Authentication for online money transfers

• US 20040230527A1
• Filed: 04/26/2004
• Published: 11/18/2004
• Est. Priority Date: 04/29/2003
• Status: Active Grant

• Current Assignee: Western Union
• Original Assignee: First Data Corporation (Fiserv Incorporated)
• Inventors: Hansen, Scott, Fry-Sanchez, Kirsten S., Cortez, Ed N., Wieth, Jennifer, Joyner, Debra, Hosmer, Kim C., Baumgart, Mark D.
• Granted Patent: US 8,082,210 B2
• Time in Patent Office: Days
• US Class Current: 705/40
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/403 Solvency checks

Abstract

According to the invention, a method for processing a transaction where the transaction is initiated by a payor online, but paid to a payee in-person, is disclosed. In one step, payor information is accepted at a location that located across a wide area network from the payor. Transaction information and payment source information is also accepted at the location. The transaction information includes an amount and a payee identifier and the payment source information includes account details associated with an account of the payor at a money handler. A risk related to a likelihood that the transaction will complete successfully is evaluated. Validating that the payment source information is associated with the payor is manually performed if the risk is excessive. The risk can generally be reduced by the manual validation. The money handler is billed for at least the amount. It is determined if the money handler settles the amount. Historical information on the transaction is stored.

Claims

1. A method for processing a transaction where the transaction is initiated by a payor online, but paid to a payee in-person, the method comprising steps of:

accepting payor information at a location, wherein the payor is located across a wide area network from the location;

accepting transaction information at the location, wherein the transaction information includes an amount and a payee identifier;

accepting payment source information at the location, wherein the payment source information includes account details associated with an account of the payor at a money handler;

evaluating a risk related to a likelihood that the transaction will complete successfully;

manually validating through human interaction with the payor that the payment source information is associated with the payor based, at least in part, on the evaluating step, whereby the risk is reduced by the manual validation;

billing the money handler for at least the amount;

determining if the money handler settles the amount; and

storing historical information on the transaction.

2. The method for processing the transaction where the transaction is initiated by the payor online, but paid to the payee in-person as recited in claim 1, further comprising a step of checking the transaction information against a usage limit.

3. The method for processing the transaction where the transaction is initiated by the payor online, but paid to the payee in-person as recited in claim 1, wherein the evaluating step comprises steps of:

passing at least some of the payor information, the transaction information and the payment source information to a second location;

producing a risk score related to the risk; and

evaluating the risk score to determine if the transaction should be completed, should be canceled or should be manually validated.

4. The method for processing the transaction where the transaction is initiated by the payor online, but paid to the payee in-person as recited in claim 1, further comprising a step of verifying at least some of the payment source information.

5. The method for processing the transaction where the transaction is initiated by the payor online, but paid to the payee in-person as recited in claim 1, wherein the three accepting steps are performed with a web site associated with the location.

6. The method for processing the transaction where the transaction is initiated by the payor online, but paid to the payee in-person as recited in claim 1, wherein the historical information comprises at least two of the risk, a settlement result, the payor information, the transaction information, and the source information.

7. The method for processing the transaction where the transaction is initiated by the payor online, but paid to the payee in-person as recited in claim 1, wherein the evaluating step further comprises steps of:

evaluating a first risk that the amount will be successfully settled; and

evaluating a second risk that the payment source information is not associated with the payor.

8. The method for processing the transaction where the transaction is initiated by the payor online, but paid to the payee in-person as recited in claim 7, wherein the manually validating step is performed when one or more of the following conditions are met:

the first risk exceeds a first risk threshold;

the second risk exceeds a second risk threshold;

the payment source information cannot be satisfactorily authenticated;

the payor has exceeded a predetermined number of transactions for a first predetermined time period;

the amount exceeds a threshold amount; and

the payor has exceeded an aggregate amount for a second predetermined time period.

9. The method for processing the transaction where the transaction is initiated by the payor online, but paid to the payee in-person as recited in claim 1, wherein the evaluating step comprises a step of evaluating the risk of the amount being successfully settled from historical information gathered from past transactions.

10. The method for processing the transaction where the transaction is initiated by the payor online, but paid to the payee in-person as recited in claim 1, wherein the first-listed checking step comprises one or more of the following steps:

checking if the payor has exceeded a predetermined number of transactions during a first predetermined time period;

checking if the amount exceeds a threshold amount; and

checking if the payor has exceeded an aggregate amount during a second predetermined time period, wherein the first and second predetermined time periods may be the same or different.

11. The method for processing the transaction where the transaction is initiated by the payor online, but paid to the payee in-person as recited in claim 1, wherein the billing step comprises billing the money handler for a sum of the amount and a transaction fee.

12. The method for processing the transaction where the transaction is initiated by the payor online, but paid to the payee in-person as recited in claim 1, further comprising a step of reporting the historical information away from the location.

13. The method for processing the transaction where the transaction is initiated by the payor online, but paid to the payee in-person as recited in claim 1, wherein the payee identifier is chosen from the group consisting of:

a name, an e-mail address, a test phrase, an account number, and an identification number.

14. The method for processing the transaction where the transaction is initiated by the payor online, but paid to the payee in-person as recited in claim 1, wherein the payment source information comprises two or more of the following:

an account number, a bank routing number, an account holder name, a card issuer phone number, an account billing address, and a CVV2 code.

15. The method for processing the transaction where the transaction is initiated by the payor online, but paid to the payee in-person as recited in claim 1, wherein the money handler is chosen from a group consisting of:

a debit card organization, a credit card organization, a bank, and a retail location.

16. A computer-readable medium having computer-executable instructions for performing the computer-implementable method for processing the transaction where the transaction is initiated by the payor online, but paid to the payee in-person of claim 1.

17. A method for processing a transaction where the transaction is initiated remotely, but paid to a payee in-person, the method comprising steps of:

accepting payor information at a location, wherein the payor is located across a wide area network from the location;

accepting transaction information at the location, wherein the transaction information includes an amount and a payee identifier;

accepting payment source information at the location, wherein the payment source information includes account details associated with an account of the payor at a money handler;

verifying at least some of the payment source information;

evaluating a risk related to a likelihood that the transaction will complete successfully,

manually validating that the payment source information is associated with the payor where the risk is excessive, whereby the risk is reduced by the manual validation; and

billing the money handler for at least the amount.

18. The method for processing the transaction where the transaction is initiated remotely, but paid to the payee in-person as recited in claim 17, further comprising a step of determining if the money handler settles the amount.

19. The method for processing the transaction where the transaction is initiated remotely, but paid to the payee in-person as recited in claim 17, wherein the evaluating step comprises steps of:

evaluating the risk based upon first information; and

evaluating the risk based upon second information at least partially different from the first information.

20. The method for processing the transaction where the transaction is initiated remotely, but paid to the payee in-person as recited in claim 17, further comprising a step of storing historical information on the transaction.

21. The method for processing the transaction where the transaction is initiated remotely, but paid to the payee in-person as recited in claim 17, further comprising a step of checking the transaction information against a usage limit.

22. The method for processing the transaction where the transaction is initiated remotely, but paid to the payee in-person as recited in claim 21, wherein the checking step comprises one or more of the following steps:

checking if the payor has exceeded a predetermined number of transactions during a first predetermined time period;

checking if the amount exceeds a threshold amount; and

checking if the payor has exceeded an aggregate amount during a second predetermined time period, wherein the first and second predetermined time periods may be the same or different.

23. The method for processing the transaction where the transaction is initiated remotely, but paid to the payee in-person as recited in claim 17, wherein the first-listed evaluating step comprises steps of:

passing at least some of the payor information, the transaction information and the payment source information to a second location;

producing a risk score related to the risk; and

evaluating the risk score to determine if the transaction should be completed, should be canceled or should be manually validated.

24. The method for processing the transaction where the transaction is initiated remotely, but paid to the payee in-person as recited in claim 17, wherein the first-listed evaluating step further comprises steps of:

evaluating a first risk that the amount will be successfully settled based upon the first information; and

evaluating a second risk that the payment source information is not associated with the payor based upon the second information.

25. The method for processing the transaction where the transaction is initiated remotely, but paid to the payee in-person as recited in claim 17, wherein the first-listed evaluating step comprises a step of evaluating the risk of the amount being successfully settled from historical information gathered from past transactions.

26. The method for processing the transaction where the transaction is initiated remotely, but paid to the payee in-person as recited in claim 17, wherein the manually validating step is performed when one or more of the following conditions are met:

the first risk exceeds a first risk threshold;

the second risk exceeds a second risk threshold;

the payor has exceeded a predetermined number of transactions for a first predetermined time period;

the amount exceeds a threshold amount; and

the payor has exceeded an aggregate amount for a second predetermined time period.

27. A computer-readable medium having computer-executable instructions for performing the computer-implementable method for processing the transaction where the transaction is initiated remotely, but paid to the payee in-person as recited of claim 17.

28. A method for processing a transaction that transfers money or its equivalents from a payor to a payee, the method comprising steps of:

accepting payor information from the payor, wherein the payor is located across a wide area network;

accepting transaction information, wherein the transaction information includes an amount and a payee identifier; and

accepting payment source information, wherein the payment source information includes account details associated with an account of the payor at a money handler;

verifying at least some of the payment source information;

evaluating a risk related to a likelihood that the transaction will complete successfully;

checking the transaction information against a usage limit;

manually validating that the payment source information is associated with the payor based upon at least one of an outcome of the checking step and the first-listed evaluating step;

billing the money handler for at least the amount; and

transferring the money to the payee.

29. The method for processing the transaction that transfers money or its equivalents from the payor to the payee as recited in claim 28, further comprising a step of determining if the money handler settles the amount.

30. The method for processing the transaction that transfers money or its equivalents from the payor to the payee as recited in claim 28, further comprising a step of storing historical information on the transaction.

31. The method for processing the transaction that transfers money or its equivalents from the payor to the payee as recited in claim 28, wherein the first-listed evaluating step comprises steps of:

passing at least some of the payor information, the transaction information and the payment source information to a second location away from a first location that stores information from the three accepting steps;

producing a risk score related to the risk; and

evaluating the risk score to determine if the transaction should be completed, should be canceled or should be manually validated.

32. The method for processing the transaction that transfers money or its equivalents from the payor to the payee as recited in claim 28, wherein the first-listed evaluating step further comprises steps of:

evaluating a first risk that the amount will be successfully settled based upon the first information; and

evaluating a second risk that the payment source information is not associated with the payor based upon the second information.

33. The method for processing the transaction that transfers money or its equivalents from the payor to the payee as recited in claim 28, wherein the first-listed evaluating step comprises a step of evaluating the risk of the amount being successfully settled from historical information gathered from past transactions.

34. The method for processing the transaction that transfers money or its equivalents from the payor to the payee as recited in claim 28, wherein the checking step comprises one or more of the following steps:

checking if the payor has exceeded a predetermined number of transactions during a first predetermined time period;

checking if the amount exceeds a threshold amount; and

checking if the payor has exceeded an aggregate amount during a second predetermined time period, wherein the first and second predetermined time periods may be the same or different.

35. The method for processing the transaction that transfers money or its equivalents from the payor to the payee as recited in claim 28, wherein the manually validating step is performed when one or more of the following conditions are met:

the first risk exceeds a first risk threshold;

the second risk exceeds a second risk threshold;

the payor has exceeded a predetermined number of transactions for a first predetermined time period;

the amount exceeds a threshold amount; and

the payor has exceeded an aggregate amount for a second predetermined time period.

36. A computer-readable medium having computer-executable instructions for performing the computer-implementable method for processing the transaction that transfers money or its equivalents from the payor to the payee as recited of claim 28.

37. A method and/or apparatus for processing a transaction as described in the specification and figures.