Systems and methods for authorizing a transaction for a financial account

• US 20070084913A1
• Filed: 10/18/2005
• Published: 04/19/2007
• Est. Priority Date: 10/18/2005
• Status: Abandoned Application

• Current Assignee: Capital One Financial Corporation
• Original Assignee: Capital One Financial Corporation
• Inventors: Weston, Eric
• Application Number:
  US11/251,872
• Publication Number:
  US 20070084913A1
• Time in Patent Office: Days
• US Class Current: 235/380
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/3224 Transactions dependent on location of M-devices
• 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 20/403 Solvency checks
• CPC Class Codes: H04W 4/021 Services related to particular areas, e.g. point of interest [POI] services, venue services or geofences

Abstract

A method is disclosed for authorizing a purchase transaction made using a purchasing device associated with a financial account and communicating with a point-of-sale (POS) terminal. In one embodiment, the method may include determining a physical location of the purchasing device during the purchase transaction based on location information provided by the purchasing device. Further, the method includes determining a physical location of the POS terminal during the purchase transaction. Based on the identified locations of the purchasing device and POS terminal, a proximity of the purchasing device to the POS terminal is determined. The method may also include authorizing the purchase transaction based on the determined proximity of the purchasing device to the POS terminal.

Claims

1. A method for authorizing a purchase transaction made using a purchasing device associated with a financial account and communicating with a POS terminal, the method comprising:

determining a physical location of the purchasing device during the purchase transaction based on location information provided by the purchasing device;

determining a physical location of the POS terminal during the purchase transaction;

determining a proximity of the purchasing device to the POS terminal based on the identified locations of the purchasing device and POS terminal; and

authorizing the purchase transaction based on the determined proximity of the purchasing device to the POS terminal.

2. The method of claim 1, wherein determining a location of the purchasing device comprises:

sending location information from a transceiver embedded in the purchasing device to a location determination unit associated with the POS terminal, wherein the location information indicates a geographic location of the purchasing device during the purchase transaction.

3. The method of claim 1, wherein determining a location of the purchasing device comprises:

sending location information from a GPS device embedded in the purchasing device to a location determination unit associated with the POS terminal, wherein the location information indicates a geographic location of the purchasing device during the purchase transaction.

4. The method of claim 1, wherein determining the proximity of the purchasing device to the POS terminal comprises:

calculating a physical distance between the purchasing device and the POS terminal; and

comparing the calculated distance to a predefined authorization radius.

6. The method of claim 2, further comprising:

providing, from the location determination unit, an activation signal to the transceiver when the transceiver is within a communication range of the location determination unit.

7. The method of claim 2, further comprising:

receiving an indication that the purchasing device is not in possession of an authorized user associated with the financial account; and

providing an activation signal to the transceiver to direct the transceiver to send the location information to the location determination unit.

8. The method of claim 1, wherein determining the proximity of the purchasing device to the POS terminal comprises:

determining, by a location determination unit associated with the POS terminal, the proximity of the purchasing device to the POS terminal; and

providing, by the POS terminal, information reflecting the determined proximity to an authorization system remotely located from the POS terminal.

9. The method of claim 8, wherein authorizing the purchase transaction comprises:

determining, by the authorization system, whether the purchasing device is within an authorized distance of the POS terminal based on the information reflecting the determined proximity of the purchasing device to the POS terminal.

10. The method of claim 4, further comprising:

defining, by a user associated with the financial account, the predefined authorization radius.

5. The method of 1, wherein determining the location of a POS terminal comprises:

determining a network address of the POS terminal; and

determining the physical location of the POS terminal based on the determined network address.

11. A system for authorizing a purchase transaction, comprising:

a receiving component communicating with a purchasing device associated with a financial account that is used for the purchase transaction, wherein the receiving component receives, from the purchasing device, location information reflecting a geographic location of the purchasing device during the purchase transaction; and

an authorization system that authorizes the purchase transaction based on the location information received from the purchasing device.

12. The system of claim 11, further including:

a POS terminal that receives financial account information and the location information provided by the purchasing device during the purchase transaction, and sends the financial account and location information in an authorization request to the authorization system.

13. The system of claim 12, wherein the POS terminal includes a location determination unit that receives the location information from the transceiver and determines a proximity of purchasing device to the POS terminal based on the location information.

14. The system of claim 13, wherein the location determination unit provides data reflecting the determined proximity to the POS terminal for submission to the authorization system.

15. The system of claim 14, wherein the authorization system authorizes the purchase transaction based on whether the determined proximity is within a predetermined authorization radius associated with the POS terminal.

16. The system of claim 11, further including:

a POS terminal connected to a network and having a current network address during the purchase transaction,

wherein the authorization system determines the location of the POS terminal based on the current network address and determines whether the purchasing device is within a predetermined authorized range of the POS terminal based on the determined location of the POS terminal and the location information provided by the purchasing device.

17. The system of claim 16, wherein the POS terminal provides the location information of the purchasing device to the authorization system.

18. A system for authorizing a purchase transaction, comprising:

a purchasing device associated with a financial account and embedded with a transceiver that provides location information reflecting a geographic location of the purchasing device;

a authorization system;

a location determination unit that receives the location information from the transceiver; and

a POS terminal that provides an authorization request to the authorization system, the request including data associated with the location information,

wherein the authorization system authorizes the purchase transaction based on a proximity of the purchasing device to the POS terminal.

19. The system of claim 18, wherein the location determination unit further comprises:

a reader device that receives the location information from the transceiver when the purchasing device is positioned within a communication range of the reader device,

wherein the location determination unit determines the proximity of the purchasing device to the POS terminal based on the received location information.

20. The system of claim 18, wherein the authorization system determines the proximity of the purchasing device to the POS terminal at time of transaction based on the location information of the purchasing device and location information of the POS terminal.

21. The system of claim 19, wherein the POS terminal verifies the determined proximity of the purchasing device to the POS terminal.

22. The system of claim 21, wherein the POS terminal sends the verification authorization system in the authorization request.

23. The system of claim 22, wherein the authorization system authorizes the purchase transaction based on the verification received from the POS terminal.