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Patents A ct 19 COMPLETE SPECIFICATION INNOVATION PATENT Invention Title: Transact io ytmspporting (INmi currency C1-C1cV n1VCr'Sion The following statement is a full description of this invention, including the best method of performing it known to us: 005237669v4 doc Transaction system supporting dynamic currency conversion Technical field The present invention relates to transaction systems for Ise in multi-currency environments that allow transactions to be conducted in one or more currencies. The invention also relates to methods ol conducting dynamic currency conversions, either in whole or in part.
Background of the invention Figure 1 shows a block diagram representative of the entities that may be involved in a card payment system and the information transfer between those entities in a typical card payment system.
A cardholder 1 obtains a transaction card 6 from an issuer 4. The issuer 4 may typically be a retail banking or financial institution. Issuers 4 provide transaction cards 6 for use at point of sale (POS) terminals 7 located at merchants 2. Transactions initiated at POS terminals 7 are acquired and processed by acquirers 3 via card scheme administrators 5. Examples of current card schemes include the MasterCard International.
VISA International, Diners Club and American Express schemes.
The cardholder 1 uses their transaction card 6 to make a financial transaction at a merchant 2. For example, where the cardholder 1 is the holder of a credit card, they may swipe their card through a point of sale (POS) terminal 7 provided at the premises of a merchant 2. The POS terminal 7 extracts account details from the transaction card 6, including the card number that identities the financial account of the cardholder I with the relevant financial institution the issuer 4).
Tlhe POS terminal 7 is connected or connectable to a nclwork 8. For example, smaller scale merchants 2 may connect to the network 8 through a dial-up connection to a PSTN network. Alternative public or private local and/or wide area networks based on industry standard or proprietary wired or wireless technologies and network connections may be used for central handling of transactions. The account details and particulars of the transaction are then sent to and are received by an acquirer 3. The particulars of the transaction may include the II) of the POS terminal 7. the ID of the merchant 2. the 005237669v4.doc number of the transaction card 6, the value of the requested transaction and the currency of the requested transaction.
Upon receipt of the transaction particulars, the acquircr 3 sorts the Iransactions into groups according to the card scheme and sends the transactions relating to a card scheme to the appropriate card scheme administrator 5 (one only shown in Figure The first digits of the transaction card 6 number typically identify the card scheme.
The card scheme administrator 5 then sorts the transactions that it receives by the issuer 4 of the transaction card 6. This may be achieved by examining the BIN number, which is often the first six digits of the credit card. Each issuing bank is assigned one or more BIN numbers, so that all cards issued by that issuer 4 commence with one of those BIN numbers.
Upon receipt of the transaction particulars, the issuer 4 sends back a response to the card scheme administrator 5. The card scheme administrator 5 forwards this response to the acquirer 3, who in turn returns the response to the POS terminal 7 with an authorisation code.
If the transaction has been successful, the issuer 4 then manages the transfer of funds between the account of the cardholder I and the card scheme administrator 5. The card scheme administrator 5 transfers the funds to the acquirer 3 who then settles the funds with the merchant 2. The acquirer 3 sends a statement o' account to the merchant 2 and the issuer sends a statement of account to the cardholder 1. Often an acquircr 3 is also an issuer 4.
Where the local currency of a merchant 2 does not match the local currency of a cardholder I, for example where the cardholder I has travelled overseas, the cardholder 1 may have difficulty appreciating the true value of the transaction. This is because traditionally the transaction is made in the currency of the merchant 2. with the card scheme administrator 5 attending to the necessary foreign exchange. This identified problem lead to the development of Dynamic Currency Conversion (I)CC).
DCC allows a cardholder 1 to conduct a transaction at a merchant 2 in their local currency instead of the local currency of the merchant 2. A fee may be charged for the service. The advantage of DCC, if used in the right circumstances, is that the cardholder I can see the exact value that will appear in their statement of account from their respective 005237669v4.doc 4 issuer 4 at the time of the transaction. In DCC transactions, it is the acquirer 3 that attlnds to the necessary foreign exchange, instead of the card scheme administrator One method of completing a DCC transaction is for the POS terminal 7 to look up a table that lists the BIN number of cards and the associated local currency. A problem with implementing DCC in this manner is that it requires a POS terminal 7 with processing and display capabilities beyond those of many POS terminals 7 that arc currently in use. Also, the table of BIN numbers inside the POS terminal 7 must be kept up to date to ensure that the cardholder I is offered the correct currency. Another problem from the perspective of the provider of DCC is that there is often no obligation on the merchant to offer the option of performing the transaction in the local currency of the cardholder 1. A still further problem arises when the local currency of the cardholder I does not match the currency that he or she is billed in by the card scheme administrator which leads to additional foreign exchange charges that the cardholder I may not be expecting.
For c-commerce applications, a transaction system having a similar structure to that shown in Figure 1 may be used, with the POS terminal 7 replaced by an alternative transaction terminal, for example a personal computer mobile phone. personal digital assistant or other similar device, which may conmmunicate with the system of a merchant 2 through a communication channel.
Summary of the Invention According to a first aspect of the present invention, there is provided a method of performing a funds transaction that includes providing the option to perform the transaction using dynamic currency conversion, the method comprising the steps of: at a transaction terminal, receiving information that identilies an account and/or related information to an account; using said information, determining whether the transaction is eligible for dynamic currency conversion; if the transaction is eligible for dynamic currency conversion conducting the transaction in a nominated currency entered by an operator of the transaction terminal using an input device of the transaction terminal: 005237669v4 dc f the transaction is not eligible. perlorming the tranSacli ion in a (fefault currencV.
In one cinbodiment the method further includes re ulirlilg the p01eraCitor of the transaction terminal to specify whether or not dynamnic currency conversion is to be pertOrimcd belbre allowing the transaction to proceed.
In one embodiment the default currency is the nominated l currncy of'l Ia echant Operator ol' the transaction terminal.
In one embodiment, at least part ol' the inlbrmat ion that idtitieIs an account and/or related in trmation to the aco0unt is in fonnat iono cit her read by a realder of the transaction terminal or cntcred by the operator oft he transation terminal and the process of' determining whether the transaction is eligi tle for d \'narmi c currency cOFn\vc'Sion includes determining whether the card is issued by a domesti c issuer and determining the transaction as not eligible if the card is issued by a domestic issuCI.
In one embodiment, the method further colmprises rccuiring the cardholder to specify the nominated currency.
In one embodiment the process of determining whether the transaction is eligible for dynamic currency conversion includes determining whether i) the nominated currency is the same as a billing currency of the card, and ii) the billing currency of the card is supported.
wherein the transaction is determined to be not eligible i feither i) or ii) is not satislied.
According to a second aspect of the present invention, there is prl-jO'dCd ilpparaus for performing a dynamic currency conversion transaction, the apparatus comprising a transaction teminal mel Lid ng a user intera c, means to reccive an id(uti'i er relalted to an account of' a cardholder, and a comnicationI interface f6r commulnicaItin~g With a network, wherein the transaction terminal receives anl ilentiier liom the means to receive an account ideni ficr and then: at) either: i) using the coI-mnicatio n interface transmits particulars of a transaction and receives a communication reporti ng \vhether the transaction is eligible for dynamic currency conversion, and/or ii) compares the account ideni ticr with a listing of account identitiers maintained in memory and determines from the listing wlhethecr the transact ion is eligible 005237669v4.doc 6 0 0 C1 for dynamic currency conversion; b) if the transaction is eligible for dynamic currency conversion and an input to the user interface indicates that dynamic currency conversion is required, initiates processing of the transaction in a nominated currency, wherein the nominated currency has been received as an input to the user interface of the terminal.
c) if the transaction is not eligible for dynamic currency conversion or if an input to the user interface indicates that dynamic currency conversion is not required, Sinitiates processing of the transaction in a default currency.
0 In one embodiment, processes b) and c) require receipt of an input from the user CI 10 interface indicating whether dynamic currency conversion is required before processing the transaction.
In one embodiment, the transaction terminal compares the account identifier with a listing of account identifiers maintained in memory and determines from the listing whether the transaction is eligible for dynamic currency conversion and wherein the step of determining comprises comparing the account identifier with a list of domestic issuers stored in the memory and if there is a match with any entry in the list. determining that the transaction is not eligible for dynamic currency conversion.
In one embodiment, the transaction terminal compares the account identifier with a listing of account identiiers maintained in memory and determines from the listing whether the transaction is eligible for dynamic currency conversion, wherein the transaction terminal stores in memory information identifying international issuers tor which the billing currency of the issuer is a supported dynamic currency conversion currency, and wherein step of determining comprises determining whether the account identifier is associated with a said international issuer and if so determining that the transaction is eligible for dynamic currency conversion. In this embodiment if the account identifier is not associated with a said international issuer, the transaction terminal may require additional user input at the user interface. Also, the additional user inpl t may be the identification of another nominated currency.
According to a third aspect of the present invention, there is provided apparatus for performing a dynamic currency con version transaction, the apparatus comprising a computer in communication with a network, the comlputer operable to receive particulars 005237669v4 doc 7 of a transaction from a transaction tenrminal via said network, determine whethcr the transaction is eligible for dynamic currency convcrsion, and it so transmit onto the network data addressed to the transaction terminal a communicatioln reporting whether the transaction is eligible for dynamic currency, the communication not nl luding inftormation identifying any particular country or currency.
In one embodiment, the computer determines whether the transaction is cligible for dynamic currency conversion by comparing an identifier of an account involv\ed in the transaction with entries stored in computer memory. In this embodiment the entries stored in computer memory may list identifiers ol accounts that are eligible for dynamic currency conversion due to the local currency of the account holder matching a billing currency of the account holder for the transaction. Also, the transaction particulars may include inormation identitying a nominated country or currency and the computer may determine whether the transaction is eligible for dynamic currency conversion by comparing the nominated country or currency with the local currency associ ated witth the Is account holder.
A\ccording to a 1fourth aspect of the present in\vention, there is provided a method of operating a transaction terminal to fIcilitate dvnamic currency con vclrsion ol a transaction, the method comprising: receiving at the transaction terminal data identifyinI currencies acccpted for dynamic cLicurrency conversion; at a transaction terminal. receiving particulars of a requested transaction, includi ng an amounl of a transaction in a tirst currency and identiication oI' another currency for the transaction, wherein the identification of the other currency is received via an operator interlace of the transaction terminal; in the transaction tenmninal determining whether the transaction is eligible lor dynamic currency conversion, including comparing the other currency with the accepted currencies and if the transaction is eligible converting the amount ot a transaction in the first curreLIncy into a transaction amount in the other currency. and transmitting data for completing the req uested transaction onto a network, the transmitted data i ncludiing the transaction amount in the other currency.
005237669v4.doc According to a fifth aspect of' the present invention, there is provided a method of pert OrnnM a funds transaction that includes providing thc option to prformi thc transaction using dynamic currency conversion, the method includ(ing prformngi n the lo6llowing processes within a transaction tcrminal: rcCCivlng account intformation idcnt vii n all ccOLInt and,Or Ilated iifol-mat ioln to aln acoint: sing the account in formation, leterm ining whether the in forniat ion dent i ies a lomcstic acco Lint and if' the account in fbrarit ion identites a domestic c i (It perlforming the transaction in a default cn'ency, I if the account in fornationl identiies an internationail aIount. detcrniiIMnL whether the transact ion is eligible tr dynamic currency conversion: if' the transaction is eligible for dynamic currency colnversion, caIsing the display in a displla o the transaction terminal a dynamic curecy l\ con \'eSio n offerI and monitoring an operator interace of* the transaction terminal fo6r an indication ofI whether Is the offer is accepted and if' so facilitating completion 0O' the transact ion Using Idynamic currency conversion; It he nominated currency is not supported or it, the dynamic rncy convrsio n offecr is not accepted, pertorming the transaction in a (lfault currency.
According to a sixth aspect of' the present invention, there is provided appalrtIus for performing a dynamic currency con\version transaction, the apparat us com1prising a transaction terminal including a Liser interface, means to receive an identifier related to an account of' a cardholder, and a comn ilIcation interface t'or co1muni cating \wit1h a network, wlhrein the transaction terminal receives an identifier fr-om the means to receive an accoun1t identifier and then: a) compares the identifier with a listing of donestic accOuLiis and pertiirs the transactioii in a default currency if' the identitier is dleteriniied to he associated with a domestic account; b) if' process a) indicates that the identifier is not associated with a dlomestic accouiit then either: i) LISing the comniun i cation interfacc tralnsm its particulars of' a transaction aiid receives a cOMMillnicati toi reporting \vlether tle transaction is eligible for 005237669v4 doc dvynaiimic currency conversion, and/or ii) compares the account identlelr With 1 1-litn oifI accowunt identiliflers maintained in memory and determines from the listing \vhether the transactioln is cligible for dynamic currency conversion; and if the transaction is eligible for dynamic currency conversion and an input to the user interface indicates that dynamic currency conversion is required, initiates processing of the transaction using dynamic currency convelrsion: and if the transaction is not eligible for dynamic currenc convCIersion or if an input to the user interface indicates that dynamic currency c0nvcrsion is not requircd.
initiates processing of the transaction in the default currcncy.
According to a seventh aspect of the present invention, there is provided a method of performing a transaction that includes providing the option to perform the transaction using dynamic currency conversion, the method comprising the steps of: at a transaction terminal, receiving information that identilies an account and/or related in formation to an account; and conducting the transaction in a nominated currency cnterced b' an operator of the transaction terminal using an input device oft the ransaction terminal.
According to an eighth aspect of the present invention, there is providelcd apparatus for performing a dynamic currency conversion transaction, the apparatus comprising a transaction terminal including a user interlface, means to receive an ildenti fier related to an account of a cardholder, and a communication interface for commIunicating with a nct\vwork, wherein the transaction terminal receives an identiller From the means to receive an account identifier and then initiates processing of the transaction in a nominated currency, wherein the nominated currency has been received as an inpLIut to the LIuser interface of the terminal.
Further aspects of the present invention \vill become apparent from the following description. given by way of example only and with refCrcncc to tihe accompanying drawings.
005237669v4 doc Brief description of the drawings Figure I: shows a block diagram representation of the entities involved in a known transaction network; Figures 2a 2c: each show a flow chart of a transaction method according to an embodiment of the present invention; and Figure 3: shows a block diagram of a POS terminal and a representation of information that may be stored in the memory of the POS terminal.
Detailed description The present invention may be implemented in a transaction network of the type described herein in relation to Figure I and the following description assumes that the invention has been implemented in such a transaction network and that the transaction system is a card payment system. lowever, the present invention may have application to other transaction networks and other payment systems.
For example, the present invention may also have application to c-commerce over a wide area network such as the internet, in which case the transaction terminal would be a personal computational device such as a personal computer. pcrsonal digital assistant, mobile phone, or other device. The invention may also be applied to automated teller machines (ATMs), in which case the transaction terminal is the ATM that the cardholder is using. The invention may also have application to transaction networks that are not card based, lor example transaction networks that include the textraction of biomelric or other information to identitv some particulars of a transaction.
The examples provided below assume a context of a transaction at a merchant, where the primary operator of the transaction terminal is an employee or wncr of the merchant. -lowever, the person making the transaction (ic. cardholder 1) could be the primary or sole operator of' the transaction terminal and this would be the most likely situation in many of the alternative applications of the present invention described above.
Example 1 Figure 2a shows a flow diagram of steps performed according to an exemplary method of' the present invention. Those skilled in the relevant arts will appreciate that modifications to the method and the other example methods describcd herein may he 005237669v4 doc
II
made depending on how the transactions are managed, the entities involved in processing a transaction and the paiticular communication channel(s) used to c 1ommunicate transaction data.
In step 10 particulars of a transaction are received from thec POS terminal 7 of a merchant 2 by the systcm of an acquirer 3. As described iciherein ahovec, the transactiio n particulars may include inbformation iidentifving an account o1 a payor. for example a transaction account of the cardholder I, the transact ion anoLlnt and the identity o1I the merchant 2. In a card payment system, this in formation is usually acquired at a point o sale (POS) terminal by swiping a magnetic stripe card through a suitable reader. by inserting a smartcard into a smartcard reader or by passing an encoded card near a card proximity reader, and by entering or receiving the transaction valIue. At present. card payment systems represent the most widespread mode of conducting multi-currency transact ions.
At the acquirer 3, in addition to the usual authori sat ion process, a check is made as to whether the transaction is eligible for dynamic currenc y conversion (DCC). An cligible transaction is one where the billing currency of the cardholder I is the same as their local currency and where the local currency is a currency accepted by the card schemenic administrator 5 for settlement of the transaction. If currency conversion were allowed if these requirements were not met, the cardholder \\Ould be subjected to a double foreign exchange conversion foe. This double foreign exchange transaction can re-sult in the cardholder I bcing charged anll increCased amount over \\what they cxpect ed from viewing the transaction amount at the POS terminal 7 at the mercihant 2.
It it is detennined that the transaction is not cligible for DCC, then the transaction is performed in the merchant's local currency and the transaction is completed in the usual manner at step 18, with a receipt showing details of the transaction provided to the cardholder I in step 19. Step 18 may require the cardholder I to accept a D)CC offer, which shows the original amount in the merchant's local currency, the converted transaction amount, optionally together with or includineg any additional fees charged for foreign exchange.
If the transaction is deemed eligible for DCC, the IPOS terminal 7 queLiries the operator whether DCC is required (step 14). This may be achieved by a simple message 005237669v4 doc displayed on a display of the POS tcrminal 7 that requests a yes (or no answer, or by prompting the operator to ask the cardholder to nominate a preferred currency. In a preferred embodiment as presently contemplated. the operator must proceed through steps 14 and 15 fobr every transaction that is eligible for DCC. To determine whether DCC( is reqCCuiredC. the operator. wIhich is usually aln employee of the merchant 2. of the )POS terminal 7 asks the cardholder I whether they would like their transaction to procced in thir local currency or rtefers to a sign that explains the options lr selecting other preferred currencies in which to perform the transaction. The sign may be provided in several different languages to help overcome any langIuage difficulties between the merchant 2 and cardholder 1.
If the operator indicates that DCC is required in step 15, the process proceeds to step 16. In step 16, the POS terminal queries the operator for an indication of the currency that is required. The operator asks the cardholder I what their local or preferred currency is and then enters the currency nominated by the cardholder 1. The operator or cardholder then may enter a currency code or other identifier into the terminal for that currency. The operator may be provided with a table listing the currencies eligible for DCC and their corresponding codes or identifiers.
The POS terminal 7 then looks up a table (or data nformatted in another format) of exchange rates, including any margin that may be applied for providing D)CC, and computes or looks up the value of the transaction in the entered currency. 'The table of exchange rates may be transmitted to the POS terminal 7. or stored on the systiem of tihe acquircr 3 or even the system ol'f the card scheme administrator 5. in which case the POS terminal 7 would request the table look up or computation. An advantage ot storing the table at the POS terminal 7 is that ftaster transaction processing may result dlue to reCducing communications over the transaction network 8. An advantage of storing the table at the system of the acquirer 3 is that updates to the table can be made centrally rather than having to be distributed to each POS terminal 7.
The currency of the transaction is set to the currency identi Iled (step 17) and the amount of the transaction in this currency is displayed on a display o' the POS terminal 7.
The transaction is then completed in step 18 using the currencv set in step 17 and a receipt is printed in step 19. Prteferably the receipt in(licates the value of the transaction 005237669v4 doc 13 both in the default currency (the local currency of the merchant 2) and the currency set in step 17 (the local currency of the cardholder I).
An advantage of the method described herein with reference to Figure 2a is that it requires the merchant 2 to specifically nominate on the POS terminal 7 the currency that the transaction is to be processed in, as opposed to: offering the billing currency of the transaction card 6 which has been identified using the BIN number; or a choice between the identified billing currency and the local currency of the merchant 2.
Alternative methods of performing DCC typically use variations of and (2) above, which suggest options to the cardholder rather than requiring an unbiased nomination. The method described ensures that the cardholder always makes an unbiased nomination without suggestion or influence. The method also minimises the possibility of the merchant 2 withholding the option of processing a DCC transaction (or conversely, processing in the local currency of the merchant 2 even though the cardholder indicated that he or she required DCC), rather than requiring the cardholder to nominate their preferred currency.
Another advantage is that method does not require a particularly sophisticated POS terminal 7. These and other advantages may also be achieved by using the methods and systems described in the following examples.
Example 2 Figure 2b shows a flow diagram of steps performed according to another exemplary method of the present invention.
In step 30 particulars of a transaction are received from the PO(S terminal 7 of a merchant 2 by the system of an acquirer 3 in the same manner as described in relation to step 10 of Figure 2a.
In step 3 1 the transaction particulars are checked within the POS terminal 7 to determine if an issuer 4 that is a domestic (DOM) issuer has issued the transaction card 6.
This may be perlormed by looking up a table that lists all of the BIN numbers of the DOM issuers. The table may be stored in the POS terminal 7. If a DOM issuer has issued the transaction card, then the transaction is not eligible for DCC and is processed in the 005237669v4.doc 14 local currency of the merchant 2 (steps 37 and 36). If not, then an issuer 4 that is an international (INTL) issuer has issued the transaction card 6. and the associated transaction is eligible for DCC. In this case, the POS terminal 7 prompts the operator (usually an employee of the merchant 2) to enquire of the cardholder I which currency they would like to process the transaction in. The operator may rccr to a sign that explains the options. The sign may be provided in several different languages to help overcome any language difficulties between the merchant 2 and cardholder 1. The sign may be a physical sign, for example a card handed to the operator or used as a reference by the operator, or may be electronic, for example displayed on a display of the POS terminal 7 (or other transaction terminal). The operator enters the chosen currency to the POS terminal 7 (step 32). When the sign is displayed on a display of the terminal, the operator of the terminal, whether it is the cardholder I or the merchant 2 at the time. may select one option from a list of currencies.
In step 33, the POS terminal 7 sends the transaction particulars to the acquircr 3 to determine if the card scheme administrator 5 accepts the culrrency or settlCemlent of the transaction. This may be determined by looking up a table containing a list of acceptcd currencies, or conversely a list of currencies that are not accepted. If the currency is accepted by the card scheme administrator 5, then in step 34 the transaction amount in lhe local currency of the merchant 2 is converted to the currency proposed by the cardholder 1, and the exchange rate and converted amount are returned t tohe POS eIrminal 7 for presentation to the cardholder 1 on the receipt printed by the POS terminal 7.
The exchange rate conversion is performed by using a table (or data formatted in another format) of exchange rates, including any margin that may be applied lor providing DCC, and computes or looks up the value of the transaction in the proposed currency. The table of exchange rates may be transmitted to the POS terminal 7, or stored on the system of the acquirer 3 or even the system of the card scheme administrator 5. An advantage of storing the table at the POS terminal 7 is that faster transaction processing may result due to reducing communications over the transaction network S. l.ike in the first example, an advantage of storing the table at the system of the acquirer 3 is that updates to the table can be made centrally.
005237669v4 doc If the outcome of step 33 is that the card scheme administrator 5 does not accept the currency for settlement of the transaction, then the process moves to step 37.
In step 35, the cardholder 1 decides whether or not to accept the IX.'C offer. II the cardholder I accepts, the transaction particulars arc sent in step 36 to the acquirer 3 in the currency proposed by the cardholder I in step 32. If the cardholder I declines the DCC ofter, the transaction particulars are set to rcllecl the local currency of the merchant 2 (step 37) and are sent to the acquirer 3 (step 36) in the usual manner. A receipt showing details of the transaction particulars is provided to the cardholder I in both cases.
Example 3 Referring again to Figure 2b. another exemplary method of the present invention has the same steps 30 to 37. but with a modilied method of performning step 33.
In this alternative method, step 33 involves the POS Iciminal 7 sending the transaction particulars to the acquirer 3 to determine if i) the transaction card 6 hilling currcncy is the same as the currency proposed by the cardholder I and i) the card scheme administrator 5 accepts the proposed currency tor settlement of the transaction. If yes, then in step 34 the transaction amount in the local currency of the merchant 2 is converted to the currency proposed by the cardholder 1. and the exchange rate and converted amount are returned to the POS terminal 7 for presentation to the cardholder I on the receipt printed by the POS terminal 7.
But if the outcome of step 33 is that the transaction card 6 hilling currency is not the same as the currency proposed by the cardholder I, or the card scheme administrator does not accept the currency for settlement of the transaction, then step 37 is performed.
An advantage with this alternative method is that the test for eligibility is extended beyond simply contirming whether or not the card scheme administrator accepts the proposed currency. It also includes confirming whether or not the billing currency of the transaction card 6 is the same as the currency proposed by the cardholder 1. This prevents double conversion from occurring, which would result in increased cost for the cardholder 1.
005237669v4doc 16 lixample 4 Figure 2c shows a flow diagram of a further alternative exemplary method of the present invention. Except for the differences described herein below, steps 70 to 77 are the same as steps 30 to 37 of figure 2b.
The difference illustrated in the method shown in Figure 2c over lExample 2 described herein is also with step 73. In this alternative method, step 73 involves the IOS terminal 7 sending the transaction particulars to the acquirer 3 to determine il i) the transaction card 6 billing currency is the same as the currency proposed by the cardholder I and ii) the card scheme administrator 5 accepts the proposed currency lor settlement of the transaction. If yes, then in step 74 the transaction amount in the local currency of the merchant 2 is converted to the currency proposed by the cardholder I, and the exchange rate and converted amount are returned to the POS terminal 7 for presentation to the cardholder I on the receipt printed by the POS terminal 7.
But if the outcome of step 73 is that the transaction card 6 billing currency is not the same as the currency proposed by the cardholder 1, or the card scheme administralor does not accept the currency for settlement of the transaction, then step 72 is perlormed again.
Optionally, a counter may limit the number of cycles of steps 72 and 73 and either revert to step 77 or proceed to step 74 with the latest choice of currency if a threshold value is reached. In an embodiment where the process proceeds to step 74, the threshold value for the counter may be one. so that the process conducts the transaction in the second selected currency even if it does not meet the eligibility criteria described herein that should be met to avoid a plurality of foreign exchanges. Also, or instead, each time a "NO" cycle out of step 73 occurs, the operator may be given the option to either conduct the transaction in the local currency or enter another currency choice. IfI the operator chooses the local currency, then the method proceeds to step 77 and if the operator chooses to enter another currency choice, then step 72 is repcalted An advantage with this alternative exemplary method is that if the test for eligibility is not passed, the cardholder I is provided with the opportunity to select another currency. This provides the cardholder I with at least one further opportunity to 005237669v4 doc 17 process the transaction in a proposed currency other than the local currency of the merchant 2 to perform a DCC transaction).
Further alternative embodiments In these embodiments, the operator of the POS Terminal 7 or transaction terminal may also be either be an operator of the merchant 2 or the cardholder I in a self-service environment.
In alternative embodiments, step 12 from the process described in Figure 2a step 33 from the processes described in relation to Figure 2b and step 73 from the process described in relation to Figure 2c may be omitted.
Tlherefore, in one such alternative embodiment, the process in Figure 2a would proceed directly from step 11 to step 14. In a further variation, the process in Figure 2a may proceed directly from step 11 to step 16, in which case all transactions require the operator of the transaction tenninal to select a currency. 'This variation may have particular application to a merchant 2 that has an international client base, tor example an online retail store with international sales coverage.
Similarly, the processes described in relation to Figure 2h would proceed from step 32 directly to step 34 and the process described in relation to Figure 2c would proceed from 72 directly to step 74.
In these embodiments, the transaction is performed in whatever currency is selected by the cardholder 1. Accordingly, in these embodiments and any other embodiment that allows a transaction to proceed in a currency other than the local currency of the merchant 2 or an eligible currency, the display of the POS terminal 7 or another sign at the terminal may explain that if a currency is selected that does not meet the eligibility criteria described previously herein, then a plurality of foreign exchange transactions may be required, which may lead to an increased total transaction cost w\hen the exchange fees are included.
In still further alternative embodiments, step 31 may he omitted from the processes described in relation to Figure 2b and step 71 may be omitted from the processes described in relation to Figure 2c. In this embodiment a currency must be selected by the operator of the POS terminal 7 for all transactions. These embnodiments mal also have particular application to a merchant 2 that has an international client base, for example an 005237669v4 doc 18 online retail store with international sales coverage. Accordinuly. in one embodiment both steps 3 I and 33 may be omitted li-om the processes described in relation to IFiure 2b and both steps 71 and 73 may be omitted from the processes described in relation to IigLIre 2c.
C onfigurable transaction terminal In one embodiment, software may be provided for a transaction terminal that is con igured to operate in two or more of the embodiments dcscribhcdl hercin in relation to F iuCres 2a 2c. The operator ol' the terminal or supplier of the so0iwaiCre may then choose \vhich method to implement, for example when setting up a POS terminall 7 or webh server for c-commerce transactions. Alternatively, the choice of w'hich method to implement may be made by a supplier when downloading the soliware to the terminal if' thliis option is provided.
The POS temiinal Figure 3 shows a block diagram of an cxemp)lary POS terminal 7. The POS termin al 7 includes a controller, which may1 for example be a 32 tit microprocessor, that controls operation of' the POS terminal 7. The controller recciv\es transaction particulIars from a small card re-cader. card reader and/or keypad. The P(S terminal includes a clisplay to present in form at ion to the operator of the terminal, a printer tiat nmay print receipts.
and an InpuI/Output port to allow wired or wireless communicatio n with othe r devices 2 located at the premises of the merchant 2. As discussed heirein. the POS terminial 7 transmits and recei ves in formation vi a a modem or other net vworking comm un i eat io ns system or device.
The POS terminal 7 includes a memory, which includes a RAM and ROMI componenlt the instructions that control operation of the controller of the POS terminal 7 stored in ROM. With particular retrence to Examples 3 and 4 where the POS terminal 7 is provided with all the required information to perform a transaction apart liom an authorisation code for a transaction., the RAM may store a list of current domestic (DOM) issuers of cards. As prev\iouLsly described, the DOM issuers can he identifled by the 131N number on the transaction card. The RAM may also store a list of' international (INTII issuers of' cards by their 131N number and a list of' the billing cuIIeIc Ior that INTL issuer. For the INTL issuer 132459, the issuer 4 may invoice the cardholder I in a 005237669v4 doc 19 currency that is not supported by the card scheme administrator 5 so that DCC may not be ofTerled to the cardholder I. Of course, the RAM may store no entry for the 13IN number 132459 with the same effect.
Those skilled in the relevant arts will appreciate that some inorimat ion shown in the table 9 may be stored outside ol'f the POS terminal 7. which may recive the in ormation as required to perform a transaction. For example. a list of DOM ISSIissuers may be stored at the P0S terminal 7, whereas the list ol INTL. issuers and the billing currcncy associated w\vith each INTL issuer may be stored remote fi-oin the POS terminal 7. for example in a database of the Acquirer 3. Also. further information may be included in the RAM of the POS terminal 7.
TIhe present invention may include all or part-1 of any o I the exemplalyy methods described herein. In addition, the present invention may extend to methods including options described herein for one method applied to another method w\Vhere that option is not inconsistent with the other method.
Where in the foregoing description reference has been made to specilic integers or components having known equivalents, then those equivalents are hereby incorporated herein and individually set forth.
Those skilled in the relevant art would apl)reciate that modiications and additions may be made to the present invention without departing from the scope of the1'11C invention.