System and Method for Facilitating a Financial Transaction with a Dynamically Generated Identifier

• US 20090063345A1
• Filed: 08/29/2007
• Published: 03/05/2009
• Est. Priority Date: 08/29/2007
• 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: Erikson, Glade Raymond
• Granted Patent: US 7,849,014 B2
• Time in Patent Office: Days
• US Class Current: 705/44
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• CPC Class Codes: G06Q 20/385 using an alias or single-use codes
• 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 20/40145 Biometric identity checks
• CPC Class Codes: G06Q 20/4037 Remote solvency checks
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

Instead of a PIN which is associated with an account and provides access to an account, a dynamically generated card identifier (dynamic CID) is used to verify that the consumer currently possesses the transaction card at the time of purchase and/or is the true card owner. At the time of purchase, a token generates a dynamic CID, which changes with each transaction. A consumer enters the dynamic CID into a pre-existing CID field in an electronic order form. The merchant then sends the dynamic CID to a card authorization system within an authorization request. The card authorization system issues a response to a merchant system via a pre-existing authorization message indicating that the transaction card and dynamic CID have been validated, thereby adjusting the fraud risk associated with the transaction.

Claims

1. A computer-implemented method for facilitating an authorization of a purchase transaction, said method comprising:

receiving a request, at a merchant system, for a purchase transaction from a consumer, wherein said request includes a dynamically generated code;

transmitting said request to an authorization system;

receiving a response from said authorization system indicating that said dynamically generated code is valid;

completing said purchase transaction.

2. The method of claim 1, wherein said step of receiving said response comprises receiving said response in a pre-existing data message.

3. The method of claim 1, wherein said step of receiving said response comprises receiving said response in a pre-existing data message, wherein said pre-existing data message is a four digit batch code (4DBC) message.

4. The method of claim 1, wherein said step of receiving said request comprises receiving said dynamically generated code in a pre-existing data message.

5. The method of claim 1, wherein said step of receiving said request comprises receiving said dynamically generated code in a pre-existing data message, wherein said dynamically generated code is acquired from a pre-existing card identifier (CID) field of an electronic payment form.

6. The method of claim 1, wherein said step of receiving said response comprises receiving said response in a pre-existing data message, wherein said response includes an authorization message of said purchase transaction.

7. The method of claim 1, wherein said dynamically generated code is generated by using a token.

8. The method of claim 1, wherein said dynamically generated code is generated using a token, wherein said token includes at least one of:

software, a USB device, fob, transaction card reader and pinpad.

9. The method of claim 1, wherein said dynamically generated code is generated based on interaction between at least one of a transaction card, biometric and token.

10. The method of claim 1, wherein said response indicating that said dynamically generated code is valid results in an adjustment of a fraud risk associated with said purchase transaction.

11. The method of claim 1, wherein said step of receiving a response from said authorization system comprises receiving additional data about a fraud risk.

12. The method of claim 1, wherein said dynamically generated code is automatically captured by a point of sale system.

13. The method of claim 1, wherein said dynamically generated code is created based on at least one of:

transaction account data, entered Personal Identification Number (PIN), private key, password, profile data, card reader data, and time.

14. The method of claim 1, wherein said transmitting step comprises transmitting said request to an authorization system as a four digit batch code (4DBC) request.

15. A computer-implemented method for authorizing a dynamically generated code, said method comprising:

receiving a request to authorize a purchase transaction from a merchant, wherein said request includes a dynamically generated code;

authorizing said dynamically generated code;

transmitting said authorization of said dynamically generated code to said merchant.

16. The method of claim 15, wherein said transmitting step comprises transmitting authorization of said dynamically generated code in a pre-existing data message.

17. The method of claim 15, wherein said transmitting step comprises transmitting authorization of said dynamically generated code in a pre-existing data message, wherein said pre-existing data message is a four digit batch code (4DBC) message.

18. The method of claim 15, wherein said transmitting step comprises transmitting authorization of said dynamically generated code in a pre-existing data message, wherein said pre-existing data message includes an authorization message of said purchase transaction.

19. The method of claim 15, wherein said step of transmitting said authorization of said dynamically generated code to said merchant comprises transmitting additional data about a fraud risk.

20. The method of claim 15, wherein said step of authorizing said dynamically generated code comprises adjusting a fraud risk associated with said purchase transaction.

21. A computer-implemented method for conducting a purchase transaction, said method comprising:

generating a dynamically generated code; and

,

sending a request to a merchant system for a purchase transaction, wherein said request includes said dynamically generated code, wherein said merchant system transmits said request to an authorization system and receives a response from said authorization system indicating that said dynamically generated code is valid before completing said purchase transaction.

22. The method of claim 21, wherein said generating step comprises generating said dynamically generated code via at least one of:

a hardware token and a software token.

23. The method of claim 21, wherein said sending step comprises sending said request in a pre-existing data message.

24. The method of claim 21, wherein said sending step comprises entering said dynamically generated code in a pre-existing card identifier (CID) field of an electronic payment form.

25. An authorization system for processing a purchase transaction, said authorization system configured to:

receive a request to authorize a purchase transaction from a merchant, wherein said request includes a dynamically generated code;

authorize said dynamically generated code;

transmit an authorization of said dynamically generated code to said merchant.

26. A computer readable storage medium containing a set of instructions for a general purpose computer for processing a purchase transaction, said instructions including:

receiving a request to authorize a purchase transaction from a merchant, wherein said request includes a dynamically generated code;

authorizing said dynamically generated code;

transmitting authorization of said dynamically generated code to said merchant.