Transaction processing, system, method, and apparatus that utilizes a token credential

Abstract

A novel system and methodology for conducting financial and other transactions using a wireless device. Credentials may be selectively issued by issuers such as credit card companies, banks, and merchants to consumers permitting the specific consumer to conduct a transaction according to the authorization given as reflected by the credential or set of credentials. The preferred mechanism for controlling and distributing credentials according to the present invention is through one or more publicly accessible networks such as the Internet wherein the system design and operating characteristics are in conformance with the standards and other specific requirements of the chosen network or set of networks. Credentials are ultimately supplied to a handheld device such as a mobile telephone via a wireless network. The user holding the credential may then use the handheld device to conduct the authorized transaction or set of transactions via, for example, a short range wireless link with a point-of-sale terminal.

What is claimed is: 
     
         1 . A system to process requests to authorize a payment transaction using a token credential, the system comprising:
 a communications interface coupled to a payment network that is configured to receive transaction authorization requests originating from a merchant point-of-sale (POS) system, and to transmit an applicable transaction approval or decline response to the merchant POS system through the same path;   at least one storage device to store a database including user accounts, wherein each user account contains at least one linked payment account number and at least one token account number that is used to authorize a payment transaction between the merchant POS system and the system;   a transaction authorization interface to authorize the payment transaction against a selected payment account that is linked to a user account containing the at least one token account number; and   a processor configured to receive transaction authorization requests originating from the merchant POS system via the communications interface, select a user account from the user accounts stored in the database using the token account number contained in the received transaction authorization request, select the payment account number linked to the user account, transmit an authorization request against the selected linked payment account via the transaction authorization interface, receive and identify an approval or decline authorization response based on at least the state of the user account and the received authorization response associated with the linked payment account that is selected for authorization, and transmit a transaction approval or decline authorization response to the payment network and merchant point-of-sale system via the communications interface.   
     
     
         2 . The system of  claim 1 , wherein the at least one account number is one of a plurality of information included in the token credential. 
     
     
         3 . The system of  claim 1 , where the at least one token account number is within a Bank Identification Number (BIN) range associated with at least one of a payment card issuer and a payment network. 
     
     
         4 . The system of  claim 3 , wherein the at least one token account number within the designated BIN range enables transaction authorizations to be routed from the merchant POS system, to an acquirer, to the applicable payment network, and to an applicable token credential issuer system for approval. 
     
     
         5 . The system of  claim 1 , wherein the user accounts within the database have at least one linked payment account from one of a credit account, a debit account, or a stored value account type. 
     
     
         6 . The system of  claim 1 , wherein a token account number is mapped to a single linked payment account or a plurality of linked payment accounts. 
     
     
         7 . The system of  claim 6 , wherein the linked payment accounts have an associated account number that is within a designated Bank Identification Number (BIN) range associated with at least one of a specific payment network and a payment card issuer. 
     
     
         8 . The system of  claim 1 , wherein the linked payment accounts are administered by their respective issuer credential management systems. 
     
     
         9 . The system of  claim 1 , wherein any linked payment account within the user account is changeable according to input received from a user. 
     
     
         10 . The system of  claim 9 , wherein the linked payment account is removable by linking a new payment account to replace an existing one, or deleting an existing linked payment account. 
     
     
         11 . The system of  claim 9 , wherein changes to the linked payment accounts are made via at least one of a software application on a mobile device or via a computer connected to the Internet that is communicating with the system. 
     
     
         12 . The system of  claim 1 , wherein the system is coupled to a credential issuance system that is connected to the Internet. 
     
     
         13 . The system of  claim 12 , wherein the credential issuance system issues the token account number to a mobile device via a wireless network and the Internet. 
     
     
         14 . The system of  claim 13 , wherein the token account number, upon issuance, is stored in a memory of the mobile device. 
     
     
         15 . The system of  claim 14 , wherein the token account number is transmitted to a reader device when the mobile device's short-range radio-frequency (RF) interface comes in proximity to the reader's RF interface. 
     
     
         16 . The system of  claim 15 , wherein the reader device and the mobile device communicate via a short-range RF standard such as near field communication (NFC), Bluetooth, or another wireless communication standard that is mutually supported by both devices. 
     
     
         17 . The system of  claim 15 , wherein the transmission of the token account number to the reader device initiates a transaction authorization request from the merchant POS system to the system via the applicable payment network associated with the account number credential. 
     
     
         18 . The system of  claim 1 , wherein a token credential account number assigned to the user account within the database is updated by an issuer. 
     
     
         19 . The system of  claim 18 , wherein the issuer correspondingly updates a token account number stored in a mobile device's memory via a wireless network and the Internet. 
     
     
         20 . The system of  claim 18 , wherein a token credential account number is stored in a magnetic-stripe card, a chip card, a mobile device, or a computer system. 
     
     
         21 . The system of  claim 18 , wherein the token credential account number is transmitted to the merchant POS system by at least one of an encoded magnetic-stripe card, an encoded chip, via a radio frequency (RF) interface in a mobile device, and a computer system to initiate a payment authorization. 
     
     
         22 . The system of  claim 1 , wherein the processor selects a linked payment account upon receiving a transaction authorization request containing a token account number via the communications interface. 
     
     
         23 . The system of  claim 22 , wherein when a user had previously selected a default payment account to be used, the processor selects the linked payment account that had been pre-selected by the user. 
     
     
         24 . The system of  claim 22 , wherein the selection of a linked payment account is automatic when there is only one payment account linked to the user account. 
     
     
         25 . The system of  claim 22 , wherein when there is no pre-selection made of a linked payment account by the user and there is more than one linked payment account, the system initiates a message to the mobile device or computer system to prompt the user to make a selection from one of the linked payment accounts when a transaction authorization request containing the token account number is received by the processor via the communications interface. 
     
     
         26 . The system of  claim 25 , wherein upon receipt of the selection and the transaction approval or decline of the linked payment account, the processor responds to the initial authorization request from the merchant POS with an approval or decline message. 
     
     
         27 . An apparatus to process requests to authorize a payment transaction using a token credential, the apparatus comprising:
 a communications interface coupled to a payment network that is configured to receive transaction authorization requests originating from a merchant point-of-sale (POS) system, and to transmit an applicable transaction approval or decline response to the merchant POS system through the same path;   at least one storage device to store a database including user accounts, wherein each user account contains at least one linked payment account number and at least one token account number that is used to authorize a payment transaction between the merchant POS system and the apparatus; and   a processor configured to receive transaction authorization requests originating from the merchant POS system via the communications interface, select a user account from the user accounts stored in the database using the token account number contained in the received transaction authorization request, select a payment account number linked to the user account, transmit an authorization request against the selected linked payment account via the transaction authorization interface, receive and identify an approval or decline authorization response based on at least the state of the user account and the received authorization response associated with the linked payment account that is selected for authorization, and transmit a transaction approval or decline authorization response to the payment network and merchant point-of-sale system via the communications interface.   
     
     
         28 . The apparatus of  claim 27 , wherein the at least one account number is one of a plurality of information included in the token credential. 
     
     
         29 . The apparatus of  claim 27 , where the at least one token account number is within a Bank Identification Number (BIN) range associated with at least one of a payment card issuer and a payment network. 
     
     
         30 . The apparatus of  claim 29 , wherein the at least one token account number within the designated BIN range enables transaction authorizations to be routed from the merchant POS system, to an acquirer, to the applicable payment network, and to an applicable token credential issuer system for approval. 
     
     
         31 . The apparatus of  claim 27 , wherein the user accounts within the database have at least one linked payment account from one of a credit account, debit account, or stored value account payment type. 
     
     
         32 . The apparatus of  claim 27 , wherein a token account number is mapped to a single linked payment account or a plurality of linked payment accounts. 
     
     
         33 . The apparatus of  claim 32 , wherein the linked payment accounts have an associated account number that is within a designated Bank Identification Number (BIN) range associated with at least one of a specific payment network and a designated issuer. 
     
     
         34 . The apparatus of  claim 27 , wherein any linked payment account within the user account is changeable according to input received from a user. 
     
     
         35 . The apparatus of  claim 34 , wherein the linked payment account is changeable by linking a new account to replace an existing one, or deleting an existing linked account. 
     
     
         36 . The apparatus of  claim 27 , wherein a token credential account number assigned to the user account is updated within the database by an issuer. 
     
     
         37 . The apparatus of  claim 27 , wherein the processor selects a linked payment account upon receiving a transaction authorization request containing a token account number via the communications interface. 
     
     
         38 . The apparatus of  claim 37 , wherein when a user had previously selected a default payment account to be used, the processor selects the linked payment account that had been pre-selected by the user. 
     
     
         39 . The apparatus of  claim 37 , wherein the selection of a linked payment account is automatic when there is only one payment account linked to the user account. 
     
     
         40 . A method of conducting a financial transaction over a payment network using a token credential, the method comprising:
 transmitting a transaction authorization request containing an amount of the transaction and a token account number, from a merchant point-of-sale (POS) system to an applicable payment network and issuer transaction processing system;   receiving the transaction authorization request at the issuer transaction processing system;   selecting, by the issuer transaction processing system, a user account based on the token account number contained in the received transaction authorization request;   selecting, by the issuer transaction processing system, a payment account from one or more linked payment accounts contained within the user account to which a transaction amount is to be applied;   transmitting an authorization request against the selected payment account, and receiving an approval or decline authorization response at the issuer transaction processing system;   identifying an approval or decline authorization response based on at least the received transaction authorization response associated with the linked payment account that is authorized; and   transmitting a transaction approval or decline authorization response from the issuer transaction processing system to the payment network and the merchant POS system.   
     
     
         41 . The method of  claim 40 , wherein the token account number is within a Bank Identification Number (BIN) range associated with at least one of a payment card issuer and a payment network. 
     
     
         42 . The method of  claim 41 , further comprising:
 routing transaction authorizations having the token account number within the designated BIN range from the merchant POS system, to an acquirer, to the applicable payment network, and to an applicable token credential issuer system for approval.   
     
     
         43 . The method of  claim 40 , wherein the user account has at least one linked payment account from one of a credit account, debit account, or stored value account payment type. 
     
     
         44 . The method of  claim 40 , further comprising:
 linking the token account number to the payment account.   
     
     
         45 . The method of  claim 44 , further comprising:
 associating the linked payment account with an account number that is within a designated Bank Identification Number (BIN) range associated with a specific payment network and a designated issuer.   
     
     
         46 . The method of  claim 40 , further comprising:
 administering, with an issuer credential management system, the linked payment account.   
     
     
         47 . The method of  claim 40 , further comprising:
 changing the linked payment account in the user account according to input received from a user.   
     
     
         48 . The method of  claim 47 , wherein the changing of the linked payment account comprises:
 removing the linked payment account by linking a new account to replace an existing one, or deleting an existing linked account.   
     
     
         49 . The method of  claim 47 , wherein the changing the linked payment account comprises:
 changing the linked payment account via a software application on a mobile device or via a computer connected to the Internet.   
     
     
         50 . The method of  claim 40 , further comprising:
 issuing, with a credential issuance system, a token credential to a mobile device via a wireless network and the Internet.   
     
     
         51 . The method of  claim 50 , further comprising:
 storing the token credential, upon issuance, in a memory of the mobile device.   
     
     
         52 . The method of  claim 51 , further comprising:
 transmitting the token credential to a reader device when the mobile device's short-range radio-frequency (RF) interface comes in proximity to the reader's RF interface.   
     
     
         53 . The method of  claim 52 , wherein the reader device and the mobile device communicate via a short-range RF standard such as near field communication (NFC), Bluetooth, or another wireless communication standard that is mutually supported by both devices. 
     
     
         54 . The method of  claim 52 , wherein the transmission of the token credential to the reader device further comprises:
 initiating a transaction authorization request from the merchant POS system to the system via the applicable payment network associated with the token credential.   
     
     
         55 . The method of  claim 40 , further comprising:
 updating, by an issuer, a token credential account number assigned to the user account within the database.   
     
     
         56 . The method of  claim 55 , further comprising:
 correspondingly updating, by an issuer, a token account number stored in a mobile device's memory via a wireless network and the Internet.   
     
     
         57 . The method of  claim 55 , further comprising:
 storing a token credential account number in a magnetic-stripe card, a chip card, a mobile device, or a computer system.   
     
     
         58 . The method of  claim 55 , further comprising:
 transmitting the token credential account number to the merchant POS system by at least one of an encoded magnetic-stripe card, an encoded chip, via a radio frequency (RF) interface in a mobile device, and a computer system to initiate a payment authorization.   
     
     
         59 . The method of  claim 40 , further comprising:
 selecting a linked payment account upon receiving a transaction authorization request containing a token account number via the system.   
     
     
         60 . The method of  claim 59 , further comprising:
 when a user has previously selected a default payment account to be used, selecting the linked payment account that had been pre-selected by the user.   
     
     
         61 . The method of  claim 59 , wherein the selection of a linked payment account is automatic when there is only one payment account linked to the user account. 
     
     
         62 . The method of  claim 59 , further comprising:
 when there is no pre-selection made of the linked payment account by the user and there is more than one linked payment account, initiating a message to a mobile device or a computer system to prompt the user to make a selection from one of the linked payment accounts when a transaction authorization request containing the token account number is received by the system.   
     
     
         63 . The method of  claim 62 , further comprising:
 in response to the user's selection and the transaction approval or decline of the linked payment account, responding to the initial authorization request from the merchant POS with an approval or decline message.