Method and system for assessing merchant risk during payment transaction
First Claim
1. A method for assessing risk associated with accepting payment from a consumer during a transaction, the method comprising:
- receiving, at a payment device of the merchant, data related to a transaction card tendered by the consumer to pay for a good or a service provided by the merchant;
receiving, through a network and at the payment device, an indicator representing the risk associated with accepting payment from the consumer using the transaction card, the indicator comprising a weighted score, a first portion of the weighted score being attributable to a first type of data, a second portion of the weighted score being attributable to a second type of data; and
determining whether to accept payment from the consumer using the transaction card based at least in part upon the indicator.
1 Assignment
0 Petitions
Accused Products
Abstract
Systems and methods for assessing transaction risk. A consumer tenders a transaction card to a merchant to purchase a good or service. A payment device of the merchant, such as a payment terminal or mobile communication device of the merchant, is used to process the payment utilizing a risk assessment system. Card data received by the payment device is sent to the risk assessment system, which processes card data and generates an indicator representing the risk associated with accepting payment using the card. The indicator is sent to the payment device to provide the merchant input regarding risk associated with using the card (e.g., likelihood of fraud or chargeback) in a seamless manner. If the risk level is too high, the merchant may reject the card. The risk indicator may be based on different types of data from different sources, e.g., data from a first source related to the credit history of the consumer and data from a second source related to the identity of the consumer.
209 Citations
37 Claims
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1. A method for assessing risk associated with accepting payment from a consumer during a transaction, the method comprising:
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receiving, at a payment device of the merchant, data related to a transaction card tendered by the consumer to pay for a good or a service provided by the merchant; receiving, through a network and at the payment device, an indicator representing the risk associated with accepting payment from the consumer using the transaction card, the indicator comprising a weighted score, a first portion of the weighted score being attributable to a first type of data, a second portion of the weighted score being attributable to a second type of data; and determining whether to accept payment from the consumer using the transaction card based at least in part upon the indicator. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 35)
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18. A system for assessing risk associated with accepting payment from a consumer during a transaction, the system comprising:
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a payment device operable process a payment by a transaction card tendered by the consumer to purchase a good or service provided by a merchant; and a computer operably coupled to the payment device through a network, the computer hosting a risk assessment system, the payment device being operable to receive data related to the transaction card and to send the received data through the network to the risk assessment system, the risk assessment system being operable to process the data related to the transaction card and to provide an indicator representing the risk associated with accepting payment using the transaction card, the indicator comprising a weighted score, a first portion of the weighted score being attributable to a first type of data, a second portion of the weighted score being attributable to a second type of data, the payment device being further operable to receive the indicator from the computer through the network, a determination of whether to accept payment from the consumer using the transaction card being based at least in part upon the indicator. - View Dependent Claims (19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34)
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36. A method for assessing risk associated with accepting payment from a consumer during a transaction, the method comprising:
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receiving, at a payment device of the merchant, data related to a transaction card tendered by the consumer to pay for a good or a service provided by the merchant; receiving, at the payment device in real time during the transaction, an indicator representing the risk associated with accepting payment from the consumer using the transaction card, the indicator comprising a weighted score, a first portion of the weighted score being attributable to a first type of data, a second portion of the weighted score being attributable to a second type of data; and determining whether to accept payment from the consumer using the transaction card based at least in part upon the indicator. - View Dependent Claims (37)
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Specification