Systems for processing transponder-based transactions

• US 20030187796A1
• Filed: 06/26/2002
• Published: 10/02/2003
• Est. Priority Date: 03/26/2002
• Status: Active Grant

• Current Assignee: First Data Corporation (Fiserv Incorporated), Western Union
• Original Assignee: First Data Corporation (Fiserv Incorporated), Western Union
• Inventors: Mollett, Cassandra, Swift, Amy, Tidwell, Lisa
• Granted Patent: US 7,925,576 B2
• Time in Patent Office: Days
• US Class Current: 705/45
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/042 characterized in that the payment protocol involves at least one cheque
• CPC Class Codes: G06Q 20/0425 the cheque being electronic only
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• CPC Class Codes: G06Q 20/32 using wireless devices
• CPC Class Codes: G06Q 20/3278 RFID or NFC payments by means of M-devices
• CPC Class Codes: G06Q 20/403 Solvency checks
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G07F 7/04 by paper currency

Abstract

The present invention includes transaction processing systems that process transactions from merchant systems designed to convert the presentation of a transponder device into electronic debits from a checking account. The transaction processing systems also can provide risk assessment, validation or user data and/or MICR data, and/or transaction guarantee services.

Claims

1. A transaction processor for processing transactions from transponder-based payment systems, the transaction processor comprising one or more computing devices accessing historical data and MICR conversion data to process transactions from merchant payment systems accepting information from transponders as payment for goods or services, wherein the information is associated with MICR data that can be used to uniquely identify a checking account.

2. The transaction processor of claim 1, wherein processing the transactions includes determining a risk assessment for each transaction.

3. The transaction processor of claim 2, wherein the risk assessment includes searching negative data matching user data provided in the transaction.

4. The transaction processor of claim 2, wherein the risk assessment includes generating a risk score.

5. The transaction processor of claim 4, wherein the risk score is reported to the merchant payment systems associated with the transaction.

6. The transaction processor of claim 4, wherein the risk score is compared to preselected parameters and a result thereof is reported to the merchant payment systems associated with the transaction.

7. The transaction processor of claim 6, wherein the preselected parameters are chosen by the merchant payment systems.

8. The transaction processor of claim 1, wherein the transactions include validation.

9. The transaction processor of claim 8, wherein validation includes submitting offsetting debits and credits to a clearinghouse system.

10. The transaction processor of claim 8, wherein validation includes submitting at least one of a debit and a credit to a clearinghouse system.

11. The transaction processor of claim 1, wherein the transactions include settlement.

12. The transaction processor of claim 1, wherein the one or more computing devices further report results of the transactions to the merchant payment systems.

13. The transaction processor of claim 1, wherein a risk is associated with each transaction.

14. The transaction processor of claim 13, wherein information related to the risk is reported to the appropriate merchant payment system and a confirmation of the corresponding transaction is received before validation or settlement thereof.

15. A transaction processor comprising a server system which converts MICR data into electronic debits to be settled against a checking account of a user through a clearinghouse system, wherein the MICR data was uniquely associated with a device identifier corresponding to a transponder that the user presented as payment for goods or services being purchased.

16. The transaction processor or claim 15, wherein the server system processes transaction requests including user data and the MICR data.

17. The transaction processor or claim 16, wherein the server system performs one or more risk assessments on at least some of the user data.

18. The transaction processor or claim 16, wherein the server system performs one or more validations on at least some of the user data.

19. The transaction processor or claim 16, wherein the server system performs one or more validations on at least some of the MICR data.

20. A method of processing purchase transactions of a user who presents a transponder associated with a checking account as payment for goods or services, the method comprising:

converting MICR data from a transaction request into at least a portion of an electronic debit when a user presents a transponder as payment for goods or services, wherein the MICR data corresponds to a paper check from a checking account and is uniquely associated with identifying information corresponding to the transponder;

submitting the electronic debit to the clearinghouse system; and

receiving confirmation indicating whether the electronic debit was properly settled.

21. A method of processing transponder-initiated transactions, the method comprising:

receiving a transponder-initiated transaction including an amount and MICR data associated with a checking account;

formatting an electronic debit based on the MICR data and the amount; and

submitting the electronic debit to a clearinghouse system.

22. The method of claim 21, further comprising assessing a risk measurement associated with authorizing the transponder-initiated transaction.

23. The method of claim 21, further comprising validating some or all of user data provided in the transponder-initiated transaction.

24. The method of claim 21, further comprising guaranteeing the transponder-initiated transaction.

25. A merchant system comprising:

means for receiving a transaction request when a transponder is presented as payment of a purchase price for goods or services being purchased, wherein the transaction request includes at least MICR data corresponding to a paper check associated with a checking account, and the purchase price;

means for converting the MICR data into an electronic debit to be submitted for settlement to a clearinghouse system; and

means for receiving reports of the settlement.