System and method for single event authorization control of transactions

• US 20040210531A1
• Filed: 10/23/2002
• Published: 10/21/2004
• Est. Priority Date: 02/11/2002
• Status: Active Grant

• Current Assignee: Total Systems Services Incorporated
• Original Assignee: Total System Services Incorporated (Global Payments Incorporated)
• Inventors: Crye, Hank, Watson, Johnny Ray Jr., Helms, Keith, Barron, Mitch
• Granted Patent: US 7,509,289 B2
• Time in Patent Office: Days
• US Class Current: 705/44
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/1085 involving automatic teller machines [ATMs]
• 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 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

Controlling the authorization of financial transactions, such as credit card transactions. Financial institutions and businesses can establish accounts for employees that have an authorization process that augments the normal authorization process, where this augmented authorization process can result in approving transactions that otherwise exceed the transaction limitations established for the account. A single event authorization control (SEAC) process can be completed in response to determining that a financial services transaction undergoing a conventional authorization process qualifies for the SEAC process. To complete the process, a SEAC data record containing parameter values that most closely match the parameter values associated with the authorization request is selected and the applicable SEAC action contained in the data record, e.g., decline override, funds encumbrance, or budgetary exception, is performed. Then, a decision regarding authorization of the transaction is generated.

Claims

1. A method for processing an authorization request associated with a financial service transaction, comprising the steps of:

completing a conventional authorization process for the financial service transaction by processing an authorization data record comprising transaction parameters in response to receiving the authorization request; and

completing a single event authorization control (SEAC) process for the authorization for the financial service transaction in response to determining that the authorization request is qualified for the SEAC process, wherein the SEAC process comprises the steps;

selecting one of a plurality of SEAC data records associated with the authorization request that most closely matches the transaction parameters of the authorization data record, each SEAC data record comprising at least one SEAC action comprising one of decline override, budgetary exception, and funds encumbrance;

completing each SEAC action for the selected SEAC data record that can be taken for the authorization request; and

generating a decision regarding authorization for the financial service transaction in response to completing each SEAC action for the selected SEAC data record.

2. The method of claim 1, wherein each authorization data record comprises at least an account number, a monetary amount, and one of a plurality of merchant codes.

3. The method in claim 1 where the step of determining that the authorization request is qualified for the SEAC process comprises the steps of:

selecting the authorization data record for a merchant category code group corresponding to a merchant category code for the financial service transaction; and

identifying whether the authorization data record comprises the identifier specifying the SEAC authorization process authorization data record.

4. The method in claim 1 further comprising the step of establishing the SEAC data record by completing the steps of:

determining if funds need to be encumbered;

if funds do need to be encumbered, generating one of the SEAC data records where a SEAC action for funds encumbrance is contained;

sending an authorization request to an authorization platform to encumber funds; and

if funds do not need to be encumbered, generating one of the SEAC data records comprising at least an account number, at least one of a plurality of merchant codes, and at least one SEAC action.

5. The method in claim 1 where the SEAC data record comprises a client identifier field, an account number field, a SEAC amount field, a maximum amount field, a minimum amount field, a merchant category code field, a budgetary exception flag, a funds encumbrance flag, and a decline override type field.

6. The method in claim 1 where the step of selecting one of a plurality of SEAC data record that most closely matches the transaction parameters comprises the steps of:

(a) searching a SEAC records database for SEAC records associated with an account number associated in the authorization data record;

(b) selecting one of the SEAC records that is associated with the account number;

(c) determining if the parameter values contained in the selected SEAC record match values of the transaction parameters in the authorization data record;

(d) repeating steps (b)-(c) for all SEAC records associated with the account number; and

(e) determining which of the SEAC data records that matched values of the transaction parameters in step (c) has a transaction amount closest to the transaction amount in the authorization data record.

7. A method for processing an authorization request associated with a financial service transaction, comprising the steps of:

completing a conventional authorization process for the financial service transaction by processing an authorization data record in response to receiving the authorization request; and

in response to recognizing that the financial service transaction further qualifies for a single event authorization control (SEAC) process, completing at least one SEAC action comprising one of decline override, budgetary exception, and funds encumbrance and generating a decision regarding authorization for the financial service transaction based on each completed SEAC action.

8. The method in claim 7 where the step of recognizing that the financial service transaction further qualifies for a SEAC authorization comprises the steps of:

selecting the authorization data record for a merchant category code group corresponding to a merchant category code for the financial service transaction; and

identifying whether the authorization data record comprises an identifier specifying the SEAC authorization for the authorization data record.

9. The method in claim 7 wherein the SEAC process comprises the steps of:

selecting one of a plurality of SEAC data records associated with the authorization request that most closely matches the transaction parameters of the authorization data record, each SEAC data record comprising at least one SEAC action comprising one of decline override, budgetary exception, and funds encumbrance;

completing each SEAC action for the selected SEAC data record that can be taken for the authorization request; and

generating the decision regarding authorization for the financial service transaction in response to completing each SEAC action for the selected SEAC data record.

10. A computer implemented method for processing an authorization request associated with a financial service transaction, comprising the steps of:

completing a conventional authorization process for the financial service transaction by processing an authorization data record generating an initial authorization decision in response to receiving the authorization request; and

in response to recognizing that the financial service transaction further qualifies for authorization exception handling, completing at least one single event authorization control (SEAC) action and generating a decision regarding authorization for the financial service transaction by applying each completed SEAC action to the initial authorization decision.

11. The method in claim 10 where the step of recognizing that the financial service transaction further qualifies for authorization exception handling comprises the steps of:

selecting the authorization data record for a merchant category code group corresponding to a merchant category code for the financial service transaction; and

identifying whether the authorization data record comprises an identifier specifying the SEAC authorization for the authorization data record.

12. The method in claim 10 wherein authorization exception handling comprises the steps of:

selecting one of a plurality of SEAC data records associated with the authorization request that most closely matches the transaction parameters of the authorization data record, each SEAC data record comprising at least one SEAC action comprising one of decline override, budgetary exception, and funds encumbrance;

completing each SEAC action for the selected SEAC data record that can be taken for the authorization request; and

generating the decision regarding authorization for the financial service transaction in response to applying each SEAC action to the initial authorization decision.

13. A method for processing an authorization request associated with a financial service transaction, comprising the steps of:

receiving an authorization data record comprising a plurality of transaction parameters associated with the authorization request;

determining if the authorization request is qualified for processing by a single event action control (SEAC) authorization process by identifying whether the authorization data record comprises an identifier specifying the SEAC authorization process;

if the authorization request is qualified to proceed through the SEAC authorization process, receiving at least one SEAC data record comprising at least one SEAC action based on the authorization data record associated with the authorization request;

selecting the SEAC data record that matches the transaction parameters and evaluating whether any SEAC action in the selected SEAC data record can be taken for the authorization request; and

if so, then generating an authorization response for the financial service transaction by performing all SEAC actions in the selected SEAC data record that can be taken for the authorization request.

14. The method of claim 13, wherein each authorization data record comprises at least an account number, a monetary amount, and one of a plurality of merchant codes.

15. The method in claim 13 where the step of determining if the authorization request is qualified for processing by the SEAC authorization process comprises the steps of:

selecting the authorization data record for a merchant category code group corresponding to a merchant category code for the financial service transaction; and

identifying whether the authorization data record comprises an identifier specifying the SEAC authorization process authorization data record.

16. The method in claim 13 further comprising the step of establishing the SEAC data record by completing the steps of:

determining if funds need to be encumbered;

if funds do need to be encumbered, generating one of the SEAC data records where a SEAC action for funds encumbrance is contained;

sending an authorization request to the authorization platform to encumber funds; and

if funds do not need to be encumbered, generating one of the SEAC data records comprising at least an account number, at least one of a plurality of merchant category codes, and at least one SEAC action.

17. The method in claim 13 where the SEAC data record comprises a client identifier field, an account number field, a SEAC amount field, a maximum amount field, a minimum amount field, a merchant category code field, a budgetary exception flag, a funds encumbrance flag, and a decline override type field.

18. The method in claim 13 where the step of selecting the SEAC data record that most closely matches the transaction parameters comprises the steps of:

(a) searching a SEAC records database for SEAC records associated with an account number associated in the authorization data record;

(b) selecting one of the SEAC records that is associated with the account number;

(c) determining if the parameter values contained in the selected SEAC record match values of the transaction parameters in the authorization data record;

(d) repeating steps (b)-(c) for all SEAC records determined to be associated with the account number; and

(e) determining which of the SEAC data records that matched values of the transaction parameters in step (c) has a transaction amount closest to the transaction amount in the authorization data record.

19. The method of claim 13 where the step of evaluating whether any SEAC action in the matched selected SEAC data record can be taken for the authorization request comprises the steps of:

determining if the matched selected SEAC record includes any SEAC action that can act on the transaction; and

determining which of a plurality of SEAC actions are present in the SEAC record.

20. The method of claim 13, where the SEAC actions comprise decline override, budgetary exception, and funds encumbrance.

21. The method of claim 20, where the step of generating an authorization response by performing all SEAC actions in the selected SEAC data record that can be taken for the authorization request comprises the steps of:

determining if decline override is to be performed;

if decline override is to be performed, changing a disapproval authorization decision to an approval authorization decision;

determining if funds encumbrance is to be performed;

if funds encumbrance is to be performed, releasing funds previously encumbered;

determining if budgetary exception is to be performed;

if budgetary exception is to be performed, determining if the status of the authorization decision is approve; and

if the status of the authorization decision is approve, bypassing the amount and number velocity accumulations.

22. A system for processing an authorization request associated with a

financial service transaction, comprising

a host computer, operable to maintain a plurality of databases comprising financial service transaction authorization data;

and

the authorization platform, coupled to the host computer and a telecommunications system, operable to receive the authorization request over the telecommunications system and to accept a loading of the databases from the host computer,

the authorization platform operative to generate an initial authorization decision by completing a conventional transaction authorization based on the financial service transaction authorization data in response to receiving the authorization request,

the authorization platform further operative to perform a single event action control (SEAC) authorization in the event that the authorization request qualifies for SEAC authorization handling by completing at least one SEAC action based on the financial service transaction authorization data and generating a decision regarding authorization for the financial service transaction by applying each completed SEAC action to the initial authorization decision.

23. The system of claim 22 where the plurality of databases comprise a SEAC records database and an authorization database.