SYSTEMS AND METHODS FOR SELECTIVELY DELAYING FINANCIAL TRANSACTIONS

• US 20080021803A1
• Filed: 08/01/2007
• Published: 01/24/2008
• Est. Priority Date: 01/07/2002
• Status: Abandoned Application

• Current Assignee: First Data Corporation (Fiserv Incorporated)
• Original Assignee: First Data Corporation (Fiserv Incorporated)
• Inventors: Ahles, Daniel, Templeton, Randy
• Application Number:
  US11/832,505
• Publication Number:
  US 20080021803A1
• Time in Patent Office: Days
• US Class Current: 705/35
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/042 characterized in that the payment protocol involves at least one cheque
• 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 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A risk system that performs a risk assessment of a financial transaction to obtain an initial risk score. Based on the initial risk score, the risk system performs at least one post-score assessment by selectively utilizing various scoring engines and databases. The at least one post-score risk assessment may include delaying the shipment of merchandise in financial transactions that are of marginal risk to thereby provide a check acceptance service with more time to further evaluate the financial transaction risks. Thus, marginally risky financial transactions that are likely to benefit the check acceptance service and a merchant that subscribes to the check acceptance service are authorized for increased profitability and customer satisfaction. Furthermore, the post-score risk assessment may approve or authorize financial transactions that generally fail standard risk assessments that use a cut-off risk score to divide the financial transactions into either approved or declined groups. As a result, the post-score assessment process efficiently re-evaluates some of the borderline exception cases for the purpose of securing beneficial financial transactions.

Claims

1. A method of approving a financial transaction between a customer and a merchant, wherein a customer payment is exchanged for merchant vendibles, the method comprising:

performing, with a computer, a risk assessment of a financial transaction between a customer and a merchant, wherein a customer payment is exchanged for merchant vendibles, and wherein the risk assessment generates a risk score based at least in part on transaction information associated with the financial transaction;

provisionally authorizing the financial transaction based at least in part on the risk score;

delaying delivery of the merchant vendibles for a period of time when the financial transaction is provisionally authorized;

electronically obtaining additional transaction information related to the financial transaction between the customer and the merchant during the period of time associated with delaying delivery of the merchant vendibles; and

authorizing delivery of the merchant vendibles, with a computer, based at least in part on the additional transaction information obtained during the period of time associated with delaying delivery of the merchant vendibles.

2. The method of claim 1, wherein approving the financial transaction comprises a mail order based financial transaction.

3. The method of claim 1, wherein authorizing delivery comprises contacting the merchant and advising the merchant to deliver the vendibles to the customer.

4. The method of claim 1, wherein authorizing delivery comprises agreeing with the merchant that unless the merchant is advised to not ship at the end of the period of time, the delivery of the vendibles is authorized.

5. The method of claim 1, wherein the period of time ranges from at least one micro-second to a few weeks.

6. The method of claim 1, wherein obtaining additional transaction information comprises verifying availability of funds in a checking account belonging to the customer to cover the cost of the financial transaction.

7. The method of claim 1, wherein obtaining additional transaction information comprises obtaining information about the customer'"'"'s recent check writing history and evaluating the customer'"'"'s recent check writing history to predict whether there will be sufficient funds to cover the cost of the financial transaction.

8. The method claim 1, wherein the financial transaction comprises exchanging a promissory payment.

9. The method claim 1, wherein the financial transaction comprises exchanging an electronic payment.

10. A system of approving a financial transaction between a customer and a merchant, wherein a customer payment is exchanged for merchant vendibles, the system comprising:

a risk engine executable in a computer that is configured to perform a risk assessment of a financial transaction between a customer and a merchant, wherein a customer payment is exchanged for merchant vendibles, wherein the risk engine generates a risk score based at least in part on transaction information associated with the financial transaction, and wherein the risk engine is further configured to provisionally authorize the transaction based at least in part on the risk score;

a delivery delay module executable in a computer that is configured to delay the delivery of the merchant vendibles for a period of time when the financial transaction is provisionally authorized, wherein additional information related to the financial transaction between the customer and the merchant is obtained during the period of time associated with the delay of delivery of the merchant vendibles; and

an authorization module executable in a computer that is configured to authorize delivery of the merchant vendibles based at least in part on the additional transaction information obtained during the period of time associated with the delay of the delivery of the merchant vendibles.

11. The system of claim 10, wherein the authorization module further comprises a communications device that contacts the merchant via a communications medium and advises the merchant to deliver the vendibles to the customer if the financial transaction can be classified as low risk.

12. The system of claim 10, wherein the authorization module authorizes the delivery of the vendibles after the period of time unless the merchant is advised to not ship at the end of the period of time by the authorization module.

13. The system of claim 10, wherein the risk engine is further configured to determine if the merchant is a merchant who can delay delivery of the vendibles.

14. The system of claim 10, wherein the period of time ranges from at least one micro-second to a few weeks.

15. The system of claim 10, wherein the additional transaction information verifies the availability of funds in a checking account belonging to the customer to cover the cost of the financial transaction.

16. The system of claim 10, wherein the additional transaction information comprises transaction information about the customer'"'"'s recent check writing history.

17. The system of claim 16, wherein the risk engine is further configured to evaluate the customer'"'"'s recent check writing history to predict whether there will be sufficient funds to cover the cost of the financial transaction.

18. The system claim 10, wherein the customer payment comprises an electronic payment.

19. The system claim 10, wherein the customer payment comprises a check.