GB2386239A

GB2386239A - Card payment dispute resolution

Info

Publication number: GB2386239A
Application number: GB0205053A
Authority: GB
Inventors: Nigel David Eades; Paul Henry Hanks
Original assignee: Individual
Current assignee: Individual
Priority date: 2002-03-05
Filing date: 2002-03-05
Publication date: 2003-09-10
Also published as: GB0205053D0

Abstract

A merchant owned dispute management resolution system 26 comprises a dispute database 30, for storing data related to disputed card payments, and a control arrangement 32. Dispute messages 22 are received by a parser circuit 36 which extracts relevant dispute information and stores this in the dispute database 30. A monitor arrangement 40 detects the presence of a new dispute, locates the relevant point of sale and creates and sends an email requesting transaction authentication documentation from the point of sale. The authentication is then digitised at the point of sale and forwarded, with a resolving message 43, to the originator of the dispute. If a response from the point of sale is delayed then the monitor arrangement will send a reminder. In one embodiment of the invention dispute messages are transferred in XML (extensible mark up language) format.

Description

Card Payment The present invention relates to card payment schemes which use credit cards, debit cards, payment cards and the like to effect payment transactions for goods or services.

The payment card market in the United Kingdom has experienced massive growth in the last ten years. For example, the number of card payment transactions which took place in 1999 was three times the number which took place in 1990. Procedures exist for customers to query items which appear on their payment card bills. These procedures require a copy of the original payment card voucher to be provided to the customer in order to resolve the query. The large rise in the number of payment transactions has led to a corresponding rise in the number of queries and thus the workload involved in dealing with them. The number of fraudulent queries has also increased. This represents a significant source of risk to the business by which the payments are effected.

The present invention provides a card payment dispute resolution system which includes: (i) a memory arranged as a database to store data relating to disputed card payments; (ii) a monitor arrangement operable to monitor the contents of the database to detect data relating to unresolved disputes and to determine a source of information to resolve those disputes, to create electronic request messages from the contents, and to send those request messages to the identified source to solicit the information required to resolve the corresponding dispute, and to receive reply messages from an identified source, the system being further operable to send a resolving message containing sufficient information to resolve the dispute.

Preferably, all messages are sent by electronic mail.

Preferably the system includes a parser arrangement operable to receive electronic messages, the messages including dispute messages which identify disputed card payments and to populate the database by parsing the contents of electronic messages received. Preferably the parser receives messages in a standard form and is operable to identify data from within the contents and which is required by the associated monitor arrangement for creation of request messages, and to populate the database with the required data, discarding data not required. Preferably the monitor arrangement sends request messages which identify the disputed card payment and the information required to resolve the dispute. The monitor arrangement may further include a deadline for reply within a request message.

The monitor arrangement may receive reply messages and be operable to create resolving messages from information contained therein. Manual authorisation may be required before a resolving message is sent. The monitor arrangement preferably loads the database with information contained in a resolving message. The monitor arrangement preferably monitors deadlines for resolving disputes, and sends reminder messages to an identified source from which a reply message has not been received.

Preferably there is provided a manual data entry arrangement by means of which the database may be manually populated with data relating to disputed card payments.

The invention also provides computer software which, when installed on a computer system, is operable as a card payment resolution system of the type defined above.

The invention further comprises a carrier medium carrying computer software as defined above.

In another aspect, the invention provides a message for use in populating the database of a card payment dispute resolution system of the type defined above, the message identifying a disputed card payment.

Preferably the message contains a reference indicator for the disputed payment. The message may identify at least one of the card holder, card holder account, transaction date, card issuer, transaction amount, merchant identifier data and the reason for the dispute. The message may have fields substantially as shown in table 1 below.

The message is preferably in a predetermined standard form to allow parsing.

The message may have a predetermined title by which the nature of the message may be automatically identified.

In another aspect, the invention provides a method of resolving card payment disputes notified to a card acquirer, in which the card acquirer sends a dispute message to a merchant, identifying a disputed card payment, and the merchant determines a source of information to resolve the dispute and sends a request message to the source to solicit the information required to resolve the dispute, wherein dispute messages and request messages are electronic and wherein request messages are generated automatically in response to dispute messages.

Request messages may be generated by means of a card payment dispute resolution system of the type set out above.

Examples of the present invention will now be described in more detail, by way of example only, and with reference to the accompanying drawings, in which: Fig. 1 is a highly schematic diagram of the various entities involved in a

typical card payment scheme within the United Kingdom, and indicating the manner in which a card payment dispute resolution system in accordance with the invention may be implemented; and Fig. 2 is a schematic diagram of the card payment dispute resolution system in accordance with the present invention.

Overview Fig. 1 illustrates an overview of the various entities involved in card payments and assists in indicating how the present invention may be implemented and used.

In Fig. 1, a user 10 has an agreement with a payment card issuer 12, by which the user 10 is provided with a payment card (not shown) and payment card account, so that the user 10 may make purchases. In the United Kingdom, there are in excess of 100 card issuers 12.

Purchases are made with retailer businesses 14, usually called merchants. Each merchant 14 may have a large number of premises or branches 16. In the United Kingdom, there are in excess of 85,000 distinct merchants 14.

When a payment to a merchant 14 is made by means of a payment card, a slip of paper, known as a voucher, is created at the time of sale. If the user 10 is present, the user will usually sign the voucher. The voucher is retained by the merchant 14 as proof of the transaction. A busy merchant business may generate large numbers of such vouchers.

When a purchase has been made by means of payment card, the merchant 14 contacts a card acquirer, usually a bank with whom they have an arrangement. In the United Kingdom, there are relatively few, currently less than 10 card acquirers 18.

Card acquirers 18 can communicate with card issuers 12 by means of various card payment schemes 20, which act as intermediaries. Well known payment schemes 20 include the VISA and MASTERCARD schemes. Thus, a scheme 20 passes details of the transaction from the card acquirer 18 to the card issuer 12, who in turn includes details of that transaction on the account of the user 10. A statement of account is commonly sent to the user 10 on a monthly basis from the card issuer 12.

In the event that the user 10 queries any item on the account, for example by denying that the transaction is valid, the card issuer 12 will require the card acquirer 18 to produce a copy of the corresponding voucher. In payment schemes 20 operating in the United Kingdom, a deadline (between 40 and 50 days, for example) is set for fulfilling this voucher request.

In accordance with the present invention, notification of a card payment dispute to a card acquirer 18 from a card issuer 12 results in the acquirer 18 sending a dispute message 22 to the merchant 14, identifying the disputed card payment. The merchant 14 then determines a source of information (in the manner which will be described more fully below) to resolve the dispute, and sends a request message 24 to the identified source, to solicit the information required to resolve the dispute. Request messages 24 are electronic. Request messages 24 are generated automatically in response to dispute messages 22, in the manner which can now be described more fully. Dispute messages 22 are preferably also electronic, but may be entered manually into the system.

Merchant System Fig. 2 illustrates the merchant system in more detail. The merchant system 26 includes a dispute management system 28 which includes memory arranged as a dispute database 30, for storing data relating to disputed card payments. A control arrangement 32 works in conjunction with the dispute database 30 to form the dispute management system 28. Dispute messages 22 are received by a parser circuit 36. The dispute message 22 will be an electronic

mail message and may be received over the internet or a dedicated network from a card acquirer 18. The parser 36 is configured to identify a dispute message 22, for example by detecting a predetermined message title.

A dispute message 22 is sent in a standard, predetermined form from a card acquirer 18, so that, once the parser 36 has detected the message as a dispute message 22, the parser 36 may commence parsing the message to extract data from it, and populate the fields of the dispute database 30 with the appropriate data taken from the dispute message 22.

In this way, each incoming dispute message 22 is used to populate the dispute database 30, which therefore builds up a full record of all dispute messages 22 received by the merchant 14.

It is preferred that a standard predetermined message format is used by all card acquirers and all merchants, so that all card acquirers can deal with all merchants in the system, and vice versa. However, a particular merchant may decide to use only some of the data fields in the standard format. Similarly, a merchant may not require all of the data which a particular acquirer chooses to send. More details of the message format and handling are set out below.

Once the parser 36 has populated the database 30, the control arrangement 32 may further act on the database contents 30, for example to add index data, or the like, to the database entries. The control arrangement 32 may also be used to populate the database 30 with data received from a manual data entry terminal 38. This allows data to be entered into the dispute database 30 from a card acquirer 18 who does not communicate with the merchant 14 by electronic mail. The terminal 38 may also be used for other control purposes, system administration etc.

In addition to the dispute management system 28, the merchant 14 is provided with a monitor arrangement 40 which periodically or continuously monitors the contents of the dispute database 30. In particular, the monitor

arrangement 40 monitors for new entries in the dispute database 30, that is, entries arising from newly received dispute messages. This is effected by communication with the control arrangement 32. When the monitor arrangement 40 detects a database entry which relates to a new or otherwise unresolved dispute, the monitor arrangement 40 seeks to determine a source of information to resolve the dispute. This may be selected, for example, by reference to the merchant outlet at which the transaction took place. Having done this, the monitor arrangement 40 creates an electronic mail request message 24 and sends the request message 24 to the identified source of the resolving information. The request message solicits the information required by the merchant 14 to resolve the corresponding dispute.

Identifying the appropriate address to which to send a request message 24 may not require all of the information received in the standard form dispute message 22. For example, a merchant 14 with only one branch will not require information from a field which identifies an individual branch. The parser 36 is preferably configured to discard any information not required by the systems operating within the merchant 14.

Once the monitor arrangement 40 has sent a request message 24 to a branch 16, the arrangement 40 will wait for a reply message 42 from that branch or other source of resolving data. The dispatch of the request message 24 is preferably noted in the database 30 by the monitor arrangement 40. This allows the monitor arrangement to allow an appropriate time for receiving a reply message 42, and to monitor for request messages 24 to which a reply message 42 is unduly delayed. In those instances, the monitor arrangement 40 may issue a reminder message according to a predetermined workflow of times and frequencies.

A request message 24 received by a branch 16 prompts personnel in that branch to retrieve the payment voucher corresponding to the queried transaction. An image of this voucher is then created as a data file, for example by scanning the image of the voucher. The scanned image then forms part of

the reply message 42 sent to the monitor arrangement 40, for example as an attachment.

When a reply message is received by the monitor arrangement 40, the dispute database 30 is appropriately updated. In addition, the parser 36 operates to construct a resolving message 43 to be sent back to the card acquirer 18. This resolving message will include a copy of the encoded image file. The card acquirer 18 has therefore been provided with the copy required for resolving the dispute, which can be passed on to the customer 10, via the payment scheme 20 and card issuer 12.

In addition to the dispute database 30, the merchant system 26, within the merchant 14 may incorporate a management database 44, in which the monitor arrangement 40 maintains a record of management information such as statistics on the number of disputes received, the number outstanding, the number resolved, the speed of resolution etc. This allows a manager to monitor the financial implications to the business arising from unresolved disputes. In the event that a copy of the voucher cannot be provided to the card acquirer 18 within a set reply period, the query will go undefended and consequently, the merchant will be required to credit the amount of the transaction, thus causing the merchant to provide a credit even if the transaction was in fact valid, but the merchant was unable to provide a copy of the voucher in time.

It is envisaged that the merchant system described above can be implemented by means of an appropriately programmed data processing arrangement such as a general purpose computer, within which, the parser 36, dispute management system 28, monitor arrangement 40 and management database 44 may all be implemented by means of appropriate software modules.

Dispute Messages In one preferred example of the present invention, dispute messages 22

are sent in a standard format in a file structure of the type known as XML (extensible mark-up language). The XML message will have a number of fields, which may be identified and described as follows: Table 1

FIELD DESCRIPTION Case Main Case tag. Only contains 1 child element.

Details Child of Case tag. Contains 16 child elements.

ACC~NO The Cardholder Account Number.

TRANS~DATE The Transaction Date.

Format: (yyyy/mm/dd) CARD-SCHEME Identifies the card scheme.

TRANS~AMT The Transaction Amount formatted to two decimal places.

TRANS~CURR This is the ISO numeric currency code.

ACQUIRER~ID Identifies acquirer.

ACQUIRER~CASE~ID Acquirer System Case Identifier. Created by the acquirer.

REPLY-DATE Date by which the reply must be sent to the acquirer.

Format: (yyyy/mm/dd) MERCHANT The Merchant Number.

OUTLETJD The Internal Store Number.

EMAIL The Email address of the Person to reply to.

REQUEST. Identifies the type of request.

COMMENT The Reason for the Request.

REASON. Request Reason Code.

TERMINALNUMBER The Terminal or Till Number.

SEQUENCE~ Sequence number.

MERCH~INTERNAL~REF Merchant Internal Reference number.

The data structure set out above can be embodied in an XML file in the following manner: < Case > < Details >

< ACC~NO > 1232343454356765678 < /ACC~NO > < TRANS~DA TE > 2001/12/10 < /TRANS~DA TE > < CARDSCHEME > V < /CARDSCHEME > < TRANS~AMT > 214. 99 < /TRANS~AMT > < TRANS~CURR > 2 < /TRANS~CURR > < ACQUIRERID > AZ < /ACQUIRER. ID > < ACQUIRER~CASE~ID > 546 7-10FEBOl < /ACQUIRER~CASE~ID > < REPLYDATE > 2001/11/25 < /REPLYDATE > < MERCHANT ~ID > 123456 < /MERCHANT ~ID > < OUTLET ~ID > 98 7654321 < /OUTLET ~ID > < EMAIL > Someone&commat;Somewhere. com < /EMAIL > < REQUEST - TYPE > CR < /REQUEST ~TYPE > < COMMENT > Need documentation for the following case < /COMMENT > < REASON~CODE > 01 < /REASON~CODE >

< TERMINAL~NUMBER > 12 34 56 78 < /TERMINALNUMBER > < SEQUENCLNUMBER > 12 345 < /SEQUENCE~NUMBER > < MERCH~INTERNALREF > 123456 7890 < /MERCH~INTERNAL-REF > < /Details > < /Case > It is preferred that all dispute messages 22 are sent in the same format, between all card acquirers and all merchants. Accordingly, this format forms

part of the present invention. The parser in each merchant system allows the information required by the merchant 14 to be selected from the incoming message, and for the remainder of the information to be discarded. The parser is preferably also able to detect a message which has been sent to the wrong merchant, and to send it back to the acquirer.

The use of electronic messages, in conjunction with parsing and software controlled generation of messages, allows the speed of resolving a request to be increased significantly, in relation to what is now possible. For example, we envisage that a target time for resolution could be as short as 5 days.

Many variations and modifications can be made to the apparatus described above, without departing from the scope of the present invention. In particular, many formats for electronic mail messages can be devised, according to the requirements of the commercial arrangements. Many different hardware and software choices can be made while still allowing a system of the type described above to be created. Many elements of the present invention can be implemented by means of appropriately programmed, general purpose computers, such as personal computers, servers or the like.

Whilst endeavouring in the foregoing specification to draw attention to those features of the invention believed to be of particular importance it should be understood that the Applicant claims protection in respect of any patentable feature or combination of features hereinbefore referred to and/or shown in the drawings whether or not particular emphasis has been placed thereon.

Claims

CLAIMS 1. A card payment dispute resolution system which includes: (i) a memory arranged as a database to store data relating to disputed card payments; (ii) a monitor arrangement operable to monitor the contents of the database to detect data relating to unresolved disputes and to determine a source of information to resolve those disputes, to create electronic request messages from the contents, and to send those request messages to the identified source to solicit the information required to resolve the corresponding dispute, and to receive reply messages from an identified source, the system being further operable to send a resolving message containing sufficient information to resolve the dispute.
2. A system as claimed in claim 1 wherein all messages are sent by electronic mail.
3. A system as claimed in claim 1 or claim 2 wherein the system includes a parser arrangement operable to receive electronic messages, the messages including dispute messages which identify disputed card payments and to populate the database by parsing the contents of electronic messages received.
4. A system as claimed in claim 3 wherein the parser arrangement receives messages in a standard form and is operable to identify data from within the contents and which is required by the associated monitor arrangement for creation of request messages, and to populate the database with the required data, discarding data not required.
5. A system as claimed in any preceding claim wherein the monitor arrangement sends request messages which identify the disputed card payment and the information required to resolve the dispute.

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6. A system as claimed in any preceding claim wherein the monitor arrangement includes a deadline for reply within a request message.
7. A system as claimed in any preceding claim wherein the monitor arrangement receives reply messages and is operable to create resolving messages from the information contained therein.
8. A system as claimed in any preceding claim wherein manual authorisation is required before a resolving message is sent.
9. A system as claimed in any preceding claim wherein the monitor arrangement loads the database with information contained in a resolving message.
10. A system as claimed in any preceding claim wherein the monitor arrangement monitors deadlines for resolving disputes, and sends reminder messages to an identified source from which a reply message has not been received.
11. A system as claimed in any preceding claim wherein the system is provided with a manual data entry arrangement by means of which the database is manually populated with data relating to disputed card payments.
12. A system substantially as hereinbefore described with reference to the accompanying drawings.
13. Computer software which, when installed on a computer system, is operable as a card payment resolution system as claimed in any of claims 1 to 12.
14. A carrier medium carrying computer software as claimed in claim 13.
15. A message for use in populating the database of a card payment dispute resolution system as claimed in any of claims 1 to 12, the message identifying a

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disputed card payment.
16. A message as claimed in claim 15 which contains a reference indicator for the disputed payment.
17. A message as claimed in claim 15 or 16 wherein the message identifies at least one of the card holder, card holder account, transaction date, card issuer, transaction amount, merchant identifier data and the reason for the dispute.
18. A message as claimed in any of claims 15,16 or 17 wherein the message includes fields defined substantially in table 1 of the description above.
19. A message as claimed in any of claims 15 to 18 wherein the message is in a predetermined standard form to allow parsing.
20. A message as claimed in any of claims 15 to 19 wherein the message has a predetermined title by which the nature of the message may be automatically identified.
21. A method of resolving card payment disputes notified to a card acquirer, in which the card acquirer sends a dispute message to a merchant, identifying a disputed card payment, and the merchant determines a source of information to resolve the dispute and sends a request message to the source to solicit the information required to resolve the dispute, wherein dispute messages and request messages are electronic and wherein request messages are generated automatically in response to dispute messages.
22. A method as claimed in claim 21 wherein the request messages are generated by means of a card payment dispute resolution system as claimed in any of claims 1 to 12.
23. A method of resolving card payment disputes substantially as hereinbefore

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described with reference to the accompanying drawings.
24. Any novel subject matter or combination including novel subject matter disclosed herein, whether or not within the scope of or relating to the same invention as any of the preceding claims.