AUTHENTICATION DEVICE THAT ENABLES TRANSACTIONS WITH A PAYMENT INSTRUMENT

• US 20160189154A1
• Filed: 12/31/2014
• Published: 06/30/2016
• Est. Priority Date: 12/31/2014
• Status: Active Grant

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: eBay Inc.
• Inventors: Eramian, David Edward, Voege, Michael
• Granted Patent: US 10,943,237 B2
• Time in Patent Office: Days
• US Class Current: 1/1
• CPC Class Codes: G06Q 20/4014 Identity check for transactions
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 20/405 Establishing or using transaction specific rules

Abstract

Embodiments of systems and methods are provided for an authentication device that enables transactions with a payment instrument at different limitations, restrictions and/or use conditions. In an embodiment, a system comprises a receiver configured to receive, through an authentication device, authentication information associated with a user of the authentication device or with a payment instrument, wherein the payment instrument communicates with the authentication device, and the payment instrument has a first limitation that does not need pre-authorization. The system also comprises a payment instrument authorization module implemented by at least one hardware processor operatively connected to the receiver, the hardware processor(s) configured to: determine validity of the received authentication information; authorize a second limitation for the payment instrument based on the validity of the received authentication information; and communicate, to the authentication device or to a an entity device, authorization information for the payment instrument at the second limitation.

Claims

1. A system comprising:

a receiver configured to receive, through an authentication device, authentication information associated with a user of the authentication device or with a payment instrument, wherein the payment instrument communicates with the authentication device, and the payment instrument has a first limitation that does not need pre-authorization; and

a payment instrument authorization module implemented by at least one hardware processor operatively connected to the receiver, the hardware processor(s) configured to;

determine validity of the received authentication information;

authorize a second limitation for the payment instrument based on the validity of the received authentication information; and

communicate, to the authentication device or to a an entity device, authorization information for the payment instrument at the second limitation.

2. The system of claim 1, wherein the first limitation further comprises a first funding limit and the authorized second limitation further comprises a second funding limit that is higher than the first funding limit.

3. The system of claim 1, wherein the first limitation further comprises a specified number of uses of the payment instrument and the authorized second limitation further comprises a higher number of uses than the specified number of uses of the payment instrument.

4. The system of claim 1, wherein the first limitation further comprises a specified time limit and the authorized second limitation further comprises a longer time limit than the specified time limit.

5. The system of claim 1, wherein the first limitation further comprises a specified geographical area or one or more specified business locations, and the authorized second limitation further comprises a larger geographical area than the specified geographical area or additional business locations than the one or more specified business locations.

6. The system of claim 1, wherein the authentication device further comprises a money clip, a wristband, a piece of jewelry, a wearable device including a watch or eyeglasses, or a device built into a wallet, luggage, a purse, or other user carrying case.

7. The system of claim 1, wherein the authentication device is built into the payment instrument itself, and the payment instrument comprises an authentication input user interface adapted to receive authentication information associated with the user.

8. The system of claim 1, wherein the authentication device further comprises an input device that includes one or more components for authentication including at least one of a scanner, biometrics, an image capturing device, a gesture recognition module, a voice or audio recognition module or an interface including a keyboard, a keypad, or a touch screen adapted to receive an identifier from a user.

9. The system of claim 1, wherein the authentication device further comprises a mobile device, wherein the mobile device itself includes an input configured to receive authentication information from the user.

10. The system of claim 1, wherein the first limitation is pre-defined and requires no additional user actions.

11. The system of claim 1, wherein the authentication device further comprises hardware including a docking mechanism adapted to dock with the payment instrument.

12. A method comprising:

receiving, electronically by a processor, through an authentication device, authentication information associated with a user of the authentication device or with a payment instrument, wherein the payment instrument communicates with the authentication device, and the payment instrument has a first limitation that does not need pre-authorization;

determining, electronically by the processor, validity of the received authentication information;

authorizing, electronically by the processor, a second limitation for the payment instrument based on the validity of the received authentication information; and

communicating, electronically by the processor, to the authentication device or to an entity device, authorization information for the payment instrument at the second limitation.

13. The method of claim 12, wherein the first limitation further comprises a first funding limit, the method further comprising:

activating the payment instrument for the second limitation, wherein the second limitation further comprises an authorized funding limit that is higher than the first funding limit.

14. The method of claim 12, further comprising:

declining authorization for the payment instrument at the second limitation based on determining that the received authentication information is not valid.

15. The method of claim 12, wherein the determining the validity of the received authentication information further comprises comparing the received authentication information to information maintained in a database comprising user information associated with the user.

16. The method of claim 12, wherein the authentication information further comprises at least one of biometric information, gesture information, image information, audio information, or a user identifier.

17. The method of claim 12, further comprising:

placing the payment instrument in a mode for the second limitation based on the validity of the received authentication information, the second limitation further comprising at least one restriction or use condition including at least one of a time limit, a number of uses, a geographical area or a business location.

18. The method of claim 12, further comprising:

effecting a transaction using the payment instrument at the authorized second limitation.

19. The method of claim 12, wherein the first limitation comprises a first funding limit and the second limitation comprises a second funding limit that is higher than the first funding limit, such that the payment instrument is authorized in connection with purchasing a product that costs up to an amount that is higher than the first funding limit.

20. An authentication device comprising:

hardware configured to communicate with a payment instrument, wherein the payment instrument has a first limitation;

an input device configured to receive, from a user of the authentication device, a request in connection with a transaction for a second limitation along with authentication information associated with the user or the payment instrument;

at least one communication module that communicates with a remote server and with the payment instrument, wherein the at least one communication module is adapted to transmit the received request and the authentication information to the remote server, and receive authorization information for the payment instrument from the remote server, and wherein the at least one communication module is adapted to communicate the authorization information to the payment instrument for the second limitation; and

an authentication module configured to authenticate the payment instrument at the authorized second limitation.