System and method for using cardholder context and preferences in transaction authorization

• US 10,043,182 B1
• Filed: 10/22/2013
• Issued: 08/07/2018
• Est. Priority Date: 10/22/2013
• Status: Active Grant

• Current Assignee: Ondot Systems, Inc. (Fiserv Incorporated)
• Original Assignee: Ondot Systems, Inc. (Fiserv Incorporated)
• Inventors: Bharghavan, Vaduvur, Gurumurthy, Rajesh, Paul, Rahul, Prasad, Govardan, Sundaram, Ramachandran Minakshi, Ahlawat, Rachna
• Primary Examiner(s): Nguyen, Tien C
• Application Number:
  US14/060,439
• Time in Patent Office: 1,750 Days
• Field of Search: 705 44, 705 39, 705 21, 705 19, 705 1423, 705 40, 705 37, 705 38, 705 2641, 705 1422, 705 1465, 340 54, 3405721, 235380, 235385, 4554563, 342450, 707774, 707769, 718102, 717124
• CPC Class Codes: G06Q 20/3224 Transactions dependent on location of M-devices
• CPC Class Codes: G06Q 20/385 using an alias or single-use codes
• CPC Class Codes: G06Q 20/4015 using location information
• CPC Class Codes: G06Q 20/405 Establishing or using transaction specific rules

Abstract

A method and system for processing a payment authorization request associated with a payment card is provided. The method comprises determining a cardholder'"'"'s context based on transmissions received from a user device associated with a cardholder using the payment card; determining a transaction context based on analysis of the payment authorization request; determining at least one transaction authorization preference associated with the payment card; performing a transaction authorization process to generate a transaction authorization response based on the at least one transaction authorization preference wherein information in the transaction context is used as a hint to selectively guide application of the transaction authorization preference.

Claims

1. A computer-implemented method, in a context correlation server of a data network implemented at least partially in hardware, for correlating merchant context to user preferences for transactions to improve transaction security of an issuer processor device when processing payment authorization requests associated with payment cards, the method comprising:

receiving user preference information for a plurality of users, wherein the user preference information comprises at least rules that;

a payment card may only be used if a merchant is within a proximity of the cardholder, limit transaction types, limit transaction amounts, limit payment types, and limit merchant types;

receiving context information updates from user devices in real-time, wherein the context information comprises at least current geo-location information and one other context data relevant to user preferences;

receiving, from the issuer processor making a determination of whether to authorize a specific transaction, a specific payment authorization request from a specific merchant device during the specific transaction, wherein the specific payment authorization includes at least one context data relevant to user preferences,

determining a specific cardholder'"'"'s context based on transmissions received from a specific user device associated with the specific cardholder using the specific payment card;

determining a transaction context of the specific merchant based on parsing network packets associated with the specific payment authorization request, wherein the parsing identifies a location of the specific merchant and at least one other context data, and wherein parsing the specific payment authorization request is based at least in part on the ISO (International Standards Organization) 8583 protocol for data arrangement of at least merchant information within the specific payment authorization request;

applying the specific cardholder'"'"'s context in view of the user preferences to the transaction context including;

(a) comparing geo-physical coordinates of the specific user device to geo-physical coordinates of the specific merchant device, wherein the specific merchant geo-physical coordinates are determined by mapping merchant city information from the specific payment authorization request to a known city name comprises;

Map the city name to a known database;

and when no mapping match occurrs, by generating a set of tokens comprising an alphanumeric substring of the merchant city information identified from the parsing;

replacing any of the set of tokens with a matching canonical token; and

matching the newly generated string against a second database of geographical regions; and

(b) comparing the at least one other context data;

responsive to a positive comparison of the specific cardholder'"'"'s context in view of the user preferences to the transaction context of the geo-physical coordinates, approving the specific payment authorization request, wherein the positive comparison is due to an acceptable proximity between the geo-physical coordinates, and a positive comparison of the at least one other context data to at least one user preference, wherein the specific payment authorization is received over the data network; and

sending, to the issuer processor, the approval to the specific payment authorization request over the network to the issuer processor device in the authorization determination to the specific merchant device regarding the specific transaction.

2. The method of claim 1, wherein the user preferences for the specific cardholder override a card-present authorization preference if the transaction context indicates that the payment authorization request is in respect of involves an online transaction.

3. The method of claim 1, wherein the user preferences for the specific cardholder override a card-present authorization preference if the transaction context indicates a predefined merchant known to initiate the payment authorization request at a location different from a location indicated by the a cardholder'"'"'s context.

4. The method of claim 1, wherein the user preferences for the specific cardholder override a card-present authorization preference if the transaction context indicates that the payment authorization request was generated according to a predefined transaction type.

5. The method of claim 4, wherein the predefined transaction type comprises a recurring transaction.

8. The method of claim 1, wherein the transmissions from the user device comprise location updates.

9. The method of claim 8, further comprising optimizing at least one criterion based on which the user device sends the location updates.

6. The method of 1, wherein the cardholder context comprises location information of the specific cardholder.

7. The method of claim 6, wherein determining the transaction context comprises a step of determining a merchant location from the transaction authorization request by mapping merchant location information contained therein to a geographical location.

10. A system, comprising:

a processor; and

a memory coupled to the processor, the memory storing instructions which when executed by the processor, causes the system to perform a method for processing a payment authorization request associated with a payment card, comprising;

receiving user preference information for a plurality of users, wherein the user preference information comprises at least rules that;

a payment card may only be used if a merchant is within a proximity of the cardholder, limit transaction types, limit transaction amounts, limit payment types, and limit merchant types;

receiving context information updates from user devices in real-time, wherein the context information comprises at least current geo-location information and one other context data relevant to user preferences;

receiving, from the issuer processor making a determination of whether to authorize a specific transaction, a specific payment authorization request from a specific merchant device during the specific transaction, wherein the specific payment authorization includes at least one context data relevant to user preferences,

determining a specific cardholder'"'"'s context based on transmissions received from a specific user device associated with the specific cardholder using the specific payment card;

determining a transaction context of the specific merchant based on parsing network packets associated with the specific payment authorization request, wherein the parsing identifies a location of the specific merchant and at least one other context data, and wherein parsing the specific payment authorization request is based at least in part on the ISO (International Standards Organization) 8583 protocol for data arrangement of at least merchant information within the specific payment authorization request;

applying the specific cardholder'"'"'s context in view of the user preferences to the transaction context including;

(a) comparing geo-physical coordinates of the specific user device to geo-physical coordinates of the specific merchant device, wherein the specific merchant geo-physical coordinates are determined by mapping merchant city information from the specific payment authorization request to a known city name comprises;

Map the city name to a known database;

and when no mapping match occurrs, by generating a set of tokens comprising an alphanumeric substring of the merchant city information identified from the parsing;

replacing any of the set of tokens with a matching canonical token; and

matching the newly generated string against a second database of geographical regions; and

(b) comparing the at least one other context data;

responsive to a positive comparison of the specific cardholder'"'"'s context in view of the user preferences to the transaction context of the geo-physical coordinates, approving the specific payment authorization request, wherein the positive comparison is due to an acceptable proximity between the geo-physical coordinates, and a positive comparison of the at least one other context data to at least one user preference, wherein the specific payment authorization is received over the data network; and

sending, to the issuer processor, the approval to the specific payment authorization request over the network to the issuer processor device in the authorization determination to the specific merchant device regarding the specific transaction.

11. The system of claim 10, wherein the user preferences for the specific cardholder override a card-present authorization preference if the transaction context indicates that the payment authorization request involves an online transaction.

12. The system of claim 10, wherein the user preferences for the specific cardholder override a card-present authorization preference if the transaction context indicates that the payment authorization request was generated in respect of a predefined merchant.

13. The system of claim 12, wherein the predefined merchant comprises a merchant known to initiate the payment authorization request at a location different from a location indicated by the cardholder'"'"'s context.

14. The system of claim 10, wherein the user preferences for the specific cardholder override a card-present authorization preference if the transaction context indicates that the payment authorization request was generated in respect of a predefined transaction type.

15. The system of claim 14, wherein the predefined transaction type comprises a recurring transaction.

16. A non-transitory computer-readable medium having stored thereon a sequence of instructions which when executed by a processor causes a system to perform a method in a context correlation server of a data network, for correlating merchant context to user preferences for transactions as transaction security when processing payment authorization requests associated with payment cards, the method comprising:

receiving user preference information for a plurality of users, wherein the user preference information comprises at least rules that;

a payment card may only be used if a merchant is within a proximity of the cardholder, limit transaction types, limit transaction amounts, limit payment types, and limit merchant types;

receiving context information updates from user devices in real-time, wherein the context information comprises at least current geo-location information and one other context data relevant to user preferences;

receiving, from the issuer processor making a determination of whether to authorize a specific transaction, a specific payment authorization request from a specific merchant device during the specific transaction, wherein the specific payment authorization includes at least one context data relevant to user preferences,

determining a specific cardholder'"'"'s context based on transmissions received from a specific user device associated with the specific cardholder using the specific payment card;

determining a transaction context of the specific merchant based on parsing network packets associated with the specific payment authorization request, wherein the parsing identifies a location of the specific merchant and at least one other context data, and wherein parsing the specific payment authorization request is based at least in part on the ISO (International Standards Organization) 8583 protocol for data arrangement of at least merchant information within the specific payment authorization request;

applying the specific cardholder'"'"'s context in view of the user preferences to the transaction context including;

(a) comparing geo-physical coordinates of the specific user device to geo-physical coordinates of the specific merchant device, wherein the specific merchant geo-physical coordinates are determined by mapping merchant city information from the specific payment authorization request to a known city name comprises;

Map the city name to a known database;

and when no mapping match occurrs, by generating a set of tokens comprising an alphanumeric substring of the merchant city information identified from the parsing;

replacing any of the set of tokens with a matching canonical token; and

matching the newly generated string against a second database of geographical regions; and

(b) comparing the at least one other context data;

responsive to a positive comparison of the specific cardholder'"'"'s context in view of the user preferences to the transaction context of the geo-physical coordinates, approving the specific payment authorization request, wherein the positive comparison is due to an acceptable proximity between the geo-physical coordinates, and a positive comparison of the at least one other context data to at least one user preference, wherein the specific payment authorization is received over the data network; and

sending, to the issuer processor, the approval to the specific payment authorization request over the network to the issuer processor device in the authorization determination to the specific merchant device regarding the specific transaction.