System and method for managing merchant-consumer interactions

A method for completing a payment transaction between a consumer and a merchant, the method comprising:

• receiving at a remote server a check-in message from a consumer when the consumer enters a merchant's location, the check-in message sent from a mobile phone associated with the consumer;
• verifying an identity of the consumer by the remote server using the mobile phone;
• receiving a virtual payment account number from an account issuer, the virtual payment account number formed by merging a checkout code with a merchant code, wherein the checkout code is selected from a range of available numbers determined by the merchant code assigned to the merchant location, and wherein the checkout code sent to the consumer changes with each visit to the merchant and is specific to the payment transaction;
• the virtual payment account number including a check value to verify that the virtual payment account number is a valid account number;
• funding the virtual payment account number with an amount equal to an expected spend by the consumer;
• sending the checkout code to the consumer, wherein the checkout code is merged with the merchant code to form the virtual payment account number, the merchant code provided to the merchant prior to the payment transaction;
• initiating the payment transaction at the request of the consumer;
• processing the payment transaction using the virtual payment account number as a mechanism for payment using the merchant's existing payment processing system;
• receiving an authorization from the account issuer after the consumer has completed the payment transaction using the virtual payment account number;
• and
• sending the consumer a receipt for the payment transaction.

A method for completing a payment transaction between a consumer and a merchant, the method comprising:

• registering the consumer by storing identifying information from the consumer and authenticating a consumer payment mechanism;
• receiving at a remote server a check-in message from a consumer when the consumer enters a merchant's location, the check-in message sent from a mobile phone associated with the consumer;
• verifying an identity of the consumer by the remote server using the mobile phone;
• forming a virtual payment account number at the remote server, the virtual payment account number formed by merging a checkout code with a merchant code, wherein the checkout code is selected from a range of available numbers determined by the merchant code assigned to the merchant location, and wherein the checkout code sent to the consumer changes with each visit to the merchant and is specific to the payment transaction, the virtual payment account number including a check value to verify that the virtual payment account number is a valid account number;
• placing a hold on the consumer payment mechanism for an expected spend by the consumer at the merchant;
• funding the virtual payment account number with an amount equal to the expected spend by the consumer;
• sending a checkout code to the consumer using the mobile phone, wherein the checkout code is merged with a merchant code to form the virtual payment account number, the merchant code provided to the merchant prior to the payment transaction;
• initiating the payment transaction at the request of the consumer;
• processing the payment transaction using the virtual payment account number as a mechanism for payment using the merchant's existing payment processing system;
• charging the consumer payment mechanism for a final amount of the payment transaction;
• and
• sending the consumer a receipt for the payment transaction.