PRODUCT LEVEL PAYMENT NETWORK ACQUIRED TRANSACTION AUTHORIZATION

• US 20100100484A1
• Filed: 12/28/2009
• Published: 04/22/2010
• Est. Priority Date: 01/04/2005
• Status: Active Grant

• Current Assignee: Visa USA, Inc. (Visa, Inc.)
• Original Assignee: Visa USA, Inc. (Visa, Inc.)
• Inventors: Pruitt, Janet, Nguyen, Loc, Pourfallah, Stacy
• Granted Patent: US 8,560,446 B2
• Time in Patent Office: Days
• US Class Current: 705/44
• CPC Class Codes: G06Q 10/10 Office automation; Time management
• 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 20/40 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 20/405 Establishing or using transaction specific rules
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A flexible spending account system can be implemented according to one embodiment of the invention so as to automatically substantiate purchases made at a retailer merchant. For example, according to one embodiment of the invention, a method of authorizing products for purchase can be implemented by determining via a computer that a product requested for purchase at a point of sale by a consumer matches a qualified product category under the flexible spending account, sending an authorization request message for requesting use of said flexible spending account of said consumer, wherein said authorization request message comprises a total purchase amount field and a first qualified amount field for a first type of qualified items.

Claims

1. A method comprising a plurality of steps, each said step being performed by one or more network apparatuses by the execution of software, wherein the steps include:

receiving, at an address of an issuer of an account, a payment network authorization request message that includes;

an account identifier for an account being used to conduct a transaction on the account with a merchant;

an item code corresponding to an item to be purchased in the transaction from the merchant; and

an address of the merchant;

and

determining, using the payment network authorization request message, that the account identifier is valid by matching the account identifier against a stored set of account identifiers, and if so then;

determining that the item code matches a qualified item category under the account, and if so then;

sending, in response to the payment network authorization request message, an authorization response from the address of the issuer for delivery, over a payment network, to the address of the merchant.

2. The method as defined in claim 1, wherein said payment network authorization request message further comprises, for each of a plurality of different said items, the item code for the respective said item.

3. The method as defined in claim 1, wherein the payment network includes an acquirer for the merchant from whom the merchant receives delivery of the authorization response.

4. The method as defined in claim 1, wherein the steps further comprise:

receiving a plurality of said payment network authorization request messages at the address of the issuer of said account;

grouping the payment network authorization request messages that are each associated with the account as a set of transaction records; and

sending said set of said transaction records from an address of said issuer to an address of an auditor.

5. The method as defined in claim 1, wherein the steps further comprise appending said payment network authorization request message to a payment network settlement record.

6. The method as defined in claim 5, wherein the steps further comprise utilizing said payment network settlement record to complete payment for the transaction while forwarding said payment network authorization request message to an address of an auditor for monitoring account compliance.

7. The method as defined in claim 1, wherein the steps further comprise receiving the authorization response at an electronic Point Of Service terminal (POS).

8. The method as defined in claim 1, wherein the steps further comprise completing a sale of other said items requested for purchase in the transaction.

9. The method as defined in claim 1, wherein the step of sending the authorization response from the address of the issuer for delivery, over the payment network, to the address of the merchant further comprises:

sending the authorization response from the address of the issuer to the address of a payment network system;

sending the authorization response from the address of the payment network system to the address of an acquirer for the merchant; and

sending the authorization response from the address of the acquirer for the merchant to the address of the merchant.

10. A method comprising a plurality of steps, each said step being performed by one or more network apparatuses by the execution of software, wherein the steps include:

receiving, at an address of an acquirer for a merchant, a payment network authorization request message that includes;

an employee benefit account identifier for an employee benefit account;

an address of a merchant; and

a product inventory code for each of a plurality of different products;

sending the payment network authorization request message from the address of the acquirer for the merchant to an address of a payment network system;

sending the payment network authorization request message from the address of the payment network system to an address of an issuer of the employee benefit account;

determining, using the payment network authorization request message, that the employee benefit account identifier is valid by matching the employee benefit account identifier against a stored set of employee benefit account identifiers, and if so then for each of the respective said products;

determining that each of the product inventory codes in the payment network authorization request message matches a qualified product category under the employee benefit account, and if so then;

sending, in response to the payment network authorization request message, an authorization response from the address of the issuer to the address of the payment network system, wherein the authorization response includes an authorization for the use of the employee benefit account for a payment transaction;

sending the authorization response from the address of the payment network system to the address of the acquirer for the merchant; and

sending the authorization response from the address of the acquirer for the merchant to the address of the merchant.

11. The method as defined in claim 10, wherein the steps further comprise utilizing said payment network authorization request message to monitor compliance with terms of said employee benefit account.

12. The method as defined in claim 10, wherein the steps further comprise:

preparing a transaction record of said payment transaction; and

sending said transaction record to an address of an auditor of said employee benefit account.

13. The method as defined in claim 12, wherein the steps further comprise:

receiving a plurality of said transaction records from a plurality of said merchants at the issuer of said employee benefit account;

grouping the transaction records received from said plurality of said merchants and associated with the employee benefit account as a set of said transaction records; and

sending said set of said transaction records from the address of said issuer to the address of the auditor.

14. The method as defined in claim 12, wherein the steps further comprise:

appending said transaction record to a payment network settlement record; and

sending the transaction record to the address of the issuer.

15. The method as defined in claim 14, wherein the steps further comprise utilizing said payment network settlement record to complete payment for the payment transaction while forwarding said transaction record to the address of the auditor for monitoring employee benefit account compliance.

16. The method as defined in claim 13, wherein the steps further comprise utilizing said transaction record to monitor compliance with terms of said employee benefit account.

17. The method as defined in claim 10, wherein the payment network authorization request message received at the address of the acquirer for the merchant was sent from the address of the merchant.

18. A method comprising a plurality of steps, each said step being performed by one or more network apparatuses by the execution of software, wherein the steps include:

receiving, at an address of an acquirer for a merchant, data in a transaction record that includes;

an identifier for an employee benefit account; and

a product description field for a product;

sending data in the transaction record from the address of the acquirer for the merchant to an address of a payment network system;

sending data in the transaction record from the address of the payment network system to an address of an issuer of the employee benefit account;

sending data in the transaction record from the address of the issuer to an address of an agent of the issuer;

determining, by the agent of the issuer using predetermined program compliance rules for the employee benefit account, whether a transaction with a consumer for a purchase of the product with the employee benefit account is permissible;

sending an authorization response from the address of the issuer to the address of the payment network system, wherein the authorization response includes an indicator whether the transaction is permissible from the determination;

sending the authorization response from the address of the payment network system to the address of the acquirer for the merchant; and

sending the authorization response from the address of the acquirer for the merchant to the address of the merchant.

19. The method as defined in claim 18, wherein the payment network authorization request message received at the address of the acquirer for the merchant was sent from the address of the merchant.

20. The method as defined in claim 18, wherein the steps further comprise utilizing said transaction record to monitor compliance with terms of said employee benefit account.