PREDICTING APPROVAL OF TRANSACTIONS

• US 20140258118A1
• Filed: 03/05/2013
• Published: 09/11/2014
• Est. Priority Date: 03/05/2013
• Status: Active Grant

• Current Assignee: Block, Inc. (f/k/a Square, Inc.)
• Original Assignee: Square Inc (Block, Inc. (f/k/a Square, Inc.))
• Inventors: Scott, J. Bryan, Bhorania, Jevin C., Mason, Raymond Knight III, Poursartip, Ariana
• Granted Patent: US 9,911,110 B2
• Time in Patent Office: Days
• US Class Current: 705/44
• CPC Class Codes: G06F 21/316 by observing the pattern of computer usage, e.g. typical user behaviour
• CPC Class Codes: G06F 21/552 involving long-term monitoring or reporting
• 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 20/325 using wireless networks
• CPC Class Codes: G06Q 20/353 Payments by cards read by M-devices
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G07F 7/0886 the card reader being portable for interacting with a POS or ECR in realizing a payment transaction
• CPC Class Codes: G07F 7/127 in which both online and offline card verification can take place

Abstract

Method, systems, and apparatus for processing a payment transaction includes determining that a network connection between a first destination in a payment system and a second destination in a payment system does not satisfy a latency threshold; receiving data indicating a payment transaction between a customer and a merchant; determining whether the payment transaction should be stored, where the determining is based on a risk algorithm model that considers risk factors associated with data regarding the payment transaction, risk factors associated with data regarding the customer, and risk factors associated with data regarding the merchant; if the payment transaction should be stored: storing the payment transaction for future processing; displaying an indication that the payment transaction has been successfully processed; if the payment transaction should not be stored: attempting to send a request for authorization for the payment transaction at a payment service system included in the payment system.

Claims

1. A method of processing a payment transaction using a mobile device, comprising:

determining that a network connection between a first destination in a payment system and a second destination in a payment system does not satisfy a latency threshold;

receiving data indicating a payment transaction between a customer and a merchant;

determining whether the payment transaction should be stored, where the determining is based on a risk algorithm model that considers risk factors associated with data regarding the payment transaction, risk factors associated with data regarding the customer, and risk factors associated with data regarding the merchant;

if the payment transaction should be stored;

storing the payment transaction for future processing;

displaying, on the mobile device, an indication that the payment transaction has been successfully processed;

if the payment transaction should not be stored;

attempting to send a request for authorization for the payment transaction at a payment service system included in the payment system.

2. The method of claim 1, where the payment system includes one or more of the following destinations:

the mobile device, a payment service system, a card issuer, or a bank.

3. The method of claim 1, where determining whether the payment transaction should be stored, storing the payment transaction, and attempting to send the request for authorization occur on the mobile device.

4. The method of claim 3, further comprising:

after storing the payment transaction, determining the network connection satisfies the latency threshold;

determining the mobile device has one or more stored payment transactions; and

forwarding each of the stored payment transactions to the payment service system.

5. The method of claim 1, where determining whether the payment transaction should be stored, storing the payment transaction, and attempting to send the request for authorization occur at the payment service system.

6. The method of claim 5, further comprising:

after storing the payment transaction, determining the network connection satisfies the latency threshold;

determining the payment service system has one or more stored payment transactions; and

forwarding each of the stored payment transactions to a card issuer.

7. The method of claim 1, further comprising:

calculating a random wait time, where the random wait time is within a range of an average round trip time for a successfully processed transaction;

waiting the random wait time before displaying the indication.

8. The method of claim 1, where the risk factors associated with data regarding the payment transaction includes one or more of the following:

a value of the payment transaction, description of the transaction, itemization of the transaction, a type of transaction input, a signature, or an image of the transaction.

9. The method of claim 1, where the risk factors associated with data regarding the customer includes one or more of the following:

a number of already stored transactions, a total value, where the total value is a sum of the value of the payment transaction and values of one or more already stored transactions, prior transactions, a type of payment card, or customer account information, where the customer account information includes a name, contact information, or location of the customer.

10. The method of claim 1, where the risk factors associated with data regarding the merchant includes one or more of the following:

a classification of the merchant, merchant transaction history, merchant account information, where the merchant account information includes age, name, or contact information of the merchant, merchant location, locations of transactions conducted with the merchant, operating system of merchant device, or a type of the merchant'"'"'s financial account.

11. The method of claim 1, where the payment transaction is encrypted using a key before the storing, where the key is obtained from a payment service system.

12. The method of claim 1, further comprising determining whether the network connection satisfies the latency threshold after an interval of time.

13. The method of claim 1, where the network connection is a mobile data connection to the Internet.

14. The method of claim 1, where data associated with each of the risk factors is updated at the mobile device by the payment service system when the network connection satisfies the latency threshold.

15. The method of claim 1, where data associated with each of the risk factors is stored on the mobile device.

16. The method of claim 1, where the risk algorithm model is updated by the payment service system when the network connection satisfies the latency threshold.

17. A system comprising:

a processor; and

computer-readable medium coupled to the processor and having instructions stored thereon, which, when executed by the processor, cause the processor to perform operations comprising;

determining that a network connection between a first destination in a payment system and a second destination in a payment system does not satisfy a latency threshold;

receiving data indicating a payment transaction between a customer and a merchant;

determining whether the payment transaction should be stored, where the determining is based on a risk algorithm model that considers risk factors associated with data regarding the payment transaction, risk factors associated with data regarding the customer, and risk factors associated with data regarding the merchant;

if the payment transaction should be stored;

storing the payment transaction for future processing;

displaying, on the mobile device, an indication that the payment transaction has been successfully processed;

if the payment transaction should not be stored;

attempting to send a request for authorization for the payment transaction at a payment service system included in the payment system.

18. The system of claim 17, where the payment system includes one or more of the following destinations:

the mobile device, a payment service system, a card issuer, or a bank.

19. The system of claim 17, where determining whether the payment transaction should be stored, storing the payment transaction, and attempting to send the request for authorization occur on the mobile device.

20. The system of claim 19, further comprising:

after storing the payment transaction, determining the network connection satisfies the latency threshold;

determining the mobile device has one or more stored payment transactions; and

forwarding each of the stored payment transactions to the payment service system.

21. The system of claim 17, where determining whether the payment transaction should be stored, storing the payment transaction, and attempting to send the request for authorization occur at the payment service system.

22. The system of claim 21, further comprising:

after storing the payment transaction, determining the network connection satisfies the latency threshold;

determining the payment service system has one or more stored payment transactions; and

forwarding each of the stored payment transactions to a card issuer.

23. The system of claim 17, further comprising:

calculating a random wait time, where the random wait time is within a range of an average round trip time for a successfully processed transaction;

waiting the random wait time before displaying the indication.

24. The system of claim 17, where the risk factors associated with data regarding the payment transaction includes one or more of the following:

a value of the payment transaction, description of the transaction, itemization of the transaction, a type of transaction input, a signature, or an image of the transaction.

25. The system of claim 17, where the risk factors associated with data regarding the customer includes one or more of the following:

a number of already stored transactions, a total value, where the total value is a sum of the value of the payment transaction and values of one or more already stored transactions, prior transactions, a type of payment card, or customer account information, where the customer account information includes a name, contact information, or location of the customer.

26. The system of claim 17, where the risk factors associated with data regarding the merchant includes one or more of the following:

a classification of the merchant, merchant transaction history, merchant account information, where the merchant account information includes age, name, or contact information of the merchant, merchant location, locations of transactions conducted with the merchant, operating system of merchant device, or a type of the merchant'"'"'s financial account.

27. The system of claim 17, where the payment transaction is encrypted using a key before the storing, where the key is obtained from a payment service system.

28. The system of claim 17, further comprising determining whether the network connection satisfies the latency threshold after an interval of time.

29. The system of claim 17, where the network connection is a mobile data connection to the Internet.

30. The system of claim 17, where data associated with each of the risk factors is updated at the mobile device by the payment service system when the network connection satisfies the latency threshold.

31. The system of claim 17, where data associated with each of the risk factors is stored on the mobile device.

32. The system of claim 17, where the risk algorithm model is updated by the payment service system when the network connection satisfies the latency threshold.

33. A computer-readable medium having instructions stored thereon, which, when executed by a processor, cause the processor to perform operations comprising:

determining that a network connection between a first destination in a payment system and a second destination in a payment system does not satisfy a latency threshold;

receiving data indicating a payment transaction between a customer and a merchant;

determining whether the payment transaction should be stored, where the determining is based on a risk algorithm model that considers risk factors associated with data regarding the payment transaction, risk factors associated with data regarding the customer, and risk factors associated with data regarding the merchant;

if the payment transaction should be stored;

storing the payment transaction for future processing;

displaying, on the mobile device, an indication that the payment transaction has been successfully processed;

if the payment transaction should not be stored;

attempting to send a request for authorization for the payment transaction at a payment service system included in the payment system.

34. The computer-readable medium of claim 33, where the payment system includes one or more of the following destinations:

the mobile device, a payment service system, a card issuer, or a bank.

35. The computer-readable medium of claim 33, where determining whether the payment transaction should be stored, storing the payment transaction, and attempting to send the request for authorization occur on the mobile device.

36. The computer-readable medium of claim 35, further comprising:

after storing the payment transaction, determining the network connection satisfies the latency threshold;

determining the mobile device has one or more stored payment transactions; and

forwarding each of the stored payment transactions to the payment service system.

37. The computer-readable medium of claim 33, where determining whether the payment transaction should be stored, storing the payment transaction, and attempting to send the request for authorization occur at the payment service system.

38. The computer-readable medium of claim 37, further comprising:

after storing the payment transaction, determining the network connection satisfies the latency threshold;

determining the payment service system has one or more stored payment transactions; and

forwarding each of the stored payment transactions to a card issuer.

39. The computer-readable medium of claim 33, further comprising:

calculating a random wait time, where the random wait time is within a range of an average round trip time for a successfully processed transaction;

waiting the random wait time before displaying the indication.

40. The computer-readable medium of claim 33, where the risk factors associated with data regarding the payment transaction includes one or more of the following:

a value of the payment transaction, description of the transaction, itemization of the transaction, a type of transaction input, a signature, or an image of the transaction.

41. The computer-readable medium of claim 33, where the risk factors associated with data regarding the customer includes one or more of the following:

a number of already stored transactions, a total value, where the total value is a sum of the value of the payment transaction and values of one or more already stored transactions, prior transactions, a type of payment card, or customer account information, where the customer account information includes a name, contact information, or location of the customer.

42. The computer-readable medium of claim 33, where the risk factors associated with data regarding the merchant includes one or more of the following:

a classification of the merchant, merchant transaction history, merchant account information, where the merchant account information includes age, name, or contact information of the merchant, merchant location, locations of transactions conducted with the merchant, operating system of merchant device, or a type of the merchant'"'"'s financial account.

43. The computer-readable medium of claim 33, where the payment transaction is encrypted using a key before the storing, where the key is obtained from a payment service system.

44. The computer-readable medium of claim 33, further comprising determining whether the network connection satisfies the latency threshold after an interval of time.

45. The computer-readable medium of claim 33, where the network connection is a mobile data connection to the Internet.

46. The computer-readable medium of claim 33, where data associated with each of the risk factors is updated at the mobile device by the payment service system when the network connection satisfies the latency threshold.

47. The computer-readable medium of claim 33, where data associated with each of the risk factors is stored on the mobile device.

48. The computer-readable medium of claim 33, where the risk algorithm model is updated by the payment service system when the network connection satisfies the latency threshold.