Mastercard Files Patent for Refund Services for Cryptocurrency Users

Global credit card company Mastercard has filed a patent application with the US Patent and Trademark Office (USPTO) for the creation of refund services for digital currency users. In the patent titled “Information Transaction Infrastructure,” the company hinted its plan to explore possible means of creating refund services for cryptocurrencies.

Based on the application published by the USPTO on August 3, 2017, the sole inventor of the proposed tool was former Mastercard senior analyst Vladimir Goloschuk.

Based on the published document, the proposed service will establish an infrastructure that would allow users to verify their identities linked to digital currency addresses that they separately chosen to disclose. An example of how the system will work was also presented.

Part of the document reads:

“A typical transaction involving a payment from Alice to Bob operates in the following way. Bob creates a new address using the cryptocurrency client, and provides the address (a public key for a private key held by Bob) to Alice as a destination for the payment.

Alice makes the transaction using her cryptocurrency client by indicating a payment to the address indicated by Bob from one of her own addresses – this is done by signing a transaction request with her private key for the address, the public key being usable to establish that the transaction was sent by Alice to Bob’s address.”

The system being proposed by Mastercard aims to facilitate the refund process in payment transactions. Under the current system, a customer who wants to make a refund should send back the money to an address linked to the receiver’s account. The reason behind this is to enable the exchange holder to find out the source of the funds received and the reason.

Under the patent, Mastercard suggests a shared service that allows its customers or users to have two kinds of wallets. These wallets will facilitate the refunding of payments.