US-12619990-B2 - System and method for conducting secure financial transactions

US12619990B2US 12619990 B2US12619990 B2US 12619990B2US-12619990-B2

Abstract

A system and method for conducting secure debit and credit card electronic financial transactions involving NFC card reading using a computer device includes the steps of identifying, by a computing system, a first payment source account held by a card holder; receiving, by computing system, transaction data associated with a transaction initiated by the cardholder with a merchant using the first payment source account, the transaction having a transaction amount; requesting, by a computing system, via a first network a first transfer of the transaction amount from the first payment source account within a predetermined time; determining a card status; storing the meta data associated with the transaction in a database wherein the meta data includes at least the card status; if the card status is card-present status, converting the card-present status into card-not-present status by virtue of the NFC card reading process using a computer device having an NFC card reading capabilities; and transferring the transaction amount to pay the merchant.

Inventors

Dmitriy Kolchin

Assignees

iWallet, Inc.

Dates

Publication Date: 20260505
Application Date: 20230523

Claims (11)

1 . A method for conducting secure debit and credit card electronic financial transactions involving NFC card reading using a computer device, the computer device comprising an NFC reader, at least two integrated cameras providing different viewpoints, a GPS receiver, a gyroscope, and a microphone, the method comprising: identifying, by a computing system, a first payment source account held by a card holder; receiving, by the computing system, transaction data associated with a transaction initiated by the cardholder with a merchant using the first payment source account, the transaction having a transaction amount; requesting, by the computing system, via a first network, a first transfer of the transaction amount from the first payment source account within a predetermined time; connecting to, powering, and reading, by the computer device, an NFC chip of a payment card to obtain tag-length-value (TLV) records including a primary account number encoded at tag 0x5A and an expiration date, and performing a zero-dollar authorization to verify the card and to obtain and store a network token; concurrently capturing, by the at least two integrated cameras, image frames of the payment card from different viewpoints; pre-validating candidate frames by computing a fast Fourier transform-based blur metric and rejecting frames that fail a blur threshold, detecting glare with a convolutional-neural-network-generated glare heatmap and rejecting frames that exceed a glare threshold, and detecting occlusion and requesting re-capture upon occlusion detection; verifying presence of a holographic image on the payment card by detecting viewpoint-dependent changes across the concurrently captured frames indicative of holographic motion; obtaining a first geolocation from the computer device during an NFC reading session and obtaining a second geolocation by transmitting a link to a device of the cardholder to capture an electronic signature and recording a geolocation at signature time; classifying cardholder presence when the first and second geolocations are within a predetermined radius; determining a card status, the card status being set to card-present only when both the holographic verification and the cardholder-presence classification succeed, and otherwise being set to card-not-present; storing metadata associated with the transaction in a database, the metadata including at least the card status, the holographic verification result, the first and second geolocations, and the network token, and encrypting the stored metadata; in response to determining that the card is present and the cardholder is not present, processing the network token obtained from the NFC read as a card-not-present transaction; and transferring the transaction amount to pay the merchant.
2 . The method of claim 1 , wherein the card-present status condition is met when the card is present, or the cardholder is present, or both.
3 . The method of claim 1 , wherein converting the card-present status into card-not-present status comprising: connecting, powering and reading an NFC chip on the card using an NFC reader of the computer device; querying the NFC chip for its data files and extracting at least one of a PAN card number and expiration date from the data files by decoding NFC records that are encoded in tag-length-value (TLV) format; and performing a “zero-dollar transaction” to verify the card validity and to store a token.
4 . The method of claim 3 , further comprising using a camera of the computer device, detecting and recording during the NFC card reading session, unique characteristics of the card comprising at least one of positioning or movement of the card, holographic image of the card, and an image of a person doing the transaction.
5 . The method of claim 3 , further comprising determining a geo-position of the card using a GPS sensor of the computing device for the purposes of fraud detection.
6 . The method of claim 3 , further comprising, using a gyroscope of the computing device, detecting micro movements of the computer device for tap presence, if the computing device is stationary.
7 . The method of claim 3 , further comprising, using a gyroscope of the computing device, detecting the movement of the computing device during the NFC reading session for proof of transaction, if the computing device is not stationary.
8 . The method of claim 3 , further comprising, using a microphone of the computing device, recording sounds and detecting the distance from the card to the computing device for proof of transaction.
9 . The method of claim 1 , further comprising, during the NFC reading session, extracting additional data from the computing device, wherein the data is at least one of computing device ID number and phone number, and sending the data to a processor for the transaction risk reduction and fraud prevention.
10 . A system for conducting secure debit and credit card electronic financial transactions involving NFC card reading using a computer device comprising: an NFC card reader; at least two integrated cameras providing different viewpoints; a GPS receiver; a gyroscope; a microphone; one or more processors; and one or more memories having stored thereon instructions that, when executed by the one or more processors, cause the one or more processors to: identify a first payment source account held by a card holder; receive transaction data associated with a transaction initiated by the cardholder with a merchant using the first payment source account, the transaction having a transaction amount; request, via a first network, a first transfer of the transaction amount from the first payment source account within a predetermined time; connect to, power, and read from an NFC chip of a payment card via the NFC card reader, decode TLV records to extract a primary account number encoded at tag 0x5A and an expiration date, and perform a zero-dollar authorization to verify the card and to obtain and store a network token; concurrently capture, by the at least two integrated cameras, image frames of the physical payment card at different viewpoints; pre-validate candidate frames by computing a fast Fourier transform blur metric and detecting glare with a convolutional neural network to generate a glare heatmap, reject frames failing thresholds, and detect occlusion and request re-capture upon occlusion detection; verify presence of a holographic image on the payment card by detecting viewpoint-dependent changes across the concurrently captured frames indicative of holographic motion; obtain a first geolocation from the computing device during the NFC reading session and obtain a second geolocation by transmitting a link to the cardholder's device to capture an electronic signature and recording the geolocation at signature time, and classify cardholder presence when the first and second geolocations are within a predetermined radius; determine a card status, wherein the card status is set to card-present only when both the holographic verification and the cardholder-presence classification succeed, and otherwise is set to card-not-present; store metadata associated with the transaction in a database wherein the metadata includes at least the card status, the holographic verification result, the geolocations, and the token, and encrypt the stored metadata; in response to determining that the card is present and the cardholder is not present, process the token obtained from the NFC read as a card-not-present transaction; and transfer the transaction amount to pay the merchant.
11 . A non-transitory physical computer storage medium storing instructions that, when executed by one or more computing devices having an NFC reader, at least two integrated cameras providing different viewpoints, a GPS receiver, a gyroscope, and a microphone, configure the one or more computing devices to: identify a first payment source account held by a card holder; receive transaction data associated with a transaction initiated by the cardholder with a merchant using the first payment source account, the transaction having a transaction amount; request, via a first network, a first transfer of the transaction amount from the first payment source account within a predetermined time; connect to, power, and read from an NFC chip of a payment card, decode TLV records to extract a primary account number encoded at tag 0x5A and an expiration date, and perform a zero-dollar authorization to verify the card and to obtain and store a network token; concurrently capture image frames of the physical payment card at different viewpoints; pre-validate candidate frames using a fast Fourier transform-based blur metric, a convolutional-neural-network glare heatmap, and occlusion detection; verify a holographic image on the card from viewpoint-dependent changes across the concurrently captured frames; obtain a first geolocation from the computing device during the NFC reading session and obtain a second geolocation by sending a link to the cardholder's device to capture an electronic signature and recording the geolocation at signature time, and classify cardholder presence when the first and second geolocations are within a predetermined radius; determine a card status, set the card status to card-present only when both the holographic verification and the cardholder-presence classification succeed, and otherwise set the card status to card-not-present; store metadata associated with the transaction in a database wherein the metadata includes at least the card status, the holographic verification result, the geolocations, and the token, and encrypt the stored metadata; in response to determining that the card is present and the cardholder is not present, process the token obtained from the NFC read as a card-not-present transaction; and transfer the transaction amount to pay the merchant.

Description

CROSS-REFERENCE TO RELATED APPLICATIONS This application is a continuation-in-part of U.S. non-provisional patent application Ser. No. 17/398,590 filed on Aug. 10, 202, U.S. non-provisional patent application Ser. No. 17/882,916 filed on Aug. 8, 2022, U.S. non-provisional patent application Ser. No. 17/985,419 filed on Nov. 11, 2022, and U.S. non-provisional patent application Ser. No. 18/090,866 filed on Dec. 29, 2022, the contents of which are incorporated herein by reference in their entirety. TECHNICAL FIELD The present invention relates to a system and computer-implemented methods for conducting secure electronic financial transactions. BACKGROUND ART Electronic transactions make it possible to conduct a payment efficiently and with minimal physical interaction between a consumer and a merchant. However, electronic transactions come with a number of risks to both the merchant and the consumer. Since surcharge fees laws changed, a consumer can be responsible for paying the processing fee. These processing fees can vary depending on the card chosen for the transaction, meaning that a consumer could pay a high fee when a lower fee was possible. In addition, surcharging does not work for tips collected at a restaurant because a restaurant cannot add a fee on top of the tips on the check after the consumer has left the building. Also commonly used are automated clearing house (ACH) transactions. ACH is a form of electronic payment. Specifically, ACH is an electronic fund transfer through an ACH network including the Federal Reserve Bank from one account to another account, such as to a checking or savings account. ACH is typically used to process payments for settlement within a period of time, such as a few business days. ACH transactions are settled in a manner similar to the way checks are settled. The clearinghouse takes all ACH files received daily from its member banks, sorts them by the originating bank (the bank where the check was cashed or deposited) and the paying bank (the bank against which the check was drawn), totals the accounts, and credits or debits appropriate accounts accordingly. When the transaction is an automated clearing house (ACH) transaction, there is a risk that the transaction will not finalize because it takes days to process an ACH transaction. The use of applications on computing devices allow for these electronic transactions to be calculated in real-time meaning that tips can be calculated in real-time on the customer's phone. This is further possible because information from the bank identification number (BIN) and other data make it possible to detect the fee in real time. Therefore, there is a need for a system that calculates electronic transactions and their respective surcharges in real-time as well as a system that secures payment when the original payment does not go through. SUMMARY OF THE EMBODIMENTS The present invention relates to conducting electronic transactions through a computing device between a consumer and a merchant. The present invention proposes to introduce a novel process to conduct electronic transactions in real-time. This novel process will allow a consumer to determine the total payment including the exact surcharge before processing the electronic payment. In addition, this novel process will allow a merchant to receive a final electronic payment in real-time because this system mandates a primary e-check payment and a back-up credit card payment. The back-up credit card payment is a pre-authorized feature that secures the e-check. This means if the e-check payment bounces, the credit card payment can be immediately charged. If the e-check does not bounce, then the credit card payment will be released. This system will give the merchant the ability to recoup losses by the use any connected payment source in case the original ACH transaction has failed. The transactions may include, but are not limited to credit cards, debit cards, and automated clearing house (ACH). A consumer will be able to automatically choose payment method based on merchant type and payment source type. In order to utilize this invention, a consumer will need to set up a consumer account by visiting a website. Once the account is set, a consumer will need to connect a bank checking account to fund the iWallet account and add a credit card. In some embodiments the electronic transaction will be conducted on a consumer's mobile phone. The mobile phone possesses capabilities of GPS location identification, radio and near-frequency communication capabilities, mobile data/internet functionality, optical scanning capabilities, and have a mobile payment application that scans a QR code. QR codes can be printed on paper, stickers, or any other physical media. The electronic payment will initiate when the merchant sends a payment by email, text, or QR-code. Use of this system will help to resolve disputes for ACH and CC payments because this novel system will provide more context