Techniques for authorization of usage of a payment device

• US 7,828,204 B2
• Filed: 01/24/2007
• Issued: 11/09/2010
• Est. Priority Date: 02/01/2006
• Status: Active Grant

• Current Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Original Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Inventors: Reany, Robert D, Hill, Dennis J, Kranzley, Arthur D, Kelly-Frank, Carole, Fiebiger, Sara, Gluck, Adam
• Primary Examiner(s): Lee; Seung H
• Assistant Examiner(s): STANFORD, CHRISTOPHER J
• Application Number:
  US11/626,408
• Publication Number:
  US 20070262139A1
• Time in Patent Office: 1,385 Days
• Field of Search: 235/379, 235/380
• US Class Current: 235/380
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• 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

Techniques for authorization of usage of a payment device include facilitating an issuer of the device obtaining an authorization message for an account number associated with the device, based on desired spending limit parameters established by a merchant and/or an issuer of the device; facilitating obtaining an issuer authorization decision; and responsive to the issuer authorization decision, facilitating setting a spending limit for the account number based on at least an appropriate one of the parameters.

Claims

1. A method for authorization of usage of a payment device at a merchant, said payment device having an associated account number and being issued by an issuer coupled to a payment processing network, said method comprising the steps of:

facilitating obtaining said account number in connection with a putative transaction with a terminal of said merchant;

facilitating determining whether said account number is being utilized at said merchant for the first time, using an active file manager apparatus intermediate said terminal and said payment processing network;

responsive to said determining step indicating that said account number is being utilized at said merchant for the first time;

facilitating said issuer obtaining an authorization message, through said payment processing network, for said account number;

facilitating obtaining an issuer authorization decision;

approving said putative transaction, with said active file manager, without use of said issuer authorization decision;

responsive to said issuer authorization decision, facilitating setting a spending limit for said account number;

facilitating conducting subsequent putative transactions for said account number;

facilitating determining that a parameter associated with said account number is reaching a predetermined relationship with said spending limit; and

responsive to said determining that said parameter is reaching said predetermined relationship, facilitating obtaining a new issuer authorization decision to adjust a spendable balance associated with said account number.

2. The method of claim 1, wherein:

said authorization message is based on desired spending limit parameters established by at least one of said merchant and said issuer; and

said spending limit for said account number is set based on at least an appropriate one of said parameters.

3. The method of claim 2, wherein said authorization message comprises a standard payment processing network authorization message.

4. The method of claim 2, wherein said spending limit is based at least on said appropriate one of said parameters, less a value of said transaction.

5. The method of claim 2, wherein:

said active file manager is operated by an acquiring entity;

said issuer is connected to said acquiring entity via said payment processing network; and

said active file manager is interposed between said acquiring entity and said payment processing network.

6. The method of claim 2, further comprising the additional step of facilitating inclusion of said transactions in a data warehouse, for subsequent usage by said issuer of said device.

7. The method of claim 2, further comprising the additional steps of:

facilitating approval of given ones of said subsequent putative transactions, where appropriate, by said active file manager;

determining that an account associated with said account number does not exhibit a limiting condition; and

performing a spendable balance adjustment.

8. The method of claim 7, further comprising the additional step of facilitating sending of a response to an acquiring entity associated with said transaction, substantially in parallel with said approval of said given ones of said subsequent putative transactions.

9. The method of claim 7, wherein:

said putative transaction and said subsequent putative transactions comprise attempts to enter a transit system;

said merchant comprises an operator of said transit system;

said spending limit is based upon a periodic activity limit for said transit system; and

said limiting condition comprises at least one of exceeding said spending limit and said account number being blocked.

10. An active file manager apparatus for authorization of usage of a payment device at a merchant, the payment device having an associated account number and being issued by an issuer coupled to a payment processing network, said apparatus comprising:

a memory; and

at least one processor coupled to said memory, said processor being operative to;

facilitate obtaining said account number in connection with a putative transaction with a terminal of said merchant, said active file manager apparatus being intermediate said terminal and said payment processing network;

facilitate determining whether said account number is being utilized at said merchant for the first time;

responsive to said determining step indicating that said account number is being utilized at said merchant for the first time;

facilitate said issuer obtaining an authorization message, through said payment processing network, for the account number;

facilitate obtaining an issuer authorization decision; and

approve said putative transaction, without use of said issuer authorization decision;

responsive to said issuer authorization decision, facilitate setting a spending limit for the account number;

facilitate conducting subsequent putative transactions for said account number;

facilitate determining that a parameter associated with said account number is reaching a predetermined relationship with said spending limit; and

responsive to said determining that said parameter is reaching said predetermined relationship, facilitate obtaining a new issuer authorization decision to adjust a spendable balance associated with said account number.

11. The active file manager apparatus of claim 10, wherein:

said authorization message is based on desired spending limit parameters established by at least one of the merchant and the issuer; and

said spending limit for said account number is set based on at least an appropriate one of said parameters.

12. The apparatus of claim 11, wherein said authorization message comprises a standard payment processing network authorization message.

13. The apparatus of claim 11, wherein said spending limit is based at least on said appropriate one of said parameters, less a value of said transaction.

14. The apparatus of claim 11, wherein said memory stores an active file, said active file comprising the account number, a limit parameter, a last authorization date, a number of transactions since authorization, and an authorization frequency.

15. The apparatus of claim 14, wherein said memory further stores an account range file, said account range file comprising a low range, a high range, a transaction allowability indicating parameter, and an authorization frequency.

16. The active file manager apparatus of claim 11, wherein said at least one processor is further operative to:

facilitate approval of given ones of said subsequent putative transactions, where appropriate;

determine that an account associated with said account number does not exhibit a limiting condition; and

perform a spendable balance adjustment.

17. The apparatus of claim 16, wherein:

said active file manager apparatus is operated by an acquiring entity;

the issuer is connected to the acquiring entity via said payment processing network; and

said active file manager is configured to be interposed between the acquiring entity and the payment processing network.

18. The apparatus of claim 17, wherein said memory stores an active file with account numbers including said associated account number and said processor is further operative to:

receive a nightly refresh file from a payment processing network operator based on information from the issuer; and

delete those of said account numbers in said active file that have not been used within a predetermined time period.

19. The apparatus of claim 18, wherein given ones of said account numbers are on a stop list, and wherein said processor is further operative to periodically request authorization for those of said account numbers previously found on said stop list to determine whether said account numbers have been unblocked by the issuer.

20. The apparatus of claim 18, wherein said processor is further operative to facilitate inclusion of said transactions in a data warehouse, for subsequent usage by said issuer of said device.

21. The apparatus of claim 18, wherein said processor is further operative to facilitate sending of a response to an acquiring entity associated with said transaction, substantially in parallel with said approval of said given ones of said subsequent putative transactions.

22. The active file manager apparatus of claim 16, wherein:

said putative transaction and said subsequent putative transactions comprise attempts to enter a transit system;

the merchant comprises an operator of the transit system;

said spending limit is based upon a periodic activity limit for the transit system; and

said limiting condition comprises at least one of exceeding said spending limit and said account number being blocked.

23. A computer program product comprising a tangible computer readable recordable storage medium including computer usable program code for authorization of usage of a payment device at a merchant, said payment device having an associated account number and being issued by an issuer coupled to a payment processing network, said computer program product including:

computer usable program code for facilitating obtaining said account number in connection with a putative transaction with a terminal of said merchant;

computer usable program code for facilitating determining whether said account number is being utilized at said merchant for the first time, using an active file manager apparatus intermediate said terminal and said payment processing network;

computer usable program code for, responsive to said determining step indicating that said account number is being utilized at said merchant for the first time;

facilitating an issuer of the device obtaining an authorization message for said account number;

facilitating obtaining an issuer authorization decision;

approving said putative transaction, with said active file manager, without use of said issuer authorization decision;

responsive to said issuer authorization decision, facilitating setting a spending limit for said account number;

computer usable program code for facilitating conducting subsequent putative transactions for said account number;

computer usable program code for facilitating determining that a parameter associated with said account number is reaching a predetermined relationship with said spending limit; and

computer usable program code for, responsive to said determining that said parameter is reaching said predetermined relationship, facilitating obtaining a new issuer authorization decision to adjust a spendable balance associated with said account number.

24. The computer program product of claim 23, wherein:

said authorization message is based on desired spending limit parameters established by at least one of the merchant and the issuer; and

said spending limit for said account number is set based on at least an appropriate one of said parameters.

25. The computer program product of claim 24, wherein said authorization message comprises a standard payment processing network authorization message.

26. The computer program product of claim 24, wherein said spending limit is based at least on said appropriate one of said parameters, less a value of said transaction.

27. The computer program product of claim 24, said product being configured to operate in circumstances wherein:

said active file manager is operated by an acquiring entity;

said issuer is connected to said acquiring entity via said payment processing network; and

said active file manager is interposed between said acquiring entity and said payment processing network.

28. The computer program product of claim 24, further comprising computer usable program code for facilitating inclusion of said transactions in a data warehouse, for subsequent usage by said issuer of said device.

29. The computer program product of claim 24, further comprising:

computer usable program code for facilitating approval of given ones of said subsequent putative transactions, where appropriate;

computer usable program code for determining that an account associated with said account number does not exhibit a limiting condition; and

computer usable program code for performing a spendable balance adjustment.

30. The computer program product of claim 29, further comprising computer usable program code for facilitating sending of a response to an acquiring entity associated with said transaction, substantially in parallel with said approval of said given ones of said subsequent putative transactions.

31. The computer program product of claim 29, wherein:

said putative transaction and said subsequent putative transactions comprise attempts to enter a transit system;

the merchant comprises an operator of the transit system;

said spending limit is based upon a periodic activity limit for the transit system; and

said limiting condition comprises at least one of exceeding said spending limit and said account number being blocked.