LOCATION BASED RISK MITIGATING TRANSACTION AUTHORIZATION
First Claim
1. A computer that is configured to dynamically select an authorization method for a debit transaction initiated by a customer at a point-of-sale using a payment instrument, the computer comprising:
- a non-transitory computer readable medium having computer readable program code embodied therein; and
a processor configured to execute the computer readable program code;
the computer readable program code when executed by the processor;
identifies the payment instrument as a debit card;
identifies a location of the point-of-sale;
determines, based on the location, a level of risk associated with the debit transaction;
selects an authorization method based on the level of risk;
transmits the selected authorization method to the point-of-sale;
in response to receiving information required by the selected authorization, associates the debit transaction with a payment guarantee provided by an issuer of the payment instrument; and
in response to a failure to receive the required information, does not associate the debit transaction with the payment guarantee.
1 Assignment
0 Petitions
Accused Products
Abstract
Apparatus and methods for risk mitigating transaction authorization are provided. A transaction participant may responds to a request for transaction authorization with “PIN Entry Required,” and restrict signature based transaction authorizations. The risk mitigating transaction authorization may be transmitted for a transaction based on a stock-keeping-unit of an item included in a purchase. The risk mitigating transaction authorization may be transmitted for a transaction based on an amount of the transaction. The risk mitigating transaction authorization may be transmitted for a transaction based on a merchant category code identifier assigned to a merchant and/or a location of a purchase.
21 Citations
24 Claims
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1. A computer that is configured to dynamically select an authorization method for a debit transaction initiated by a customer at a point-of-sale using a payment instrument, the computer comprising:
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a non-transitory computer readable medium having computer readable program code embodied therein; and a processor configured to execute the computer readable program code; the computer readable program code when executed by the processor; identifies the payment instrument as a debit card; identifies a location of the point-of-sale; determines, based on the location, a level of risk associated with the debit transaction; selects an authorization method based on the level of risk; transmits the selected authorization method to the point-of-sale; in response to receiving information required by the selected authorization, associates the debit transaction with a payment guarantee provided by an issuer of the payment instrument; and in response to a failure to receive the required information, does not associate the debit transaction with the payment guarantee. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17)
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18. One or more non-transitory computer-readable media storing computer-executable instructions which, when executed by a processor on a computer system, perform a method of dynamically selecting an authorization method for a debit transaction, the method comprising:
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receiving a request from a customer to initiate the debit transaction as payment for a purchase at a location; determining, for the location, a fraud investigation risk associated with the debit transaction; in response to determining that the fraud investigation risk exceeds a threshold risk level; requiring that the customer enter a personal-identification-number (“
PIN”
) associated with the payment instrument; andonly authorizing the debit transaction based on the PIN; and in response to determining that the fraud investigation risk does not exceed the threshold risk level; requiring that the customer provide a signature; and authorizing the debit transaction based on the signature. - View Dependent Claims (19, 20, 21, 22)
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23. An article of manufacture comprising a computer usable medium having computer readable program code embodied therein for authorizing a transaction initiated using a payment instrument, the computer readable program code in said article of manufacture when executed by a processor:
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determines whether the transaction is a credit transaction or a debit transaction; when the transaction is the debit transaction; identifies a location where the debit transaction is initiated; determines whether the location is associated with a threshold risk of incurring a post-authorization cost for the debit transaction; and when the location is associated with the threshold risk, only authorizes the debit transaction in response to receiving a personal-identification-number associated with the payment instrument; when the transaction is the credit transaction, authorizes the credit transaction in response to receiving; a personal-identification number-associated with the payment instrument;
ora signature. - View Dependent Claims (24)
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Specification