Techniques for authorization of usage of a payment device

• US 20080033880A1
• Filed: 08/31/2007
• Published: 02/07/2008
• Est. Priority Date: 02/01/2006
• Status: Active Grant

• Current Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Original Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Inventors: Mealey, Kenneth, Reany, Robert, Hill, Dennis, Kelly-Frank, Carole, Fiebiger, Sara, Gluck, Adam, Kranzley, Arthur
• Granted Patent: US 8,584,936 B2
• Time in Patent Office: Days
• US Class Current: 705/44
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• 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

Abstract

Techniques for authorization of usage of a payment device include facilitating an issuer of the device obtaining an authorization message for an account number associated with the device, based on desired spending limit parameters established by a merchant and/or an issuer of the device; facilitating obtaining an issuer authorization decision; and responsive to the issuer authorization decision, facilitating setting a spending limit for the account number based on at least an appropriate one of the parameters.

Claims

1. A method for authorization of usage of a payment device at a merchant, said payment device having an associated account number, said method comprising the steps of:

facilitating an issuer of the device obtaining an authorization message for said account number, based on desired spending limit parameters established by at least one of the merchant and said issuer;

facilitating obtaining an issuer authorization decision; and

responsive to said issuer authorization decision, facilitating setting a spending limit for said account number based on at least an appropriate one of said parameters.

2. The method of claim 1, wherein said spending limit parameters comprise at least one of an aggregation limit for a post-funded payment device and a decrementing limit for a pre-funded payment device.

3. The method of claim 1, wherein said account number is obtained in connection with a putative transaction, further comprising the additional steps of:

facilitating obtaining said account number;

facilitating determining whether said account number is on file;

setting a flag to indicate that said account number is not on file; and

facilitating automatically approving said putative transaction, by an intermediary;

wherein said steps of facilitating said issuer obtaining said authorization message, facilitating obtaining said decision, setting said flag, and facilitating automatically approving said putative transaction, are responsive to said determining step indicating that said account number is not on file.

4. The method of claim 3, wherein said intermediary comprises an active file manager, further comprising the additional step of accessing, via said active file manager, a file comprising at least one of active and negative account status information for a plurality of accounts, wherein said facilitating of said automatic approval is performed, at least in part, in response to a determination that said account number does not exhibit inappropriate account status information.

5. The method of claim 4, wherein said file comprises a constructed file, said constructed file in turn comprising at least data associated with a first payment network and data associated with a transit authority.

6. The method of claim 1, further comprising the additional steps of:

facilitating obtaining said account number;

facilitating determining whether said account number is on file;

facilitating conducting putative transactions for said account number; and

facilitating approval of given ones of said transactions, where appropriate, by an intermediary;

wherein said steps of facilitating said issuer obtaining said authorization message and facilitating obtaining said decision are responsive to said determining step indicating that said account number is not on file, and wherein said intermediary comprises an active file manager.

7. The method of claim 6, further comprising the additional step of facilitating inclusion of said transactions in a data warehouse, for subsequent usage by at least one of:

(i) said issuer of said device, (ii) a merchant, and (iii) a merchant acquirer or merchant payment service provider.

8. The method of claim 6, wherein said step of facilitating approval of given ones of said transactions, where appropriate, comprises (i) determining whether an account associated with said account number exhibits a limiting condition, and (ii) responsive to determining that said account does not exhibit said limiting condition, facilitating said approval of said given one of said transactions and a balance decrement, further comprising the additional step of facilitating substantially parallel sending of a response to an acquiring entity associated with said transaction, wherein said limiting condition comprises at least a predetermined number of presentations of said payment device at said merchant.

9. The method of claim 6, wherein said step of facilitating approval of given ones of said transactions, where appropriate, comprises (i) determining whether an account associated with said account number exhibits a limiting condition, and (ii) responsive to determining that said account does not exhibit said limiting condition, facilitating said approval of said given one of said transactions and a balance decrement, further comprising the additional step of facilitating substantially parallel sending of a response to an acquiring entity associated with said transaction, wherein said limiting condition comprises at least passage of a predetermined amount of time since a prior authorization by said issuer of said payment device.

10. The method of claim 6, wherein said step of facilitating approval of given ones of said transactions, where appropriate, comprises (i) determining whether an account associated with said account number exhibits a limiting condition, and (ii) responsive to determining that said account does not exhibit said limiting condition, facilitating said approval of said given one of said transactions and a balance decrement, further comprising the additional step of facilitating substantially parallel sending of a response to an acquiring entity associated with said transaction, wherein said limiting condition varies based on at least one of (i) brand of said payment device, and (ii) type of product of said payment device within a given brand.

11. The method of claim 6, wherein said step of facilitating approval of given ones of said transactions, where appropriate, comprises (i) determining whether an account associated with said account number exhibits a limiting condition, and (ii) responsive to determining that said account does not exhibit said limiting condition, facilitating said approval of said given one of said transactions and a balance aggregation, further comprising the additional step of facilitating substantially parallel sending of a response to an acquiring entity associated with said transaction.

12. The method of claim 1, wherein said authorization message is for a nominal amount.

13. The method of claim 1, further comprising the additional step of facilitating registration of a holder of said payment device with said merchant, said registration comprising at least selecting one of a pre-funded and a post-funded option for transactions with said merchant.

14. The method of claim 13, wherein said registration is facilitated via at least one of a web site and a call center.

15. The method of claim 13, wherein said merchant comprises an operator of a transit system, and wherein registration is facilitated via a dedicated terminal that is located in a facility of said transit system but separate from fare gates thereof.

16. The method of claim 1, wherein said issuer authorization decision is negative, and wherein said spending limit is set to one of zero and a negative number.

17. The method of claim 1, wherein said issuer authorization decision is negative, wherein said spending limit is set to a positive number, further comprising the additional step of flagging said account number with a negative status.

18. An apparatus for authorization of usage of a payment device at a merchant, the payment device having an associated account number, said apparatus comprising:

a memory; and

at least one processor coupled to said memory, said processor being operative to;

facilitate an issuer of the payment device obtaining an authorization message for the account number, based on desired spending limit parameters established by at least one of the merchant and an issuer of the payment device, said spending limit parameters comprising at least one of an aggregation limit for a post-funded payment device and a decrementing limit for a pre-funded payment device;

facilitate obtaining an issuer authorization decision; and

responsive to said issuer authorization decision, facilitate setting a spending limit for the account number based on at least an appropriate one of said parameters.

19. The apparatus of claim 18, wherein:

said apparatus comprises an active file manager apparatus configured to be interposed between an acquiring entity and a payment processing network; and

said memory stores an active file with account numbers including said associated account number and said processor is further operative to;

receive a periodic update file from a payment processing network operator based on information from the issuer; and

delete those of said account numbers in said active file that have not been used within a predetermined time period.

20. An apparatus for authorization of usage of a payment device in a transit system, the payment device having an associated account number, said apparatus comprising:

a fare gate assembly adapted to read the payment device;

a payment platform module in communication with said fare gate assembly; and

an active file manager in communication with said payment platform module, wherein said payment platform module and said active file manager are cooperatively configured to;

facilitate an issuer of the payment device obtaining an authorization message for the account number, based on desired spending limit parameters established by at least one of an operator of the transit system and an issuer of the payment device;

facilitate obtaining an issuer authorization decision; and

responsive to said issuer authorization decision, facilitate setting a spending limit for the account number based on at least an appropriate one of said parameters.

21. The apparatus of claim 20, wherein said active file manager is further configured to determine whether a user of the device shall have access to the transit system via said fare gate assembly.

22. The apparatus of claim 21, wherein said payment platform module is further configured to maintain at least some records associated with said account number.

23. The apparatus of claim 22, wherein said fare gate assembly, said payment platform module, and said active file manager are cooperatively configured to update said records associated with said account number at least in real time based on quality of service prioritizations.

24. The apparatus of claim 20, wherein at least one of said active file manager, said fare gate assembly, and said payment platform module is further configured to provide stand-in functionality in case of an upstream malfunction.

25. The apparatus of claim 24, wherein said active file manager comprises a primary active file manager and said payment platform comprises a primary payment platform, further comprising a secondary active file manager and a secondary payment platform, operatively configured for backing up said primary active file manager and said primary payment platform, respectively.