CARDLESS TRANSACTIONS

FIELD OF THE DISCLOSURE

The present disclosure relates to the field of internet commerce and, in particular relates to a system for performing financial transactions for making payments and withdrawal of cash.

DEFINITIONS OF TERMS USED IN THE SPECIFICATION

The expression 'user' used hereinafter in the specification refers to but is not limited to a customer, payer, merchant, and payee.

The expression 'customer interface device' and/or 'merchant interface device' used hereinafter in the specification refers to but is not limited to a mobile phones, a laptop, a tablet, a desktop, an iPad, a PDA, a notebook, a net book, and a tablet.

The expression 'merchant' used hereinafter in the specification refers to but is not limited to an e-commerce website, a merchant Point-of-Sale (POS), and an Automated-Teller-Machine (ATM) for withdrawing and/or depositing cash.

The expression 'financial institution' used hereinafter in the specification refers to but is not limited to a bank, a financial repository, a vault, a credit union, an investment firm, an account repository, and an online money transfer financial organization.

The expression 'financial account' used hereinafter in the specification refers to but is not limited to a bank account, a financial repository account, a vault account, a credit union account, an investment firm account, a repository account, a PayPal account, and a Authorize.net account.

The expression 'authorizing interface' used hereinafter in the specification refers to but is not limited to a payment network, a VisaNet, a bank, a network, and a third party interface.

The expression 'payment network's authentication application' used hereinafter in the specification refers to but is not limited to a Visa's 3D Secure. The expression 'vine/s' used hereinafter in the specification refers to but is not limited to a pathway or a way for conducting a transaction.

The expression 'device identification indicia' used hereinafter in the specification refers to but is not limited to an International Mobile Station Equipment Identity (IMEI), an International Mobile Subscriber Identity (IMSI), a digital certificate, a mobile number, an encryption key and a combination thereof.

The above definitions are in addition to those expressed in the art.

BACKGROUND

Using cash as a mode of transactions has been a popular method practiced worldwide, since centuries. Typically, exchanging cash in return for goods and commodities has been a popular way of procuring goods and commodities. However, one of the shortcomings of exchanging cash in return for goods and commodities is that the exchanged cash needs to be safeguarded against robbery attempts. Further, carrying and depositing a large amount of money has always been a cumbersome task.

A person typically performs numerous transactions to meet his/her daily requirements for example, selling/purchasing of goods/ commodities. One of the major shortcomings of preferring cash transactions is that it involves high level of risks as one need to safeguard the money for security reasons. Further, carrying cash in bulk also increases the possibilities of occurrences of undesirable incidents such as robbery attempts and attempts at theft.

Attempts have been made by the financial institutions to obviate the need of carrying large amount of cash. The financial institutions, therefore introduced cheques for making payments in bulk. Cheques are paper-based form of making payment(s). Cheques to a certain extent have reduced people's dependency on hard cash and have effectively acted as a secured mode of performing transactions. Typically, in cheque based transactions, a payer is required to present a cheque to the payee, who in turn submits the cheque to a financial institution with whom he/she is associated. Once the cheque is received by the financial institution, it usually takes at least three working days for a cheque to get clearance from the financial institution. Cheques are safer than cash and better alternative for making large amount payments. However, major shortcomings of cheques are that it takes a lot of time for clearance, or the cheque may get rejected, or the financial institution can refuse to accept a cheque with an error and the like.

Internet has made processing of monetary transactions exponentially faster than ever. With the increasing number of internet users, service providers are targeting to provide more and more services over the Internet. The major revolution in the field of cashless transactions is brought in by the introduction of Internet e-commerce. Internet e-commerce has introduced card based transactions such as debit card, credit card, which can be used to make electronic payments. If a person has run out of hard cash, he may still use his credit card or debit card to make transactions. Typically, these electronic cards are plastic cards, issued by financial institutions, enabling the user to carry out monetary transactions without carrying hard cash himself. Transactions facilitated by the aforementioned cards also provide remote access to the user's financial account(s) whenever or wherever required. The benefits of using cards for transactions are guaranteed payments, completing large transactions in negligible time, can be used for mail order or online purchases. E-transactions enable users to make payments sitting at home(s) or office(s). The drawbacks related to card transaction are that it takes more than three days for the money to be received by the payee; a fee must be paid to the financial institution if a credit card is used and in some cases a fee to be paid to the payee if a debit card is used. Credit cards involve high interest rates so it becomes a very expensive way of borrowing money from the financial institution, if debts are not cleared on time. One of the major drawbacks conferred by the e-transaction cards is that the users still need to carry their e-transaction cards. If an undesirable incident, such as loss of the card occurs, the user may be left with zero balance in his financial account before a complaint can be lodged in the associated financial account.

A user may wish to pay money to another user for varied reasons. With the growth and emergence of new technologies internet e-commerce took one more leap and introduced the concept of direct online payment such as net banking, PayPal, Authorize.net and the like. Further to the aforementioned direct online payment procedures, the user is able to make online payments through handheld devices and can also store their account details on their handheld device(s) by a password protected methodology. In recent times a growing number of thefts and fraud activities are being noticed that have involved misuse of both plastic money as well as online financial account information. A majority of these incidents have involved hacking of user online accounts or electronic devices used by the user for carrying out online transactions, and then misusing the hacked information specific to the user for carrying out a forging activity(s).

E-commerce merchants, traditional retails and other businesses struggles to protect the customer financial details such bank accounts, card details and the like entrusted with them. In many times, the challenge is made more difficult by the fact that the data is duplicated across multiple systems, applications and databases where customer's financial details are stored unprotected.

The total cost of fraudulent transactions understates the true cost of fraud because it does not take into account significant hidden costs such as stakeholders' investments in fraud- detection technology, services and expertise which qualify as "profit leaks". It's also observed that the increase of customer distrust has resulted in slow growth of online transactions, which reduces merchant's online revenues and cuts into the various transaction based fees collected by the stakeholders in the value chain.

FIGURE 1(a) and (b) discloses prior art for performing a cashless transaction by a cashless transaction system on a merchant side, wherein the merchant includes an e-commerce website such as Amazon.com and the like. A customer goes to the merchant and enters card details or financial account ID such as payment gateway, Paypal and the like and password. This step involves high level of risks as customer's financial account details are transferred to merchant and stored in the merchant database. The merchant forwards the transaction to an authorizing interface such as a payment network or to an intermediary financial account/ network and the like which in turn transmits the transaction finally to the authorizing interface. The authorizing interface validates the customer card details, merchant financial details and re-transmits the transaction to the merchant in the first case or to the financial account such as payment gateway(s) such as PayPal and the like in the second case, which in turn transmits a confirmation of the transaction. The aforementioned procedure involves high level risks in the form of fraudulent transaction, hacking of customer's account and the like as the customer financial data is stored at the merchant database. In addition, it is also to be noted that the transaction is recorded at multiple sites which ordinarily protected by low security measures susceptible to fraud. Therefore there is a long felt need to prevent the aforementioned malicious activities and develop a system that enables the users to carry out cardless as well as cashless transactions securely. There is also felt a need for a system that enables users to carry out their financial transactions securely without disclosing their identity.

OBJECTS

Some of the objects of the system of the present disclosure, which at least one embodiment herein satisfies, are as follows:

An object of the present disclosure is to provide a system for cashless and cardless transactions.

An object of the present disclosure to provide a secure system where a user's identification is not revealed.

Another object of the present disclosure is to provide a system to withdraw cash from ATM machine without using a financial card.

Another object of the present disclosure is to provide a system which enables a user to deposit cash into an ATM machine.

Still another object of the present disclosure is to provide a system that does not require user signatures for performing monetary transactions.

Another object of the present disclosure is to provide a system implemented with biometric features for performing high value transactions.

Another object of the present disclosure is to provide a system that is reliable.

Further, an object of the present disclosure is to provide a system that is cost effective.

Another object of the present disclosure is to provide a system to prevent the occurrence of fraud transactions in real-time. Still further, an object of the present disclosure is to provide a system that is user friendly.

Other objects and advantages of the system of the present disclosure will be more apparent from the following description when read in conjunction with the accompanying figures, which are not intended to limit the scope of the present disclosure.

SUMMARY

In accordance with one aspect of the present disclosure there is provided a computer implemented system for cardless and cashless transactions, the system comprising: i) a customer interface device comprising: a) a logging module configured to receive a customer ID; b) a first transmitting module configured to transmit a merchant ID and a transaction amount to a transaction server to initiate a transaction; c) a first receiving module configured to receive a time bound OTP from the OTP generating means; ii) the transaction server comprising: a) a second receiving module configured to receive the customer ID, merchant ID and the transaction amount from the customer interface device; b) an information retrieval module adapted to communicate with a repository of a registered users of a database vault, the information retrieval module configured to retrieve information corresponding to the customer ID and the merchant ID; c) a second transmitting module configured to transmit a request to a One-Time-Password (OTP) generating means subsequent to the information retrieved at the information retrieval module; d) a third receiving module configured to receive the OTP from a authorizing interface; e) a decrypting module configured to decrypt the OTP received from the authorizing interface; f) a validating module configured to validate a decrypted information on decrypting the OTP received from the authorizing interface by communicating with the repository of registered users of the database vault; g) a third transmitting module configured to transmit the decrypted information to the authorizing interface, subsequent to validation of the decrypted information; iii) the OTP generating means comprising: a) a fourth receiving module configured to receive a request from the transaction server; b) a generating module configured to generate the time bound OTP; c) a fourth transmitting module configured to transmit the OTP to the customer interface device, wherein the customer interface device is identified with a corresponding device identification indicia; d) a merchant interface device adapted to receive the time bound OTP and further adapted to communicate with the authorizing interface to process the transaction; iv) the database vault comprising: a) the repository of registered user details; b) a first cooperating module configured to provide information as required by the transaction server; and c) a second cooperating module configured to provide information as required by the transaction server for validating the decrypted information at the transaction server.

The system of the present disclosure further comprising a first vine adapted to generate the OTP by cooperating with the customer interface device, transaction server and OTP generating means for initiating the transaction, and a second vine adapted to complete the transaction by cooperating with the merchant interface device, the authorizing interface and the transaction server and the database vault.

Typically, the first vine is further adapted for generating the OTP at the customer interface device, wherein the OTP generating means configured within the customer interface device.

Typically, the customer ID is received by the customer on subsequent registration of the customer with the database vault, wherein the database vault stores customer registration information into the repository of registered users.

Typically, the merchant ID is received by the merchant on subsequent registration of the merchant with the database vault, wherein the database vault stores merchant registration information into the repository of registered users.

Typically, the first transmitting module transmits the customer ID and the device identification indicia of the customer interface device along with merchant ID and the transaction amount to the transaction server.

Typically, at the transaction server the request transmitted to the OTP generating means, wherein the request comprises the customer ID, device identification indicia of the customer interface device, the merchant ID, and the transaction amount.

Typically, wherein the validating module adapted to validate a customer financial account associated with the customer ID, further the first validating module is adapted to validate the merchant ID.

Typically, wherein the decrypting module configured to implement decryption technique on the time bound OTP received from authorizing interface and extract decrypted information which includes the customer ID, device identification indicia of the customer interface device, the merchant ID and the transaction amount. Typically, wherein the validating module adapted to validate the. transaction by validating a prescribed time limit associated with the time bound OTP received.

Typically, wherein the second validating module adapted to validate and map the customer ID with the customer financial account, device identification indicia of the customer interface device and the merchant ID with a merchant details stored in the repository of registered users, by cooperating with the database vault.

Typically, wherein the merchant ID is selected from the group consisting of alphanumeric combination, barcode, and Quick Response (QR) code.

Typically, wherein the OTP is selected from the group consisting of alphanumeric combination, barcode, and QR code.

Typically, wherein the authorizing interface is selected from the group consisting of payment network, bank, and third party EFT switch.

The system of the present disclosure further can be integrated with Visa's 3D Secure.

The system of the present disclosure further can be integrated with a biometric feature for a high valued transaction and/or if a higher level of security is enabled.

Typically, wherein the merchant is selected from the group consisting of e-commerce website, merchant point-of-sale, and Automated-Teller-Machine (ATM).

Typically, wherein the transaction server validates the transaction and transmits a confirmation signal to the authorizing interface.

In accordance with another aspect of the present disclosure there is provided a computer implemented method for facilitating cardless and cashless transactions, the method comprising the following steps: a) logging into a customer interface device by providing a customer ID, wherein a customer is registered with the system; b) initiating a transaction at the customer interface device, by transmitting the customer ID, device identification indicia of the customer interface device, a merchant ID and a transaction amount to a transaction server; c) receiving at the transaction server, the customer ID, the merchant ID and the transaction amount from the customer interface device; d) cooperating at the transaction server with a repository of registered users of a database vault for retrieving customer and merchant information corresponding to the customer ID and the merchant ID received from the customer interface device; e) transmitting from the transaction server a request to a One- Time-Password (OTP) generating means for generating an OTP; f) receiving at the OTP generating means the request from the transaction server for generating the OTP; g) generating at the OTP generating means, a time bound OTP based on the request received from the transaction server; h) transmitting from the OTP generating means, the time bound OTP to the customer interface device identified by the device identification indicia; i) receiving at a merchant interface device, the time bound OTP from the customer; j) transmitting from the merchant interface device, the time bound OTP to a authorizing interface, the authorizing interface further transmits the time bound OTP to the transaction server; k) receiving at the transaction server, the time bound OTP from the authorizing interface; 1) validating at the transaction server, the time limit of the time bound OTP; m) implementing decryption technique at the transaction server, on the time bound OTP received from the authorizing interface to retrieve decrypted information; n) validating and cooperating at the transaction server with the database vault to validate the decrypted information by comparing with the information stored corresponding to the customer ID and merchant ID in the repository of registered users of the database vault; and o) transmitting from the transaction server to the authorizing interface, the customer ID, the customer financial account, transaction amount and the merchant ID, wherein the transaction server validates the transaction and transmits confirmation message of the transaction to the customer interface device and the merchant interface device.

Typically, wherein the step of transmitting the request from the transaction server to the OTP generating means, wherein the request includes at least customer ID, device identification indicia of the customer interface device, merchant ID and the transaction amount.

Typically, wherein the step of validating at the transaction server cooperating with the database vault, includes validations of the device identification indicia of customer interface device, a customer financial account corresponding to the customer ID, further the step of validating at the transaction server cooperating with the database vault includes step of validating merchant ID and mapping the merchant ID with a merchant financial account. BRIEF DESCRIPTION OF THE ACCOMPANYING DRAWINGS

The computer implemented system and method for cardless and cashless transaction of the present disclosure will now be explained in relation to the non-limiting accompanying drawings, in which:

FIGURE 1 illustrates a conventional cashless transaction system.

FIGURE 2 illustrates a flowchart for registration of the user with the system for performing cardless and cashless transactions, in accordance with the present disclosure.

FIGURE 3 illustrates a schematic of a first vine of the system for performing cardless and cashless transactions, in accordance with one embodiment of the present disclosure.

FIGURE 4 illustrates a schematic of a second vine of the system for performing cardless and cashless transactions, in accordance with another embodiment of the present disclosure.

FIGURE 5(a) and 5(b) illustrate a flowchart for a method of facilitating cardless and cashless transactions in accordance with another embodiment of the present disclosure.

FIGURE 6(a) and 6(b) illustrates a flowchart of an exemplary representation of the cashless and cardless system in accordance with the present disclosure.

DETAILED DESCRIPTION OF THE ACCOMPANYING DRAWINGS

The computer implemented system and method for cardless and cashless transactions of the present disclosure will now be described with reference to the accompanying drawings which do not limit the scope and ambit of the disclosure. The description provided is purely by way of example and illustration.

The embodiments herein and the various features and advantageous details thereof are explained with reference to the non-limiting embodiments in the following description. Descriptions of well-known components and processing techniques are omitted so as to not unnecessarily obscure the embodiments herein. The examples used herein are intended merely to facilitate an understanding of ways in which the embodiments herein may be practiced and to further enable those of skill in the art to practice the embodiments herein. Accordingly, the examples should not be construed as limiting the scope of the embodiments herein.

The description hereinafter, of the specific embodiments will so fully reveal the general nature of the embodiments herein that others can, by applying current knowledge, readily modify and/or adapt for various applications such specific embodiments without departing from the generic concept, and, therefore, such adaptations and modifications should and are intended to be comprehended within the meaning and range of equivalents of the disclosed embodiments. It is to be understood that the phraseology or terminology employed herein is for the purpose of description and not of limitation. Therefore, while the embodiments herein have been described in terms of preferred embodiments, those skilled in the art will recognize that the embodiments herein can be practiced with modification within the spirit and scope of the embodiments as described herein.

FIGURE 1(a) and 1(b) of the accompanying drawing illustrates a conventional transaction system 100 for performing a transaction. In FIGURE 1(a), the conventional transaction system 100 includes a merchant 110 such as e-commerce website and the like, and an authorizing interface 130 such as payment network and the like. The merchant 110 transmits a request for initiating the transaction to the authorizing interface 130 by a first cooperating means provided to cooperate between the merchant 110 and the authorizing interface 130. The request send by the merchant 110 includes a merchant ID (if any), a merchant financial account details, a customer financial account details, a transaction amount and the like. A validating means at the authorizing interface 130 validates the transaction by validating the merchant ID, the merchant financial account and the customer financial account. The authorizing interface 130 credits the merchant's financial account by debiting a transaction amount from the customer's financial account. The authorizing interface 130 confirms the completion of the transaction by transmitting a confirmation message to the merchant 110 by a second cooperating means provided to cooperate between the merchant 110 and the authorizing interface 130. In the aforementioned system 100 the customer financial account details are stored or submitted by the customer into a merchant database (not shown in the diagram). In FIGURE 1(b), the conventional transaction system 100 includes a merchant 110, a financial account 120 such as PayPal and the like, and an authorizing interface 130 for performing a transaction. The system 100 provides a two way communication between each of the merchant 110, the financial account 120 and the authorizing interface 130. The merchant 110 transmits a request for initiating the transaction to the financial account 120. The financial account 120 receives the request from the merchant 110 and transmits the request further to the authorizing interface such as payment network and the like for validation and performing the transaction. The authorizing interface 130 receives the request which includes the merchant ID (if any), a customer financial account details, a merchant financial account details, a transaction amount and the like. The authorizing interface 130 validates the transaction by validating the merchant ID, the customer financial account details, and the merchant financial account details. The authorizing interface 130 transmits a confirmation of the validation to the financial account 120 which is authorized to credit the merchant financial account with the transaction amount by debiting the transaction amount from the customer financial account. Subsequent to completion of the transcation, the financial account 120 transmits a confirmation for successful completion of the transaction to merchant 110.

The present disclosure envisages a system and a method for cardless and cashless transactions. Referring to the accompanying drawings, FIGURE 2 illustrates a flowchart for user registration. In accordance with the system of the present disclosure comprises a user interface that enables the user(s) to register with a database vault, who likely to utilize the system of the present disclosure to carry out his/her transactions securely. In an embodiment of the system of the present disclosure, the aforementioned user interface is a web browser based application. The system prompts the user to enter his/her login details displayed on a user interface device such as a computer, a laptop, an iPad, a tablet and the like. The system includes an acquiring module configured to elicit login credentials from users. The acquiring module, after acquiring the user's login credentials, verifies the login details with those stored in a backend repository. Once the user's login credentials are verified by the back end repository, the system prompts the user with a downloadable link. The user can be registered with system of the present disclosure as a customer or a merchant. The user's credentials as well as other related information such user's financial account details and the like stored in the database vault of the system. I

In accordance with present disclosure, in an event if the user registering as a customer with the system, he/she has to provide the device identification indicia of his/her user interface device along with the credentials. Typically, the aforementioned step is to register a customer interface device which will be used by the customer to carry out his/her transactions. The customer interface device is an Internet enabled device.

Typically, subsequent to successful registrations of the user receives identification (ID) such as a customer ID in an event if the registered user is the customer and a merchant ID in an event if the registered user is the merchant as an email or a message or an sms and the like. Typically, the customer ID serves as a password to enter into the customer interface mobile application. The customer ID and/or merchant ID used hereinafter in the specification refers to but is not limited to a alphanumeric combination, a barcode, and a Quick Response (QR) code. In accordance with the present disclosure, the merchant registered with the system, enabled to prominently display the merchant ID visible to the customers, wherein the merchant is at least selected from a group consisting of an e-commerce website(s), a merchant POS, and an ATM of a financial institution. The merchant ID ensures the occurrence of valid transaction(s) at the merchant(s) interface, authorized by the system of the present disclosure.

In accordance with the system of the present disclosure, the database vault as disclosed, a highly secure database, which stores the registered user credentials and communicates with a financial institution or a authorizing interface or a financial account such as a payment network or a third party EFT switch and the like for validating the transactions. The data or information stored in the database vault is secure and is not shared with any of the merchant(s) whether registered/ un-registered with the system of the present disclosure.

In accordance with the present disclosure, an OTP generating means generates the OTP and transmits the OTP to the corresponding customer on his/her customer interface device.

In accordance with the system of the present disclosure, the customer interface device application enables the user/s who are registered with the system as customer to downloads the handheld device executable application on his/her handheld device registered with the system from the web based frontend. The aforementioned handheld device application is protected by a password. A first vine and a second vine of the system of the present disclosure for carrying out a cardless and a cashless transaction will be described herein below with reference to FIGURES 3 to 4.

Referring to the accompanying drawings, FIGURE 3 illustrates a schematic of the first vine of the computer implemented system 300 for performing cardless and cashless transactions. The system 300 includes a customer interface device 310,, a transaction server 320, a database vault 330, and a One-Time-Password (OTP) generating means 340. The customer visits a merchant and proceeds for a payment by initiating the first vine of a transaction from his/her customer interface device 310 by using the customer interface device application (not shown in the diagram). The customer first provides his/her customer ID at a logging module 312. Once the customer ID is successfully received and provided access to the system of the present disclosure, the customer utilizing a first transmitting module 314 to transmit the merchant ID which is promptly displayed at the merchant side visible to the customer along with a transaction amount to the transaction server 320.

In accordance with the system 300 of the present disclosure, a second receiving module 322 at the transaction server 320 receives the customer's message which entails the customer ID, the merchant ID and the transaction amount. At the transaction server 320 the second receiving module 322 transmits the customer ID, the merchant ID and the transaction amount to an information retrieval module 324 which communicates with a first cooperating module 334 to access a repository of registered users 332 of the database vault 330. The transaction server 320 of the system of the present disclosure extracts information corresponding to the customer ID and merchant ID from the repository of the registered users 332 such as a customer financial account, a merchant financial account, customer contact details, merchant contact details, device identification indicia of the customer interface device 310 and the like.

In accordance with the system 300 of the present disclosure, the transaction server 320 after the completion of the information retrieval process from the database vault 330, transaction server 320 transmits a request that entails the customer ID, the merchant ID, the transaction amount, the customer financial account, the merchant financial account and the like to the OTP generating means 340 for generating an OTP as requested by the customer. A fourth receiving module 342 at the OTP generating means 340 receives the request sent by the transaction server 320 and feed into a generating module 344. The generating module 344 generates a time bound OTP. The OTP generating means 340 determine the customer interface device 310 associated with the device identification indicia and the contact details received from the transaction server 320 and transits the time bound OTP utilizing a fourth transmitting module 346 to the customer interface device 310. A first receiving module 316 at the customer interface device 310 receives the time bound OTP transmitted by the OTP generating means 340.

Referring to the accompanying drawings, FIGURE 4 illustrates a schematic of the second vine of the computer implemented system 400 for performing cardless and cashless transactions. The system 400 includes a merchant interface device 410, an authorizing interface 420, a transaction server 430 and a database vault 440. The customer communicates the time bound, OTP received in the first vine to the merchant, wherein the first vine is in accordance with the description as described in FIGURE 3. The merchant utilizing the merchant interface device 410 transmits the time bound OTP received from the customer to the authorizing interface 420. The authorizing interface 420 further transmits the time bound to the transaction server 430 for validating the transaction initiated in the first vine.

In accordance with the system 400 of the present disclosure, at the transaction server 430 a third receiving module 432 receives the time bound OTP transmitted from the authorizing interface 420 and further provides the time bound OTP an input to a decrypting module 434 which is enabled to decrypt the information contained within the time bound OTP. The decrypting module 434 implements decryption techniques on the time bound OTP and extract the decrypted information which includes but is not limited to the customer ID, the device identification indicia of the customer interface device 310, the merchant ID and the transaction amount for necessary for completing the transaction.

In accordance with the system 400 of the present disclosure, at the transaction server 430, after the extraction of the decrypted information from the time bound OTP, the decrypted information is provided to a validating module 436. The validating module 436 first validates the time bound OTP by checking whether the time bound OTP received and transmitted at the merchant interface device 410 by the merchant for initiating the second vine of the transaction is within a prescribed time limit associated with the time bound OTP. Else, the time bound OTP will be dropped by the transaction server 430 and will inform the merchant and customer regarding the failure of the transaction.

In accordance with the system 400 of the present disclosure, at the transaction server 430, on subsequent to successful validation of the tine bound OTP is confirmed the validity module 436 validates the decrypted information by cooperating with a repository of registered users 442 of the database vault 440. At the database vault 446 a second cooperating module 446 cooperates with the validity module 436 of the transaction server 430 and interacts with the repository of registered users 442 to provide the information as requested by the transaction server 430 for the purpose of validation. The validating module 436 at the transaction server 430 validates at least one of the customer ID, the device identification indicia of the customer interface device, and the merchant ID received from the decrypting module 434 by comparing the customer ID, the device identification indicia of the customer interface device, and the merchant ID stored in the repository of registered users 442 by cooperating with the second cooperating means 446 of the database vault 440.

In accordance with the system 400 of the present disclosure, at the transaction server 430, on successful validation of the customer ID, the device identification indicia of the customer interface device, and the merchant ID, the validating module 436 cooperating with a first cooperating module 444 of the database vault 440 to retrieve information corresponding to the customer ID and merchant ID from the repository of registered users 442 which includes customer financial account details, merchant financial account details and the like. The validating module 436 validates the customer financial account details and the merchant financial account details.

In accordance with the system 400 of the present disclosure, subsequent to the completion of validation process at the transaction server 430 a third transmitting module 438 transmits the customer financial account, merchant financial account, customer ID, merchant ID, transaction amount to the authorizing interface 420 which is enabled debits the transaction amount from the customer financial account and credits the transaction amount in the merchant financial account and confirms the merchant.

In accordance with the present disclosure, subsequent to successful completion of the transaction through the first vine and the second vine, the system sends a message to the customer interface device and to the merchant interface device for the successful completion of the transaction.

In accordance with the present disclosure, all the transaction steps are controlled by customer for making payments. For example, if there is loss of handheld device which may entail information related to the customer's financial account(s). However, monetary transactions cannot be performed using the lost handheld device of the customer by any third person, as the system is provided with a mechanism (not shown is figure) for receiving and authenticating user ID proof or photograph in electronic format to perform transaction.

In accordance with the present disclosure, the time bound OTP generated by the server and transmitted to the user, it can be used for a single instance only, if used for two or more instances, the system will generate error message and inform the customer and/or merchant that the time bound OTP is already used. After the expiry of the prescribed time limit of the time bound OTP, the OTP cannot be used for completing the transaction.

Referring to FIGURE 5(a) and 5(b), a computer implemented method for facilitating cardless and cashless transactions is illustrated through a flow diagram. The method facilitating cardless and cashless transactions as envisaged by the present disclosure includes the following steps:

• logging into a customer interface device by providing a customer ID wherein a customer is registered with the system 505;

• initiating a transaction at the customer interface device, by transmitting the customer ID, device identification indicia, of the customer interface device, a merchant ID and a transaction amount to a transaction server 510;

• receiving at the transcation server, the customer ID, the merchant ID, and the transaction amount from the customer interface device 515;

• cooperating at the transaction server with a repository of registered users of a database vault for retrieving customer and merchant related information corresponding to the customer ID and the merchant ID received from the customer interface device 520;

• transmitting from the transaction server a request to a One-Time-Password (OTP) generating means for generating an OTP 525; • receiving at the OTP generating means the request from the transaction server for generating the OTP 530;

• generating at the OTP generating means, a time bound OTP based on the request received from the transaction server 535;

• transmitting from the OTP generating means, the time bound OTP to the customer interface device identified by the device identification indicia 540;

• receiving the merchant interface device, at the time bound OTP from the customer 545;

• transmitting from the merchant interface device, the time bound OTP to a authorizing interface, the authorizing interface further transmits the time bound OTP to the transaction server 550;

• receiving at the transaction server, the time bound OTP from the authorizing interface 555;

• validating at the transaction server, the time limit of the time bound OTP 560;

• implementing decryption technique at the transaction server, on the time bound OTP received from the authorizing interface to retrieve decrypted information 565;

• validating and cooperating at the transaction server with the database vault to validate the decrypted information by comparing with the information stored corresponding to the customer ID and merchant ID in the repository of registered users of the database vault 570; and

® transmitting from the transaction server to the authorizing interface, the customer ID, the customer financial account, transaction amount and the merchant ID, wherein the transaction server validates the transaction and transmits confirmation message of the transaction the customer interface device and the merchant interface device 575.

In accordance with the present disclosure, the method for performing the cashless and cardless transaction/s includes the step of transmitting the request from the transaction server to the OTP generating means, wherein the request includes at least the customer ID, the device identification indicia of the customer interface device, the merchant ID and the transaction amount. In accordance with the present disclosure, the method further includes the step of validating at the transaction server by cooperating with the database vault, includes validating of the device identification indicia of the customer interface device, the customer financial account corresponding to the customer ID. In addition, the step of validating the transaction server cooperating with the database vault includes the step of validating merchant ID and mapping merchant ID with the merchant financial account such as a Visa card or a Master card or a Maestro card or a Internet banking account or a financial scheme and the like as provided by the respective financial institutions.

In accordance with the present disclosure, typically the system determines the available balance in customer's financial account in the event user selects to withdraw cash from the ATM or purchase product/s from an e-commerce website or purchase product/s from a merchant Point-of-Sale (POS). If the required transaction amount is not present for the completing the transaction initiated by the user in the user's financial account, the server sends an error signal to the user's handheld device in the form of a message or an e-mail and the like.

In accordance with the present disclosure is to provide a secure system incorporated with a biometric feature (not shown in figures). For performing high value transactions the system will ask the user to provide a biometric parameter such as a thumb impression, a voice recognition pattern, a face recognition pattern, a palm recognition pattern and the like before debiting money from the user's financial account(s). The aforementioned feature eliminates occurrence of any an unauthorized transaction(s).

In accordance with the present disclosure, the system can be integrated with payment network's authentication application for customer enhancing securing measures. In accordance with the present disclosure, once the OTP is received and submitted by the merchant into his/her device for accepting or declining the transaction, another layer of authentication protected by a password can be incorporated to perform high valued transactions from being intercepted.

Referring to the accompanying drawings, FIGURE 6(a) and 6(b) illustrates a schematic flow diagram of an exemplary representation of the computer implemented system 600 to elicit the process of the transaction that is carried out in the first vine and the second vine in accordance with the present disclosure. The first vine of the transaction includes a mobile application 610 and an OTP generating means 620 cooperating with a transaction server (not shown in the diagram), wherein the mobile application 610 is accessible by the customer in his/her interface device/s. The first vine provides a two way communication between each of the mobile application 610 and the OTP generating means 620. The mobile application 610 accessible to the customer acquires the merchant ID and a transaction amount as an input from the customer and receives an OTP from the OTP generating means 620. The second vine of the transaction includes a merchant application 630, an authorizing interface 640 and a transaction server 650 cooperating with a database vault (not shown in the diagram), wherein the merchant application 630 is accessible to the merchant in his/her interface device . The second vine enables a two way communication between each of the merchant application 630, the authorizing interface 640 and the transaction server 650. The merchant receives the OTP generated in the first vine from the customer as an input to the merchant application 630. The merchant application 630 transmits the OTP to the authorizing interface 640 which in turns transmits the OTP to the transaction server 650 for validating the transaction. The transaction server 650 cooperating with the database vault validates the time limit of the OTP and financial account details corresponding to the customer ID and the merchant ID. Subsequent, to the validation of the OTP and the financial account details, the transaction server 650 transmits a confirmation to the authorizing interface 640 which is enabled to credit the merchant's financial account with the transaction amount by debiting the transaction amount from the customer financial account. On subsequent to the completion of the aforementioned procedure the transaction server send a message of confirmation to the merchant as well as to the customer.

TECHNICAL ADVANCEMENTS AND ECONOMIC SIGNIFICANCE

The system for cardless and cashless transaction, in accordance with the present disclosure described herein above has several technical advantages including but not limited to the realization of:

• a system for cardless transactions and cashless transactions;

• a secure system where user identification is not revealed while carrying out the transactions;

• a system that does not require information such as a card details, or a bank account details, or a net banking account details, or a ΡΓΝ, or a password and the like for transaction validation at vulnerable points; a system that does not require user signatures for performing the transactions; a system to withdraw cash from an ATM without using a financial card;

a system that enables users to deposit cash into an ATM;

a system that is reliable;

a system that is cost effective;

a system that validates a transaction through separate validation routes;

a system that is highly secure;

a system that is user friendly; and

a system implemented with biometric feature for performing high value transactions.

Throughout this specification the word "comprise", or variations such as "comprises" or "comprising", will be understood to imply the inclusion of a stated element, integer or step, or group of elements, integers or steps, but not the exclusion of any other element, integer or step, or group of elements, integers or steps.

The use of the expression "at least" or "at least one" suggests the use of one or more elements or ingredients or quantities, as the use may be in the embodiment of the disclosure to achieve one or more of the desired objects or results. The numerical values mentioned for the various physical parameters, dimensions or quantities are only approximations and it is envisaged that the values higher/lower than the numerical values assigned to the parameters, dimensions or quantities fall within the scope of the disclosure, unless there is a statement in the specification specific to the contrary.