Local management of payment transactions

• US 10,692,081 B2
• Filed: 12/31/2010
• Issued: 06/23/2020
• Est. Priority Date: 12/31/2010
• Status: Active Grant

• Current Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Original Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Inventors: Burdett, Richard, Tanner, Colin
• Primary Examiner(s): Pollock, Gregory A
• Application Number:
  US12/982,951
• Publication Number:
  US 20120173423A1
• Time in Patent Office: 3,462 Days
• Field of Search: 705 35- 45, 705 21, 705 64
• CPC Class Codes: G06Q 20/3223 Realising banking transactions through M-devices
• 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

Abstract

It is determined whether a payment device has come into association with a special spending environment. If so, an authorization and guarantee for a predetermined amount of funds to cover multiple transactions within the special spending environment is requested from an issuer of the payment device. If successful, a balance, based on the predetermined amount of funds, is established on a local authorization platform that is associated with the special spending environment and that is separate from the issuer of the payment device. A series of purchases with the payment device, within the special spending environment, is tracked. For each given purchase of the series of purchases, the balance is adjusted to reflect the value of the given purchase. At some point, it is determined that the series of purchases is ended. An additional step includes, subsequent to determining that the series of purchases is ended, communicating with the issuer to request payment as to only that portion of the predetermined amount of funds actually spent in the series of purchases. A further step includes facilitating an immediate release of the guarantee as to that portion of the predetermined amount of funds not actually spent in the series of purchases. The immediate release is subsequent to determining that the series of purchases is ended. A special callback command to summon back funds is also contemplated.

Claims

1. A method comprising:

detecting a payment device in a special spending environment;

responsive to said detection, obtaining, by one or more processors of a local authorization platform, from an issuer of said payment device, an authorization and guarantee for a predetermined amount of funds spendable with said local authorization platform that is, one of, collocated in said special spending environment or linked to said special spending environment by a high-speed connection and that is separate from said issuer of said payment device and from said payment device, where a payment processing network and at least one acquiring entity are disposed between said local authorization platform and said issuer, and facilitate communication between said local authorization platform and said issuer;

establishing, by said one or more processors, a pre-authorized balance, based on said predetermined amount of funds, on said local authorization platform;

authorizing, by one or more processors, a series of purchases with said payment device within said special spending environment;

adjusting, by one or more processors, said pre-authorized balance to reflect a value of said series of purchases;

determining that said series of purchases is ended;

communicating, by said one or more processors, a payment request to said issuer, causing said issuer to perform clearing and settlement of an aggregation of said series of purchases authorized by said one or more processors for a portion of said predetermined amount of funds actually spent in said series of purchases subsequent to determining that said series of purchases is ended; and

facilitating, by said one or more processors, an immediate release, by said issuer, of said guarantee as to that portion of said predetermined amount of funds not actually spent in said series of purchases, said immediate release being subsequent to said determining that said series of purchases is ended,

where said determining that said series of purchases is ended comprises receiving, from said issuer, a special callback command reducing the pre-authorized balance on said local authorization platform where said special callback command is issued in response to a security issue.

2. The method of claim 1, where said detecting said payment device in said special spending environment comprises determining that said payment device has been presented for a purchase within said special spending environment.

3. The method of claim 1, where said detecting said payment device in said special spending environment comprises detecting use of said payment device to enter said special spending environment.

4. The method of claim 1, where said detecting said payment device in said special spending environment comprises locally issuing said payment device for use within said special spending environment.

5. The method of claim 1, where said determining that said series of purchases is ended comprises determining that said payment device is no longer in said special spending environment.

6. The method of claim 1, where said determining that said series of purchases is ended comprises determining that said payment device has not been used for a predetermined period of time.

7. The method of claim 1, where said determining that said series of purchases is ended comprises detecting attempted use of said payment device outside said special spending environment.

8. The method of claim 1, where said determining that said series of purchases is ended comprises determining that said special spending environment has closed.

9. The method of claim 1, where said special callback command is received from said issuer in response to at least a portion of said pre-authorized balance established on said local authorization platform being needed elsewhere.

10. The method of claim 9, further comprising said issuer receiving an authorization request which cannot receive an affirmative response without said at least portion of said pre-authorized balance established on said local authorization platform.

11. The method of claim 1, where said special spending environment comprises at least one of a stadium, a festival, a bar, a night club, a theme park, a holiday park, a shopping center, and a shopping mall.

12. The method of claim 1, where said special spending environment comprises at least one of a transit system and a group of cooperating transit systems.

13. The method of claim 1, further comprising specifying said predetermined amount of funds based upon historical usage data.

14. The method of claim 1, further comprising, responsive to predetermined diminution of said pre-authorized balance, requesting, from said issuer of said payment device, a further authorization and guarantee for a further predetermined amount of funds that covers additional transactions within said special spending environment.

15. The method of claim 1, further comprising repeating all of said steps for an additional payment device.

16. The method of claim 1, further comprising:

maintaining a hot list of account numbers on said local authorization platform; and

allowing said series of purchases only upon a successful check against said hot list.

17. The method of claim 1, further comprising making a receipt for said series of purchases available to a holder of said payment device, said receipt having individual transaction level detail.

18. The method of claim 17, where said receipt is not available from a payment terminal within said special spending environment.

19. The method of claim 18, where said receipt is made available at least one of a kiosk, a special terminal, a customer service desk, and a web site.

20. The method of claim 1, further comprising:

buffering issuer scripting commands in a memory of said local authorization platform; and

delivering said issuer scripting commands, buffered in said memory, to said payment device upon presentation of said payment device to a payment terminal in said special spending environment.

21. The method of claim 1, where said authorization and guarantee is requested from said issuer by sending a unique transaction code over said payment processing network.

22. The method of claim 1, further comprising said issuer placing a hold against said predetermined amount of funds in response to said request for said authorization and guarantee.

23. The method of claim 22, further comprising said issuer:

effectuating said payment as to only that portion of said predetermined amount of funds actually spent in said series of purchases; and

immediately releasing said hold as to that portion of said predetermined amount of funds not actually spent in said series of purchases.

24. The method of claim 1, where said immediate release of said guarantee is in response to an explicit communication.

25. The method of claim 1, where said immediate release of said guarantee is in response to said request for payment, based on a prior agreement.

26. The method of claim 1, further comprising requiring periodic entry of a personal identification number that permits said series of purchases to continue.

27. The method of claim 26, where said requiring comprises requesting entry at a location other than a payment terminal.

28. The method of claim 1, further comprising:

receiving an indication that said payment device has been at least one of lost and stolen; and

responsive to said indication, using said local authorization platform to carry out at least one of;

requiring entry of said personal identification number before further use of said payment device within said special spending environment; and

refusing further use of said payment device within said special spending environment.

29. The method of claim 1, further comprising determining, with said local authorization platform, that some putative purchases should not be included in said series of purchases for which said pre-authorized balance is adjusted, but should rather be subject to a conventional authorization process with said issuer.

30. A method comprising:

detecting a payment device in a special spending environment;

responsive to said detection, obtaining, by one or more processors of a local authorization platform, from an issuer of said payment device, an authorization and guarantee for a predetermined amount of funds spendable with said local authorization platform that is, one of, collocated in said special spending environment or linked to said special spending environment by a high-speed connection and that is separate from said issuer of said payment device;

establishing, by said one or more processors, a pre-authorized balance, based on said predetermined amount of funds, on said local authorization platform;

authorizing, by one or more processors, a series of purchases with said payment device within said special spending environment;

adjusting, by one or more processors, said pre-authorized balance to reflect a value of said series of purchases;

determining that said series of purchases is ended;

communicating, by said one or more processors, a payment request to said issuer for clearing and settlement of an aggregation of said series of purchases authorized by said one or more processors for a portion of said predetermined amount of funds actually spent in said series of purchases subsequent to determining that said series of purchases is ended; and

facilitating, by said one or more processors, an immediate release of said guarantee as to that portion of said predetermined amount of funds not actually spent in said series of purchases, said immediate release being subsequent to said determining that said series of purchases is ended,

where said determining that said series of purchases is ended comprises receiving, from said issuer, a special callback command reducing the pre-authorized balance on said local authorization platform,

where said special callback command is issued in response to a security issue.