Remote EMC Payment Applications

Description

FIELD

[0001] The disclosure generally relates to financial transactions, and more specifically, to a transaction system using remote EMV payment applications.BACKGROUND

[0002] Credit cards, charge cards, debit cards, and other transaction instruments may be commonly accepted today as a form of payment to a merchant under a variety of circumstances. Payments may be completed using EMV protocols designed to authenticate chip-card transactions. For example, an EMV compatible transaction instrument may comprise an embedded microprocessor chip configured to store and protect cardholder data using dynamic authentication capabilities. The embedded microprocessor chip may comprise a payment application configured to interact with a merchant kernel to exchange data and authorize transactions. At least partially due to the payment application being stored in the embedded microprocessor chip of the EMV transaction instrument, communication protocols between the transaction instrument, the merchant system, and / or back-end issuer systems may be limited.

[0003] US patent application with publication No. US 2015 / 073926 discloses that a merchant point-of-sale terminal may include a local merchant file having a list of preferred AIDs (application identifiers) determined by the merchant and used to select the payment vehicle used to conduct a transaction with a smart card. The list of preferred AIDs may be used in a priority established by the merchant.

[0004] European patent application with publication No. EP 3179428 discloses a communication system which is adapted to receive payment data and to communicate with a remote server in order to carry out a payment transaction. The communication system comprises a local kernel configured to implement a subset of functions of a payment kernel, the payment kernel functions being distributed between said local kernel and a remote kernel located on a remote server so that payment data are processed securely by the remote server and not by the communication system.

[0005] US 2017 / 118201 A1 discloses a cloud card application platform that enables one or more card applications to be virtualized on at least one server that is available to mobile devices via a communication network, such as the Internet. The one or more card applications virtualized on the cloud card application platform are capable of being managed remotely by service providers that have deployed and developed the one or more applications.SUMMARY

[0006] The invention is disclosed in the independent claims, to which reference should now be made. Additional, optional features are provided in the dependent claims.BRIEF DESCRIPTION OF THE DRAWINGS

[0007] The subject matter of the present disclosure is particularly pointed out and distinctly claimed in the concluding portion of the specification. A more complete understanding of the present disclosure, however, 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. FIG. 1 is a block diagram illustrating various system components of a system for remote EMV payment applications to complete transactions from a payment instrument, in accordance with various embodiments; FIG. 2 illustrates a process flow for a method of conducting an EMV transaction using a remote EMV payment application, in accordance with various embodiments; FIG. 3 illustrates a process flow for a method of initiating an EMV transaction using a payment instrument, in accordance with various embodiments DETAILED DESCRIPTION

[0008] The detailed description of exemplary embodiments herein makes reference to the accompanying drawings, which show various embodiments by way of illustration. While these various embodiments are described in sufficient detail to enable those skilled in the art to practice the disclosure, it should be understood that other embodiments may be realized and that logical and mechanical changes may be made without departing from the scope of the disclosure. Thus, the detailed description herein is presented for purposes of illustration only and not of limitation. For example, the steps recited in any of the method or process descriptions may be executed in any order and are not limited to the order presented. Moreover, any of the functions or steps may be outsourced to or performed by one or more third parties. Moreover, any of the functions or steps may be outsourced to or performed by one or more third parties. Modifications, additions, or omissions may be made to the systems, apparatuses, and methods described herein without departing from the scope of the disclosure. For example, the components of the systems and apparatuses may be integrated or separated. Moreover, the operations of the systems and apparatuses disclosed herein may be performed by more, fewer, or other components and the methods described may include more, fewer, or other steps. Additionally, steps may be performed in any suitable order. As used in this document, "each" refers to each member of a set or each member of a subset of a set. Furthermore, any reference to singular includes plural embodiments, and any reference to more than one component may include a singular embodiment. Although specific advantages have been enumerated herein, various embodiments may include some, none, or all of the enumerated advantages.

[0009] In various embodiments, systems, methods, and articles of manufacture (collectively, the "system") for transactions using remote EMV payment applications are disclosed. In contrast to typical EMV ("Europay ®< , Mastercard ®< , and Visa ®< ") transaction systems having payment applications stored locally in a microchip on the financial instrument, the system disclosed herein enables EMV transactions to be completed using EMV payment applications stored in a server (e.g., a remote server, cloud-based server, etc.). In that regard, the system may allow for functional EMV capabilities to be used across different communication protocols, including TCP / IP. For example, TCP / IP communications may be enabled between a kernel (e.g., payment software) in a merchant system and the payment application in an issuer server. The system may therefore provide a similar level of security found in EMV chip-card transactions (e.g., using cryptographic validation of a cryptogram generated by the payment application and validated by an issuer system) with increased speed and efficiency by executing the payment application in a remote server. Moreover, the system may also allow transactions from various technologies and sources to be processed such as, for example, from in-store payments (e.g., using a contact interface, a contactless interface, a wireless connection, a Bluetooth connection, etc.), remote payments or payments using a mobile device, credit card, debit card, transaction instrument, Internet of Things (IoT) device, and / or the like.

[0010] The system further improves the functioning of the computer and the payment network. For example, by placing the EMV payment applications in a server (e.g., payment application server 120) instead of in a microchip on a physical payment instrument (e.g., credit card, debit card, etc.), the speed and efficiency of processing EMV payment transactions may be increased compared to typical EMV payment transactions. In typical embedded microchips, payment applications may be limited by low hardware resources (e.g., RAM memory and CPU), whereas by placing the payment applications in a server, where greater resources may be available, the payment application me be enabled to perform more complex tasks and operations, thus allowing for sophisticated features such as loyalty and rewards points to be integrated within the payment application. Moreover, payment applications stored in embedded microchips may become outdated in terms of payment features and functionalities, security functionalities and algorithms, and the like, given the typical expiration date of a physical payment instrument is five years. In comparison, payment applications stored in a server may be updated as frequently as desired without being controlled by expiration dates and reissuance of physical payment instruments.

[0011] In various embodiments, and with reference to FIG. 1, a system 200 for remote EMV payment applications to authorize transactions from a payment instrument are disclosed. System 200 comprises a payment instrument 240, a merchant point of sale 250, a payment application server 120, and an issuer system 130. The various components of system 100 may be interconnected via a network 101 and / or a payment network 107, as discussed further herein. System 200 may also contemplate uses in association with web services, utility computing, pervasive and individualized computing, security and identity solutions, autonomic computing, cloud computing, commodity computing, mobility and wireless solutions, open source, biometrics, grid computing and / or mesh computing.

[0012] Network 101 may comprise any suitable type of network capable of enabling communications between merchant checkout system 110, and / or payment application server 120. As used herein, the term "network" may include any cloud, cloud computing system or electronic communications system or method which incorporates hardware and / or software components. Communication among the parties may be accomplished through any suitable communication channels, such as, for example, a telephone network, an extranet, an intranet, Internet, point of interaction device (point of sale device, personal digital assistant (e.g., IPHONE ®< , BLACKBERRY ®< ), cellular phone, kiosk, etc.), online communications, satellite communications, off-line communications, wireless communications, transponder communications, local area network (LAN), wide area network (WAN), virtual private network (VPN), networked or linked devices, keyboard, mouse and / or any suitable communication or data input modality. Moreover, although the system is frequently described herein as being implemented with TCP / IP communications protocols, the system may also be implemented using IPX, APPLE ®< talk, IP-6, NetBIOS ®< , OSI, any tunneling protocol (e.g. IPsec, SSH, etc.), or any number of existing or future protocols. If the network is in the nature of a public network, such as the Internet, it may be advantageous to presume the network to be insecure and open to eavesdroppers. Specific information related to the protocols, standards, and application software utilized in connection with the Internet is generally known to those skilled in the art and, as such, need not be detailed herein.

[0013] The various system components may be independently, separately or collectively suitably coupled to the network via data links which includes, for example, a connection to an Internet Service Provider (ISP) over the local loop as is typically used in connection with standard modem communication, cable modem, Dish Networks ®< , ISDN, Digital Subscriber Line (DSL), or various wireless communication methods. It is noted that the network may be implemented as other types of networks, such as an interactive television (ITV) network. Moreover, the system contemplates the use, sale or distribution of any goods, services or information over any network having similar functionality described herein.

[0014] "Cloud" or "Cloud computing" includes a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. Cloud computing may include location-independent computing, whereby shared servers provide resources, software, and data to computers and other devices on demand. For more information regarding cloud computing, see the NIST's (National Institute of Standards and Technology) definition of cloud computing.

[0015] In various embodiments, merchant checkout system 110 may comprise any suitable combination of hardware, software, and / or database components. For example, merchant checkout system 110 may comprise one or more network environments, servers, computer-based systems, processors, databases, and / or the like. In various embodiments, merchant checkout system 110 may be computer based, and may comprise a processor, a tangible non-transitory computer-readable memory, and / or a network interface, along with other suitable system software and hardware components. Instructions stored on the tangible non-transitory memory may allow merchant checkout system 110 to perform various functions, as described herein. In various embodiments, merchant checkout system 110 may be in electronic and / or logical communication with payment application server 120, via network 101. In accordance with various embodiments, merchant checkout system 110 may be configured to communicate with payment application server 120 using TCP / IP, Bluetooth, and / or any other suitable communication protocol. Merchant checkout system 110 may also be in electronic communication with payment network 107 and / or issuer system 130.

[0016] In various embodiments, merchant checkout system 110 may comprise various components configured to aid in conducting transactions with users. For example, merchant checkout system 110 may comprise any suitable number of back-end systems to provide item inventory, transaction processing, item shipment and / or delivery, and / or the like. In various embodiments, merchant checkout system 110 may comprise a merchant system kernel 117. Merchant system kernel 117 may comprise any combination of hardware and / or software. For example, merchant system kernel 117 may comprise an EMV kernel. Merchant system kernel 117 may comprise a set of functions that provide processing logic and data needed to perform an EMV transaction. In that regard, merchant system kernel 117 may be configured to interact with EMV payment application 125 during a transaction, as discussed further herein. Merchant system kernel 117 may be invoked by merchant checkout system 110 in response to merchant checkout system 110 receiving a transaction request. Merchant system kernel 117 may be configured to perform data exchanges with EMV payment application 125, via payment application server 120 (e.g., to complete transactions). In that regard, and in accordance with various embodiments, an instance of merchant system kernel 117 may be initiated for each transaction completed in system 100.

[0017] In various embodiments, payment application server 120 may be configured to store, maintain, and execute one or more EMV payment applications 125. Payment application server 120 may comprise one or more of hardware, software, and / or database components. For example, payment application server 120 may comprise one or more network environments, servers, computer-based systems, processors, databases, and / or the like. In various embodiments, payment application server 120 may be computer based, and may comprise a processor, a tangible non-transitory computer-readable memory, and / or a network interface, along with other suitable system software and hardware components. Instructions stored on the tangible non-transitory memory may allow payment application server 120 to perform various functions, as described herein. Payment application server 120 may be in electronic and / or logical communication with issuer system 130, and / or merchant checkout system 110, via network 101.

[0018] In various embodiments, each EMV payment application 125 may comprise software applications configured to process, authorize, and / or complete transaction requests. Each EMV payment application 125 may be configured to interact with merchant system kernel 117 to process, authorize, and / or complete transaction requests. For example, EMV payment application 125 may be configured to use asymmetric and / or symmetric cryptography to establish a cryptographically protected secure channel with the merchant system kernel 117 and / or to authenticate the merchant system kernel 117. EMV payment application 125 may also be configured to perform cardholder verification, process transaction restrictions, perform merchant risk analysis and management, perform card action analysis (e.g., first card action analysis, second card action analysis, etc.), process the transaction request, complete the transaction request, and / or the like. In various embodiments, each EMV payment application 125 may be specific to the issuer of the transaction account initiating the purchase (e.g., AMERICAN EXPRESS ®< , VISANET ®< , MASTERCARD ®< , etc.). In that regard, the EMV payment application 125 invoked during a transaction may be based on the issuer of the transaction account used in the transaction. For example, each EMV payment application 125 may correspond to a unique resource identifier (URI) serving as a unique identifier for each EMV payment application 125. In various embodiments, any portion of the EMV payment application 125 discussed herein may be remote and still operate similar to as disclosed herein. As such, some portions of the EMV payment application 125 may still be stored locally in a microchip of a transaction instrument.

[0019] In various embodiments, EMV payment application 125 may communicate directly with issuer system 130, as discussed further herein. For example, EMV payment application 125 may be configured to transmit a transaction authorization request comprising EMV transaction data directly to issuer system 130. EMV payment application 125 may also be configured to generate a cryptogram (e.g., a payment cryptogram) and transmit the cryptogram directly to issuer system 130, as discussed further herein. In that regard, in contrast to typical payment applications embedded in physical payment instruments, EMV payment application 125 may communicate EMV transaction data needed to complete and authorize the transaction directly to issuer system 130.

[0020] In various embodiments, payment network 107 may comprise or interact with a traditional account payment network to facilitate purchases and payments, authorize transactions, and / or settle transactions. Payment network 107 may comprise any suitable network capable of enabling communications between merchant checkout system 110 and issuer system 130. For example, payment network 107 may represent existing proprietary networks that presently accommodate transactions for credit cards, debit cards, and / or other types of transaction accounts or transaction instruments. Payment network 107 may be a closed network that is secure from eavesdroppers. In various embodiments, payment network 107 may comprise an exemplary transaction network such as AMERICAN EXPRESS ®< , VISANET ®< , MASTERCARD ®< , DISCOVER ®< , INTERAC ®< , Cartes Bancaires, JCB ®< , private networks (e.g., department store networks), and / or any other payment network.

[0021] In various embodiments, issuer system 130 may be configured as a central hub to access various systems, engines, and components of payment network 107. For example, issuer system 130 may comprise a sub-network, computer-based system, software component, and / or the like configured to provide an access point to various systems, engines, and components in payment network 107. In various embodiments, issuer system 130 may also comprise a transaction account issuer's Credit Authorization System ("CAS") capable of authorizing transactions, as discussed further herein. Issuer system 130 may be in operative and / or electronic communication with payment application server 120 and / or payment network 107. Issuer system 130 may comprise one or more network environments, servers, computer-based systems, processors, databases, and / or the like. In various embodiments, issuer system 130 may be computer based, and may comprise a processor, a tangible non-transitory computer-readable memory, and / or a network interface, along with other suitable system software and hardware components. Instructions stored on the tangible non-transitory memory may allow issuer system 130 to perform various functions, as described herein.

[0022] In various embodiments, issuer system 130 may include systems and databases related to financial and / or transaction systems and processes, such as, for example, one or more authorization engines, authentication engines and databases, settlement engines and databases, accounts receivable systems and databases, accounts payable systems and databases, and / or the like. For example, issuer system 130 may be configured to authorize and settle payment transactions; maintain transaction account member databases, accounts receivable databases, accounts payable databases, etc.; and / or the like.

[0023] In various embodiments, payment instrument 240 may comprise any suitable transaction instrument capable of initiating transactions using a contact interface (e.g., swiping a card, inserting an EMV-chip card, etc.) and / or a contactless interface (e.g., an NFC-enabled payment, etc.). For example, payment instrument 240 may comprise a credit card, debit card, multi-transaction account card, user device, Internet of Things (IoT) device, or the like. Payment instrument 240 may comprise a plurality of linked transaction accounts. For more information on payment instruments having a plurality of linked transaction accounts, see U.S. Application No. 15 / 646,928 titled FUND TRANSFER SERVICE FOR MULTIPLE LINKED TRANSACTION ACCOUNTS and filed on July 11, 2017.

[0024] Payment instrument 240 comprises one or more local EMV payment applications 245 corresponding to each transaction account linked to payment instrument 240. Local EMV payment application 245 may comprise a software application and may be similar to (remote) EMV payment application 125. Each local EMV payment application 245 may be configured to select the (remote) EMV payment application 125 needed to complete the transaction, based on the transaction account selected to be used for the transaction. As discussed further herein, local EMV payment application 245 is configured to interact with merchant PoS kernel 257 to process data, prompt the user to select a transaction account to use for the transaction, determine the (remote) EMV payment application 125 to select based on the transaction account, generate a transaction request comprising at least a payment token and an EMV payment application URI corresponding to the selected (remote) EMV payment application 125, and / or the like.

[0025] Merchant point of sale (PoS) 250 comprises a PoS terminal configured as a mechanism to conduct a transaction. For example, merchant PoS 250 may comprise a cashier station, a credit and / or debit card reader, an EMV card reader, and / or the like. Merchant PoS 250 may also comprise a near field communication (NFC) terminal. In this regard, an NFC terminal may allow for the transfer of information (e.g., payment information, etc.) from a NFC enabling user device, such as, for example, a mobile device, a transaction instrument enabled for NFC payments, a watch, and / or the like. In response to a user initiating the transaction with merchant PoS 250 generates a transaction authorization request, as discussed further herein. Merchant PoS 250 is in electronic and / or logical communication with merchant checkout system 110, via network 101.

[0026] merchant PoS 250 comprises a merchant PoS kernel 257. Merchant PoS kernel 257 may be similar to merchant system kernel 117. Merchant PoS kernel 257 may comprise any combination of hardware and / or software. For example, merchant PoS kernel 257 may comprise an EMV kernel. Merchant PoS kernel 257 may comprise a set of functions that provide processing logic and data needed to perform an EMV transaction. As discussed further herein, merchant PoS kernel 257 is configured to interact with local EMV payment application 245 to process data, prompt the user to select a transaction account to use for the transaction, determine the (remote) EMV payment application 125 to select based on the transaction account, generate a transaction request comprising at least a payment token and an EMV payment application URI corresponding to the selected (remote) EMV payment application 125 , and / or the like .

[0027] Referring now to FIGs. 2 and 3 the process flows and screenshots depicted are merely embodiments and are not intended to limit the scope of the disclosure. For example, the steps recited in any of the method or process descriptions may be executed in any order and are not limited to the order presented. It will be appreciated that the following description makes appropriate references not only to the steps and elements depicted in FIGs. 2 and 3, but also to the various system components as described above with reference to FIG. 1. It should be understood that although exemplary embodiments are illustrated in the figures and described herein, the principles of the present disclosure may be implemented using any number of techniques, whether currently known or not. The present disclosure should in no way be limited to the exemplary implementations and techniques illustrated in the drawings and described below. Unless otherwise specifically noted, articles depicted in the drawings are not necessarily drawn to scale.

[0028] In various embodiments, and with specific reference to FIG. 2, a method 301 for conducting an EMV transaction using a remote EMV payment application is disclosed. Method 301 enables EMV transactions to be initiated, authorized, and completed using remote EMV payment applications stored in a server (e.g., in contrast to EMV payment applications stored locally in a microchip of a transaction instrument) Merchant checkout system 110 receives a transaction request (step 302). Merchant checkout system 110 may receive the transaction request from various sources, including from transactions initiated by mobile devices, Internet of Things (IoT) devices, transaction instruments (e.g., credit cards, debit cards, etc.), or the like.

[0029] As an example, and with specific reference to FIGs. 3 and 1, a method 501 for initiating EMV transactions using a payment instrument is disclosed, in accordance with the invention as claimed. Payment instrument 240 interfaces with merchant point of sale ("PoS") 250 (step 502). For example, a user may desire to purchase goods or services from a merchant at merchant PoS 250. The user may use payment instrument 240 to initiate the transaction by swiping or inserting the payment instrument 240 into the merchant PoS 250 (e.g., a contact transaction), using a contactless interface (e.g., NFC, etc.), and / or the like. Merchant PoS 250 determines whether payment instrument 240 comprises a local EMV payment application 245 (step 504). For example, and in accordance with various embodiments, payment instrument 240 comprises a plurality of linked transaction accounts. Payment instrument 240 comprises a local EMV payment application 245 configured to enable selection of at least one of the plurality of linked transaction accounts during the transaction process.

[0030] Merchant PoS 250 invokes local EMV payment application 245 (step 506). In response to payment instrument 240 interfacing with merchant PoS 250, local EMV payment application 245 interacts with merchant PoS kernel 257 (step 508). Local EMV payment application 245 and merchant PoS kernel 257 may determine one or more payment applications (corresponding to one or more transaction accounts linked to payment instrument 240) that are supported by both local EMV payment application 245 and merchant PoS kernel 257. Merchant PoS 250, based on the invoked local EMV payment application 245, prompts the user to select the transaction account on payment instrument 240 that the user desires to use to complete the transaction. The user may interact with merchant PoS 250 to select the transaction account.

[0031] Merchant PoS 250 generates a transaction request (step 510) based on the interaction of local EMV payment application 245 with merchant PoS kernel 257. The transaction request comprises a payment token and may comprise any further suitable data related to the transaction, such as, for example, a payment amount, a merchant ID, or the like. The payment token may comprise user identifying data such as a transaction account number and / or the like. The transaction request may comprise additional transaction identification information, which may be standardized codes or numbers indicating the characteristics of the transaction, such as, for example a merchant category code, a service establishment number, a geographic location code, a product code, a PoS terminal number, and / or the like. The transaction request also comprises an EMV payment application uniform resource identifier (URI). The EMV payment application URI comprises a unique identifier corresponding to a EMV payment application 125 stored in payment application server 120. The EMV payment application URI comprises a string of characters identifying the storage location of the corresponding EMV payment application 125 in payment application server 120. Merchant PoS 250 transmits the transaction request to merchant checkout system 110 (step 512), via network 101. In various embodiments, merchant PoS 250 may be configured to transmit the transaction request using any suitable communications protocol, such as, for example TCP / IP, Bluetooth, or the like.

[0032] With reference again to FIG. 2, in response to receiving the transaction request (e.g. from step 512, with brief reference to FIG. 3), merchant checkout system 110 opens communications with payment application server 120 (step 304), via network 101. Merchant checkout system 110 establishes and opens communication with payment application server 120 by transmitting the payment token and the EMV payment application URI to payment application server 120. Payment application server 120 invokes EMV payment application 125 (step 306) based on the EMV payment application URI. EMV payment application 125 interacts with merchant system kernel 117 (step 308) to begin processing the transaction request. EMV payment application 125 may be configured to use asymmetric and / or symmetric cryptography to establish a cryptographically protected secure channel with merchant system kernel 117 and / or to authenticate merchant system kernel 117. For example, and in accordance with various embodiments, in an EMV 1st generation transaction, EMV payment application 125 may be configured perform data authentication of the transaction request. EMV payment application 125 may also be configured to perform cardholder verification, process transaction or account restrictions, perform merchant risk analysis and management, perform card action analysis (e.g., first card action analysis, second card action analysis, etc.), process the transaction request (online), complete the transaction request, and / or the like. In various embodiments, EMV payment application 125 may also be configured to generate EMV data, such as for example, a cryptogram that may transmitted to issuer system 130 and validated by issuer system 130 to authorize the transaction request.

[0033] In various embodiments, merchant checkout system 110 transmits a transaction data request (step 310). For example, in response to the EMV payment application 125 determining that additional information is needed to authorize the transaction request, EMV payment application 125 (and / or merchant system kernel 117) may generate the transaction data request and instruct merchant checkout system 110 to transmit the transaction data request. With brief reference to FIG. 1, and in accordance with various embodiments, merchant checkout system 110 may transmit the transaction data request to merchant PoS 250. The transaction data request may comprise data requesting additional user input, such as, for example, a biometric input, a user PIN, a user signature, and / or the like. In response to receiving a transaction data response, or merchant PoS 250 (with brief reference to FIG. 1) may transmit the transaction data response to merchant checkout system 110, via network 101.

[0034] Payment application server 120 transmits a transaction authorization request to issuer system 130 (step 312). The transaction authorization request comprises the payment token, and may comprise any other payment information. In various embodiments, the transaction authorization request may also comprise a cryptogram and other transaction data generated by EMV payment application 125. In that regard, payment application server 120 transmits the EMV transaction data needed to complete the transaction directly to issuer system 130 (in contrast to typical payment systems wherein the payment application is embedded in a physical transaction instrument). Issuer system 130 is configured to authorize, validate, and / or settle the transaction based on the transaction authorization request. For example, issuer system 130 may query an account member database and may compare the CSV / CVV codes, the ARQC, account holder identifying information, etc. against the values contained in the transaction authorization request. As a further example, issuer system 130 may be configured to validate the cryptogram generated by EMV payment application 125. Issuer system 130 may also update accounts receivable databases and settlement databases to reflect the transaction. In response to authorizing, validating, and / or settling the transaction authorization request, issuer system 130 transmits a transaction authorization response to payment application server 120 and / or merchant checkout system 110. The transaction authorization response may comprise data indicating whether the transaction was successfully authorized, validated, and / or settled.

[0035] EMV payment application 125 completes processing of the transaction request (step 314) with merchant system kernel 117. Merchant checkout system 110 transmits a transaction authorization notice (step 316). For example, merchant checkout system 110 may transmit the transaction authorization notice to merchant PoS 250 (with brief reference to FIG. 1). The transaction authorization notice may comprise data indicating whether the transaction request was successfully authorized, funds were successfully transferred, and / or the like.

[0036] Phrases and terms similar to "account,""account number,""account code" or"consumer account" as used herein, may include any device, code (e.g., one or more of an authorization / access code, personal identification number ("PIN"), Internet code, other identification code, and / or the like), number, letter, symbol, digital certificate, smart chip, digital signal, analog signal, biometric or other identifier / indicia suitably configured to allow the consumer to access, interact with or communicate with the system. The account number may optionally be located on or associated with a rewards account, charge account, credit account, debit account, prepaid account, telephone card, embossed card, smart card, magnetic stripe card, bar code card, transponder, radio frequency card or an associated account.

[0037] The system may include or interface with any of the foregoing accounts, devices, and / or a transponder and reader (e.g. RFID reader) in RF communication with the transponder (which may include a fob), or communications between an initiator and a target enabled by near field communications (NFC). Typical devices may include, for example, a key ring, tag, card, cell phone, wristwatch or any such form capable of being presented for interrogation. Moreover, the system, computing unit or device discussed herein may include a"pervasive computing device," which may include a traditionally non-computerized device that is embedded with a computing unit. Examples may include watches, Internet enabled kitchen appliances, restaurant tables embedded with RF readers, wallets or purses with imbedded transponders, etc. Furthermore, a device or financial transaction instrument may have electronic and communications functionality enabled, for example, by: a network of electronic circuitry that is printed or otherwise incorporated onto or within the transaction instrument (and typically referred to as a"smart card"); a fob having a transponder and an RFID reader; and / or near field communication (NFC) technologies. For more information regarding NFC, refer to the following specifications: ISO / IEC 18092 / ECMA-340, Near Field Communication Interface and Protocol- 1 (NFCIP-1); ISO / IEC 21481 / ECMA-352, Near Field Communication Interface and Protocol-2 (NFCIP-2); and EMV 4.3 or EMV 2nd generation available at http: / / www.emvco.com.

[0038] The account number may be distributed and stored in any form of plastic, electronic, magnetic, radio frequency, wireless, audio and / or optical device capable of transmitting or downloading data from itself to a second device. A consumer account number may be, for example, a sixteen-digit account number, although each credit provider has its own numbering system, such as the fifteen-digit numbering system used by American Express ®< . Each company's account numbers comply with that company's standardized format such that the company using a fifteen-digit format will generally use three-spaced sets of numbers, as represented by the number"0000 000000 00000." The first five to seven digits are reserved for processing purposes and identify the issuing bank, account type, etc. In this example, the last (fifteenth) digit is used as a sum check for the fifteen digit number. The intermediary eight-to-eleven digits are used to uniquely identify the consumer. A merchant account number may be, for example, any number or alpha-numeric characters that identify a particular merchant for purposes of account acceptance, account reconciliation, reporting, or the like.

[0039] In various embodiments, an account number may identify a consumer. In addition, in various embodiments, a consumer may be identified by a variety of identifiers, including, for example, an email address, a telephone number, a cookie id, a radio frequency identifier (RFID), a biometric, and the like.

[0040] Phrases and terms similar to "financial institution,""transaction account issuer,""issuer system," or the like may include any entity that offers transaction account services. Although often referred to as a "financial institution," the financial institution may represent any type of bank, lender, or other type of account issuing institution, such as credit card companies, card sponsoring companies, or third party issuers under contract with financial institutions. It is further noted that other participants may be involved in some phases of the transaction, such as an intermediary settlement institution.

[0041] Phrases and terms similar to "business" or "merchant" may be used interchangeably with each other and shall mean any person, entity, distributor system, software and / or hardware that is a provider, broker and / or any other entity in the distribution chain of goods or services. For example, a merchant may be a grocery store, a retail store, a travel agency, a service provider, an on-line merchant, or the like.

[0042] The terms"payment vehicle,""transaction account,""financial transaction instrument,""transaction instrument" and / or the plural form of these terms may be used interchangeably throughout to refer to a financial instrument. Phrases and terms similar to"transaction account" may include any account that may be used to facilitate a financial transaction.

[0043] The phrases consumer, customer, user, account holder, account affiliate, cardmember or the like shall include any person, entity, business, government organization, business, software, hardware, machine associated with a transaction account, who buys merchant offerings offered by one or more merchants using the account and / or who is legally designated for performing transactions on the account, regardless of whether a physical card is associated with the account. For example, the cardmember may include a transaction account owner, a transaction account user, an account affiliate, a child account user, a subsidiary account user, a beneficiary of an account, a custodian of an account, and / or any other person or entity affiliated or associated with a transaction account.

[0044] In various embodiments, the methods described herein are implemented using the various particular machines described herein. The methods described herein may be implemented using the below particular machines, and those hereinafter developed, in any suitable combination, as would be appreciated immediately by one skilled in the art. Further, as is unambiguous from this disclosure, the methods described herein may result in various transformations of certain articles.

[0045] The various system components discussed herein may include one or more of the following: a host server or other computing systems including a processor for processing digital data; a memory coupled to the processor for storing digital data; an input digitizer coupled to the processor for inputting digital data; an application program stored in the memory and accessible by the processor for directing processing of digital data by the processor; a display device coupled to the processor and memory for displaying information derived from digital data processed by the processor; and a plurality of databases. Various databases used herein may include: client data; merchant data; financial institution data; and / or like data useful in the operation of the system. As those skilled in the art will appreciate, user computer may include an operating system (e.g., WINDOWSO, OS2, UNIX ®< , LINUX ®< , SOLARIS ®< , MacOS, etc.) as well as various conventional support software and drivers typically associated with computers.

[0046] The present system or any part(s) or function(s) thereof may be implemented using hardware, software or a combination thereof and may be implemented in one or more computer systems or other processing systems. However, the manipulations performed by embodiments were often referred to in terms, such as matching or selecting, which are commonly associated with mental operations performed by a human operator. No such capability of a human operator is necessary, or desirable in most cases, in any of the operations described herein. Rather, the operations may be machine operations or any of the operations may be conducted or enhanced by Artificial Intelligence (AI) or Machine Learning. Useful machines for performing the various embodiments include general purpose digital computers or similar devices.

[0047] In fact, and in accordance with various embodiments, the embodiments are directed toward one or more computer systems capable of carrying out the functionality described herein. The computer system includes one or more processors, such as processor. The processor is connected to a communication infrastructure (e.g., a communications bus, cross over bar, or network). Various software embodiments are described in terms of this exemplary computer system. After reading this description, it will become apparent to a person skilled in the relevant art(s) how to implement various embodiments using other computer systems and / or architectures. Computer system can include a display interface that forwards graphics, text, and other data from the communication infrastructure (or from a frame buffer not shown) for display on a display unit.

[0048] The computer system also includes a main memory, such as for example random access memory (RAM), and may also include a secondary memory or in memory (non-spinning) hard drives. The secondary memory may include, for example, a hard disk drive and / or a removable storage drive, representing a floppy disk drive, a magnetic tape drive, an optical disk drive, etc. The removable storage drive reads from and / or writes to a removable storage unit in a well-known manner. Removable storage unit represents a floppy disk, magnetic tape, optical disk, etc. which is read by and written to by removable storage drive. As will be appreciated, the removable storage unit includes a computer usable storage medium having stored therein computer software and / or data.

[0049] In various embodiments, secondary memory may include other similar devices for allowing computer programs or other instructions to be loaded into computer system. Such devices may include, for example, a removable storage unit and an interface. Examples of such may include a program cartridge and cartridge interface (such as that found in video game devices), a removable memory chip (such as an erasable programmable read only memory (EPROM) or a programmable read only memory (PROM)) and associated socket, and other removable storage units and interfaces, which allow software and data to be transferred from the removable storage unit to computer system.

[0050] The computer system may also include a communications interface. Communications interface allows software and data to be transferred between computer system and external devices. Examples of communications interface may include a modem, a network interface (such as an Ethernet card), a communications port, a Personal Computer Memory Card International Association (PCMCIA) slot and card, etc. Software and data files transferred via communications interface are in the form of signals which may be electronic, electromagnetic, optical or other signals capable of being received by communications interface. These signals are provided to communications interface via a communications path (e.g., channel). This channel carries signals and may be implemented using wire, cable, fiber optics, a telephone line, a cellular link, a radio frequency (RF) link, wireless and other communications channels.

[0051] The terms"computer program medium" and"computer usable medium" and"computer readable medium" are used to generally refer to media such as removable storage drive and a hard disk installed in hard disk drive. These computer program products provide software to computer system.

[0052] Computer programs (also referred to as computer control logic) are stored in main memory and / or secondary memory. Computer programs may also be received via communications interface. Such computer programs, when executed, enable the computer system to perform the features as discussed herein. In particular, the computer programs, when executed, enable the processor to perform the features of various embodiments. Accordingly, such computer programs represent controllers of the computer system.

[0053] In various embodiments, software may be stored in a computer program product and loaded into computer system using removable storage drive, hard disk drive or communications interface. The control logic (software), when executed by the processor, causes the processor to perform the functions of various embodiments as described herein. In various embodiments, hardware components such as application specific integrated circuits (ASICs). Implementation of the hardware state machine so as to perform the functions described herein will be apparent to persons skilled in the relevant art(s).

[0054] As used herein an"identifier" may be any suitable identifier that uniquely identifies an item. For example, the identifier may be a globally unique identifier ("GUID"). The GUID may be an identifier created and / or implemented under the universally unique identifier standard. Moreover, the GUID may be stored as 128- bit value that can be displayed as 32 hexadecimal digits. The identifier may also include a major number, and a minor number. The major number and minor number may each be 16 bit integers.

[0055] As used herein,"issue a debit,""debit" or"debiting" refers to either causing the debiting of a stored value or prepaid card-type financial account, or causing the charging of a credit or charge card-type financial account, as applicable.

[0056] One skilled in the art will also appreciate that, for security reasons, any databases, systems, devices, servers or other components of the system may consist of any combination thereof at a single location or at multiple locations, wherein each database or system includes any of various suitable security features, such as firewalls, access codes, encryption, decryption, compression, decompression, and / or the like.

[0057] Encryption may be performed by way of any of the techniques now available in the art or which may become available- e.g., Twofish, RSA, El Gamal, Schorr signature, DSA, PGP, PKI, GPG (GnuPG), HPE Format-Preserving Encryption (FPE), Voltage, and symmetric and asymmetric cryptosystems. The systems and methods may also incorporate SHA series cryptographic methods as well as ECC (Elliptic Curve Cryptography) and other Quantum Readable Cryptography Algorithms under development.

[0058] The system and method may be described herein in terms of functional block components, screen shots, optional selections and various processing steps. It should be appreciated that such functional blocks may be realized by any number of hardware and / or software components configured to perform the specified functions.

[0059] As will be appreciated by one of ordinary skill in the art, the system may be embodied as a customization of an existing system, an add-on product, a processing apparatus executing upgraded software, a standalone system, a distributed system, a method, a data processing system, a device for data processing, and / or a computer program product. Accordingly, any portion of the system or a module may take the form of a processing apparatus executing code, an internet based embodiment, an entirely hardware embodiment, or an embodiment combining aspects of the internet, software and hardware. Furthermore, the system may take the form of a computer program product on a computer-readable storage medium having computer-readable program code means embodied in the storage medium. Any suitable computer-readable storage medium may be utilized, including hard disks, CD-ROM, BLU-RAY, optical storage devices, magnetic storage devices, and / or the like.

[0060] The system and method is described herein with reference to screen shots, block diagrams and flowchart illustrations of methods, apparatus (e.g., systems), and computer program products according to various embodiments. It will be understood that each functional block of the block diagrams and the flowchart illustrations, and combinations of functional blocks in the block diagrams and flowchart illustrations, respectively, can be implemented by computer program instructions.

[0061] Referring now to FIGs. 2 and 3, the process flows and / or screenshots depicted are merely embodiments and are not intended to limit the scope of the disclosure. For example, the steps recited in any of the method or process descriptions may be executed in any order and are not limited to the order presented.

[0062] These computer program instructions may be loaded onto a general purpose computer, special purpose computer, or other programmable data processing apparatus to produce a machine, such that the instructions that execute on the computer or other programmable data processing apparatus create means for implementing the functions specified in the flowchart block or blocks. These computer program instructions may also be stored in a computer-readable memory that can direct a computer or other programmable data processing apparatus to function in a particular manner, such that the instructions stored in the computer-readable memory produce an article of manufacture including instruction means which implement the function specified in the flowchart block or blocks. The computer program instructions may also be loaded onto a computer or other programmable data processing apparatus to cause a series of operational steps to be performed on the computer or other programmable apparatus to produce a computer-implemented process such that the instructions which execute on the computer or other programmable apparatus provide steps for implementing the functions specified in the flowchart block or blocks.

[0063] Accordingly, functional blocks of the block diagrams and flowchart illustrations support combinations of means for performing the specified functions, combinations of steps for performing the specified functions, and program instruction means for performing the specified functions. It will also be understood that each functional block of the block diagrams and flowchart illustrations, and combinations of functional blocks in the block diagrams and flowchart illustrations, can be implemented by either special purpose hardware-based computer systems which perform the specified functions or steps, or suitable combinations of special purpose hardware and computer instructions.

[0064] Benefits, other advantages, and solutions to problems have been described herein with regard to specific embodiments. However, the benefits, advantages, solutions to problems, and any elements that may cause any benefit, advantage, or solution to occur or become more pronounced are not to be construed as critical, required, or essential features or elements of the disclosure. The scope of the disclosure is accordingly to be limited by nothing other than the appended claims, in which reference to an element in the singular is not intended to mean "one and only one" unless explicitly so stated, but rather "one or more." Moreover, where a phrase similar to 'at least one of A, B, and C or 'at least one of A, B, or C is used in the claims or specification, it is intended that the phrase be interpreted to mean that A alone may be present in an embodiment, B alone may be present in an embodiment, C alone may be present in an embodiment, or that any combination of the elements A, B and C may be present in a single embodiment; for example, A and B, A and C, B and C, or A and B and C. Although the disclosure includes a method, it is contemplated that it may be embodied as computer program instructions on a tangible computer-readable carrier, such as a magnetic or optical memory or a magnetic or optical disk.

Claims

1. A method (301) for initiating an EMV transaction using a payment instrument, comprising: receiving (302), by a processor, a transaction request comprising a payment token and a Europay, Mastercard and VISA, EMV, payment application uniform resource identifier, URI, wherein the transaction request is generated by a merchant point of sale, PoS, (250) in response to a payment instrument (240) interfacing with the merchant PoS (250), wherein the payment instrument (240) comprises a local EMV payment application (245), and the merchant PoS (250) comprises a merchant PoS kernel (257), wherein the local EMV payment application (245) is configured to interact with the merchant PoS kernel (257) to initiate the transaction, and wherein the payment token and URI correspond to a remote EMV payment application (125) that is selected by the local EMV payment application (245) based on a transaction account selected by a user to be used for the transaction during said interaction; wherein the EMV payment application URI comprises a string of characters identifying a storage location of the remote EMV payment application (125) in a payment application server (120); providing (304), by the processor, the EMV payment application URI and a payment token from the transaction request to the payment application server (120); invoking (306), by the payment application server (120), the remote EMV payment application (125) based on the EMV payment application URI; wherein in response to being invoked (306), the remote EMV payment application (125) is configured to interact (308) with a merchant system kernel (117) executed by the processor to process the transaction request, and wherein in response to processing the transaction request the remote EMV payment application (125) is configured to transmit (312) a transaction authorization request comprising EMV transaction data including the payment token directly to an issuer system (130); and receiving (316), by the processor, a transaction authorization notice from the issuer system (130), wherein the transaction authorization notice is based on the transaction authorization request generated by the remote EMV payment application (125).

2. A system (200) comprising: a processor configured to execute a merchant system kernel (117), a merchant point of sale, PoS, (250) comprising a merchant PoS kernel (257), a payment instrument (240) comprising a local EMV payment application (245), a payment application server (120) comprising a remote EMV payment application (125), and an issuer system (130); the system (200) being configured to perform the method of claim 1.

3. The method (301) of claim 1 or the system (200) of claim 2, further comprising transmitting (310), by the processor, a transaction data request in response to the remote EMV payment application (125) determining that additional data is needed to authorize the transaction request.

4. The method (301) of claim 1 or the system (200) of claim 2, wherein the remote EMV payment application (125) is configured to process the transaction request by generating a payment cryptogram to be transmitted to the issuer system (130) to authorize the transaction request.

5. A method (301) for initiating an EMV transaction using a payment instrument, comprising: receiving (302), by a processor, a transaction request comprising a payment token and a Europay, Mastercard and VISA, EMV, payment application uniform resource identifier, URI, wherein the transaction request is generated by a merchant point of sale, PoS, (250) in response to a payment instrument (240) interfacing with the merchant PoS (205), wherein the payment instrument comprises a local EMV payment application (245), and the merchant PoS (250) comprises a merchant PoS kernel (257), wherein the local EMV payment application (245) is configured to interact with the merchant PoS kernel (257) to initiate the transaction, and wherein the payment token and URI correspond to a remote EMV payment application (125) that is selected by the local EMV payment application (245) based on a transaction account selected by a user to be used for the transaction during said interaction; wherein the EMV payment application URI comprises a string of characters identifying a storage location of the remote EMV payment application (125) in a payment application server (120); providing (304), by the processor, the EMV payment application URI and a payment token from the transaction request to the payment application server (120); invoking (306), by the payment application server (120), the remote EMV payment application (125) based on the EMV payment application URI; wherein in response to being invoked (306), the remote EMV payment application (125) is configured to interact (308) with a merchant system kernel (117) executed by the processor to process the transaction request, wherein in response to processing the transaction request the remote EMV payment application (125) is configured to transmit EMV transaction data comprising the payment token to an issuer system (130), and transmitting, by the processor, a transaction authorization request to the issuer system (130), wherein the issuer system (130) is configured to combine the EMV transaction data and the transaction authorization request to authorize the transaction; and receiving (316), by the processor, a transaction authorization notice from the issuer system (130).

6. The method (301) of claim 5, further comprising transmitting (310), by the processor, a transaction data request in response to the remote EMV payment application (125) determining that additional data is needed to authorize the transaction request.

7. The method (301) of claim 5, wherein in response to authorizing the transaction, the issuer system (130) is configured to settle the transaction.

8. A system (200) comprising: a processor configured to execute a merchant system kernel (117), a merchant point of sale, PoS, (250) comprising a merchant PoS kernel (257), a payment instrument (240) comprising a local EMV payment application (245), a payment application server (120) comprising a remote EMV payment application (125), and an issuer system (130); the system (200) being configured to perform the method of any of claims 5 to 7.