First draft of a payment flow using tokenization for "Additional Examples of Payment Phases"

Dear Web Payments IG:

Here is a tokenization example for Payment Phases. I'm keeping this flow close to existing practice - not mentioning web browsers, but (to me obviously) a "Merchant Application" could/should be able to be a web page.

<snip/>

The following scenario outlines payment using a mobile device and tokenization.  The merchant has provided a mobile application that customers can download in the example below.  This example may apply to various tokenization payment systems now in use, such as ApplePay, CyberSource, Venmo, etc.

Negotiation of Purchase Terms
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Discovery of Offer: Tom uses the Terrific-Tools Application to select a new ax to purchase, and finds a hickory handled model like the one his father had.

Agreement on Terms: Tom selects the ax.

Application of Marketing Elements: Not applicable to this particular use case.

Negotiation of Payment Instruments
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Discovery of Accepted Schemes: The mobile device uses tokenized payment instruments, and the Terrific-Tools Application displays the options available.

Selection of Payment Instruments: Tom chooses to pay with MasterCard.

Authentication to Access Instruments: Tom uses the fingerprint recognition feature of his device to select the payment instrument and authenticate his use of the instrument (MasterCard).

Payment Processing
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Initiation of Processing: The Terrific-Tools Application communicates with the Terrific-Tools Server and creates a unique transaction ID.

Verification of Available Funds: Not applicable to this particular use case.

Authorization of Transfer:
1. The Terrific-Tools Application presents the transaction payload along to an internal SDK and gets back an encrypted transaction payload: tokenized card data, cryptogram, transaction details.
2. The Terrific-Tools Application sends the encrypted transaction payload to the Acquirer [not the same as the Terrific-Tools Server].
3. The Acquirer decrypts the information and processes the transaction.
4. The Acquirer responds back to the Terrific-Tools Application with an approval.
Completion of Transfer: The acquirer sends a transaction receipt to the Terrific-Tools Server.

Delivery of Product/Receipt
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Delivery of Receipt: The Terrific-Tools Server sends a transaction receipt to the Terrific-Tools  Application on the mobile device.
Delivery of Product: Terrific-Tools, Inc. ships the ax to Tom.


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Received on Monday, 30 March 2015 15:33:12 UTC