Abstract

The present disclosure provides a method and a system for managing Invoice-on-Behalf (IoB) within open-loop transaction networks. The method comprises identifying a portable financial device enabled for IoB at a merchant system and generating an authorization request for an IoB transaction. The authorization request is then approved at an issuer system, followed by transmitting an authorization response back to the merchant system. At a Point-Of-Sale (POS) system associated with the merchant system, issuance of a VAT invoice is suppressed. Line-item data and tax data related to the transaction are transmitted, and the issuer system generates IoB documents at predetermined intervals of time, in accordance with the IoB Agreement and regulatory requirements applicable in the country of the merchant.

Creative Commons License

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 License.

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