Transaction system with off-line risk assessment
First Claim
1. A system wherein an issuer of transaction cards can influence the type of transactions that can be approved at the point of transaction, said system comprising:
- primary processor means including a file means containing cardholder information, supplied by the issuer, for evaluating a transaction;
a transaction card carrying data identifying the cardholder, said card further including nonmonetary data supplied by the issuer and representative of risk assessment information associated with the cardholder; and
remote terminal means located at the point of transaction and connected to said primary processor means, said terminal means having monetary data stored therein, said terminal means having a means for reading the data carried on said card and a means for entering the amount of the transaction, said terminal means further including a remote processor means for deriving a transaction dollar limit based on the risk assessment information carried on said card and the monetary data stored in the terminal means, with said remote processor means comparing the transaction amount and the derived transaction dollar limit to determine if the transaction can be approved locally at the terminal or should be forwarded to the primary processor for further evaluation.
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Accused Products
Abstract
The subject invention relates to a transaction system wherein the issuer of transaction cards can regulate the type of authorization requests transmitted from the point of transaction. The system includes a plurality of transaction cards, each of which are provided with risk assessment data associated with each cardholder. The system further includes a plurality of terminals, each terminal having the ability to read the information placed on the transaction cards. In operation, the risk assessment data is compared to the transaction amount by the terminal. If the transaction is approved, the terminal will issue an automatic, off-line authorization. If the transaction does not fall within the approval range, the terminal will function to transmit the transaction information to the issuer for evaluation. The issuer can then determine whether to authorize the transaction based on its own data base.
291 Citations
9 Claims
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1. A system wherein an issuer of transaction cards can influence the type of transactions that can be approved at the point of transaction, said system comprising:
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primary processor means including a file means containing cardholder information, supplied by the issuer, for evaluating a transaction; a transaction card carrying data identifying the cardholder, said card further including nonmonetary data supplied by the issuer and representative of risk assessment information associated with the cardholder; and remote terminal means located at the point of transaction and connected to said primary processor means, said terminal means having monetary data stored therein, said terminal means having a means for reading the data carried on said card and a means for entering the amount of the transaction, said terminal means further including a remote processor means for deriving a transaction dollar limit based on the risk assessment information carried on said card and the monetary data stored in the terminal means, with said remote processor means comparing the transaction amount and the derived transaction dollar limit to determine if the transaction can be approved locally at the terminal or should be forwarded to the primary processor for further evaluation. - View Dependent Claims (2, 3, 4, 5, 6, 7)
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8. A method of operating a transaction system, said transaction system including a primary processor for evaluating transactions, a plurality of transaction cards, each card carrying data identifying the cardholder and nonmonetary data based on a risk assessment of the cardholder, said system further including a terminal located at the point of the transaction and having data entry capabilities, said terminal having monetary data stored therein, said monetary data being unrelated to the risk assessment of individual cardholders, said method comprising the steps of;
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entering the cardholder identification and nonmonetary data from the card into the terminal; entering the amount of the transaction into the terminal; deriving a transaction dollor limit based on the nonmonetary data from the card which corresponds to the risk assessment of the cardholder and the monetary data from the terminal which is unrelated to the risk assessment of the cardholder; and comparing the amount of the transaction and the derived transaction dollor limit to determine if the transaction can be approved locally at the terminal or should be forwarded to the primary processor for further evaluation. - View Dependent Claims (9)
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Specification