Transaction authorization process using blockchain

Abstract

Systems and methods for transaction authorizations using a distributed database are disclosed. The system may allow registered transaction account holders and merchants to interact and complete transactions according to workflows enforced by smart contracts. The system may include an issuer system that receives a transaction authorization request comprising a merchant ID, a transaction account number, a transaction amount, and a transaction ID. The issuer system may retrieve a merchant public key and a smart contract based on the merchant ID, and a user public key based on the transaction account number. The issuer system may invoke the smart contract by passing the user public key and the transaction ID to the smart contract. The system may propagate transaction data (e.g., the merchant ID, the transaction account number, the payment amount, a transaction status, etc.) to a blockchain network for writing to a blockchain according to the invoked smart contract.

What is claimed is: 
     
         1 . A method comprising:
 receiving, by an issuer system, a transaction authorization request comprising a merchant ID, a transaction account number, a transaction amount, and a transaction ID;   retrieving, by the issuer system in electronic communication with an issuer repository, a merchant public key based on the merchant ID, a smart contract based on the merchant ID, and a user public key based on the transaction account number;   invoking, by the issuer system, the smart contract by passing the user public key and the transaction ID to the smart contract; and   propagating, by the issuer system, the merchant ID, the transaction account number, the payment amount, and a transaction status to a blockchain network for writing to a blockchain according to the invoked smart contract.   
     
     
         2 . The method of  claim 1 , wherein the merchant public key and the user public key comprise blockchain addresses. 
     
     
         3 . The method of  claim 1 , wherein a merchant system is configured to request the merchant public key and a merchant private key from a merchant blockchain wallet, wherein the smart contract is selected by the merchant system and deployed to the blockchain, and wherein the merchant system is configured to transmit the merchant ID, the merchant public key, and the smart contract to the issuer system to register a merchant-to-smart contract relationship. 
     
     
         4 . The method of  claim 3 , wherein the selected smart contract is generated based on input regarding a proposed good or service. 
     
     
         5 . The method of  claim 3 , wherein the invoked smart contract is secured using the merchant private key. 
     
     
         6 . The method of  claim 1 , wherein a user device is configured to request the user public key and a user private key from a user blockchain wallet, and transmit the transaction account number and the user public key to the issuer system to register a user-to-blockchain relationship. 
     
     
         7 . The method of  claim 1 , wherein the smart contract comprises a return policy, a refund policy, a partial payment schedule, a full payment workflow, a service deployment schedule, or a product delivery schedule. 
     
     
         8 . A computer-based system for processing transaction authorizations, comprising:
 a processor; and   a tangible, non-transitory memory configured to communicate with the processor, the tangible, non-transitory memory having instructions stored thereon that, in response to execution by the processor, cause an issuer system to perform operations comprising:   receiving, by an issuer system, a transaction authorization request comprising a merchant ID, a transaction account number, a transaction amount, and a transaction ID;   retrieving, by the issuer system in electronic communication with an issuer repository, a merchant public key based on the merchant ID, a smart contract based on the merchant ID, and a user public key based on the transaction account number;   invoking, by the issuer system, the smart contract by passing the user public key and the transaction ID to the smart contract; and   propagating, by the issuer system, the merchant ID, the transaction account number, the payment amount, and a transaction status to a blockchain network for writing to a blockchain according to the invoked smart contract.   
     
     
         9 . The computer-based system of  claim 8 , wherein the merchant public key and the user public key comprise blockchain addresses. 
     
     
         10 . The computer-based system of  claim 8 , wherein a merchant system is configured to request the merchant public key and a merchant private key from a merchant blockchain wallet, wherein the smart contract is selected by the merchant system and deployed to the blockchain, and wherein the merchant system is configured to transmit the merchant ID, the merchant public key, and the smart contract to the issuer system to register a merchant-to-smart contract relationship. 
     
     
         11 . The computer-based system of  claim 10 , wherein the selected smart contract is generated based on input regarding a proposed good or service. 
     
     
         12 . The computer-based system of  claim 10 , wherein the invoked smart contract is secured using the merchant private key. 
     
     
         13 . The computer-based system of  claim 8 , wherein a user device is configured to request the user public key and a user private key from a user blockchain wallet, and transmit the transaction account number and the user public key to the issuer system to register a user-to-blockchain relationship. 
     
     
         14 . The computer-based system of  claim 8 , wherein the smart contract comprises a return policy, a refund policy, a partial payment schedule, a full payment workflow, a service deployment schedule, or a product delivery schedule. 
     
     
         15 . A method, comprising:
 requesting, by a merchant system in electronic communication with a merchant blockchain wallet, a merchant public key and a merchant private key from the merchant blockchain wallet;   selecting, by the merchant system, a smart contract;   deploying, by the merchant system, the smart contract to a blockchain; and   transmitting, by the merchant system in electronic communication with the issuer system, the merchant ID, the merchant public key, and the smart contract to the issuer system to register a merchant-to-smart contract relationship.   
     
     
         16 . The method of  claim 15 , wherein the selected smart contract is generated based on input regarding a proposed good or service. 
     
     
         17 . The method of  claim 15 , wherein the invoked smart contract is secured using the merchant private key. 
     
     
         18 . The method of  claim 15 , further comprising transmitting, by the merchant system, a transaction authorization request comprising a merchant ID, a transaction account number, a transaction amount, and a transaction ID to an issuer system,
 wherein the issuer system is configured to retrieve the merchant public key based on the merchant ID, the smart contract based on the merchant ID, and a user public key based on the transaction account number,   wherein the issuer system is configured to invoke the smart contract by passing the user public key and the transaction ID to the smart contract, and   wherein the issuer system is configured to propagate the merchant ID, the transaction account number, the payment amount, and a transaction status to a blockchain network for writing to a blockchain according to the invoked smart contract.   
     
     
         19 . The method of  claim 18 , wherein the merchant public key and the user public key comprise blockchain addresses. 
     
     
         20 . The method of  claim 15 , wherein the selected smart contract comprises a return policy, a refund policy, a partial payment schedule, a full payment workflow, a service deployment schedule, or a product delivery schedule.