Method and system to control payment transactions in a payment card using companion payment application

A payment card of a user comprising:

• a communication interface configured to establish a communication with a payment application installed on a user device of the user;
• a memory comprising executable instructions;
• and
• a processor communicably coupled to the communication interface, the processor configured to execute the instructions to cause the payment card to at least:
• receive a command signal from the user device of the user via the payment application, the command signal comprising a user identifier in an encrypted form and a code generated by the payment application to set a value of a counter stored in the payment card,
• decrypt, by the processor, the user identifier in the encrypted form using a security key stored in a security domain of the payment card for obtaining a decrypted user identifier,
• match, by the processor, the decrypted user identifier and a unique identifier, wherein the unique identifier is stored in the payment card during personalization of the payment card,
• upon successful match, execute, by the processor, the code to set the value of the counter, and
• for each payment transaction at a point of sale (POS) terminal of a merchant:
• read, by the processor and without any input from an issuer of the payment card, the value of the counter,
• when the value of the counter is not equal to a threshold value, exchange, by the processor and without any input from the issuer of the payment card, data with the POS terminal of the merchant that is required by the POS terminal to conduct a payment transaction,
• update, by the processor and without any input from the issuer of the payment card, a current value of the counter by a pre-defined value each time the payment card is successfully used to make a payment transaction at the POS terminal of the merchant for obtaining an updated value of the counter, and
• when the updated value of the counter is equal to the threshold value, preclude, by the processor and without any input from the issuer of the payment card, the payment card to be used for payment transactions.

A non-transitory computer readable storage media of a payment card having instructions stored thereon that when executed by a processing system of the payment card, direct the processing system to at least:

• receive, by the processing system of the payment card of the user, a command signal from a user device of a user, the command signal comprising a user identifier in an encrypted form and a code generated by the payment application to set a value of a counter stored in the payment card;
• decrypt, by the processing system of the payment card of the user, the user identifier in the encrypted form using a security key stored in a security domain of the payment card for obtaining a decrypted user identifier;
• match, by the processing system of the payment card of the user, the decrypted user identifier and a unique identifier, wherein the unique identifier is stored in the payment card during personalization of the payment card;
• upon successful match, execute, by the processing system of the payment card of the user, the code to set the value of the counter;
• and
• for each payment transaction at a point of sale (POS) terminal of a merchant:
• read, by the processing system of the payment card of the user and without any input from an issuer of the payment card, the value of the counter;
• when the value of the counter is not equal to a threshold value, exchange, by the processing system of the payment card of the user and without any input from the issuer of the payment card, data with the POS terminal of the merchant that is required by the POS terminal to conduct a payment transaction;
• update, by the processing system of the payment card of the user and without any input from the issuer of the payment card, a current value of the counter by a pre-defined value each time the payment card is successfully used to make a payment transaction at the POS terminal of the merchant for obtaining an updated value of the counter, and
• when the updated value of the counter is equal to the threshold value, preclude, by the processor and without any input from the issuer of the payment card, the payment card to be used for payment transactions.