Systems and methods for use in verifying recurring transactions to payment accounts

• US 10,210,515 B2
• Filed: 11/23/2015
• Issued: 02/19/2019
• Est. Priority Date: 11/23/2015
• Status: Active Grant

• Current Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Original Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Inventors: Vienravee, Brian
• Primary Examiner(s): Baird, Edward J
• Application Number:
  US14/948,523
• Publication Number:
  US 20170148020A1
• Time in Patent Office: 1,184 Days
• Field of Search: 705 35- 40, 705 44
• CPC Class Codes: G06Q 20/325 using wireless networks
• CPC Class Codes: G06Q 20/401 Transaction verification
• CPC Class Codes: G06Q 20/405 Establishing or using transaction specific rules
• CPC Class Codes: G06Q 20/42 Confirmation, e.g. check or permission by the legal debtor of payment

Abstract

Systems and methods are provided for verifying recurring transactions to payment accounts. One exemplary method includes initially receiving an authorization request for a transaction to a payment account and involving a merchant, where the authorization request includes a recurring payment indicator. The method also generally includes transmitting, by at least one computing device, a verification request to a consumer associated with the payment account, and inhibiting, by the at least one computing device, at least one or authorization or clearing of the transaction until a verification of the transaction, based on a direction from the consumer, is recognized, whereby the consumer is able to verify the transaction before the transaction is cleared.

Claims

1. A computer-implemented method for use in processing a recurring transaction, in which a consumer associated with a payment account, to which the transaction is directed, is not contemporaneously participating in the transaction, the method comprising:

detecting, by at least one computing device, an authorization request for a recurring transaction to a payment account, directed from a merchant, via an acquirer, to an issuer of the payment account, the authorization request including a payment account number indicative of the payment account and a recurring payment indicator, and the recurring transaction submitted by the merchant based on a prior permission of the consumer; and

in response to detecting the authorization request for the recurring transaction;

transmitting, by the at least one computing device, a verification request for the recurring transaction to a communication device of the consumer, the verification request including an SMS message;

inhibiting, by the at least one computing device, at least one of authorization and clearing of the recurring transaction until a verification response from the consumer, to the verification request for the recurring transaction, is received, whereby the consumer is permitted to verify the recurring transaction before the transaction is authorized and/or cleared;

when the verification response is received within a predefined interval by the at least one computing device and the verification response is indicative of an approval of the recurring transaction;

permitting the recurring transaction to proceed, wherein the verification response includes a reply SMS message from the consumer; and

when the verification response is not received within the predefined interval;

transmitting, by the at least one computing device, an authorization reply to the merchant via a payment network and the acquirer based on at least one default setting associated with the consumer, wherein the authorization reply includes an indicator of consumer-decline transaction.

2. The computer-implemented method of claim 1, wherein inhibiting at least one of authorization and clearing of the recurring transaction includes holding, by the at least one computing device, the authorization request for the recurring transaction until the verification response is received.

3. The computer-implemented method of claim 1, wherein inhibiting at least one of authorization and clearing of the recurring transaction includes nullifying clearing of the transaction when the verification response is not received within the predefined interval and/or the verification response indicates a decline of the transaction.

4. The computer-implemented method of claim 1, wherein inhibiting at least one of authorization and clearing of the recurring transaction includes holding an authorization reply for the recurring transaction, upon receipt of a confirmation from the issuer that the payment account includes sufficient funds and/or credit to fund the recurring transaction.

5. A non-transitory computer readable storage media including executable instructions for verifying a recurring transaction to a payment account, which when executed by at least one processor, cause the at least one processor to:

detect an authorization request for each of a series of recurring transactions between a merchant and a consumer defined by a recurring transaction schedule, each of the recurring transactions directed from the merchant to a payment account associated with the consumer, via an acquirer associated with the merchant, the payment account issued to the consumer by an issuer, and the authorization request for each of the recurring transactions including a payment account number for the payment account; and

for each of the recurring transactions in the recurring transaction schedule;

retrieve a contact credential for a communication device associated with the consumer, from memory, based on the payment account number;

transmit a verification message as an SMS message to the consumer, at the communication device, consistent with the contact credential, the verification message including at least one of a merchant and/or an amount of the recurring transaction;

inhibit an authorization reply from the issuer of the payment account, to the authorization request, when a verification response to the verification message is not received from the consumer;

when the verification response is received as an SMS message from the consumer and the verification response indicates approval of the recurring transaction;

permit the authorization reply from the issuer to be transmitted to the merchant via the acquirer associated with the merchant, wherein the authorization reply includes an approval of the recurring transaction;

when the verification response is not received within a predefined interval and a default setting associated with the consumer includes a default decline setting;

append an indicator of consumer-declined transaction in the authorization reply and permit the authorization reply to be transmitted to the merchant via the acquirer, whereby the authorization reply indicates decline of the recurring transaction; and

when the verification response for the recurring transaction is received as an SMS message from the consumer within the predefined interval and the verification response includes a decline by the consumer;

append the indicator of the consumer-declined transaction in the authorization reply and permit the authorization reply to be transmitted to the merchant via the acquirer, whereby the authorization reply indicates decline of the recurring transaction.

6. The non-transitory media of claim 5, wherein the contact credential includes a phone number associated with the communication device associated with the consumer.

7. The non-transitory media of claim 5, wherein the executable instructions, when executed by the at least one processor, further cause the at least one processor to:

when the verification response is not received within a predefined interval and a default setting associated with the consumer includes a default approve setting;

permit the authorization reply to be transmitted to the merchant via the acquirer, whereby the authorization reply indicates approval of the recurring transaction.

8. A system for use in verifying recurring transactions to payment accounts, the system comprising:

at least one computing device including a memory, the at least one computing device configured to;

detect an authorization request for a recurring transaction to a payment account, transmitted from a merchant involved in the transaction, via an acquirer associated with the merchant, based on a recurring transaction indicator in the request, the payment account associated with a consumer, and the authorization request including a payment account number indicative of the payment account;

in response to the detected authorization request, retrieve a contact credential for the consumer based on the payment account number;

transmit a verification request to the consumer as an SMS message, at a communication device of the consumer, based on the contact credential, the verification request including an amount of the recurring transaction and a merchant involved in the recurring transaction;

inhibit at least one of an authorization reply for the recurring transaction and clearing of the recurring transaction until expiration of a predefined interval or until a verification response to the verification request is received as an SMS message; and

when the verification response is received and includes an approval indicator, transmit the authorization reply to the merchant via the acquirer and/or permit clearing of the recurring transaction;

when the verification response is received and includes a decline from the consumer, i) append an indicator of consumer-declined transaction to the authorization reply and transmit the authorization reply to the merchant via the acquirer or ii) decline clearing of the recurring transaction; and

when the verification response is not received within a predefined interval and a default setting associated with the consumer includes a default decline setting, i) append the indicator of consumer-declined transaction to the authorization reply and transmit the authorization reply to the merchant via the acquirer or ii) decline clearing of the recurring transaction.

9. The system of claim 8, further comprising a payment network including the at least one computing device.

10. The system of claim 8, wherein the at least one computing device is further configured to:

confirm the payment account is in good standing with an issuer of the payment account; and

transmit the verification request for the recurring transaction, only after confirming the payment account is in good standing with the issuer.

11. The system of claim 8, wherein the at least one computing device is further configured, when the verification response is not received within the predefined interval and the default setting includes a default approve setting, to transmit the authorization reply to the merchant via the acquirer and/or permit clearing of the recurring transaction.