Granted Patent B2

US 9,390,410 · App. 13/031,173 · Granted Jul 12, 2016

Abstract

Claims (26)

1. A method implemented on a computer server in an automatic transaction processing service for settling contactless consumer transactions at a merchant, the method comprising:

providing a contactless consumer identifier mechanism to a financial institution for issuance to a consumer associated with the financial institution, the contactless consumer identifier mechanism including a dynamic identifier whereby the dynamic identifier contains no static consumer identity information, the dynamic identifier comprising a first key and a second key, the first key comprising a unique identification number associated with the consumer identifier mechanism, the second key comprising a first dynamic identification number, wherein the unique identification number and the first dynamic identification number are used for authenticating a contactless transaction between the contactless consumer identifier mechanism and a contactless terminal reader;

providing the contactless terminal reader for use at a merchant terminal, the contactless terminal reader reading the first key and the second key, and after reading the first key and the second key, transmitting a second dynamic identification number to the consumer identifier mechanism for replacing the first dynamic identification number in the contactless consumer identifier mechanism with the second dynamic identification number, wherein the unique identification number and the second dynamic identification number are used for authenticating a subsequent contactless transaction between the contactless consumer identifier mechanism and the contactless terminal reader or a different contactless terminal reader at a different merchant terminal;

receiving, at the computer server in the automatic transaction processing service, the contactless transaction from the merchant terminal, the contactless transaction having a gross transaction amount, and the contactless transaction being dynamically associated with the consumer by the dynamic identifier;

assessing, at the computer server in the automatic transaction processing service, an issuing fee payable to the financial institution associated with the consumer for the contactless transaction;

assessing, at the computer server in the automatic transaction processing service, a processing fee to be retained by the automatic transaction processing service for the contactless transaction,

wherein the processing fee is debited from the gross transaction amount for the contactless transaction; and

directing, at the computer server in the automatic transaction processing service, an accepting fee to a financial institution that is associated with the merchant, the accepting fee being an amount equal to the gross transaction amount for the contactless transaction debited by at least the processing fee.

2. The method according to claim 1 , wherein the financial institution associated with the consumer is the same financial institution that is associated with the merchant.

3. The method according to claim 2 , wherein directing the accepting fee to the financial institution comprises directing a larger payment in settlement of the contactless transaction than if the financial institution associated with the consumer is different from the financial institution associated with the merchant.

4. The method according to claim 1 , wherein the contactless transaction comprises at least two contactless transactions.

5. The method according to claim 1 , wherein providing the contactless terminal reader for use at the merchant terminal comprises providing computer-implemented instructions stored on a computer medium at an existing point-of-sale terminal.

6. The method according to claim 1 , wherein the contactless consumer identifier mechanism comprises a near-field communications chip.

7. A method for authenticating a transaction, the method comprising:

accessing a first key and a second key in an identifier mechanism;

when conducting a first transaction:

transmitting the first key from the identifier mechanism to a first terminal reader; and

transmitting the second key from the identifier mechanism to the first terminal reader, wherein the first transaction is authenticated based on the first key and the second key;

receiving a third key from the terminal reader, wherein the second key in the identifier mechanism is replaced with the third key;

when conducting a second transaction:

transmitting the first key from the identifier mechanism to the first terminal reader or a second terminal reader; and

transmitting the second key from the identifier mechanism to the first terminal reader or the second terminal reader, wherein the second transaction is authenticated based on the first key and the third key.

8. A method for authenticating a transaction, the method comprising:

receiving, at a terminal reader, a first key from an identifier mechanism, wherein the first key is stored in the identifier mechanism;

receiving, at the terminal reader, a second key from the identifier mechanism, wherein the second key is stored in the identifier mechanism, wherein a first transaction conducted between the terminal reader and the identifier mechanism is authenticated based on the first key and the second key received by the terminal reader; and

transmitting, from the terminal reader to the identifier mechanism, a third key, wherein the second key stored in the identifier mechanism is replaced with the third key, wherein a second transaction conducted between the terminal reader, or a second terminal reader, and the identifier mechanism is authenticated based on the first key and the third key received by the terminal reader or the second terminal reader.

Assignments (13)