SYSTEM AND METHOD FOR FACILITATING A FINANCIAL TRANSACTION WITH A DYNAMICALLY GENERATED IDENTIFIER

• US 20110040640A1
• Filed: 10/27/2010
• Published: 02/17/2011
• 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 8,086,493 B2
• Time in Patent Office: Days
• US Class Current: 705/18
• 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 transaction, said method comprising:

receiving, by a merchant computer system having a processor and non-transitory memory, a request message for a transaction, wherein said request message includes a code as part of said request message;

transmitting, by said merchant computer system, at least a portion of said request message to an authorization system in a pre-existing data message comprising said code, wherein said authorization system authenticates said code;

receiving, by said merchant computer system, a response from said authorization system in a pre-existing data message indicating that said code is a valid dynamically generated code comprising four digit batch code (4DBC), wherein said response includes an authorization code related to said transaction and indicative of said authorization being based on validation of said dynamically generated code; and

completing, by said merchant computer system, said transaction.

2. The method of claim 1, wherein said merchant computer system does not know a type of said code within said request message.

3. The method of claim 1, wherein said pre-existing data message is at least one of:

a four digit card security code (4CSC), or a three digit card security code (3CSC).

4. The method of claim 1, wherein said code is entered into a pre-existing card identifier (CID) field of an electronic payment form.

5. The method of claim 1, wherein said response confirms an allocation to an issuer of a fraud risk associated with said transaction.

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

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

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

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

9. The method of claim 8, wherein said code is automatically captured by a point of sale system.

10. The method of claim 9, wherein said 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.

11. The method of claim 1, wherein said code is retrieved from a preexisting field of said electronic payment form.

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

receiving, by a host computer having a processor and non-transitory memory, at least a portion of a request message to authorize a transaction from a merchant server, wherein said request message includes a code, and wherein said code is in a pre-existing data message;

authorizing, by said host computer, said code as a valid dynamically generated code comprising a four digit batch code (4DBC); and

transmitting, by said host computer, said authorization of said dynamically generated code to said merchant server in a pre-existing data message, wherein said authorization includes an authorization code related to said transaction and indicative of said dynamically generated code being valid, and said authorization being based on validation of said dynamically generated code.

13. The method of claim 12, wherein said code is retrieved from a preexisting field of an electronic payment form.

14. The method of claim 12, wherein said code is entered into a pre-existing card identifier (CID) field of an electronic payment form.

15. The method of claim 12, wherein said merchant server does not know a type of said code within said request message.

16. The method of claim 12, further comprising adjusting, by said host computer, a fraud risk associated with said transaction based upon said dynamically generated code.

17. The method of claim 12, wherein said authorization code confirms allocation to an issuer of a fraud risk associated with said transaction.

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

generating, by a personal computing device having a processor and non-transitory memory, a code; and

,

sending, by said personal computing device, a request message in a pre-existing data message to a merchant computer system for a transaction, wherein said request message includes said code, and wherein said merchant computer system transmits at least a portion of said request message to an authorization system in a pre-existing data message and receives a response from said authorization system in a pre-existing data message indicating that said code is valid dynamically generated code comprising a four digit batch code (4DBC) before completing said transaction, and wherein said response includes an authorization code related to said transaction and said dynamically generated code being valid, and indicative of said authorization being based on said dynamically generated code.

19. The method of claim 18, wherein said generating comprises generating said code via at least one of:

a hardware token and a software token.

20. The method of claim 18, wherein said code is entered into a pre-existing card identifier (CID) field of an electronic payment form.