PROOF-OF-VERIFICATION NETWORK FOR THIRD PARTY ISSUERS
First Claim
1. A point-of-sale system that is configured to dynamically select an authorization method for a transaction initiated by a customer that presents a payment instrument to a merchant, the system 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;
presents an offer of a payment guarantee to the merchant;
when the merchant accepts the offer of the payment guarantee;
transmits the transaction for authorization to a provider of the payment guarantee;
determines a level of authorization for the transaction;
transmits the level of authorization to the merchant; and
in response to receiving, from the merchant, information required by the level authorization, authorizing the transaction and associating the transaction with the payment guarantee; and
when the merchant declines the offer of the payment guarantee, submits the transaction to an issuer associated with the payment instrument for authorization.
1 Assignment
0 Petitions
Accused Products
Abstract
Apparatus and methods for allocating transaction liability are provided. A first transaction participant may be immunized from undesirable effects of fraud/chargebacks associated with a transaction if information responsive to a level of verification is submitted directly to a second transaction participant. The transaction may be an on-us transaction or may be associated with any issuer. The second transaction participant may include a payment guarantee provider. The information may be routed to the second transaction participant via a proof-of-verification network. Transactions that are associated with a level of verification may be subject to variable interchange rates. The interchange rates or level of immunization from fraud/chargeback may vary with respect to the level of verification performed by the first transaction participant.
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Citations
20 Claims
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1. A point-of-sale system that is configured to dynamically select an authorization method for a transaction initiated by a customer that presents a payment instrument to a merchant, the system 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; presents an offer of a payment guarantee to the merchant; when the merchant accepts the offer of the payment guarantee; transmits the transaction for authorization to a provider of the payment guarantee; determines a level of authorization for the transaction; transmits the level of authorization to the merchant; and in response to receiving, from the merchant, information required by the level authorization, authorizing the transaction and associating the transaction with the payment guarantee; and when the merchant declines the offer of the payment guarantee, submits the transaction to an issuer associated with the payment instrument for authorization. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8)
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9. A transaction authorization system comprising 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 network for a transaction, the method comprising:
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receiving a request from a customer to initiate the transaction as a payment for a purchase of goods from a merchant; when the merchant is registered with a provider for a payment guarantee on the transaction; bypassing an authorization process of an issuer associated with the payment instrument; submitting the transaction for authorization to the provider of the payment guarantee; receiving, from the provider, a level of authorization for the transaction; transmitting the level of authorization to the merchant; and in response to receiving from the merchant information required by the level authorization, authorizing the transaction and associating the transaction with the payment guarantee; and when the merchant is not registered for the payment guarantee on the transaction, submitting the transaction to the issuer associated with the payment instrument for authorization. - View Dependent Claims (10, 11, 12, 13, 14, 15)
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16. An article of manufacture comprising a computer usable medium having computer readable program code embodied therein for providing a merchant with liability protection for a purchase initiated by a customer using a payment instrument, the computer readable program code in said article of manufacture when executed by a processor:
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generates a transaction record comprising; an identity of the payment instrument; an issuer associated with the payment instrument; a transaction processing network associated with the payment instrument; an acquirer bank of the merchant; a value of the purchase; and a location of the purchase; transmits the transaction record to a provider of the liability protection determines a fee for providing the liability protection to the merchant based on the value and the location; determines a plurality of verification requirements, each of the verification requirements associated with a reduction in an amount of the fee; presents the plurality of verification requirements and the fee to the merchant; receives from the merchant information responsive to at least one of the plurality of verification requirements; and in response to receiving from the merchant the information responsive to the at least one of the plurality of verification requirements; authorizes the purchase; associates the purchase with the liability protection; and reduces the fee imposed on the merchant based on the reduction corresponding to the at least one of the plurality of verification requirements. - View Dependent Claims (17, 18, 19, 20)
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Specification