Pre-paid activation and replenishment on a point-of-sale device

• US 7,413,117 B2
• Filed: 02/09/2005
• Issued: 08/19/2008
• Est. Priority Date: 02/09/2005
• Status: Active Grant

• Current Assignee: First Data Resources Incorporated (Fiserv Incorporated)
• Original Assignee: First Data Corporation (Fiserv Incorporated)
• Inventors: Peterson, Matthew, Smith, David W., Caven, Howard, Blankstrom, Diane
• Primary Examiner(s): Caputo; Lisa M
• Application Number:
  US11/054,348
• Publication Number:
  US 20060175394A1
• Time in Patent Office: 1,287 Days
• Field of Search: 235/375, 235/379, 705/17
• US Class Current: 235/379
• CPC Class Codes: G06Q 20/042 characterized in that the payment protocol involves at least one cheque
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/202 Interconnection or interaction of plural electronic cash registers [ECR] or to host computer, e.g. network details, transfer of information from host to ECR or from ECR to ECR
• CPC Class Codes: G06Q 20/28 Pre-payment schemes, e.g. "pay before"
• 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 20/4016 involving fraud or risk level assessment in transaction processing

Abstract

A system and method for processing prepaid financial transactions. One or more remote terminals are adapted to acquire transaction information from a user and transmit a first signal indicative of the transaction information. The remote terminal is further adapted to receive a second signal indicative of authorizing information that is delivered to the user. In addition, an authorizing host is adapted to receive the first signal transmitted by the one or more remote terminals. In one aspect, the authorizing host routes the first signal including the transaction information to an exchange host for approval of the financial transaction, and the exchange host transmits the second signal including the authorizing information to the remote terminal via the authorizing host.

Claims

1. A system for assessing the risk associated with a proffered promissory payment wherein the system is linked to at least one prepaid goods or service provider, the system comprising:

a plurality of point of sale devices located within a plurality of distributed locations, wherein the plurality of point of sale devices acquire information about proffered promissory payments and also acquire information about requests for prepaid goods or services and wherein the plurality of point of sale devices include a communications interface for communicating information to individuals within the plurality of distributed locations and for communicating information about the proffered promissory payments and the requests for prepaid goods and services; and

an authorizing host having at least one risk database component that is communicatively linked to the plurality of point of sale devices wherein the authorizing host receives transaction information and determines whether the transaction relates to a proffered promissory payment, in which case the authorizing host assesses the risk of accepting the proffered promissory payment by performing a risk assessment calculation using at least one of the risk database component and communicates acceptance or decline information to the point of sale device corresponding to a particular proffered promissory payment, or whether the transaction relates to a request for a prepaid good or service, in which case the authorizing host is adapted to route the request for a prepaid good or service to a corresponding external goods or services provider without performing risk assessment and then receive acceptance or decline information from the external goods or services provider and transmit acceptance or decline information to the point of sale device originating the request for prepaid good or service.

2. The system of claim 1, wherein the plurality of transaction devices acquire financial information about a proffered promissory payment that include the amount, the account corresponding to the proffered promissory payment, the account holder and further transmits information about the merchant to the authorizing host such that the authorizing host can perform risk assessment on the proffered promissory payment.

3. The system of claim 1, wherein the plurality of transaction devices include an input for inputting information wherein the communications interface comprises a display screen that displays the acceptance and decline information.

4. The system of claim 1, wherein the plurality of transaction devices allow the merchant to transmit requests for prepaid goods or services for a plurality of different prepaid goods and service providers and receive acceptance and decline information from the plurality of different prepaid goods and service providers via the authorizing host.

5. The system of claim 4, wherein the plurality of different prepaid goods and service providers include cellular telephone providers, long distance telephone providers, video rental providers.

6. The system of claim 4, wherein the authorizing host and the plurality of transaction devices are configured to provide an authorizing code to the purchaser of the prepaid goods and services in response to the prepaid good and service provider approving the request for prepaid goods and services.

7. The system of claim 6, wherein the authorizing code comprises a PIN number that the purchaser utilizes to activate the prepaid good or service.

8. A point of sale device adapted to be positioned within a store for transmitting information about proffered promissory payments and about requests for prepaid goods and services to a central authorizing agency having one or more risk database components for subsequent determination as to whether the information relates to a proffered promissory payment, in which case a risk assessment calculation is performed by the central authorizing authority using the risk database components, or whether the information relates to a request for a prepaid good or service, in which case the information is retransmitted to an external prepaid goods or services provider, and wherein the central authorizing agency receives approval or decline information from prepaid goods and services provider which is retransmitted to the point of sale devices wherein the point of sale device is further adapted to provide approval or decline information about the proffered promissory payments and the prepaid goods and service requests to individuals.

9. The device of claim 8, wherein the point of sale device comprises one or more user inputs for inputting information about the proffered promissory payment and the requests for prepaid goods and services into the point of sale device.

10. The device of claim 9, wherein the one or more user inputs includes a scanner for scanning magnetic information off of checks.

11. The device of claim 9, wherein the one or more user inputs includes a keypad for entering data relating to the request for prepaid goods and services.

12. The device of claim 8, wherein the point of sale device includes a display for displaying an authorization code to the purchaser of the pre-paid goods and services.

13. The device of claim 12, wherein the authorization code comprises a PIN number suitable for activating additional minutes on a cellular telephone account.

14. A system for processing requests for prepaid goods and services and for performing risk assessment on preferred promissory payments, the system comprising a risk assessment system having a plurality of distributed transaction devices located at a plurality of different locations and an authorizing host, having at least one risk database component, that receives information about proffered promissory payments from the plurality of distributed transaction devices as well as requests for prepaid goods or services, wherein the authorizing host determines whether received information relates to a proffered promissory payment, in which case the authorizing host performs a risk assessment on the proffered promissory payments by using the at least one risk database component and sends approval or decline signals to the distributed transaction device where the proffered promissory payment originated, or whether received information relates to a request for a prepaid good or service, in which case the authorizing host routes the request to prepaid goods and services vendors that are independent of the risk assessment system and receives approval information from the goods and service vendors via the risk assessment system which are then retransmitted to the originating distributed transaction devices.

15. The system of claim 14, wherein the plurality of transaction devices acquire financial information about a proffered promissory payment that include the amount, the account corresponding to the proffered promissory payment, the account holder and further transmits information about the merchant to the authorizing host such that the authorizing host can perform risk assessment on the proffered promissory payment.

16. The system of claim 14, wherein the plurality of transaction devices include an input for inputting information and wherein the communications interface comprises a display screen that displays the acceptance and decline information.

17. The system of claim 14, wherein the plurality of transaction devices allow the merchant to transmit requests for prepaid goods or services for a plurality of different prepaid goods and service providers and receive acceptance and decline information from the plurality of different prepaid goods and service providers via the authorizing host.

18. The system of claim 17, wherein the plurality of different prepaid goods and service providers include cellular telephone providers, long distance telephone providers, video rental providers.

19. The system of claim 17, wherein the authorizing host and the plurality of transaction devices are configured to provide an authorizing code to the purchaser of the prepaid goods and services in response to the prepaid good and service provider approving the request for prepaid goods and services.

20. The system of claim 19, wherein the authorizing code comprises a PIN number that the purchaser utilizes to activate the prepaid good or service.

21. A method of processing financial transactions, the method comprising:

transmitting data about a proffered promissory payment or about a request for prepaid goods or services offered at a remote location to a central authorization host;

determining whether the data is related to a proffered promissory payment or whether the data is related to a request for prepaid goods or services;

performing risk assessment on a proffered promissory payment by performing a risk assessment calculation using at least one risk database component;

transmitting an acceptance or decline of the proffered promissory payment from the central authorization host to the remote location;

forwarding data about a request for a prepaid good or service from the remote location to an independent prepaid goods or service provider via the central authorization host;

providing authorization information to the remote location from the prepaid good or service provider via the central host.

22. The method of claim 21, wherein transmitting data about a proffered promissory payment offered at a remote location to a central authorization host comprises sending data about a check written to a merchant to the central authorization host.

23. The method of claim 22, wherein performing risk assessment on the proffered promissory payment comprises evaluating the history of the person writing the check, the amount of the check, the type of transaction and characteristics of the merchant to determine whether to accept or decline the check.

24. The method of claim 21, wherein transmitting data about a request for a prepaid good and service from the remote location to a prepaid good and service provider via the central authorization host comprises:

sending an electronic signal comprising the request to the central authorization host identifying a particular good and service provider;

routing the electronic signal comprising the request from the central host to the particular good and service provider.

25. The method of claim 24, wherein providing authorization information to the remote location from the prepaid good and service provider via the central host comprises transmitting a PIN number from the prepaid good and service provider to the remote location via the central authorizing host.

26. A system for processing financial transactions comprising:

means for transmitting information, including proffered promissory payments and requests for prepaid goods and services, to and from a plurality of remote locations;

means for receiving the information and determining whether the information relates to a proffered promissory payment, in which case the proffered promissory payment is evaluated to ascertain the risk of accepting the proffered promissory payments, or a request for a prepaid good or service, wherein means for evaluating the proffered promissory payment including at least one or more risk database components, and wherein the risk of accepting the proffered promissory payment includes performing a risk calculation using the at least one or more risk database components wherein the means for evaluating a proffered promissory payment includes means for retransmitting requests for prepaid goods and services to an external goods and service provider and means for transmitting authorization information from the external goods and service provider to the means for transmitting proffered promissory payments and requests for prepaid services.

27. The system of claim 26, wherein the means for transmitting information including financial data and requests for prepaid good and services comprises a plurality of point of sale devices located within a plurality of distributed locations, wherein the plurality of point of sale devices acquire information about proffered promissory payments and also acquire information about requests for prepaid goods or services and wherein the plurality of point of sale device include a communications interface for communicating information to individuals within the plurality of distributed locations.

28. The system of claim 27, wherein the plurality of transaction devices acquire financial information about a proffered promissory payment that include the amount, the account corresponding to the proffered promissory payment, the account holder and further transmits information about the merchant to the authorizing host such that the authorizing host can perform risk assessment on the proffered promissory payment.

29. The system of claim 27, wherein the plurality of transaction devices include an input for inputting information wherein the communications interface comprises a display screen that displays the acceptance and decline information.

30. The system of claim 27, wherein the plurality of transaction device allows the merchant to transmit requests for prepaid goods or services for a plurality of different prepaid goods and service providers and receive acceptance and decline information from the plurality of different prepaid goods and service providers via the authorizing host.

31. The system of claim 27, wherein the means for evaluating financial data from the means for transmitting information to assess the risk of accepting proffered promissory payment comprises an authorizing host that is communicatively linked to the plurality of point of sale devices wherein the authorizing host receives the information about the proffered promissory payments and assesses the risk of accepting the proffered promissory payment and wherein the authorizing host communicates acceptance or decline information to the point of sale device corresponding to a particular proffered promissory payment and wherein the authorizing host is adapted to route a request for a prepaid good or service to the corresponding goods or services provider and then transmit acceptance or decline information to the point of sale device originating the request for prepaid good or service.

32. The system of claim 31, wherein the authorizing host and the plurality of transaction devices are configured to provide an authorizing code to the purchaser of the prepaid goods and services in response to the prepaid good and service provider approving the request for prepaid goods and services.

33. The system of claim 32, wherein the authorizing code comprises a PIN number that the purchaser utilizes to activate the prepaid good or service.

34. A system for assessing the risk associated with a proffered promissory payment wherein the system is linked to at least one prepaid goods or service provider, the system comprising:

a plurality of point of sale devices located within a plurality of distributed locations, wherein the plurality of point of sale devices acquire information about a first type of financial transaction and also acquire information about a second type of financial transaction and wherein the plurality of point of sale devices include a communications interface for communicating information to individuals within the plurality of distributed locations; and

an authorizing host having at least one risk database component that is communicatively linked to the plurality of point of sale devices wherein the authorizing host receives the information and determines whether the information relates to the first type of financial transaction, in which case the authorizing host assesses the risk associated with the first type of financial transaction by performing a risk calculation using the at least one risk database component and communicates acceptance or decline information to the point of sale device corresponding to first type of financial transaction, or whether the information relates to the second type of financial transaction, in which case the authorizing host is adapted to route information about the second type of financial information to a corresponding external provider and then transmit acceptance or decline information to the point of sale device originating the second financial transaction.

35. The system of claim 34, wherein the first type of financial transaction comprises a proffered promissory payment and wherein the second type of financial transaction comprises a request for prepaid goods or services.

36. The system of claim 35, wherein the plurality of transaction devices acquire financial information about a proffered promissory payment that include the amount, the account corresponding to the proffered promissory payment, the account holder and further transmits information about the merchant to the authorizing host such that the authorizing host can perform risk assessment on the proffered promissory payment.

37. The system of claim 35, wherein the plurality of transaction devices include an input for inputting information wherein the communications interface comprises a display screen that displays the acceptance and decline information.

38. The system of claim 35, wherein the plurality of transaction devices allow the merchant to transmit requests for prepaid goods or services for a plurality of different prepaid goods and service providers and receive acceptance and decline information from the plurality of different prepaid goods and service providers via the authorizing host.

39. The system of claim 38, wherein the plurality of different prepaid goods and service providers include cellular telephone providers, long distance telephone providers, video rental providers.

40. The system of claim 38, wherein the authorizing host and the plurality of transaction devices are configured to provide an authorizing code to the purchaser of the prepaid goods and services in response to the prepaid good and service provider approving the request for prepaid goods and services.

41. The system of claim 40, wherein the authorizing code comprises a PIN number that the purchaser utilizes to activate the prepaid good or service.