aforementioned application, to await a next payment transaction.

Referring now to point B, in the case of a debit card transaction, after the payer has entered his PIN at 60 and the PIN matches the PIN stored on the card, steps 64 to 82 referred to hereinbefore are followed.

Referring now to point A, that is, when the aforementioned S-Card 25 is presented as token by a prospective payer or bearer and inserted into the reader 26, the prospective payer is prompted at 90, to apply a finger of the prospective payer on scanner 18. Data relating to a scanned fingerprint is generated and compared to data relating to the fingerprints of authorized users of the card stored in the memory device 35 or in the database 32. The comparison may be made at the payment station 1 6 or at the authentication facility 12. If there is a predetermined correlation in the form of a match and as shown at 92, the transaction is authorized or enabled in that the payer is prompted to enter his/her PIN. In some applications the processor 20 at the payment station 16 may further or alternatively retrieve from the data base 32 or the memory device 35 pre-stored data relating to the likeness of authorized users of the card. Based on the retrieved data, the likeness of the authorized user is displayed at 96 on the monitor 19 at the payment station. If after a comparison, which may be made automatically by the processor 20 and/or visually by the attendant, a match is found, the payer is prompted to enter at 60 his /her PIN. Thereafter steps 62 to 82 and alternatives as illustrated and described hereinbefore are followed.

It is believed that the processing and authentication performed with the system 10 and in accordance with the method according to the invention may provide better security to the authorized user and/or the vendor and/or the financial institutions and/or insurers concerned.

Claims

1 . A payment transaction processing and authorization system comprising: at least one payment station comprising a local processor; the local processor being connected to a reader for tokens to be presented by bearers of the tokens; and a scanner; the reader being configured to input data carried by a token presented by a bearer and the processor being configured to retrieve from a memory arrangement, stored data relating to a biological feature of a part of the body of authorized users of the token; the scanner being configured to generate data relating to the biological feature on presentation of the part of the body of the bearer at the payment station; and the processor further being configured to process and compare the stored data and the data generated and to authorize or enable the payment transaction, if there is a predetermined correlation between the stored data and the generated data.

2. A system as claimed in claim 1 wherein the payment station comprises means for automatically determining whether the part of the body presented, is part of the body of the bearer.

3. A system as claimed in any one of the preceding claims wherein the local processor is configured to retrieve from the memory arrangement data relating to a likeness of authorized users of the token and to cause the likeness, based on the retrieved data, to be displayed on a monitor at the at least one payment station .

4. A payment transaction processing and authorization system comprising: at least one payment station comprising a local processor; the local processor being connected to a monitor and a reader for tokens presented by bearers of the tokens; the reader being configured to input data carried by a token presented by a bearer; and the processor being configured to retrieve from a memory arrangement data relating to a likeness of authorized users of the token and to cause the likeness, based on the retrieved data, to be displayed on the monitor.

5. A system as claimed in any one of claims 1 to 4 comprising a central authentication facility comprising an authentication server and an authentication database and wherein the at least one payment station is connectable to the authentication facility.

6. A system as claimed in claim 5 wherein the memory arrangement comprises the authentication database.

7. A system as claimed in any one of claims 1 to 6 wherein the memory arrangement comprises a memory arrangement on the token.

8. A system as claimed in any one of claims 5 to7 wherein the local processor is connected to a signature-capturing device and wherein the payment station is configured, if the payment transaction is enabled, to prompt the bearer to apply a signature of the bearer on the signature-capturing device, to generate digital data relating to the signature applied and to forward the data relating to the signature to the authentication database.

9. A payment transaction processing an authentication system, the system comprising: at least one authentication server; at least one payment station connected to the authentication server; the payment station comprising a local processor and a signature-capturing device connected thereto, the signature-capturing device comprising a region sensitive to the pattern of a manual signature applied by a payer and configured to generate digital data relating to the pattern of the signature; and the processor and authentication server being configured to store the generated data in a database associated with the authentication server in relation to data relating to a payment transaction made by the payer.

10. A method of processing and authorizing a payment transaction, the method comprising the steps of: prompting at a payment station a prospective payer to tender a payment token and to present for scanning a part of the body of the prospective payer and which part of the body is associated with a biological feature; scanning the body part and the feature; generating data relating to the scanned feature; comparing the generated data to pre-stored data relating to the feature of authorized users of the token; and declining the transaction if there is not a predetermined correlation between the stored data and the generated data.

1 1 . A method as claimed in claim 10 wherein the pre-stored data is stored on a memory arrangement of the token and wherein the comparison is made at the payment station.

12. A method as claimed in claim 10 wherein the pre-stored data is stored in a central database, wherein the pre-stored data is retrieved from the central database and the comparison is made at the payment station.

13. A method as claimed in claim 10 wherein the pre-stored data is stored in a central database, wherein the generated data is forwarded to a central facility and wherein the comparison is made at the central facility and a result is forwarded to the payment station.

14. A method of processing and authorizing a payment transaction, the method comprising the steps of: prompting a prospective payer to tender a payment token at a payment station; retrieving data relating to a iikenss of authorized users of the token; causing the likeness to me displayed; and causing a comparison between the displayed likeness and the bearer to be made, before a transaction is authorized.

15. A method of processing and authenticating a payment transaction, the method comprising the steps of: if a payment transaction by a payer is authorized, prompting the payer at a payment station to apply a signature of the payer on a signature-capturing device; causing the signature to be converted into digital data relating to the signature; and causing the data relating to the signature to be stored in an authentication database in relation to data relating to the transaction.