TECHNICAL FIELD

This disclosure relates to cardless payment transactions.

BACKGROUND

In a conventional point-of-sale electronic credit card transaction, the transaction is authorized and captured. In the authorization stage, a physical credit card with a magnetic stripe is swiped through a merchant's magnetic card reader or a physical credit card with a chip is inserted into a merchant's reader, for example, as part of a point-of-sale device. A payment request is sent electronically from the magnetic card reader to a credit card processor. The credit card processor routes the payment request to a card network, e.g., VISA® or MASTERCARD®, which in turn routes the payment request to the card issuer, e.g., a bank. Assuming the card issuer approves the transaction, the approval is then routed back to the merchant. In the capture stage, the approved transaction is again routed from the merchant to the credit card processor, card network and card issuer, and the payment request can include the cardholder's signature (if appropriate). The capture state can trigger the financial transaction between the card issuer and the merchant, and optionally creates a receipt. There can also be other entities, e.g., the card acquirer, in the route of the transaction. Debit card transactions have a different routing, but also require swiping of the card.

SUMMARY

In one aspect, a method for processing a cardless payment includes receiving, by a first mobile device, a signal from a second mobile device using a short-range wireless transmission protocol. A received signal strength indication of the signal is determined and used to determine whether the first mobile device and the second mobile device are in proximity. Upon receiving the determination of proximity, either consent for a cardless payment transaction is automatically established, or a user is provided the opportunity to express consent for the cardless payment transaction.

In some embodiments, the short-range wireless transmission protocol is Bluetooth or Bluetooth low energy (BLE).

In another aspect, a method for verifying a cardless payment transaction between a merchant and a payer includes receiving an indication of consent by the payer to enter into a cardless payment transaction with the merchant. A token is generated at the payer mobile device, the token including a signature based on a merchant identifier, a payer identifier, a timestamp, or any combination thereof. The token is provided to the merchant mobile device using a short-range wireless data transmission for verification of a transaction between the payer and the merchant.

In some embodiments, the token is provided using Bluetooth low energy, near field communication, or optical codes.

In another aspect, a system includes one or more computers operable to perform the following operations: determining that a payer mobile device and a merchant mobile device are in proximity; receiving an indication of consent by a payer to enter into a cardless payment transaction with a merchant; generating a token including a signature based on a merchant identifier, a payer identifier, a timestamp, or any combination thereof; generating, using the token, a message requesting authentication of the cardless payment transaction between the payer and the merchant; and verifying the authenticity of the transaction by verifying the signature of the token.

