EP3915075A1

EP3915075A1 - A payment method and payment system

Info

Publication number: EP3915075A1
Application number: EP20706811.5A
Authority: EP
Inventors: Mark Ashcroft; Marc BINNINGTON
Original assignee: Quantum Card Services Ltd
Current assignee: Quantum Card Services Ltd
Priority date: 2019-01-25
Filing date: 2020-01-27
Publication date: 2021-12-01
Also published as: GB2594028A; GB201901083D0; WO2020152656A1

Abstract

The present invention relates to a computer implemented payment method and payment system and in particularly a payment method and payment system using contactless devices such as smart cards or tokens. The method and system transacts a specified amount of funds from a nominated bank account to a smart card. The system comprises: a bespoke contactless read/write device which is adapted to communicate with the smart card in a near field communication configuration. The bespoke contactless read/write device is operative to connect to a payment broker and to receive an instruction therefrom to update a memory on the smart card by a sum corresponding to an amount of a pre-authorised amount of user specified funds from a nominated bank account.

Description

A Payment Method and Payment System

Field

The present invention relates to a payment method and payment system. More particularly the invention relates to a payment method and payment system using contactless devices such as smart cards or tokens.

Background

Many types of cashless payment systems exist. One of these is a standard that is known as Europay, Mastercard and Visa (EMV). These payment standards enable credit and debit cards to be used by a wide variety of different merchants. The EMV standard also enables so-called pre-paid cards to be used to purchase goods and services. Pre-paid cards operate in a similar manner to credit and debit cards but require a cash payment to be deposited before the card can be used.

An advantage of such pre-paid cards is that the amount of funds available to the card is limited and once these funds are spent a user is unable to overspend. Therefore, pre-paid cards are of practical use to vulnerable people, younger people or those with poor credit history who struggle to manage their finances because pre paid cards help users avoid running up large credit card bills.

Mobile communication networks are becoming increasingly faster with the roll-out of new 4G and 5G standards. They offer ever wider coverage, greater data speeds and better reliability. Consequently many shops and business outlets now use so- called merchant services or on-line payment facilities to enable them to operate credit and debit card terminals. These in turn ensure that customers are able to purchase goods and services using credit, debit cards and pre-paid cards.

More recently so-called contactless payment systems have become popular. These systems operate with a variety of devices but are all cashless. Contactless payments systems exist for use with credit cards and debit cards, but other systems employ bespoke tokens which may be incorporated in key fobs or other electronic devices especially smartphones and tablets . Contactless payment devices are be incorporated in smartphones and other mobile communication devices which operate using near field communication (NFC) and these include Samsung Pay (Trade Mark), Apple Pay (Trade Mark) and Google Pay (Trade Mark). Another subset of this group is customised systems developed by leading banks.

Near field communications systems operate by employing a chip with an antenna that is embedded on the card, fob, token or mobile communication device. This allows consumers to wave or hold their card, fob, or handheld device over a reader at the point of sale terminal which is operative when connected to a network in accordance with communication protocols to establish communication with the card, fob, token, or mobile communication device when brought within a few centimetres, typically around 4 cm, of the card, fob, token or mobile communication device.

Contactless payments are made in close physical proximity, unlike mobile payments which use broad-area cellular or Wi-Fi networks and do not involve close physical proximity.

Additionally, there has been growth in the different payment services that are accessible via mobile communication devices, such as so-called smart phones, such as Apple Pay (Trade Mark) and PayPal (Trade Mark) which enable a mobile telephone to be used to pay a merchant.

High speed digital networks (4-G and 5-G networks) and related infrastructure enable faster, more secure and more reliable data transfer rates. Consequently, there is an increasing trend to use such cashless payment systems and on-line banking.

Payment service providers are offering ever more sophisticated and secure payment services to use and access remotely. Consequently, there is an increasing tendency to rely on and expect the availability of such on-line services and cashless payment facilities and supporting infrastructure.

Many people, especially young people, attend festivals which are becoming more diverse and popular. Festival (https://www.alastonburvfestivals.co.uk) and the Isle of

Wight Festival (https://isleofwightfestival.com/)· Attendance at such events can exceed 150 000 spectators and needless to say there is substantive infrastructure installed including many different types of food and beverage outlets

However, there are situations where payment facilities are not available which is often the case in remote locations or where power supplies are interrupted or in cases where there is Internet disruption, payment systems become redundant.

A problem that organisers then encounter is one of resources management. That is where payment data, that has been acquired locally form users, vendors, customers and suppliers, cannot be transmitted to remote servers for reconciling with a particular account.

Prior Art

One example of a payment system is disclosed in United States Patent US 9792035 (Mastercard International Inc). The system and method are for a contactless payment enabled smartphone in which a user can toggle between multiple payment methods, for example a user may select different credit/debit card accounts. The smartphone facilitates payment using a selected payment method via a contactless or wireless transmission.

Another example of a smart card transaction system is disclosed in US Patent US 9020853 (VISA International) which teaches a system that allows a consumer to load a pre-payment onto a smart card and to make purchases using the smart card in combination with a mobile telephone handset. The system includes: a mobile telephone handset and a card reader.

A funds issuing computer credits an account associated with the mobile telephone handset in response to a user request from a user to load a value onto the smart card. The handset generates a funds request message which includes the value of requested funds and sends the funds request message to a funds issuer computer. The funds issuer computer debits an account associated with the user.

A cryptographic signature and sends the load request message to an authentication computer which authenticates the smart card and after validation funds are loaded to the approved value onto the smart card. Although useful in providing cashless payment capabilities the aforementioned system both require a live communications network in order to continually update an on-board memory of a smart card.

Another problem is when a user loses their smart card or payment token or when the smart card or payment token is stolen or otherwise compromised, for example if it becomes damaged or inoperable.

An aim of the invention is to provide a system that encourages users to rely on and develop appropriate on-line skills and responsibilities.

Another object is to provide a contactless payment card and system that is reliable and able to be used in remote locations or situations without access to a network.

A further aim is to provide a distributed ledger system that improves resource management, for example in the event of an unexpected power outage or a limitation of available bandwidth for transmitting and/or receiving data.

Summary of the invention

According to a first aspect of the invention there is provided a computer implemented method for transacting a specified amount of funds from a financial account to a smart card, wearable device, or token, including the steps of: assigning a unique identifier code to the smart card, wearable device, or token; storing the unique identifier code in a memory on a chip on the smart card, wearable device, or token; aggregating the unique identifier code and data identifying the financial account on a payment processor database in order to create Europay, Mastercard and Visa (EMV) personalisation records to be encoded on the smart card or token; supplying the smart card, wearable device, or token to a customer; placing the smart card, wearable device, or token in a near field communication configuration with a bespoke contactless read/write device which is operative to connect to a payment broker; operating the bespoke contactless read/write device in accordance with instructions from a supervisor host database to communicate the unique identifier code to the payment broker; confirming the existence of credit in the financial account sufficient to meet the pre-authorised amount of funds; transmitting a request for funds from the payment broker to pre-authorise (ring-fence) an amount of user specified funds from an available balance in the financial account; and commanding the contactless read/write device to update the memory on the smart card, wearable device, or token by an amount equal to the pre-authorised amount funds.

The method thereby allows a user to be provided with a smart card, wearable device, or token with which they can make payments from a pre-authorised user specified amount of funds from a financial account (such as an account with the payment broker or a nominated bank account). The smart card, wearable device, or token may be for making payments at an event such as a festival or conference.

The steps of the method may be performed in other orders than that in which they are listed, for example, the unique identifier code may be stored in the memory on the chip of the smart card, wearable device or token after EMV personalisation records are created. In some embodiments of the method, additional steps may be included in the method. The steps will hereinafter be referred to in the order in which they are listed above.

In the first listed method step a smart card, wearable device, or token is provided with a unique identifier code. The smart card, wearable device, or token being for having a balance of funds recorded thereon and/or associated therewith on an external database; the smart card, wearable device, or token preferably being for making payments from the balance of funds. The smart card, wearable device, or token may be for making payments at conventional payment terminals, for withdrawing cash from conventional automated teller machines and/or for making payments or withdrawing cash from bespoke payment terminals or automated teller machines associated with and compatible with the smart card, wearable device, or token.

The smartcard, wearable device, or token may be a stored-value payment card or may be a wearable device or token operating in the same manner as a stored-value payment card. Stored-value payment cards are payment cards which have a monetary value stored on the card itself instead of in an external account (as is the case with debit or credit cards). Such a smartcard, wearable device or token may advantageously be for making payments to or withdrawing cash from payment terminals or automated teller machines which are not networked or in communication with external financial institutions. This may be particularly advantageous at events such as festivals or networks where networked payment terminals or automated teller machines may not be available.

The smart card, wearable device, or token is provided with a unique identifier code which may be used to identify the smart card, wearable device, or token when it communicates with other devices such as with the bespoke contactless read/write device referred to in the sixth and seventh listed steps of the method and/or with conventional or bespoke payment terminals or automated teller machines.

In preferred embodiments, the smart card, wearable device, or token is for making contactless transactions such as using near-field communication (NFC) communication protocols. Preferably, the unique identification code is readable by any NFC capable reader by presenting a unique set of application protocol data unit (APDU) commands to the chip on the smart card or token via NFC communication protocols.

The unique identifier code is preferably created or generated by the payment broker and may be provided to the smart card, wearable device, or token by a manufacturer or provider of the smart card, wearable device, or token such as a card bureau.

The smart card, wearable device, or token comprises a chip with a memory on which the unique identifier code is stored in the second listed step of the method. In some embodiments the smart card, wearable device, or token may be a smart card or integrated circuit (1C) card, such as a card in the form of a conventional payment card (such as credit or debit card). In some embodiments the smart card or token may be a MIFARE DESFire (RTM) or MIFARE Ultralight (RTM) 1C card.

The smart card, wearable device, or token preferably comprises an EMV chip. In some embodiments the EMV chip may the chip with the memory on which the unique identifier code is stored. In preferred embodiments the EMV chip comprises a non-EMV read/write area of the chip, to which a monetary value may be written in embodiments where the smart card, wearable device, or token is or acts as a stored- value payment card. The unique identifier code may be embedded within EMV data on the EMV chip. In the third listed step of the method the unique identifier code and data identifying the financial account are aggregated on a payment processor database in order to create EMV personalisation records to be encoded to the smart card, wearable device, or token.

The financial account may be an account with the payment broker, for example, to which the customer may transfer funds for later use to make payments or cash withdrawals using the smart card, wearable device or token. Alternatively, the financial account may be a bank account (such as a deposit account) which may be nominated, for example by the customer when they order or purchase an event ticket and/or smart card or when they are logged into an account with the payment broker as described above.

In some embodiments, the third listed step of the method may be carried out before the second, listed step of the method.

EMV personalisation records are preferably securely encoded on the smart card, wearable device or token. The EMV personalisation records may provide the parameters for making EMV payments with the card, for example wherein the card operates as a stored-value EMV payment card.

In some embodiments, personal data of a customer to whom the card is to be provided (such as the customer referred to in the fourth listed step of the method) may be aggregated with the unique identifier code and the financial account in this third listed step. Personal data may include the customer’s name, age, address and/or other details.

In some embodiments, ticketing data of the customer to whom the card is to be provided may aggregated with the unique identifier code and the financial account (and optionally the customer’s personal data) in this third listed step.

Likewise at any suitable step of the method, a server may communicate with one or more other servers, as part of a distributed ledger system in order to verify identity, status of such data items as a user name, purchase item, time, date and place of purchase and any other unique“digital signature,” Ticketing data may associate a customer with an event ticket. Ticketing data may have been provided to the payment broker, for example by a ticketing company or the organiser of an event. Ticketing data may be provided to the payment broker after the customer has ordered, purchased or been issued with the event ticket. Providing ticketing data to the payment broker may be an additional step of the method which preferably occurs before the fifth listed step of the method, but which may occur before, between or after the first to fourth listed steps of the method.

The event ticket is preferably a ticket for an event at which the smart card, wearable device, or token is to be used to make payments. The event being one where the bespoke contactless read/write device referred to in the fifth and sixth listed steps of the method is available for pre-authorising the card with funds from the financial account.

When a customer orders a ticket for such an event, they may be able or prompted to order or request a smart card, wearable device, or token (or indicate that they already have a smart card, wearable device, or token, for example, in embodiments of the invention where the fifth listed step of the method occurs before the third listed step).

When ordering a ticket for such an event, a customer may be able or prompted to create or log into an account with the payment broker; in creating such an account they may provide personal details such as their name, date of birth, address, email address, other contact details, password, and/or payment or bank account details. Such an account may allow or facilitate the payment broker associating the customer with a smart card, wearable device, or token.

In some embodiments such an account may have an associated financial account with the payment broker to which the customer may transfer funds, such as from a conventional bank account, such a financial account may be the financial account referred to in the method.

The payment broker preferably associates or links the ticketing information with a smart card, wearable device, or token’s unique identifier code, preferably the unique identifier code of the smart card, wearable device, or token to be provided to, or already provided to the customer of the ticketing information. For this purpose, the payment broker may retain records of customers who have ordered or received smart cards or tokens and/or who have orders tickets for events at which the smart cards or tokens are useable.

The smart card, wearable device or token may be manufactured (for example by a card bureau wherein it is a smart card) after the customer has ordered a ticket, ordered a card, created an account with the payment broker and/or nominated a bank account to be the financial account.

The smart card, wearable device or token is preferably prepared, programmed or manufactured in this third listed step of the method or in an additional step intermediate the third and fourth listed steps of the method. For example, the smart card, wearable device or token may be an 1C card manufactured by a card bureau in such a step.

In the fourth listed step, the smart card, wearable device, or token is provided to a customer. For example, the smart card, wearable device or token may be posted to the customer. The smart card, wearable device or token, may be provided to the customer directly by its manufacturer, such as a card bureau, or by the payment broker. Alternatively the customer may be able to collect a smart card, wearable device, or ticket at the event.

In the fifth listed step, the smart card, wearable device, or token is placed in a near field communication configuration with a bespoke contactless read/write device which is operative to connect to the payment broker.

The bespoke contactless read/write device is preferably provided at and/or by the event organiser where the event ticket of the third listed step is provided. Before, upon or shortly after arriving at the event, the customer may take their smart card, wearable device, or token to the bespoke read/write device and place it near the device such that the smart card, wearable device, or token is able to communicate with the bespoke read/write device using near-field communication (NFC) communication protocols. The bespoke contactless read/write device preferably communicates with the smart card, wearable device, or token via a set of APDU commands in order to retrieve the unique identifier code of the smart card, wearable device, or token.

The bespoke contactless read/write device is operative to connect to the payment broker, for example via an internet connection.

In the sixth listed step of the method the bespoke contactless read/write device is operated in accordance with instructions from a supervisor host database to communicate the unique identifier code of the smart card, wearable device, or token to the payment broker. The bespoke contactless read/write device preferably reads the unique identifier code of the smart card, wearable device, or token via the NFC contactless communication between the smart card or token and the bespoke device and then communicates the unique identifier code to the payment broker via the connection between itself and the payment broker.

The supervisor host database may be a database provided and/or controlled by the manager or host of the event. Such a database may provide instructions for operating a plurality of bespoke contactless read/write devices.

In this step, the bespoke device preferably requests information from the payment broker about the scanned card, wearable device or token and the payment broker will return a signal or information indicative of whether the scanned card, wearable device or token is valid for use with the method, event and/or event hardware such as the bespoke contactless read/write device. The payment broker preferably also returns a signal or information indicative of an amount of funds to be pre-authorised in the seventh listed step of the method. The amount of funds may be fixed, may be set by the customer in advance of the event (for example using their account with the payment broker and/or when they ordered their event ticket), or may be set by the payment broker, or may be set by some third party (such as a guarantor) who has communicated the amount to the payment broker in advance.

The bespoke device preferably then requests the ring-fencing of the nominated amount of funds in the financial account. In the seventh listed step of the method, the existence of credit in the financial account sufficient to meet the pre-authorised amount of funds is confirmed.

If insufficient funds are present in the financial account the amount of funds may be reduced.

In the eighth listed step of the method, a request for funds from the payment broker to pre-authorise (ring-fence) an amount of user specified funds from an available balance in the financial account is transmitted.

The request is preferably transmitted by the payment broker to the payment processor and the payment broker sends to the bespoke device a response indicating whether the transaction has been successful.

In the ninth listed step of the method, the contactless read/write device is commanded to update the memory on the smart card, wearable device, or token by an amount equal to the pre-authorised amount funds.

When the funds are pre-authorised, a portion of the funds in the financial account are preferably ring-fenced such that they cannot be spent, transferred or withdrawn therefrom until they are de-authorised, for example at the end of the event. The smart card, wearable device or token is then preferably credited with the amount of funds such that it may be used as a stored value payment card. Transactions undertaken using the smart card, wearable device or token as such a payment means may be recorded on the card and/or on hardware provided at or by the event (such as automated teller machines or payment terminals, which may be or comprise bespoke NFC read/write contactless devices).

After a set period of time has elapsed, a deadline has passed or the smart card, wearable device or token is deactivated using a bespoke NFC read/write contactless devices, funds may be transferred from the ring-fenced amount of funds in the financial account to settle any such transactions and any remaining funds are preferably de-ring-fenced.

According to a second aspect of the invention there is provided system for transacting a specified amount of funds from a nominated bank account to a smart card, wearable device or token, comprising: a bespoke contactless read/write device which is adapted to communicate with the smart card, wearable device or token in a near field communication configuration and the bespoke contactless read/write device is operative to connect to a payment broker and receive an instruction therefrom to update a memory on the smart card, wearable device or token by a sum corresponding to an amount of a pre-authorised amount of user specified funds from a nominated bank account.

The system may be part of a distributed ledger system that is operative to record transactions and assets in which the transactions and their details are recorded in multiple places at the same time. Such distributed ledger technologies are often referred to as DLT or blockchain systems and ensure greater integrity of data and improves reliability of data authentication.

This may be important for encouraging responsible or respectful behaviour when interacting with systems or with other users.

Problems which the system overcomes include where cash transactions take place and there is a risk of theft from staff and employees and thus increasing pressure from a security perspective to reduce the amount of cash transactions and to increase card payments, whether these be with a credit or debit card or with contactless payments.

However, due to the fact that many of these events are held in remote or rural locations there can be sporadic reception and data connections. Also infrastructure located in rural environments is not always designed to cope with very dense data traffic that is often the case in cities and regions where there are more base stations and data infrastructure and consequently greater bandwidth capability.

Another problem is that where inexperienced on-line account users encounter such problems, due to lack of funds, in a party environment, participants may lack the judgement and ability to budget and so risk overspending.

As a consequence important payments, for bills or other direct debit payments or standing orders, may be refused or missed which can in turn lead to problems with supply contracts being terminated, credit agreements breached, or a user’s credit rating being negatively affected.

Optionally cards or accounts may be limited for use with a specific set or type of commodity codes or products and services. The system is configured with rules to use these codes in order to help define a user’s spending pattern. This data is used with other data, as described below, to determine a user profile, for example by way of an algorithm which derives a weighted activity value which combines other data derived from other sources

Means may be included in a database to enable deriving data, from the on-line user activity based upon user interactions with an on-line account, such as a current bank account or savings bank account, credit card account, credit account or electronic purse/wallet.

According to a further aspect of the invention there is provided a stored payment card, wearable device, or electronic token comprising: an NFC communication device; a secure EMV memory portion of a chip comprising: a unique identifier code, and EMV personalization records associated with a financial account; a non-EMV read/write memory portion of the chip comprising: a ticket to an event, the ticket being linked to the unique identifier code, a ring-fenced monetary value associated with the financial account less any in-event transaction amount, the ring-fenced monetary value being linked to the unique identifier code, and in-event transaction data linked to the unique identifier code; wherein the stored payment card, wearable device or electronic token are operable for providing payment for goods or services independent of and offline from communication with the financial account associated with the ring-fenced monetary value.

Optionally an amount of the ring-fenced monetary value remaining after conclusion of the ticketed event is converted to pre-stored monetary value on the stored payment card, wearable device, or electronic token according or at a re

The stored payment card, wearable device, or electronic token the in-event transaction data is encoded. An electronic purse/wallet may be, for example, the type used by shops and supermarkets in conjunction with a customer loyalty scheme in order to encourage customer loyalty.

In the aforementioned embodiments where the method is used in combination with an account associated with a monetary value, it is appreciated that additional security is provided for the user because in the event of loss of

In some methods, data derived from a user’s geo location data may be combined with other data in order to provide a user with vouchers or to send a user a message about possible special offers or promotions at the event.

Optionally the token may be embedded in a wrist band or other wearable device, or in a piece of technology such as a phone or phone case.

Preferred embodiments of the invention will now be described by way of example only and with refer to the Figures in which:

Brief Description of the Figures

Figure 1 shows an overall diagrammatic view of a first method according the first aspect of the present invention;

Figure 2 shows the first three steps of the method of Figure 1 in detail as well as the chip of a smart card for use with the method of Figure 1 ;

Figure 3 shows the first four steps of a second method according to the first aspect of the present invention;

Figure 4 shows the next four steps of the second method; and

Figure 5 shows the final two steps of the second method.

Detailed Description of Preferred Embodiments of the Invention

Figure 1 is a diagram outlining the steps of and parties involved in a first method according to the first aspect of the present invention.

The seven parties involved in the method outlined in Figure 1 are: a Card Bureau, who manufactures smart cards for sue with the method; a payment processor (PP), who manages the transfer of funds between the nominated financial account and the smart card; Qpay, the payment broker; a Cardholder, who is a customer attending an event and who obtains a smart card for spending pre-authorised funds at the event; an Event Hardware Supplier (EHS); a ticketing company; and the Event Organiser.

In the method illustrated in Figure 1 , the payment broker (Qpay) acquires and provides a smart card to a customer attending an event (the customer), upon arriving at the event the customer utilises equipment provided by the Event Hardware Supplier to ring-fence a set amount of funds in a nominated bank account for spending at the event using the smart card, which acts as a stored-value payment card for the duration of the event. When or after the customer leaves the event funds are transferred from the ring-fenced amount in the nominated bank account in order to settle the transactions made by the customer at the event.

Figure 1 illustrates fifteen sequentially numbered steps for performing the method, which is performed in response the customer (cardholder) ordering or requesting a smart card for use at supporting events.

In the first step of the method the payment broker orders the smart card with the payment processor, the card having a unique identifier code (referred to as Proxy ID in Figure 1 ); the unique identifier code may be provided by the payment broker. For example, the payment broker may provide the payment processor with a batch file with a plurality of unique identifier codes for different smart cards.

In the second step, the payment processor creates EMV personalisation records for the smart card using data provided by the customer (cardholder) and then passes this information along with the unique identifier code to the card bureau, who manufactures the smart card. In the third step, the smart card is delivered to the customer (cardholder) from the card bureau.

The first and second steps as well as a smart card for use with the first method are shown in more detail in Figure 2.

In the fourth step, the ticketing company issues an event ticket to the cardholder, for example electronically. The event ticket being a ticket for an event at which equipment of the event hardware supplier for use of the smart card will be present. In the fifth step of the method ticketing information which associates the customer (cardholder) with their event ticket is provided to the payment broker (QPay), after which the payment broker (QPay) may associated or link the unique identifier code of the customer’s smart card to their ticket or ticket entitlement.

In alternative embodiments of the invention these fourth and fifth step of the method may occur before the first second and third steps. For example, the customer may order or request a smart card for use at an event when or after they purchase a ticket for the event. Upon doing so the ticketing information may then be provided to the payment broker (Qpay) who may proceed to order a smart card for that customer (step 1 ).

In the sixth step, after the cardholder arrives at the event, they scan their smart card using hardware provided by the Event Hardware Supplier (EHS). The hardware is a read/write near field communication (NFC) contactless device for communicating with the smart card using a unique set of application protocol data unit (APDU) commands in order to retrieve the cards unique identifier code. The cards unique identifier code preferably having been stored on a secure portion of the smart card’s chip’s memory.

The NFC contactless device may be connected to the internet and may communicate the unique identifier code to the payment broker, alternatively the device may be offline. The device or the payment broker may verify that the unique identification code is associated with an event ticket and that the smart card or cardholder are entitled to enter the event.

In the seventh step of the method, the NFC contactless device or another device provided by the event hardware supplier makes an access request to the payment broker using the payment broker’s API. The payment broker responds indicating whether the smart card is valid and indicating an amount of funds (spend value) to be ring-fenced in step 8.

In the eighth step of the method the event hardware supplier or device thereof request that the payment broker confirm the customer is entering the event and requests that the payment broker ring-fence the amount of funds in the nominated bank account. In the ninth step of the method the payment broker ring-fences or removes the amount of funds from the nominated bank account so as to ensure that the at the end of the event sufficient funds will remain in the account to settle any transactions made using the smart card.

In the tenth step of the method the payment broker responds with a success message to the event hardware supplier or device thereof, in response to which the event hardware supplier or device thereof will write an in-event balance to the chip of the smart card equal to the amount of funds.

In the eleventh step of the method transactions are made at vendors at the event using the smart card. The transactions are made using custom payment terminals provided by the event hardware supplier. Transactions occur by checking the available in-event balance on the smart card and deducting any funds spend from the in-event balance recorded on the smart card. The updated in-event balance is written to the open read/write area of the chip on the smart card wearable device or token. This process is also achieved via NFC contactless communication.

In the twelfth step, at the end of the event the event hardware supplier or devices thereof transmit records of all the transactions undertaken using the smart card at the event to the payment broker.

In the thirteenth step of the method the payment broker calculates if there any funds remaining in the in-event balance. If there are funds remaining, then the payment broker communicates with the payment processor to credit the remaining balance back to the EMV open to spend available balance of the account, thereby effectively refunding any unspent funds.

In the fourteenth step of the method an additional settlement file is sent to the payment broker by the event hardware supplier or device thereof detailing the same transactions and the merchant view of the transactions. The event vendors thereby effectively claim the funds for the transactions that occurred at the event.

In the fifteenth step of the method the payment broker transfers an amount of funds equal to the total money spent to the event organiser. Additionally the payment broker of the event hardware supplier provides a breakdown of the spending thereby allowing the event organiser to distribute the funds to individual merchants.

Optionally a payment broker may contact other databases in order to carry out routine or random security checks, for example to verify the identity or recent spending history of a customer.

Figures 3, 4 and 5 show a second method according to the first aspect of the invention. The second method differs from the first method in that the financial account is an account made by the customer with the payment broker (Quantum), rather than a nominated bank account. In the second method, the smart card may be replaced with a wristband (wearable device) with the same contactless payment functions.

Figure 2 shows a chip EMV or smart card which has a chip embedded in it. It is the chip which switches on account data into a one-time unique code when read by the bespoke card reader. The unique code adds an additional layer of fraud protection. It does this by encoding transaction event data. This adds an additional layer of fraud protection.

Various events may occur contemporaneously or at different times. Therefore a new smart card, wearable device, or token may be ordered or procured by a payment broker from a supplier. Independently of this event a ticket to an event is purchased by a ticket user or on behalf of a ticket user.

The smart card has a chip which is personalised by a supplier with EMV payment application by the bureau and a unique proxy id specified by QPay in the card production data. EMV Chip with contactless (NFC) interface is produced by an approved bureau with DESFIRE (Trade Mark) or MIFARE Ultralight Emulation (Trade Mark).

The purchaser of the event ticket, who may also be the eventual card user, can load funds onto an EMV balance which is recorded by an issuing bank payment processor herein referred to as a nominated bank account. Alternatively, funds may be loaded onto an account with the payment broker. Funds loaded on the portion of the smart card may be spent at any participating outlet at the event which has a bespoke point of sale (POS) terminal that is EMV compatible.

The operation of the system will now be described with reference to the Proxy ID, use at the Event and what occurs after the Event.

The unique identifier code (Proxy ID) is read by a near field communication (NFC) capable reader, by presenting a unique set of APDU commands across the NFC interface to the chip, which in turn transmits the unique identifier code to the NFC reader.

This proxy ID can be used to make API requests of the card and to associate the card to other external entitlements (such as a ticket) in a PCI friendly way.

The Desfire/Mifare Emulation part of the chip (OffEMV) is a non EMV compliant read/write part of the chip that conforms to either the Desfire of Mifare standards. This part of the chip memory acts as a secure storage device. The memory is divided into segments and blocks with security mechanisms with read access control. The memory is ASIC-based and has limited computational power. Flowever, these devices are reliable, cheap and secure and therefore are widely used for electronic wallets, access control, corporate identity (ID) cards, transportation and stadium ticketing.

The EMV part of the chip however is a significant benefit of a chip card as it underpins the powerful fraud protection technology inherent in the chip. The chip provides dynamic data that cannot be known to anyone who steals a card or card number. As a consequence EMV cards are currently impossible to replicate and counterfeit because of the manner in which the data is encrypted between only the payment processor and a designated card bureau.

The chip or microchip that is embedded in the a smart card, wearable device, or token stores information required to authenticate, authorize and process transactions. No personal information is stored on the chip card.

The event technology retrieves the unique embedded card proxy from the EMV element of the chip and uses QPay API to ring-fence a pre-derived or pre- determined amount of money from the open to buy balance held in the payment processor.

The balance and associated transaction data are written to the OffEMV area of the chip for spend within the event.

The event vendors are equipped with custom hardware POS terminals which have software on them that let them transact with the offline balance stored in the OffEMV are of the chip.

After the event has concluded, any remaining balance on the OffEMV area can be de-ring-fenced and provided as credit to be transferred to the balance in the payment processor via use of the card Proxy and QPay API.

Optionally a provider may levy a handling fee for this transaction.

This transaction is actioned by presenting the chip to a hardware terminal designed to read the card proxy and action the refunding process.

It will be appreciated that variation may be made to the aforementioned embodiments without departing from the scope of the invention as defined by the claims. For example, remote storage retrieval and back-up may be provided by way of cloud-based, auto-save facility and automatic back-up systems. These enable data to be retrieved and/or verified in the event of loss or theft of a mobile communication device or a power outage or a disruption to a communication channel.

In such a situation one or more authentication checks, data retrievals or file referencing may be performed by way of communicating with and interrogating one or more remote data storage facilities, interconnected as part of a distributed ledger system. Such checks include communicating with servers or databases on which customers’ details are held and/or confirming the existence of credit; and/or an amount of funds; and/or confirming the status of the payment broker and/or verifying the identity of a guarantor, in order to reconcile data captured before an‘off-line’ event or disruption occurred, thereby enabling the system to return to a live status in a timely fashion and without loss of any data.

Claims

1. A computer implemented method for transacting a specified amount of funds from a financial account to a smart card, wearable device, or token, including the steps of:

assigning a unique identifier code to the smart card, wearable device, or token;

storing the unique identifier code in a memory on a chip on the smart card, wearable device, or token;

aggregating the unique identifier code and data identifying the financial account on a payment processor database in order to create EMV personalisation records to be encoded on the smart card, wearable device, or token;

supplying the smart card, wearable device, or token to a customer;

placing the smart card, wearable device, or token in a near field communication configuration with a bespoke contactless read/write device which is operative to connect to a payment broker;

operating the bespoke contactless read/write device in accordance with instructions from a supervisor host database to communicate the unique identifier code to the payment broker;

confirming the existence of credit in the financial account sufficient to meet the pre-authorised amount of funds;

transmitting a request for funds from the payment broker to pre-authorise (ring-fence) an amount of user specified funds from an available balance in the financial account; and

commanding the contactless read/write device to update the memory on the smart card, wearable device, or token by an amount equal to the pre-authorised amount funds.

2. A method according to claim 1 wherein a user places the smart card, wearable device or token in a near field communication with the bespoke contactless read/write device in order to purchase goods or services; and the bespoke contactless read/write device is operative to re-write an amount to the smartcard or token by deducting from the total of available funds a payment value and rewriting a new total of available funds as data in the chip memory until a reconciliation event.

3. A method according to claim 1 or 2 wherein a transaction log of payments is transmitted from the supervisor (event manager) host database (event hardware) to the payment broker (QPay).

4. A method according to claim 3 wherein the payment broker (Qpay) instructs the payment provider (PP) to deduct an event spend from the pre-authorised (ring- fenced) amount of user specified balance of funds.

5. A method according to claim 4 wherein an instantaneous balance of available funds is derived from a remote or cloud-based server for verifying an available balance on the smart card or token.

6. A method according to any of claims 3 to 5 wherein the payment processor (PP) is requested to transfer funds to a master account selected by the supervisor (event manager).

7. A method according to any preceding claim comprising the additional step of providing ticketing data associating a customer and an event ticket to the payment broker.

8. A method according to claim 7 wherein the ticketing data is aggregated with the unique identifier code and the data identifying the financial account on the payment processors database.

9. A method according to any preceding claim includes the step of: deploying the supervisor (event manager) host database (event hardware supplier) to establish a secure payment gateway from the user nominated account to the payment processor (PP).

10. A method according to any preceding claim includes use of an encryption engine to encrypt a transmission of data concerning the smart card or token.

1 1. A method according to any of claims 7 to 10 includes use of an encryption engine to encrypt a transmission of data concerning the ticketing data associating a customer and an event ticket.

12. A method according to any preceding claim wherein back-up of transactions is performed in a remote mirror database.

13. A method according to any preceding claim wherein on-site mandating is performed at the event by event hardware supplier in conjunction with the supervisor (event manager).

14. A method according to any preceding claim wherein off-site mandating is performed before an event by the payment broker (QPay) in conjunction with the event hardware supplier and event manager.

15. A method according to any preceding claim includes use of the smart card, device or token to permit access to a closed community, event or secure location.

16. A method according to any preceding claim includes transmitting a global block code to bespoke contactless read/write devices when a compromised smart card, device or token is detected.

17. A method according to claim 16 wherein the block code is transmitted to the most recently used bespoke contactless read/write device.

18. A method according to claim 16 wherein the block code triggers a lost card settlement command to be transmitted to the payment broker so that any ring-fenced credit is refunded to the nominated bank account.

19. A method according to any of claims 16 to 18 wherein the block code triggers issuance of a replacement card.

20. A method according to claim 19 wherein a command is transmitted to the payment broker (QPay) so that any unspent, ring-fenced credit is refunded to the replacement card.

21. A method according to any preceding claim wherein a choice is provided to a merchant to select a preferred payment transaction mode using the bespoke contactless read/write device or a point of sale terminal.

22. A system for transacting a specified amount of funds from a nominated bank account to a smart card, wearable device or token, comprising: a bespoke contactless read/write device which is adapted to communicate with the smart card, wearable device or token in a near field communication configuration and the bespoke contactless read/write device is operative to connect to a payment broker and receive an instruction therefrom to update a memory on the smart card, wearable device or token by a sum corresponding to an amount of a pre-authorised amount of user specified funds from a nominated bank account.

23. A system according to claim 22 comprises at least one server which includes a means for acknowledging the amount of user specified funds and storing data indicative of an amount of ring-fenced funds from a nominated bank account and storing a unique identifier code of the smart card, wearable device or token.

24. A system according to claim 22 or 23 wherein a means stores ticketing data which associates a customer and an event ticket.

25. A system according to any of claims 22 to 24 wherein a means stores the unique identifier code, the ticketing data and data identifying the nominated bank account on a payment processor database in order to create an EMV record associated with the smart card, wearable device or token.

26. A system according to claim 25 wherein an event host database is operative to connect to payment processor database in accordance with instructions from a supervisor (event manager) in order to update and/or reconcile payment records.

27. A system according to any of claims 22 to 26 wherein encryption means encrypts a signal which includes at last one of: the unique identifier code and/or the ticketing data and/or data identifying the nominated bank account and/or data identifying a server.

28. A system according to any of claims 22 to 27 wherein at least one smart card, wearable device or token is embedded in a wrist band or tag.

29. A stored payment card, wearable device, or electronic token comprising:

an NFC communication device;

a secure EMV memory portion of a chip comprising:

a unique identifier code, and

EMV personalization records associated with a financial account;

a non-EMV read/write memory portion of the chip comprising:

a ticket to an event, the ticket being linked to the unique identifier code, a ring-fenced monetary value associated with the financial account less any in-event transaction amount, the ring-fenced monetary value being linked to the unique identifier code, and

in-event transaction data linked to the unique identifier code; wherein the stored payment card, wearable device or electronic token are operable for providing payment for goods or services independent of and offline from communication with the financial account associated with the ring-fenced monetary value.

30. The stored payment card, wearable device, or electronic token according to claim 29, wherein:

an amount of the ring-fenced monetary value remaining after conclusion of the ticketed event is converted to pre-stored monetary value.

31. The stored payment card, wearable device, or electronic token according to claim 29, wherein:

the in-event transaction data is encoded.