METHODS FOR RISK MANAGEMENT IN PAYMENT-ENABLED MOBILE DEVICE

• US 20110112918A1
• Filed: 10/29/2010
• Published: 05/12/2011
• Est. Priority Date: 11/06/2009
• Status: Active Grant

• Current Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Original Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Inventors: Carter, Ronald D., Mestré, Patrick, Radu, Cristian, Phillips, Simon, Vanneste, Paul
• Granted Patent: US 9,240,005 B2
• Time in Patent Office: Days
• US Class Current: 705/16
• CPC Class Codes: G06Q 20/16 Payments settled via telecommunication systems
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/204 comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit
• CPC Class Codes: G06Q 20/28 Pre-payment schemes, e.g. "pay before"
• CPC Class Codes: G06Q 20/3265 characterised by personalisation for use
• CPC Class Codes: G06Q 20/3278 RFID or NFC payments by means of M-devices
• CPC Class Codes: G06Q 20/3433 the counter having monetary units
• CPC Class Codes: G06Q 20/349 Rechargeable cards
• CPC Class Codes: G06Q 20/381 Currency conversion
• 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 20/4012 Verifying personal identification numbers [PIN]
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 20/409 Device specific authentication in transaction processing
• CPC Class Codes: G07F 7/1025 Identification of user by a PIN code

Abstract

A payment-enabled mobile device such as a “smart phone” incorporates risk management features that are applicable to its use in contactless payment transactions. Some features may govern when verification of the cardholder'"'"'s identity is required for consummation of the current transaction. The features may be configurable by the payment card account issuer and/or the user of the mobile device.

Claims

1. A payment-enabled mobile device, comprising:

at least one processor;

a memory, in communication with the at least one processor, and storing a payment application program;

an antenna; and

a transceiver, coupled to the antenna, for exchanging wireless signals via the antenna with a proximity reader component of a point of sale (POS) terminal;

the transceiver operating under control by the at least one processor and the payment application program;

wherein the payment application program controls the at least one processor such that;

(a) for a first class of transactions, the mobile device consummates a current transaction on a first tap of the mobile device on the proximity reader component;

(b) for a second class of transactions, different from the first class of transactions;

after a first tap of the mobile device on the proximity reader component, the mobile device requires a user of the mobile device to enter an acknowledgement signal into the mobile device and then consummates the current transaction, after entry of the acknowledgement signal, on a second tap of the mobile device on the proximity reader component; and

(c) for a third class of transactions different from the first and second classes of transactions;

after a first tap of the mobile device on the proximity reader component, the mobile device requires a user of the mobile device to enter a personal identification number (PIN) into the mobile device and then consummates the current transaction, after verification of the PIN by the mobile device, on a second tap of the mobile device on the proximity reader component.

2. The payment-enabled mobile device of claim 1, wherein:

the first class of transactions consists of transactions below a first monetary amount threshold;

the second class of transactions consists of transactions between the first monetary amount threshold and a second monetary amount threshold that is higher than the first monetary amount threshold; and

the third class of transactions consists of transactions above the second monetary amount threshold.

3. The payment-enabled mobile device of claim 1, wherein the payment-enabled mobile device is a mobile telephone that includes a microphone and a speaker.

4. The payment-enabled mobile device of claim 1, wherein the user is allowed to enter the acknowledgement signal by actuating a button on the mobile device.

5. The payment-enabled mobile device of claim 4, wherein the button on the mobile device is a virtual button presented on a touchscreen that is part of the mobile device.

6. The payment-enabled mobile device of claim 1, wherein the user is allowed to enter the PIN by actuating a keypad on the mobile device.

7. The payment-enabled mobile device of claim 4, wherein the keypad on the mobile device is a virtual keypad presented on a touchscreen that is part of the mobile device.

8. A method of operating a payment-enabled mobile device, the method comprising:

consummating a current transaction on a first tap of the mobile device on a proximity reader component for a first class of transactions;

(b) for a second class of transactions, different from the first class of transactions;

after a first tap of the mobile device on the proximity reader component, requiring by the mobile device that a user of the mobile device enter an acknowledgement signal into the mobile device before consummating the current transaction on a second tap of the mobile device on the proximity reader component; and

(c) for a third class of transactions different from the first and second classes of transactions;

after a first tap of the mobile device on the proximity reader component, requiring by the mobile device that a user of the mobile device enter a personal identification number (PIN) into the mobile device before consummating the current transaction on a second tap of the mobile device on the proximity reader component.

9. The method of claim 8, wherein:

the first class of transactions consists of transactions below a first monetary amount threshold;

the second class of transactions consists of transactions between the first monetary amount threshold and a second monetary amount threshold that is higher than the first monetary amount threshold; and

the third class of transactions consists of transactions above the second monetary amount threshold.

10. The method of claim 8, wherein the payment-enabled mobile device is a mobile telephone that includes a microphone and a speaker.

11. A payment-enabled mobile device, comprising:

at least one processor;

a memory, in communication with the at least one processor, and storing a payment application program;

an antenna; and

a transceiver, coupled to the antenna, for exchanging wireless signals via the antenna with a proximity reader component;

the transceiver operating under control by the at least one processor and the payment application program;

wherein the payment application program is configurable by an issuer of a payment card account assigned to the user of the payment-enabled mobile device such that;

(a) for a first class of transactions;

the user is allowed to enter a personal identification number (PIN) before any communication occurs for a current transaction between the payment-enabled mobile device and the proximity reader component; and

for the current transaction the payment-enabled mobile device accepts pre-entry of the PIN; and

(b) for a second class of transactions, after a first tap of the mobile device on the proximity reader component, the mobile device requires a user of the mobile device to enter a personal identification number (PIN) into the mobile device and then consummates the current transaction, after verification of the PIN by the mobile device, on a second tap of the mobile device on the proximity reader component, and the mobile device does not accept pre-entry of the PIN;

said second class of transactions different from said first class of transactions.

12. The payment-enabled mobile device of claim 11, wherein the first class of transactions are with a first type of acceptance entity, and the second class of transactions are not with the first type of acceptance entity.

13. The payment-enabled mobile device of claim 12, wherein the first type of acceptance entity is a transit system operator.

14. The payment-enabled mobile device of claim 11, wherein the processor is programmed to allow the user to reconfigure the mobile device such that all transactions are treated as being in said second class of transactions.

15. A method of operating a payment-enabled mobile device with a proximity reader component, the method comprising:

for a first class of transactions;

allowing a user of the mobile device to enter a personal identification number (PIN) before any communication occurs for a current transaction between the mobile device and the proximity reader component; and

for the current transaction the payment-enabled mobile device accepting pre-entry of the PIN; and

for a second class of transactions, after a first tap of the mobile device on the proximity reader component, requiring by the mobile device that a user of the mobile device enter a personal identification number (PIN) into the mobile device and then consummating the current transaction on a second tap of the mobile device on the proximity reader component, and the mobile device does not accept pre-entry of the PIN;

said second class of transactions different from said first class of transactions.

16. The method of claim 15, wherein the first class of transactions are with a first type of acceptance entity, and the second class of transactions are not with the first type of acceptance entity.

17. The method of claim 15, wherein the first type of acceptance entity is a transit system operator.

18. A payment-enabled mobile device, comprising:

at least one processor;

a memory, in communication with the at least one processor, and storing a payment application program;

an antenna; and

a transceiver, coupled to the antenna, for exchanging wireless signals via the antenna with a proximity reader component;

the transceiver operating under control by the at least one processor and the payment application program;

wherein the payment application program controls the processor such that;

(a) for a first class of transactions, the mobile device consummates a current transaction on a first tap of the mobile device on the proximity reader component;

(b) for a second class of transactions, different from the first class of transactions;

after a first tap of the mobile device on the proximity reader component, the mobile device requires a user of the mobile device to enter at least one of an acknowledgement signal and a personal identification number (PIN) into the mobile device and then consummates the current transaction, after entry of the acknowledgement signal and/or PIN, on a second tap of the mobile device on the proximity reader component;

wherein said first class of transactions is defined as transactions in which the proximity reader component transmits a first currency indicator to the mobile device for the current transaction, and said second class of transactions is defined as transactions in which the proximity reader component transmits a second currency indicator to the mobile device for the current transaction, said second currency indicator different from said first currency indicator.

19. The method of claim 18, wherein one of said currency indicators is a null indicator.

20. The method of claim 18, wherein the first currency indicator indicates a home currency for the user, and the second currency indicator indicates a currency that is different from said home currency.

21. A method of operating a payment-enabled mobile device, the method comprising:

for a first class of transactions, consummating a current transaction on a first tap of the mobile device on the proximity reader component; and

for a second class of transactions, different from the first class of transactions;

after a first tap of the mobile device on the proximity reader component, requiring by the mobile device that a user of the mobile device enter at least one of an acknowledgement signal and a personal identification number (PIN) into the mobile device and then consummating the current transaction on a second tap of the mobile device on the proximity reader component;

wherein said first class of transactions is defined as transactions in which the proximity reader component transmits a first currency indicator to the mobile device for the current transaction, and said second class of transactions is defined as transactions in which the proximity reader component transmits a second currency indicator to the mobile device for the current transaction, said second currency indicator different from said first currency indicator.

22. The method of claim 21, wherein one of said currency indicators is a null indicator.

23. The method of claim 21, wherein the first currency indicator indicates a home currency for the user, and the second currency indicator indicates a currency that is different from said home currency.