Authorizing a payment transaction using seasoned data

• US 10,438,181 B2
• Filed: 07/22/2009
• Issued: 10/08/2019
• Est. Priority Date: 07/22/2009
• Status: Active Grant

• Current Assignee: Visa International Service Association (Visa, Inc.)
• Original Assignee: Visa International Service Association (Visa, Inc.)
• Inventors: Hammad, Ayman
• Primary Examiner(s): Ojiaku, Chikaodinaka
• Application Number:
  US12/507,745
• Publication Number:
  US 20110022517A1
• Time in Patent Office: 3,730 Days
• Field of Search: 705 44, 455405-406, 455410, 4554141, 709227
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 20/4018 using the card verification value [CVV] associated with the card
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02

Abstract

A system, apparatus, and method for expediting the authorization of an electronic payment transaction. Authorization of a transaction at a node of an authorization network is the result of inferring the trustworthiness of a customer to the transaction using data obtained from a different node of the authorization network. The authorization process is expedited by relying on the previous authentication decision of another node, where the previous decision may have been made based on a different payment device or different user inputs. The invention uses a decision made by a first node in the authorization network as a proxy for the authorization decision at a different node, thereby transferring the trustworthiness of a consumer, consumer'"'"'s device, payment device, or other aspect of the transaction from the first node to the second.

Claims

1. A method of processing payment transactions conducted by a consumer, comprising:

receiving a first authorization request message for a first payment transaction at a payment processing network or an issuer computer of a payment transaction authorization network from a first terminal in a first node comprising a first merchant processing system, the payment processing network or the issuer computer configured to perform a first payment transaction authorization operation for the first payment transaction, wherein the first authorization request message was generated by the first terminal, and wherein the first authorization request message passes through a first acquirer computer prior to being received at the payment processing network or the issuer computer;

identifying, by the payment processing network or the issuer computer, a trusted node indicator in the first authorization request message;

determining, by the payment processing network or the issuer computer based on the trusted node indicator in the first authorization request message, that the first node that transmitted the first authorization request message is a trusted node;

prior to authorizing the first payment transaction by the issuer computer, by-passing performing a consumer authentication by the payment processing network or the issuer computer based, at least in part, on the trusted node indicator, wherein the payment processing network or the issuer computer relies upon consumer authentication assertion of the trusted node;

updating, by the payment processing network or the issuer computer, a record associated with the consumer at a database of the payment processing network or the issuer computer to indicate that the consumer is an authenticated consumer based on the consumer authentication performed by the first node;

authorizing the first payment transaction at the payment processing network or the issuer computer without requiring, from the consumer, authentication data that would otherwise be requested in a payment transaction that was not processed by the trusted node, wherein the first payment transaction is authorized based on the first node comprising the first merchant processing system being the trusted node;

sending, from the payment processing network or the issuer computer to the first node, a first authorization response message indicating that the first payment transaction is authorized;

receiving a second authorization request message for a second payment transaction at the payment processing network or the issuer computer of the payment transaction authorization network from a second terminal in a second node comprising a second merchant processing system, the payment processing network or the issuer computer configured to perform a second payment transaction authorization operation for the second payment transaction, wherein the second authorization request message was generated by the second terminal, and wherein the second authorization request message passes through a second acquirer computer prior to being received at the payment processing network or the issuer computer;

analyzing, by the payment processing network or the issuer computer, the second authorization request message and determining, by absence of the trusted node indicator in the second authorization request message, that the second node is not trusted and that the second authorization request message was not transmitted by the trusted node;

sending, by the payment processing network or the issuer computer, a challenge message to a consumer device of the consumer requiring authentication data from the consumer to complete the second payment transaction regardless of a previous consumer authentication of the consumer by the second node;

receiving, by the payment processing network or the issuer computer, authentication data of the consumer from the consumer device;

authorizing, by the payment processing network or the issuer computer, the second payment transaction in response to receiving the authentication data of the consumer; and

sending, from the payment processing network or the issuer computer to the second node, a second authorization response message indicating that the second payment transaction is authorized, wherein the first payment transaction and the second payment transaction are different payment transactions.

2. The method of claim 1, wherein the consumer was previously authenticated by the first merchant processing system using a user ID and a PIN associated with the consumer, and wherein the first node authorizes the consumer upon recognizing the user ID and the PIN.

5. The method of claim 1 wherein the payment processing network or issuer computer provides authorization, and clearing and settlement services.

6. The method of claim 1 further comprising:

before receiving the first authorization request message, receiving an indication from the first node that a prior consumer associated with a prior payment transaction is seasoned; and

storing prior consumer information associated with the prior consumer in a database, wherein authorizing the first payment transaction at the payment processing network or the issuer computer uses the prior consumer information.

7. The method of claim 6, wherein the indication from the first node is included in a prior authorization request message received by the payment processing network or issuer computer.

8. The method of claim 6, wherein the first payment transaction is authorized if the consumer is same as the prior consumer.

9. The method of claim 8, wherein the prior consumer information comprises a prior shipping address, wherein consumer information associated with the consumer comprises a first shipping address, wherein the first payment transaction is authorized if the first shipping address is same as the prior shipping address.

10. The method of claim 8, wherein the prior payment transaction is conducted at a prior merchant, wherein the first payment transaction is conducted at a first merchant, wherein the prior merchant and the first merchant are different.

11. The method of claim 8, wherein the consumer is same as the prior consumer, wherein the prior payment transaction and the first payment transaction are conducted at a first merchant, wherein the prior consumer information comprises a prior shipping address, wherein consumer information associated with the first payment transaction comprises a first shipping address different from the prior shipping address, and wherein the consumer information stored for the consumer is updated to include the first shipping address.

3. An apparatus for processing payment transactions for a consumer, comprising:

a processor configured to execute a set of instructions;

a memory coupled to the processor and storing the set of instructions; and

the set of instructions executable by the processor to perform a method comprising;

receiving a first authorization request message for a first payment transaction from a first terminal in a first node comprising a first merchant processing system, wherein the apparatus is operated by a payment processing network or an issuer of a payment transaction authorization network, wherein the apparatus is configured to perform a first payment transaction authorization operation for the first payment transaction, wherein the first authorization request message was generated by the first terminal, and wherein the first authorization request message passes through a first acquirer computer prior to being received at the apparatus;

identifying a trusted node indicator in the first authorization request message;

determining, based on the trusted node indicator in the first authorization request message, that that the first node that transmitted the first authorization request message is a trusted node;

prior to authorizing the first payment transaction by the issuer, by-passing performing a consumer authentication by the payment processing network or the issuer based, at least in part, on the trusted node indicator, wherein the payment processing network or the issuer relies upon consumer authentication assertion of the trusted node;

updating a record associated with the consumer at a database of the payment processing network or the issuer to indicate that the consumer is an authenticated consumer based on the consumer authentication performed by the first node;

authorizing the first payment transaction at the payment processing network or issuer computer without requiring, from the consumer, authentication data that would otherwise be requested in a payment transaction that was not processed by the trusted node, wherein the first payment transaction is authorized based on the first node comprising the first merchant processing system being the trusted node;

sending, to the first node, a first authorization response message indicating that the first payment transaction is authorized;

receiving a second authorization request message for a second payment transaction from a second terminal in a second node comprising a second merchant processing system, wherein the apparatus is configured to perform a second payment transaction authorization operation for the second payment transaction, wherein the second authorization request message was generated by the second terminal, and wherein the second authorization request message passes through a second acquirer computer prior to being received at the apparatus;

analyzing the second authorization request message and determining, by absence of the trusted node indicator in the second authorization request message, that the second node is not trusted and that the second authorization request message was not transmitted by the trusted node;

sending a challenge message to a consumer device of the consumer requiring authentication data from the consumer to complete the second payment transaction regardless of a previous consumer authentication of the consumer by the second node;

receiving the authentication data of the consumer from the consumer device;

authorizing the second payment transaction in response to receiving the authentication data of the consumer; and

sending a second authorization response message to the second node indicating that the second payment transaction is authorized, wherein the first payment transaction and the second payment transaction are different payment transactions.

4. The apparatus of claim 3, wherein the consumer was previously authenticated by the first merchant processing system using a user ID and a PIN associated with the consumer, and wherein the first node authorizes the consumer upon recognizing the user ID and the PIN.

12. A method of processing payment transactions conducted by a consumer, comprising:

receiving an authorization request message for a payment transaction at a payment processing network or an issuer computer of a payment transaction authorization network from a terminal in a node comprising a merchant processing system, the payment processing network or the issuer computer configured to perform a payment transaction authorization operation for the payment transaction, wherein the authorization request message was generated by the terminal, and wherein the authorization request message passes through an acquirer computer prior to being received at the payment processing network or the issuer computer;

determining, by the payment processing network or the issuer computer, that the authorization request message was transmitted by the node and that the consumer was previously authenticated by the node;

analyzing, by the payment processing network or the issuer computer, the authorization request message to determine whether the authorization request message includes a trusted node indicator,

if the authorization request message includes the trusted node indicator indicating that the node that transmitted the authorization request message is trusted, then the payment transaction authorization operation performed by the payment processing network or the issuer computer includes;

authorizing the payment transaction at the payment processing network or the issuer computer without requiring, from the consumer, authentication data that would otherwise be requested in payment transactions not processed by a trusted node, wherein the payment transaction is authorized based on authentication assertion of the trusted node;

if the authorization request message does not include the trusted node indicator indicating that the node that transmitted the authorization request message is trusted, then the payment transaction authorization operation performed by the payment processing network or the issuer computer includes;

discarding authentication previously performed by the node;

sending a challenge message to a consumer device of the consumer requiring authentication data from the consumer to complete the payment transaction;

receiving authentication data of the consumer from the consumer device;

authorizing the payment transaction in response to receiving the authentication data of the consumer; and

sending, from the payment processing network or the issuer computer to the node, an authorization response message indicating that the payment transaction is authorized.