System and method of currency conversion in financial transaction process

Abstract

A transaction process system ( 10 ) provides for data transactions between parties. In a credit card transaction, the parties are the merchant ( 20 ), acquiring bank ( 24 ), card association ( 34 ), issuing bank ( 14 ), and cardholder ( 12 ). A transaction processing center ( 30 ) is positioned between the acquiring bank and the card association. The transaction processing center provides data processing channels for message-based processing ( 72 ) and filed-based processing ( 76 ). The file-based processing uses an incoming queue ( 80 ) and outgoing queue ( 84 ) to simplify the interface. The transaction processing center also provides for currency conversions and account reconciliation on a per transaction basis. The transaction processing center uses a scheduler ( 160 ) to efficiently manage the data processing resources.

What is claimed is:  
     
         1 . A system for processing transactions between a merchant and a credit card holder, comprising: 
 an issuer providing a credit card to the credit card holder;    a credit card association having a communication link to the issuer for providing credit card processing services; and    a transaction processing center operating between the merchant and the card association, wherein the transaction processing center processes a credit card transaction from the merchant in a plurality of currencies including a transaction currency to provide a baseline for a monetary value of the credit card transaction and a clearing currency which is selectable to match a native currency of the issuer.    
     
     
         2 . The system of  claim 1  wherein the transaction processing center converts the transaction currency to the clearing currency and forwards the credit card transaction along to the credit card association with the monetary value of the credit card transaction provided in the clearing currency.  
     
     
         3 . The system of  claim 1  wherein one of the plurality of currencies is a request currency received from the merchant which is different from the transaction currency and the transaction processing center converts the request currency to the transaction currency.  
     
     
         4 . A credit card processing system, comprising a data processing center having a communication link with a merchant to receive a credit card transaction initiated by the merchant, wherein the data processing center processes the credit card transaction in a plurality of currencies including a transaction currency to provide a baseline for a monetary value of the credit card transaction and a clearing currency which is selectable to match a native currency of an issuer of the credit card and further converts the transaction currency to the clearing currency.  
     
     
         5 . The credit card processing system of  claim 4  further including a card association operating between the data processing center and the issuer of the credit card, wherein the data processing center forwards the credit card transaction along to the credit card association with the monetary value of the credit card transaction provided in the clearing currency.  
     
     
         6 . The credit card processing system of  claim 5  wherein the data processing center establishes an identification number with the card association for the clearing currency.  
     
     
         7 . The credit card processing system of  claim 6  wherein one of the plurality of currencies is a request currency received from the merchant which is different from the transaction currency and the data processing center converts the request currency to the transaction currency.  
     
     
         8 . The credit card processing system of  claim 4  wherein the data processing center accesses a fee on the monetary value of the transaction for a currency conversion from a first one of the plurality of currencies and a second one of the plurality of currencies based on a system setting of the data processing center.  
     
     
         9 . A method of converting currency in a transaction processing system, comprising: 
 receiving a credit card transaction from a merchant, wherein the credit card transaction has a monetary value stated in a transaction currency as a baseline value;    converting the transaction currency to a clearing currency which is selectable; and    forwarding the credit card transaction along to the issuer with the monetary value of the credit card transaction provided in the clearing currency.    
     
     
         10 . The method of  claim 9  wherein the clearing currency is selectable to match a native currency of an issuer of the credit card.  
     
     
         11 . The method of  claim 9  further including: 
 receiving the credit card transaction from the merchant in a request currency which is different from the transaction currency; and  
 converting the request currency to the transaction currency.  
 
     
     
         12 . The method of  claim 9  further including accessing a fee on the monetary value of the transaction for a currency conversion from a first one of the plurality of currencies and a second one of the plurality of currencies based on a system setting of the data processing center.  
     
     
         13 . The method of  claim 9  wherein a card association operates between the merchant and the issuer of the credit card.  
     
     
         14 . The method of  claim 13  further including selecting a settlement currency to be received from the card association for settlement of the credit card transaction with the merchant, wherein the settlement currency is the same as the native currency of the issuer of the credit card and different from a merchant funding currency which is used to pay the merchant.  
     
     
         15 . The method of  claim 14  further including converting the settlement currency to the merchant funding currency.  
     
     
         16 . A method of processing a credit card transaction by a data processing center, comprising: 
 receiving the credit card transaction initiated by a merchant;    providing a transaction currency as a baseline for a monetary value of the credit card transaction;    providing a clearing currency which is selectable;    converting the transaction currency to the clearing currency; and    forwarding the credit card transaction along to an issuer of the credit card with the monetary value of the credit card transaction provided in the clearing currency.    
     
     
         17 . The method of  claim 16  wherein the clearing currency is selectable to match a native currency of the issuer of the credit card.  
     
     
         18 . The method of  claim 16  wherein a card association operates between the merchant and the issuer of the credit card.  
     
     
         19 . The method of  claim 18  further including: 
 selecting a settlement currency to be received from the card association for settlement of the credit card transaction with the merchant, wherein the settlement currency is the same as the native currency of the issuer of the credit card and different from a merchant funding currency which is used to pay the merchant;  
 converting the settlement currency to the merchant funding currency.  
 
     
     
         20 . The method of  claim 19  further including: 
 establishing a first identification number with the card association for the clearing currency; and  
 establishing a second identification number with the card association for the settlement currency.  
 
     
     
         21 . The method of  claim 16  further including: 
 receiving the credit card transaction from the merchant in a request currency, wherein the request currency is different from the transaction currency; and  
 converting the request currency to the transaction currency.  
 
     
     
         22 . A method of processing a credit card transaction by a data processing center, comprising: 
 receiving the credit card transaction initiated by a merchant;    processing the credit card transaction in a plurality of currencies including a transaction currency to provide a baseline for a monetary value of the credit card transaction and a clearing currency which is selectable;    converting the transaction currency to the clearing currency; and    forwarding the credit card transaction along to an issuer of the credit card with the monetary value of the credit card transaction provided in the clearing currency.    
     
     
         23 . The method of  claim 22  wherein the clearing currency is selectable to match a native currency of the issuer of the credit card.  
     
     
         24 . The method of  claim 22  further including accessing a fee on the monetary value of the transaction for a currency conversion from a first one of the plurality of currencies and a second one of the plurality of currencies based on a system setting of the data processing center.  
     
     
         25 . The method of  claim 22  wherein a card association operates between the merchant and the issuer of the credit card.  
     
     
         26 . The method of  claim 26  further including: 
 selecting a settlement currency to be received from the card association for settlement of the credit card transaction with the merchant, wherein the settlement currency is the same as the native currency of the issuer of the credit card and different from a merchant funding currency which is used to pay the merchant; and  
 converting the settlement currency to the merchant funding currency.  
 
     
     
         27 . The method of  claim 26  further including: 
 receiving the credit card transaction from the merchant in a request currency, wherein the request currency is different from the transaction currency; and  
 converting the request currency to the transaction currency.