Processing transactions in offline mode

• US 10,366,378 B1
• Filed: 06/30/2016
• Issued: 07/30/2019
• Est. Priority Date: 06/30/2016
• Status: Active Grant

• Current Assignee: Block, Inc. (f/k/a Square, Inc.)
• Original Assignee: Square Inc (Block, Inc. (f/k/a Square, Inc.))
• Inventors: Han, Koun, White, Michael Wells, Botros, Paul Abraham
• Primary Examiner(s): Glass, Russell S
• Application Number:
  US15/199,466
• Time in Patent Office: 1,125 Days
• Field of Search: 705 17
• CPC Class Codes: G06K 7/0004 Hybrid readers
• 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 20/204 comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit
• CPC Class Codes: G06Q 20/208 Input by product or record sensing, e.g. weighing or scanner processing
• CPC Class Codes: G06Q 20/4014 Identity check for transactions
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 20/425 using two different networks, one for transaction and one for security confirmation
• CPC Class Codes: G07F 7/0893 the card reader reading the card in a contactless manner
• CPC Class Codes: G07G 1/009 the reader being an RFID reader

Abstract

In some examples, methods and systems may process one or more payment transactions between a merchant and a buyer by detecting buyer'"'"'s communication device as an instrument to approve or reject a payment transaction in offline mode. The method includes detecting at least one transaction activity associated with a payment system, establishing a communication channel between the POS terminal an RF communication device in proximity to the POS terminal to obtain at least one device characteristic of the communication device, related to the operational or physical features of the communication device; generating a digital fingerprint based in part on the obtained device characteristic and the information related to received payment object; determining whether the digital fingerprint substantially compares to an existing fingerprint in a database and if the existing fingerprint is substantially similar to the digital fingerprint, rejecting the payment transaction through presence of the communication device.

Claims

1. A computer-implemented method of processing a payment transaction between a buyer and a merchant, the method comprising:

detecting at least one transaction activity associated with a point-of-sale (POS) device, of the merchant, in an offline mode in response to interaction of a payment object with a payment object reader associated with the POS device, wherein the offline mode prevents network connectivity between the POS device and a payment processing system;

detecting at least one communication device within a communication range of the payment object reader, wherein the communication range is based on a short-range communication protocol;

obtaining, by the POS device, at least one device characteristic corresponding to the communication device, wherein the at least one device characteristic is associated with an operational or physical feature of the communication device;

obtaining, by the POS device and from the payment processing system, risk data including previous payment transactions that satisfied decline criteria;

determining whether the at least one device characteristic corresponds to the risk data; and

at least partly in response to determining that the at least one device characteristic corresponds to the risk data, either declining the payment transaction or generating a notification for the merchant to attempt the transaction in an online mode.

2. The method of claim 1, wherein the at least one device characteristic is selected from a group of characteristics including timing parameters, radiated performance, wireless performance, quality of communication links, radio frequency response, transmission measurements, receiver measurements, and engineering tolerances.

3. The method of claim 1, wherein the at least one transaction activity includes at least one of:

(a) the payment object being introduced in proximity to the POS device;

(b) accessing a payment account associated with the buyer;

(c) retrieving a transaction history;

(d) approving authenticity of an action;

or (e) detecting the payment transaction.

4. The method of claim 1, further comprising:

establishing a communication channel between the POS device and the communication device on an RF communication protocol to obtain the at least one device characteristic;

generating a digital device fingerprint based at least in part on the at least one device characteristic and information related to the payment object;

determining whether the digital device fingerprint is substantially similar to an existing device fingerprint stored in the memory of the POS device, wherein the existing device fingerprint includes an association of a previously obtained device characteristic with information identifying a previously received payment object;

if the digital device fingerprint is substantially similar to the existing device fingerprint, declining the payment transaction in the offline mode on account of established presence of the communication device; and

if the digital device fingerprint is not substantially similar to the digital device fingerprint, processing the payment transaction in the offline mode.

5. The method of claim 4, further comprising generating a request to store the digital device fingerprint in the memory if the digital device fingerprint does not exist in the memory, wherein storing enables use of the communication device as an authentication instrument in subsequent payment transactions between the buyer and the merchant.

6. The method of claim 4, wherein establishing the communication channel between the POS device and the communication device includes:

detecting a list of available communication ports of the communication device; and

selecting a communication port from amongst the available communication ports for communicating with the communication device.

7. The method of claim 4, further comprising:

establishing one or more communication channels between a plurality of components within the POS device and the communication device through the selected communication port;

obtaining, by each of the plurality of components, the at least one device characteristic corresponding to the communication device;

generating, by each of the plurality of components, instances of the digital device fingerprint corresponding to the communication device based at least in part on the at least one device characteristic; and

comparing the instances of the digital device fingerprint to determine whether the combination and/or order of the instances of the digital device fingerprint match the risk data.

8. The method of claim 1, further comprises:

receiving a notification by an integrated circuit of the payment object, wherein the notification indicates a preliminary authorization of the payment transaction in the offline mode based on pre-stored criteria in the integrated circuit;

obtaining at least one payment identifier associated with the payment object;

generating profiles, wherein the profiles include a merchant profile, a transaction profile, a profile of the communication device, and a customer profile based on the payment identifier;

comparing the profiles with risk data; and

generating, based at least in part on the comparing, a final authorization of the payment transaction in the offline mode.

9. The method of claim 1, wherein authorizing further comprises:

detecting another communication device within the communication range of the payment system POS device;

obtaining, from the other communication device, a device characteristic corresponding to the other communication device;

generating a combined device fingerprint based at least in part on the at least one device characteristic obtained from the communication device and in part on the device characteristic obtained from the other communication device; and

declining the payment transaction based on the combined device fingerprint.

10. The method of claim 4, wherein if the digital device fingerprint is substantially similar to the existing device fingerprint, further determining whether the existing device fingerprint has associated thereto:

device characteristics from a cluster of communication devices besides the communication device, or

another device profile known to be fraudulent.

11. The method of claim 4, further comprising storing, the digital device fingerprint, within a secure enclave in the POS device, wherein the digital device fingerprint is retrieved from the secure enclave during the payment transaction involving the buyer.

12. The method of claim 1, further including:

receiving a request for fulfillment of the authorized payment transaction on a most proximate POS device in response to a determination of a current geographical location of the communication device and a proximate POS device based on a current geographical location of neighboring POS devices with respect to the communication device;

establishing one or more communication links with the communication device and through the POS device to send a confirmation message to the buyer, the confirmation message including a confirmation link; and

sending, to the payment processing system, an indication of buyer engagement with the confirmation link, wherein the buyer engagement includes an additional identifier selected from a group of a buyer name, a buyer address, a buyer email address, a buyer phone number, a social security number, a passcode set at the time of registration of the communication device, and a transaction detail, wherein the transfer of the money transfer amount is authorized in response to the received indication of the buyer engagement.

13. The method of claim 4, further comprising:

storing the digital device fingerprint in the payment processing system; and

using the digital device fingerprint along with the communication device to validate subsequent payment transactions if the current payment transaction is unsuccessful after authorization.

14. The method of claim 1, further comprising sending a request to detect the at least one device characteristic of the communication device for processing the payment transaction upon entry or exit into a geo-fence associated with the POS device.

15. The method of claim 14, further comprising creating one or more conditions to be applied during a final authorization of the payment transaction, wherein the conditions include at least one of:

a time period within which the communication device is authorized;

a particular merchant requesting the authorization;

a particular category of the merchant requesting the authorization;

a particular location from where the buyer is requesting the authorization;

a total value of the payment transaction;

a predefined limit of the authorization;

an identity of the buyer making the purchase;

or a particular type of goods or services corresponding to the payment transaction.

16. The method of claim 1, further comprising:

generating at least one bloom filter, the at least one bloom filter defining;

a plurality of hash functions; and

an array comprising multiple positions, decline criteria, and representing one or more identifiers of the payment object of the buyer that has previously conducted a transaction with the merchant;

receiving, while the POS device operates in an offline mode, an identifier of the payment instrument of the buyer;

mapping, using the plurality of hash functions, the identifier of the payment object or the communication device of the buyer to the array;

determining a decline criteria for the payment transaction based at least in part on a transaction history between the customer and the merchant;

determining whether the identifier of the payment object or the communication device of the buyer matches respective positions or decline criteria in the array;

responsive to determining a match between the payment object or the communication device of the first buyer and the respective positions in the array, presenting, on the display, an indication that the buyer has previously conducted a transaction with the merchant and an indication that the payment object of the buyer has previously been declined; and

responsive to determining that no match exists between the payment object or the communication device of the buyer and at least one position in the array, presenting, on the display, an indication that the buyer has not previously conducted a transaction with the merchant and processing the transaction between the merchant and the buyer.

17. The method of claim 1, wherein the POS device comprises at least one of a POS terminal or the payment object reader.

18. A point-of-sale (POS) device for facilitating an offline payment transaction, the POS device associated with a merchant, the POS device comprising:

a memory; and

a processor configured to execute instructions stored in the memory to perform operations comprising;

detecting one or more devices in a communication range of the POS device in response to a transaction activity, wherein the communication range is based on a wireless communication protocol;

measuring a device characteristic of a communication device associated with a payer, wherein the measuring is in response to a payment object being introduced in proximity to the POS device;

generating, based at least in part on the device characteristic and information associated with the payment object, a digital device fingerprint;

obtaining, from a payment processing system, risk data including data associated with previous payment transactions;

in an offline mode, comparing the digital device fingerprint to the risk data; and

at least partly in response to comparing the digital device fingerprint to the risk data, either declining a payment transaction previously authorized to transfer funds between the payer and the merchant, or generating a notification for the merchant to attempt the payment transaction in an online mode.

19. The POS device of claim 18, wherein the transaction activity includes at least one of:

(a) the payment object being introduced in proximity to the payment system;

(b) accessing a payment account;

(c) retrieving a transaction history;

(d) approving authenticity of an action;

or (e) detecting the payment transaction.

20. The POS device of claim 18, wherein the operations further comprise:

detecting at least one other communication device within the communication range of the POS device;

establishing a communication channel with the at least one other communication device;

obtaining, from the other communication device, at least one other device characteristic corresponding to the other communication device;

generating a combined digital device fingerprint based at least in part on the device characteristic obtained from the communication device and the at least one other device characteristic obtained from the at least one other communication device; and

authorizing, based at least in part on the combined digital device fingerprint, the payment transaction.

21. The POS device of claim 18, the operations further comprising:

associating one or more conditions with the digital device fingerprint, wherein the conditions include at least one of;

a time period within which the communication device is accessible to a payee as a valid authentication instrument;

a particular payee requesting the payment transaction;

a particular category of the merchant requesting the payment transaction;

a particular location from where the payer is requesting the payment transaction;

a predefined limit of the payment transaction;

an identity of the payer making the purchase;

or a particular type of goods or services corresponding to the payment transaction.

22. The POS device of claim 18, wherein the POS device comprises at least one of:

a cell phone, an electronic handheld device, a payment object reader, or a POS terminal.

23. The POS device of claim 18, the operations further comprising:

detecting a list of available communication ports of the communication device;

selecting, from amongst the available communication ports, a communication port for communicating with the communication device;

establishing, through the communication port, one or more communication channels between the communication device and a plurality of components within the POS device;

obtaining, by each of the plurality of components, the device characteristic of the communication device;

generating, by each of the plurality of components, instances of the digital device fingerprint corresponding to the communication device based at least in part on the device characteristic; and

corroborate the instances of the digital device fingerprint to determine a relationship of the communication device with the transaction activity.

24. The POS device of claim 18, wherein the device characteristic is selected from a group of characteristics including timing parameters, radiated performance, wireless performance, quality of communication links, radio frequency response, transmission measurements, receiver measurements, and engineering tolerances.

25. The POS device of claim 18, wherein the operations further comprise:

receiving a bloom filter from the payment processing system, the bloom filter containing at least one array corresponding to payment objects and communication devices used in previous transactions with the merchant;

receiving a first payment object identifier of a first payment object for satisfying a cost of a transaction between the payer and the merchant;

determining if a match exists between the first payment object identifier and the at least one array; and

responsive to determining that a match exists between the first payment object identifier and the at least one array, processing the payment transaction between the payer and the merchant.

26. The POS device of claim 25, wherein the bloom filter further comprises an array corresponding to a payer transaction history with the merchant, the payer transaction history comprising one or more of:

a number of transactions made by the payer in one or more previous transactions over a specified amount;

a frequency of payer transactions with the merchant;

or

a total value of previous transactions between the payer and the merchant.

27. The POS device of claim 25, wherein the bloom filter includes an array associated with fraudulent transactions, the bloom filter further configured to:

determine if a match exists between the first payment object identifier and the array associated with fraudulent transactions; and

responsive to determining that a match exists between the first payment object identifier and the array associated with fraudulent transactions, refrain from processing the transaction between the payer and the merchant.

28. The POS device of claim 18, wherein the operations further comprise:

processing transactions in the offline mode and in the online mode; and

sending information regarding transactions processed in the offline mode to the payment processing system after transitioning from the offline mode to the online mode, the payment processing system configured to update a payer profile and a payee profile in response to receiving the information.