Multiple options to decline authorization of payment card charges

• US 7,708,190 B2
• Filed: 03/10/2004
• Issued: 05/04/2010
• Est. Priority Date: 03/10/2004
• Status: Active Grant

• Current Assignee: Sbc Knowledge Ventures, L.P.
• Original Assignee: AT&T Intellectual Property I LP (AT&T, Inc.)
• Inventors: Miller, James Thomas, Brandt, Jeffrey Lewis
• Primary Examiner(s): FRANKLIN, JAMARA ALZAIDA
• Application Number:
  US10/797,919
• Publication Number:
  US 20050199714A1
• Time in Patent Office: 2,246 Days
• Field of Search: 235/375, 235379-383, 705/16, 705/17, 705/18, 705/44, 705/35, 705/39, 705/43
• US Class Current: 235/379
• 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 20/425 using two different networks, one for transaction and one for security confirmation

Abstract

A payment card transaction notification and authorization system provides a notification message to a payment card holder of an attempted transaction using his/her payment card. The system provides multiple options for the payment card holder to decline authorization of the attempted transaction. The multiple options comprise a first option for the payment card holder to decline authorization of an undesirable but non-fraudulent transaction, and a second option for the payment card holder to decline authorization of a fraudulent transaction.

Claims

1. A method performed by a payment card processor, comprising:

sending a first notification message to a first device associated with a payment card holder of a payment card and a second notification message to a second device associated with a second party other than the payment card holder when a purchase amount of an attempted transaction exceeds a maximum purchase threshold, wherein the second party is affiliated with a business associated with the payment card; and

processing the attempted transaction without sending the first notification message and the second notification message when the purchase amount of the attempted transaction does not exceed the maximum purchase threshold;

wherein the first notification message and the second notification message each include a plurality of options to decline authorization of the attempted transaction.

2. The method of claim 1, wherein the plurality of options comprise a first option to decline authorization of an undesirable but non-fraudulent transaction, and a second option to decline authorization of a fraudulent transaction.

3. The method of claim 2, further comprising:

receiving a selection of the first option; and

based on the selection, providing a message to a merchant involved in the attempted transaction to decline the attempted transaction and to return the payment card to an individual attempting the transaction.

4. The method of claim 2, further comprising:

receiving a selection of the second option; and

based on the selection, providing a message to a merchant involved in the attempted transaction to decline the attempted transaction and to withhold the payment card from an individual attempting the transaction.

5. The method of claim 2, further comprising:

receiving a selection of the second option; and

based on the selection, locking an account associated with the payment card.

6. The method of claim 2, further comprising:

receiving a selection of the second option; and

based on the selection, automatically reporting the fraudulent transaction to a law enforcement authority.

7. The method of claim 2, further comprising:

receiving a selection of the second option; and

based on the selection, automatically reporting the fraudulent transaction to a credit reporting agency.

8. The method of claim 1, further comprising:

receiving a message to pre-approve a particular payment card transaction above the maximum threshold transaction based on a threshold rule and

processing the particular transaction without sending the first notification message and the second notification message.

9. The method of claim 1, further comprising sending the first notification message and the second notification message when a second attempted transaction occurs that does not exceed the maximum purchase threshold but does exceed a threshold number of uses of the payment card in a particular time period.

10. The method of claim 1, further comprising sending the first notification message and the second notification message when a second attempted transaction occurs that does not exceed the maximum purchase threshold but does occur in a particular time window.

11. The method of claim 1, wherein the attempted transaction is processed without sending the first notification message and the second notification message when the attempted transaction is at a payment card holder approved type of merchant.

12. The method of claim 1, wherein the first notification message and the second notification are sent when the attempted transaction exceeds a payment card holder usage threshold.

13. The method of claim 1, wherein the attempted transaction is processed without sending the first notification message and the second notification message when the attempted transaction occurs during a payment card holder time window threshold.

14. The method of claim 1, wherein the first notification message and the second notification message are sent when the attempted transaction exceeds a payment card holder credit limit threshold.

15. A system comprising:

a payment card transaction notification and authorization system that uses a telecommunication network to;

send a notification message from a payment card processor to a device associated with a payment card holder of an attempted transaction using a payment card when a purchase amount of the attempted transaction exceeds a maximum purchase threshold;

provide a first option for the payment card holder to decline authorization of the attempted transaction upon receiving the notification message for a non-fraudulent transaction;

provide a second option for the payment card holder to decline authorization of the attempted transaction upon receiving the notification message for a fraudulent transaction;

decline authorization and send a message to a merchant involved in the attempted transaction to return the payment card to an individual making the attempted transaction in response to receiving information indicating an input on the device selecting the first option;

decline authorization and send a message to the merchant involved in the attempted transaction to withhold the payment card from the individual making the attempted transaction in response to receiving information indicating the input on the device selecting the second option; and

process the attempted transaction without sending the notification message to the device when the attempted transaction does not exceed the maximum purchase threshold.

16. The system of claim 15, wherein the payment card transaction notification and authorization system uses the telecommunications network to send a second notification when the purchase amount of the attempted transaction does not exceed the maximum purchase threshold but the attempted transaction exceeds a threshold number of uses of the payment card in a particular time period.

17. The system of claim 16, wherein the payment card transaction notification and authorization system uses the telecommunications network to send a second notification when the purchase amount of the attempted transaction does not exceed the maximum purchase threshold but the attempted transaction occurs in a particular time window.

18. The system of claim 16, wherein the payment card transaction notification and authorization system uses the telecommunications network to send a second notification when the purchase amount of the attempted transaction does not exceed the maximum purchase threshold but the attempted transaction would cause a credit limit of the payment card to be exceeded.

19. The system of claim 16, wherein the payment card transaction notification and authorization system is further configured to automatically report the fraudulent transaction to a law enforcement authority in response to receiving information indicating an input selecting the second option by the payment card holder.

20. The system of claim 16, wherein the payment card transaction notification and authorization system is further configured to automatically report the fraudulent transaction to a credit reporting agency in response to receiving information indicating an input selecting the second option by the payment card holder.

21. The system claim 15, wherein the payment card transaction notification and authorization system uses the telecommunications network to have an account associated with the payment card locked in response to receiving information indicating an input selecting the second option by the payment card holder.

22. The system of claim 15, wherein the payment card transaction notification and authorization system is further configured to send a reason code to a merchant involved in the attempted transaction to indicate why the attempted transaction has been declined in response to receiving information indicating selection of the first option or the second option by the payment card holder.

23. The system of claim 15, wherein the payment card transaction notification and authorization system is further configured to provide an option for the payment card holder to authorize the attempted transaction.

24. The system of claim 15, wherein the notification message indicates a transaction amount, a merchant name, and at least part of a number of the payment card.

25. The system of claim 15, wherein the payment card transaction notification and authorization system is further configured to increase a purchase limit threshold for the payment card based on a short message service (SMS) message received from the payment card holder.

26. The system of claim 15, wherein the attempted transaction is processed without sending the notification message when the attempted transaction is at a payment card holder approved type of merchant.

27. The system of claim 15, wherein the notification message is sent when the attempted transaction exceeds a payment card holder usage threshold.

28. The system of claim 15, wherein the attempted transaction is processed without sending the notification message when the attempted transaction occurs during a payment card holder time window threshold.

29. The system of claim 15, wherein the notification message is sent when the attempted transaction exceeds a payment card holder credit limit threshold.

30. A method comprising:

sending a notification message from a payment card processor to a device associated with a payment card holder of an attempted transaction using a payment card when a purchase amount of the attempted transaction exceeds a maximum purchase threshold, the notification message indicating a transaction amount, a merchant name, and at least part of a number of the payment card, and processing the attempted transaction without sending the notification message to the device when the attempted transaction does not exceed the maximum purchase threshold;

providing an option for the payment card holder to authorize the transaction;

providing multiple options for the payment card holder to decline authorization of the attempted transaction, the multiple options comprising a first option for the payment card holder to decline authorization of an undesirable but non-fraudulent transaction, and a second option for the payment card holder to decline authorization of a fraudulent transaction;

receiving a selection of one of the options made by the payment card holder;

when the first option is selected, providing a message to a merchant involved in the attempted transaction to decline the attempted transaction and to return the payment card to an individual attempting the transaction; and

when the second option is selected, locking an account associated with the payment card and providing a second message to the merchant involved in the attempted transaction to decline the attempted transaction and to withhold the payment card from the individual attempting the transaction.