Transaction authorization process using blockchain

Abstract

Systems and methods for transaction authorizations using a distributed database are disclosed. The system may allow registered transaction account holders and merchants to interact and complete transactions according to workflows enforced by smart contracts. The system may include an issuer system that receives a transaction authorization request comprising a merchant ID, a transaction account number, a transaction amount, and a transaction ID. The issuer system may retrieve a merchant public key and a smart contract based on the merchant ID, and a user public key based on the transaction account number. The issuer system may invoke the smart contract by passing the user public key and the transaction ID to the smart contract. The system may propagate transaction data (e.g., the merchant ID, the transaction account number, the payment amount, a transaction status, etc.) to a blockchain network for writing to a blockchain according to the invoked smart contract.

Description

FIELD[0001]This disclosure generally relates to transaction authorizations and payments, and more particularly, to systems and methods for transaction authorizations, payments, and related processes using a distributed database.BACKGROUND[0002]Payment networks typically implement various systems for processing transactions between merchants and customers. Merchants are members of the payment network and the merchants may be authorized to charge to customer accounts. Customers have a transaction account with the payment network. To complete a transaction, a merchant typically transmits a payment request (or settlement) to the payment network with transaction details and the card member's account information. Typically, the payment network authorizes the payment request by assessing a transaction risk and / or debiting the transaction account. Moreover, parties in the transaction may agree to a contract as part of the transaction. For example, the parties may agree to a product or servi...

AI Technical Summary

Benefits of technology

[0009]The subject matter of the present disclosure is particularly pointed out and distinctly claimed in the concluding portion of the specification. However, a more complete understanding of the present disclosure may be obtained by referring to the detailed description and claims when considered in connection with the drawing figures, wherein like numerals denote like elements.

Problems solved by technology

Payment networks typically face increased costs and limitations associated with the traditional payment model.

The payment network implements secure protocols for handling the payment requests, and such secure protocols along with network infrastructure are costly to develop and maintain.

The high network costs also may result in high fees charged to merchants using the payment network.

Additional programs supported by the payment network such as, for example, storing and maintaining the additional payment contracts for merchant and / or customer review, may further increase costs associated with security and infrastructure.

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