# US 12,118,537 B2 · Method and system for merchant acceptance of cryptocurrency via payment rails

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- Number: US 12,118,537 B2
- Document ID: US12118537B2
- Status: Granted
- Kind: B2
- Application number: 18/102,140
- Filed: 2023-01-27
- Published: 2023-06-08
- Granted: 2024-10-15
- Earliest claimed: 2020-06-24
- Assignees: Mastercard Asia/Pacific Pte. Ltd.
- Applicants: Mastercard Asia/Pacific Pte. Ltd.
- Inventors: Srinath Ravinathan; Donghao Huang
- Web page: https://patentgrep.com/patent/US12118537B2

## CPC

- G06Q 20/3674: {involving authentication}
- G06Q 40/04: Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
- G06Q 20/02: involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
- G06Q 20/065: {using e-cash}
- G06Q 20/0655: {e-cash managed centrally}
- G06Q 20/0855: {involving a third party}
- G06Q 20/202: {Interconnection or interaction of plural electronic cash registers [ECR] or to host computer, e.g. network details, transfer of information from host to ECR or from ECR to ECR}
- G06Q 20/204: {comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit}
- G06Q 20/3678: {e-cash details, e.g. blinded, divisible or detecting double spending}
- G06Q 20/381: {Currency conversion}
- G06Q 20/38215: {Use of certificates or encrypted proofs of transaction rights}
- G06Q 20/3825: {Use of electronic signatures}
- G06Q 20/3829: {involving key management}
- G06Q 20/4014: {Identity check for transactions}
- G06Q 20/405: {Establishing or using transaction specific rules}
- H04L 9/3239: {involving non-keyed hash functions, e.g. modification detection codes [MDCs], MD5, SHA or RIPEMD}
- H04L 9/3247: {involving digital signatures}
- G06Q 20/34: using cards, e.g. integrated circuit [IC] cards or magnetic cards
- G06Q 2220/00: Business processing using cryptography
- H04L 9/50: {using hash chains, e.g. blockchains or hash trees}
- H04L 2209/56: Financial cryptography, e.g. electronic payment or e-cash
- G06Q: INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
- H04L: TRANSMISSION OF DIGITAL INFORMATION, e.g. TELEGRAPHIC COMMUNICATION (arrangements common to telegraphic and telephonic communication H04M)

## Abstract

A method for acceptance of blockchain payment at a traditional point of sale device direct to a merchant includes: receiving an authorization request for a fiat payment transaction including a transaction account number, transaction amount, and merchant identifier; identifying blockchain payment acceptance for a transaction account associated with the transaction account number; transmitting an address request to an exchange server including the merchant identifier; receiving a destination address associated with the merchant identifier for a blockchain network from the exchange server; transmitting a new blockchain transaction to a blockchain node in the blockchain network including the destination address and a cryptocurrency amount based on the transaction amount; and transmitting an authorization response for the fiat payment transaction to a payment network for routing to a point of sale device, the authorization response including an indication that clearance and settlement of the fiat payment transaction is not required.

## Claims

### Claim 1

A method using a processing server comprising an account database, a receiver and a transmitter for acceptance of blockchain payment at a traditional point of sale device of a merchant, comprising:
receiving, by the processing server via the receiver, an authorization request for a fiat payment transaction from a point of sale device of the merchant via a payment network, wherein the fiat payment transaction is initiated by a user, wherein the authorization request includes at least a transaction account number of the user, a transaction amount in a fiat currency, and a merchant identifier of the merchant;
identifying, by the processing server, blockchain payment acceptance for a transaction account of the user associated with the transaction account number included in the authorization request;
in response to identifying the blockchain payment acceptance for the transaction account, transmitting, by the processing server via the transmitter, an address request to an exchange server, the address request including the merchant identifier;
based on the received merchant identifier included in the address request, generating, by the exchange server, a recipient blockchain address using a merchant public key associated with a merchant blockchain wallet;
sending, by the exchange server to the processing server, a response, wherein the response comprises a destination blockchain address and a network identifier of the blockchain network, wherein the destination blockchain address is the recipient blockchain address associated with the merchant blockchain wallet;
receiving, by the processing server via the receiver, the response from the exchange server;
based on the received response, transmitting, by the processing server via the transmitter, a new blockchain transaction to a blockchain node in the blockchain network, the new blockchain transaction including at least the recipient blockchain address, a cryptocurrency amount based on the transaction amount and an exchange rate provided by the exchange server, a digital signature, and one or more of the unspent transaction outputs, wherein the blockchain node processes the new blockchain transaction by including it in a new block that is confirmed by other nodes in the blockchain network; and
transmitting, by the processing server via the transmitter, an authorization response for the fiat payment transaction to the payment network for routing to the point of sale device, wherein the authorization response includes a response code indicating that clearance and settlement of the fiat payment transaction is not required.

### Claim 2 (depends on 1)

The method of claim 1, further comprising:
identifying, by the processor of the processing server, a private key of the cryptographic key pair; and
generating, by the processor of the processing server, the digital signature using the private key.

### Claim 3 (depends on 1)

The method of claim 1, wherein the authorization response is formatted pursuant to a standard governing the exchange of financial transaction messages.

### Claim 4 (depends on 3)

The method of claim 3, wherein the standard is ISO 8583.

### Claim 5 (depends on 1)

The method of claim 1, wherein the response code is one of 01 and 85.

### Claim 6 (depends on 1)

The method of claim 1, further comprising:
transmitting, by the exchange server, a notification message to the point of sale device indicating successful processing of the new blockchain transaction.

### Claim 7 (depends on 1)

The method of claim 1, further comprising:
receiving, by the processing server via the receiver, a transaction identifier associated with the new blockchain transaction from the blockchain node; and
transmitting, by the processing server via the transmitter, the transaction identifier associated with the new blockchain transaction to the exchange server.

### Claim 8 (depends on 1)

The method of claim 1, wherein the exchange rate is included with the recipient blockchain address.

### Claim 9

A system for acceptance of blockchain payment at a traditional point of sale device of a merchant, comprising:
a payment network;
a blockchain network comprised of a plurality of blockchain nodes;
a point of sale device;
an exchange server; and
a processing server comprising a processor, a receiver, and a transmitter, wherein the processing server is configured to:
receive, via the receiver, an authorization request for a fiat payment transaction from a point of sale device of the merchant via the payment network, wherein the authorization request includes at least a transaction account number of the user, a transaction amount in a fiat currency, and a merchant identifier of the merchant;
identify, via the processor, blockchain payment acceptance for a transaction account of the user that is associated with the transaction number included in the authorization request;
transmit, via the transmitter, in response to the processor identifying the blockchain payment acceptance for the transaction, an address request to the exchange server, the address request including the merchant identifier, wherein the exchange server is in bi-directional communication with the processing server, a plurality of blockchain networks, and the point of sale device, and wherein said exchange server generates a recipient blockchain address for an electronic wallet associated with the merchant using a public key of a cryptographic key pair of the merchant,
wherein the processing server is further configured to:
receive, via the receiver, (i) the recipient blockchain address, generated by the exchange server, and (ii) a network identifier for a blockchain network used by the merchant, and
transmit, via the transmitter, a new blockchain transaction to a blockchain node in the blockchain network, the new blockchain transaction including at least the recipient blockchain address, a cryptocurrency amount a cryptocurrency amount based on the transaction amount in the fiat currency and an exchange rate provided by the exchange server, a digital signature, and one or more unspent transaction outputs, wherein the blockchain node processes the new blockchain transaction by including it in a new block that is confirmed by other nodes in the blockchain network, and
transmit, via the transmitter, an authorization response for the fiat payment transaction to the payment network for routing to the point of sale device, wherein the authorization response includes a response code indicating that clearance and settlement of the fiat payment transaction is not required.

### Claim 10 (depends on 9)

The system of claim 9, wherein the processing server, via the processor, is further configured to:
identify the private key of the cryptographic key pair, and
generate the digital signature using the private key.

### Claim 11 (depends on 9)

The system of claim 9, wherein the authorization response is formatted pursuant to a standard governing the exchange of financial transaction messages.

### Claim 12 (depends on 11)

The system of claim 11, wherein the standard is ISO 8583.

### Claim 13 (depends on 9)

The system of claim 9, wherein the response code is one of 01 and 85.

### Claim 14 (depends on 9)

The system of claim 9, wherein the exchange server transmits a notification message to the point of sale device indicating successful processing of the new blockchain transaction.

### Claim 15 (depends on 9)

The system of claim 9, wherein the processing server is further configured to:
receive, via the receiver, a transaction identifier associated from the blockchain node, and
transmit, via the transmitter, the transaction identifier to the exchange server.

### Claim 16 (depends on 9)

The system of claim 9, wherein the exchange rate is included with the recipient blockchain address.