WO2018229800A1

WO2018229800A1 - A system and method for qr code based electronic financial transaction

Info

Publication number: WO2018229800A1
Application number: PCT/IN2018/050394
Authority: WO
Inventors: Vivek Nurani VISWANATHAN
Original assignee: Ezetap Mobile Solutions Pvt. Ltd.
Priority date: 2017-06-15
Filing date: 2018-06-15
Publication date: 2018-12-20

Abstract

The embodiments herein provide a system and method for a QR code based electronic financial transaction. A QR code generator generates one or more QR codes corresponding to a single or multiple physical payment card(s) of a customer. The generated QR code is in an encrypted format and saved in a computing device of customer. A QR code scanner present at a merchant location is used for scanning encrypted QR code and for forwarding encrypted QR code to a concerned authority for validation. The merchant is allowed to specify an amount to be deducted from physical payment card associated with QR code. The received QR code is decrypted. The authenticity of the one or more details related to customer and physical payment card(s) associated with the code is validated. On successful validation, the requested transaction is processed using the QR code.

Description

A SYSTEM AND METHOD FOR QR CODE BASED ELECTRONIC FINANCIAL

TRANSACTION

CROSS-REFERENCETO RELATED APPLICATION

[0001] The embodiments herein claims the priority of the Indian Provisional Patent

Application with the serial number 201741020946 and entitled, "A SYSTEM AND

METHOD FOR QR CODE BASED ELECTRONIC FINANCIAL TRANSACTION" filed on June 15, 2017 and the contents of which are included entirely as reference herein.

BACKGROUND

Technical Field

[0002] The embodiments herein are generally related to the field of electronic commerce and payment. The embodiments herein are particularly related to a system and method for electronic financial transactions using physical payment cards. The embodiments herein are more particularly related to a system and method for a QR code based electronic financial transaction using cards.

Description of the Related Art

[0003] In recent times, with the advent of technology and Internet, electronic money transfer has become the most preferred way of making payments for the customers. Presently, there are several methods by which a customer electronically makes payment for purchases made. The method involves using credit cards, debit cards, digital cash, smart cards and stored value cards. Each method has its own advantages and disadvantages. Various ecosystems are built for these electronic payments by the regulatory authorities, banks, merchants and users for processing most of the transactions through cards.

[0004] Although there have been few more form of payment methods available over the last decade or so such as Net Banking, Wallets, etc., but still payment by card is one of the preferred choice. Since this method exists for over a decade, customers have developed a trust in this method and are hesitant towards accepting newer forms of payments like Wallets due to security or trust issues.

[0005] However two important requirements are to be fulfilled/met for a typical payment by card transaction. First being the presence of a physical card such as credit, debit or any other card at the customer end and the other being the presence of a Point Of Sale terminal to swipe the card, for collecting the information and processing the payment at the merchant end. Thus, a huge amount of time, effort and cost of logistics, storage, distribution and maintenance of cards and POS (point-of-sale) terminals is required, to enable this flow of electronic payment.

[0006] Further, the customers always need to carry the physical card through which the payment has to be made. In some cases, the customer has to carry more than one cards when one holds accounts in more than one banks or possesses stored value cards for different stores. Also, there are chances of theft and fraud in carrying physical cards along. Some fraudulent activities might take place at the merchant location such as swiping of the physical card for wrong amount.

[0007] Hence, a system and method for using a QR code based electronic financial transaction to make payments. There is also a need for a system and method for capturing and converting a physical payment card into an encrypted QR code for use in financial transactions. Further, there is a need for a system and method that facilitates conversion of multiple physical cards into a single QR code. Still further, there is a need for a system and method that allows the customers to implement one time or preset time limited cards and also set maximum transaction limits for the generated QR code.

[0008] The above mentioned shortcomings, disadvantages and problems are addressed herein and which will be understood by reading and studying the following specification. OBJECTIVES OF THE EMBODIMENTS HEREIN

[0009] The primary object of the embodiments herein is to provide a system and method for capturing and converting a physical payment card into an encrypted QR code.

[0010] Another object of the embodiments herein is to provide a system and method facilitating conversion of multiple physical cards into a single QR code.

[0011] Yet another object of the embodiments herein is to provide an electronic financial transaction system and method that helps customers in generating multiple QR codes that are customized with different uses for the same physical payment card.

[0012] Yet another object of the embodiments herein is to provide a system and method for allowing the customers to implement one time use or preset times limited cards and also set maximum transaction limits for the generated QR code.

[0013] Yet another object of the embodiments herein is to provide an electronic financial transaction system and method that eliminates a need for customer to carry multiple physical payment cards.

[0014] Yet another object of the embodiments herein is to provide an electronic financial transaction system and method that is safe for use and protects the customers from fraudulent activities.

[0015] Yet another object of the embodiments herein is to provide a highly scalable and cheap electronic financial transaction system that eliminates the need for having existing infrastructure required to make a payment by card such as cards on the issuing side, and POS on the merchant side.

[0016] Yet another object of the embodiments herein is to provide an electronic financial transaction system and method that reduces an overall time and money spent in physical payment card logistics and maintenance. [0017] Yet another object of the embodiments herein is to provide a customer friendly and highly flexible electronic financial transaction system and method that allow the customer to configure preferences and other related information to the encrypted QR code in a simple manner.

[0018] These and other objects and advantages of the embodiments herein will become readily apparent from the following detailed description taken in conjunction with the accompanying drawings.

SUMMARY

[0019] These and other aspects of the embodiments herein will be better appreciated and understood when considered in conjunction with the following description and the accompanying drawings. It should be understood, however, that the following descriptions, while indicating preferred embodiments and numerous specific details thereof, are given by way of illustration and not of limitation. Many changes and modifications may be made within the scope of the embodiments herein without departing from the spirit thereof, and the embodiments herein include all such modifications.

[0020] The embodiments herein provide a QR code based electronic financial transaction system. The system comprises a QR code generator configured for generating one or more QR codes corresponding to one or more physical payment card(s). The one or more QR codes are generated in an encrypted format. The generated and encrypted one or more QR codes are stored in a computing device of a customer. The system also comprises a QR code scanner present at a merchant location and configured for scanning the one or more encrypted QR codes and for forwarding the one or more encrypted QR codes to a concerned authority/authorized entity for proceeding with the transaction. The merchant is allowed to specify a transaction amount to be deducted from the physical payment card associated with the encrypted QR codes. The system further comprises a server configured for receiving and processing the one or more encrypted QR codes for completing a requested financial transaction. The server comprises a decryption module configured for decrypting the received one or more encrypted QR codes. The server also comprises a validation module configured for validating an authenticity of one or more details related to the customer and the physical payment card(s) associated with each QR code. The system still further comprises a third party service provider module configured for processing the payment by deducting a specified amount from the physical payment card using the one or more QR codes and crediting the amount in the merchant's account on successful validation to complete the transaction.

[0021] According to an embodiment herein, the QR code generator is further configured for allowing the customer to customize one or more parameters related to each QR code.

[0022] According to an embodiment herein, the one or more parameters customized by the customer by specifying a time limit for using each QR code, a maximum transaction limit allowed for each QR code, a number of QR codes to be generated for a single physical payment card and a number of physical payment cards to be combined in a single QR code.

[0023] According to an embodiment herein, the QR code generator is further configured for allowing the customer to generate one or more QR codes with a plurality of mutually different use cases for a single physical payment card.

[0024] According to an embodiment herein, the QR code generator is further configured for allowing the customer to generate a single QR code for more than one physical payment cards.

[0025] According to an embodiment herein, the one or more details related to the customer and the physical payment card(s) associated with the QR code comprise a name of the card holder, a PAN number of the card holder, a physical payment card number, a name of the bank/store issuing the physical payment card, a credit limit and an expiry date of the physical payment card for which the QR code is generated.

[0026] According to an embodiment herein, the QR code scanner is further configured for providing an option to the customer at the time of scanning to choose/select a particular physical payment card, when there are multiple physical payment cards associated with a single QR code.

[0027] According to an embodiment herein, a method is provided for a QR code based electronic financial transaction system to make payments. The method comprises the steps of generating one or more QR codes corresponding to one or more physical payment card(s) with a QR code generator. The one or more QR codes are generated in an encrypted format and stored in a computing device of a customer. The one or more encrypted QR codes are scanned using a QR code scanner present at a merchant location. The one or more encrypted QR codes are forwarded to a concerned authority /authorized entity for proceeding with the transaction. The merchant is allowed to specify a transaction amount to be deducted from the physical payment card(s) associated with the one or more encrypted QR codes. The received one or more encrypted QR codes are decrypted using a decryption module. The authenticity of one or more details related to the customer and the physical payment card(s) associated with each QR code is validated using a validation module. The payment is processed by deducting the specified amount from the physical payment card using the one or more QR codes on successful validation to complete the transaction using a third party service provider module.

[0028] According to an embodiment herein, the method further comprises generating one or more QR codes with a plurality of mutually different use cases for a single physical payment card. [0029] According to an embodiment herein, the method further comprises generating a single QR code for more than one physical payment cards.

[0030] According to an embodiment herein, the system is configured to read any machine readable optical codes similar to QR codes such as bar codes for securing the financial transactions.

[0031] The foregoing description of the specific embodiments will so fully reveal the general nature of the embodiments herein that others can, by applying current knowledge, readily modify and/or adapt for various applications such specific embodiments without departing from the generic concept, and, therefore, such adaptations and modifications should and are intended to be comprehended within the meaning and range of equivalents of the disclosed embodiments. It is to be understood that the phraseology or terminology employed herein is for the purpose of description and not of limitation. Therefore, while the embodiments herein have been described in terms of preferred embodiments, those skilled in the art will recognize that the embodiments herein can be practiced with modification within the spirit and scope of the appended claims.

BRIEF DESCRIPTION OF THE DRAWINGS

[0032] The other objects, features and advantages will occur to those skilled in the art from the following description of the preferred embodiment and the accompanying drawings in which:

[0033] FIG. 1 illustrates a functional block diagram of a QR code based electronic financial transaction system, according to an embodiment herein.

[0034] FIG. 2 illustrates a flowchart explaining a method for a QR code based electronic financial transaction system to make payments, according to an embodiment herein. [0035] Although the specific features of the present invention are shown in some drawings and not in others. This is done for convenience only as each feature may be combined with any or all of the other features in accordance with the embodiments herein.

DETAILED DESCRIPTION OF THE EMBODIMENTS

[0036] In the following detailed description, a reference is made to the accompanying drawings that form a part hereof, and in which the specific embodiments that may be practiced is shown by way of illustration. These embodiments are described in sufficient detail to enable those skilled in the art to practice the embodiments and it is to be understood that the logical, mechanical and other changes may be made without departing from the scope of the embodiments. The following detailed description is therefore not to be taken in a limiting sense.

[0037] The embodiments herein provide a QR code based electronic financial transaction system. The system comprises a QR code generator configured for generating one or more QR codes corresponding to one or more physical payment card(s). The one or more QR codes are generated in an encrypted format. The generated and encrypted one or more QR codes are stored in a computing device of a customer. The system also comprises a QR code scanner present at a merchant location and configured for scanning the one or more encrypted QR codes and for forwarding the one or more encrypted QR codes to a concerned authority/authorized entity for proceeding with the transaction. The merchant is allowed to specify a transaction amount to be deducted from the physical payment card associated with the encrypted QR codes. The system further comprises a server configured for receiving and processing the one or more encrypted QR codes for completing a requested financial transaction. The server comprises a decryption module configured for decrypting the received one or more encrypted QR codes. The server also comprises a validation module configured for validating an authenticity of one or more details related to the customer and the physical payment card(s) associated with each QR code. The system still further comprises a third party service provider module configured for processing the payment by deducting a specified amount from the physical payment card using the one or more QR codes and crediting the amount in the merchant's account on successful validation to complete the transaction.

[0038] According to an embodiment herein, the system is configured to read any machine readable optical codes similar to QR codes such as bar codes for securing the financial transactions.

[0039] According to an embodiment herein, the QR code generator is further configured for allowing the customer to customize one or more parameters related to each QR code.

[0040] According to an embodiment herein, the one or more parameters customized by the customer by specifying a time limit for using each QR code, a maximum transaction limit allowed for each QR code, a number of QR codes to be generated for a single physical payment card and a number of physical payment cards to be combined in a single QR code.

[0041] According to an embodiment herein, the QR code generator is further configured for allowing the customer to generate one or more QR codes with a plurality of mutually different use cases for a single physical payment card.

[0042] According to an embodiment herein, the QR code generator is further configured for allowing the customer to generate a single QR code for more than one physical payment cards.

[0043] According to an embodiment herein, the one or more details related to the customer and the physical payment card(s) associated with the QR code comprise a name of the card holder, a PAN number of the card holder, a physical payment card number, a name of the bank/store issuing the physical payment card, a credit limit and an expiry date of the physical payment card for which the QR code is generated.

[0044] According to an embodiment herein, the QR code scanner is further configured for providing an option to the customer at the time of scanning to choose/select a particular physical payment card, when there are multiple physical payment cards associated with a single QR code.

[0045] According to an embodiment herein, a method is provided for a QR code based electronic financial transaction system to make payments. The method comprises the steps of generating one or more QR codes corresponding to one or more physical payment card(s) with a QR code generator. The one or more QR codes are generated in an encrypted format and stored in a computing device of a customer. The one or more encrypted QR codes are scanned using a QR code scanner present at a merchant location. The one or more encrypted QR codes are forwarded to a concerned authority /authorized entity for proceeding with the transaction. The merchant is allowed to specify a transaction amount to be deducted from the physical payment card(s) associated with the one or more encrypted QR codes. The received one or more encrypted QR codes are decrypted using a decryption module. The authenticity of one or more details related to the customer and the physical payment card(s) associated with each QR code is validated using a validation module. The payment is processed by deducting the specified amount from the physical payment card using the one or more QR codes on successful validation to complete the transaction using a third party service provider module.

[0046] According to an embodiment herein, the method further comprises generating one or more QR codes with a plurality of mutually different use cases for a single physical payment card. [0047] According to an embodiment herein, the method further comprises generating a single QR code for more than one physical payment cards.

[0048] FIG. 1 illustrates a functional block diagram of a QR code based electronic financial transaction system, according to an embodiment herein. The system comprises a QR code generator 102, a QR code scanner 104, a server 106 and a third party service provider module 108. The server 106 further comprises a decryption module 110 and a validation module 112.

[0049] According to an embodiment herein, the QR code generator 102 is configured for generating one or more encrypted QR codes corresponding to one or more physical payment card(s) 114 belonging to a customer. The customer installs a QR code generator software application in the computing device 116. This QR code generator software application is then used for generating the encrypted QR code that is stored in the computing device 116 of the customer. Examples of the computing device 116 of the customer comprise a smartphone, a laptop, a tablet and the like.

[0050] According to an embodiment herein, the QR code generator 102 is further configured for allowing the customer to customize one or more parameters related to each QR code. The one or more parameters customizable by the customer include, specifying a time limit for using each QR code, a maximum transaction limit allowed for each QR code, number of QR codes to be generated for a single physical payment card and number of physical payment cards to be combined in a single QR code and the like. The QR code generator 102 allows the customer to generate one or more QR codes with different uses for a single physical payment card. The QR code generator 102 also allows the customer to generate a single QR code for more than one physical payment cards. The QR code generator uses a plurality of custom rules for allowing the customer to create any number of QR Codes. The examples of plurality of custom rules include, TTL (Time To Live), maximum amount, transaction limit, merchant, and the combinations thereof. This facilitates same card to be used for different use cases.

[0051] According to an embodiment herein, whenever the customer wants to make payment for any of the purchases made he/she simply needs to use the QR code for this purpose. The merchant scans the QR code presented by the customer using the QR code scanner 104. Any QR code scanner software application available in the market is used for this purpose. Merchant is further allowed to specify the transaction amount to be deducted from the physical payment card associated with the one or more encrypted QR codes. In case there are multiple physical payment cards associated with a single QR code then the customer is presented with an option to choose any one physical payment card for making the payment. The scanned QR code is then forwarded over a communication network to a concerned authority/authorised entity for proceeding with the transaction. Examples of the authorised entity comprise a physical payment card issuing authority, point-of-sale (POS) terminal issuing authority, banking authority and the like.

[0052] According to an embodiment herein, the received encrypted QR code is decrypted using a decryption module 110 at the server of authorized entity. Once decrypted, the validation module 112 validates the authenticity of one or more details related to the customer and the physical payment card(s) associated with each QR code. The one or more details related to the customer and the physical payment card(s) associated with the QR code include, name of the card holder, PAN number of the card holder, physical payment card number, name of the bank/store issuing the physical payment card and expiry date of the physical payment card for which the QR code is generated, credit limit associated with each physical payment card of the customer and the like. On successful validation of the one or more details, the validation module 112 sends a payment processing request to the third party service provider module 108. The third party service provider module 108 processes the payment by deducting the specified amount from the physical payment card or account associated with the card and credits this amount to the merchant's account.

[0053] According to an embodiment herein, a payment module (not shown) is a part of the server 106 belonging to the authorized entity. In this case, the payment processing request is not sent externally to the third party service provider module 108 but instead is processed by the payment module. The payment module processes the payment by debiting the customers physical payment card or account and credits the amount in to the merchant's account.

[0054] According to an embodiment herein, the system is configured to read any machine readable optical codes similar to QR codes such as bar codes for securing the financial transactions.

[0055] FIG. 2 illustrates a flowchart explaining a process for using a QR code based electronic financial transaction system to make payments, according to an embodiment herein. The method comprises the steps of generating one or more QR codes corresponding to one or more physical payment card(s) using a QR code generator (202). The one or more encrypted QR codes are scanned using a QR code scanner at a merchant location (204). An option is provided to the customer to select a card in case QR code is generated from more than one card (206). A transaction amount to be deducted from the physical payment card(s) associated with the one or more encrypted QR codes is specified (208). The encrypted QR codes are forwarded to a concerned authority/authorized entity for proceeding with transaction (210). The received one or more QR codes are decrypted (212). The authenticity of one or more details related to the customer and the physical payment card(s) associated with each QR code is validated (214). The payment is processed by deducting the specified amount from the physical payment card using the one or more QR codes on successful validation to complete the transaction (216). [0056] According to an embodiment herein, the system is configured to read any machine readable optical codes similar to QR codes such as bar codes for securing the financial transactions.

[0057] Therefore, the embodiments herein disclose a system and method for a QR code based electronic financial transaction. The system and method comprises capturing and converting a physical payment card into an encrypted QR code for use while completing the electronic transaction. The system and method helps the customers as well as the merchants in saving significant overhead costs of logistics for maintaining and processing physical payment cards. The system facilitates the customers to convert multiple physical payment cards into a single QR code and to generate multiple QR codes for a single physical payment card. Thus, the customers easily implement one time, limited time cards using the proposed idea. Customer preferences and other related information is easily configurable in the encrypted QR code which makes the system very flexible and customer friendly in nature. Also, the customers need not have to carry multiple cards and hence does need not need to worry about theft or lost of physical payment cards. This helps the customers in avoiding the charges levied by the banks in issuing new cards on loss of existing cards.

[0058] Thus, the system and method eliminates the need of existing infrastructure required to complete financial transaction using cards i.e. cards on the issuing side, and POS on the merchant side making. This makes the system highly scalable and cheap.

[0059] The foregoing description of the specific embodiments will so fully reveal the general nature of the embodiments herein that others can, by applying current knowledge, readily modify and/or adapt for various applications such specific embodiments without departing from the generic concept, and, therefore, such adaptations and modifications should and are intended to be comprehended within the meaning and range of equivalents of the disclosed embodiments. It is to be understood that the phraseology or terminology employed herein is for the purpose of description and not of limitation. Therefore, while the embodiments herein have been described in terms of preferred embodiments, those skilled in the art will recognize that the embodiments herein can be practiced with modification within the spirit and scope of the appended claims.

[0060] Although the embodiments herein are described with various specific embodiments, it will be obvious for a person skilled in the art to practice the invention with modifications. However, all such modifications are deemed to be within the scope of the claims.

[0061] It is also to be understood that the following claims are intended to cover all of the generic and specific features of the embodiments described herein and all the statements of the scope of the embodiments which as a matter of language might be the to fall there between.

Claims

CLAIMS What is claimed is:

1. A code based electronic financial transaction system, the system comprising:

a QR/bar code generator configured for generating one or more QR codes/bar codes corresponding to one or more physical payment card(s), and wherein the one or more QR/bar codes are generated in an encrypted format, and wherein the one or more encrypted QR codes are stored in a computing device of a customer;

a QR/bar code scanner present at a merchant location and configured for scanning the one or more encrypted QR/bar codes and for forwarding the one or more encrypted QR/bar codes to a concerned authority /authorised entity for processing the transaction, and wherein a system at the merchant location is configured to specify a transaction amount to be deducted from the physical payment card associated with the encrypted QR/bar codes;

a server configured for receiving and processing the one or more encrypted QR/bar codes for completing a requested financial transaction;

a decryption module provided in the server and run on a hardware processor, and wherein the decryption module is configured for decrypting the received one or more encrypted QR/bar codes;

a validation module provided in the server and run on a hardware processor, and wherein the validation module is configured for validating an authenticity of one or more details related to the customer and the physical payment card(s) associated with each QR/bar code; and

a third party service provider module configured for processing the payment by deducting a specified amount from the physical payment card using the one or more QR/bar codes and crediting the amount in the merchant's account on successful validation to complete the transaction.

2. The system according to claim 1, wherein the QR/bar code generator is further configured to enable the customer to customize one or more parameters related to each QR/bar code.

3. The system according to claim 1, wherein the one or more parameters customized by the customer comprise a time limit for using each QR/bar code, a maximum transaction limit allowed for each QR/bar code, a number of QR/bar codes to be generated for a single physical payment card and number of physical payment cards to be combined in a single QR/bar code.

4. The system according to claim 1, wherein the QR/bar code generator is further configured for allowing the customer to generate one or more QR/bar codes with a plurality of mutually different use cases for a single physical payment card.

5. The system according to claim 1, wherein the QR/bar code generator is further configured for allowing the customer to generate a single QR/bar code for more than one physical payment cards.

6. The system according to claim 1, wherein the one or more details related to the customer and the physical payment card(s) associated with the QR/bar code comprise a name of the card holder, a PAN number of the card holder, a physical payment card number, a name of the bank/store issuing the physical payment card, a credit limit and an expiry date of the physical payment card for which the QR/bar code is generated.

7. The system according to claim 1, wherein the QR/bar code scanner is further configured for providing an option to the customer at the time of scanning to choose a particular physical payment card, when a plurality of physical payment cards associated with a single QR/bar code.

8. A computer implemented method comprising instructions stored on a non-transitory computer readable storage medium and run on a computing device provided with a hardware processor and memory for using a QR/bar code based electronic financial transaction system to make payments, the method comprising the steps of:

generating one or more QR/bar codes corresponding to one or more physical payment card(s) with a QR/bar code generator, and wherein the one or more QR/bar codes are generated in an encrypted format and stored in a computing device of a customer;

scanning the one or more encrypted QR/bar codes using a QR/bar code scanner present at a merchant location and for forwarding the one or more encrypted QR/bar codes to a concerned authority /authorised entity for processing a transaction;

allowing a merchant terminal at the merchant location to specify a transaction amount to be deducted from the physical payment card(s) associated with the one or more encrypted QR/bar codes;

decrypting the received one or more encrypted QR/bar codes with a decryption module;

validating an authenticity of one or more details related to the customer and the physical payment card(s) associated with each QR/bar code with a validation module; and processing the payment by deducting a specified amount from the physical payment card using the one or more QR/bar codes on successful validation to complete a transaction using a third party service provider module.

9. The method according to claim 8, further comprises the step of generating one or more QR codes corresponding to a plurality of mutual different use cases for a single physical payment card.

10. The method according to claim 8, further comprises generating a single QR/bar code for more than one physical payment cards.