METHOD FOR PERFORMING PAYMENT TRANSACTIONS

Abstract

The present invention relates to the field of information technology, the field of issuing and circulating electronic money and cryptocurrency, and the field of payment system technology and making payments. The present invention allows for creating a payment system that uses an Internet connection addressing system instead of BIN routing, and that is compatible with payment tokenization technology and making payments using payment cards and cryptocurrency, which in turn allows for decreasing the cost of making payments by means of using free Internet routing when making said payments, and also allows for providing buyers with the possibility of paying for purchases in cryptocurrency and of exchanging cryptocurrency for fiat money and vice versa using payment card technology. The technical result is achieved by replacing BIN routing of a payment card network by DNS routing of the Internet, as well as by adding an additional DNS token and cryptocurrency wallet address token to a database of a token service provider, and using said tokens to make payments.

Claims

1. A method of making payments, in which to increase the security of card payments using a smartphone, instead of a payment card number (PAN), a token is placed on the smartphone in the Bank Identification Number format (BIN token), and the PAN and the corresponding BIN token are also placed in the Token Service Provider (TSP) database and in the buyer's smartphone, and when making a payment, instead of the PAN, the BIN token is read from the smartphone and used to route the connection to the TSP in the payment network, and after establishing a connection with the TSP, transferring the BIN token to the TSP, finding in the TSP database the PAN corresponding to BIN token, the named PAN is used for making a payment, characterized in that the customer is assigned with a customer identifier for Internet (DNS token), and the IP address of the TSP is mapped to the named customer identifier in the Internet routing system, then the named DNS token is written into the TSP database as the PAN token of the buyer, and when the payment is required the DNS token is entered and used to route and establish the Internet connection with the TSP, and after establishing the connection with the TSP, the named DNS token is transmitted to the TSP, the PAN corresponding to the DNS token is found in the TSP database, retrieved and used to conduct the payment.

2. The method according to claim 1, characterized in that the buyer is additionally assigned the address of the cryptocurrency wallet (ACW) and the said address is recorded as the ACW token for the buyer's PAN in the TSP database, the following types of payments are made available in the system: 1) payment with payment card accounts to a cryptocurrency wallet, 2) payment from a cryptocurrency wallet to a payment card account, 3) payment for a purchase from a payment card account 4) payment for a purchase from a cryptocurrency wallet; and each of the types is assigned with a payment type identifier, then when making a payment, the payment type identifier is additionally entered, and when searching in the TSP database, either the account pair identifiers of 1) PAN and ACW, or 2) PAN and ACW or the identifier of one accounts i) PAN, or ii) ACC, are retrieved and used to make a payment either between the pair of accounts whose identifiers have been retrieved, or make a payment for a purchase from one account whose identifier has been retrieved.

Description

EXAMPLE 1. Payment for Purchases Using PAN

[0043] Suppose, for payment for the shopping cart, the customer has chosen the DNS payment payment method according to Serebrennikov's method. After choosing the DNS payment method, the system prompts the buyer to enter the DNS identifier of the account (aka DNS token). In accordance with the present invention, after entering the DNS identifier of the customer's account, the said DNS identifier is resolved into the IP address of the Token Service Provider via the DNS system. The obtained IP address is used to establish an Internet connection with the Token Service Provider. After the Internet connection is established, the Token Service Provider is provided with the payment amount and the DNS token entered by the buyer earlierit is the routing DNS identifier to the buyer's account in the Serebrennikov payment system. If the merchant's account is not known by default, then the Token Service Provider also receives the DNS identifier of the merchant's account or the Merchant ID of the merchant in the EMVCo card payment system. If the payment amount is nominated in fiat money, then using the received DNS token of the buyer's account, the Service Provider Token searches in the PAN table corresponding to the received DNS token and uses the PAN in accordance with the EMVCo regulations to transfer the said amount denominated in fiat currency to the seller (acquirer).

[0044] NOTE: The term known by default in relation to the merchant account ID means that the merchant account ID can be determined or found using a technique that does not require the transfer of the account ID itself.

[0045] For example, if a permanent network IP address is assigned to a merchant's terminal, then the named IP address, when establishing a connection with another Internet node, this IP address will become known to the named other node, which makes it possible to determine the merchant's account identifier using the table mapping merchants' permanent IP addresses to their account identifiers in payment system. To determine the default merchant account identifier, other techniques can be used that do not require the merchant identifier to be recorded in the payment instruction.

EXAMPLE 2. Payment for Purchases Using Cryptocurrency

[0046] Let's also assume that in EXAMPLE 1, the payment amount is denominated in cryptocurrency. After the Internet connection is established with the Token Service Provider, the routing DNS token of the buyer and the HASH (PUB) BitCoin address of the seller's wallet are transferred to it. Using the obtained DNS identifier, the Service Provider Token finds in its table HASH (PUB) token corresponding to the received DNS token and uses the found HASH (PUB) token for invoicing in which it specifies as the payee the named HASH (PUB) address of the merchant's BitCoin wallet using one of the known methods, for example https://bitpay.com/ or https://coingate.com/accept-bitcoin or https://coinsbank.com/merchant or any other known method.

EXAMPLE 3. Payment for the Purchase of Cryptocurrency

[0047] Suppose in EXAMPLE 1, a user buys cryptocurrency, with the purchase price expressed as an amount of fiat money. After establishing an Internet connection with the Token Service Provider, the value of the named amount of fiat money, the buyer's DNS token, and the seller's HASH (PUB) token or DNS token are transferred to it. Using the received DNS token of the buyer, the Token Service Provider finds in its table HASH (PUB) token corresponding to the received DNS token of the buyer and uses the found HASH (PUB) token of the buyer to issue an invoice to the seller in which he specifies as the payer named address HASH (PUB) token of the seller in one of the known ways, for example https://bitpay.com/ or https://coingate.com/accept-bitcoin or https://coinsbank.com/merchant or any other known way. At the same time, using the TSP by known merchant's HASH (PUB) token, the merchant's record is found in the table and the merchant's PAN or Merchant ID in it, and the buyer's PAN is found using the buyer's known DNS token, after which the TSP makes a payment from buyer's PAN to the PAN or Merchant ID of the seller.

[0048] The sale of cryptocurrency by a user can be carried out according to a scenario similar to EXAMPLE 3, which is not difficult to imagine for anyone who understands payment technologies.

EXAMPLE 4. Paying for Purchases in Fiat From the User's Cryptocurrency Account

[0049] To pay from the user's cryptocurrency account for a purchase, the value of which is expressed in the amount of fiat money, it is necessary to 1) convert the amount of the buyer's cryptocurrency funds into the amount of fiat money and 2) pay for the purchase in fiat money received from the exchange of cryptocurrency for fiat money. To convert cryptocurrency into fiat money in accordance with EXAMPLE 1, a connection is established with the TSP and an instruction is sent to the TSP containing the user's DNS token, the amount of fiat money and an order to pay for the purchase from the user's cryptocurrency account. If the merchant's account is not known by default, then the Token Service Provider in the instruction is also given the DNS token of the merchant's account or the Merchant ID of the merchant in the EMVCo card payment system in order to find the merchant's record in the TSP. Having received the instruction, the TSP extracts the buyer's DNS token from the instruction and finds the buyer's record in the PAN TSP table and finds the buyer's HASH (PUB) token corresponding to the buyer's DNS token in the record. After that, using the exchange rate of cryptocurrency for fiat money, they calculate the amount of cryptocurrency equivalent to the amount of payment in fiat money, make the payment of the named amount of cryptocurrency from the buyer's HASH (PUB) token account to the cryptocurrency account of the broker or the currency exchange, and the corresponding amount of the broker's fiat money, or exchange credit to the buyer's PAN account with subsequent payment for the purchase from the buyer's PAN account, or the corresponding amount of fiat money from the broker or exchange account is credited directly to the merchant's account.