Processing of financial transactions using debit networks

Abstract

Methods and systems are disclosed for executing financial transactions between customers and merchants. An identifier of a financial account is received from the customer at a merchant system. A one-time password is also received from the customer at the merchant system, with the customer having been provided with the one-time password by a mobile electronic device or contactless presentation instrument. A cryptogram is generated to include the identifier of the financial account encrypted using the one-time password. An authorization request is formulated at the merchant system. The authorization request includes the cryptogram and transaction information describing at least a portion of the financial transaction. The authorization request is transmitted from the merchant system to an authorization processor for authorization of the financial transaction.

1 . A method of executing a financial transaction between a customer and a merchant, the method comprising:
 receiving an encrypted authorization request from a merchant system at an authorization processor, wherein the authorization request was encrypted by application of a one-time password provided to the merchant by a presentation instrument;   decrypting the authorization request;   identifying a financial account from the decrypted authorization request;   determining transaction information describing at least a portion of the financial transaction from the decrypted authorization request;   determining authenticity of the transaction information by validating the one-time password; and   determining whether the identified financial account is capable of supporting the financial transaction based on the transaction information.   
     
     
         2 . The method recited in  claim 1  further comprising delivering a loyalty customer identification number from the presentation instrument to the merchant. 
     
     
         3 . The method recited in  claim 1  wherein the identifier comprises an account number of the financial account. 
     
     
         4 . The method recited in  claim 1  wherein the one-time password comprises a two-factor one-time password. 
     
     
         5 . The method recited in  claim 1  wherein the merchant system comprises an Internet web server. 
     
     
         6 . The method recited in  claim 1  wherein the merchant system comprises a merchant point-of-sale device. 
     
     
         7 . The method recited in  claim 1  further comprising verifying authenticity of the one-time password by validating the personal identification number associated with the identified financial account. 
     
     
         8 . The method recited in  claim 1  wherein the debit presentation instrument comprises a cellular telephone. 
     
     
         9 . The method recited in  claim 1  wherein the transaction information comprises data selected from the group consisting of a total cost for the financial transaction, a location, a point-of-sale-device identifier, a point-of-sale-device sequence number, a date, and a time. 
     
     
         10 . The method recited in  claim 1  wherein the financial account comprises an account selected from the group consisting of a debit account, a credit account, and a stored-value account. 
     
     
         11 . A computer-readable storage medium having a computer-readable program embodied therein for directing operation of an authorization processor to execute a financial transaction between a customer and a merchant, the authorization processor including a communications system, a processor, and a storage device, wherein the computer-readable program includes:
 instructions for receiving an encrypted authorization request from a merchant system at the authorization processor, wherein the authorization request was encrypted by application of a one-time password provided to the customer by a presentation instrument;   instructions for decrypting the authorization request;   instructions for identifying a financial account from the decrypted authorization request;   instructions for determining transaction information describing at least a portion of the financial transaction from the decrypted authorization request;   instructions for determining authenticity of the transaction information by validating the one-time password; and   instructions for determining whether the identified financial account is capable of supporting the financial transaction based on the transaction information.   
     
     
         12 . The system recited in  claim 11  wherein the computer-readable program further includes instructions for delivering a loyalty customer identification number from the presentation instrument to the merchant. 
     
     
         13 . The system recited in  claim 11  wherein the identifier comprises an account number of the financial account. 
     
     
         14 . The system recited in  claim 11  wherein the one-time password comprises a two-factor one-time password. 
     
     
         15 . The system recited in  claim 11  wherein the merchant system comprises an Internet web server. 
     
     
         16 . The system recited in  claim 11  wherein the merchant system comprises a merchant point-of-sale device. 
     
     
         17 . The system recited in  claim 11  wherein the computer-readable program further includes instructions for verifying authenticity of the one-time password by validating the personal identification number associated with the identified financial account. 
     
     
         18 . The system recited in  claim 11  wherein the debit presentation instrument comprises a cellular telephone. 
     
     
         19 . The system recited in  claim 11  wherein the transaction information comprises data selected from the group consisting of a total cost for the financial transaction, a location, a point-of-sale-device identifier, a point-of-sale-device sequence number, a date, and a time. 
     
     
         20 . The system recited in  claim 11  wherein cryptographic keys used to generate the one-time password on the presentation instrument are generated on the presentation instrument and transmitted to an authentication processor or are generated on the authentication processor and transmitted to the presentation instrument. 
     
     
         21 . The system recited in  claim 11  wherein the financial account comprises an account selected from the group consisting of a debit account, a credit account, and a stored-value account.