Surcharge violation registry

• US 10,339,528 B2
• Filed: 12/16/2014
• Issued: 07/02/2019
• Est. Priority Date: 12/05/2012
• Status: Active Grant

• Current Assignee: Bank of America Corp.
• Original Assignee: Bank of America Corp.
• Inventors: Murphy, Matthew D., Weigman, Scott A.
• Primary Examiner(s): Hayles, Ashford S
• Application Number:
  US14/571,828
• Publication Number:
  US 20150106271A1
• Time in Patent Office: 1,659 Days
• CPC Class Codes: G06Q 20/405 Establishing or using transaction specific rules
• CPC Class Codes: G06Q 40/10 Tax strategies

Abstract

Apparatus and methods for auditing a transaction record are provided. The transaction record may correspond to a credit card transaction. The auditing may include identifying a surcharge violation. The surcharge violation may be an unlawful surcharge. The auditing may identify patterns of double surcharging. Transaction-level auditing may include ensuring that a surcharge is returned upon a product return. A mobile wallet application may allow consumers to access and/or report merchant surcharge compliance activity. Functionality may include surcharge receipt scanning for use in crosschecking authenticity of a consumer report. Additional crosscheck functionality provided by geographic location support. Embodiments may include a registry for merchants that certify their surcharge calculations.

Claims

1. A system architecture for controlling operation of a merchant point-of-sale (POS) terminal, the system architecture comprising:

an electronic communication network including a plurality of communication lines for transmitting and receiving electronic data from systems on the network;

a merchant POS terminal comprising;

hardware device for capturing data stored on a payment instrument, the hardware comprising a bar code reader and a chip reader;

a terminal network interface in electronic communication with the communication lines;

a POS terminal processor including hardware that controls the bar code reader, chip reader and the terminal network interface; and

a POS terminal machine readable memory storing instructions for execution by the POS terminal processor; and

an issuer computer system comprising;

an issuer network interface including hardware in electronic communication with the communication lines;

an issuer system processor including hardware that controls the issuer network interface; and

an issuer system machine readable memory storing instructions for execution by the issuer system processor;

a mobile device comprising;

a mobile processor;

a camera; and

a mobile machine readable memory storing instructions that, when executed by the mobile processor, present an interface for transmitting, via the communication lines, a surcharge violation notice and a digital image captured by the camera; and

a surcharge engine computer system including hardware electronically interfacing, via the communication lines, between the POS terminal, the issuer computer system and the mobile device, the surcharge engine computer system comprising;

a surcharge engine processor; and

a non-transitory computer usable medium including hardware and having computer readable program code embodied therein, the code when executed by the surcharge engine processor causes the surcharge engine processor to identify a surcharge violation associated with a purchase captured by the POS terminal and take remedial action in response to detection of the surcharge violation, the computer readable program code comprising;

computer readable program code for causing the surcharge engine processor to receive, via the communication lines, the surcharge violation notice and the digital image captured by the mobile device, the digital image including at least one of;

surcharge signage; and

a transaction receipt issued by the POS terminal in response to the purchase;

computer readable program code for causing the surcharge engine computer system to, in response to receiving the digital image, extract data from the digital image and generate a plurality of surcharge attributes based on the data extracted from the digital image, the plurality of surcharge attributes comprising at least;

a surcharge amount imposed at a merchant location by the merchant POS terminal on the purchase;

the payment instrument associated with the purchase;

a transaction network associated with the purchase; and

a surcharge amount advertised at the merchant location at a time of the purchase;

computer readable program code for causing the surcharge engine computer system to communicate with the transaction network and determine a surcharge amount authorized by the transaction network at the time of the purchase;

computer readable program code for causing the surcharge engine computer system to communicate with the issuer computer system via the communication lines and calculate, based on issuer surcharge data received from the issuer apparatus computer system, a surcharge amount authorized by the issuer computer system for the payment instrument at the time of the purchase;

computer readable program code for causing the surcharge engine computer system to detect identify a surcharge violation when;

the surcharge amount imposed at the merchant location does not correspond to the surcharge amount authorized by the transaction network;

the surcharge amount imposed at the merchant location does not correspond to the surcharge amount advertised at the merchant location; and

the surcharge amount imposed at the merchant location does not correspond to the surcharge amount authorized for the payment instrument by the issuer computer system; and

computer readable program code for causing the surcharge engine computer system, in response to detection of the surcharge violation, to;

deny a surcharge amount submitted by the merchant POS terminal to the issuer computer system after identifying the surcharge violation;

transmit using the communication lines, to the mobile device, an option to abort the purchase;

after the transmitting of the option to abort, receive a message from the mobile device aborting the purchase; and

in response to receiving of the message;

instruct the merchant POS terminal to abort the purchase; and

restrict the merchant POS terminal from processing additional surcharged purchases for a pre-determined period of time.

2. The system architecture of claim 1 further comprising computer readable program code for causing the surcharge engine computer system to:

compare a location associated with the surcharge violation notice to the merchant location;

identify a surcharge rule in effect during a time associated with the surcharge violation notice; and

register the surcharge violation when;

the location is within a predetermined distance of the merchant location; and

the one or more surcharge attributes do not correspond to the surcharge rule.

3. The system architecture of claim 1 wherein the surcharge violation is:

the surcharge amount imposed at the merchant location is in breach of an agreement with one or more transaction participants;

an incentive offered at a point-of-sale, the incentive corresponding to a variable surcharge that is dependent on the issuer associated with the payment instrument;

or

a double surcharge.

4. The system architecture of claim 1 further comprising computer readable program code for causing the surcharge engine computer system to transmit the surcharge violation to an online registry.

5. The system architecture of claim 1, further comprising computer readable program code for causing the surcharge engine computer system to identify the one or more surcharge attributes based on extracting from the image:

a payment instrument identifier;

a merchant identifier;

the surcharge amount imposed at the merchant location; and

a purchase amount.

6. The system architecture of claim 1, further comprising computer readable program code for causing the surcharge engine computer system to:

monitor a number of surcharge violations associated with the merchant location; and

determine a surcharge violation score based on the number of surcharge violations.

7. The system architecture of claim 6, further comprising computer readable program code for causing the surcharge engine computer system to determine the surcharge violation score based on a ratio of:

the number of surcharge violations detected during a pre-determined time period; and

a total number of transactions conducted at the merchant location during the pre-determined time period.

8. The system architecture of claim 1, further comprising computer readable program code for causing the surcharge engine computer system to communicate with the issuer computer system and adjust a merchant discount imposed at the merchant location based on a number of identified surcharge violations.

9. The system architecture of claim 1 further comprising:

computer readable program code for causing the surcharge engine computer system to determine a distance between;

a first location determined by the mobile device; and

a second location derived from the surcharge violation notice; and

computer readable program code for causing the surcharge engine computer system to register the surcharge violation when the distance is less than a threshold distance.

10. The system architecture of claim 9 wherein the threshold distance corresponds to a radius extending from the second location.

11. The system architecture of claim 9 wherein:

the first location corresponds to a global positioning system coordinate; and

the second location corresponds to a street address.

12. The system architecture of claim 9 wherein:

the first location is determined by the mobile device at a time an image is captured by the mobile device; and

the surcharge violation notice comprises the image.

13. The system architecture of claim 9 wherein the first location is determined by the mobile device at a time that payment instrument information is transmitted from the mobile device to the POS terminal.

14. The system architecture of claim 1 further comprising computer readable program code for causing the surcharge engine computer system to transmit the surcharge violation to a transaction participant.