Global positioning system to manage risk for POS terminal

• US 20050149438A1
• Filed: 12/23/2003
• Published: 07/07/2005
• Est. Priority Date: 12/23/2003
• Status: Active Grant

• Current Assignee: Western Union
• Original Assignee: Western Union
• Inventors: Williams, Charles
• Granted Patent: US 7,853,521 B2
• Time in Patent Office: Days
• US Class Current: 705/40
• 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 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/341 Active cards, i.e. cards including their own processing means, e.g. including an IC or chip
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G07F 7/0886 the card reader being portable for interacting with a POS or ECR in realizing a payment transaction
• CPC Class Codes: G07F 7/1008 Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system
• CPC Class Codes: G07G 1/14 Systems including one or more distant stations co-operating with a central processing unit data transmission in general H04L; telemetry systems for selectively calling a substation from a main station H04Q9/00

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 processing financial transactions comprising:

at least one remote terminal that identifies the location of a financial transaction, wherein the remote terminal also acquires transaction information about a proffered promissory payment and transmits a signal indicative of the transaction information and the location information; and

an authorizing host that receives the signal transmitted by the remote terminal wherein the authorizing host evaluates the risk associated with the financial transaction based, at least in part, on the location information so as to determine whether to accept or decline the financial transaction, and wherein the authorizing host transmits a signal back to the remote terminal indicative of acceptance or decline of the proffered promissory payment.

2. The system of claim 1, wherein the at least one remote terminal includes a GPS receiver that receives GPS signals and determines the location coordinates of the at least one remote terminal based upon the GPS signal.

3. The system of claim 2, wherein the authorizing host includes a risk assessment component that evaluates the risk associated with the financial transaction, and wherein the risk assessment component adjusts the risk assessment based upon the location information received from the at least one remote terminal.

4. The system of claim 3, wherein the risk assessment component categorizes an approved location for the at least one remote terminal, and wherein the risk assessment component performs a standard risk assessment when the location information indicates that the at least one remote terminal is at the approved location.

5. The system of claim 4, wherein the risk assessment component adjusts the risk assessment when the location information indicates that the at least one remote terminal is not in the approved location by evaluating risk factors associated with the new location.

6. The system of claim 5, wherein the risk factors for the new location include payment history on other proffered promissory payments in the same location.

7. The system of claim 3, wherein the authorization host categorizes a plurality of approved locations for the at least one remote terminal such that the merchant can move the at least one remote terminal from one location to another.

8. The system of claim 7, wherein the risk assessment component declines transactions when the location information provided by the at least one remote terminal indicates the at least one remote terminal is not in one of the plurality of approved locations.

9. The system of claim 7, wherein the plurality of approved locations are defined as a region in which the GPS coordinates provided by the at least one remote terminal must fall within.

10. The system of claim 9, wherein the authorization host has a data structure associated therewith that maps zip codes to GPS coordinates such that the authorization host can determine if a GPS coordinate falls within a particular zip code and wherein the approved location for the at least one remote terminal is defined in terms of approved zip codes.

11. The system of claim 1, wherein the at least one remote terminal comprises a plurality of remote terminals.

12. The system of claim 1, wherein the signal comprises a data package having transaction information selected from the group consisting of store number, identification number, clerk number, transaction number, date, dollar amount, check information, cash information, and GPS information.

13. A system for processing financial transactions comprising:

at least one remote terminal that identifies the location of a financial transaction with a GPS signal, wherein the remote terminal also acquires transaction information about a proffered payment and transmits a signal indicative of the transaction information and the location information; and

an authorizing host that receives the signal transmitted by the remote terminal wherein the authorizing host evaluates the risk associated with the financial transaction based, at least in part, on the location information so as to determine whether to accept or decline the financial transaction, and wherein the authorizing host transmits a signal back to the remote terminal indicative of acceptance or decline of the proffered payment.

14. The system of claim 13, wherein the proffered payment includes a proffered promissory payment.

15. The system of claim 14, wherein the proffered promissory payment includes a payment by check.

16. The system of claim 13, wherein the at least one remote terminal includes a GPS receiver that receives the GPS signal and determines the location coordinates of the at least one remote terminal based upon the GPS signal.

17. The system of claim 16, wherein the authorizing host includes a risk assessment component that evaluates the risk associated with the financial transaction, and wherein the risk assessment component adjusts the risk assessment based upon the location information received from the at least one remote terminal.

18. The system of claim 17, wherein the risk assessment component categorizes an approved location for the at least one remote terminal, and wherein the risk assessment component performs a standard risk assessment when the location information indicates that the at least one remote terminal is at the approved location.

19. The system of claim 18, wherein the risk assessment component adjusts the risk assessment when the location information indicates that the at least one remote terminal is not in the approved location by evaluating risk factors associated with the new location.

20. The system of claim 19, wherein the risk factors for the new location include payment history on other proffered payments in the same location.

21. The system of claim 17, wherein the authorization host categorizes a plurality of approved locations for the at least one remote terminal such that the merchant can move the at least one remote terminal from one location to another.

22. The system of claim 21, wherein the risk assessment component declines transactions when the location information provided by the at least one remote terminal indicates that the at least one remote terminal is not in one of the plurality of approved locations.

23. The system of claim 22, wherein the plurality of approved locations are defined as a region in which the GPS coordinates provided by the at least one remote terminal must fall within.

24. The system of claim 23, wherein the authorization host has a data structure associated therewith that maps zip codes to GPS coordinates such that the authorization host can determine if a GPS coordinate falls within a particular zip code and wherein the approved location for the at least one remote terminal is defined in terms of approved zip codes.

25. The system of claim 13, wherein the at least one remote terminal comprises a plurality of remote terminals.

26. The system of claim 13, wherein the signal comprises a data package having transaction information selected from the group consisting of store number, identification number, clerk number, transaction number, date, dollar amount, check information, cash information, and GPS information.

27. A method of determining the risk of accepting a proffered promissory payment, the method comprising:

determining the location of a remote transaction device adapted to send transaction information about the proffered promissory payment to an authorizing host;

sending the transaction information and the location information to the authorizing host;

performing a risk assessment of accepting the proffered promissory payment based upon the transaction information and the location information; and

sending a signal back to the remote transaction device indicative of whether the proffered promissory payment is to be accepted or declined.

28. The method of claim 27, wherein determining the location of a remote transaction device comprises receiving GPS signals and determining a GPS based location of the remote transaction device.

29. The method of claim 27, wherein performing a risk assessment of accepting the proffered promissory payment comprises determining whether the GPS based location is in at least one pre-approved location for the remote transaction device.

30. The method of claim 29, wherein determining whether the GPS based location is in the at least one pre-approved location comprises determining whether the GPS based location is within a region defined by a pre-approved zip code for the remote transaction device.

31. The method of claim 29, wherein performing the risk assessment further comprises determining a risk score of accepting the proffered promissory payment based upon the GPS information, the information about the merchant, the amount of the proffered promissory payment, and the type of transaction to determine the risk score.

32. The method of claim 31, wherein the risk score is adjusted based upon whether the GPS information is within a pre-approved location for the remote transaction device.

33. The method of claim 29, wherein performing the risk assessment of accepting the proffered promissory payment comprises determining whether the GPS based location is in the at least one pre-approved location and comprises determining which of a plurality of pre-approved locations the GPS location falls within.

34. The method of claim 33, wherein a risk score is calculated for the proffered promissory payment based upon risk factors associated with the pre-approved location if it is determined that the GPS location falls within the pre-approved location.

35. The method of claim 33, wherein a risk score is calculated for the proffered promissory payment based upon new risk factors associated with the GPS location when the GPS location does not fall within a pre-approved location.

36. A method of determining the risk of accepting a proffered payment, the method comprising:

determining the location of a remote transaction device with a GPS signal, wherein the remote transaction device is adapted to send transaction information about the proffered payment to an authorizing host;

sending the transaction information and the location information to the authorizing host;

performing a risk assessment of accepting the proffered payment based upon the transaction information and the location information; and

sending a signal back to the remote transaction device indicative of whether the proffered payment is to be accepted or declined.

37. The method of claim 36, wherein determining the location of a remote transaction device comprises receiving the GPS signal and determining a GPS based location of the remote transaction device.

38. The method of claim 36, wherein performing a risk assessment of accepting the proffered payment comprises determining whether the GPS based location is in at least one pre-approved location for the remote transaction device.

39. The method of claim 38, wherein determining whether the GPS based location is in the at least one pre-approved location comprises determining whether the GPS based location is within a region defined by a pre-approved zip code for the remote transaction device.

40. The method of claim 38, wherein performing the risk assessment further comprises determining a risk score of accepting the proffered payment based upon the GPS information, the information about the merchant, the amount of the proffered payment, and the type of transaction to determine the risk score.

41. The method of claim 40, wherein the risk score is adjusted based upon whether the GPS information is within a pre-approved location for the remote transaction device.

42. The method of claim 38, wherein performing the risk assessment of accepting the proffered payment comprises determining whether the GPS based location is in the at least one pre-approved location and comprises determining which of a plurality of pre-approved locations the GPS location falls within.

43. The method of claim 42, wherein a risk score is calculated for the proffered payment based upon risk factors associated with the pre-approved location if it is determined that the GPS location falls within the pre-approved location.

44. The method of claim 42, wherein a risk score is calculated for the proffered payment based upon new risk factors associated with the GPS location when the GPS location does not fall within a pre-approved location.

45. The method of claim 36, wherein determining the risk of accepting a proffered payment includes determining the risk of accepting a proffered promissory payment.

46. The method of claim 45, wherein determining the risk of accepting a proffered promissory payment includes determining the risk of accepting a payment by check.

47. A system for determining the risk of accepting a proffered payment, the system comprising:

a means for determining the location of at least one remote transaction device, wherein the at least one remote transaction device is adapted to send transaction information about the proffered payment to an authorizing host;

a means for sending the transaction information and the location information to the authorizing host;

a means for performing a risk assessment of accepting the proffered payment based upon the transaction information and the location information; and

a means for sending a signal back to the at least one remote transaction device indicative of whether the proffered payment is to be accepted or declined.

48. The system of claim 47, wherein the means for determining the location of the at least one remote transaction device includes a GPS receiver that receives GPS signals and determines the location coordinates of the at least one remote transaction device based upon the GPS signal.

49. The system of claim 48, wherein the means for performing a risk assessment includes a risk assessment component that evaluates the risk associated with the financial transaction, and wherein the risk assessment component adjusts the risk assessment based upon the location information received from the at least one remote transaction device.

50. The system of claim 49, wherein the risk assessment component categorizes an approved location for the at least one remote transaction device, and wherein the risk assessment component performs a standard risk assessment when the location information indicates that the at least one remote transaction device is at the approved location.

51. The system of claim 50, wherein the risk assessment component adjusts the risk assessment when the location information indicates that the at least one remote transaction device is not in the approved location by evaluating risk factors associated with the new location.

52. The system of claim 51, wherein the risk factors for the new location include payment history on other proffered payments in the same location.

53. The system of claim 49, wherein the means for performing a risk assessment categorizes a plurality of approved locations for the at least one remote transaction device such that a merchant can move the at least one remote transaction device from one location to another.

54. The system of claim 53, wherein the risk assessment component declines transactions when the location information provided by the at least one remote transaction device indicates the at least one remote transaction device is not in one of the plurality of approved locations.

55. The system of claim 53, wherein the plurality of approved locations are defined as a region in which the GPS coordinates provided by the at least one remote transaction device must fall within.

56. The system of claim 55, wherein the means for performing a risk assessment has a data structure associated therewith that maps zip codes to GPS coordinates such that the authorization host can determine if a GPS coordinate falls within a particular zip code and wherein the approved location for the at least one remote transaction device is defined in terms of approved zip codes.

57. The system of claim 47, wherein the remote transaction device comprises a plurality of remote transaction devices.

58. The system of claim 47, wherein the transaction information is selected from the group consisting of store number, identification number, clerk number, transaction number, date, dollar amount, check information, cash information, and GPS information.