METHODS AND SYSTEMS FOR ASSESSING SALES ACTIVITY OF A MERCHANT

• US 20090171709A1
• Filed: 12/28/2007
• Published: 07/02/2009
• Est. Priority Date: 12/28/2007
• Status: Active Grant

• Current Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Original Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Inventors: Brady, John, Bryan, Teresa L., Paolucci, Paul, Chisholm, John D.
• Granted Patent: US 8,712,888 B2
• Time in Patent Office: Days
• US Class Current: 705/7
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• 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 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A method for assessing sales activity of a merchant using a computer system coupled to a database is provided. The sales activity includes purchases made by a customer using a financial transaction card over a financial transaction card network. The method includes storing within the database a plurality of merchant profiles wherein each merchant profile describes a customer community of the corresponding merchant utilizing the financial transaction card network, determining a violator merchant profile based on a customer community associated with a violator merchant wherein the violator merchant uses the financial transaction card network to engage in at least one of illegal, potentially illegal and undesirable sales activities with at least a portion of the associated customer community, comparing the violator merchant profile to each merchant profile stored within the database, and identifying at least one potential violator merchant for further investigation based on the comparison.

Claims

1. A method for assessing sales activity of a merchant using a computer system coupled to a database, the sales activity including purchases made by a customer using a financial transaction card over a financial transaction card network, said method comprising the steps of:

storing within the database a plurality of merchant profiles, each merchant profile describing a customer community of the corresponding merchant utilizing the financial transaction card network;

determining a violator merchant profile based on a customer community associated with a violator merchant, the violator merchant using the financial transaction card network to engage in at least one of illegal, potentially illegal and undesirable sales activities with at least a portion of the associated customer community;

comparing the violator merchant profile to each merchant profile stored within the database, the comparison performed by the computer; and

identifying at least one potential violator merchant for further investigation based on the comparison between the violator merchant profile and the merchant profiles stored within the database.

2. A method according to claim 1 wherein storing within the database a plurality of merchant profiles further comprises storing within the database a plurality of merchant profiles, each merchant profile including card numbers corresponding to each financial transaction card used by a customer in at least one transaction with the merchant.

3. A method according to claim 1 wherein storing within the database a plurality of merchant profiles further comprises storing within the database a plurality of merchant profiles, each merchant profile including a card number, a name of a cardholder, and cardholder demographics for each financial transaction card used in at least one transaction with the merchant.

4. A method according to claim 1 wherein determining a violator merchant profile further comprises determining a violator merchant profile describing a customer community for a violator merchant, the violator merchant using the financial transaction card network to engage in transactions involving a sale of at least one of illegal pharmaceuticals, pornography and terrorism-related products.

5. A method according to claim 1 wherein comparing the violator merchant profile to each merchant profile further comprises determining whether a predetermined degree of correlation exists between the violator merchant profile and any of the merchant profiles stored within the database.

6. A method according to claim 1 further comprising:

storing violator merchant profiles in the database based on a type of violation including at least one of pharmaceutical violation, pornography violation and terrorism violation;

automatically comparing, on a predetermined basis, the violator merchant profiles to the merchant profiles including determining whether a predetermined degree of correlation exists therebetween; and

generating a list of potential violator merchants based on the comparison including organizing each potential violator merchant listed by violation type.

7. A method according to claim 6 wherein generating a list of potential violator merchants further comprises displaying on the computer a list of potential violator merchants, wherein each displayed violator merchant further includes information relating to the merchant including an acquirer ID number, a merchant ID number, a merchant name, a merchant location, a merchant category code (MCC), a number of violation profiles matched, a probable type of violation, and a maximum degree of correlation.

8. A network-based system for assessing sales activity of a merchant including purchases made by a customer using a financial transaction card over a financial transaction card network, said system comprising:

a client system comprising a browser;

a database for storing information; and

a server system configured to be coupled to said client system and said database, said server further configured to;

store within the database a plurality of merchant profiles, each merchant profile describing a customer community of the corresponding merchant utilizing the financial transaction card network;

determine a violator merchant profile based on a customer community associated with a violator merchant, the violator merchant using the financial transaction card network to engage in at least one of illegal, potentially illegal and undesirable sales activities with at least a portion of the associated customer community;

compare the violator merchant profile to each merchant profile stored within the database; and

determine whether to investigate at least one potential violator merchant based on the comparison between the violator merchant profile and the merchant profiles stored within the database.

9. A system according to claim 8 wherein each merchant profile comprises card numbers corresponding to each financial transaction card used by a customer in at least one transaction with the merchant.

10. A system according to claim 8 wherein each merchant profile comprises a card number, a name of a cardholder, and cardholder demographics for each financial transaction card used in at least one transaction with the merchant.

11. A system according to claim 8 wherein said server system further configured to determine a violator merchant profile describing a customer community for a violator merchant, the violator merchant using the financial transaction card network to engage in transactions involving a sale of at least one of illegal pharmaceuticals, pornography and terrorism-related products.

12. A system according to claim 8 wherein said server system further configured to determine whether a predetermined degree of correlation exists between the violator merchant profile and any of the merchant profiles stored within the database.

13. A system according to claim 8 wherein said server system further configured to:

store violator merchant profiles in the database based on a type of violation including at least one of pharmaceutical violation, pornography violation and terrorism violation;

automatically compare, on a predetermined basis, the violator merchant profiles to the merchant profiles including determining whether a predetermined degree of correlation exists therebetween; and

generate a list of potential violator merchants based on the comparison including organizing each potential violator merchant listed by violation type.

14. A system according to claim 13 wherein said server system further configured to display a list of potential violator merchants, wherein each displayed violator merchant further includes information relating to the merchant including an acquirer ID number, a merchant ID number, a merchant name, a merchant location, a merchant category code (MCC), a number of violation profiles matched, a probable type of violation, and a maximum degree of correlation.

15. A computer coupled to a database for assessing sales activity of a merchant including purchases made by a customer using a financial transaction card over a financial transaction card network, said computer programmed to:

store within the database a plurality of merchant profiles, each merchant profile describing a customer community of the corresponding merchant utilizing the financial transaction card network;

determine a violator merchant profile based on a customer community associated with a violator merchant, the violator merchant using the financial transaction card network to engage in at least one of illegal, potentially illegal and undesirable sales activities with at least a portion of the associated customer community;

compare the violator merchant profile to each merchant profile stored within the database; and

determine whether to investigate at least one potential violator merchant based on the comparison between the violator merchant profile and the merchant profiles stored within the database.

16. A computer according to claim 15 wherein each merchant profile comprises card numbers corresponding to each financial transaction card used by a customer in at least one transaction with the merchant.

17. A computer according to claim 15 wherein each merchant profile comprises a card number, a name of a cardholder, and cardholder demographics for each financial transaction card used in at least one transaction with the merchant.

18. A computer according to claim 15 wherein said computer further programmed to determine a violator merchant profile describing a customer community for a violator merchant, the violator merchant using the financial transaction card network to engage in transactions involving a sale of at least one of illegal pharmaceuticals, pornography and terrorism-related products.

19. A computer according to claim 15 wherein said computer further programmed to determine whether a predetermined degree of correlation exists between the violator merchant profile and any of the merchant profiles stored within the database.

20. A computer according to claim 15 wherein said computer further programmed to:

store violator merchant profiles in the database based on a type of violation including at least one of pharmaceutical violation, pornography violation and terrorism violation;

automatically compare, on a predetermined basis, the violator merchant profiles to the merchant profiles including determining whether a predetermined degree of correlation exists therebetween; and

generate a list of potential violator merchants based on the comparison including organizing each potential violator merchant listed by violation type.

21. A computer according to claim 20 wherein said computer further programmed to display a list of potential violator merchants, wherein each displayed violator merchant further includes information relating to the merchant including an acquirer ID number, a merchant ID number, a merchant name, a merchant location, a merchant category code (MCC), a number of violation profiles matched, a probable type of violation, and a maximum degree of correlation.

22. A computer program embodied on a computer readable medium for assessing sales activity of a merchant including purchases made by a customer using a financial transaction card over a financial transaction card network, said program comprising at least one code segment that:

stores within a database a plurality of merchant profiles, each merchant profile describing a customer community of the corresponding merchant utilizing the financial transaction card network;

determines a violator merchant profile based on a customer community associated with a violator merchant, the violator merchant using the financial transaction card network to engage in at least one of illegal, potentially illegal and undesirable sales activities with at least a portion of the associated customer community;

compares the violator merchant profile to each merchant profile stored within the database; and

identifies at least one potential violator merchant for further investigation based on the comparison between the violator merchant profile and the merchant profiles stored within the database.

23. A computer program in accordance with claim 22 further comprising at least one code segment that stores within the database a plurality of merchant profiles, wherein each merchant profile comprises at least one of a card number, a name of a cardholder, and cardholder demographics for each financial transaction card used in at least one transaction with the merchant.

24. A computer program in accordance with claim 22 further comprising at least one code segment that determines whether a predetermined degree of correlation exists between the violator merchant profile and any of the merchant profiles stored within the database.

25. A computer program in accordance with claim 22 further comprising at least one code segment that:

stores violator merchant profiles in the database based on a type of violation including at least one of pharmaceutical violation, pornography violation and terrorism violation;

automatically compares, on a predetermined basis, the violator merchant profiles to the merchant profiles including determining whether a predetermined degree of correlation exists therebetween; and

generates a list of potential violator merchants based on the comparison including organizing each potential violator merchant listed by violation type.