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WO2025085001A1 - The infrastructure of short qr code central switching system for payments - Google Patents

The infrastructure of short qr code central switching system for payments Download PDF

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Publication number
WO2025085001A1
WO2025085001A1 PCT/TR2023/051179 TR2023051179W WO2025085001A1 WO 2025085001 A1 WO2025085001 A1 WO 2025085001A1 TR 2023051179 W TR2023051179 W TR 2023051179W WO 2025085001 A1 WO2025085001 A1 WO 2025085001A1
Authority
WO
WIPO (PCT)
Prior art keywords
code
card
entity
switching system
central
Prior art date
Legal status (The legal status is an assumption and is not a legal conclusion. Google has not performed a legal analysis and makes no representation as to the accuracy of the status listed.)
Pending
Application number
PCT/TR2023/051179
Other languages
French (fr)
Inventor
Yasin İNAN
Current Assignee (The listed assignees may be inaccurate. Google has not performed a legal analysis and makes no representation or warranty as to the accuracy of the list.)
Bankalararasi Kart Merkezi AS
Original Assignee
Bankalararasi Kart Merkezi AS
Priority date (The priority date is an assumption and is not a legal conclusion. Google has not performed a legal analysis and makes no representation as to the accuracy of the date listed.)
Filing date
Publication date
Application filed by Bankalararasi Kart Merkezi AS filed Critical Bankalararasi Kart Merkezi AS
Priority to PCT/TR2023/051179 priority Critical patent/WO2025085001A1/en
Publication of WO2025085001A1 publication Critical patent/WO2025085001A1/en
Pending legal-status Critical Current
Anticipated expiration legal-status Critical

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Classifications

    • G—PHYSICS
    • G06—COMPUTING OR CALCULATING; COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/02—Payment architectures, schemes or protocols involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
    • G06Q20/027—Payment architectures, schemes or protocols involving a neutral party, e.g. certification authority, notary or trusted third party [TTP] involving a payment switch or gateway
    • G—PHYSICS
    • G06—COMPUTING OR CALCULATING; COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/08—Payment architectures
    • G06Q20/10—Payment architectures specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
    • G06Q20/108—Remote banking, e.g. home banking
    • G06Q20/1085—Remote banking, e.g. home banking involving automatic teller machines [ATMs]
    • G—PHYSICS
    • G06—COMPUTING OR CALCULATING; COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/08—Payment architectures
    • G06Q20/20—Point-of-sale [POS] network systems
    • G—PHYSICS
    • G06—COMPUTING OR CALCULATING; COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/30—Payment architectures, schemes or protocols characterised by the use of specific devices or networks
    • G06Q20/32—Payment architectures, schemes or protocols characterised by the use of specific devices or networks using wireless devices
    • G06Q20/322—Aspects of commerce using mobile devices [M-devices]
    • G—PHYSICS
    • G06—COMPUTING OR CALCULATING; COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/30—Payment architectures, schemes or protocols characterised by the use of specific devices or networks
    • G06Q20/32—Payment architectures, schemes or protocols characterised by the use of specific devices or networks using wireless devices
    • G06Q20/325—Payment architectures, schemes or protocols characterised by the use of specific devices or networks using wireless devices using wireless networks
    • G—PHYSICS
    • G06—COMPUTING OR CALCULATING; COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/30—Payment architectures, schemes or protocols characterised by the use of specific devices or networks
    • G06Q20/32—Payment architectures, schemes or protocols characterised by the use of specific devices or networks using wireless devices
    • G06Q20/326—Payment applications installed on the mobile devices
    • G—PHYSICS
    • G06—COMPUTING OR CALCULATING; COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/30—Payment architectures, schemes or protocols characterised by the use of specific devices or networks
    • G06Q20/32—Payment architectures, schemes or protocols characterised by the use of specific devices or networks using wireless devices
    • G06Q20/327—Short range or proximity payments by means of M-devices
    • G—PHYSICS
    • G06—COMPUTING OR CALCULATING; COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/30—Payment architectures, schemes or protocols characterised by the use of specific devices or networks
    • G06Q20/32—Payment architectures, schemes or protocols characterised by the use of specific devices or networks using wireless devices
    • G06Q20/327—Short range or proximity payments by means of M-devices
    • G06Q20/3274—Short range or proximity payments by means of M-devices using a pictured code, e.g. barcode or QR-code, being displayed on the M-device
    • G—PHYSICS
    • G06—COMPUTING OR CALCULATING; COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/30—Payment architectures, schemes or protocols characterised by the use of specific devices or networks
    • G06Q20/32—Payment architectures, schemes or protocols characterised by the use of specific devices or networks using wireless devices
    • G06Q20/327—Short range or proximity payments by means of M-devices
    • G06Q20/3276—Short range or proximity payments by means of M-devices using a pictured code, e.g. barcode or QR-code, being read by the M-device
    • G—PHYSICS
    • G06—COMPUTING OR CALCULATING; COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/38—Payment protocols; Details thereof
    • G06Q20/385—Payment protocols; Details thereof using an alias or single-use codes

Definitions

  • the present invention provides a method which comprises the step of scanning the QR code displayed on the merchant’s card acceptor terminal with the mobile wallet application of the user instead of inserting or touching of the credit/bank card or pre-payment card physically during payment to the merchant’s card acceptor terminal.
  • QR code payment methods constitute generally a closed-circuit payment method, because payment institutions using QR code payment develop QR code payment projects by using their self-defined structures. Thus, these payment methods are both not global and not open-circuit; they constitute a system which operates totally within itself.
  • a QR code generated by a card acceptor bank (acquirer) or a card issuing bank(issuer) can’t be accepted by another card acceptor bank or a payment entity.
  • Payment methods evolve fast nowadays, and many methods are developed. There are two terms which we confront frequently in prior state of art for payment methods: the person having the fund whose transfer is carried out can start the payment [“push payment”] or the payment can be started if a demand is introduced via terminals [“pull payment”].
  • “Pull payment” method is a method wherein the acquirer gives to the issuer the order of sending money.
  • the person who controls the payment and gives the order of sending money is the acquirer.
  • the issuer starts sending money to the acquirer and therefore the issuer controls the aspects of the payment including the quantity and the destination.
  • the present methods use generally the “push payment” method and here, in card payment systems, the payment is rendered by transferring the transaction amount from the bank card of the payer, namely of the client to the bank card of the acquirer or card acceptor.
  • This “push payment” system may be incompatible with the card payment world.
  • the methods in prior state of art can be operated only on terminals which generate the QR code corresponding to the QR code structure determined by EMVCo and display on its screen. Since the QR code structure determined by EMVCo comprises a great amount of data, QR codes comprising such great amounts of data cannot be displayed on some terminals. A system developed for terminals which cannot display these QR codes (long QR codes) isn’t yet available.
  • An aim of the present invention is to bring a standard to the payments rendered by using short QR code.
  • Another aim of the invention is to enable the payment method by using short QR code to be an open-circuit and global payment method.
  • Another aim of the invention is to develop a payment system and method also to be operated on terminals which cannot generate the QR code corresponding to the QR code determined by EMVCo and which cannot display it on their screens due to the hardware restrictions.
  • FIG. 3 schematic appearance of the system applying the payment method according to another embodiment of the invention together with the application steps
  • Terminal owner bank Detailed Description of the Invention
  • the present invention is related to a payment system and payment method wherein QR code (Quick Reference code) layer is added to the available infrastructure devices and software.
  • QR code Quality Reference code
  • the method that constitutes the subject of the invention covers the steps of converting the QR code to card and payment information and switching it between the card accepting and card issuing financial entities; verifying the generated code and the card owner client; and exchanging and settling accounts after completing transactions.
  • the system applying the payment method according to the present invention comprises the card accepting entity (1), the card acceptor terminal (2), the central QR code switching system (3), the card issuing entity (4) and the user mobile device (5).
  • the system applying the payment method according to the present invention comprises a mobile service providing entity (6) as well.
  • the card accepting entity (1) in the present invention covers the entities which establish the bank card or credit card system, and which are given the authority to sign the merchants card acceptor agreement according to this system and the entities which are given the authority to accept the cards in the payment system according to the present invention.
  • the card accepting entity (1) includes a data decryption unit, a transmission unit, and an authorization message unit.
  • the data decryption unit is configured to decrypt card data
  • the transmission unit is configured to transmit the card data decrypted by the data decryption unit to the card acceptor terminal (2).
  • the central QR code switching system (3) enables the transfer of short QR codes and information included in their content between the card accepting entity (1), the card issuing entity (4) and the mobile service providing entity (6).
  • the central QR code switching system (3) comprises a second transmission unit for transmitting the QR code data and encrypted card data and a first database unit in which the committed transactions and data transmission are recorded.
  • the card acceptor terminal (2) comprises a QR code generating unit and an authorization unit.
  • the card issuing entity (4) in the payment system which constitutes the subject of the invention comprises a first database, a tokenization unit, a card provision unit, a transmission unit and optionally a QR code generating unit.
  • the payment system which constitutes the subject of the invention comprises a user mobile device (5) and a mobile application service belonging to the card issuing entity (4) loaded on this mobile device.
  • the mobile service providing entity (6) is a third party entity providing mobile application service and comprises the third database, the second tokenization unit and the fourth transmission unit.
  • the data to be comprised in the QR code according to the present invention are determined by EMVCo.
  • Payment Switch is a switching system which mediates in switching the transactions subjected to exchange committed by means of ATM and POS terminals to the related Card Issuing Entity for authorization and which enables the transmission of the appro ve-reject response of the Card Issuing Entity to the Card Accepting Entity.
  • the present invention discloses a payment system comprising the following steps: a) inputting of transaction information to the card acceptor terminal (2) and generating of a short QR code, b) scanning the short QR code generated on the terminal by means of the mobile application of the card issuing entity (4), c) transmitting of scanned short QR code data by means of the mobile application to the mobile service providing entity (6), d) demanding by the mobile service providing entity (6) of detail information related to short QR code from the central QR code switching system (3), e) demanding by the central QR code switching system (3) of detail information related to short QR code from the card accepting entity (1), f) displaying of transaction detail information coming from the card accepting entity (1) to the central QR code switching system (3) and from the central QR code switching system (3) to the mobile service providing entity (6) on the mobile application and approval by the user, g) sending of approved transaction detail information from the mobile service providing entity (6) to the central QR code switching system (3) and encrypting of transaction detail information by means of the card issuing entity key, wherein this key is between the mobile service
  • an amount is first inputted to the card acceptor terminal (2) (I) and a QR code is taken from the terminal (II).
  • An entry is made into the mobile application of Mobile Service Providing Entity and “QR code payment” is chosen from the options on the application.
  • QR code displayed on the card acceptor terminal (2) is scanned and optionally a card selection is made (III).
  • the scanned short QR code data is transmitted by means of the mobile application to the mobile service providing entity (6) (IV).
  • the mobile service providing entity (6) demands from the central QR code switching system (BKM KYS, 3) the detail information related to the short QR code. This demand is introduced with a service (V-l).
  • the central QR code switching system (BKM KYS, 3) demands from the card accepting entity (1) the detail information related to the short QR code (V-2).
  • the number, expiration date and other information of the chosen card are transmitted from the mobile service providing entity (6) to the central QR code switching system (BKM KYS, 3) (V-3) and from here to the card issuing entity (4) (VI).
  • the card issuing entity (4) transmits all information to the central QR code switching system (3) by adding information like the electronic commerce indicator (ECI), client verification method (CVM) to the coming detail information (VII). Afterwards, all information is transmitted to the card accepting entity (1) (VIII).
  • the card acceptor terminal (2) composes the authorization message with coming data and switches the transaction to the system of the card accepting entity (1).
  • the terminal requests PIN from the card holder and adds the PIN block data to the authorization message as well.
  • PIN personal identity number
  • the Card Accepting Entity commits the transaction itself as a response to the demand coming from the terminal depending on the identity of the card issuing entity or transmits the transaction to the BKM Payment Switching System (IX).
  • the payment switching system switches the transaction to the card issuing entity (4) (X).
  • the Card Issuing Entity transmits the approval or rejection information via QR Code Switching System (KYS) to the mobile application which starts the QR code transaction as a notification as well as giving the authorization response (XI).
  • KYS QR Code Switching System
  • the terminal completes the transaction according to the coming authorization response (XII).
  • the user first accesses the mobile application service belonging to the card issuing entity (4) on his/her mobile device.
  • a short QR code displayed in a card acceptor terminal (2) is scanned by means of the mobile application service.
  • the card acceptor terminal (2) may be POS and ATM.
  • short QR code information is displayed in the mobile application service.
  • an option is provided in the mobile application service for the user to select the card to pay with.
  • the short QR code payment method may not need a terminal.
  • SoftPOS Virtual POS
  • static QR code mobile QR code display can be used.
  • the payment method which constitutes the subject of the present invention can be operated both in “Merchant presented” and in “Consumer presented” mod. While in “Merchant presented” mod, as explained above, QR code provided in payment method is generated by the card acceptor and is displayed on card acceptor terminal (2), in "Consumer presented” mode QR code displayed on the mobile application screen belonging to the card issuing entity (4) is scanned by the card acceptor terminal (2). The above described method of the invention is operated in accordance with the "Merchant presented" mode. Related flow is shown in Figure 2. In both cases the transmission of card information occurs in an encrypted way and the transaction is verified with QR code.
  • the payment method which constitutes the subject of the invention is characterized in that this data and QR code transmission between the card accepting entity (1) and the card issuing entity (4) is carried out by the central QR code switching system (3).
  • the card issuing entity (4) transmits to the card accepting entity (1) the following information via the Central QR Code Switching system (3): the complete card number, card expiration date, user verification method.
  • card and personal information belonging to the user are stored in the first database of the card issuing entity (4).
  • the mobile service providing entity (6) encrypts the transaction detail information.
  • all switched transactions are sent by encryption.
  • user information stored in the card issuing entity (4) is secured while being transmitted to the central QR code switching system (3).
  • This encryption encrypts with the AES 256 (Advanced Encryption Standard) bite key previously shared by the Central QR Code Switching system (3) with the card issuing entity (4) and again the Central QR Code Switching system (3) shares by means of this encryption the information with the card accepting entity (1).
  • AES 256 Advanced Encryption Standard
  • the data decryption unit decrypts the card data coming from the card accepting entity (1) and transmits it together with the user verification method to the card acceptor terminal (2) by means of the transmission unit. Accordingly, after the card accepting entity (1) has decrypted the coming card and user verification method, if the card issuing entity (4) requests PIN verification in the transaction, the card acceptor terminal (2) demands a PIN code. After the PIN entry, the card acceptor terminal (2) composes an authorization message with the PIN block data and transmits it to the card accepting entity (1). If PIN entry is not requested, only the authorization message is composed and after this stage, the transaction is continued in accordance with the standard card authorization flow. In each case, also the QR code used in the transaction is transmitted in the authorization message and is controlled during the approval.
  • the card issuing entity (4) tokenizes the card information belonging to the user and stored in the first database by means of the tokenization unit and produces a new card whose card number and the expiration date is different from the original card and can commit transaction by using the information of this card created by it independent of the real physical card.
  • the card issuing entity (4) generates a QR code according to the information of this new card by means of the QR code displaying unit.
  • the QR code generated in the alternative embodiment of the invention is displayed on the mobile application screen of the user and the card acceptor terminal (2) demands authorization from the card accepting entity (1) by means of the authorization generating unit by using the card number and the expiration date which it scans from this QR code.
  • the card accepting entity (1) transmits the message which verifies and notifies that the payment transaction has been committed both to the card acceptor terminal (2) and to the mobile application services of the card issuing entity (4).
  • FIG. 3 Another embodiment of the invention is shown in Figure 3. Accordingly, a method which enables the cash withdrawal and cash deposit transactions to be committed from the card accepting unity with the short QR code is disclosed and said method comprises the following steps: a) displaying a short QR code in the card acceptor terminal (2), preferably in ATM, b) scanning the short QR code by the mobile application via a user mobile device camera (5), c) sending of scanned short QR code information, together with the account number and/or amount information, to the account holder entity (7), d) transmitting of information transmitted in step c) from the account holder entity (7) to the central system (8), e) transmitting of information transmitted in step c) to the terminal owner bank (9) by means of the central system (8), f) control by the terminal owner bank (9) of short QR code information and transmission of the transaction to the card acceptor terminal (2), g) completing of the transaction in the card acceptor terminal (2) and production of the receipt.
  • the central system (8) can be the central QR code switching system, service of payment by transfer and open banking layer service.
  • a commission can be demanded from the account holder entity (7) in cash withdrawal transaction and related money withdrawal service commission information is transmitted to the user by means of the user mobile device (5) and commission approval is taken from the user.

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  • General Business, Economics & Management (AREA)
  • Strategic Management (AREA)
  • Physics & Mathematics (AREA)
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Abstract

The present invention provides a method which comprises the step of scanning the QR code displayed on the merchant's card acceptor terminal with the mobile wallet application of the user instead of inserting or touching of the credit card or bank card or pre-paid card physically during payment to the merchant's card acceptor terminal.

Description

THE INFRASTRUCTURE OF SHORT QR CODE CENTRAL SWITCHING SYSTEM FOR PAYMENTS
Technical Field
The present invention provides a method which comprises the step of scanning the QR code displayed on the merchant’s card acceptor terminal with the mobile wallet application of the user instead of inserting or touching of the credit/bank card or pre-payment card physically during payment to the merchant’s card acceptor terminal.
Prior State of Art
QR code payment methods constitute generally a closed-circuit payment method, because payment institutions using QR code payment develop QR code payment projects by using their self-defined structures. Thus, these payment methods are both not global and not open-circuit; they constitute a system which operates totally within itself. A QR code generated by a card acceptor bank (acquirer) or a card issuing bank(issuer) can’t be accepted by another card acceptor bank or a payment entity.
Payment methods evolve fast nowadays, and many methods are developed. There are two terms which we confront frequently in prior state of art for payment methods: the person having the fund whose transfer is carried out can start the payment [“push payment”] or the payment can be started if a demand is introduced via terminals [“pull payment”]. “Pull payment” method is a method wherein the acquirer gives to the issuer the order of sending money. Here, the person who controls the payment and gives the order of sending money is the acquirer. However in push payment, the issuer starts sending money to the acquirer and therefore the issuer controls the aspects of the payment including the quantity and the destination. The present methods use generally the “push payment” method and here, in card payment systems, the payment is rendered by transferring the transaction amount from the bank card of the payer, namely of the client to the bank card of the acquirer or card acceptor. This “push payment” system may be incompatible with the card payment world.
Moreover, the methods in prior state of art can be operated only on terminals which generate the QR code corresponding to the QR code structure determined by EMVCo and display on its screen. Since the QR code structure determined by EMVCo comprises a great amount of data, QR codes comprising such great amounts of data cannot be displayed on some terminals. A system developed for terminals which cannot display these QR codes (long QR codes) isn’t yet available.
Accordingly, there is still a need for a payment system which is known as short QR code and comprises less data so that it complies with all payment systems and is suitable for use in all terminals in prior state of art.
Aim of Invention
An aim of the present invention is to bring a standard to the payments rendered by using short QR code.
Another aim of the invention is to enable the payment method by using short QR code to be an open-circuit and global payment method. Another aim of the invention is to develop a payment system and method also to be operated on terminals which cannot generate the QR code corresponding to the QR code determined by EMVCo and which cannot display it on their screens due to the hardware restrictions.
Brief Disclosure of Figures
Figure 1 - schematic appearance of the system applying the payment method according to the present invention
Figure 2 - schematic appearance of the system applying the payment method according to the present invention together with the application steps
Figure 3 - schematic appearance of the system applying the payment method according to another embodiment of the invention together with the application steps
Reference List
1. Card accepting entity
2. Card acceptor terminal
3. Central QR code switching system
4. Card issuing entity
5. User mobile device
6. Mobile service providing entity (MHSK)
7. Account holder entity
8. Central system
9. Terminal owner bank Detailed Description of the Invention
The present invention is related to a payment system and payment method wherein QR code (Quick Reference code) layer is added to the available infrastructure devices and software.
The method that constitutes the subject of the invention covers the steps of converting the QR code to card and payment information and switching it between the card accepting and card issuing financial entities; verifying the generated code and the card owner client; and exchanging and settling accounts after completing transactions.
As shown in Figure 1, the system applying the payment method according to the present invention comprises the card accepting entity (1), the card acceptor terminal (2), the central QR code switching system (3), the card issuing entity (4) and the user mobile device (5).
The system applying the payment method according to the present invention comprises a mobile service providing entity (6) as well.
The card accepting entity (1) in the present invention covers the entities which establish the bank card or credit card system, and which are given the authority to sign the merchants card acceptor agreement according to this system and the entities which are given the authority to accept the cards in the payment system according to the present invention. According to the invention, the card accepting entity (1) includes a data decryption unit, a transmission unit, and an authorization message unit. Here, the data decryption unit is configured to decrypt card data and the transmission unit is configured to transmit the card data decrypted by the data decryption unit to the card acceptor terminal (2). According to the present invention, the central QR code switching system (3) enables the transfer of short QR codes and information included in their content between the card accepting entity (1), the card issuing entity (4) and the mobile service providing entity (6). Here the central QR code switching system (3) comprises a second transmission unit for transmitting the QR code data and encrypted card data and a first database unit in which the committed transactions and data transmission are recorded.
According to the present invention, the card acceptor terminal (2) comprises a QR code generating unit and an authorization unit.
The card issuing entity (4) in the payment system which constitutes the subject of the invention comprises a first database, a tokenization unit, a card provision unit, a transmission unit and optionally a QR code generating unit.
The payment system which constitutes the subject of the invention comprises a user mobile device (5) and a mobile application service belonging to the card issuing entity (4) loaded on this mobile device.
According to the present invention, the mobile service providing entity (6) is a third party entity providing mobile application service and comprises the third database, the second tokenization unit and the fourth transmission unit.
The data to be comprised in the QR code according to the present invention are determined by EMVCo.
According to the present invention, Payment Switch is a switching system which mediates in switching the transactions subjected to exchange committed by means of ATM and POS terminals to the related Card Issuing Entity for authorization and which enables the transmission of the appro ve-reject response of the Card Issuing Entity to the Card Accepting Entity.
The present invention discloses a payment system comprising the following steps: a) inputting of transaction information to the card acceptor terminal (2) and generating of a short QR code, b) scanning the short QR code generated on the terminal by means of the mobile application of the card issuing entity (4), c) transmitting of scanned short QR code data by means of the mobile application to the mobile service providing entity (6), d) demanding by the mobile service providing entity (6) of detail information related to short QR code from the central QR code switching system (3), e) demanding by the central QR code switching system (3) of detail information related to short QR code from the card accepting entity (1), f) displaying of transaction detail information coming from the card accepting entity (1) to the central QR code switching system (3) and from the central QR code switching system (3) to the mobile service providing entity (6) on the mobile application and approval by the user, g) sending of approved transaction detail information from the mobile service providing entity (6) to the central QR code switching system (3) and encrypting of transaction detail information by means of the card issuing entity key, wherein this key is between the mobile service providing entity (6) and the central QR code switching system (3) and also in an embodiment of the present invention, all switched transactions are decrypted and sent, h) switching of encrypted detail information by means of the central QR code switching system (3) to the card issuing entity (4), i) transmission of all information by the card issuing entity (4) to the central QR code switching system (3), by adding information like electronic commerce indicator (ECI), client verification method (CVM) to the coming detail information, j) transmission of all information by the central QR code switching system (3) to the card accepting entity (1), k) verification of short QR code information included in coming information and switching of the transaction to the switching system by the card accepting entity (1), and l) notification of the response coming from the Payment Switching system to the terminal and ensuring the issuance of a receipt and completing the transaction by the card accepting entity (1).
In more detail, as shown in Figure 2, an amount is first inputted to the card acceptor terminal (2) (I) and a QR code is taken from the terminal (II). An entry is made into the mobile application of Mobile Service Providing Entity and “QR code payment” is chosen from the options on the application. By means of the application, QR code displayed on the card acceptor terminal (2) is scanned and optionally a card selection is made (III). The scanned short QR code data is transmitted by means of the mobile application to the mobile service providing entity (6) (IV). The mobile service providing entity (6) demands from the central QR code switching system (BKM KYS, 3) the detail information related to the short QR code. This demand is introduced with a service (V-l). By means of the service, the central QR code switching system (BKM KYS, 3) demands from the card accepting entity (1) the detail information related to the short QR code (V-2). The number, expiration date and other information of the chosen card are transmitted from the mobile service providing entity (6) to the central QR code switching system (BKM KYS, 3) (V-3) and from here to the card issuing entity (4) (VI). The card issuing entity (4) transmits all information to the central QR code switching system (3) by adding information like the electronic commerce indicator (ECI), client verification method (CVM) to the coming detail information (VII). Afterwards, all information is transmitted to the card accepting entity (1) (VIII). The card acceptor terminal (2) composes the authorization message with coming data and switches the transaction to the system of the card accepting entity (1). If the Card Issuing Entity requests card personal identity number (PIN) as the client verification method (CVM), the terminal requests PIN from the card holder and adds the PIN block data to the authorization message as well. The Card Accepting Entity commits the transaction itself as a response to the demand coming from the terminal depending on the identity of the card issuing entity or transmits the transaction to the BKM Payment Switching System (IX). The payment switching system switches the transaction to the card issuing entity (4) (X). The Card Issuing Entity transmits the approval or rejection information via QR Code Switching System (KYS) to the mobile application which starts the QR code transaction as a notification as well as giving the authorization response (XI). The terminal completes the transaction according to the coming authorization response (XII).
In the payment method of the present invention, as shown in Figure 3, the user first accesses the mobile application service belonging to the card issuing entity (4) on his/her mobile device. A short QR code displayed in a card acceptor terminal (2) is scanned by means of the mobile application service. In the payment method according to the present invention, the card acceptor terminal (2) may be POS and ATM.
In another step of the payment method according to the present invention, short QR code information is displayed in the mobile application service. In this stage, also an option is provided in the mobile application service for the user to select the card to pay with. In another embodiment of the present invention, the short QR code payment method may not need a terminal. In this case, SoftPOS, Virtual POS, static QR code, mobile QR code display can be used.
The payment method which constitutes the subject of the present invention can be operated both in "Merchant presented" and in "Consumer presented" mod. While in "Merchant presented" mod, as explained above, QR code provided in payment method is generated by the card acceptor and is displayed on card acceptor terminal (2), in "Consumer presented" mode QR code displayed on the mobile application screen belonging to the card issuing entity (4) is scanned by the card acceptor terminal (2). The above described method of the invention is operated in accordance with the "Merchant presented" mode. Related flow is shown in Figure 2. In both cases the transmission of card information occurs in an encrypted way and the transaction is verified with QR code. The payment method which constitutes the subject of the invention is characterized in that this data and QR code transmission between the card accepting entity (1) and the card issuing entity (4) is carried out by the central QR code switching system (3).
The card issuing entity (4) transmits to the card accepting entity (1) the following information via the Central QR Code Switching system (3): the complete card number, card expiration date, user verification method.
In the method of the invention, card and personal information belonging to the user are stored in the first database of the card issuing entity (4). In step g) of the method, the mobile service providing entity (6) encrypts the transaction detail information. Also, in an embodiment of the present invention, all switched transactions are sent by encryption. In this way, user information stored in the card issuing entity (4) is secured while being transmitted to the central QR code switching system (3). This encryption encrypts with the AES 256 (Advanced Encryption Standard) bite key previously shared by the Central QR Code Switching system (3) with the card issuing entity (4) and again the Central QR Code Switching system (3) shares by means of this encryption the information with the card accepting entity (1).
The data decryption unit decrypts the card data coming from the card accepting entity (1) and transmits it together with the user verification method to the card acceptor terminal (2) by means of the transmission unit. Accordingly, after the card accepting entity (1) has decrypted the coming card and user verification method, if the card issuing entity (4) requests PIN verification in the transaction, the card acceptor terminal (2) demands a PIN code. After the PIN entry, the card acceptor terminal (2) composes an authorization message with the PIN block data and transmits it to the card accepting entity (1). If PIN entry is not requested, only the authorization message is composed and after this stage, the transaction is continued in accordance with the standard card authorization flow. In each case, also the QR code used in the transaction is transmitted in the authorization message and is controlled during the approval. In an alternative embodiment called "Consumer presented mode" of the payment method which constitutes the subject of the invention, the card issuing entity (4) tokenizes the card information belonging to the user and stored in the first database by means of the tokenization unit and produces a new card whose card number and the expiration date is different from the original card and can commit transaction by using the information of this card created by it independent of the real physical card. In this alternative embodiment of the invention, the card issuing entity (4) generates a QR code according to the information of this new card by means of the QR code displaying unit. The QR code generated in the alternative embodiment of the invention is displayed on the mobile application screen of the user and the card acceptor terminal (2) demands authorization from the card accepting entity (1) by means of the authorization generating unit by using the card number and the expiration date which it scans from this QR code. After this transaction has been committed, the card accepting entity (1) transmits the message which verifies and notifies that the payment transaction has been committed both to the card acceptor terminal (2) and to the mobile application services of the card issuing entity (4).
Another embodiment of the invention is shown in Figure 3. Accordingly, a method which enables the cash withdrawal and cash deposit transactions to be committed from the card accepting unity with the short QR code is disclosed and said method comprises the following steps: a) displaying a short QR code in the card acceptor terminal (2), preferably in ATM, b) scanning the short QR code by the mobile application via a user mobile device camera (5), c) sending of scanned short QR code information, together with the account number and/or amount information, to the account holder entity (7), d) transmitting of information transmitted in step c) from the account holder entity (7) to the central system (8), e) transmitting of information transmitted in step c) to the terminal owner bank (9) by means of the central system (8), f) control by the terminal owner bank (9) of short QR code information and transmission of the transaction to the card acceptor terminal (2), g) completing of the transaction in the card acceptor terminal (2) and production of the receipt.
In this method according to the invention, the central system (8) can be the central QR code switching system, service of payment by transfer and open banking layer service. In this method according to the invention, a commission can be demanded from the account holder entity (7) in cash withdrawal transaction and related money withdrawal service commission information is transmitted to the user by means of the user mobile device (5) and commission approval is taken from the user.

Claims

1. A payment system, comprising the following: a) a card accepting entity (1), b) a card acceptor terminal (2), c) a central QR code switching system (3), d) a card issuing entity (4), and e) a user mobile device (5), wherein the payment system is characterized in that it comprises a mobile service providing entity (6).
2. A payment system according to claim 1 , characterized in that the card accepting entity (1) comprises a data decryption unit, a transmission unit, and an authorization message unit.
3. A payment system according to claim 1 or 2, characterized in that the card acceptor terminal (2) comprises a QR code requesting unit, an authorization and a QR code displaying unit.
4. A payment system according to any one of the preceding claims, characterized in that the central QR code switching system (3) comprises a transmission unit for transmission of said encrypted data and QR codes and a second database in which committed transactions and data transfer is recorded.
5. A payment system according to any one of the preceding claims, characterized in that the card issuing entity (4) comprises a first database, a tokenization unit, a card provision unit and a transmission unit.
6. A payment method wherein a payment system according to any one of the preceding claims is operated, characterized in that the method comprises the following steps: a) inputting of transaction information to the card acceptor terminal (2) and creating of a short QR code, b) scanning the short QR code displayed on the terminal by means of the mobile device (5) of the Mobile Service Providing Entity, c) transmitting of scanned short QR code data by means of the mobile application to the mobile service providing entity (6), d) demanding by the mobile service providing entity (6) of detail information related to short QR code from the central QR code switching system (3), e) demanding by the central QR code switching system (3)of detail information related to short QR code from the card accepting entity (1), f) displaying of detail information coming from the card accepting entity (1) to the central QR code switching system (3) and from the central QR code switching system (3) to the mobile service providing entity (6) on the mobile application and approval by the user, g) sending of approved detail information from the mobile service providing entity (6) to the central QR code switching system (3) and encrypting of detail information by means of the card issuing entity key, wherein this key is between the mobile service providing entity (6) and the central QR code switching system (3), h) switching of encrypted detail information by means of the central QR code switching system (3) to the card issuing entity (4), i) transmission of all information by the card issuing entity (4) to the central QR code switching system (3) by adding information like electronic commerce indicator (ECI), client verification method (CVM) to the coming detail information, j) transmission of all information by the central QR code switching system (3) to the card accepting entity (1), k) verification of short QR code information included in coming information and switching of the transaction to the switching system by the card accepting entity (1), and l) notification of the response coming from the switching system to the terminal and ensuring the issuance of a receipt and completing of the transaction by the card accepting entity (1).
PCT/TR2023/051179 2023-10-20 2023-10-20 The infrastructure of short qr code central switching system for payments Pending WO2025085001A1 (en)

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Citations (3)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US20110251910A1 (en) * 2010-04-13 2011-10-13 James Dimmick Mobile Phone as a Switch
US20150294293A1 (en) * 2012-02-03 2015-10-15 Seamless Distribution Ab Mobile payment method and a system therefore
WO2021072406A1 (en) * 2019-10-10 2021-04-15 Zunify, Inc. Method and apparatus for a payment network

Patent Citations (3)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US20110251910A1 (en) * 2010-04-13 2011-10-13 James Dimmick Mobile Phone as a Switch
US20150294293A1 (en) * 2012-02-03 2015-10-15 Seamless Distribution Ab Mobile payment method and a system therefore
WO2021072406A1 (en) * 2019-10-10 2021-04-15 Zunify, Inc. Method and apparatus for a payment network

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