System and method for validation of transactions

• US 7,774,076 B2
• Filed: 10/29/2007
• Issued: 08/10/2010
• Est. Priority Date: 10/29/2007
• Status: Expired due to Fees

• Current Assignee: First Data Corporation (Fiserv Incorporated)
• Original Assignee: First Data Corporation (Fiserv Incorporated)
• Inventors: Skowronek, Dan
• Primary Examiner(s): Trammell; James P
• Assistant Examiner(s): Nguyen; Tien C
• Application Number:
  US11/926,723
• Publication Number:
  US 20090112765A1
• Time in Patent Office: 1,016 Days
• Field of Search: 705 1- 45, 235/492, 235/380, 305/199, 340/426, 379/111, 379/265, 463/25, 455/558, 713/168, 725/50
• US Class Current: 700/44
• CPC Class Codes: G06Q 20/322 Aspects of commerce using mobile devices [M-devices]
• CPC Class Codes: G06Q 20/3278 RFID or NFC payments by means of M-devices
• 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 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G07F 7/1025 Identification of user by a PIN code

Abstract

A financial institution may flag suspicious transactions that are conducted using an NFC-enabled mobile phone. The account holder establishes a second PIN that is separate from the primary PIN used by the customer to authenticate transactions. When a transaction is flagged, a message is sent to the customer at the mobile phone requesting entry of the second PIN. If the second PIN is not correctly entered, activity on the account is suspended.

Claims

1. A system for validating transactions that are conducted against accounts using a presentation instrument, where a customer may be required to provide an authentication PIN in order to complete a transaction, the system comprising:

a memory for storing, in relation to an account, a post-transaction PIN that is separate from the authentication PIN, wherein the post-transaction PIN was previously supplied by the customer when enrolling for a service requiring entry of the post-transaction PIN in addition to the authentication PIN, wherein the entry of the post-transaction PIN is necessitated under a certain condition where the transaction is a suspect transaction;

a customer device for receiving a message requesting the customer to enter the post-transaction PIN when a previously conducted transaction has been identified as meeting the certain condition, wherein the previously conducted transaction comprises transaction details, including the authentication PIN, that were previously supplied by the customer when initiating the transaction; and

a processor for receiving the post-transaction PIN entered by the customer and for receiving the post-transaction PIN stored in the database, and for determining if the entered post-transaction PIN matches the stored post-transaction PIN when the entered post-transaction PIN matches the stored post-transaction PIN; and

transmitting a message indicative of the match of the entered post-transaction PIN and the stored post-transaction PIN that were supplied by the same customer.

2. The system of claim 1, wherein the customer device is a mobile device, wherein the mobile device serves as the presentation instrument, wherein the memory is a database, and wherein the processor is a server.

3. The system of claim 2, wherein transactions are conducted at a POS device using the mobile device, and wherein the mobile device uses wireless signaling to provide identifying information to the POS device.

4. The system of claim 3, wherein the server receives the identifying information from the POS device, wherein the database stores an account ID for the account against which the transaction is conducted, and wherein the server accesses the account ID of the customer at the database in response to receiving the identifying information.

5. The system of claim 4, wherein server generates the message requesting the post-transaction PIN in response to flagging of the transaction by a financial institution maintaining the account, and wherein the financial institution flags the account in response to suspicious activity in connection with the account.

6. A method for validating completed transactions conducted by account holders, where the transactions have been conducted using a presentation instrument and where a least some transactions may have been authenticated using an authenticating PIN at the time of the transaction, the method comprising:

establishing a second PIN to validate transactions conducted using the presentation instrument, wherein the second PIN is received from an account holder as part of a service requiring entry of the second PIN under a certain condition where the transaction is a suspect transaction;

flagging a transaction that is to be validated based on whether the condition has been satisfied, wherein the flagged transaction has been previously completed and authenticated;

sending a message to a mobile device associated with an account holder, the message requesting entry of the second PIN; and

determining if the second PIN has been entered;

determining if the entered second PIN matches the previously established second PIN; and

storing a result indicative of the match of the entered second PIN and the previously established second PIN that were supplied by the same customer.

7. The method of claim 6, wherein the mobile device is the presentation instrument, and wherein the second PIN is entered at the mobile device.

8. The method of claim 7, wherein the authenticating PIN has been entered at the mobile device when conducting the transaction.

9. The method of claim 7, wherein where the authenticating PIN has been entered at a PIN pad located at a POS device.

10. The method of claim 7, wherein the mobile device uses wireless signaling to provide identifying information to a POS device at the location where the transaction is conducted.

11. The method of claim 10, wherein the wireless signaling employs NFC.

12. The method of claim 11, wherein where the wireless signaling is received by a reader at the POS device.

13. The method of claim 11, further comprising:

providing a database, wherein the second PIN is stored in the database, where the second PIN is retrieved from the database, and where the retrieved second PIN is compared to the second PIN entered at the mobile device in response to the message.

14. The method of claim 13, wherein where the mobile device is a mobile telephone.

15. The method of claim 13, wherein the second PIN is established by the account holder.

16. The method of claim 13, wherein, the second PIN is different that the authenticating PIN.

17. The method of claim 13, wherein a mobile wallet server is provided to manage transactions using the presentation instrument, where the mobile wallet server manages account information that is retrieved when the identifying information provided by wireless signaling is received at the POS device, and wherein the wallet server retrieves the second PIN from the database in response to entry of the second PIN at the mobile device.

18. The method of claim 13, wherein a mobile wallet server is provided to manage transactions using the presentation instrument, and wherein the database is associated with the wallet server.

19. The method of claim 18, wherein a transaction is determined to be suspect based on criteria established an institution maintaining an account associated with the presentation instrument.

20. The method of claim 13, wherein the database is associated with a financial institution maintaining an account for the account holder.

21. The method of claim 6, wherein a transaction is flagged when the transaction is determined to be suspect based on meeting the condition.

22. The method of claim 21, wherein where the displayed information includes the amount of the transaction and the date it was completed.

23. The method of claim 6, wherein the mobile device displays information concerning the flagged transaction at the mobile device.

24. The method of claim 6, wherein the second PIN is determined to be not entered if not correctly entered within a predetermined period of time after receipt of the message at the mobile device.

25. The method of claim 6, wherein where the second PIN is established as part of enrollment in a program for receiving alerts.