Dynamic payment cards and related management systems and associated methods

• US 7,319,986 B2
• Filed: 10/19/2001
• Issued: 01/15/2008
• Est. Priority Date: 09/28/1999
• Status: Expired due to Term

• Current Assignee: Bank of America Corp.
• Original Assignee: Bank of America Corp.
• Inventors: Leiserowitz, William R., Praisner, C. Todd, Holland, IV, James R., Kipp, Jr., Roy H., Balbach, Melissa T.
• Primary Examiner(s): Abdi, Kambiz
• Assistant Examiner(s): LIVERSEDGE, JENNIFER L
• Application Number:
  US10/083,445
• Publication Number:
  US 20020174030A1
• Time in Patent Office: 2,279 Days
• Field of Search: 705/39
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/3552 Downloading or loading of personalisation data
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 20/403 Solvency checks
• CPC Class Codes: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02
• CPC Class Codes: G07F 7/1008 Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system

Abstract

Dynamic payment cards and related dynamic payment card management systems and associated methods are disclosed that allow for the efficient management of corporate purchasing needs. The dynamic payment cards can be traditional payment cards with card control settings that are dynamically managed. In addition, a dynamic card management system can automatically interface with card processor systems to dynamically modify these card control settings, and a purchasing management system or other request and approval workflow engine can provide an interface between a company and the dynamic card management system. More generally, an advantageous solution for purchasing management is disclosed that utilizes dynamically or actively managed approval parameters to help control transaction authorization determinations associated with purchasing mechanisms. These dynamic approval parameters can be generated and/or managed through the application of configurable company purchasing policies and rules, and these dynamic approval parameters can be stored, for example, by a processing system that makes authorization determinations when transactions are initiated using the purchasing mechanisms.

Claims

1. A method for operating a server-based system to provide dynamic management of payment mechanisms, comprising:

receiving at one or more server systems a over an electronic communication path request from within a purchasing entity to make available certain purchasing capabilities to provide pre-approved purchasing authority with respect to a payment mechanism;

communicating, prior to a purchase associated with the payment mechanism, from the one or more server systems to a payment card processing system at a payment card processor to obtain information representing approval parameters associated with the payment mechanism, the payment card processing system being a system that processes transactions initiated using the payment mechanism based upon approval parameters associated with the payment mechanism, the approval parameters being stored by the payment card processing system;

sending from the one or more server systems to the payment card processing system adjustment instructions to adjust the approval parameters for the payment mechanism so that the purchasing capabilities to provide the pre-approved purchasing authority are available prior to the purchase;

receiving at the one or more server systems over the electronic communication path transaction data associated with a transaction completed using the payment mechanism and generating by an automated procedure a synthesized purchase request filled out with the transaction data received from the payment card processing system to be submitted to a purchasing management system for approval according to purchasing policies for the purchasing entity as if the purchase request was submitted prior to the transaction; and

sending from the one or more server systems to the payment card processing system adjustment instructions to reset the approval parameters at the card processor after the purchase.

2. The method of claim 1, further comprising processing the synthesized purchase request in the purchasing management system with respect to purchase policies for the purchasing entity and approving the synthesized purchase request if the purchase policies are satisfied.

3. The method of claim 1, wherein a plurality of requests are received with respect to a plurality of payment mechanisms, and wherein a plurality of requests are associated with each payment mechanism.

4. The method of claim 1, wherein the payment mechanism comprises a payment card, wherein the approval parameters comprise control settings for the payment card further comprising at least one of a credit limit, velocity controls and slot controls, and wherein the one or more server systems comprise the purchasing management system.

5. The method of claim 4, wherein at least one intermediate system processes communications between the purchasing management system and the payment card processor.

6. The method of claim 5, wherein the at least one intermediate system comprises a secure proxy system configured to provide process isolation between the purchasing management system and the card processor, to provide one or more security mechanisms for communications between the purchasing management system and the payment card processor, and to process these communications so that they are received in recognized formats.

7. The method of claim 6, wherein the at least one intermediate system further comprises an interface system that provides a communication interface for the card processor, the secure proxy system communicating with the payment card processor through the interface system.

8. The method of claim 4, further comprising associating a plurality of payment cards with the plurality of elements within a purchasing entity, the elements comprising persons, vehicles or buildings.

9. The method of claim 4, further comprising comparing parameters of an attempted purchase transaction with the control settings and authorizing the purchase transaction if the parameters are allowed by the control settings, the comparing and authorizing steps being conducted by the payment card processor.

10. The method of claim 9, wherein the control settings comprise a vendor identity code and a maximum single transaction limit.

11. The method of claim 1, wherein the purchasing policies are configurable through a network interface that provides a plurality of customizable purchasing management rules that reside on the one or more server systems.

12. The method of claim 11, wherein the network interface comprises an interface to the Internet.

13. The method of claim 1, wherein the payment mechanism comprises a dynamic payment identifier.

14. The method of claim 13, wherein the payment mechanism further comprises a payment card having the dynamic payment identifier associated with it.

15. A server-based system for providing dynamic management of payment mechanisms, comprising one or more server systems over an electronic communication path configured to receive a request from within a purchasing entity to make available certain purchasing capabilities to provide pre-approved purchasing authority with respect to a payment mechanism;

to communicate, prior to a purchase associated with the payment mechanism, with a payment card processing system at a payment card processor to obtain information representing approval parameters associated with the payment mechanism that are stored and used by the payment card processing system to process transactions initiated using the payment mechanism based upon the approval parameters associated with the payment mechanism, to send to the payment card processing system adjustment instructions to adjust the approval parameters for the payment mechanism so that the purchasing capabilities to provide the pre-approved purchasing authority are available prior to the purchase, to receive at the one or more server system over the electronic communication path transaction data associated with a transaction completed using the payment mechanism and generate by an automated procedure a synthesized purchase request filled out with the transaction data received from the payment card processing system to be submitted to a purchasing management system for approval according to purchasing policies for the purchasing entity as if the purchase request was submitted prior to the transaction, and to send to the payment card processing system adjustment instructions to reset the approval parameters at the card processor after the purchase.

16. The server-based system of claim 15, wherein the one or more server systems is further configured to send adjustment instructions to adjust the approval parameters to restore the pre-approved purchasing authority based upon an occurrence of one or more selected events after completion of the transaction.

17. The server-based system of claim 15, wherein a plurality of requests are received with respect to a plurality of payment mechanisms, and wherein a plurality of requests are associated with each payment mechanism.

18. The server-based system of claim 15, wherein the payment mechanism comprises payment cards, wherein the approval parameters comprise control settings further comprising at least one of a credit limit, velocity controls and slot controls for the payment card, and wherein the one or more server systems comprise a purchasing management system.

19. The server-based system of claim 18, wherein at least one intermediate system processes communications between the purchasing management system and the payment card processor.

20. The server-based system of claim 19, wherein the at least one intermediate system comprises a secure proxy system configured to provide process isolation between the purchasing management system and the payment card processor, to provide one or more security mechanisms for communications between the purchasing management system and the card processor, and to process these communications so that they are received in recognized formats.

21. The server-based system of claim 20, wherein the at least one intermediate system further comprises an interface system that provides a communication interface for the payment card processor, the secure proxy system communicating with the payment card processor through the interface system.

22. The server-based system of claim 18, further comprising associating a plurality of payment cards with the plurality of elements within the purchasing entity.

23. The server-based system of claim 18, wherein the payment card processing system is further configured to compare parameters of an attempted purchase transaction with the control settings and to authorize the purchase transaction if the parameters are allowed by the control settings.

24. The server-based system of claim 23, wherein a vendor communicates the parameters of the attempted purchase transaction to the payment card processing system for authorization.

25. The server-based system of claim 23, wherein the control settings comprise a vendor identity code and a maximum single transaction limit.

26. The server-based system of claim 15, wherein the purchasing policies are configurable through a network interface that provides a plurality of customizable purchasing management rules that reside on one or more server systems.

27. The server-based system of claim 26, wherein the network comprises the Internet.

28. The server-based system of claim 15, wherein the payment mechanism comprises a dynamic payment identifier.

29. The server-based system of claim 28, wherein the payment mechanism further comprises a payment card having the dynamic payment identifier is associated with it.