GB2566591A

GB2566591A - Dynamic currency conversion system and method

Info

Publication number: GB2566591A
Application number: GB1811741.6A
Authority: GB
Inventors: Michael Ling James
Original assignee: Currency Select Pty Ltd
Current assignee: Global Blue Payments Australia Pty Ltd
Priority date: 2018-07-18
Filing date: 2018-07-18
Publication date: 2019-03-20
Also published as: GB201811741D0

Abstract

The dynamic currency conversion system 100 comprises a transaction terminal 10 and a dynamic currency conversion host 20, the transaction terminal having an input interface, and the transaction terminal and the host having communication interfaces, where a qualification request message is sent from the transaction terminal to the host, the request message including an identification of a local currency and a conversion currency where the conversion currency is a cryptocurrency, where the host determines a cryptocurrency conversion rate in response to the message and transmits a response message to the transaction terminal. Preferably the local currency is a fiat currency. Preferably the request message includes a transaction amount in the local currency of the transaction terminal and the response message includes a converted transaction amount for the cryptocurrency and the conversion rate between the local currency and the cryptocurrency.

Description

DYNAMIC CURRENCY CONVERSION SYSTEM AND METHOD

BACKGROUND

The present invention relates to a system that can offer a user an alternative currency for payment.

A typical transaction terminal system, for example an automatic teller machine, a point of sale terminal, an online e-commerce channel, a workstation of the like, will offer transactions in a currency local to the transaction terminal system. However, sometimes users would wish to make a transaction in an alternative currency, such as a cryptocurrency.

There is a need to identify payments for which a user may wish to make a payment in a currency other than the currency local to the transaction terminal system and provide a means to facilitate such a payment. Some approaches to provide for the automatic determination of a currency for dynamic currency conversion have been proposed.

SUMMARY

One aspect can provide a transaction terminal system that includes at least one input interface. The transaction terminal system also includes a communications interface to connect to a remote host system and processing logic operable to transmit a qualification request message to the host system to identify a currency conversion rate, and to receive a response message from the host system. The qualification request message includes an identification of a local currency for the transaction terminal system and a conversion currency, wherein the conversion currency is a cryptocurrency.

Another aspect can provide a dynamic currency conversion host system that includes a host communications interface to connect to a transaction terminal system. The dynamic currency conversion host system also includes host processing logic operable to receive a qualification request message from the transaction terminal, wherein a qualification request message includes an identification of a local currency for the transaction terminal and a conversion currency, wherein the conversion currency is a cryptocurrency. The host processing logic determines a conversion rate in response to the qualification request message and transmits to the transaction terminal system a response message that includes the conversion rate.

A dynamic currency conversion system can include one or more such transaction terminal systems and one or more such dynamic currency conversion host systems.

Although various aspects of the invention are set out in the accompanying claims, other aspects of the invention include any combination of features from the described embodiments and/or the accompanying dependent claims with the features of the independent claims, and not solely the combinations explicitly set out in the accompanying claims.

BRIEF DESCRIPTION OF THE DRAWINGS

Embodiments are described, by way of example only, with reference to the accompanying drawings.

Figure lisa schematic block diagram illustrating an example of a configuration of 5 a payment system providing dynamic currency conversion.

Figure 2 is a block diagram illustrating an example of a transaction terminal system.

Figure 3 is a block diagram illustrating an example of a dynamic currency conversion host system.

Figure 4 is an interaction diagram illustrating an example operation of a transaction terminal system.

DETAILED DESCRIPTION

In some embodiments a “fiat currency” is understood to mean a currency which a government or legal authority has declared to be legal tender. Examples of a fiat currency include the US dollar (USD), the British pound (GBP), the Japanese Yen (JPY) and the Euro (EUR)

In some embodiments a “cryptocurrency” is understood to mean a digital asset or currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. Examples of a cryptocurrency include Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC) and Bitcoin cash (BCH). A transaction or payment may be made in a cryptocurrency as an alternative to a fiat currency. A given cryptocurrency, such as Bitcoin (BTC), has an exchange rate with a fiat currency, for example BTC1 = USD8695.

In some embodiments a “cryptocurrency wallet” is understood to mean a data store for public and private keys which can be used to receive or spend a cryptocurrency.

A transaction terminal system comprises at least one input interface, a communications interface to connect to a remote host system and processing logic operable to transmit a qualification request message to the host system to identify a currency conversion rate, and to receive a response message from the host system. The qualification request message includes an identification of a local currency for the transaction terminal system and a conversion currency, wherein the conversion currency is a cryptocurrency. This allows the transaction terminal system to facilitate transaction using dynamic currency conversion where the conversion currency is a cryptocurrency and not a fiat currency. This provides the payer with additional payment options, but also provides the merchant the flexibility to offer transactions to be performed in different currencies, in particular currencies which are not a fiat currency.

In some examples the local currency for the transaction terminal system is a fiat currency. This allows for a transaction where the payer pays in a cryptocurrency, but the merchant is settled in a fiat currency.

In some examples the response message includes the currency conversion rate. This allows the merchant and the user to be informed about the offered currency conversion rate before continuing with the transaction. Alternatively, the response message may contain an indication that the dynamic currency conversion system is not available or that a conversion rate could not be obtained for the given combination of local currency for the transaction terminal system and conversion currency.

In some examples the qualification request message includes a transaction amount in the local currency for the transaction terminal system, and the response message includes a converted transaction amount for the conversion currency. This assists the merchant and the payer in being able to transfer the correct amount in the conversion currency for the transaction.

In some examples the processing logic is operable to output via an output interface, for example a display device. This allows the conversion rate to be presented to the merchant and the payer.

In some examples the processing logic is operable to transmit an initiation message to the host system. The initiation message includes information indicative of a cryptocurrency payment having been initiated. This allows the transaction terminal system to inform the remote host system that the transaction using the cryptocurrency has been initiated.

In some examples the processing logic is operable to transmit the initiation message in response to an input from a merchant through the at least one input interface, the initiation and input indicative that a cryptocurrency payment has been initiated. In some examples the processing logic is operable to receive an acknowledgement message in response to the initiation message. As the cryptocurrency payment needs to be initiated by the payer, for example from an application on a user device such as a mobile telephone or portable electronic device, there is no way from the transaction terminal system or host system to automatically determine when the transaction using a cryptocurrency has been initiated. Providing an input on the input interface allows the merchant to manually initiate the transaction at the transaction terminal system. Alternatively, the user device used to initiate the payment may send an initiation message to the transaction terminal system.

In some examples the processing logic is configured to transmit the qualification request message in response to an input from a merchant through the at least one input interface, the input indicative that a payment in a cryptocurrency has been requested. In a similar manner to described above, the transaction terminal system is not able to automatically determine that a payer may wish to may pay using a cryptocurrency. The merchant is therefore able to provide an input to the transaction terminal system indicating that the payer wishes to pay using a particular cryptocurrency, thereby prompting the transaction terminal system to send the qualification request message.

A dynamic currency conversion host system comprises a host communications interface to connect to a transaction terminal system and host processing logic operable to receive a qualification request message from the transaction terminal, wherein a qualification request message includes an identification of a local currency for the transaction terminal and a conversion currency, wherein the conversion currency is a cryptocurrency. The host processing logic is also operable to determine a conversion rate in response to the qualification request message and transmit to the transaction terminal system a response message, such as a dynamic currency conversion (DCC) offer. This provides a means of providing a transaction terminal system with a conversion rate from a local currency for the transaction terminal and a cryptocurrency conversion currency. This allows the transaction terminal system to facilitate transaction using dynamic currency conversion where the conversion currency is a cryptocurrency and not a fiat currency. This provides the payer with additional payment options, but also provides the merchant the flexibility to offer transactions to be performed in different currencies, in particular currencies which are not a fiat currency.

In some examples the local currency for the transaction terminal system is a fiat currency. This allows for a transaction where the payer pays in a cryptocurrency, but the merchant is settled in a fiat currency. The settlement amount is also the original sale amount in the fiat currency, thereby ensuring that the merchant is not exposed to any exchange rate risk.

In some examples the qualification request message includes a transaction amount in the local currency for the transaction terminal system, the host processing logic is operable to determine a converted transaction amount for the conversion currency from the transaction amount in the local currency for the transaction terminal system and the exchange rate and the response message includes a converted transaction amount for the conversion currency. This allows the merchant and the user to be informed about the offered currency conversion rate before continuing with the transaction and assists the merchant and the payer in being able to transfer the correct amount in the conversion currency for the transaction. In some examples the response message includes the conversion rate. Alternatively, the response message may contain an indication that the dynamic currency conversion system is not available or that a conversion rate could not be obtained for the given combination of local currency for the transaction terminal system and conversion currency.

In some examples the response message also includes an address for a cryptocurrency wallet to send the converted transaction amount to. This can then be provided to the merchant and/or the user in order to initiate the cryptocurrency payment. This also allows the dynamic currency conversion host system to use a unique wallet address for each transaction, improving the security of the system, since the wallet address is provided in the response message rather than being stored at the transaction terminal system.

In some examples the host processing logic is operable to receive an initiation message from transaction terminal, the initiation message including information indicative of a cryptocurrency payment having been initiated. This allows the host system determine that the cryptocurrency payment having been initiated. The host processing logic may then be operable to monitor the cryptocurrency wallet for new deposits or payments. In some examples the host processing logic is operable to transmit an acknowledgement message in response to the initiation message.

In some examples the system also comprises storage operable to store conversion rates for a plurality of currencies. This can be used by the host system to determine exchange rates without having to obtain exchange rates from a third party source.

In some examples the host processing logic is operable to obtain, in response to receiving the qualification request message, a base conversion rate for the local currency for the transaction terminal and the conversion currency. The base conversion rate may be obtained from the storage or by transmitting a request to a rate provider via a network and receiving a base conversion rate in a response message. In some examples the base conversion rate is the conversion rate whilst in others the conversion rate corresponds to the base conversion rate and a predetermined margin. This allows the host system to apply a margin to the base conversion rate in order to protect itself from fluctuations in the base conversion rate between the response message being transmitted and the payment being received in the cryptocurrency wallet. In some examples the storage is operable to store the margin.

In some examples the system comprises at least one cryptocurrency wallet to facilitate cryptocurrency transactions. One of the cryptocurrency wallets is configured to receive a payment corresponding to the converted transaction amount for the conversion currency from an application on a user device. The address of this one cryptocurrency wallet may be provided in the response message. This allows the user to transfer the converted transaction amount for the conversion currency to the host system as part of the process of initiated the payment transaction.

In some examples the host processing logic is operable to transmit a confirmation message to the application on the user device. The confirmation message indicating that that the payment has been received. Alternatively, the confirmation message is transmitted to a different application on the user device, for example as an SMS message or e-mail. The confirmation message informs the user that the payment has been received by the host system and thereby acknowledges that the correct amount has been transferred from the payer to the host system. The host system may be configured to compare the payment received with the converted transaction amount and only send the confirmation message if the two amounts are the same.

Figure 1 is a schematic block diagram illustrating an example of a payment system 100. Figure 1 illustrates a transaction terminal system (or transaction station system) 10 that includes card payment functionality and additionally includes dynamic currency conversion (DCC) system functionality. The transaction terminal system 10 can be configured as a point of sale terminal located, for example, in the premises of a retailer, or may, for example, be an automated teller machine. DCC provides a means of allowing a user to make a payment or transaction in a currency other than the local currency of the merchant using the transaction terminal system 10. It will be appreciated that the term “transaction terminal system” includes an automatic teller machine, a point of sale terminal, an online e-commerce channel and a workstation of the like.

The transaction terminal system 10 can include one or more interfaces for receiving card payment and purchase details. In some examples the transaction terminal system 10 is in communication via a communications network (for example via the Internet, a telephone network or another network) with a computer system of an acquirer bank 25 that provides banking services for the retailer, for example as part of processing a card payment as known in the art.

In the following, further detail will be given of rate request and rate response messages passed between the transaction terminal system 10 and the DCC host system 18 to determine whether a DCC operation is to be performed.

For example, with a card based transaction, on confirmation of a currency for a transaction, the transaction terminal system 10 can be operable to transmit an authorization request message or a financial presentment request message or a financial presentment advice message or clearing message (e.g., for the card holder’s home or billing currency) to the issuing financial institution via the acquirer bank system.

Figure 2 is a schematic block diagram of an example of a transaction terminal system 10. The example transaction terminal system 10 illustrated in Figure 2 includes one or more processors 110 including processing logic, storage 160 (which can include volatile and non-volatile memory and storage), for the storage of programs and data. Figure 2 illustrates that the storage 160 includes a card processing application forming a card processing (CP) application module 164 and a DCC application forming a DCC module 162.

The storage 160 may also contain other files, such as reference country and/or currency information 165, a local currency card file 166 that identifies cards that have been issued in a currency local to the terminal (which file can take various forms including, for example, an Issuer Identification Number/Bank Identifier Number (IIN/BIN)) and a foreign currency table 168. The reference country and/or currency information 165, the local currency card file 166 and the foreign currency table 168 may be used by the transaction terminal system to initiate and perform transactions using DCC as known in the art.

Figure 2 also represents, schematically, input interfaces such as a keyboard/keypad 130, a scanner 135 and a card reader 125. The keyboard/keypad 130 can be keyboard/keypad with separate keys, or can be configured as a touch screen keyboard/keypad and can be used for the input of numerical and/or other characters as appropriate. The scanner 135 can, for example be a bar code scanner, an RFI tag scanner, QR code scanner or the like. The card reader 125 can be configured to read data from a payment card. The card reader 125 can be a magnetic stripe reader, a contact chip card reader, a contactless chip card reader, an RFI tag reader, etc., as appropriate. Also, where appropriate, the card reader 125 can also be operable to write information to a suitably configured payment card.

Figure 2 further represents, schematically, a display 120, a printer 140 and a communication interface 150. The display 120 can be a numeric display, an alphanumeric display, an image display, etc., as appropriate to display input data and/or messages to assist the user (e.g., a payment card holder) and/or a retailer/merchant in operation of the transaction terminal system 10. The printer can be used for printing purchase receipts and/or other information. The communications interface 150 enables communications via one or more communications channels 155 from the transaction terminal system 10 to the DCC host system 20, either directly or via an intermediate network (not shown).

In the example described above, the transaction terminal system 10 is a payment acceptance device or an automated teller system or a point of sale system. However, it should be understood that the transaction terminal system 10 could also be in the form of a workstation connected to the Internet. The transaction terminal system 10 may also be fully or partially integrated into the transaction system of a hotel, theatre, retail establishment, or the like.

Figure 3 is a schematic block diagram of an example of a DCC host system 20. The example DCC host system 20 illustrated in Figure 3 includes one or more processors 210 including processing logic, storage 260 (which can include volatile and non-volatile memory), for the storage of programs and data. Figure 3 illustrates that the storage 260 includes one or more DCC programs forming a DCC module 262 and one or more data tables including a home currency file 266, currency conversion, or exchange rate tables 264, a country to currency table 265 and a default currency table 268. It should be noted that the storage 260 can contain other applications and data.

The DCC host system 20 also includes one or more cryptocurrency wallets 270 for sending and receiving a particular cryptocurrency. The DCC host system 20 may have a single cryptocurrency wallet 270 for each cryptocurrency the DCC host system 20 is configured to accept, or it may have a plurality of cryptocurrency wallets 270 for one or more particular cryptocurrencies. For example, a particular cryptocurrency wallet 270 may correspond to a particular cryptocurrency, and a unique cryptocurrency wallet address within the particular cryptocurrency wallet 270 may be used for each transaction using the particular cryptocurrency. Each cryptocurrency wallet 270 has a unique address which may be used to send payments to the cryptocurrency wallet 270.

The home currency file 266, currency conversion, or exchange rate tables 264, a country to currency table 265 and a default currency table 268 can be used by the DCC host system 20 to perform transactions using DCC as known in the art.

Figure 3 further illustrates a printer 240 and a communications interface 250. The printer can be used for printing system data. The communications interface 250 enables communication via one or more communication channels 255 with the transaction terminal system 10, rate providers 50A-C and acquirer bank systems (not shown), either directly or via intermediate networks 40.

Figure 4 is an interaction diagram illustrating DCC operations for a cryptocurrency payment transaction performed by a transaction terminal system 10.

The transaction terminal system 10 is initially in an idle state. When a payer (e g., a customer in a store) wishes to conduct a transaction (for example to make a payment) the transaction terminal system 10 is configured to enable the card reader 125 and/or the scanner 135 in order to facilitate the payer conducting the transaction using a payment card an electronic means, such as an application on a mobile telecommunications device. The card read 125 and or the scanner 135 may be enabled in response to an input from the merchant, for example pressing a key on the keyboard 130 corresponding to an initiate payment function.

Conventional DCC systems operate by offering a fiat billing currency as an option to the payer using an eligible and participating payment card brand, such as Visa and MasterCard. A DCC offer involves converting one fiat currency (the local currency of the merchant) to another fiat currency (the payer billing currency) using a method to identify the payer billing currency. An option to pay in a cryptocurrency as an alternative to paying the merchant in the merchant sale (fiat) currency may be included as a feature of the transaction terminal system 10. Instead of making the payment in a fiat currency, the payer may wish to make the payment in a cryptocurrency. A payment using a cryptocurrency may be initiated by the payer requesting to pay in a cryptocurrency, or the merchant may ask to payer if they wish to make the payment in a cryptocurrency. The transaction terminal system 10 may be configured to prompted the merchant to ask the payer if they wish to make a payment using a cryptocurrency, for example by displaying a notification on the display 120 after an item for purchase has been scanned using the scanner 135 or in response to the merchant pressing a key on the keyboard 130 corresponding to an initiate payment function.

Unlike existing DCC methods, the transaction terminal system 10 cannot automatically detect which cryptocurrency to convert the merchant sale amount to. The transaction terminal system 10 is therefore configured to accept an input of a particular cryptocurrency. For example, the transaction terminal system 10 may be configured to display on the display 120 a menu containing a list of cryptocurrencies, for example as a list, drop-down box or menu of cryptocurrencies for the merchant or user to make a selection of a particular cryptocurrency. The user or the merchant is then able to make a selection of a particular cryptocurrency, for example using the keyboard 130. A merchant may first choose to perform a payment using a cryptocurrency on the transaction terminal system 10. The list of cryptocurrencies may be stored as a standalone file in the storage 160 or as part of foreign currency table 168.

Once the particular cryptocurrency has been chosen, the transaction terminal system 10 sends a DCC qualification request to the DCC host system 20 using the communications interface 150 and communications channel 155. The DCC qualification request may contain information such as an identifier for the transaction terminal system 10, the sale amount in the local fiat currency of the merchant and the cryptocurrency selected.

The DCC host system 20 is configured to convert the sale amount in the local fiat currency of the merchant to the chosen cryptocurrency by accessing a base exchange rate and applying the designated margin (for example 1%, 4% or 10%) to derive an offered amount in cryptocurrency. The base exchange rate may be stored in a file in the storage 260, for example the rate tables 264. In some examples the DCC host system 20 has a separate or parallel administration process configured to create a base exchange rate in real-time from a basket of exchange rates obtained from one or more market rates from multiple rate providers 50A-C, such as https://www.coinbase.com/ and https://www.btcmarkets.net/. These rate providers are communicated with via the network 40 and using the communication interface 250 and one or more communication channels 255. The method of obtaining a base market rate could be via an application programming interface (API) at each of the rate providers 50A-C. Alternatively, the market rate at a data aggregator, such as the rate at https://coinmarketcap.eom/currencies/bitcoin/#markets may be used. The market data at data aggregators is derived from multiple exchanges worldwide. It will be appreciated that cryptocurrency exchange rates typically vary in realtime in the same manner as fiat currency exchange rates. Accordingly, the DCC host system 20 may be configured to maintain a record of the most recent exchange rates for each cryptocurrency in a table in storage 260, such as the rate table 264. The DCC host system 20 may be configured to update the rates in the rate table 264 periodically, for example every minute or every hour. Alternatively, the DCC host system 20 may be configured to obtain a base market rate in response to each DCC qualification request received.

The DCC host system 20 is also configured to maintain a table of suitable margins, for example in the rates table 264, based on an average cost of converting the cryptocurrency back to the merchant sale (fiat) currency using known currency exchanges.

The margin applied to the base exchange rate is configurable. For example, the margin might vary depending on which cryptocurrency is chosen in order to reflect the underlying buy-sell spreads that can be accessed via the various exchanges in used to generate the base exchange rate. In other words, the margin allows the DCC host system 20 to account for the risk of fluctuations in the base market rate whilst also accounting for any overheads incurred by the DCC host system 20 in supplying the service.

Once the converted amount is derived, the DCC host system 20 sends a DCC offer to the transaction terminal system 10 are a response message. The DCC offer may contain the currency exchange rate, or the response message may contain an indication that a DCC transaction for the particular cryptocurrency is not possible. The DCC offer may also contain the converted amount (now in the relevant cryptocurrency), the effective exchange rate, the wallet address pertaining to the cryptocurrency wallet 270 of the DCC host system 20 for the chosen type of cryptocurrency and, optionally, one or more other data elements to the transaction terminal system 10. In an example, the DCC host system 20 returns a URL link to a page the DCC host system 20 hosts, the page containing a QR code representing the wallet address. The transaction terminal system 10 is then configured to display this page to the payer on the display 120. In other words, the page is an offer page displaying the original merchant sale amount, the converted amount in the particular cryptocurrency, a QR code for the wallet address and the effective exchange rate. Other additional data, such as a current timestamp and a duration remaining for the offer page, may also be displayed on the page. The page is rendered by the DCC host and hosted on a web-site belonging to the DCC host system 20. The page is served to the embedded browser screen on the transaction terminal system 10. Alternatively, the application software in the transaction terminal system 10 may be configured to render a QR code. In this case, the application software is configured to render a QR code using the information received from the DCC host system 20, including the cryptocurrency wallet address.

Alternatively, the transaction terminal system 10 may be configured to print an invoice using the printer 140. The invoice would contain the same elements as the page described above, such as the QR code.

The payer then transfers the appropriate amount of the selected cryptocurrency at the point-of-sale (POS). For example the payer could launch a cryptocurrency wallet application on a user device 30, such as a mobile telephone or portable electronic device. The user is then able to elect to pay the amount in the relevant cryptocurrency (for example, pay 0.01 BTC). The payer scans the QR code provided at the transaction terminal system 10 using the cryptocurrency wallet application on the user device 30. The cryptocurrency wallet application would initiate the payment.

The QR code may contain the converted amount in the particular cryptocurrency as well as the wallet address. In some examples, the QR code may only be valid for a certain length of time, for example 30 seconds, 1 minute or 5 minutes. The length of time that the QR code is valid for may be configurable by the DCC host system 20. After the length of time has elapsed and the QR code is no longer valid, the DCC is configured to generate a new QR code and update the page hosted by the DCC host system 20 to display a new QR code. The new QR code represents a new wallet address and, optionally, a new converted amount in the particular cryptocurrency. The new QR code is then displayed for the length of time, at the end of which the new QR code expires and a further QR code is generated and displayed on the page. This reduces the risk of the payer delaying initiation of the payment. Since payment must be initiated by the payer, the DCC host system 20 may be configured to accept payments into cryptocurrency wallets specified in expired QR codes. For example, the DCC host system 20 may allow payments into cryptocurrency wallets specified in the last 5 or 10 QR codes.

The transaction terminal system 10 is configured to allow the merchant to manually indicate when the payer has completed the process of initiating the payment as described above. For example, the merchant may press a button on the keyboard 130 or a box on the display 120 of the transaction terminal system 10 in order to provide an indication to the transaction terminal system 10 that the payer as initiated the payment process. The transaction terminal system 10 then sends an initiation message to the DCC host system 20 indicating that the payment process has been initiated. The DCC host system 20 is configured to send an acknowledgement response with an authorisation approval to the transaction terminal system 10 indicating that the payment process has been authorised. In some example, having received this acknowledgement, the transaction terminal system 10 is configured to print a receipt, using the printer 140, for the payer indicating that the payment as been authorised.

In some examples, the payment process is a two step process. In the first step, the payer initiates the payment process and receives an authorisation approval from the DCC host system 20. In the second step, the settlement of the transaction amount in the merchant local amount is confirmed between the DCC host system 20 and the transaction terminal system 10. For example, an unsolicited one-way message may be transmitted from the DCC host system 20 to the transaction terminal system 10 only when the DCC host system 20 has received the cryptocurrency in the wallet specified in the wallet address. In this case the DCC host system 20 is configured to send a confirmation message to the user device 30 once the cryptocurrency arrive has been received in the wallet.

The DCC host system 20 may be configured to guarantee settlement to the merchant for the original sale value in local merchant fiat currency once the merchant manually indicates that the payer has initiated the payment process in cryptocurrency. In this case, the DCC host system 20 takes the risk that the payer’s attempt to pay in the cryptocurrency might fall through or fail in some way. The DCC host system 20 may be configured to guarantee settlement to the merchant for the original sale value in local merchant fiat currency this based on, for example, the proportion of cryptocurrency payments that fail to settle for that particular merchant. If this proportion is small or zero after a given review period, the DCC host system 20 is configured to guarantee settlement to the merchant. Alternatively, the DCC host system 20 may be configured to guarantee settlement to the merchant by default if the merchant is considered to be a low risk merchant. If the proportion of failed cryptocurrency transactions rises above a predetermined threshold, the DCC host system 20 is configured to deactivate the guaranteed settlement functionality.

In this way, the fiat currency to cryptocurrency exchange risk at the merchant is removed. Additionally, the merchant is not required to operate a cryptocurrency wallet for each cryptocurrency since the merchant is settled by the DCC host system 20 in the local fiat currency of the merchant.

There might be a time delay between the merchant-payer interaction at the point-ofsale and confirming receipt of the cryptocurrency at the DCC host system 20. In some cases this delay is very short, for example less than a second or less than 10 second. In other cases this delay is much longer, of the order or several minutes or an hour or more. The length of the delay may be related to the particular cryptocurrency which is selected for the transaction. For example, Ripple (XRP) may have a short delay whilst Bitcoin (BTC) may have a much longer delay. Accordingly, the settlement confirmation can occur almost instantaneously when the time delay is of the order of a few seconds. In this case, the settlement confirmation could be incorporated into the authorisation response so that the merchant receives a final settlement confirmation at the time of the transaction. The DCC host system 20 may only allow the payer to pay in a cryptocurrency which has a short delay period, for example the DCC host system 20 may only offer and accept cryptocurrencies which have a delay period less than a predetermined period.

Prior to sending the confirmation to the user device 30, the DCC host system 20 may be configured to compare the amount received in the cryptocurrency wallet 270 to the transaction amount in the cryptocurrency. If the amount received in the cryptocurrency wallet 270 is less than the transaction amount in the cryptocurrency, the DCC host system may be configured to send a replenishment request message to the user device, requesting a further payment corresponding to the difference between the amounts. If the amount received in the cryptocurrency wallet 270 is more than the transaction amount in the cryptocurrency, the DCC host system may be configured to send a refund to the user device, refund corresponding to the difference between the amounts.

In some examples the DCC host system 20 is configured to automatically sell the amount of the particular cryptocurrency that is to be received from the payer to an exchange via an API. This sale could be in response to receiving the indication from the transaction terminal system 10 that the payer has scanned the QR code. This would occur automatically if the DCC host system 20 held the amount of the particular cryptocurrency that is to be received from the payer in one or more of the cryptocurrency wallets 270 at the DCC host system 20. If the DCC host system 20 did not hold the amount of the particular cryptocurrency that is to be received from the payer in one or more of the cryptocurrency wallets 270 at the DCC host system 20, the sale of the amount of the particular cryptocurrency that is to be received from the payer is triggered by receipt of the amount of the particular cryptocurrency in the cryptocurrency wallet specified in the QR code. Although in this case the DCC host system 20 is exposed to price variation that may occur during the period between the offer being generated and when the cryptocurrency is received from the payer, the margin added to the exchange rate in the offer can be configured to accommodate such variations.

In some examples, the DCC host system 20 is also configured to create a reference rate between a fiat currency and the particular cryptocurrency (for example, GBP-to-BTC) that provides the best outcome if the DCC host system 20 were to sell the cryptocurrency immediately back to British Pounds. This reference rate may be at a different exchange rate to the offer exchange rate and current market exchange rate. The DCC host system 20 may also be configured to arbitrage the BUY rate for the cryptocurrency on a first exchange with the SELL rate on a second exchange. This process may be repeated using numerous different exchanges and multiple transactions with different exchanges may occur simultaneously. Additionally, numerous exchanges may be used to buy the cryptocurrency, then the cryptocurrency is aggregated before it is sold using a single exchange. In this way, the DCC host system 20 may end up with more of a fiat currency after selling the particular cryptocurrency than used to initially buy the cryptocurrency. This improves the ability of the DCC host system 20 to settle the merchant for the amount in the local fiat currency of the merchant.

Although the embodiments described above have been described in detail, numerous variations and modifications will become apparent to those skilled in the art once the above disclosure is fully appreciated. It is intended that the following claims be interpreted to include all such variations and modifications and their equivalents.

Claims

1. A transaction terminal system comprising:

at least one input interface;

a communications interface to connect to a remote host system;

processing logic operable to transmit a qualification request message to the host system to identify a currency conversion rate, and to receive a response message from the host system; and wherein the qualification request message includes an identification of a local currency for the transaction terminal system and a conversion currency, wherein the conversion currency is a cryptocurrency.

2. The system of claim 1, wherein the local currency for the transaction terminal system is a fiat currency.

3. The system of claim 1 or 2, wherein the response message includes the currency conversion rate.

4. The system of any of the preceding claims, wherein the qualification request message includes a transaction amount in the local currency for the transaction terminal system, and the response message includes a converted transaction amount for the conversion currency.

5. The system of any of the preceding claims, wherein the processing logic is operable to output via an output interface an indication of the conversion rate.

6. The system of claim 5, wherein the output interface comprises a display device.

7. The system of any preceding claim, wherein:

the processing logic is operable to transmit an initiation message to the host system, the initiation message including information indicative of a cryptocurrency payment having been initiated.

8. The system of claim 7, wherein the processing logic is operable to transmit the initiation message in response to an input from a merchant through the at least one input interface, the initiation and input indicative that a cryptocurrency payment has been initiated.

9. The system of claim 7 or claim 8, wherein:

the processing logic is operable to receive an acknowledgement message in response to the initiation message.

10. The system of any preceding claim, wherein the processing logic is configured to transmit the qualification request message in response to an input from a merchant through the at least one input interface, the input indicative that a payment in a cryptocurrency has been requested.

11. A dynamic currency conversion host system comprising:

a host communications interface to connect to a transaction terminal system; and host processing logic operable to:

receive a qualification request message from the transaction terminal, wherein a qualification request message includes an identification of a local currency for the transaction terminal and a conversion currency, wherein the conversion currency is a cryptocurrency determine a conversion rate in response to the qualification request message; and transmit to the transaction terminal system a response message.

12. The system of claim 11, wherein the local currency for the transaction terminal system is a fiat currency.

13. The system of claim 11 or 12, wherein:

the qualification request message includes a transaction amount in the local currency for the transaction terminal system, the host processing logic is operable to determine a converted transaction amount for the conversion currency from the transaction amount in the local currency for the transaction terminal system and the exchange rate; and the response message includes a converted transaction amount for the conversion currency.

14. The system of any of claims 11 to 13, wherein the host processing logic is operable to receive an initiation message from transaction terminal, the initiation message including information indicative of a cryptocurrency payment having been initiated.

15. The system of any of claims 11 to 14, wherein the host processing logic is operable to transmit an acknowledgement message in response to the initiation message.

16. The system of any of claims 11 to 15, comprising storage operable to store conversion rates for a plurality of currencies.

17. The system of any of claims 11 to 16, wherein the host processing logic is operable to obtain, in response to receiving the qualification request message, a base conversion rate for the local currency for the transaction terminal and the conversion currency.

18. The system of claim 17, wherein the base conversion rate is the conversion rate.

19. The system of claim 17, wherein the conversion rate corresponds to the base conversion rate and a predetermined margin.

20. The system of claim 16 and 19, wherein the storage is operable to store the margin.

21. The system of any of claims 11 to 2, comprising at least one cryptocurrency wallet to facilitate cryptocurrency transactions.

22. The system of any of claims 21, wherein the response message also includes an address for one of the cryptocurrency wallets to send the converted transaction amount to.

23. The system of claim 21 or 22, wherein the one of the cryptocurrency wallets is configured to receive a payment corresponding to the converted transaction amount for the conversion currency from an application on a user device.

24. The system of claim 23, wherein the host processing logic is operable to transmit a confirmation message to the application on the user device, the confirmation message indicating that that the payment has been received in the one of the cryptocurrency wallets.

10

25. The system of any one of claims 11 to 24, wherein the response message includes the conversion rate.

26. A dynamic currency conversion system comprising at least one transaction terminal system as claimed in any of claims 1 to 11 and a dynamic currency conversion host system 15 as claimed in any of claims 12 to 25.