Cardless payment transactions

• US 10,185,958 B2
• Filed: 11/21/2012
• Issued: 01/22/2019
• Est. Priority Date: 11/22/2011
• Status: Active Grant

• Current Assignee: Block, Inc. (f/k/a Square, Inc.)
• Original Assignee: Block, Inc. (f/k/a Square, Inc.)
• Inventors: Henderson, William, Dorsey, Jack, Grassadonia, Brian, Wilson, Mathew
• Primary Examiner(s): Poinvil, Frantzy
• Application Number:
  US13/683,841
• Publication Number:
  US 20130132274A1
• Time in Patent Office: 2,253 Days
• Field of Search: 705 3- 44
• CPC Class Codes: G06Q 20/3224 Transactions dependent on location of M-devices
• CPC Class Codes: G06Q 20/325 using wireless networks
• CPC Class Codes: G06Q 20/327 Short range or proximity payments by means of M-devices
• CPC Class Codes: G06Q 20/4012 Verifying personal identification numbers [PIN]
• CPC Class Codes: G06Q 20/4014 Identity check for transactions
• CPC Class Codes: G06Q 30/0185 Product, service or business identity fraud

Abstract

A method of processing a transaction between a customer and a merchant includes receiving from a mobile device of the customer or from another device of the customer an indication of consent to perform a cardless payment transaction with the merchant, receiving from the mobile device an indication that the customer is within a predetermined distance of the merchant, after receiving both the indication of consent and the indication that the customer is within the predetermined distance, sending to a computer system of the merchant an indication of the presence of the customer and personal identifying information for the customer, receiving data indicating a transaction between the customer and the merchant, and submitting the transaction to a financial service for authorization.

Claims

1. A method of processing a cardless payment transaction between a mobile computing device of a customer and a merchant device, comprising:

receiving, by the mobile computing device, input selecting a merchant from a plurality of merchants;

before the customer selects at least one item for purchase at a merchant location associated with the merchant, sending, by the mobile computing device and to a payment service system, an indication of customer consent for the merchant to perform the cardless payment transaction using a customer account of the customer with the payment service system;

receiving one or more wireless signals via a receiver of the mobile computing device;

after sending the indication of customer consent, automatically determining, by the mobile computing device, that the mobile computing device is within a predetermined distance of the merchant location based on the receiver of the mobile computing device receiving the one or more wireless signals; and

in response to determining that the mobile computing device is within the predetermined distance of the merchant location, automatically sending, by the mobile computing device and to the payment service system, an indication that the mobile computing device is within the predetermined distance of the merchant location; and

in response to sending the indication of customer consent and sending the indication that the mobile computing device is within the predetermined distance of the merchant location, receiving a notification at the mobile computing device and from the payment service system, the notification indicating that the cardless payment transaction has succeeded, wherein the payment service system sends the merchant device identifier information for initiating the cardless payment transaction and communicates with one or more financial institution servers to complete the cardless payment transaction by transferring funds from a customer financial account associated with the customer and stored in a secure server of the payment service system in the customer account to a merchant financial account associated with a merchant as stored in the secure server of the payment service system.

2. The method of claim 1, wherein the receiver of the mobile computing device is a Global Positioning System (GPS) receiver, and wherein the one or more wireless signals are GPS signals.

3. The method of claim 1, wherein sending the indication of customer consent for the merchant to perform the cardless payment transaction occurs before the mobile computing device determines that the customer is within the predetermined distance of the merchant location.

4. The method of claim 1, wherein the one or more wireless signals are wireless network signals correspond to wireless network data associated with a wireless local area network.

5. The method of claim 1, wherein the one or more wireless signals are wireless network signals correspond to cellphone network data.

6. The method of claim 1, wherein the identifier information for initiating the cardless payment transaction includes a name of the customer.

7. The method of claim 1, further comprising:

receiving, by the mobile computing device, an indication that a value of the cardless payment transaction exceeds a predetermined amount;

receiving, by the mobile computing device, user input of a PIN; and

sending the PIN from the mobile computing device to the payment service system for approval.

8. The method of claim 1, further comprising:

determining that the mobile computing device is outside of the predetermined distance of the merchant location before determining that the mobile computing device is within the predetermined distance of the merchant location; and

displaying a message at the mobile computing device automatically in response to determining that the mobile computing device is outside of the predetermined distance of the merchant location.

9. A method of processing a cardless payment transaction between a mobile computing device of a customer and a merchant device, comprising:

storing, by one or more secure servers of a payment service system, a customer account of the customer, the customer account including at least information associated with a payment card that the payment service system can use to initiate the cardless payment transaction with at least one merchant device;

before the customer selects at least one item for purchase at a merchant location, receiving, by the one or more secure servers of payment service system and from the mobile computing device, an indication of customer consent for a merchant to perform the cardless payment transaction using the customer account when the mobile computing device is within a predetermined distance of the merchant location;

after receiving the indication of customer consent, receiving, by the one or more secure servers of the payment service system and from the mobile computing device, an indication that the mobile computing device is within the predetermined distance of the merchant location based on receipt of one or more wireless signals via a receiver of the mobile computing device;

based at least in part on receiving the indication of customer consent and receiving the indication that the mobile computing device is within the predetermined distance of the merchant location, automatically sending, by the one or more secure servers of the payment service system and to the merchant device of the merchant, identifier information for initiating the cardless payment transaction with the mobile computing device;

after sending the information for initiating the cardless payment transaction, receiving, by the one or more secure servers of the payment service system and from the merchant device, transaction data associated with the cardless payment transaction;

in response to receiving the transaction data associated with the cardless payment transaction, automatically attempting to authorize the cardless payment transaction with a financial institution associated with the customer using the customer account associated with the customer with the payment service system; and

automatically sending a notification from the one or more secure servers of the payment service system to the mobile computing device, the notification identifying a state of the cardless payment transaction after the attempting to authorize the cardless payment transaction.

10. The method of claim 9, further comprising:

identifying that the cardless payment transaction has succeeded after attempting to authorize the cardless payment transaction, wherein the state of the cardless payment transaction after the attempting to authorize the cardless payment transaction is success.

11. The method of claim 9, further comprising creating the notification, wherein the notification is a receipt.

12. The method of claim 9, wherein the merchant device is authorized to initiate the cardless payment transaction using the customer account associated with the customer with the payment service system based at least in part on sending the identifier information.

13. The method of claim 12, wherein the identifier information for initiating the cardless payment transaction includes a name of the customer.

14. The method of claim 9, further comprising:

determining that a value of the cardless payment transaction exceeds a predetermined amount;

sending, to the mobile computing device, an indication that the value of the cardless payment transaction exceeds the predetermined amount;

receiving, from the mobile computing device, user input of a PIN; and

determining that the PIN matches a previously received PIN.

15. The method of claim 9, wherein the receiver of the mobile computing device is a Global Positioning System (GPS) receiver, and wherein the one or more wireless signals are GPS signals.

16. The method of claim 9, wherein attempting to authorize the cardless payment transaction comprises sending data associated with the cardless payment transaction to server associated with the payment service system for authorization.

17. A method of processing a cardless payment transaction between a mobile computing device of a customer and a merchant device of a merchant, comprising:

before a customer selects at least one item for purchase at a merchant location, sending, by a merchant device and from a payment service system, an indication of customer consent for the merchant to perform the cardless payment transaction using a customer account associated with the customer with the payment service system;

after receiving the indication of customer consent, receiving, by the merchant device and from the payment service system, identifier information for initiating the cardless payment transaction with the merchant;

receiving, by the merchant device and from the payment service system, an indication that the mobile computing device is within a predetermined distance of the merchant location, wherein the merchant device is authorized to initiate the cardless payment transaction based at least in part on the mobile computing device being within the predetermined distance of the merchant location based on receipt of one or more wireless signals via a receiver of the mobile computing device;

in response to receiving the indication that the mobile computing device is within the predetermined distance of the merchant location, automatically displaying, by the merchant device, the identifier information for initiating the cardless payment transaction;

receiving, by the merchant device via an input device, a verification input associated with verification of the identifier information for initiating the cardless payment transaction; and

in response to receiving the verification input, automatically initiating, by the merchant device, the cardless payment transaction using the customer account associated with the customer with the payment service system.

18. The method of claim 17, wherein receiving the indication of customer consent occurs before receiving the indication that the mobile computing device is within the predetermined distance of the merchant location.

19. The method of claim 17, wherein the identifier information for initiating the cardless payment transaction includes a name of the customer.

20. The method of claim 17, further comprising:

verifying that an identity of the customer matches the identifier information for initiating the cardless payment transaction, wherein the verification input indicates that the identity of the customer matches the identifier information.

21. The method of claim 17, wherein initiating the cardless payment transaction comprises sending, by the merchant device and to the payment service system, transaction data associated with the cardless payment transaction.

22. A computer program product, encoded on one or more non-transitory computer storage media, comprising instructions that when executed by one or more computers cause the one or more computers to perform operations comprising:

before a customer selects at least one item for purchase at a merchant location of a merchant, sending, by a mobile computing device of the customer and to a payment service system, an indication of customer consent for the merchant to perform a cardless payment transaction using a customer account associated with the customer with the payment service system;

receiving one or more wireless signals via a receiver of the mobile computing device;

after sending the indication of customer consent and in response to receiving the one or more wireless signals via the receiver of the mobile computing device, automatically determining, by the mobile computing device, that the mobile computing device is within a predetermined distance of the merchant location; and

in response to determining that the mobile computing device is within the predetermined distance of the merchant location, automatically sending, by the mobile computing device and to the payment service system, an indication that the mobile computing device is within the predetermined distance of the merchant location,

in response to sending the indication of customer consent and sending the indication that the mobile computing device is within the predetermined distance of the merchant location, receiving a notification at the mobile computing device and from the payment service system, the notification indicating that the cardless payment transaction has succeeded, wherein the payment service system sends the merchant device identifier information for initiating the cardless payment transaction and communicates with one or more financial institution servers to complete the cardless payment transaction by transferring funds from the customer account associated with the customer to a merchant account associated with a merchant.

23. The computer program product of claim 22, wherein the receiver of the mobile computing device is a Global Positioning System (GPS) receiver, and wherein the one or more wireless signals are GPS signals.

24. The computer program product of claim 22, wherein sending the indication of customer consent for the merchant to perform the cardless payment transaction occurs before the mobile computing device determines that the customer is within the predetermined distance of the merchant location.

25. The computer program product of claim 22, wherein the one or more wireless signals are wireless network signals correspond to wireless network data associated with a wireless local area network.

26. The computer program product of claim 22, wherein the one or more wireless signals are wireless network signals correspond to cellphone network data.

27. The computer program product of claim 22, wherein the identifier information for initiating the cardless payment transaction includes a photo of the customer.

28. The computer program product of claim 22, wherein the operations further comprise:

receiving, by the mobile computing device, an indication that a value of the cardless payment transaction exceeds a predetermined amount;

receiving, by the mobile computing device, user input of a PIN; and

sending the PIN from the mobile computing device to the payment service system for approval.

29. The computer program product of claim 22, wherein the receiver of the mobile computing device is a Global Positioning System (GPS) receiver, and wherein the one or more wireless signals are GPS signals.

30. A computer program product, encoded on one or more non-transitory computer storage media, comprising instructions that when executed by one or more computers cause the one or more computers to perform operations comprising:

storing, by a payment service system, a customer account for a customer, the customer account including at least in information associated with a payment card;

before the customer selects at least one item for purchase at a merchant location, receiving, by a payment service system and from a mobile computing device of the customer, an indication of customer consent for a merchant to perform a cardless payment transaction using a customer account of the customer with the payment service system when the mobile computing device is within a predetermined distance of the merchant location;

after receiving the indication of customer consent, receiving, by the payment service system and from the mobile computing device, an indication that the mobile computing device is within the predetermined distance of the merchant location based on receipt of one or more wireless signals via a receiver of the mobile computing device;

in response to receiving the indication of customer consent and receiving the indication that the mobile computing device is within the predetermined distance of the merchant location, automatically sending, by the payment service system and to a merchant device of the merchant, identifier information for initiating the cardless payment transaction with the mobile computing device;

after sending the information for initiating the cardless payment transaction, receiving, by the payment service system and from the merchant device, transaction data associated with the cardless payment transaction; and

in response to receiving the transaction data associated with the cardless payment transaction, automatically attempting to authorize the cardless payment transaction with a financial institution associated with the customer using the customer account associated with the customer with the payment service system.

31. The computer program product of claim 30, wherein the operations further comprise:

sending, to the mobile computing device, an indication of a plurality of merchants that will perform cardless payment transactions for display at the mobile computing device.

32. The computer program product of claim 30, wherein receiving the indication of customer consent comprises receiving, by the payment service system and from the mobile computing device, the indication of customer consent before the customer arrives at the merchant location.

33. The computer program product of claim 30, wherein the merchant is authorized to initiate the cardless payment transaction using the customer account based at least in part on sending the identifier information.

34. The computer program product of claim 30, wherein the identifier information for initiating the cardless payment transaction includes a photo of the customer.

35. The computer program product of claim 30, wherein the operations further comprise:

determining that a value of the cardless payment transaction exceeds a predetermined amount;

sending, to the mobile computing device, an indication that the value of the cardless payment transaction exceeds the predetermined amount;

receiving, from the mobile computing device, user input of a PIN; and

determining that the PIN matches a previously received PIN.

36. The computer program product of claim 30, wherein the receiver of the mobile computing device is a Global Positioning System (GPS) receiver, and wherein the one or more wireless signals are GPS signals.

37. A computer program product, encoded on one or more non-transitory computer storage media, comprising instructions that when executed by one or more computers cause the one or more computers to perform operations comprising:

before a customer selects at least one item for purchase at a merchant location, receiving, by a merchant device of a merchant and from a payment service system, an indication of customer consent for the merchant to perform a cardless payment transaction using a customer account associated with the customer with the payment service system;

after receiving the indication of customer consent, receiving, by the merchant device and from the payment service system, identifier information for initiating the cardless payment transaction;

receiving, by the merchant device and from the payment service system, an indication that a mobile computing device associated with the customer is within a predetermined distance of the merchant location based on receipt of one or more wireless signals via a receiver of the mobile computing device;

in response to receiving the indication that the mobile computing device is within the predetermined distance of the merchant location, automatically displaying, by the merchant device, the identifier information for initiating the cardless payment transaction;

receiving, by the merchant device via an input device, a verification input associated with verification of the identifier information for initiating the cardless payment transaction; and

initiating, by the merchant device, the cardless payment transaction using the customer account associated with the customer.

38. The computer program product of claim 37, wherein receiving the indication of customer consent occurs before receiving the indication that the mobile computing device is within the predetermined distance of the merchant location.

39. The computer program product of claim 37, wherein the identifier information for initiating the cardless payment transaction includes a photo of the customer.

40. The computer program product of claim 37, wherein the receiver of the mobile computing device is a Global Positioning System (GPS) receiver, and wherein the one or more wireless signals are GPS signals.

41. A system comprising:

one or more computers and one or more storage devices storing instructions that, when executed by the one or more computers, cause the one or more computers to perform operations comprising;

before a customer selects at least one item for purchase at a merchant location, receiving, from a mobile computing device of the customer, an indication of customer consent for a merchant to perform a cardless payment transaction using a customer account associated with the customer;

after receiving the indication of customer consent, receiving, from the mobile computing device, an indication that the mobile computing device is within a predetermined distance of the merchant location based on receipt of one or more wireless signals via a receiver of the mobile computing device;

in response to receiving the indication that the mobile computing device is within the predetermined distance of the merchant location, automatically sending, to a merchant device of the merchant, identifier information for initiating the cardless payment transaction;

after sending the information for initiating the cardless payment transaction, receiving, from the merchant device, transaction data associated with the cardless payment transaction; and

in response to receiving the transaction data associated with the cardless payment transaction, automatically attempting to authorize the cardless payment transaction with a financial institution associated with the customer using the customer account.

42. The system of claim 41, wherein the operations further comprise:

automatically sending a notification to the mobile computing device, the notification identifying a state of the cardless payment transaction after the attempting to authorize the cardless payment transaction.

43. The system of claim 41, wherein receiving the indication of customer consent occurs before receiving the indication that the mobile computing device is within the predetermined distance of the merchant location.

44. The system of claim 41, wherein the merchant is authorized to initiate the cardless payment transaction based at least in part on sending the identifier information for initiating the cardless payment transaction.

45. The system of claim 41, wherein the information for initiating the cardless payment transaction includes a name of the customer.

46. The system of claim 41, wherein the operations further comprise:

determining that a value of the cardless payment transaction exceeds a predetermined amount;

sending, to the mobile computing device, an indication that the value of the cardless payment transaction exceeds the predetermined amount;

receiving, from the mobile computing device, user input of a PIN; and

determining that the PIN matches a previously received PIN.

47. The system of claim 41, wherein the receiver of the mobile computing device is a Global Positioning System (GPS) receiver, and wherein the one or more wireless signals are GPS signals.