System, method, and computer program for dynamically identifying a merchant associated with an authorization request for a payment card

• US 10,026,089 B2
• Filed: 08/17/2017
• Issued: 07/17/2018
• Est. Priority Date: 08/19/2013
• Status: Active Grant

• Current Assignee: Marqeta, Inc.
• Original Assignee: Marqeta, Inc.
• Inventors: Ford, Anthony, Gardner, Jason M., Lopez, Mark, Matter, David, Salla, Jatin P.
• Primary Examiner(s): Niquette, Robert R
• Assistant Examiner(s): KING JR., JOSEPH W
• Application Number:
  US15/680,013
• Publication Number:
  US 20170345008A1
• Time in Patent Office: 334 Days
• Field of Search: None
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/202 Interconnection or interaction of plural electronic cash registers [ECR] or to host computer, e.g. network details, transfer of information from host to ECR or from ECR to ECR
• CPC Class Codes: G06Q 20/3825 Use of electronic signatures
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 20/4014 Identity check for transactions
• CPC Class Codes: G06Q 20/4097 using mutual authentication between devices and transaction partners

Abstract

The disclosure is directed to a system, method, and computer program for dynamically identify a merchant associated with an authorization request for a payment card, wherein a merchant identifier in the authorization request is unrecognized. A plurality of unique signatures is created for each of a plurality of registered merchants, wherein the signatures for each registered merchant are based on values of merchant attributes associated with the registered merchant. In response to the system receiving an authorization request for a payment card that includes an unrecognized merchant identifier used to process authorization requests, a plurality of unique signatures is generated for the unrecognized merchant based on a combination of merchant attributes in the authorization request. A payment processing system then determines if the signatures match one of the signatures previously created for the registered merchants. If so, the authorization request is identified as originating from the matching registered merchant.

Claims

1. A method, performed by a payment card system that processes payment card transactions, for creating signatures for registered merchants and processing an authorization request that includes an unrecognized merchant identifier, the method comprising:

receiving a purchase authorization request for a payment card;

determining whether a merchant identifier used to process the purchase authorization request is recognized;

in response to determining that the merchant identifier used to process the purchase authorization request is recognized, performing the following;

processing the purchase authorization request using the recognized merchant identifier,

retrieving first values for a plurality of merchant attributes in the purchase authorization request having the recognized merchant identifier and creating a plurality of combinations of the first values,

for each combination of first values from the purchase authorization request having the recognized merchant identifier, creating a unique signature corresponding only to the combination of first values, and

determining whether each created unique signature associated with the purchase authorization request having the recognized merchant identifier has been previously stored in association with the recognized merchant identifier and, if not, storing the created unique signature in association with the recognized merchant identifier; and

in response to determining that the merchant identifier used to process the purchase authorization request is not recognized, performing the following;

retrieving second values for a plurality of merchant attributes in the purchase authorization request having the unrecognized merchant identifier and creating a plurality of combinations of the second values,

for each combination of second values from the purchase authorization request having the unrecognized merchant identifier, creating a unique signature corresponding only to the combination of second values, wherein one or more of the unique signatures created for the purchase authorization request having the unrecognized merchant identifier is based on a same combination of merchant attributes as the unique signatures created for the purchase authorization requests having recognized merchant identifiers,

determining whether any of the unique signatures created for the purchase authorization request having the unrecognized merchant identifier match any of the unique signatures associated with recognized merchant identifiers,

in response to determining that at least one unique signature created for the purchase authorization request having the unrecognized merchant identifier matches at least one unique signature associated with recognized merchant identifiers, retrieving the applicable recognized merchant identifier and processing the purchase authorization request using the applicable recognized merchant identifier, and

in response to determining that none of the unique signatures created for the purchase authorization request having the unrecognized merchant identifier matches any of the unique signatures associated with recognized merchant identifiers, applying rules for processing a purchase authorization request with an unrecognized merchant identifier.

2. The method of claim 1, wherein, in response to determining that at least one unique signature created for the purchase authorization request having the unrecognized merchant identifier matches at least one unique signature associated with recognized merchant identifiers, applying at least one rule and, if the rule is not satisfied, the purchase authorization request is rejected.

3. The method of claim 2, wherein the rule is that the at least one unique signature must have been previously confirmed a threshold number of times for a registered merchant associated with the recognized merchant identifier.

4. The method of claim 2, wherein the rule is that a minimum number of unique signatures created for the purchase authorization request having the unrecognized merchant identifier must match one or more of the unique signatures associated with recognized merchant identifiers.

5. The method of claim 2, wherein the rule is that an account holder associated with the payment card must satisfy a threshold spending amount.

6. The method of claim 1, wherein the payment card is for an account with one or more merchant purses, wherein processing the purchase authorization request comprises:

determining that an account holder associated with the purchase authorization request has sufficient funds for the purchase in a merchant purse associated with the recognized merchant identifier; and

approving the purchase authorization request in response to the account holder having sufficient funds in the merchant purse.

7. The method of claim 1, wherein the merchant identifier is a MID.

8. The method of claim 1, wherein the merchant attributes used in the plurality of combinations of first values or second values include two or more of the following:

merchant name, merchant location, merchant TID, merchant category code, and swipe and/or online flag.

9. The method of claim 1, wherein applying rules for processing a purchase authorization request with an unrecognized merchant identifier comprises:

determining that a value for a merchant name attribute in the purchase authorization request having the unrecognized merchant identifier matches a name associated with a registered merchant; and

in response to the value of the merchant name attribute in the purchase authorization request having the unrecognized merchant identifier matching a name associated with a registered merchant and in response to a purchase amount in the purchase authorization request being below a threshold value, approving the purchase authorization request.

10. A payment card system for creating signatures for registered merchants and processing an authorization request that includes an unrecognized merchant identifier, the payment card system comprising:

one or more processors;

one or more memory units coupled to the one or more processors, wherein the one or more memory units store instructions that, when executed by the one or more processors, cause the payment card system to perform the operations of;

receiving a purchase authorization request for a payment card;

determining whether a merchant identifier used to process the purchase authorization request is recognized;

in response to determining that the merchant identifier used to process the purchase authorization request is recognized, performing the following;

processing the purchase authorization request using the recognized merchant identifier,

retrieving first values for a plurality of merchant attributes in the purchase authorization request having the recognized merchant identifier and creating a plurality of combinations of the first values,

for each combination of first values from the purchase authorization request having the recognized merchant identifier, creating a unique signature corresponding only to the combination of first values, and

determining whether each created unique signature associated with the purchase authorization request having the recognized merchant identifier has been previously stored in association with the recognized merchant identifier and, if not storing the created unique signature in association with the recognized merchant identifier; and

in response to determining that the merchant identifier used to process the purchase authorization request is not recognized, performing the following;

retrieving second values for a plurality of merchant attributes in the purchase authorization request having the unrecognized merchant identifier and creating a plurality of combinations of the second values,

for each combination of second values from the purchase authorization request having the unrecognized merchant identifier, creating a unique signature corresponding only to the combination of second values, wherein one or more of the unique signatures created for the purchase authorization request having the unrecognized merchant identifier is based on a same combination of merchant attributes as the unique signatures created for the purchase authorization requests having recognized merchant identifiers,

determining whether any of the unique signatures created for the purchase authorization request having the unrecognized merchant identifier match any of the unique signatures associated with recognized merchant identifiers,

in response to determining that at least one of the unique signatures created for the purchase authorization request having the unrecognized merchant identifier matches at least one of the unique signatures associated with recognized merchant identifiers, retrieving the applicable recognized merchant identifier and processing the purchase authorization request using the applicable recognized merchant identifier, and

in response to determining that none of the unique signatures created for the purchase authorization request having the unrecognized merchant identifier matches any of the unique signatures associated with recognized merchant identifiers, applying rules for processing a purchase authorization request with an unrecognized merchant identifier.

11. The payment card system of claim 10, wherein, in response to determining that at least one unique signature created for the purchase authorization request having the unrecognized merchant identifier matches at least one unique signature associated with recognized merchant identifiers, applying at least one rule and, if the rule is not satisfied, the purchase authorization request is rejected.

12. The payment card system of claim 11, wherein the rule is that the at least one unique signature must have been previously confirmed a threshold number of times for a registered merchant associated with the recognized merchant identifier.

13. The payment card system of claim 11, wherein the rule is that a minimum number of unique signatures created for the purchase authorization request having the unrecognized merchant identifier must match one or more of the unique signatures associated with recognized merchant identifiers.

14. The payment card system of claim 11, wherein the rule is that an account holder associated with the payment card must satisfy a threshold spending amount.

15. The payment card system of claim 10, wherein the payment card is for an account with one or more merchant purses, wherein processing the purchase authorization request comprises:

determining that an account holder associated with the purchase authorization request has sufficient funds for the purchase in a merchant purse associated with the recognized merchant identifier; and

approving the purchase authorization request in response to the account holder having sufficient funds in the merchant purse.

16. A non-transitory, computer-readable medium comprising a computer program that, when executed by a payment card system, enables the payment card system to perform the following method for creating signatures for registered merchants and processing an authorization request that includes an unrecognized merchant identifier, the method comprising:

receiving a purchase authorization request for a payment card;

determining whether a merchant identifier used to process the purchase authorization request is recognized;

in response to determining that the merchant identifier used to process the purchase authorization request is recognized, performing the following;

processing the purchase authorization request using the recognized merchant identifier,

retrieving first values for a plurality of merchant attributes in the purchase authorization request having the recognized merchant identifier and creating a plurality of combinations of the first values,

for each combination of first values from the purchase authorization request having the recognized merchant identifier, creating a unique signature corresponding only to the combination of first values, and

determining whether each created unique signature associated with the purchase authorization request having the recognized merchant identifier has been previously stored in association with the recognized merchant identifier and, if not, storing the created unique signature in association with the recognized merchant identifier; and

in response to determining that the merchant identifier used to process the purchase authorization request is not recognized, performing the following;

retrieving second values for a plurality of merchant attributes in the purchase authorization request having the unrecognized merchant identifier and creating a plurality of combinations of the second values,

for each combination of second values from the purchase authorization request having the unrecognized merchant identifier, creating a unique signature corresponding only to the combination of second values, wherein one or more of the unique signatures created for the purchase authorization request having the unrecognized merchant identifier is based on a same combination of merchant attributes as the unique signatures created for the purchase authorization requests having recognized merchant identifiers,

determining whether any of the unique signatures created for the purchase authorization request having the unrecognized merchant identifier match any of the unique signatures associated with recognized merchant identifiers,

in response to determining that at least one of the unique signatures created for the purchase authorization request having the unrecognized merchant identifier matches at least one of the unique signatures associated with recognized merchant identifiers, retrieving the applicable recognized merchant identifier and processing the purchase authorization request using the applicable recognized merchant identifier, and

in response to determining that none of the unique signatures created for the purchase authorization request having the unrecognized merchant identifier matches any of the unique signatures associated with recognized merchant identifiers, applying rules for processing a purchase authorization request with an unrecognized merchant identifier.

17. The computer-readable medium of claim 16, wherein, in response to determining that at least one unique signature created for the purchase authorization request having the unrecognized merchant identifier matches at least one unique signature associated with recognized merchant identifiers, applying at least one rule and, if the rule is not satisfied, the purchase authorization request is rejected.

18. The computer-readable medium of claim 17, wherein the rule is that the at least one unique signature must have been previously confirmed a threshold number of times for a registered merchant associated with the recognized merchant identifier.

19. The computer-readable medium of claim 18, wherein the rule is that a minimum number of unique signatures created for the purchase authorization request having the unrecognized merchant identifier must match one or more of the unique signatures associated with recognized merchant identifiers.

20. The computer-readable medium of claim 18, wherein the rule is that an account holder associated with the payment card must satisfy a threshold spending amount.

21. The computer-readable medium of claim 17, wherein the payment card is for an account with one or more merchant purses, wherein processing the purchase authorization request comprises:

determining that an account holder associated with the purchase authorization request has sufficient funds for the purchase in a merchant purse associated with the recognized merchant identifier; and

approving the purchase authorization request in response to the account holder having sufficient funds in the merchant purse.