US-12619988-B2 - Systems and methods for single message transactions with batch settlement

US12619988B2US 12619988 B2US12619988 B2US 12619988B2US-12619988-B2

Abstract

A computer-implemented method for processing single message transactions with batch settlement may include receiving a dual-message transaction from a merchant, converting the received dual-message transaction to a single-message transaction, setting a flag on the converted single-message transaction indicating the conversion to a single-message transaction, receiving a batch settlement file from the merchant, for each transaction in the batch settlement file, determining whether the single-message transaction conversion flag is set, upon determining that the single-message transaction conversion flag is not set, storing the transaction for later processing, and upon determining that the single-message transaction conversion flag is set, sending the transaction to a payment network.

Inventors

Ramesh Vijayaraghavan
Samuel Adams

Assignees

WORLDPAY, LLC

Dates

Publication Date: 20260505
Application Date: 20240815

Claims (20)

1 . A computer-implemented method for processing converted single-message transactions using a system comprising a merchant system and an authorization server, the method comprising: receiving, by the merchant system, personal identification number-based (PIN-based) debit payment vehicle information associated with a transaction authorization request initiated at a merchant terminal associated with the merchant system, wherein the transaction authorization request comprises a dual-message transaction is to be processed by a dual-message payment network using a dual-message transaction scheme; setting, by the merchant system, an eligibility flag on the dual-message transaction based on the transaction authorization request comprising information that the dual-message transaction is eligible to be converted to a single-message transaction; receiving, by the authorization server in communication with the merchant system, the transaction authorization request comprising the dual-message transaction and the eligibility flag being set on; converting, by the authorization server, the dual-message transaction to a single-message transaction based on the eligibility flag and using a single-message transaction scheme, wherein the single-message transaction is to be processed by a single-message payment network using the single-message transaction scheme and as a personal identification number-less (PIN-less) debit transaction; setting, by the authorization server, a conversion flag on the single-message transaction, wherein the conversion flag comprises an indication that the single-message transaction is a converted dual-message transaction; transmitting, by the authorization server, a transaction authorization response message to the merchant system, wherein the transaction authorization response message comprises data associated with the single-message transaction converted from the dual-message transaction and the conversion flag; capturing, by the merchant system and from the merchant terminal, data associated with the transaction authorization response message, wherein capturing the data further comprises transmitting the captured data in a settlement file; transmitting, by the authorization server, a transaction request to a single-message payment network for processing the single-message transaction converted from the dual-message transaction based on the conversion flag and the transaction authorization response message from the settlement file; receiving, by the authorization server, a transaction response message for the transaction request from the single-message payment network; and transmitting, by the authorization server, the transaction response message to the merchant system for the single-message transaction converted from the dual-message transaction.
2 . The computer-implemented method of claim 1 , further comprising: registering, by the merchant system, the merchant terminal for conversion of dual-message transactions to single-message transactions.
3 . The computer-implemented method of claim 1 , wherein the transaction authorization request is processed by the single-message payment network according to the single-message transaction scheme.
4 . The computer-implemented method of claim 1 , wherein the single-message transaction is a personal identification number-less (PIN-less) debit transaction.
5 . The computer-implemented method of claim 1 , wherein prior to the converting, the method further comprises: determining, by the authorization server, that the dual-message transaction is authorized.
6 . The computer-implemented method of claim 1 , further comprising: determining, by the authorization server, that the conversion flag is not set on a second single-message transaction; and storing, by the authorization server, the second single-message transaction for later processing.
7 . The computer-implemented method of claim 1 , wherein transmitting the transaction request to the single-message payment network is part of batch processing based on the conversion flag.
8 . A system for processing converted single-message transactions, the system comprising: an authorization server; and a merchant system comprising: a first processor; and a first computer-readable medium storing first instructions that, when executed by the first processor, cause the first processor to perform operations comprising: receiving personal identification number-based (PIN-based) debit payment vehicle information associated with a transaction authorization request initiated at a merchant terminal associated with the merchant system, wherein the transaction authorization request comprises a dual-message transaction configured to be processed by a dual-message payment network using a dual-message transaction scheme; and setting an eligibility flag on the dual-message transaction based on the transaction authorization request comprising information that an eligibility of the dual-message transaction is eligible to be converted to a single-message transaction; wherein the authorization server, in electronic communication with the merchant system, comprises: a second processor; and a second computer-readable medium storing second instructions that, when executed by the second processor, cause the second processor to perform operations comprising: receiving, from the merchant system, the transaction authorization request comprising the dual-message transaction and the eligibility flag being set on; converting the dual-message transaction to a single-message transaction based on the eligibility flag and using a single-message transaction scheme, wherein the single-message transaction is to be processed by a single-message payment network using the single-message transaction scheme and as a personal identification number-less (PIN-less) debit transaction; setting a conversion flag on the single-message transaction, wherein the conversion flag comprises an indication that the single-message transaction is a converted dual-message transaction; and transmitting a transaction authorization response message to the merchant system; and wherein the first instructions that, when executed by the first processor of the merchant system, further cause the first processor to perform the operations comprising: capturing, from the merchant terminal, data associated with the transaction authorization response message and the conversion flag, wherein capturing the data further comprises transmitting the captured data in a settlement file; wherein the second instructions that, when executed by the second processor of the authorization server, further cause the second processor to perform the operations comprising: transmitting a transaction request to a single-message payment network for processing the single-message transaction converted from the dual-message transaction based on the conversion flag and the transaction authorization response message, wherein the transaction authorization response message comprises data associated with the single-message transaction and the conversion flag from the settlement file; receiving, a transaction response message for the transaction request from the single-message payment network; and transmitting the transaction response message to the merchant system for the single-message transaction converted from the dual-message transaction.
9 . The system of claim 8 , wherein the first instructions that, when executed by the first processor of the merchant system, cause the first processor to further perform the operations comprising: registering the merchant terminal for conversion of dual-message transactions to single-message transactions.
10 . The system of claim 8 , wherein the transaction authorization request is processed by the single-message payment network according to the single-message transaction scheme.
11 . The system of claim 8 , wherein the single-message transaction is a personal identification number-less (PIN-less) debit transaction.
12 . The system of claim 8 , wherein prior to the converting, the second instructions that, when executed by the second processor of the authorization server, cause the second processor to further perform the operations comprising: determining that the dual-message transaction is authorized.
13 . The system of claim 8 , wherein the second instructions that, when executed by the second processor of the authorization server, cause the second processor to further perform the operations comprising: determining that the conversion flag is not set on a second single-message transaction; and storing the second single-message transaction for later processing.
14 . The system of claim 8 , wherein transmitting the transaction request to the single-message payment network is part of batch processing based on the conversion flag.
15 . A non-transitory machine-readable media storing first instructions and second instructions for a system comprising a merchant system and an authorization server to perform a method for processing converted single-message transactions, wherein the first instructions that, when executed by the merchant system, cause the merchant system to perform the method comprising: receiving personal identification number-based (PIN-based) debit payment vehicle information associated with a transaction authorization request initiated at a merchant terminal associated with the merchant system, wherein the transaction authorization request comprises a dual-message transaction configured to be processed by a dual-message payment network using a dual-message transaction scheme; setting an eligibility flag on the dual-message transaction based on the transaction authorization request comprising information that the dual-message transaction is eligible to be converted to a single-message transaction; wherein the second instructions that, when executed by the authorization server in electronic communication with the merchant system, cause the authorization server to perform the method comprising: receiving, from the merchant system, the transaction authorization request comprising the dual-message transaction and the eligibility flag being set on; converting the dual-message transaction to a single-message transaction based on the eligibility flag and using a single-message transaction scheme, wherein the single-message transaction is to be processed by a single-message payment network using the single-message transaction scheme and as a personal identification number-less (PIN-less) debit transaction; setting a conversion flag on the single-message transaction, wherein the conversion flag comprises an indication that the single-message transaction is a converted dual-message transaction; and transmitting a transaction authorization response message to the merchant system; and wherein the first instructions that, when executed by the merchant system, further cause the merchant system to perform the method comprising: capturing, from the merchant terminal, data associated with the transaction authorization response message and the conversion flag, wherein capturing the data further comprises transmitting the captured data in a settlement file; wherein the second instructions that, when executed by the authorization server, cause the authorization server to perform the method comprising: transmitting a transaction request to a single-message payment network for processing the single-message transaction converted from the dual-message transaction based on the conversion flag and the transaction authorization response message, wherein the transaction authorization response message comprises data associated with the single-message transaction and the conversion flag from the settlement file; receiving a transaction response message for the transaction authorization request from the single-message payment network; and transmitting the transaction response message to the merchant system for the single-message transaction converted from the dual-message transaction.
16 . The non-transitory machine-readable media of claim 15 , wherein the first instructions that, when executed by the merchant system, cause the merchant system to further perform the method comprising: registering the merchant terminal for conversion of dual-message transactions to single-message transactions.
17 . The non-transitory machine-readable media of claim 15 , wherein the transaction authorization request is processed by the single-message payment network according to the single-message transaction scheme.
18 . The non-transitory machine-readable media of claim 15 , wherein the single-message transaction is a personal identification number-less (PINless) debit transaction.
19 . The non-transitory machine-readable media of claim 15 , wherein prior to the converting, the second instructions that, when executed by the authorization server, cause the authorization server to further perform the method comprises: determining that the dual-message transaction is authorized.
20 . The non-transitory machine-readable media of claim 15 , wherein the second instructions that, when executed by the authorization server, cause the authorization server to further perform the method comprises: determining that the conversion flag is not set on a second single-message transaction; and storing the second single-message transaction for later processing.

Description

CROSS-REFERENCE TO RELATED APPLICATION(S) This application is a continuation of and claims the benefit of priority to U.S. application Ser. No. 18/061,144, filed Dec. 2, 2022, which claims the benefit of priority to U.S. application Ser. No. 16/995,317, filed Aug. 17, 2020, now U.S. Pat. No. 11,544,709. TECHNICAL FIELD Various embodiments of the present disclosure relate generally to methods and systems for electronic transaction messaging. More particularly, the technologies described herein relate to the field of conversion and routing of distinct electronic transaction message types through one or more electronic transaction networks. BACKGROUND Transactions, including card transactions, are used for a great number of purchases and sales between merchants and cardholders. A normal card transaction can involve a number of parties, including an account holder who possesses a card, a merchant, an acquirer processor, an issuer processor, an issuer financial institution and a card association network. Millions of such transactions occur daily at merchants using a variety of payment vehicle types, such as credit cards, debit cards, prepaid cards, digital wallets, and so forth. Depending on the type of payment vehicle used, the transaction may be processed by the involved parties by exchanging messages in accordance with an appropriate messaging scheme. For example, in a dual-message transaction, which primarily involves signature-based transactions including credit card transactions and signature-based debit card transactions, an electronic message containing the information required for an authorization decision may be submitted at the time of purchase, and a separate electronic message containing additional data required for clearing and settlement may be submitted at a later point in time. In a single-message transaction, which primarily involves debit card transactions including both personal identification number (PIN)-based and PIN-less debit card transactions, a single electronic message containing all data required for the authorization, clearing, and settlement of the transaction may be submitted at the time of purchase. Under certain circumstances, the fees associated with the dual-message transaction may be higher compared to those associated with the single-message transaction. When a customer initiates a dual-message transaction (e.g., a credit card transaction, a signature-based debit card transaction), the issuer financial institution takes a risk by transferring the funds to the merchant and waiting to collect the funds from the consumer at a later date. The merchant may thus be subjected to a percentage fee charged by the issuer financial institution for taking such a risk and processing the transaction, in addition to the fees charged by other entities for the time and resources used to process the transaction. On the other hand, when a customer initiates a single-message transaction (e.g., a PIN-based or PIN-less debit card transaction), the customer authorizes funds to be transferred from her account to the merchant's account at the time of sale. Accordingly, routing and processing the single-message transaction (for example, in a debit network) may consume less resources, incur less fees, and may allow the merchant to realize cost-savings by routing transactions using alternative domestic networks. The present disclosure is directed to overcoming one or more of these above-referenced challenges. The background description provided herein is for the purpose of generally presenting the context of the disclosure. Unless otherwise indicated herein, the materials described in this section are not prior art to the claims in this application and are not admitted to be prior art, or suggestions of the prior art, by inclusion in this section. SUMMARY OF THE DISCLOSURE According to certain aspects of the present disclosure, systems and methods are disclosed for processing single message transactions with batch settlement. In one embodiment, a computer-implemented method is disclosed for processing single message transactions with batch settlement, the method comprising: receiving a dual-message transaction from a merchant, converting the received dual-message transaction to a single-message transaction, setting a flag on the converted single-message transaction indicating the conversion to a single-message transaction, receiving a batch settlement file from the merchant, for each transaction in the batch settlement file, determining whether the single-message transaction conversion flag is set, upon determining that the single-message transaction conversion flag is not set, storing the transaction for later processing, and upon determining that the single-message transaction conversion flag is set, sending the transaction to a payment network. In accordance with another embodiment, a system is disclosed for processing single message transactions with batch settlement, the system comprising: a data s