HUP0800424A2 - System and method for transmitting group identifiers in a transaction initiated by card - Google Patents

Description

JOINT STOCK EXCHANGE

System and method for transmitting group identifiers in card-initiated transactions

The invention relates to the transmission of group identifiers in card systems and a method for operating such a system.

The invention is based on the recognition that the PIN code used during card use - as an interaction that can be implemented on any suitable terminal and that basically performs a security function - is reinterpreted and a new function is assigned to the PIN code.

On the card acceptance side, POS terminals used in commerce and their management - in addition to security regulations - have been designed in such a way that card acceptance is as simple and routine as possible. POS terminal manufacturers and terminal operators and programmers have strived to ensure that card-initiated transactions (e.g. payments, allocations, reservations, i.e. blockings, etc.) can be carried out with as little human intervention as possible.

As a result, POS terminals used in practice are basically prepared for the following human interventions when initiating transactions (e.g. blocking/payment, etc.):

- “swiping” the card (in the case of a card containing a magnetic stripe);

- Communication with a card containing a chip (e.g. PIN verification);

- Enter the amount to be paid or blocked;

- Enter PIN code.

Of course, it is possible to add additional functions to the terminals through programming, however, given that most card acceptance networks are not homogeneous, i.e. several card acceptance networks operate in parallel and sometimes use the same POS terminal, supplementing POS terminals with new functions and interactions (i.e. "reprogramming" the terminals) is extremely costly and difficult to implement in practice, often an impossible task.

Apart from the human interventions mentioned above, there is no possibility to create additional default user interactions during card acceptance that could be implemented on a POS terminal operated by any organization without reprogramming the terminal.

The above technological limitation is a serious disadvantage for health funds, for example, because it is typical for health fund current accounts that the payment of the consideration for certain products or services from the current account is only permitted under the conditions specified by the relevant legislation. In order to meet this requirement, the funds classify the products and services that can be purchased from the health fund current account into different categories, so-called product groups, and do not automatically allow card payments from the current account by checking compliance with the conditions prescribed by the legislation for each product group.

Given that the possibilities for interactions with POS terminals without reprogramming are quite limited, it is currently not possible to transmit information regarding the group affiliation of the product or service being the subject of the interaction as a default action during card acceptance within the transaction (e.g., separating the price of a product belonging to a group of products that can only be purchased by persons over 18 years of age in the customer's current account).

US Patent No. 5,770,843 describes a system in which a card can be used to access several different bank accounts in such a way that, based on the card identifier, a central computer searches for the identifiers of the bank accounts associated with the card and forwards them to the cardholder, who selects the bank account to be debited and enters the PIN code associated with the selected bank account. If the PIN code associated with the selected bank account is correct, payment from the given bank account is authorized. In this case, the card therefore allows a choice between bank current accounts.

Although the aforementioned system allows access to multiple accounts using a single card, it is a disadvantage that selecting an account requires additional user interaction beyond the PIN code. This US patent 5,770,843 is specifically aimed at verifying the identity of the cardholder, using the PIN code as a security verification tool in the traditional sense. The function of the other code to be entered on data entry devices (e.g. ATM) is to identify the initiating person in the system's database, while the card swipe and PIN code entry on card acceptance devices provide data for verifying the identity of the cardholder.

Since the currently widely used POS terminals offer very few options for user interaction, existing options must be used and reinterpreted to expand the available functions. The PIN code is currently used as a security device for card payments, but there is no technical reason to exclude that the given code can be interpreted not only as a security device, but also as a code defined based on the card issuer's own logical system.

Our invention aims to eliminate the above-mentioned problems and to develop a system in which electronic transactions initiated with a card contain the category identifier of the product and service groups (hereinafter referred to as product groups) defined based on the card issuer's own logical system, which the POS terminal requests as a PIN code at the card acceptance point, thereby enabling the transaction processing system to logically organize the transaction based on the categories defined in its own system, using the received category identifier, and to authorize or reject the payment, marking, segregation, blocking, etc. request based on the categories, all in such a way that it is not necessary to modify the software of the POS terminals currently operating in the card acceptance network in order to transmit the identifiers of the logical categories individually defined by different card issuers.

We achieve the set goals by implementing a card payment system that includes at least the following elements:

- a POS terminal for entering at least one identifier stored on the card, information on the value to be settled and at least one additional data, in particular a PIN code;

- an Approving System that receives from the POS terminal at least one identifier stored on the card, information on the value to be settled and the logical group identification data to be included in the PIN data, and authorizes or prohibits the settlement transaction initiated with the card;

- the communication link between the POS terminal and the Evaluation system.

The system according to the invention is characterized in that more than one logical group is formed in the card issuer's Reviewing system, to which a unique group identifier is associated, and the Reviewing system is configured to be permissive or prohibitive based on the information regarding the value to be settled, the identifier stored on the card, the group elements defined by the logical group identifier given as a PIN code via the POS terminal, the data of the selected group elements stored in the database, and the algorithms of the Reviewing system.

The objectives are achieved, on the other hand, by a method for operating a card system according to the invention, during which

- the Evaluation System receives at least one identifier stored on the card, information on the value to be settled and the logical group identifier provided as a PIN code or as part thereof;

- we select the appropriate logical group (e.g. product range) based on the logical group identifier; and

- the card settlement transaction is authorized or prohibited based on at least the information regarding the value to be settled, the group and product range data stored in the database determined by the identifier stored on the card and the logical group identifier, and the algorithms of the Evaluation System.

The significance of the invention lies in the fact that the card issuer can freely define several logical categories in its acquirer system, each of which is assigned a category identification code. On the card acceptor side, during a transaction with a card, the natural person (human) accepting the card at the POS terminal classifies the object of the transaction (product, service, pawn, public storage, etc.) into the appropriate category, and when requesting a PIN code, provides the category identification code corresponding to the selected category. In this way, the identification code of the selected logical category is also transmitted simultaneously in the transaction, using which the transaction processing system is able to assign the transaction to the categories defined by itself and decide on the authorization or rejection of the payment or blocking or other request that is the subject of the transaction. Since each card issuer defines categories based on its own logical system, the card issuer's task is simply to inform the card acceptance point of the logical categories it has defined, the products or services belonging to them, and the identification code of each category. By applying this procedure, the card issuer is free to decide whether to use the PIN code requested at the POS terminal entirely for product identification, or to logically divide the PIN code into several parts and use it both as a security code and a product identification (e.g. the first two characters are a security code, the second two characters are a product identification).

The invention will be described in detail below with reference to the drawings, where Figure 1 illustrates the system according to the invention.

In order to better understand the system and method of the invention, the definitions of the means used in the description are briefly described below.

POS terminal: A device placed at card acceptance locations (e.g. at a merchant, seller of goods or services), which is connected to the system operating the terminal via a communication network and, when the card is used, transmits the data in electronic form to the card issuer's authorization system, or receives it from it.

PIN code: a security code used to identify the cardholder.

Card issuer·, the legal entity that defines the given card usage system and makes the card available to the cardholder (i.e. issues it and authorizes its use).

Cardholder: the person to whom the card issuer has issued the card and authorized it to be used.

Card acceptance point, a party that has contracted with the card issuer to accept cards, at which payment or blocking, or other settlement transactions specified by the card issuer, can be initiated.

Card acceptor, an authorized person acting on behalf of the card accepting location who is authorized to operate the card accepting location's POS terminal (e.g. store cashier).

A card acceptance network is a collection of card acceptance locations, card acceptance personnel, systems that monitor and operate POS terminals, and systems involved in electronic communication.

Settlement transaction: an electronic message sent from the POS terminal when a legal transaction is completed (e.g., when making a purchase), which contains the data of the legal transaction (e.g., purchase of goods). A settlement transaction is a request to be made using the card and its assessment, including in particular, but not exclusively, a payment request, a separation request, a blocking request, a request for release from a deposit or pledge, an instruction to perform a specific service, and their assessment.

Payment transaction: an electronic message sent from the POS terminal at the time of purchase, containing the purchase data. The payment transaction means both the payment request and the blocking request for the invention. The communication of the blocking request is technically the same as the payment request, the difference lies in the settlement. While the authorization of the payment request necessarily entails payment, the blocking request typically means IT, accounting, inventory! separation, and financial performance may depend on other conditions (e.g. contractual terms, legal compliance, other mandatory data provision).

Base24 systems: systems to which POS terminals can connect via a communication network and are participants, transmitters or even authorization devices in the communication of payment (settlement) transactions.

Authorization: rejection or approval of the transaction request.

A logical group is a homogeneous unit defined by the card issuer, e.g. a group of products to be settled or services to be used, which the card issuer defines based on its own logical system.

Logical group identifier: a unique identifier of a group, with which the card issuer clearly identifies the logical group defined in the system, e.g. determines the group belonging of the product or service in the card issuer's logical system.

The reference symbols in Figure 1 indicate the following devices:

- 1: Card with which payment or blocking (settlement) can be initiated;

- 2: Magnetic stripe, the data content of which includes a code or code system that clearly identifies the cardholder, e.g. card number;

- 3: POS terminal where the payment is initiated;

- 4: Magnetic stripe reader, the part of the POS terminal with which the terminal reads the data content of the magnetic stripe;

- 5: Base24 systems to which the terminal forwards the electronic payment or blocking (settlement) request, or those Base24 systems through which the electronic transaction is forwarded to the Adjudicating System;

- 6: Communication line on which the electronic transaction is transmitted from the POS terminal to the Adjudicating system, if the terminal is not connected to the Base24 system, but directly to the Adjudicating system;

- 7: An adjudication system that receives electronic transactions initiated from POS terminals, decides whether to accept or reject them, and returns the electronic response message via the same communication path on which it was received.

Description of the process

- The cardholder hands over 1 card to the agent of the card acceptance point to initiate payment, blocking (settlement)

- The person accepting the card swipes the card's magnetic stripe 2 on the magnetic stripe reader 4 of the POS terminal 3

- The 3 POS terminal requests a PIN code, the card acceptor enters the identifier of the logical category (e.g. product range) defined by the card issuer on the terminal's keyboard or PIN PAD based on the physical inspection of the object that is the subject of the settlement transaction (e.g. product or service to be purchased, movable property placed in a pawn, public warehouse item).

o If the 3 POS terminal is not directly connected to the 7 Reviewing system, it sends the electronic payment or blocking (settlement) request to the 5 Base24 systems, which forward the transaction to the 7 Reviewing system via the defined communication paths. o If the 3 POS terminal is directly connected to the 7 Reviewing system, it forwards the transaction to the 7 Reviewing system via the 6 communication solutions used for this purpose: Telephone line, Leased line, Internet, or other data transmission method.

- The 7 Reviewing System o Accepts the transaction o According to the Registry database:

Based on the magnetic stripe data content in the transaction • Identifies the cardholder • Checks the status of the card, i.e. whether payment and blocking (settlement) with the card is authorized

Based on the PIN data included in the transaction • Identifies the logical category of the card issuer, • and if the PIN data also performs a security function, verifies its correctness

Based on the transaction data • Decides whether to authorize or reject the payment or blocking (settlement) request • If authorized, registers the payment, blocking (registers the settlement) in the Registry database o Returns the response to the 3 POS terminal on the same 5, 6 communication path on which the transaction was received.

The 7 Reviewing System may use various transaction logging procedures during the process, which the 7 Reviewing System may develop according to its own needs, so these are not covered in detail in the description of the process.

The invention has been described above by way of specific examples. However, it will be apparent to those skilled in the art that many other embodiments of the invention are possible within the scope of the claims.

Claims (4)

Patent claims 1. Card payment system that includes at least - a POS terminal (3) for entering at least one identifier stored on the card (1), information on the value to be settled and at least one additional data, in particular a PIN code; - an Adjudication system (7) receiving from the POS terminal (3) at least one identifier stored on the card (1), information on the value to be settled and the logical group identification data to be included in the PIN data, and authorizing or prohibiting the settlement transaction initiated with the card (1), - a communication connection (5 and 6) between the POS terminal (3) and the Evaluation system (7), characterized in that - more than one logical group is created in the card issuer's Review system (7), to which a unique group identifier is associated, and - the Evaluation system (7) is trained to allow or deny the transaction based on the information regarding the value to be settled, the identifier stored on the card (1), the group elements defined by the logical group identifier given as a PIN code via the POS terminal, the data of the selected group elements stored in the database, and the algorithms of the Evaluation system (7). 2. The system according to claim 1, characterized in that the communication connection (5 and 6) comprises a public telephone line, a leased line, the Internet, a Base24 system, another data transmission method, or any combination thereof. 3. The system according to claim 1 or 2, characterized in that the same category identifiers are associated with the same logical groups even in the case of different registration units. 4. Method for operating a card system according to claims 1-3, characterized in that - the Evaluation System receives at least one identifier stored on the card, information on the value to be settled and the logical group identifier provided as a PIN code or as part thereof; - we select the appropriate logical group (e.g. product range) based on the logical group identifier; and - the card settlement transaction is authorized or prohibited based on at least the information regarding the value to be settled, the identifier stored on the card (1) and the data stored in the database of the group or product range determined by the logical group identifier, and the algorithms of the Evaluation System.