US20140040131A1

US20140040131A1 - Matching refunds to payment instruments employed in a proxy card transaction

Info

Publication number: US20140040131A1
Application number: US13/759,003
Authority: US
Inventors: Mark William Andrews; Michael Blandina; Aaron Tay; Christopher Michael Petersen
Original assignee: Google LLC
Current assignee: Google LLC
Priority date: 2012-07-31
Filing date: 2013-02-04
Publication date: 2014-02-06
Also published as: US8972298B2; EP2880610A4; WO2014022383A1; US10127533B2; US8676709B2; US10949819B2; US20140040125A1; US20140040126A1; US20140040130A1; US20190057364A1; CN104662571A; CN104603811A; EP2880611A1; CN104662571B; EP2880610A1; CN104603811B; EP2880611A4; WO2014022381A1; US20140149292A1

Abstract

Matching refunds to the appropriate payment instrument employed in a proxy card transaction comprises receiving a first payment authorization request for a transaction between a merchant and a user, the payment authorization request comprising an identification of an account of the user and an identifier for the transaction, the user account having associated therewith a plurality of payment instruments available for conducting payment transactions; determining a particular payment instrument with which to conduct the transaction; associating the transaction identifier with the particular payment instruments utilized in the transaction; receiving a first refund instruction to refund all or a portion of a payment amount of the transaction, the first refund instruction comprising the transaction identifier; determining the particular payment instrument associated with the transaction identifier provided in the first refund instruction; and initiating the refund to the particular payment instrument determined to be associated with the transaction identifier.

Description

CROSS-REFERENCE TO RELATED APPLICATIONS

This patent application claims priority to U.S. Provisional Patent Application No. 61/678,089, filed Jul. 31, 2012 and entitled “Proxy Card System.” The entire disclosure of the above-identified priority application is hereby fully incorporated herein by reference.

TECHNICAL FIELD

The present disclosure relates generally to proxy card transactions, and more particularly to matching refunds to the appropriate payment instrument employed in a proxy card transaction.

BACKGROUND

In a conventional merchant-consumer financial transaction, the merchant's point of sale terminal or online payment process engine submits a payment request to an acquirer for payment for the transaction. The acquirer then submits the request to authorize the transaction to an issuer through a card network. If funds are available, the issuer sends an authorization code to the acquirer through the card network, and the acquirer notifies the merchant of the approval for the payment transaction. The payment process involves a single payment request generated and submitted by the merchant.
Conventional merchant-consumer financial transactions also have involved payment via a consumer's financial account, such as a debit card, credit card, or stored value card. The consumer card typically accesses only one type of account, which is maintained by only one issuer. For instance, an “issuer1” credit card accesses only the consumer's financial account from “issuer1,” and payment is approved/denied by a single issuer (“issuer1”). Approval or denial of the transaction is dependent upon rules set by the particular issuer, for example, credit limits and geographical limitations. Notification of a violation of these rules results in a declined transaction, and the consumer must contact the issuer to alter the rules or to address a declined transaction.
In a conventional payment instrument transaction, the merchant supplies the transaction identification (“ID”) to a payment instrument system. The payment instrument system can use the transaction ID to record the transaction for later access. For example, the payment instrument system can use the transaction ID to identify the transaction for a refund or a chargeback.
In a conventional payment instrument system, a refund may be initiated by a merchant with or without the request of the user. The merchant may provide a refund authorization including the transaction ID to the payment instrument system to refund the account of the user for all or a part of the transaction amount from the original transaction. The payment instrument system identifies the user account associated with the transaction ID and issues the refund to the corresponding user account.
In a conventional payment instrument system, a chargeback may be initiated by the payment instrument system. For example, a user may indicate to a payment instrument system that a charge was in error and request a chargeback to the merchant for a particular transaction. The payment instrument system can identify the transaction ID associated with the particular transaction, identify the merchant associated with the particular transaction, and provide the chargeback and the transaction ID to the merchant to initiate a refund.

SUMMARY

One aspect of the example embodiments described herein provides a computer-implemented method to match refunds to the appropriate payment instrument employed in a proxy card transaction. A payment system employs a server configured for receiving, using one or more computing devices, a first payment authorization request for a transaction between a merchant and a user, the payment authorization request comprising an identification of an account of the user and an identifier for the transaction, the user account having associated therewith a plurality of payment instruments available for conducting payment transactions; determining a particular payment instrument of the plurality of payment instruments with which to conduct the transaction; associating the transaction identifier with the particular one of the payment instruments utilized in the transaction; communicating a second payment authorization request to a computing system associated with an issuer of the particular payment instrument, requesting authorization to fund the transaction using the particular payment instrument; receiving a first payment authorization from the computing system associated with the issuer of the particular payment instrument, authorizing funding of the transaction using the particular payment instrument; communicating a second payment authorization authorizing funding of the first payment authorization request based at least in part on the first payment authorization; receiving a first refund instruction to refund all or a portion of a payment amount of the transaction, the first refund instruction comprising the transaction identifier; determining the particular payment instrument associated with the transaction identifier provided in the first refund instruction; and initiating the refund to the particular payment instrument determined to be associated with the transaction identifier.
Another aspect of the example embodiments described herein provides a computer program product that is installed on a server to match refunds and chargebacks to the appropriate payment instrument employed in a proxy card transaction. The computer program product includes a non-transitory computer-readable storage device having computer-readable program instructions stored therein. The computer-readable program instructions include computer program instructions to receive a first payment authorization request for a transaction between a merchant and a user, the payment authorization request comprising an identification of an account of the user and an identifier for the transaction, the user account having associated therewith a plurality of payment instruments available for conducting payment transactions; determine a particular payment instrument of the plurality of payment instruments with which to conduct the transaction; associate the transaction identifier with the particular one of the payment instruments utilized in the transaction; communicate a second payment authorization request to a computing system associated with an issuer of the particular payment instrument, requesting authorization to fund the transaction using the particular payment instrument; receive a first payment authorization from the computing system associated with the issuer of the particular payment instrument, authorizing funding of the transaction using the particular payment instrument; communicate a second payment authorization authorizing funding of the first payment authorization request based at least in part on the first payment authorization; receive a first refund instruction to refund all or a portion of a payment amount of the transaction, the first refund instruction comprising the transaction identifier; determine the particular payment instrument associated with the transaction identifier provided in the first refund instruction; and initiate the refund to the particular payment instrument determined to be associated with the transaction identifier.
These and other aspects, objects, features and advantages of the example embodiments will become apparent to those having ordinary skill in the art upon consideration of the following detailed description of illustrated example embodiments, which include the best mode of carrying out the invention as presently presented.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a block diagram depicting a system for matching refunds to the appropriate payment instrument employed in a proxy card transaction, in accordance with certain example embodiments.

FIG. 2 is a block flow diagram depicting a method to register a user proxy card, in accordance with certain example embodiments.

FIG. 3 is a block flow diagram depicting a method for associating a transaction identification with a payment instrument, in accordance with certain example embodiments.

FIG. 4 is a block flow diagram depicting method for matching refunds to the appropriate payment instrument employed in a proxy card transaction, in accordance with certain example embodiments.

FIG. 5 is a block flow diagram depicting a computing machine and a module, in accordance with certain example embodiments.

DETAILED DESCRIPTION OF THE EXAMPLE EMBODIMENTS

Overview

In one example embodiment, proxy card payment systems enable users to utilize a single card to access multiple financial accounts maintained by multiple issuers. The user receives a proxy card from the proxy card system and either creates a new proxy card system account or associates the proxy card with the user's digital wallet account already maintained by the proxy card system.
The user then associates one or more financial card accounts with the proxy account. For example, the user can associate with the user's proxy card account multiple debit/credit cards maintained by multiple issuers (including the proxy card system operating as an issuer), stored value cards (for example, gift cards, prepaid cards, re-loadable transaction cards, exchange cards, and other forms of non-credit based value cards), loyalty cards or store rewards cards, value added service accounts (for example, coupons, vouchers for prepaid offers, redemption offers, and other forms of offers), peer-to-peer transaction accounts, bank accounts and/or other forms of financial card accounts.
The user applies the proxy card to a transaction with the merchant in a manner similar to the application of any financial card to a transaction. The merchant forwards the payment request to the acquirer, which forwards the payment request to the card network. The card network forwards the proxy card payment request to the proxy card system, which functions as the issuer for the payment request. The proxy card system can read proxy card account information from the payment request and can access the user's account associated with the proxy card. If the proxy card system is the issuer of the financial account, the proxy card system will approve or decline the transaction. If another issuer maintains the financial account to be used for the transaction, the proxy card system will generate and send a new payment request to that issuer via the card network.
The proxy card system will receive the authorization message from the issuer via the card network if the transaction is approved. The proxy card system forwards an authorization to the acquirer through the card network, which forwards the authorization to the merchant. The merchant then approves the transaction.
In conventional transactions, the merchant system transmits a transaction identification (“ID”) to the issuer of the payment instrument utilized by the user when conducting the transaction. The transaction ID can be used by the merchant and the payment instrument issuer to store, locate, retrieve, or otherwise identify the transaction.
As described previously, when conducting a transaction, the merchant system sends an initial transaction payment request to the proxy card issuer. The initial proxy card payment request contains the transaction ID. However, a second payment request is created by the proxy card system and forwarded to the payment instrument system that issued the payment instrument designated by the user as the backing instrument.
In a conventional proxy card payment system, the backing instrument used for one transaction may be different than the backing instrument used for another transaction. Additionally, the current rules for which payment instrument to use for a proxy card transaction may differ from the payment instrument rules used at the time of the transaction for which a refund is desired. When the conventional proxy card payment system receives a refund request from a merchant, the proxy card system is unable to direct a refund to the appropriate payment instrument, even if the proxy card payment system recorded the transaction ID with the proxy card account.
At a time after the transaction, a refund authorization can be issued by the merchant system to the proxy card system. However, the payment instrument that was designated by the user to be the backing instrument for transactions may have changed. The user may have instructed the proxy card system to change the default backing instrument. The rules can be configured to allow multiple payment instruments to be the backing instrument depending on the transaction details, merchant details, timing of the transaction, or any other rule established in the proxy card system. The proxy card system may be unable to determine with certainty which payment instrument should receive the refund. Thus, the proxy card system has a need to determine the payment instrument that was employed in the transaction that is receiving the refund. The correct payment instrument must be determined so that the refund can be applied to the appropriate account of the user or transferred to the correct payment instrument system.
In an example embodiment, the proxy card system identifies the transaction ID for new transaction requests that are received from a merchant. When the proxy card system determines from the rules which payment instrument will be used to process the transaction, the proxy card system can associate the transaction ID with the payment instrument. The proxy card system can store the transaction ID in a database of transaction IDs and associate an identification of the payment instrument that is used for the identified transaction. Additionally or alternatively, the proxy card system can associate the transaction ID and the employed payment instrument in a transaction record database of the proxy card system. Additionally or alternatively, the proxy card system can store the transaction ID and the employed payment instrument in an account of the user on the proxy card system. The proxy card system can associate and store the transaction ID and the utilized payment instrument in any manner or location available to the proxy card system that will allow the transaction ID and the utilized payment instrument to be retrieved at the time of a refund or any other suitable time.
In an example embodiment, at the time of receiving a refund authorization, the proxy card system cross-references the transaction ID received in the refund authorization with the transaction IDs saved in a database. Once the proxy card system identifies the original transaction, it can determine the correct payment instrument used to process the original proxy card transaction. The proxy card system transmits a second refund authorization so that the refund is credited directly to the payment instrument the user had selected at the time of the original proxy card purchase. In an example embodiment, the user is informed of the refund success once the refund is processed successfully by the proxy card system.
In an alternate embodiment, the proxy card system retains the refund in the user account. The proxy card system can associate the refund with the payment instrument used in the original transaction and apply the refund to future transactions using the payment instrument as the backing instrument in a proxy card purchase. Alternatively, the proxy card system 140 can use the retained refund for any purchase involving the proxy card account of the user.
In an example embodiment, User A purchased merchandise two weeks ago using her proxy card. Her selected payment card was her payment card issued by Bank X. The merchant transmits the proxy card payment request, which includes the transaction ID for the purchase, to the proxy card system. The proxy card system receives the proxy card payment request and the transaction ID. User A brings the merchandise back to the merchant, and the merchant refunds the purchase price back to the proxy card she used to make the purchase. The refund is forwarded to the proxy card system from the merchant system with the transaction ID for the original proxy card transaction. The proxy card system correlates the transaction ID with User A's payment card issued by Bank X, by retrieving the original proxy card transaction information from User A's account associated with the transaction ID and determining that User A's payment card issued by Bank X was the card selected at the time the purchase was made. The proxy card system passes the full refund to User A's payment card issued by Bank X. In an example embodiment, the proxy card system can pass the refund to User A's payment card issued by Bank X regardless of whether the payment card is active, deactivated, deleted, disabled, or partially disabled from User A's wallet account.
In an alternative example embodiment, the proxy card system can receive a chargeback request from the original backing payment instrument system, and push the chargeback request to the original merchant of record. That is, a user can report a transaction as fraudulent, containing incorrect pricing, or for any suitable reason request that a chargeback be issued. If the chargeback is issued to the proxy card system, the proxy card system can determine the merchant, transaction ID, and payment instrument involved in the transaction and forward the chargeback to the merchant.

Example System Architectures

Turning now to the drawings, in which like numerals represent like (but not necessarily identical) elements throughout the figures, example embodiments are described in detail.
FIG. 1 is a block diagram depicting a system for transmitting merchant category codes to a payment instrument, in accordance with certain example embodiments. As depicted in FIG. 1, the system 100 includes network devices 110, 130, 140, and 170 that are configured to communicate with one another via one or more networks 105.
Each network 105 includes a wired or wireless telecommunication means by which network devices (including devices 110, 130, 140 and 170) can exchange data. For example, each network 105 can include a local area network (“LAN”), a wide area network (“WAN”), an intranet, an Internet, a mobile telephone network, or any combination thereof. Throughout the discussion of example embodiments, it should be understood that the terms “data” and “information” are used interchangeably herein to refer to text, images, audio, video, or any other form of information that can exist in a computer-based environment.
Each network device 110, 130, 140 and 170 includes a device having a communication module capable of transmitting and receiving data over the network 105. For example, each network device 110, 130, 140 and 170 can include a server, desktop computer, laptop computer, tablet computer, a television with one or more processors embedded therein and/or coupled thereto, smart phone, handheld computer, personal digital assistant (“PDA”), or any other wired or wireless, processor-driven device. In the example embodiment depicted in FIG. 1, the network devices 110, 130, 140 and 170 are operated by end-users or consumers, merchant operators, proxy card system operators, and payment instrument system operators, respectively.
The user 101 can use the communication application 112, such as a web browser application or a stand-alone application, to view, download, upload, or otherwise access documents or web pages via a distributed network 105. The network 105 includes a wired or wireless telecommunication system or device by which network devices (including devices 110, 130, 140 and 170) can exchange data. For example, the network 105 can include a local area network (“LAN”), a wide area network (“WAN”), an intranet, an Internet, storage area network (SAN), personal area network (PAN), a metropolitan area network (MAN), a wireless local area network (WLAN), a virtual private network (VPN), a cellular or other mobile communication network, Bluetooth, NFC, or any combination thereof or any other appropriate architecture or system that facilitates the communication of signals, data, and/or messages.
The communication application 112 can interact with web servers or other computing devices connected to the network 105, including the point of sale terminal 134 of the merchant system 130, the merchant server 135 of the merchant system 130, and the web server 141 of the proxy card system 140.
The user network device 110 may include a digital wallet application module 111. The digital wallet application module 111 may encompass any application, hardware, software, or process the user device 110 may employ to assist the user 101 in completing a purchase. The digital wallet application module 111 can interact with the communication application 112 or can be embodied as a companion application of the communication application 112. As a companion application, the digital wallet application module 111 executes within the communication application 112. That is, the digital wallet application module 111 may be an application program embedded in the communication application 112.
The user device 110 can include a proxy card application 115. The proxy card application 115 can interact with the communication application 112 or be embodied as a companion application of the communication application 112 and execute within the communication application 112. The proxy card application 115 may further be embodied as a companion application of the digital wallet application module 111 and execute within the digital wallet application module 111. The proxy card application 115 may employ a software interface for configuration that may open in the digital wallet application module 111 or may open in the web browser application 112. Alternatively, the proxy card application 115 may be execute on the user device 110 independent of the digital wallet application module 111 and the communication application 112.
The proxy card application 115 is operable to allow a user 101 to configure a proxy card account on the user device 110 and the proxy card system 140. The proxy card application 115 can allow the user 101 to set rules, confirm transactions, select preferred cards for a transaction, receive notice of a card selection, and provide other suitable services.
The user device 110 also includes a data storage unit 113 accessible by the digital wallet application module 111, the proxy card application 115, and the communication application 112. The example data storage unit 113 can include one or more tangible computer-readable storage devices. The data storage unit 113 can be stored on the user device 110 or can be logically coupled to the user device 110. For example, the data storage unit 113 can include on-board flash memory and/or one or more removable memory cards or removable flash memory.
In an example embodiment, the proxy card looks and/or functions in the same manner as a standard credit or debit card. For example, the proxy card may have the user's 101 name and/or account number listed on the front of the card. An example proxy card can include a magnetic stripe encoding the proxy card system 140 account information of the user 101. In an example embodiment, the account information encoded in the magnetic stripe routes payment requests to the proxy card system 140 for processing.
In an alternative example embodiment, the proxy card is not a physical card. Instead, the proxy card is an account accessible by a wireless tap of a user device 110, an account identification number, a bar code or QR code, a token, or other form of account identification or access, which may be entered manually into the term POS terminal 134 or which may be captured by the POS terminal 134. The proxy card as discussed throughout the specification refers to a physical card as well as the proxy account.
The user 101 may use the user device 110 or other network device to register the proxy card and/or access the proxy card system account of the user 101. The user device 110 may comprise appropriate technology that includes or is coupled to a web server (for example, Google Chrome, Microsoft Internet Explorer, Netscape, Safari, Firefox, or other suitable application for interacting with web page files).
The proxy card system 140 includes a data storage unit 147 accessible by the web server 141. The example data storage unit 147 can include one or more tangible computer-readable storage devices.
The user 101 can use a web server 141 on the proxy card system 140 to view, register, download, upload, or otherwise access the proxy card system 140 via a website (not illustrated) and a communication network 105). The user 101 associates one or more registered financial card accounts, including bank account debit cards, credit cards, gift cards, loyalty cards, coupons, offers, prepaid offers, store rewards cards, or other type of financial account that can be used to make a purchase or redeem value-added services with a payment account of the user 101. The proxy card system 140 also may function as the issuer for the associated financial payment instrument. The user's 101 registration information is saved in the proxy card system's 140 data storage unit 147 and is accessible the by web server 141. The user 101 also may use the web server 141 to define payment rules.
The merchant system 130 may use a web server 135 to view, download, upload, create offers, sell products online, or otherwise access the proxy card system 140 via a website 136 and a communication network 105. The merchant system 130 represents an entity that offers products for the user 101 to purchase or use. The merchant system 130 includes a point of sale (“POS”) terminal 134. The POS terminal 134 may be operated by a salesperson that enters the purchase data into the POS terminal 134 to complete the purchase transaction. The merchant system 130 may be a physical location or an online merchant.
The user 101 may request a purchase from the merchant system 130. In an example embodiment, the purchase is initiated by a wireless “tap” of the mobile device 110 with the POS terminal 134. In an alternative example embodiment, the purchase is initiated when the user 101 enters an account identification number at the POS terminal 134 or in the mobile device 110. In another alternative example embodiment, the purchase is initiated online with the merchant server 135. The purchase may be initiated via the merchant website 136. In yet another alternative example embodiment, the purchase is initiated by use of a permanent/temporary virtual/physical token, QR code, bar code, or other suitable machine-readable medium captured by the terminal reader 131. The merchant's POS terminal 134 interacts with an acquirer (for example Chase PaymentTech, or other third party payment processing companies), the card network (for example VISA, MasterCard, American Express, Discover or other card processing networks), the proxy card system 140, and the issuer (for example Citibank, CapitalOne, Bank of America, and other financial institutions to authorize payment).
The payment instrument system 170 represents any the system that issues or maintains a financial account that the can be associated with the proxy card system 140. Examples of the financial accounts that can be associated include, but are not limited to, debit cards, credit cards, stored value cards, loyalty/rewards cards, bank accounts, peer-to-peer transaction accounts, stored value accounts, and coupons (including purchased offers and other offers). The payment instrument system 170 can communicate with the proxy card system 140, the merchant system 130, and the user device 110 as needed to configure accounts, associate payment instruments, supply instrument art, or perform any other suitable functions.
The payment instrument system 170 includes a data storage unit 177 accessible by the web server 171. The example data storage unit 177 can include one or more tangible computer-readable storage devices.
The user 101 and others can use a web server 171 on the payment instrument system 170 to view, register, download, upload, or otherwise access the payment instrument system 170 via a website (not illustrated) and a communication network 105).

Example Processes

The components of the example operating environment 100 are described hereinafter with reference to the example methods illustrated in FIG. 2.
FIG. 2 is a block flow diagram depicting a method 200 to register a user proxy card, in accordance with certain example embodiments.
With reference to FIGS. 1 and 2, in block 205, the proxy card system 140 issues a proxy card account to the user 101. In an example embodiment, the user 101 requests a proxy card using a web server 141, and the proxy card is mailed to the user 101. The user 101 may be issued an account number to be used for transactions via the Internet before or after a physical card is received. In an alternative example embodiment, the proxy card system 140 mails an inactivated proxy card to the user 101. The proxy card is then activated by the user 101 before use. In an alternative example embodiment, a physical proxy card is not issued. The proxy card account information can be stored in the user device 110 and is used to make a payment via a NFC, Bluetooth, Wi-Fi, or other form of wireless tap of the user device 110 with the point of sale (“POS”) terminal 134. In an alternative example embodiment, the purchase is initiated when the user 101 enters an account identification number at the POS terminal 134 or in the user device 110. The account identification number may be the proxy card account number or a different number that links the payment transaction to the proxy card account. In yet another alternative example embodiment, a purchase is initiated by use of a permanent/temporary virtual/physical token QR code, bar code, or other suitable machine-readable medium that is read by the POS terminal 134. In these cases, the POS terminal 134 may comprise a scanner, camera, or other reading device that captures the proxy account information, such as a bar code or QR reader or other suitable reading device. The proxy account information may be printed in paper or other form.
In block 210, the user 101 creates a new proxy card system 140 account or links the proxy card to an existing account on the proxy card system 140. The proxy card system 140 also may create or update an account on a proxy card application 115 on the user device 110 or on a digital wallet application module 111 on the user device 110.
In block 215, the user 101 activates the proxy card and associates one or more financial instrument accounts (for example, debit cards, credit cards, gift cards/stored value cards, loyalty cards/reward cards, peer-to-peer payment accounts, coupons, prepaid or other offers, and other accounts used to make a purchase or redeem value added services) with the proxy card account. In an example embodiment, the user 101 associates multiple financial instrument accounts with the proxy card account. The user 101 may perform this block by inputting identifying information for each financial payment instrument account.
In an example embodiment, one or more financial instrument account(s) are maintained by the proxy card system 140 and other payment instrument systems 170. In an alternative example embodiment, the proxy card system 140 maintains one or more of the financial instrument accounts and acts as the issuer for that financial instrument account. In another example embodiment, the financial instrument accounts are maintained by more than one payment instrument systems 170, including the proxy card system 140.
In block 220, the user 101 establishes rules for selecting a payment instrument in a transaction. The user 101 can use that proxy card application 115 on the user device 110, a website on the web server 141 of the proxy card system 140, or any suitable hardware or software applications to establish rules. The user 101 can select from a selection of rules supplied by the proxy card system 140 or the user 101 can input new rules.
Additionally or alternatively, the proxy card system 140 can establish rules for selecting a payment instrument in a transaction and make recommendations to the user 101. For example, the proxy card system 140 can establish default payment instruments, make recommendations based on the rules of other users, make a recommendation based on payment instrument benefits or fees, or establish any other suitable rule or recommendation.
In an example of a rule that can be established by the proxy card system 140 or by the user 101, a particular payment instrument may be designated as the payment instrument to be selected for an identified merchant category codes (“MCC”) or a group of codes. In another example, a payment instrument may be designated as the payment instrument to be selected for an identified merchant. In another example, proxy card system 140 may be directed to select the payment instrument with the lowest balance or the most available credit. Any other suitable rule can be established to select a payment instrument for a proposed transaction.
In block 225, the proxy card system 140 sends the user proxy card account identification information to the card network (not shown). The POS terminal 134 can identify the account number as belonging to a proxy card account on the proxy card system 140. Alternatively, the identification of the proxy card and the proxy card system 140 can occur at any place in the system of merchant system 130, acquirer, card network, or payment instrument system 170.
In block 230, the card network stores the proxy card account identification information. In an alternative example embodiment, the account number identifies the proxy card system 140 as the issuer and payments are automatically routed from the card network to the proxy card system 140 for approval.
In alternate embodiments of the invention, the proxy card account can be configured through any other process. For example, the proxy card may be hidden from the user 101. The user 101 may configure an account with the proxy card system 140 and have a proxy card automatically installed on the account for use with the user device 110 or other device. The account may be linked to a financial account or other account of the user 101. The user 101 may choose one financial account to be the active account and the selected financial account can become the backing instrument for the proxy card.
In another example, the method 200 can perform block 210 after blocks 220 and 230 are performed. That is, the user 101 can create a proxy card system 140 account and associate one or more financial accounts with the proxy card system 140 account. The proxy card system 140 may then issue a proxy card and associate the proxy card with the account of the user 101.
FIG. 3 is a block flow diagram depicting a method 300 for associating transaction IDs with a payment instrument, in accordance with certain example embodiments.
In block 305, a proxy card purchase request is received by the proxy card system 140. The proxy card is used to conduct a transaction with a merchant system 130. The merchant system 130 can be at a physical merchant location or an online merchant location. The user 101 can select one or more products for purchase and initiate a transaction with the proxy card. As previously described, the initiation can be via a physical proxy card, contactless transaction with a user device, or an online transaction.
In block 310, the proxy card system 140 receives the transaction ID in the transaction details in the transaction request from the merchant system 130. Additionally or alternatively, the transaction ID may be transmitted separate from the transaction request. Additionally or alternatively, the transaction ID may be obtained from another source other than the merchant system 130, such as the user device 110, a third party server, or other suitable entity.
In block 315, the proxy card system 140 identifies the payment instrument to use based on the MCC or other rules. Any rule established by the user or the proxy card system 140 can dictate the payment instrument to be used. Alternatively, the user 101 selects the payment instrument for use in the transaction. The user 101 can make a selection by actuating a physical or virtual button, by a voice command, by tapping the appropriate representation of the payment instrument, or by any other suitable manner of selecting an instrument. After a selection is made by the user 101, the selected payment instrument can be displayed on the user device 110.
In an alternate example embodiment, the proxy card system 115 can conduct the transaction without the selection of a payment instrument. At a time after the transaction is conducted, or at any time during the transaction, the payment instrument can be selected. The selection can be based on a set of rules as described above or can be made by the user 101 of the proxy card system 140.
In block 320, the proxy card system 140 creates a second payment request and forwards the request to the payment instrument system 170 that issued the payment instrument designated as the backing instrument for the transaction.
In block 325, the proxy card system 140 stores the transaction ID in a database of transaction IDs and associates an identification of the payment instrument that is used for the identified transaction. Additionally or alternatively, the proxy card system 140 can associate the transaction ID and the employed payment instrument in a transaction record database of the proxy card system 140. Additionally or alternatively, the proxy card system 140 can store the transaction ID and the employed payment instrument in an account of the user 101 on the proxy card system 140. The proxy card system 140 can associate and store the transaction ID and the utilized payment instrument in any manner or location available to the proxy card system 140 that will allow the transaction ID and the utilized payment to be retrieved at the time of a refund or any other suitable time.
In block 330, the payment instrument system 170 authorizes the transaction. The payment instrument system 170 can employ the same authorization methodology that is employed on a standard transaction using the payment instrument. For example, if the payment instrument is a credit card, the payment instrument system can determine if the credit card has available credit sufficient to fund the transaction, determine if the transaction appears to be non-fraudulent, and follow any other suitable steps for authorization. In another example, a stored value card can determine if sufficient funds are stored on the card to fund the transaction. Any other suitable authorization process can be employed. The payment instrument system 170 can transmit the authorization to the proxy card system 140.
In block 335, after receiving the authorization from the payment instrument system 170, the proxy card system 140 can authorize the transaction and transmit the authorization to the merchant system 130 through the card network system or through any other suitable system. If the payment instrument system 170 does not authorize the transaction, the proxy card system 140 can transmit a notice to the merchant system 130 that the transaction is declined. In an alternate embodiment, the proxy card system 140 can attempt the transaction with an alternate payment instrument.
In block 340, the transaction is completed at the merchant system 130. For example, after receiving the authorization from the proxy card system 140, the merchant system 130 can deliver the product or service to the user 101, provide a receipt to the user 101, receive a signature of the user 101, or perform any other suitable tasks to complete the transaction.
FIG. 4 is a block flow diagram depicting a method 400 for matching refunds to the appropriate payment instrument employed in a proxy card transaction, in accordance with certain example embodiments.
In block 405, a user 101 presents a real or virtual proxy card to a merchant system 130 to obtain a refund for a previous transaction. The presentation may be in person at a merchant system 130 location. Additionally or alternatively, the presentation may be made on an Internet connection with the merchant system 130 over the network 105, over a telephone call, or in any other suitable manner. The user 101 can request the refund for a defective product, an erroneous or fraudulent charge, poor service, or any suitable reason for a refund.
In block 410, the merchant system 130 issues a refund authorization and transmits the authorization to the proxy card system 140. The proxy card system 140 receives the refund authorization and the transaction ID. The refund authorization can be transmitted to the proxy card system 140 via an Internet connection over the network 105, via text, via email, or any suitable communication method. The authorization can be text authorization, a code based on a preconfigured refund system, or any suitable authorization format available to the merchant system 130 and the proxy card system 140. If the refund authorization does not contain a transaction ID, the proxy card system 140 can request the transaction ID from the merchant system 130.
In block 415, the proxy card system 140 identifies the transaction ID for use in identifying the record of the transaction and the associated payment instrument.
In block 420, the proxy card system 140 identifies the payment instrument associated with the transaction ID. The proxy card system 140 can cross-reference databases containing the stored transaction IDs and the payment instruments. The proxy card system 140 can locate the payment instrument in a database that has the transaction IDs and the associated payment instruments. The proxy card system 140 can determine the payment instrument by searching any suitable system employed to match the transaction IDs and the associated payment instruments.
In block 425, the proxy card system 140 creates a second refund authorization and transmits the authorization to the payment instrument system 170 that issued the payment instrument associated with the transaction. The second refund authorization can be transmitted to the payment instrument system 170 via an Internet connection over the network 105, via text, via email, or any suitable communication method. The authorization can be text authorization, a code based on a preconfigured refund system, or any suitable authorization format available to the proxy card system 140 and the payment instrument system 170.
In block 430, the payment instrument system 170 accepts the refund transaction. The acceptance may be automatic or approved by an operator of the payment instrument system 170. Additionally or alternatively, the acceptance may be made by an automated process or other suitable process.
In block 435, the user 101 receives the confirmation of the completion of the refund from the payment instrument system 170. In an alternate embodiment the payment instrument system 170 can inform the proxy card system 140 of the refund completion and request that the proxy card system 140 inform the user 101. The user 101 can receive a notice of the refund on a website of the proxy card system 140, a website of the payment instrument system 170, via a text or email, or through any suitable communication method.
In an alternate embodiment, the refund may be prompted by a chargeback. The chargeback may be initiated by the proxy card system 140, the payment instrument system 170, or another suitable entity. The chargeback may be due to a fraudulent charge, an erroneous charge, or any other suitable reason. The identification of the transaction ID and the associated payment instrument may follow a similar process as a standard refund authorization.
In an alternate embodiment, the proxy card system 140 can pass the refund to payment instrument system 170 regardless of whether the payment instrument is active, deactivated, deleted, disabled, or partially disabled from the proxy card account of the user 101.
In an alternate embodiment, the proxy card system 140 retains the refund in the user account. The proxy card system 140 can associate the refund with the payment instrument used in the original transaction and apply the refund to future transactions using the payment instrument as the backing instrument in a proxy card purchase. Alternatively, the proxy card system 140 can use the retained refund for any purchase involving the proxy card account of the user.

Example Systems

FIG. 5 depicts a computing machine 2000 and a module 2050 in accordance with certain example embodiments. The computing machine 2000 may correspond to any of the various computers, servers, mobile devices, embedded systems, or computing systems presented herein. The module 2050 may comprise one or more hardware or software elements configured to facilitate the computing machine 2000 in performing the various methods and processing functions presented herein. The computing machine 2000 may include various internal or attached components such as a processor 2010, system bus 2020, system memory 2030, storage media 2040, input/output interface 2060, and a network interface 2070 for communicating with a network 2080.
The computing machine 2000 may be implemented as a conventional computer system, an embedded controller, a laptop, a server, a mobile device, a smartphone, a set-top box, a kiosk, a vehicular information system, one more processors associated with a television, a customized machine, any other hardware platform, or any combination or multiplicity thereof. The computing machine 2000 may be a distributed system configured to function using multiple computing machines interconnected via a data network or bus system.
The processor 2010 may be configured to execute code or instructions to perform the operations and functionality described herein, manage request flow and address mappings, and to perform calculations and generate commands. The processor 2010 may be configured to monitor and control the operation of the components in the computing machine 2000. The processor 2010 may be a general purpose processor, a processor core, a multiprocessor, a reconfigurable processor, a microcontroller, a digital signal processor (“DSP”), an application specific integrated circuit (“ASIC”), a graphics processing unit (“GPU”), a field programmable gate array (“FPGA”), a programmable logic device (“PLD”), a controller, a state machine, gated logic, discrete hardware components, any other processing unit, or any combination or multiplicity thereof. The processor 2010 may be a single processing unit, multiple processing units, a single processing core, multiple processing cores, special purpose processing cores, co-processors, or any combination thereof. According to certain embodiments, the processor 2010 along with other components of the computing machine 2000 may be a virtualized computing machine executing within one or more other computing machines.
The system memory 2030 may include non-volatile memories such as read-only memory (“ROM”), programmable read-only memory (“PROM”), erasable programmable read-only memory (“EPROM”), flash memory, or any other device capable of storing program instructions or data with or without applied power. The system memory 2030 may also include volatile memories such as random access memory (“RAM”), static random access memory (“SRAM”), dynamic random access memory (“DRAM”), synchronous dynamic random access memory (“SDRAM”). Other types of RAM also may be used to implement the system memory 2030. The system memory 2030 may be implemented using a single memory module or multiple memory modules. While the system memory 2030 is depicted as being part of the computing machine 2000, one skilled in the art will recognize that the system memory 2030 may be separate from the computing machine 2000 without departing from the scope of the subject technology. It should also be appreciated that the system memory 2030 may include, or operate in conjunction with, a non-volatile storage device such as the storage media 2040.
The storage media 2040 may include a hard disk, a floppy disk, a compact disc read only memory (“CD-ROM”), a digital versatile disc (“DVD”), a Blu-ray disc, a magnetic tape, a flash memory, other non-volatile memory device, a solid sate drive (“SSD”), any magnetic storage device, any optical storage device, any electrical storage device, any semiconductor storage device, any physical-based storage device, any other data storage device, or any combination or multiplicity thereof. The storage media 2040 may store one or more operating systems, application programs and program modules such as module 2050, data, or any other information. The storage media 2040 may be part of, or connected to, the computing machine 2000. The storage media 2040 may also be part of one or more other computing machines that are in communication with the computing machine 2000 such as servers, database servers, cloud storage, network attached storage, and so forth.
The module 2050 may comprise one or more hardware or software elements configured to facilitate the computing machine 2000 with performing the various methods and processing functions presented herein. The module 2050 may include one or more sequences of instructions stored as software or firmware in association with the system memory 2030, the storage media 2040, or both. The storage media 2040 may therefore represent examples of machine or computer readable media on which instructions or code may be stored for execution by the processor 2010. Machine or computer readable media may generally refer to any medium or media used to provide instructions to the processor 2010. Such machine or computer readable media associated with the module 2050 may comprise a computer software product. It should be appreciated that a computer software product comprising the module 2050 may also be associated with one or more processes or methods for delivering the module 2050 to the computing machine 2000 via the network 2080, any signal-bearing medium, or any other communication or delivery technology. The module 2050 may also comprise hardware circuits or information for configuring hardware circuits such as microcode or configuration information for an FPGA or other PLD.
The input/output (“I/O”) interface 2060 may be configured to couple to one or more external devices, to receive data from the one or more external devices, and to send data to the one or more external devices. Such external devices along with the various internal devices may also be known as peripheral devices. The I/O interface 2060 may include both electrical and physical connections for operably coupling the various peripheral devices to the computing machine 2000 or the processor 2010. The I/O interface 2060 may be configured to communicate data, addresses, and control signals between the peripheral devices, the computing machine 2000, or the processor 2010. The I/O interface 2060 may be configured to implement any standard interface, such as small computer system interface (“SCSI”), serial-attached SCSI (“SAS”), fiber channel, peripheral component interconnect (“PCI”), PCI express (PCIe), serial bus, parallel bus, advanced technology attached (“ATA”), serial ATA (“SATA”), universal serial bus (“USB”), Thunderbolt, FireWire, various video buses, and the like. The I/O interface 2060 may be configured to implement only one interface or bus technology. Alternatively, the I/O interface 2060 may be configured to implement multiple interfaces or bus technologies. The I/O interface 2060 may be configured as part of, all of, or to operate in conjunction with, the system bus 2020. The I/O interface 2060 may include one or more buffers for buffering transmissions between one or more external devices, internal devices, the computing machine 2000, or the processor 2010.
The I/O interface 2060 may couple the computing machine 2000 to various input devices including mice, touch-screens, scanners, biometric readers, electronic digitizers, sensors, receivers, touchpads, trackballs, cameras, microphones, keyboards, any other pointing devices, or any combinations thereof. The I/O interface 2060 may couple the computing machine 2000 to various output devices including video displays, speakers, printers, projectors, tactile feedback devices, automation control, robotic components, actuators, motors, fans, solenoids, valves, pumps, transmitters, signal emitters, lights, and so forth.
The computing machine 2000 may operate in a networked environment using logical connections through the network interface 2070 to one or more other systems or computing machines across the network 2080. The network 2080 may include wide area networks (WAN), local area networks (LAN), intranets, the Internet, wireless access networks, wired networks, mobile networks, telephone networks, optical networks, or combinations thereof. The network 2080 may be packet switched, circuit switched, of any topology, and may use any communication protocol. Communication links within the network 2080 may involve various digital or an analog communication media such as fiber optic cables, free-space optics, waveguides, electrical conductors, wireless links, antennas, radio-frequency communications, and so forth.
The processor 2010 may be connected to the other elements of the computing machine 2000 or the various peripherals discussed herein through the system bus 2020. It should be appreciated that the system bus 2020 may be within the processor 2010, outside the processor 2010, or both. According to some embodiments, any of the processor 2010, the other elements of the computing machine 2000, or the various peripherals discussed herein may be integrated into a single device such as a system on chip (“SOC”), system on package (“SOP”), or ASIC device.
In situations in which the systems discussed here collect personal information about users, or may make use of personal information, the users may be provided with a opportunity to control whether programs or features collect user information (e.g., information about a user's social network, social actions or activities, profession, a user's preferences, or a user's current location), or to control whether and/or how to receive content from the content server that may be more relevant to the user. In addition, certain data may be treated in one or more ways before it is stored or used, so that personally identifiable information is removed. For example, a user's identity may be treated so that no personally identifiable information can be determined for the user, or a user's geographic location may be generalized where location information is obtained (such as to a city, ZIP code, or state level), so that a particular location of a user cannot be determined. Thus, the user may have control over how information is collected about the user and used by a content server.
Embodiments may comprise a computer program that embodies the functions described and illustrated herein, wherein the computer program is implemented in a computer system that comprises instructions stored in a machine-readable medium and a processor that executes the instructions. However, it should be apparent that there could be many different ways of implementing embodiments in computer programming, and the embodiments should not be construed as limited to any one set of computer program instructions. Further, a skilled programmer would be able to write such a computer program to implement an embodiment of the disclosed embodiments based on the appended flow charts and associated description in the application text. Therefore, disclosure of a particular set of program code instructions is not considered necessary for an adequate understanding of how to make and use embodiments. Further, those skilled in the art will appreciate that one or more aspects of embodiments described herein may be performed by hardware, software, or a combination thereof, as may be embodied in one or more computing systems. Moreover, any reference to an act being performed by a computer should not be construed as being performed by a single computer as more than one computer may perform the act.
The example embodiments described herein can be used with computer hardware and software that perform the methods and processing functions described previously. The systems, methods, and procedures described herein can be embodied in a programmable computer, computer-executable software, or digital circuitry. The software can be stored on computer-readable media. For example, computer-readable media can include a floppy disk, RAM, ROM, hard disk, removable media, flash memory, memory stick, optical media, magneto-optical media, CD-ROM, etc. Digital circuitry can include integrated circuits, gate arrays, building block logic, field programmable gate arrays (FPGA), etc.
The example systems, methods, and acts described in the embodiments presented previously are illustrative, and, in alternative embodiments, certain acts can be performed in a different order, in parallel with one another, omitted entirely, and/or combined between different example embodiments, and/or certain additional acts can be performed, without departing from the scope and spirit of various embodiments. Accordingly, such alternative embodiments are included in the inventions claimed herein.
Although specific embodiments have been described above in detail, the description is merely for purposes of illustration. It should be appreciated, therefore, that many aspects described above are not intended as required or essential elements unless explicitly stated otherwise. Modifications of, and equivalent components or acts corresponding to, the disclosed aspects of the example embodiments, in addition to those described above, can be made by a person of ordinary skill in the art, having the benefit of the present disclosure, without departing from the spirit and scope of embodiments defined in the following claims, the scope of which is to be accorded the broadest interpretation so as to encompass such modifications and equivalent structures.

Claims

1. A computer-implemented method to match refunds to payment instruments, comprising:

receiving, using one or more computing devices, a first payment authorization request for a transaction between a merchant and a user, the payment authorization request comprising an identification of a user proxy account and an identifier for the transaction, the user proxy account having associated therewith a plurality of payment instruments available for conducting payment transactions;

determining, using the one or more computing devices, a particular payment instrument of the plurality of payment instruments with which to conduct the transaction;

associating, using the one or more computer devices, the transaction identifier with the particular one of the payment instruments utilized in the transaction;

communicating, using the one or more computing devices, a second payment authorization request to a computing system associated with an issuer of the particular payment instrument, requesting authorization to fund the transaction using the particular payment instrument;

receiving, using the one or more computing devices, a first payment authorization from the computing system associated with the issuer of the particular payment instrument, authorizing funding of the transaction using the particular payment instrument;

communicating, using the one or more computing devices, a second payment authorization authorizing funding of the first payment authorization request based at least in part on the first payment authorization;

receiving, using the one or more computing devices, a first refund instruction to refund at least a portion of a payment amount of the transaction, the first refund instruction comprising the transaction identifier;

determining, using the one or more computer devices, the particular payment instrument associated with the transaction identifier provided in the first refund instruction; and

initiating, using the one or more computing devices, the refund to the particular payment instrument that is determined as being associated with the transaction identifier.

2. The computer-implemented method of claim 1, wherein the initiating step comprises communicating, using the one or more computing devices, a second refund instruction to the computing system associated with the issuer of the particular payment instrument to refund or a portion of the payment amount of the transaction.

3. The computer-implemented method of claim 1, wherein the initiating step comprises retaining, using the one or more computing devices, all or a portion of the payment amount of the transaction for credit against a future transaction involving the particular payment instrument.

4. The computer-implemented method of claim 1, further comprising providing, using the one or more computing devices, a notice to the user of the refund.

5. The computer-implemented method of claim 1, wherein the associating step comprises storing the transaction identifier and the associated payment instrument in a database.

6. The computer-implemented method of claim 1, wherein the determining step comprises:

accessing, using the one or more computer devices, the transaction identification in a database of the proxy card system; and

identifying, using the one or more computer devices, the payment instrument associated with the transaction identification.

7. The computer-implemented method of claim 1, wherein the first refund instruction is initiated by a chargeback from the issuer of the particular payment instrument.

8. The computer-implemented method of claim 1, wherein the first refund instruction is initiated by a chargeback from the one or more computing devices.

9. The computer-implemented method of claim 1, wherein the first refund instruction is initiated by the merchant.

10. A computer program product, comprising:

a non-transitory computer-readable storage device having computer-readable program instructions embodied thereon that when executed by a computer perform a method to match refunds to payment accounts, the computer-readable program instructions comprising:

computer program instructions to receive, a first payment authorization request for a transaction between a merchant and a user, the payment authorization request comprising an identification of an account of the user and an identifier for the transaction, the user account having associated therewith a plurality of payment accounts available for conducting payment transactions;

computer program instructions to determine a particular payment account of the plurality of payment accounts with which to conduct the transaction;

computer program instructions to associate the transaction identifier with the particular one of the payment accounts utilized in the transaction;

computer program instructions to communicate a second payment authorization request to a computing system associated with an issuer of the particular payment account, requesting authorization to fund the transaction using the particular payment account;

computer program instructions to receive a first payment authorization from the computing system associated with the issuer of the particular payment account, authorizing funding of the transaction using the particular payment account;

computer program instructions to communicate a second payment authorization authorizing funding of the first payment authorization request based at least in part on the first payment authorization;

computer program instructions to receive a first refund instruction to refund at least a portion of a payment amount of the transaction, the first refund instruction comprising the transaction identifier;

computer program instructions to determine the particular payment account associated with the transaction identifier provided in the first refund instruction; and

computer program instructions to communicate initiate the refund to the particular payment account that is determined as being associated with the transaction identifier.

11. The computer program product of claim 10, wherein initiating the refund comprises communicating, using the one or more computing devices, a second refund instruction to the computing system associated with the issuer of the particular payment account to refund all or a portion of the payment amount of the transaction.

12. The computer program product of claim 10, wherein the initiating the refund comprises retaining all or a portion of the payment amount of the transaction for credit against a future transaction involving the particular payment account.

13. The computer program product of claim 10, the computer-readable program instructions further comprising computer program instructions to provide a notice to the user of the refund.

14. The computer program product of claim 10, wherein the associating the transaction identifier comprises storing the transaction identifier and the associated payment instrument in a database.

15. A system to use a one-time code to match refunds to payment instruments, the system comprising:

a storage device;

a network device; and

a processor communicatively coupled to the storage device and the network device, wherein the processor executes application code instructions that are stored in the storage device and that cause the system to:

receive a first payment authorization request for a transaction between a merchant and a user, the payment authorization request comprising an identification of a user account and an identifier for the transaction, the user account having associated therewith a plurality of payment instruments available for conducting payment transactions;

determine a particular payment instrument of the plurality of payment instruments with which to conduct the transaction;

associate the transaction identifier with the particular one of the payment instruments utilized in the transaction;

receive a first refund instruction to refund at least a portion of a payment amount of the transaction, the first refund instruction comprising the transaction identifier;

determine the particular payment instrument associated with the transaction identifier provided in the first refund instruction; and

initiate the refund to the particular payment instrument that is determined as being associated with the transaction identifier.

16. The system of claim 15, the processor executing further application code instructions that are stored in the storage device and that cause the system to:

communicate a second payment authorization request to a computing system associated with an issuer of the particular payment instrument, requesting authorization to fund the transaction using the particular payment instrument;

receive a first payment authorization from the computing system associated with the issuer of the particular payment instrument, authorizing funding of the transaction using the particular payment instrument;

communicate a second payment authorization authorizing funding of the first payment authorization request based at least in part on the first payment authorization;

17. The system of claim 15, wherein the first refund instruction is initiated by a chargeback from the issuer of the particular payment instrument.

18. The system of claim 15, wherein the first refund instruction is initiated by a chargeback from the one or more computing devices.

19. The system of claim 15, wherein the first refund instruction is initiated by the merchant.

20. The system of claim 15, wherein initiating the refund comprises instructions to communicate a second refund instruction to the computing system associated with the issuer of the particular payment instrument to refund all or a portion of the payment amount of the transaction.