WO2016178200A1

WO2016178200A1 - Improvements to currency selection in dual brand cards

Info

Publication number: WO2016178200A1
Application number: PCT/IB2016/052645
Authority: WO
Inventors: Daniel Lavecky; Ning Fu SCOTT
Original assignee: Pure Commerce Pty Limited
Priority date: 2015-05-07
Filing date: 2016-05-09
Publication date: 2016-11-10

Abstract

The present application discloses a method of performing a payment device transaction between a payment device holder and a merchant having a payment terminal. The payment device includes at least a first credit brand having an associated first payment network, wherein the first credit brand has a billing currency. The method includes the steps of, obtaining a transaction amount of the transaction in a merchant currency, obtaining details of the payment device using the payment terminal, checking that the payment device has both the first credit brand and a second credit brand and therefore is a dual brand credit payment device, or only has the first credit brand and therefore is a single brand credit payment device. The method then allows the payment device holder to choose on the payment terminal between processing the transaction in the merchant currency, or in the billing currency. If the payment device holder chooses, the merchant currency (and therefore opts out of currency conversion), then the transaction amount is displayed on the payment terminal in the merchant currency. If the payment device is a said dual brand credit payment device, then the device transaction proceeds either over the second payment network of the second brand or if the second payment network is not available over the first payment network of the first brand, or if the payment device is a said single brand credit payment device, then the device transaction proceeds over the first payment network of the first brand. Alternatively if the payment device holder chooses the billing currency (and therefore opts in to currency conversion), then the transaction amount is converted to an equivalent amount in the billing currency using an exchange rate, and the device transaction then proceeds over the first payment network.

Description

IMPROVEMENTS TO CURRENCY SELECTION IN DUAL BRAND CARDS TECHNICAL FIELD OF THE INVENTION

This invention relates to electronic payment services and to electronic payment networks, systems and methods for managing payment between a purchaser and a merchant. The invention has a particular, but not sole, application in processing transactions using smart chip enabled devices including Integrated Circuit Card (ICC) payment card transactions, and smart devices, where the smart chip enabled devices may have a dual brand of credit card provider. BACKGROUND OF THE INVENTION

Some credit cards are supplied as dual brand cards, that is, a single credit card (or equivalent smart device) that contains dual brands of credit card organisations or schemes, A common example of this is the dual brand China Union Pay (CUP) card also with Visa (or MasterCard) on the one card.

Typically when a dual brand card is presented which transaction system or scheme the transaction proceeds down (CUP or MasterCard/Visa) is dependent on the scheme chosen by the user or merchant, and once this scheme is chosen (manually or automatically) the transaction will occur automatically down the prescribed transaction scheme of either separate CUP scheme or separate MasterCard/Visa transaction scheme. For example if the user or device holder chooses Chinese RMB then the transaction will occur down the pathway of the CUP transaction scheme.

Alternatively, if for example the device holder is in Australia and CUP is not supported by the merchant, then the device holder may choose the merchant currency using Visa (or MasterCard) to complete the transaction. Then the transaction will occur down the pathway of the Visa (or MasterCard) transaction scheme.

This can create a lack of service options for the card holder, as not all the services that are present on one of the transaction systems or schemes, e.g. the CUP transaction system are available on the other transaction system, or vice versa. When services such as dynamic currency conversion are present on one transaction system and not the other, the user at least can miss out on these services and options.

Further there is the problem that the EFTPOS/credit card terminal provider is then prevented from sending the transaction down the transaction system that will be the fastest, least cost, and securest route for the transaction to occur down. To expand on this the dual brand card may be a physical credit card, or may be a smart device or similar, such card or device may have an ICC or similar equivalent present. Recently smart devices, such as smartphones, tablets and similar have included an onboard application or software, including supporting hardware (for example a near field chip "NFC") that allows the device holder (for example its owner) to maintain an electronic wallet ("ewailet") onboard the device, similar to the ICC on a credit card. Essentially this can be ihoughi of as a debit or credit card or similar enabled by the application and hardware in the device. Such an ewailet can hold dual brand cards, as well as one or more differing types and brands of card and the data and information usually contained in the cards, in discussions below the word card could mean therefore an actual card, for example a credit card, or the virtual form or that stored in the ewailet of a device, and preferably is referred to by the term "smart chip enabled device", or also a "payment device". Payment systems for cards, and latterly for smart devices (collectively smart chip enabled devices) are well known. In recent times there has been a move toward offering a financial service to card and device holders in payment transactions using the device or card in which the device holders have the cost of transactions converted to their local currency when making payment in a foreign currency at the point of the transaction, for example at the merchant terminal. This service is sometimes referred to as Dynamic Currency Conversion (DCC).

DCC services have a number of advantages, including:

the visibility of charges made in foreign countries or currencies;

the ability to enter expenses more easily (for business travelers);

· a comparable or less expensive fee than the currency conversion rates charged by credit card companies, and

freedom of choice of currency by the user.

The normal steps for processing a payment card transaction with currency exchange are:

1. obtain the payment device (for example a credit card or device with an ewailet) from the customer;

2. insert into or wave in front of (sometimes referred to as dipping) a device reader (for example a payment terminal) to read the payment device information for a chip card (EMV card) or a smart payment device (for example a smartphone). Or swipe on the device reader (for example a payment terminal) to extract the track 2 data including card number information for a magsiripe card. Alternatively enter the card number manually;

3. determine the card or payment device billing currency from the payment device information for chip card or smart payment device, or from the card number for magsiripe card or manually entered card number, for a potential exchange transaction;

4a. if the card is determined to be foreign, convert local amount into foreign amount;

4b. solicit customer choice (whether the customer wants to proceed with the converted amount or to have the transaction proceed in the merchant currency); and

5. process the payment transaction in the chosen currency and print receipt.

Steps 1 , 2 and 5 always occur, regardless of whether currency exchange is involved or not (step 4a and 4b does not occur and 5 defaults to merchant's local currency in this case). With manual currency exchange, steps 3 and 4 are performed manually, and are candidates for improvement. Step 4b, in fact stays manual even after computerization, in the sense that the operator or terminal has to prompt the customer to express the choice of currency, for example by pressing a button or touch screen somewhere.

Known methods for processing such a payment transaction with currency conversion are discussed below. Further information on such payment systems is provided later in this document.

The differing ways in which DCC can be achieved are dependent on locating the billing currency of the card, as distinct from the merchant currency, and then how the conversion is achieved.

Automatically locating the billing currency of the card improves convenience for the user, and also can alert the user to the existence of the conversion availability where otherwise if done manually, the user may not be aware of its availability. An example of this can be found in NZ 517105 which uses Bank Identification Numbers (BINS). In another approach published in NZ 554222, an authorization request is transmitted over the payment network, and the information received from that request is used to determine the card currency (i.e. the billing currency of the card) through the acquirer network. PCT/IB2012/002292 uses information on the ICC distinct from the BINS, and PCT/IB2014/000343 uses information on the ICC and heuristics to identify the billing currency of the card or device.

With smart chip enabled devices there is also the added complexity of efficiently handling a DCC transaction integrating where necessary both the data and software on the card together with that of the desired acquirer network. In this specification where reference has been made to patent specifications, other external documents, or other sources of information, this is generally for the purpose of providing a context for discussing the features of the invention. Unless specifically stated otherwise, reference to such external documents is not to be construed as an admission that such documents, or such sources of information, in any jurisdiction, are prior art, or form part of the common general knowledge in the art.

Therefore it is desirable to allow a dual brand card to proceed down either transaction system or scheme, independent of the brands on, and identified in, the card.

Object of the invention

It is therefore an object of the present invention to provide an improved currency selection and transaction system in dual brand smart chip enabled devices, or which overcomes the above disadvantages or addresses the long felt want, or which at least provides the public with a useful choice.

BRIEF DESCRIPTION OF THE INVENTION

In a first aspect the present invention may be the to broadly consist in a method of performing a payment device transaction between a payment device holder and a merchant having a payment terminal, wherein the payment device includes at least a first credit brand having an associated first payment network, wherein the first credit brand has a billing currency, the method comprising or including the steps of,

Obtaining a transaction amount of the transaction in a merchant currency,

Obtaining details of the payment device using the payment terminal,

Checking that the payment device has both the first credit brand and a second credit brand and therefore is a dual brand credit payment device, or only has the first credit brand and therefore is a single brand credit payment device,

Allowing the payment device holder to choose on the payment terminal between processing the transaction in the merchant currency, or in the billing currency,

Whereby if the payment device holder chooses,

i. the merchant currency (and therefore opts out of currency conversion), then the transaction amount is displayed on the payment terminal in the merchant currency, and

a. if the payment device is a the dual brand credit payment device, then the device transaction proceeds either over the second payment network of the second brand or if the second payment network is not available over the first payment network of the first brand , or

b, if the payment device is a the single brand credit payment device, then the device transaction proceeds over the first payment network of the first brand, ii. the billing currency (and therefore opts in to currency conversion), then the

transaction amount is converted to an equivalent amount in the billing currency using an exchange rate, and the device transaction then proceeds over the first payment network.

Preferably the first credit brand is selected from any one or more of,

Visa brand, and its associated payment network, or

MasterCard brand and its associated payment network. Preferably the equivalent amount in the billing currency is displayed on the merchant terminal.

Preferably the second credit brand is a China Union Pay brand and its selected payment network.

Preferably the method involves the step of the payment device holder confirm to proceed with the device transaction, after either of step i. or step ii.

Preferably the method involves, as part of the step of obtaining the payment device details, whether the payment device is eligible for currency conversion. Preferably the method involves the step of determining if the exchange rate or exchange rates are valid, prior to offering the currency conversion option.

Preferably if the payment device is not confirmed as a dual brand credit payment device, but is eligible for currency conversion then the payment device holder is allowed to choose between processing the transaction in

the merchant currency, or

the billing currency, then the transaction amount is converted to an equivalent amount in the billing currency using an exchange rate,

and the device transaction then proceeds over a second payment network which is not the first payment network. Preferably fhe method includes the step of defaulting to the merchant currency (step i) if any of the following events occur,

No valid the exchange rates are detected, or

The payment device is not eligible for currency conversion.

Preferably if the payment device is detected as a dual brand credit payment device and no valid the exchange rates are detected, and the payment device is not eligible for currency conversion then the device transaction proceeds over the first payment network of the first brand,

Preferably if the card is eligible for currency conversion, the exchange rates are valid, but the payment device is not a dual brand credit payment device, or for what ever reason will not function as one, or cannot be processed as one, then the payment device holder is allowed to choose between processing the transaction in

the merchant currency, or

and the device transaction then proceeds over the second payment network which is not the first payment network.

Preferably the exchange rates are contained within or on the merchant terminal for the conversion into the equivalent amount in the billing currency.

Preferably the exchange rates are regularly updated on the merchant terminal, but not in response to, or as part of, the device transaction.

Preferably the method uses a database to confirm that fhe payment device is in fact a dual brand credit payment device. Preferably the database is a database external to the merchant terminal.

Alternatively the method uses information held on the payment device to determine if the payment device is in fact a dual brand credit payment device. In a second aspect the present invention may be the to broadly consist in a computer implemented method of performing a payment device transaction between a payment device holder and a merchant having a payment terminal, wherein the payment device includes at least a first credit brand having an associated first payment network, wherein the first credit brand has a billing currency, the method comprising or including the steps of,

Obtaining a transaction amount of the transaction in a merchant currency,

Obtaining details of the payment device using the payment terminal,

Whereby if the payment device holder chooses,

b. if the payment device is a the single brand credit payment device, then the device transaction proceeds over the first payment network of the first brand, ii. the billing currency (and therefore opts in to currency conversion), then the

In a third aspect the present invention may be the to broadly consist in computer operated program adapted to run on a computer device connected to a network to perform a device transaction between a payment device holder and a merchant having a payment terminal, wherein the payment device includes at least a first credit brand having an associated first payment network, wherein the first credit brand has a billing currency, the method comprising or including the steps of,

Obtaining a transaction amount of the transaction in a merchant currency,

Obtaining details of the payment device using the payment terminal,

Checking that the payment device has both the first credit brand and a second credit brand and iherefore is a dual brand credit payment device, or only has the first credit brand and therefore is a single brand credit payment device,

Whereby if the payment device holder chooses,

b. if the payment device is a the single brand credit payment device, then the

device transaction proceeds over the first payment network of the first brand, ii. the billing currency (and therefore opts in to currency conversion), then the

In a fourth aspect the present invention may be the to broadly consist in a computer device to implement a method of performing a payment device transaction between a payment device holder and a merchant having a payment terminal, wherein the payment device includes at least a first credit brand having an associated first payment network, wherein the first credit brand has a billing currency, the method comprising or including the steps of,

Obtaining a transaction amount of the transaction in a merchant currency,

Obtaining details of the payment device using the payment terminal,

Checking that the payment device has both the first credit brand and a second credit brand and iherefore is a dual brand credit paymeni device, or only has the first credit brand and therefore is a single brand credit payment device,

Whereby if the payment device holder chooses,

i. the merchant currency (and therefore opts out of currency conversion), then the transaction amount is displayed on the payment terminal in the merchant currency, and a. if the payment device is a the dual brand credit payment device, then the device transaction proceeds either over the second payment network of the second brand or if the second payment network is not available over the first payment network of the first brand , or

In a fifth aspect the present invention may be the to broadly consist in a system for implementing a method of performing a payment device transaction between a payment device holder and a merchant having a payment terminal, wherein the payment device includes at least a first credit brand having an associated first payment network, wherein the first credit brand has a billing currency, the method comprising or including the steps of,

Obtaining a transaction amount of the transaction in a merchant currency,

Obtaining details of the payment device using the payment terminal,

Whereby if the payment device holder chooses,

b. if the payment device is a the single brand credit paymeni device, then the device transaction proceeds over the first payment network of the first brand, ii, the billing currency (and therefore opts in to currency conversion), then the

In another aspect the present invention may be the to broadly consist in a method of performing a payment device transaction as described herein with reference to any one or more of the accompanying drawings.

In another aspect the present invention may be the to broadly consist in a computer implemented method of performing a payment device transaction as described herein with reference to any one or more of the accompanying drawings.

In another aspect the present invention may be the to broadly consist in a computer operated program adapted to run on a computer device connected to a network to perform a payment device transaction as described herein with reference to any one or more of the accompanying drawings.

In another aspect the present invention may be the to broadly consist in a computer device to implement a method of performing a payment device transaction as described herein with reference to any one or more of the accompanying drawings.

In another aspect the present invention may be the to broadly consist in a system for

implementing a method of performing a payment device transaction as described herein with reference to any one or more of the accompanying drawings. As used herein the term "and/or" means "and" or "or", or both.

As used herein "(s)" following a noun means the plural and/or singular forms of the noun.

The term "comprising" as used in this specification means "consisting at least in part of. When interpreting statements in this specification which include that term, the features, prefaced by that term in each statement, all need to be present, but other features can also be present. Related terms such as "comprise" and "comprised" are to be interpreted in the same manner.

It is intended that reference to a range of numbers disclosed herein (for example, 1 to 10) also incorporates reference to all rational numbers within that range (for example, 1 , 1.1 , 2, 3, 3.9, 4, 5, 6, 6,5, 7, 8, 9 and 10) and also any range of rational numbers within that range (for example, 2 to 8, 1.5 to 5.5 and 3.1 to 4.7).

The entire disclosures of all applications, patents and publications, cited above and below, if any, are hereby incorporated by reference.

This invention may also be the broadly to consist in the parts, elements and features referred to or indicated in the specification of the application, individually or collectively, and any or all combinations of any two or more of the parts, elements and features, and where specific integers are mentioned herein which have known equivalents in the art to which this invention relates, such known equivalents are deemed to be incorporated herein as if individually set forth.

Other aspects of the invention may become apparent from the following description which is given by way of example only and with reference to the accompanying drawings.

BRIEF DESCRIPTION OF THE DRAWINGS

Preferred forms of the present invention will now be described with reference to the accompanying drawings in which; Figure 1 shows a front view of a credit card,

Figure 2 is a rear view of a card of Figure 1 with both a magnetic strip (shown) and a built in

Figure 3 front view of a smart device,

Figure 4 is a perspective view of a device payment terminal,

Figure 5 is a schematic diagram of a Global Payment Network,

Figure 8 shows a flow chart of the process of the present invention,

Figure 7 shows a further flow chart of the process of the present invention, and Figure 8 shows an example of the communications layer flow chart for CUP dual brand

process flow. DETAILED DESCRIPTION OF THE INVENTION

Preferred embodiments will now be described with reference to Figures 1 through 8. Payment Devices

Payment devices (cards or smart devices) 1 of the type shown in Figures 1 through 3 are well known. They are an embodiment of electronic money, the money which a person or holder already has (debit cards) or the money a person or holder borrows (credit cards). In a smart device, for example shown in Figure 2, these cards may be held virtually in an ewailet. A typical credit card is shown in Figure 1 (front view) and Figure 2 (rear view), having a chip (whether visible externally or not) or magnetic strip 2.

Increasingly widely available, are payment devices 1 of the type which are commonly referred as Smart Cards or Chip Cards shown in Figures 1 and 2. These cards are also referred to as Integrated Circuit Cards (ICCs). These devices 1 as cards may have contacts 2 on the outside of the card through which a device reader 3 (for example a device payment terminal 3) may read data on the integrated circuit 2 (i.e. the chip) which is part of the device 1. Other forms of ICC may use radio communication so that physical electrical contact between the device 1 and the device payment terminal 3 is not required. Some ICCs may include a processor device in order to actively process instructions. Others may simply comprise a memory which can be assessed by a device payment terminal 3. References in this document to Integrated Circuit Cards, Chip Cards or Smart Cards are intended to include all ICC cards i.e. ail payment cards which carry data in an integrated circuit provided on the card. Such cards also readily lend themselves to inclusion in an ewailet on a device 1 , for example a smart device 9, such as a phone or tablet as shown in Figure 3.

The device 1 shown as a card in Figures 1 and 2 does not show contacts for connection with a reading device 3, but otherwise has the same general appearance as an ICC. Collectively these cards or devices may be referred to as smart chip enabled devices.

Payment Terminals

A typical device payment terminal 3 is shown in Figure 4. It has an aperture or apertures 4 that allows the connection to the payment device 1. For example if the payment device 1 is a card then it can be swiped (for example to read the magnetic strip) or "dipped" (to read the contacts for the ICC), so the data from the card can be read into the processing centre of the computer the device payment terminal 3 enshrines. The device payment terminal 3 may also have apparatus to allow wireless connection between it and the card or device 1. For example a physical card (for example using PayWave®, or a virtual card held in an ewa!lei on a smart device (for example on a Near Field Chip or similar). The device payment terminal 3 may take many forms and may be a unitary unit as shown, or may consist of two or more parts, which may or may not be tethered to allow communication and power. Modern payment terminals can communicate wireiessly, the radio link being the invisible "wire", to enable communication with the payment network 7 (shown in Figure 5). Typically then the terminal 3 is of more than one part the parts are located within close proximity to one another , as opposed to remote locations.

In this document a payment terminal is not limited to a device having the physical appearance of the device shown in the picture. Any programmable computing device that has necessary input, output and remote communication mechanism, passes security requirements, and is approved by the acquiring bank or acquiring network (acquirer, please see below) will constitute a payment terminal.

The terminal 3 as shown also has a number pad (possibly two if two or more units form the terminal) and associated buttons 5. This is so that a user, for example a device holder, can key-in information into the the device 3, for example a PIN number as a security check to facilitate the progression and management of payment transactions, or make selections. Likewise the number pad can be used by the merchant to key in the amount and other details.

There is a LCD screen 6 built into this device 3 for displaying information. This screen represents the "output" of the payment terminal, again not quite unlike the screen of a personal computer. One of the functions of this will be described below.

The terminal may also have a touch pad (tethered or separate) that allows on a user to make touch screen selections and also recognise and receive other input, for example a signature. This touch pad may be separate or integrated into the terminal 3, for example it may form part of the screen 6.

Ail these buttons, together with the device connecting by radio, swiping or dipping mechanism represent the "input" of the payment terminal 3, not quite unlike the keyboard and mouse of a personal computer. fVierchant

Merchant, in the context of payment card business represents the agency that accepts a payment device as a mode of making payments, and has the means to handle such payments. The merchant will typically have a payment terminal 3 that includes a reader device that may be used by the device holder to perform a payment transaction with the merchant. The merchant for example may be a retailer of goods or services.

Acquirer

Payment devices 1 are issued and accepted globally. The merchant needs a local agency to handle all types of devices 1 , regardless of their origin. They need a single agency to settle with them all their transactions. This role is filled by an acquirer, typically a bank. The merchant's payment terminal 3 connects electronically with the local acquirer, and pushes all the device transactions into the acquirer's payment network for authorization and subsequent settlement (see below).

Issuer

An issuer is a device scheme member, typically a bank that sells or issues cards or their virtual ewallet equivalent to individual customers, who then are device holders.

Card Schemes

Card schemes like MasterCard and VISA are well known. They are responsible for creation of various schemes, specifications, processing networks, management of transaction operations, settlement of funds between different parties, enforcement of policies and procedures etc. They motivate banks and other financial businesses to become their members and sell card branded by them, either as physical cards themselves, or for inclusion virtually, for example an ewallet.

To ensure uniqueness of a card number at a global level, card schemes divide the total available set of numbers into different ranges or intervals, and allow members to issue card numbers within those intervals only. It is the issuing member's responsibility to ensure uniqueness within its own range. Typically a credit card scheme would use the most significant 6 digits (i.e. the first 6 digits of the card number) to manage allocation between its members, and leave the rest of the digits for the members to manage themselves. The six digit number, representing the most significant six digits of a payment card is called Bank Identification Number or BIN, or it may also be referred to as the issuer Identification Number (UN). Card schemes have been pre-ailocated the first couple of digits, and they have to manage their BINs subject to this constraint. Thus VISA cards normally begin with the first two digits between 40 and 49, a MasterCard normally begin with the first two digits between 51 and 55. This still leaves the card schemes with tens of thousands of BINs for allocation amongst their members, and hundreds of thousands or millions of numbers are available against each BIN for allocation to payment card holders.

Some credit cards are provided as dual brand cards. This arises as a result of two or more credit card organizations or schemes being on the one card. This may allow use of the card in one country, where one particular credit card organisation is recognised or is predominant, and then for the user to also use the card when they travel to another location where the second credit card organisation is recognised or predominant. An example of this is China Union Pay (CUP) and Visa (or MasterCard) dual brand cards. The CUP part can be more conveniently used in China and a number of neighbouring countries, and then when the user travels overseas they can use the more widely accepted Visa or MasterCard part in those overseas countries. Each credit card brand will also have their own payment networks down which the transaction will run depending on which brand is chosen at the time of the transaction.

This is different to having two separate cards from differing credit card organisations, and therefore separate accounts and account details. The dual brand card is one card which provides convenience to the device holder that can be used to pay on either of the credit card organisations or schemes that are branded on, and which information is included in, the card.

The actual card number is then printed and encoded on the card, and with other data onto its magnetic strip or chip, or the card number and data are loaded in an ewailet.

Electronic Payment Network

A schematic organization (simplified version), of a global payment network 7 is shown Figure 5. Payment terminals 20 and ATMs 21 (these may be the device payment terminal 3 described earlier) owned or licensed by banks are linked up with the bank's processing centre 24 via phone lines, or wirelessly as shown in the Figure. The bank's processing centre 24 links up with card scheme networks 28 via computers called routing hosts 25. The card scheme networks shown in Figure 5 are typically collections of thousands of such routing hosts 25. These routing hosts 25 contain BIN versus issuer mappings; so that they can send different transactions to appropriate Issuers e.g. issuing bank A, issuing bank B (refer to the other end of cloud in Figure 5, near the bottom). Once a transaction hits the issuer host, if is authorized there, and the result (for example approved or declined) is sent back (via the card scheme network) to the original payment terminal 20 or 3.

The collection of all payment terminals and ATMs linked up with a bank constitute the bank's local network. Three such networks are shown in the lower part of Figure 5. These networks link up with the global card schemes network via routing hosts as shown. Sometimes banks team up to create a joint local network, and joint interface with the global network, one example being ETSL (Electronic Transactions Services Limited) or Paymark in New Zealand. Authorization and Settlement

Authorization is the process whereby a transaction request is sent to the card issuer, and an approval received. The idea is to establish availability of funds in the payment card account. It may be followed by a settlement request which results in the card holder account getting debited. The equivalent amount is paid by the issuer to the card schemes, who pay it to the acquirer who in turn pays it to the merchant. The card holder sees this debit in her (typically) monthly bill from the card issuer.

How a standard Payment Card Transaction progresses

A standard payment card transaction progresses as follows:

The card or device is swiped, dipped or wirelessly connected (for an ICC card or for example a device with an ewallet) at the payment terminal 3 and card number and expiry date are entered into terminal's processing area, if the magnetic stripe of the card is worn out, or the terminal swiper doesn't work, the card number and expiry date can be keyed manually into the terminal 3, for example by the number pad 5 or touch screen 6.

The amount of transaction is entered into the terminal.

The terminal casts the transaction information (card details and transaction amount at least) into requisite format and sends the transaction information to the acquirer to start the approval process of the transaction.

The acquirer host looks at the card information, and determines the card scheme (as mentioned before, the first two digits of the card number contain this information). The acquirer host pushes the transaction into the card scheme network.

The routing host in the scheme's network looks at the BIN of the card number, and identifies the issuer of the card (as noted before, since BINs are country specific, this identification embodies the country specific branch of the issuer, for example Citibank Hong Kong, or Citibank Australia etc, not just Citibank).

The card scheme network sends the transaction to the issuer host, The issuer host checks to see if funds are available, and if "yes", approves the transaction.

The issuer host sends the result of the transaction to card scheme network, which in turn sends it to the acquirer host, and it eventually reaches the merchant payment terminal. The transaction result displays on the terminal 3, and the transaction receipt prints. The customer is asked to sign it as a means of authentication, unless he entered some kind of PIN number in the course of the transaction.

Electronic Payment Networks

Electronic payment networks, from a computer perspective, link up and represent collections of a range of (human) user interface devices like EFTPOS devices, automatic teller machines (ATMs), web payment pages etc with transaction processing and accounting systems of payment card schemes like Visa and MasterCard and banks like American Express or Bank of New Zealand. The afore-mentioned human interface devices are collectively called terminal devices 3.

Terminal devices 3 could be real, as in case of ATMs which need to dispense cash, or virtual, like web payment pages. This distinction arises from the fact that for real devices, the terminal transaction management hardware and software is located locally, whereas for virtual devices, it is elsewhere on the network. A terminal device may have features from both varieties wherein part of the terminal side of transaction computing occurs on the device, the rest occurs elsewhere on the network (background devices). As noted above most real terminal devices (on electronic payment networks), regardless of size, shape and appearance, and background devices, are programmable electronic computers. Similarly most virtual terminal devices are driven remotely by programmable electronic computers. The terminal devices manage human user interaction and electronic communications to capture all the information required for processing a transaction, send this information electronically to the card scheme or bank's accounting system, and convey the result to the human user at the end of the transaction.

Preferred embodiments of the present invention

The present invention is for a method of performing a payment transaction between a holder of a payment device 1 and a merchant, who typically has a payment terminal 3 and is shown in Figures 1 through 8. The invention is directed to those payment devices 1 that have at least two credit card brands available on the one payment device 1 , typically what is referred to as a dual brand credit card, in its most common form the payment device 1 is a credit card such as shown in Figure 1 and the brands are Visa (or MasterCard) as the first credit brand and China Union Pay as a second credit brand. This concept is clear, even when the user has a wallet with several cards including one that is a dual brand credit card. However when the payment device 1 is an ewaliet, for example on a smart device such as a phone or tablet as shown in Figure 3, it must be understood in the same way, that is, the ewaliet may contain several credit card equivalents, for example accessible through the near field communications chip on the payment device. However only certain of those credit card equivalents accessible will be dual brand card equivalents, in the same way that only certain cards within the physical wallet will be dual brand cards.

In a typical transaction using the present invention the amount of the transaction in the merchant's currency is entered into the payment terminal 3. The holder or user of the payment device 1 (also referred to as the payment device holder) will also present the payment device 1 to the payment terminal 3, or the merchant is handed the payment device 1 (more typical when it is a credit card) for reading by the payment terminal 3.

When the payment device is read, shown in Figure 7, its details are acquired. Here Figure 7 refers to "Read card data" which is correct when the payment device is a credit card, however it should be understood as reading the equivalent to the card data when the payment device is a smart device, referred to from now as payment device data. The payment terminal 3 then checks to see if the payment device 1 is a dual brand card, or only has one brand present and activated on the card, and identifies the card schemes.

The payment terminal then checks from the payment device data whether the payment device is a first credit brand (here shown as either Visa or MasterCard), if the first credit brand is detected then the card billing or issuing currency is then extracted from the payment device data. This may be present from the data already extracted, or may require further processing or interrogation of the payment device. A check is then made to see if the payment device is a foreign card that is it was issued by an entity not in the country where the transaction is attempted.

If the payment device is a foreign device then a check is made to ensure a suitable exchange rate is available to allow the transaction (if later chosen by the payment device holder) to occur in the equivalent amount in the issuing currency (or billing currency) from transaction amount of the merchant currency.

The payment terminal checks internally whether the exchange rate files on board are valid and other aspects of the payment terminal are working, for example the sign pad and key pad.

If the answer to this is yes the transaction is then processed in the normal way via the first credit brand network, signing is required by the payment device holder, receipts are issued and the transaction is concluded. If the answer is negative to any of the above steps (eg, if the first brand is not detected, not a foreign card, exchange rate not available, or DCC not opted in for) then the next step is to check whether the payment device 3 is a co-branded payment device 1. if there is a fault, for example the exchange rate files are not valid then the terminal will default to only offering the transaction in the merchant currency and no currency exchange using dynamic currency conversion can occur.

If the payment terminal is running correctly after the check, including whether a suitable exchange rate is located then the holder is offered the choice of whether they wish to have the transaction proceed with Dynamic Currency Conversion (DCC); that is whether they wish to run the transaction in the merchant currency, that is opting out of dynamic currency conversion, or the billing currency that is opting in to dynamic currency conversion, the billing currency for example, of the second credit brand, which is typically China Union Pay.

If the holder chooses to opt out and pay in the merchant currency then the payment terminal displays the transaction amount in the merchant currency. If the payment device was validly identified as a dual brand credit payment device, and the holder confirms they wish to proceed (for example by signing on the payment terminal pad) then the transaction will be sent from the merchant terminal over the first payment network, or over the second payment network (that is, the network associated with the second credit brand, in this example China Union Pay), based on the availabilities of the networks, the choice of the device holder, or the default setting of the merchant terminal,

If the payment device was not validly identified as a dual brand credit payment device, or for example it is a single credit brand device, and the holder confirms, then the payment terminal casts the transaction out over the first payment network of the first brand, typically MasterCard or Visa. If the holder opts in for dynamic currency conversion to the billing currency then the payment terminal uses its internal exchange rate files to convert the transaction amount to the identified billing currency. The holder then confirms they agree to the transaction. The payment terminal then casts the transaction out to the network of the first credit brand, typically Visa or MasterCard. Thereafter, which ever network the transaction is cast down, an authorisation or not for the transaction is sent back to the payment terminal and identified to the holder and merchant.

The communications layer flow chart for a typical dual brand credit card, using China Union Pay as an example, is shown in Figure 8. The layers are broken up into the Front-end Point Of Sale (POS), Dynamic Currency Conversion (DCC) provider, Acquirer Host, Card Schemes and Issuer host, and is explained below.

Front-end POS

This is a typical POS system with DCC function. ECR is the Electronic Cash Register. ECR can be used to scan or capture the goods or service information via bar code reader or entry pad. ECR is normally the initiator of a purchase transaction. ECR may also control a printer to print customer and merchant receipts. Terminal is payment terminal 3 in Figure 4. fxChoice is a front-end DCC (Dynamic Currency Conversion) function software from DCC provider. SignPad is a signature pad with a touch screen. SignPad can be used to offer currency choice to card holders and to capture customer signatures. In this example, fxChoice controls the SignPad. An example of this and its implementation in the present invention for CUP dual brand process flow is shown in Figure 8.

DCC Backend

NetReport is a reporting system provided by DCC provider. Merchants can view different transaction reports on NetReport. FX Host is the rate host for DCC service.

Claims

WHAT WE CLAIM IS:

1. A method of performing a payment device transaction between a payment device holder and a merchant having a payment terminal, wherein the payment device includes at least a first credit brand having an associated first payment network, wherein the first credit brand has a billing currency, the method comprising or including the steps of,

Obtaining a transaction amount of the transaction in a merchant currency,

Obtaining details of the payment device using the payment terminal,

Whereby if the payment device holder chooses,

a. if the payment device is a said dual brand credit payment device, then the

device transaction proceeds either over the second payment network of the second brand or if the second payment network is not available over the first payment network of the first brand , or

b. if the payment device is a said single brand credit payment device, then the device transaction proceeds over the first payment network of the first brand, ii. the billing currency (and therefore opts in to currency conversion), then the

2. A method as claimed in claim 1 wherein the first credit brand is selected from any one or more of,

Visa brand, and its associated payment network, or

MasterCard brand and its associated payment network.

3. A method as claimed in claim 1 or 2 wherein the equivalent amount in the billing currency is displayed on the merchant terminal.

4. A method as claimed in any one of claims 1 to 3 wherein the second credit brand is a China Union Pay brand and its selected payment network.

5. A method as claimed in any one of claims 1 to 4 wherein the method involves the step of the payment device holder confirm to proceed with the device transaction, after either of step i. or step ii.

6. A method as claimed in any one of claims 1 to 5 wherein the method involves, as part of the step of obtaining the payment device details, whether the payment device is eligible for currency conversion.

7. A method as claimed in any one of claims 1 to 6 wherein the method involves the step of determining if the exchange rate or exchange rates are valid, prior to offering the currency conversion option.

8. A method as claimed in any one of claims 1 to 7 wherein if the payment device is not

confirmed as a dual brand credit payment device, but is eligible for currency conversion then the payment device holder is allowed to choose between processing the transaction in the merchant currency, or

and the device transaction then proceeds over a second payment network which is not the first payment network.

9. A method as claimed in any one of claims 1 to 8 wherein the method includes the step of defaulting to the merchant currency (step i) if any of the following events occur,

No valid the exchange rates are detected, or

The payment device is not eligible for currency conversion.

10. A method as claimed in any one of claims 1 to 9 wherein if the payment device is detected as a dual brand credit payment device and no valid the exchange rates are detected, and the payment device is not eligible for currency conversion then the device transaction proceeds over the first payment network of the first brand.

1 1 . A method as claimed in any one of claims 1 to 1 1 wherein if the card is eligible for currency conversion, the exchange rates are valid, but the payment device is not a dual brand credit payment device, or for what ever reason will not function as one, or cannot be processed as one, then the payment device holder is allowed to choose between processing the transaction in

the merchant currency, or

12. A method as claimed in any one of claims 1 to 1 1 wherein the exchange rates are

contained within or on the merchant terminal for the conversion into the equivalent amount in the billing currency.

13. A method as claimed in any one of claims 1 to 12 wherein the exchange rates are regularly updated on the merchant terminal, but not in response to, or as part of, the device transaction.

14. A method as claimed in any one of claims 1 to 13 wherein the method uses a database to confirm that the payment device is in fact a dual brand credit payment device.

15. A method as claimed in claim 14 wherein the database is a database external to the

merchant terminal.

16. A method as claimed in claim 14 wherein the method uses information held on the payment device to determine if the payment device is in fact a dual brand credit payment device.

17. A computer implemented method of performing a payment device transaction

between a payment device holder and a merchant having a payment terminal, wherein the payment device includes at least a first credit brand having an associated first payment network, wherein the first credit brand has a billing currency, the method comprising or including the steps of,

Obtaining a transaction amount of the transaction in a merchant currency,

Obtaining details of the payment device using the payment terminal, Checking thai the payment device has both the first credit brand and a second credit brand and iherefore is a dual brand credit paymeni device, or only has the first credit brand and therefore is a single brand credit payment device,

Whereby if the payment device holder chooses,

iii. the merchant currency (and therefore opts out of currency conversion), then the transaction amount is displayed on the payment terminal in the merchant currency, and

b. if the payment device is a the single brand credit paymeni device, then the

device transaction proceeds over the first payment network of the first brand, iv. the billing currency (and therefore opts in to currency conversion), then the

transaction amount is converted to an equivalent amount in the billing currency using an exchange rate, and the device transaction then proceeds over the first paymeni network.

18. A computer operated program adapted to run on a computer device connected to a

network to perform a device transaction between a payment device holder and a merchant having a payment terminal, wherein the payment device includes at least a first credit brand having an associated first payment network, wherein the first credit brand has a billing currency, the method comprising or including the steps of,

Obtaining a transaction amount of the transaction in a merchant currency,

Obtaining details of the payment device using the payment terminal,

Checking that ihe payment device has both the first credit brand and a second credit brand and therefore is a dual brand credit payment device, or only has the first credit brand and therefore is a single brand credit payment device,

Whereby if the payment device holder chooses,

b. if the payment device is a the single brand credit payment device, then the device transaction proceeds over the first payment network of the first brand, iv. the billing currency (and therefore opts in to currency conversion), then the

19. A computer device to implement a method of performing a payment device transaction between a payment device holder and a merchant having a payment terminal, wherein the payment device includes at least a first credit brand having an associated first payment network, wherein the first credit brand has a billing currency, the method comprising or including the steps of,

Obtaining a transaction amount of the transaction in a merchant currency,

Obtaining details of the payment device using the payment terminal,

Whereby if the payment device holder chooses,

b. if the payment device is a the single brand credit payment device, then the device transaction proceeds over the first payment network of the first brand, iv. the billing currency (and therefore opts in to currency conversion), then the transaction amount is converted to an equivaient amount in the billing currency using an exchange rate, and the device transaction then proceeds over the first payment network.

20. A system for implementing a method of performing a payment device transaction between a payment device holder and a merchant having a payment terminal, wherein the payment device includes at least a first credit brand having an associated first payment network, wherein the first credit brand has a billing currency, the method comprising or including the steps of,

Obtaining a transaction amount of the transaction in a merchant currency,

Obtaining details of the payment device using the payment terminal,

Whereby if the payment device holder chooses,

A method of performing a payment device transaction as described herein with reference to any one or more of the accompanying drawings.

A computer implemented method of performing a payment device transaction as described herein with reference to any one or more of the accompanying drawings,

A computer operated program adapted to am on a computer device connected to a network to perform a payment device transaction as described herein with reference to any one or more of the accompanying drawings.

A computer device to implement a method of performing a payment device transaction as described herein with reference to any one or more of the accompanying drawings.

A system for implementing a method of performing a payment device transaction as described herein with reference to any one or more of the accompanying drawings.