SYSTEMS AND METHODS FOR RISK TRIGGERING VALUES

• US 20080275821A1
• Filed: 06/28/2008
• Published: 11/06/2008
• Est. Priority Date: 04/04/2005
• Status: Active Grant

• Current Assignee: Liberty Peak Ventures, LLC (Dominion Harbor Enterprises, LLC)
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Bishop, Fred, Eldridge, Eric James, Schwartz, William S.
• Granted Patent: US 8,104,675 B2
• Time in Patent Office: Days
• US Class Current: 705/64
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/202 Interconnection or interaction of plural electronic cash registers [ECR] or to host computer, e.g. network details, transfer of information from host to ECR or from ECR to ECR
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• 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 20/405 Establishing or using transaction specific rules
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions

Abstract

The invention includes systems and methods for facilitating risk assessment for point of sale transactions utilizing at least one risk triggering value (RTV) stored within a distributed (e.g., local and/or regional) processing site. An RTV is a condensed version of a set of complex risk data and strategies usually found in central processing sites. The distributed site, after receiving a request for payment authorization, a risk value is calculated for the request. The distributed processing site compares the risk value to the RTV to determine whether to authorize payment. If the risk value is less than or equal to the RTV, the payment is authorized while a risk value greater than the RTV will not be authorized. After one or more authorizations, the distributed processing site forwards the information from the transaction(s) to the central site, wherein the central site calculates a new RTV for the account and distributes the new RTV to the distributed processing site.

Claims

1. A computer-implemented method to facilitate authorization of a payment request comprising:

receiving a request for payment authorization related to a transaction account; and

,

determining whether to issue a payment authorization based in part upon a risk triggering value (RTV), wherein said RTV is calculated based on historical transactions, and wherein said request for payment authorization need not be sent to a central authorization system.

2. The computer-implemented method of claim 1, further comprising storing transaction information resulting from said request for payment authorization, wherein said transaction information includes at least one of:

an identifier of said transaction account, a transaction amount, an authorization message, and a decline message.

3. The computer-implemented method of claim 1, wherein said historical transactions include at least one of:

purchases, cash advances, payments, and disputes relating to said transaction account

4. The computer-implemented method of claim 1, wherein said step of determining whether to issue payment authorization comprises issuing a payment authorization based in part upon a risk triggering value and further upon a risk value.

5. The computer-implemented method of claim 1, wherein said step of determining whether to transmit payment authorization comprises the steps of:

calculating a risk value for said request, wherein said risk value is based in part upon at least one of;

an outcome, a transaction variable and an environmental variable;

comparing said risk value to said RTV; and

transmitting a payment authorization when said risk value is at least one of;

less than and equal to said RTV.

6. The computer-implemented method of claim 5, further comprising forwarding a risk strategy outcome of said request to said central authorization system.

7. The computer-implemented method of claim 1, further comprising compiling a set of risk data and strategies by compiling at least one of a transactional variable and an environmental variable.

8. The computer-implemented method of claim 1, further comprising compiling a set of risk data and strategies by compiling a transactional variable, wherein said transactional variable includes at least one of:

a transaction instrument present, account type, account status, consumer location, merchant classification, merchant location, token type, current payment status, current billed transactions, current unbilled transactions, demographic information, financial information, external credit information, external scoring information, and transaction amount

9. The computer-implemented method of claim 1, further comprising compiling a set of risk data and strategies by compiling an environmental variable, wherein said environmental variable includes at least one of date and time, seasonal holidays, special event, and health of domain and nodes.

10. The computer-implemented method of claim 1, further comprising receiving an RTV at a distributed processing site, wherein said RTV was established by condensing a set of risk data and strategies, wherein said set of risk data and strategies are managed at a central processing site, and said condensed set of risk data and strategies comprise a risk triggering value (RTV).

11. The computer-implemented method of claim 1, further comprising receiving a new RTV, wherein said new RTV is determined based on transaction information related to said request.

12. The computer-implemented method of claim 11, wherein said new RTV is received from a merchant based on at least one of:

predetermined number of transactions, predetermined interval, and predetermined time.

13. The computer-implemented method of claim 1, wherein said retrieving step and said determining step, are performed at a merchant Point of Sale (POS) device when a velocity of requests received by a distributed processing site reaches a predefined threshold.

14. The computer-implemented method of claim 1, wherein said retrieving step and said determining step are performed at a distributed processing site when a velocity of requests received by a merchant Point of Sale (POS) device reaches a predefined threshold.

15. The computer-implemented method of claim 1, wherein said transaction account is associated with at least one of:

a charge card, a credit card, loyalty account, a debit card, and a check.

16. The computer-implemented method of claim 1, wherein said retrieving step and said determining step are performed by at least one of:

a Point of Sale (POS) device and a distributed processing site.

17. The computer-implemented method of claim 1, wherein said RTV is calculated by at least one of:

a Point of Sale (POS) device, a distributed processing site, a central processing site and a central authorization system.

18. The computer-implemented method of claim 1, wherein said payment authorization is performed by at least one of:

a Point of Sale (POS) device, a distributed processing site, a central processing site and a central authorization system.

19. The computer-implemented method of claim 1, wherein at least one of:

said retrieving step and said determining step are performed by a merchant Point of Sale (POS) device which includes at least one of a distributed processing site and a central processing site.

20. The computer-implemented method of claim 1, wherein said RTV is cryptographically protected by way of at least one of:

a digital signature and one-way encryption.

21. The computer-implemented method of claim 1, wherein a tamper resistant hardware based security module is implemented at least one of:

a Point of Sale (POS) device, a distributed processing site, a central processing site, and said central authorization system.

22. A computer-implemented method to facilitate authorization of a payment request at a central processing site comprising the steps of:

condensing a set of risk data and strategies to create a calculation rule, wherein said risk data is based on historical transactions including at least one of;

purchases, cash advances, payments, and disputes relating to said transaction account; and

,

distribute said calculation rule to a distributed processing site, wherein said distributed processing site receives a request for payment authorization related to a transaction account, and determines whether to issue a payment authorization based in part upon a risk triggering value (RTV), wherein said RTV is calculated based on historical transactions, and wherein said request for payment authorization need not be sent to a central authorization system.

23. A machine-readable medium having stored thereon a plurality of instructions, said plurality of instructions when executed by a processor, cause said processor to perform a method comprising the steps of:

receiving a request for payment authorization related to a transaction account; and

,

determining whether to issue a payment authorization based in part upon a risk triggering value (RTV), wherein said RTV is calculated based on historical transactions, and wherein said request for payment authorization need not be sent to a central authorization system.