Methods and systems for processing an electronic payment

A system for processing an electronic payment comprising:

• a server configured to be in communication with a cardholder's device, a merchant terminal and a merchant acquiring bank,
• said server having a computer processor and a data storage device, the data storage device storing non-transitory instructions operative by the processor to cause the processor to perform the operations of:
• (a) receiving a first electronic request for a first token from a cardholder's device, the server being in communication with a database storing payment credentials for one or more payment cards associated with the cardholder;
• (b) generating the first token using an identity of the cardholder's device and transmitting the first token to the cardholder's device;
• (c) receiving a second electronic request for processing the transaction from a merchant terminal, said second request comprising the first token and a merchant terminal identifier;
• (d) generating a second token using the first token and the merchant terminal identifier and transmitting the second token to the merchant terminal;
• (e) receiving a third token and a transaction authorization request from a merchant acquiring bank;
• (f) validating the third token using the and the second token;
• and
• (g) upon the validation operation (f) being successful, submitting the transaction authorization request to a card issuing bank.

A method for processing an electronic transaction between a cardholder and a merchant carried out over a payment network, comprising the operations of:

• (a) receiving, by a merchant terminal, a first token from a cardholder's device, said first token being associated with an identity of the cardholder's device,
• (b) the merchant terminal transmitting an electronic request for processing the payment to a server;
• said electronic request comprising the first token and a merchant terminal identifier;
• (c) the merchant terminal receiving, via the server, a second token;
• said second token being generated using the first token and the merchant terminal identifier;
• (d) the merchant terminal transmitting the second token to a merchant acquiring bank, thereby causing the merchant acquiring bank to communicate with a card issuing bank to effect the transaction.

A merchant terminal for processing an electronic transaction comprising:

• a computer processor and a data storage device, the data storage device storing non-transitory instructions operative by the processor to cause the processor to perform the operations of:
• (a) receive a first token from a cardholder's device, said first token being associated with an identity of the cardholder's device,
• (b) transmit an electronic request for processing the payment to a server;
• said electronic request comprising the first token and a merchant terminal identifier;
• (c) receive a second token;
• said second token being generated using the first token and the merchant terminal identifier;
• and
• (d) transmit the second token to a merchant acquiring bank thereby causing the merchant acquiring bank to communicate with a card issuing bank to effect the transaction.

A method for processing an electronic transaction between a cardholder and a merchant carried out over a payment network, a cardholder's device being associated with a first token generated using an identity of the cardholder's device;

• a merchant terminal being associated with a second token generated using the first token and a merchant terminal identifier, the first and second token being generated by a server, the method comprising:
• receiving, by a merchant acquiring bank, a third token;
• and
• the merchant acquiring bank transmitting the third token to the server thereby causing the server to communicate with a card issuing bank to effect the transaction upon the third token being validated by the server using the second token.