Methods and systems for interactive check authorizations
DCFirst Claim
1. A method for interactively authorizing a form of payment for a transaction, comprising the steps of:
- providing an authorization host system including a negative file storing information indicative of the prior payment history and demographic information about selected persons;
communicating a first transaction packet from a transaction terminal to the authorization host system, the first transaction packet comprising transaction information;
at the authorization host system, determining, based on the first transaction packet, whether to elicit additional information by accessing the negative file with the transaction information contained in the first transaction packet;
at the authorization host system, in response to a determination to elicit additional information, communicating a prompt to the transaction terminal;
at the transaction terminal, in response to receipt of the prompt, displaying the prompt;
at the transaction terminal, in response to display of the prompt, receiving additional information entered into the transaction terminal;
at the transaction terminal, communicating a second transaction packet to the authorization host system, the second transaction packet comprising the additional information including demographic information;
storing the demographic information in the negative file;
at the authorization host system, determining whether to authorize or decline the transaction based on the additional information contained in the second transaction packet; and
communicating authorization indicia from the authorization host system to the transaction terminal.
9 Assignments
Litigations
0 Petitions
Accused Products
Abstract
A check acceptance system provides interactive authorizations and off-line terminal approvals. A merchant uses an interactive transaction terminal to communicate with a check acceptance service'"'"'s authorization host computer. The terminal includes an electronic check reader and a magnetic stripe reader for reading magnetic stripe drivers licenses. The terminal acquires transaction data associated with a pending check transaction. The transaction data is analyzed to determine whether the transaction can be approved by the terminal. If so, an approval code is generated and a transaction packet including the transaction data and terminal approval code are stored in the terminal until subsequent communication with the host computer. If the pending transaction is not approved by the terminal, the transaction data is transmitted to the host computer. The host computer applies a risk scoring algorithm to the data to determine whether the transaction should be approved, declined, or whether additional information is needed. If the transaction is approved or declined, a response packet including authorization indicia is transmitted to the terminal. If additional data is needed, the host computer transmits prompts to the terminal. The terminal displays the prompts and the merchant enters the requested data into the terminal. A new transaction packet including the original transaction data and the additional requested data is transmitted to the host computer, where it is approved or declined.
624 Citations
69 Claims
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1. A method for interactively authorizing a form of payment for a transaction, comprising the steps of:
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providing an authorization host system including a negative file storing information indicative of the prior payment history and demographic information about selected persons; communicating a first transaction packet from a transaction terminal to the authorization host system, the first transaction packet comprising transaction information; at the authorization host system, determining, based on the first transaction packet, whether to elicit additional information by accessing the negative file with the transaction information contained in the first transaction packet; at the authorization host system, in response to a determination to elicit additional information, communicating a prompt to the transaction terminal; at the transaction terminal, in response to receipt of the prompt, displaying the prompt; at the transaction terminal, in response to display of the prompt, receiving additional information entered into the transaction terminal; at the transaction terminal, communicating a second transaction packet to the authorization host system, the second transaction packet comprising the additional information including demographic information; storing the demographic information in the negative file; at the authorization host system, determining whether to authorize or decline the transaction based on the additional information contained in the second transaction packet; and communicating authorization indicia from the authorization host system to the transaction terminal. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 68, 69)
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9. A method for operating a transaction terminal to obtain authorization indicia from an authorization host computer, comprising the steps of:
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receiving transaction data entered into the transaction terminal at the point of sale; assembling a first transaction packet including the transaction data and interactive processing indicia indicative that the terminal is capable of interactive responses; transmitting the first transaction packet to the authorization host computer; receiving a first response packet from the authorization host computer; determining whether the first response packet includes a prompt signal; in response to a determination that the first response packet includes a prompt signal, displaying on a display associated with the transaction terminal a prompt corresponding to the prompt signal; receiving additional data corresponding to the prompt; assembling a second transaction packet including the additional data; transmitting the second transaction packet to the authorization host computer; receiving a second response packet from the authorization host computer; and utilizing an authorization indicia contained in the second response packet. - View Dependent Claims (10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21)
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22. A method for interactively authorizing a form of payment for a transaction at the point of sale, comprising the steps of:
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receiving transaction data entered into a transaction terminal at the point of sale, the transaction data being associated with a pending transaction; assembling in the transaction terminal a first transaction packet including the transaction data and an interactive processing indicia; transmitting the first transaction packet from the transaction terminal to an authorization host computer; at the authorization host computer, applying a risk scoring algorithm to at least a portion of the transaction data, the risk scoring algorithm providing a first transaction score;
in response to the first transaction score exceeding a predetermined approval value, assembling a first response packet including an approval code;in response to the first transaction score falling below the predetermined approval value, determining whether the transaction terminal is capable of interactive processing; in response to a determination that the transaction terminal is not capable of interactive processing, assembling first response packet including a decline code; in response to a determination that the transaction terminal is capable of interactive processing, assembling a first response packet including a prompt signal associated with a request for additional data; transmitting the first response packet to the transaction terminal; at the transaction terminal, receiving the first response packet from the authorization host computer; at the transaction terminal, determining whether the first response packet includes the prompt signal; at the transaction terminal, in response to a determination that the first response packet includes the prompt signal, displaying on a display associated with the transaction terminal a prompt corresponding to the prompt signal; receiving additional data entered into the transaction terminal, said additional data corresponding to the prompt; assembling in the transaction terminal a second transaction packet including the additional data; transmitting the second transaction packet from the transaction terminal to the authorization host computer; at the authorization host computer, receiving the second transaction packet; applying the risk scoring algorithm to at least a portion of the additional data the risk scoring algorithm providing a second transaction score; in response to said second transaction score exceeding a predetermined approval value, assembling a second response packet including an authorization indicia, the authorization indicia comprising an approval code; in response to the second transaction score falling below the predetermined approval value, assembling a second response packet including an authorization indicia, the authorization indicia comprising a decline code; transmitting the second response packet from the authorization host computer to the transaction terminal; at the transaction terminal, receiving the second response packet from the authorization host computer; and displaying on the display the authorization indicia contained in the second authorization packet. - View Dependent Claims (23, 24, 25, 26, 27, 28, 29, 30)
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31. An interactive point of sale transaction terminal, comprising:
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a display for prompting a merchant to enter transaction data into the terminal; a keypad for entering said transaction data into the terminal; a magnetic ink character recognition (MICR) reader for reading check data from a check presented by a customer; a communication port for communicating the transaction data and the check data to an authorization host computer system; and a controller operative for; assembling a first transaction packet including the transaction data, the check data and an interactive processing indicia; transmitting the first transaction packet to the authorization host computer; receiving a first response packet from the authorization host computer; determining whether the first response packet includes a prompt signal; in response to a determination that the first response packet includes a prompt signal, prompting the merchant to enter additional data into the terminal by displaying on the display a prompt corresponding to the prompt signal; assembling a second transaction packet including the additional data; transmitting the second transaction packet to the authorization host computer; receiving a second response packet from the authorization host computer; and displaying on the display an authorization indicia contained in the second response packet. - View Dependent Claims (32, 33, 34, 35, 36, 37, 38, 39)
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40. A method of operating an authorization host computer to receive a previously stored off-line transaction packet from a transaction terminal, comprising the steps of:
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receiving a first transaction packet from the transaction terminal, the first transaction packet including transaction data and a first flag indicating that the transaction terminal has a stored off-line transaction packet for transmission to the authorization host computer; determining that the first transaction packet includes the first flag; transmitting to the transaction terminal a response packet, the response packet including an authorization indicia responsive to the transaction data and a second flag indicating that the authorization host computer is ready to receive the stored off-line transaction packet from the transaction terminal; receiving the off-line transaction packet from the transaction terminal; and storing data associated with the off-line transaction packet. - View Dependent Claims (41, 42, 43)
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44. A method of operating a transaction system for providing payment authorization for a transaction at the point of sale, comprising the steps of:
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entering transaction data into a transaction terminal at the point of sale, the transaction data being associated with a pending transaction; determining whether to approve the pending transaction at the transaction terminal; in response to a determination to approve the pending transaction at the transaction terminal, displaying approval indicia at the transaction terminal; storing in a memory associated with the transaction terminal an off-line transaction packet including indicia of the transaction; in response to a determination that the pending transaction cannot be approved at the transaction terminal, transmitting a transaction packet to an authorization host computer for authorization, the transaction packet including at least a portion of the transaction data and a first flag indicating that the transaction terminal has a previously stored off-line transaction packet for transmission to the authorization host computer; at the authorization host computer, receiving the transaction packet from the transaction terminal; determining that the transaction packet includes the first flag; transmitting to the transaction terminal an authorization indicia responsive to the transaction data and a second flag indicating readiness of the authorization host computer to receive the stored off-line transaction packet from the transaction terminal; receiving the stored off-line transaction packet from the transaction terminal; and storing data associated with the stored off-line transaction packet in memory associated with the authorization host computer. - View Dependent Claims (45, 46, 47, 48, 49, 50, 51)
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52. A method for processing transactions and collecting customer identification data at the point of sale, comprising the steps of:
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providing at the point of sale a transaction terminal including a payment form reader and an identification card reader; obtaining payment data from the payment form reader, the payment data being associated with a payment form tendered by a customer in connection with a pending transaction; obtaining identification data from the identification card reader, the identification data being associated with an identification card presented by the customer; transmitting the payment data and the customer identification data to an authorization host computer; at the authorization host computer, transmitting to the transaction terminal a response packet including authorization indicia indicative of whether the pending transaction is authorized or declined; at the authorization host computer, determining whether the customer identification data is already present in a data base associated with the authorization host computer; and in response to a determination that the customer identification data is not already present in the data base, storing at least a portion of the customer identification data in the data base. - View Dependent Claims (53, 54, 55, 56, 57)
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58. A method for interactively conducting a transaction, comprising the steps of:
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communicating a first transaction packet from a transaction terminal to an authorization host system, the first transaction packet comprising initial transaction information and interactive indicia indicative of interactive response capability of the terminal; at the authorization host system, examining the interactive indicia to determine whether the transaction terminal is capable of providing interactive responses; at the authorization host system, in response to a determination that the terminal is capable of providing interactive responses, determining, based on the first transaction packet, whether to elicit additional information; at the authorization host system, in response to a determination to elicit additional information, communicating a prompt to the transaction terminal; at the transaction terminal, in response to receipt of the prompt, displaying the prompt; at the transaction terminal, in response to display of the prompt, receiving additional information entered into the transaction terminal; at the transaction terminal, communicating a second transaction packet to the authorization host system, the second transaction packet comprising the additional information; at the authorization host system, determining whether to authorize or decline the transaction based on the information contained in the second transaction packet; and communicating authorization indicia from the authorization host system to the transaction terminal. - View Dependent Claims (59, 60, 61, 62, 63, 64, 65, 66, 67)
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Specification