Payment Processing System

Abstract

The payment processing system described herein enables the implementation of a product purchase rewards scheme. The system consists of an EFTPOS terminal, an optical scanner connected to the terminal, and a rewards scheme server accessible over a wide area network. The EFTPOS terminal includes a memory device for storing product data along with ID and price, a scan controller for determining the price from the scanned ID, a digital display with a user interface for showing the scanned product, a card reader and payment controller for the financial transaction, and a server interface controller for transmitting transaction data to the server. The rewards scheme server includes a database containing multiple reward rules associated with product IDs. A rules controller searches for a matching rule, determines the reward amount and provider ID, and instructs the payment controller to initiate the financial transaction accordingly.

Description

[Technical Field]

[0001] The present invention relates generally to payment processing systems, and more particularly, to an improved payment processing system that overcomes technical challenges in obtaining product data while complying with PCI standards when implementing a product purchase rewards scheme. [Background technology]

[0002] In a conventional product purchase payment processing system, the POS system stores product data, and when a product is scanned at checkout, the POS system retrieves the product data, including the price.

[0003] POS systems interface with a separate EFTPOS terminal, which is typically a separate device issued by a financial institution and must meet strict PCI compliance requirements, so the POS system itself cannot initiate financial transactions.

[0004] In the case of a payment, the POS system sends the total amount of the payment to the EFTPOS terminal, which displays the total amount to the customer and accepts the payment by reading the payment card's Primary Account Number (PAN).

[0005] The EFTPOS terminal then interfaces with the acquirer / issuer to process the payment using the card scheme and, upon receiving a successful acknowledgement from the acquirer / issuer, sends a successful payment notification to the POS system.

[0006] However, when implementing a product purchase reward scheme, it is necessary to acquire product data. However, POS systems are provided by various providers, and therefore it is difficult to universally implement a system that can interface with all POS systems to acquire such product data. Furthermore, POS system providers typically lock down their systems, denying API access or prohibiting the installation of software agents.

[0007] Furthermore, no such product data can be obtained from EFTPOS terminals, which must meet strict PCI requirements and cannot be modified in any way, including by updating firmware, selecting software agents or connecting associated devices.

[0008] Accordingly, the present invention seeks to provide a method that overcomes or substantially ameliorates or at least provides an alternative to at least some of the disadvantages of the prior art.

[0009] Where prior art information is referred to in this specification, it should be understood that such reference does not constitute an admission that the information forms part of the common general knowledge in the art in Australia or any other country. Summary of the Invention

[0010] Provided herein is a payment processing system that can overcome the technical challenges of traditional payment systems related to obtaining product data and / or complying with PCI standards when implementing a rewards scheme.

[0011] The system comprises a modified EFTPOS terminal and an optical scanner in operative communication with the EFTPOS terminal.

[0012] The system further comprises a reward scheme server in operative communication with the EFTPOS terminal via the wide area network.

[0013] The EFTPOS terminal is modified to include a memory device for storing product data including product identifiers stored in association with respective product prices, and a scan controller configured to use the product identifiers scanned by the optical scanner to ascertain the product prices from the product data stored in the memory.

[0014] The EFTPOS terminal further comprises a digital display and a user interface controller configured to display the plurality of scanned products on the digital display.

[0015] The EFTPOS terminal also comprises a card reader and a payment controller configured to read the PAN from the card to initiate a financial transaction for the total amount of the scanned product.

[0016] The EFTPOS terminal further comprises a server interface controller configured to transmit transaction data, including the product ID of the scanned product, to the server.

[0017] The reward scheme server comprises a database including a plurality of reward rules, each associated with an associated product ID, and a rules controller configured to search for at least one rule that matches the product ID, such that the rules controller is configured to determine a reward amount associated with the rule, determine a provider ID associated with the rule, and cause the payment controller to initiate at least one financial transaction relating to the provider ID and the reward amount.

[0018] The reward scheme server further comprises a refund controller configured to receive a transaction ID from the EFTPOS terminal, select a transaction from the transaction log using the transaction ID, and cause the settlement controller to initiate a reversal of at least one financial transaction relating to the transaction amount and / or the reward amount using the PAN.

[0019] An EFTPOS terminal of the present invention designed in this way is therefore fully PCI compliant and is thereby able to interface with the card scheme.

[0020] Furthermore, an EFTPOS terminal of the present invention configured in this way, including being configured to store product data itself, can accept payments and thereby ascertain the product data required to send to the server to implement the rewards scheme.

[0021] Thus, the system of the present invention may be able to avoid API access or the installation of software agents on POS systems and still maintain PCI compliance.

[0022] The system of the present invention is further configured to revoke the credit of reward amounts for product returns.

[0023] The system may be configured so that the EFTPOS terminal transmits a PAN number to the server, which is stored with the transaction log data and associated with a transaction ID that may be printed on the customer's receipt. Thus, products may be returned using the transaction ID and the server may search the transaction log data to identify the rewards entitlement transaction that took place and initiate a reversal of the financial transaction using the stored PAN number.

[0024] The EFTPOS terminal may be configured to display a refund transaction amount option, whereby the refund controller will cause the settlement controller to initiate a reversal of the financial transaction for the transaction amount using the PAN, or a refund part transaction amount option, whereby the EFTPOS terminal will send a portion of the transaction amount to the server and the refund controller will cause the settlement controller to initiate a reversal of the financial transaction for part of the transaction amount using the PAN.

[0025] The EFTPOS terminal may be configured to display a cancel reward amount only option, where the refund controller causes the settlement controller to initiate the cancellation of at least one financial transaction for the reward amount using the PAN, or a refund transaction and cancel reward amount option, where the refund controller determines the transaction amount using the transaction log and causes the settlement controller to initiate the cancellation of the financial transaction for the transaction amount using the PAN, and the refund controller causes the settlement controller to also initiate the cancellation of the financial transaction for the reward amount using the PAN.

[0026] The settlement controller may further be configured to store multiple product IDs in the transaction log for the transaction ID.

[0027] Thus, the EFTPOS terminal may be configured to display a refund option for all products, and the refund controller is configured to select a number of product IDs using the transaction ID and, for each product ID, cause the payment controller to initiate a reversal of a financial transaction for the reward amount associated with each product ID. The payment controller may further initiate a reversal of a financial transaction for the total amount of the original transaction for all products.

[0028] The EFTPOS terminal may be configured to display alternative options for refunding a subset of the products and to send selected product IDs of the subset of products to the server, and the refund controller is configured to use the selected product IDs to select a subset of the product IDs and, for each product ID, cause the payment controller to initiate a reversal of a financial transaction for the total amount of the original transaction for the selected subset of products and a reversal of a financial transaction for the reward amount associated with each product ID.

[0029] The refund controller may be configured to validate the product ID against a transaction log.

[0030] Other aspects of the invention are also disclosed.

[0031] While any other form may fall within the scope of the present invention, preferred embodiments of the present disclosure will now be described by way of example only with reference to the accompanying drawings, in which: [Brief explanation of the drawings]

[0032] [Figure 1] 1 illustrates a payment processing system according to one embodiment. [Figure 2] 1 illustrates an exemplary process by the system. [Figure 3] 10 illustrates an exemplary process by the system for revoking the award of a reward amount for a returned product. DETAILED DESCRIPTION OF THE INVENTION

[0033] Figure 1 shows a payment processing system 100 for implementing a product purchase rewards scheme. The system 100 comprises an improved EFTPOS terminal 101.

[0034] The EFTPOS terminal 101 comprises a processor 102 for processing digital data. A memory device 103, in operative communication with the processor 102 via a system bus 104, stores digital data including computer program code instructions.

[0035] In use, the processor 102 fetches these computer program code instructions and associated data to implement the computer system functions described herein.

[0036] These computer program code instructions may be logically divided into multiple computer program code instructions in the controller 108, including those described in more detail below. The memory 103 stores product data 109. The product data 109 includes a product ID (such as a barcode number) stored in association with the product price and other related data.

[0037] The EFTPOS terminal 101 further comprises a data interface 105 for sending and receiving data over a wide area network.

[0038] The EFTPOS terminal 101 may further comprise a local area network interface 107 for sending and receiving data via a local area network.

[0039] The system 100 further comprises an optical scanner 110 in operative communication with the EFTPOS terminal 101. The EFTPOS terminal 101 may interface wirelessly with the scanner 110 using a wireless router 111 via a local area network.

[0040] The EFTPOS terminal 101 is further in operable communication with a printer 142 (which may be built-in) for printing purchase receipts, etc.

[0041] The EFTPOS terminal 101 may further comprise a digital display 112 and a user interface controller configured to display a user interface 113 on the digital display 112. The digital display 113 may comprise a haptic overlay for receiving user input gestures in relation to the displayed digital information. As described in more detail below, the user interface 113 may be usable to display a list of a number of products scanned by the scanner 110 and to make adjustments to and payments for them.

[0042] The EFTPOS terminal 101 further comprises a card reader 114 configured to read the PAN (Primary Account Number) of a payment card 115, such as a credit or debit card. It should be noted that the card reader 114 may also read the PAN number from a virtual card implemented by a mobile communications device.

[0043] When processing payments, the EFTPOS terminal 101 can interface with an acquirer / issuer 115 to accept payments using a card scheme 116 via a payment network interface processor 117 .

[0044] The system 100 further comprises a reward scheme server 118. The server 118 may also comprise a processor 102, a memory device 103, a data interface 105, and various controllers 108.

[0045] The memory 103 of the server 118 may further include a plurality of reward rules 119 and store a transaction log 120 .

[0046] The EFTPOS terminal 101 is preferably a standalone physical device that is PCI compliant. The EFTPOS terminal 101 may be PCI compliant and the EFTPOS terminal at least one of: implements a data protection firewall, implements password protection, restricts and encrypts access to cardholder data, encrypts transmission of cardholder data to the reward scheme server 118, and creates an access log.

[0047] FIG. 2 illustrates an exemplary process performed by the system 100.

[0048] In step 123, at least one product is scanned using the scanner 110. The scanner 110 ascertains the barcode number of each product and transmits the barcode as a product ID to the EFTPOS terminal 101. In this example, two cans of cola are scanned and therefore their respective barcode numbers are transmitted consecutively to the EFTPOS terminal 101. If the product does not have a barcode (such as perishables), the unique product ID can be entered manually into the user interface 113.

[0049] In step 124, the scanner controller receives the product ID from the scanner 110 and retrieves the associated product data from the product data 109 stored in memory 103. The product data includes at least the product price. In this example, a can of cola costs $3.

[0050] The user interface controller can update the user interface 113 to display a list of two cans of cola. If necessary, the user can use the user interface 113 to remove items, adjust item quantities, and / or cancel the transaction. The user interface 113 can also display the total price of the scanned products. In this example, the user interface 113 is controlled by the user interface controller to display two cans of cola, each costing $3, for a total of $6.

[0051] The user interface may further comprise an initiate payment button that configures the card reader 114 to read the PAN from the card 115 in step 125 .

[0052] At step 125, the EFTPOS terminal 101 may process payment for the total amount of the scanned products by communicating with the acquirer / issuer via the wide area network 106.

[0053] Once the EFTPOS terminal 101 receives confirmation of a successful payment, at step 126 the server interface controller is configured to send transaction data to the server 118. The transaction data includes the product IDs of the scanned products. In this example, the server interface controller would send two product IDs for two cans of cola. Alternatively, one product ID may be sent along with the quantity of the same type of product.

[0054] In step 127, the server 118 is configured to match rules from the reward rules 119 with the product ID.

[0055] Each rule includes an associated product ID. Additionally, rules 119 may be associated with different product providers, and therefore each rule may include an associated provider ID.

[0056] The rule controller is therefore arranged to iterate through each rule 119 to find one which has a product ID that matches the product ID received from the EFTPOS terminal 101 .

[0057] In this case, there are rules established by Coca-Cola that dictate the product ID for canned cola.

[0058] A rule may also be associated with a reward amount. In this example, Coca-Cola provides a reward of $0.10 for each can of Coke purchased.

[0059] The server 118 may expose a web interface, API, etc. that allows various providers to autonomously configure the rules 119 .

[0060] Thus, in step 129, the rule controller looks up the reward amount of $0.10 specified by the matching rule and calculates that this will result in a reward amount of $0.20 being awarded for the two cans of Coke purchased.

[0061] At step 130, the rules controller causes the payment controller of the server 118 to initiate at least one financial transaction according to the provider ID and the reward amount defined by the matching rule. In some embodiments, the system 100 has API access to manage the holding account of the financial institution 132. Thus, the payment controller can initiate a debit transaction to withdraw $0.20 from an account associated with The Coca-Cola Company to the holding account and initiate a credit transaction to credit $0.20 to an account associated with the card 115.

[0062] In this regard, the EFTPOS terminal 101 preferably transmits the PAN number along with the transaction data to the server 118 so that the payment controller of the server 118 can carry out the credit transaction using that PAN number to credit the amount to the account associated with the card 115.

[0063] In some embodiments, the EFTPOS terminal 101 is further configured to transmit other data together with the transaction data to the server 118. Furthermore, at least one rule includes a criterion, and the rule controller is further configured to determine whether the other data satisfies the criterion.

[0064] Other data may include a merchant ID so that the rule is only applicable to a particular merchant.

[0065] In some embodiments, the other data includes location and the criteria specifies a region. The location data may be coded into the EFTPOS terminal 101 during initial set-up of the system or may be determined dynamically, such as by IP address.

[0066] In a further embodiment, the other data includes a product price and the criteria includes a price threshold. For example, a provider may specify that a rule only applies if a can of Coke is purchased for more than $2.50.

[0067] In a further embodiment, the criteria may include a time period criterion.

[0068] Note that rules 119 may include more than one rule associated with a product ID. For example, both merchants and providers may set rules, and both rules are enforced by the rules controller.

[0069] In step 131, the rules controller is configured to store a transaction record. The transaction record includes a unique transaction ID and may store at least one of a product ID, a provider ID, a reward amount, transaction details, etc.

[0070] FIG. 3 illustrates an exemplary process 113 implemented by the system 100 to revoke the credit of a reward amount for a returned product.

[0071] The server 118 receives the transaction ID at step 134. When processing the payment, the EFTPOS terminal 101 may issue a paper receipt using the printer 142. The receipt may include the transaction ID.

[0072] Thus, when a product is refunded, the transaction ID can be entered into the EFTPOS terminal 101 and transmitted to the server 115 .

[0073] In step 136, the refund controller of server 118 uses the transaction ID to retrieve the transaction data from the transaction log. In this example, the transaction data indicates that two cans of Coke were purchased and that a $0.20 debit and credit transaction was performed involving the account associated with the provider and the PAN associated with the account of card 115.

[0074] If the refund controller is unable to locate the transaction in the transaction log, the server 118 sends a rejection notice to the EFTPOS terminal 101 which is displayed on the user interface 113 of the EFTPOS terminal 101 .

[0075] However, once a matching transaction is located using the transaction ID, the refund controller can retrieve the PAN from the transaction log 120 in step 137 .

[0076] In some embodiments where the PAN is not stored in the transaction log, the PAN may be obtained from the customer's payment card 115 by the EFTPOS terminal 101.

[0077] In some embodiments, to avoid the need to store the PAN (even in encrypted form), a one-way hash of the PAN is stored in the transaction log 120, and the PAN obtained from the customer's payment card 115 by the EFTPOS terminal 101 is hashed using the same one-way hashing algorithm to verify that the same payment card 115 is being used for the refund transaction as was used for the original transaction.

[0078] Additionally, the refund controller can retrieve the provider ID from the transaction log data, thereby referencing the account associated with the provider ID.

[0079] In step 138, the refund controller retrieves records of previously performed financial transactions, including the reward amount.

[0080] Thus, in step 139, the refund controller may initiate a financial transaction reversal to reverse the previous financial transaction. Specifically, the refund controller may initiate a debit transaction to withdraw the reward amount from the account associated with the card 115 identified by the PAN, and may also initiate a credit transaction to credit the reward amount to the account associated with the provider ID. In step 140, the transaction may be updated accordingly.

[0081] In some embodiments, the EFTPOS terminal 101 may be configured to display a refund transaction amount option, where the refund controller will cause the settlement controller to initiate a reversal of the financial transaction for the transaction amount using the PAN, or a refund part transaction amount option, where the EFTPOS terminal will send a portion of the transaction amount to the server and the refund controller will cause the settlement controller to initiate a reversal of the financial transaction for part of the transaction amount using the PAN.

[0082] In other words, for a $20 transaction, the option to refund the $20 transaction amount (and associated reward amount) is available, or alternatively, the option to enter a portion of the transaction amount, $18, into the EFTPOS 101 user interface 113 and refund the $18 transaction amount (and associated reward amount). In some embodiments, the full reward amount is reversed by the payment controller for the partially refunded transaction amount. Alternatively, the payment controller may be configured to initiate a partial reversal of the reward amount corresponding to a portion of the transaction amount.

[0083] In some embodiments, the EFTPOS terminal 101 may be configured to display a cancel reward amount only option, where the refund controller causes the settlement controller to initiate the cancellation of at least one financial transaction for the reward amount using the PAN, or a refund transaction and cancel reward amount option, where the refund controller determines the transaction amount using the transaction log and causes the settlement controller to initiate the cancellation of the financial transaction for the transaction amount using the PAN, and the refund controller causes the settlement controller to also initiate the cancellation of the financial transaction for the reward amount using the PAN.

[0084] The settlement controller may further be configured to store multiple product IDs in the transaction log for a transaction ID.

[0085] Thus, the EFTPOS terminal 101 may be configured to display a refund option for all products, and the refund controller is configured to select a number of product IDs using the transaction ID and, for each product ID, cause the payment controller to initiate a reversal of a financial transaction for the reward amount associated with each product ID.

[0086] The EFTPOS terminal may also be configured to display alternative options to refund a subset of the products and send selected product IDs of the subset of products to the server, and the refund controller is configured to use the selected product IDs to select the subset of product IDs and, for each product ID, cause the payment controller to initiate a reversal of the financial transaction for the reward amount associated with each product ID. According to this embodiment, a scanner 110 may be used to scan the products to be refunded, and the scanner 110 ascertains the product IDs for transmission to the server 118.

[0087] The payment controller may further initiate a reversal of the financial transaction for the original transaction amount for all products, or, if only a subset of products are selected using the EFTPOS terminal, for the original transaction amount for the selected subset of products.

[0088] In some embodiments, at step 135 the system 100 also requires that the product being refunded be scanned for verification purposes. Thus the product ID is also sent from the EFTPOS terminal 101 to the server 118 so that the refund controller can verify the product ID against the transaction log. Other data may also be sent from the EFTPOS terminal 101 to the server 118 for verification purposes. For example, the server 118 may verify that the product is being returned to the same location, to the same merchant, etc.

[0089] As is apparent from Figure 1, the EFTPOS terminal 101 does not need to interface with the POS system 141. However, at the end of the day the EFTPOS terminal 101 may be configured to print a purchase transaction batch report using the printer 142, which can be manually entered into the POS system 141 if required. The batch report may include the quantity and price of each product sold within a certain period of time.

[0090] In the foregoing description, for purposes of explanation, specific nomenclature is used to provide a thorough understanding of the invention. However, it will be apparent to those skilled in the art that specific details are not required to practice the present invention. Thus, the foregoing descriptions of specific embodiments of the present invention are presented for purposes of illustration and description. They are not intended to be exhaustive or to limit the invention to the precise forms disclosed, and obviously, many modifications and variations are possible in light of the above teachings. The embodiments were chosen and described to best explain the principles of the invention and its practical application, so as to enable those skilled in the art to best utilize the invention and its various embodiments, with various modifications suited to the particular use contemplated. It is intended that the following claims and their equivalents define the scope of the invention.

Claims

1. 1. A payment processing system for implementing a product purchase rewards scheme, the system comprising: an EFTPOS terminal; an optical scanner in operative communication with the EFTPOS terminal; a reward scheme server in operative communication with said EFTPOS terminal via a wide area network, said EFTPOS terminal comprising: a memory device for storing product data, the product data comprising product IDs stored in association with respective product prices; and a scan controller configured to ascertain product prices from product IDs scanned by the optical scanner; a digital display and a user interface controller configured to display a plurality of scanned products on the digital display; a card reader and payment controller configured to read the PAN from the card to initiate a financial transaction for the total amount of the scanned product; a server interface controller configured to transmit transaction data to the server, the transaction data including product IDs of the scanned products; Equipped with The reward scheme server: a database containing a plurality of reward rules, each associated with an associated product ID; A rule controller, Find at least one rule that matches the product ID; determining a reward amount associated with the rule; determining a provider ID associated with the rule; In the payment controller, initiate at least one financial transaction involving the provider ID and the reward amount; Store a transaction log comprising transaction IDs of said financial transactions to make a rules controller configured as follows: a refund controller, receiving the transaction ID from the EFTPOS terminal; selecting the transaction from the transaction log using the transaction ID; having the payment controller initiate a reversal of at least one financial transaction involving the reward amount using the PAN. a refund controller configured to: a reward scheme server comprising: A system comprising:

2. The system of claim 1 , wherein the EFTPOS terminal is PCI compliant.

3. The EFTPOS terminal is compliant, and the EFTPOS terminal is Implementing data protection firewalls; Implementing password protection, at least one of restricting access to cardholder data and encrypting cardholder data; Encryption of the transmission of cardholder data to the reward scheme server; and Creating an access log The system of claim 2 , further comprising:

4. 2. The system of claim 1, wherein the transaction data further includes other data, and at least one of the rules is associated with a criterion, and the rule controller is further configured to determine whether the other data satisfies the criterion.

5. The system of claim 4 , wherein the other data includes a merchant ID.

6. The system of claim 4 , wherein the other data includes a location and the criteria specifies a region.

7. The system of claim 4 , wherein the other data includes product price and the criterion is a price threshold.

8. The system of claim 4 , wherein the criteria is a time of day criteria.

9. The system of claim 1 , wherein more than one rule is associated with a product ID.

10. the EFTPOS terminal is configured to transmit the PAN along with the transaction data to the reward scheme server; the settlement controller is further configured to store the PAN in a transaction log for the transaction ID; the refund controller is configured to select the PAN from the transaction log using the transaction ID; The system of claim 1 .

11. The settlement controller is configured to generate a hash of the PAN using a one-way hashing algorithm and store it in a transaction log for the transaction ID, and the refund controller is configured to: receiving a further PAN number obtained from a payment card by said EFTPOS terminal; generating a further hash of the further PAN using the one-way hashing algorithm; Compare the hash with the further hash The system of claim 1 configured to:

12. The EFTPOS terminal a refund option for the transaction amount, wherein the refund controller causes the settlement controller to initiate a reversal of the financial transaction for the transaction amount using the PAN; or a partial transaction amount refund option, wherein the EFTPOS terminal transmits a portion of the transaction amount to the server, and the refund controller causes the settlement controller to initiate a reversal of the financial transaction for the portion of the transaction amount using the PAN; The system of claim 1 , configured to display either

13. The EFTPOS terminal a reversal of the reward amount only option, wherein the refund controller causes the settlement controller to initiate a reversal of at least one financial transaction involving the reward amount using the PAN; or An option to refund the transaction and revoke the reward amount, the refund controller using the transaction log to determine a transaction amount, and having the settlement controller initiate a reversal of the financial transaction for the transaction amount using the PAN; the refund controller instructing the settlement controller to initiate a reversal of the financial transaction relating to the reward amount using the PAN; option The system of claim 1 , configured to display either

14. The system of claim 1 , wherein the settlement controller is further configured to store multiple product IDs in a transaction log for the transaction ID.

15. 15. The system of claim 14, wherein the EFTPOS terminal is configured to display a refund option for all products, and the refund controller is configured to select the plurality of product IDs using the transaction ID and, for each product ID, cause the payment controller to initiate a reversal of a financial transaction for a reward amount associated with the each product ID.

16. 16. The system of claim 15, wherein the refund controller is further configured to cause the settlement controller to initiate a reversal of a financial transaction for a total transaction amount of the product.

17. 15. The system of claim 14, wherein the EFTPOS terminal is configured to display a refund option for a subset of products and transmit selected product IDs of the subset of products to the server, and the refund controller is configured to select a subset of product IDs using the selected product IDs and, for each product ID, cause the payment controller to initiate a reversal of a financial transaction for a reward amount associated with the each product ID.

18. 20. The system of claim 17, wherein the refund controller is further configured to cause the settlement controller to initiate a reversal of financial transactions for a total transaction amount for the subset of products.

19. 11. The system of claim 10, wherein a product ID is transmitted from the EFTPOS terminal to the server, and the refund controller is configured to validate the product ID against the transaction log.

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