System for managing risk of financial transactions with location information

• US 20070034682A1
• Filed: 10/23/2006
• Published: 02/15/2007
• Est. Priority Date: 12/23/2003
• Status: Active Grant

• Current Assignee: Charles Williams
• Original Assignee: Charles Williams
• Inventors: Williams, Charles
• Granted Patent: US 7,500,607 B2
• Time in Patent Office: Days
• US Class Current: 235/379
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/204 comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit
• 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 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 20/403 Solvency checks

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 method of determining a risk of accepting a proffered promissory payment, the method comprising;

receiving transaction information about a proffered promissory payment from a transaction device;

extracting a location of the transaction device from the transaction information;

determining whether the transaction device location is approved;

if the transaction device location is not approved, determining whether risk factors are available for the transaction device location;

requesting additional information associated with the proffered promissory payment;

determining whether the requested additional information is acceptable; and

if the requested additional information is acceptable, performing a risk assessment of the proffered promissory payment based at least in part on the additional information.

2. The method of claim 1, further comprising performing the risk assessment if the transaction device location is approved, wherein the risk assessment is based at least in part on the transaction information.

3. The method of claim 1, further comprising performing the risk assessment if the risk factors are available when the location is not approved, wherein the risk assessment based at least in part on the risk factors.

4. The method of claim 1, further comprising declining a financial transaction associated with the proffered promissory payment when the requested additional information is not acceptable.

5. The method of claim 1, further comprising:

determining whether a risk associated with the risk assessment is acceptable; and

processing a financial transaction associated with the proffered promissory payment when the risk is acceptable.

6. The method of claim 5, further comprising declining the financial transaction when the risk is not acceptable.

7. The method of claim 1, wherein the approved transaction device location comprises an approved zip code value.

8. The method of claim 1, wherein the approved transaction device location comprises an approved zip code range.

9. The method of claim 1, wherein the requested additional information comprises at least one of a merchant identification and a location.

10. The method of claim 1, wherein receiving transaction information comprises receiving GPS signals.

11. The method of claim 1, wherein extracting the location of the transaction device from the transaction information comprises determining a GPS based location of the transaction device.

12. A system for determining a risk of accepting a proffered promissory payment, the system comprising;

means for receiving transaction information about a proffered promissory payment from a transaction device;

means for extracting a location of the transaction device from the transaction information;

means for determining whether the transaction device location is approved;

if the transaction device location is not approved, means for determining whether risk factors are available for the transaction device location;

means for requesting additional information associated with the proffered promissory payment;

means for determining whether the requested additional information is acceptable; and

if the requested additional information is acceptable, means for performing a risk assessment of the proffered promissory payment based at least in part on the additional information.

13. The system of claim 12, wherein the requested additional information comprises at least one of a merchant identification and a location.

14. The system of claim 12, wherein the means for receiving transaction information comprises a means for receiving GPS signals.

15. The system of claim 12, wherein the means for extracting the location of the transaction device from the transaction information comprises a means for determining a GPS based location of the transaction device.

16. A system for determining a risk of accepting a proffered promissory payment, the system comprising;

one or more computer processors configured to receive transaction information about a proffered promissory payment from a transaction device;

one or more computer processors configured to extract a location of the transaction device from the transaction information;

one or more computer processors configured to determine whether the transaction device location is approved;

if the transaction device location is not approved, one or more computer processors configured to determine whether risk factors are available for the transaction device location;

one or more computer processors configured to request additional information associated with the proffered promissory payment;

one or more computer processors configured to determine whether the requested additional information is acceptable; and

if the requested additional information is acceptable, one or more computer processors configured to perform a risk assessment of the proffered promissory payment based at least in part on the additional information.

17. The system of claim 16, further comprising one or more computer processors configured to perform the risk assessment if the risk factors are available when the location is not approved, wherein the risk assessment based at least in part on the risk factors.

18. The system of claim 16, further comprising one or more computer processors configured to decline a financial transaction associated with the proffered promissory payment when the requested additional information is not acceptable.

19. The system of claim 16, wherein the approved transaction device location comprises an approved zip code range.

20. A method of determining the risks of accepting a financial transaction, the method comprising:

receiving transaction information about a financial transaction;

receiving location information about the location of at least one remote transaction device; and

performing a risk assessment of the financial transaction, wherein performing the risk assessment comprises, at least in part, determining whether the location information indicates that the location of the remote transaction device is within at least one of a plurality of authorized locations for the remote transaction device, and wherein the risk assessment comprises additional non-location based risk factors associated with the financial transaction if the location of the remote transaction device is not within one of the plurality of authorized locations.