GPS database to manage risk for financial transactions

• US 20050137975A1
• Filed: 12/23/2003
• Published: 06/23/2005
• Est. Priority Date: 12/23/2003
• Status: Active Grant

• Current Assignee: First Data Corporation (Fiserv Incorporated), Western Union
• Original Assignee: First Data Corporation (Fiserv Incorporated), Western Union
• Inventors: Williams, Charles
• Granted Patent: US 7,743,981 B2
• Time in Patent Office: Days
• US Class Current: 705/40
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

The present teachings describe a system for processing financial transactions. In one embodiment, the system includes a remote terminal adapted to identify the location of financial transactions via global positioning system (GPS) information such that the remote terminal acquires transaction information from a user and transmits a first signal indicative of transaction information and GPS information. In addition, the system includes an authorizing host adapted to receive the first signal transmitted by the remote terminal such that the authorizing host evaluates the risk associated with financial transactions based, at least in part, on the GPS information so as to determine whether to accept or decline the financial transaction. The present teachings further describe devices and methods of acquiring GPS information for the purpose of managing risk for financial transactions.

Claims

1. A system for assessing the risk of accepting proffered promissory payments being made at a plurality of merchants equipped with point of sale devices that transmit information about the proffered promissory payment wherein the point of sale devices further determine their location and transmit the location information, the system comprising:

a transceiver that communicates with the plurality of point of sale devices; and

a risk assessment component that evaluates the financial information about the proffered payment and the location information of the point of sale device, wherein the risk assessment component determines the risk of accepting the proffered payment based on the financial information and the location information of the point of sale device and provides an indication of whether to accept the proffered payment to the point of sale device via the transceiver.

2. The system of claim 1, wherein the risk assessment component receives location information in the form of GPS coordinates determined by the point of sale device and wherein the risk assessment component verifies whether the GPS coordinates are within at least one pre-approved geographic region for the point of sale device.

3. The system of claim 2, wherein the risk assessment component stores a plurality of pre-approved geographic regions for the point of sale device to facilitate businesses that travel between locations and wherein the risk assessment component utilizes a pre-approved risk scoring model when the GPS coordinates indicate that the point of sale device is within one of the plurality of pre-approved areas.

4. The system of claim 3, wherein the risk assessment component determines a new risk scoring model when the GPS coordinates indicate that the point of sale device is not within a pre-approved geographic location for the point of sale device.

5. The system of claim 4, wherein the new risk scoring model is developed based at least in part upon payment history of other proffered payments in the non-pre-approved area.

6. The system of claim 2, wherein the risk assessment component categorizes regions based upon risk by zip codes.

7. The system of claim 6, wherein the risk assessment component includes a database that interrelates GPS coordinates to zip codes such that the risk assessment component can assess the risk of accepting a proffered payment in any area by determining which zip code the GPS coordinates fall within and then accessing the risk factors for that zip code.

8. The system of claim 1, wherein the risk assessment component evaluates the financial information to determine the risk of accepting a proffered payment by evaluating the location information, the merchant information, the transaction type, the payment history of the individual offering the proffered payment and the payment amount.

9. A system for assessing the risk of accepting proffered promissory payments being made at a plurality of merchants equipped with point of sale devices that transmit information about the proffered promissory payment wherein the point of sale devices further determine their GPS location and transmit the GPS information, the system comprising:

a transceiver that communicates with the plurality of point of sale devices; and

a risk assessment component that evaluates the financial information about the proffered payment and the GPS information of the point of sale device, wherein the risk assessment component determines the risk of accepting the proffered payment based on the financial information and the GPS information of the point of sale device and provides an indication of whether to accept the proffered payment to the point of sale device via the transceiver.

10. The system of claim 9, wherein the risk assessment component verifies whether the GPS coordinates are within at least one pre-approved geographic region for the point of sale device.

11. The system of claim 10, wherein the risk assessment component stores a plurality of pre-approved geographic regions for the point of sale device to facilitate businesses that travel between locations and wherein the risk assessment component utilizes a pre-approved risk scoring model when the GPS coordinates indicate that the point of sale device is within one of the plurality of pre-approved areas.

12. The system of claim 11, wherein the risk assessment component determines a new risk scoring model when the GPS coordinates indicate that the point of sale device is not within a pre-approved geographic location for the point of sale device.

13. The system of claim 12, wherein the new risk scoring model is developed based at least in part upon payment history of other proffered payments in the non-pre-approved area.

14. The system of claim 9, wherein the risk assessment component categorizes regions based upon risk by zip codes.

15. The system of claim 14, wherein the risk assessment component includes a database that interrelates GPS coordinates to zip codes such that the risk assessment component can assess the risk of accepting a proffered payment in any area by determining which zip code the GPS coordinates fall within and then accessing the risk factors for that zip code.

16. The system of claim 9, wherein the risk assessment component evaluates the financial information to determine the risk of accepting a proffered payment by evaluating the location information, the merchant information, the transaction type, the payment history of the individual offering the proffered payment and the payment amount.

17. A method of assessing the risk of accepting a proffered payment, the method comprising:

receiving location information from a point of sale device indicative of the location of a point of sale device;

receiving financial information from the point of sale device indicative of the proffered payment; and

evaluating the risk of accepting the proffered payment based at least in part on the location information provided by the point sale device an the financial information.

18. The method of claim 17, wherein receiving location information comprises receiving GPS coordinates indicative of the location of the point of sale device.

19. The method of claim 18, wherein evaluating the risk of accepting the proffered payment comprises:

determining whether the GPS coordinates correspond to a geographic region corresponding to a pre-approved area for the point of sale device; and

calculating a risk score based upon the risk factors associated with the pre-approved geographic region when it is determined the point of sale device is in a pre-approved region.

20. The method of claim 19, further comprising calculating a risk score based upon the risk factors associated with a non-pre-approved region when it is determined that the point of sale device is not in a pre-approved region.

21. The method of claim 19, wherein determining whether the GPS coordinates correspond to a geographic region corresponding to a pre-approved area for the point of sale device comprises determining whether the GPS coordinates fall within a pre-approved postal zip code.

22. A system of assessing the risk of accepting a proffered payment, the system comprising:

a means for receiving location information from a point of sale device indicative of the location of a point of sale device;

a means for receiving financial information from the point of sale device indicative of the proffered payment; and

a means for evaluating the risk of accepting the proffered payment based at least in part on the location information provided by the point sale device an the financial information.

23. The system of claim 22, wherein the means for receiving location information comprises receiving GPS coordinates indicative of the location of the point of sale device.

24. The system of claim 23, wherein the means for evaluating the risk of accepting the proffered payment comprises:

determining whether the GPS coordinates correspond to a geographic region corresponding to a pre-approved area for the point of sale device; and

calculating a risk score based upon the risk factors associated with the pre-approved geographic region when it is determined the point of sale device is in a pre-approved region.

25. The system of claim 24, further comprising a means for calculating a risk score based upon the risk factors associated with a non-pre-approved region when it is determined that the point of sale device is not in a pre-approved region.

26. The system of claim 24, wherein determining whether the GPS coordinates correspond to a geographic region corresponding to a pre-approved area for the point of sale device comprises determining whether the GPS coordinates fall within a pre-approved postal zip code.

27. The system of claim 22, wherein accepting a proffered payment comprises accepting a proffered promissory payment including a payment by check.