Methods and systems for cardholder initiated transactions

• US 8,086,534 B2
• Filed: 04/26/2011
• Issued: 12/27/2011
• Est. Priority Date: 12/31/2007
• Status: Active Grant

• Current Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Original Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Inventors: Powell, Jonathan Robert
• Primary Examiner(s): Merchant, Shahid
• Assistant Examiner(s): Shaikh, Mohammad Z
• Application Number:
  US13/094,143
• Publication Number:
  US 20110202463A1
• Time in Patent Office: 245 Days
• Field of Search: 705/44
• US Class Current: 705/44
• CPC Class Codes: G06Q 20/325 using wireless networks
• CPC Class Codes: G06Q 20/3265 characterised by personalisation for use
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• 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 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

Abstract

A cardholder-initiated financial transaction using a cardholder controlled input device in communication with a payment card network and a database is disclosed. The cardholder uses a payment card issued to the cardholder by an issuer bank. An exemplary method includes the steps of storing merchant data within the database including data identifying the merchants registered to utilize the card network and receiving from the input device transaction data relating to the financial transaction. The transaction data includes an authorization request and merchant identifying data that identifies the merchant involved in the transaction. The method further includes determining that the identified merchant is registered to utilize the card network by comparing the transaction data with the merchant data stored in the database, forwarding the authorization request to the issuer bank, receiving a response to the request from the issuer bank, and automatically forwarding the response to the input device.

Claims

1. A method of processing a cardholder-initiated financial transaction using a cardholder controlled input device in communication with a payment card network and a database, the cardholder associated with a payment card identifier issued to the cardholder by an issuer bank, the financial transaction performed with a merchant, said method comprising the steps of:

receiving transaction data at the cardholder controlled input device, the transaction data relating to the financial transaction, the transaction data including a merchant identifier that identifies the merchant involved in the transaction;

generating an authorization request at the cardholder controlled input device based at least in part on the transaction data, the authorization request including the merchant identifier and the payment card identifier, the authorization request configured to request an authorization message from the issuer bank indicating whether the cardholder has sufficient funds to complete the transaction;

transmitting the authorization request from the cardholder controlled input device to the issuer bank through the payment card network, the payment card network identifying the merchant as being registered to utilize the payment card network; and

receiving, at the cardholder controlled input device, the authorization message associated with the issuer bank, the authorization message including one of an approval and a denial of the authorization request.

2. A method according to claim 1 wherein receiving transaction data further comprises providing the merchant identifier and a transaction amount to the cardholder for inputting into the cardholder controlled input device.

3. A method according to claim 1 wherein receiving transaction data further comprises receiving, at the cardholder controlled input device, the merchant identifier and a transaction amount transmitted from a merchant point-of-sale (POS) device using near field communications.

4. A method according to claim 1 wherein receiving transaction data further comprises inputting the merchant identifier and a transaction amount into the cardholder controlled input device using data included on an invoice associated with the financial transaction.

5. A method according to claim 1 wherein receiving transaction data further comprises:

receiving, at the cardholder controlled input device, the merchant identifier and a transaction amount through at least one of an input signal from a merchant point-of-sale (POS) device, and data input from a user of the cardholder controlled input device.

6. A method according to claim 1 wherein transmitting the authorization request further comprises:

transmitting the authorization request directly from the cardholder controlled input device to the payment card network without any transmission input from a point-of-sale (POS) device associated with the merchant.

7. A method according to claim 1 further comprising:

receiving, at the cardholder controlled input device, a request for additional data relating to at least one of the cardholder, the merchant and the financial transaction for completing the financial transaction, wherein the request for additional data is initiated by at least one of the issuer bank and the payment card network.

8. A method according to claim 1 wherein the payment card identifier is associated with a cardholder account number, and wherein the authorization message is automatically forwarded to the merchant without revealing the cardholder'"'"'s account number.

9. A method according to claim 1 wherein the transaction is a time-based transaction, and wherein said method further comprises providing prompts to the cardholder to initiate the transaction by a specific time.

10. A cardholder controlled input device for processing a cardholder-initiated financial transaction with a merchant, the cardholder controlled input device in communication with a payment card network, the cardholder associated with a payment card identifier issued to the cardholder by an issuer bank, said cardholder controlled input device configured to:

receive transaction data relating to the financial transaction, the transaction data including a merchant identifier that identifies the merchant involved in the transaction;

generate an authorization request based at least in part on the transaction data, the authorization request including the merchant identifier and the payment card identifier, the authorization request configured to request an authorization message from the issuer bank indicating whether the cardholder has sufficient funds to complete the transaction;

transmit the authorization request to the issuer bank through the payment card network, the payment card network configured to identify the merchant as being registered to utilize the payment card network; and

receive the authorization message associated with the issuer bank, the authorization message including one of an approval and a denial of the authorization request.

11. A cardholder controlled input device according to claim 10 wherein said cardholder controlled input device includes an interface component, said cardholder controlled input device is further configured to receive the merchant identifier, the payment card identifier and a transaction amount inputted via the interface component, wherein the payment card identifier is associated with an account number assigned to the cardholder and used in payment of the financial transaction.

12. A cardholder controlled input device according to claim 11 wherein the payment card network is in communication with a database for storing cardholder information including a cardholder account number, and wherein the payment card network is configured to:

receive the merchant identifier, the payment card identifier and the transaction amount; and

retrieve from the database the cardholder account number corresponding to the received payment card identifier for processing payment of the financial transaction.

13. A cardholder controlled input device according to claim 10 wherein said cardholder controlled input device is configured to receive the merchant identifier and a transaction amount transmitted from a merchant point-of-sale (POS) device using near field communications.

14. A cardholder controlled input device according to claim 10 wherein said cardholder controlled input device includes an interface component, said cardholder controlled input device is further configured to receive the merchant identifier and a transaction amount through at least one of an input signal from a merchant point-of-sale (POS) device, and data input from a user via the interface component.

15. A cardholder controlled input device according to claim 10 wherein said cardholder controlled input device is further configured to receive at least one of the merchant identifier and a transaction amount from data included on an invoice associated with the financial transaction.

16. A cardholder controlled input device according to claim 10 wherein the payment card network is in communication with a database for storing merchant information including a merchant profile for each merchant registered to use the payment card network, and wherein the payment card network is configured to:

receive the authorization request including the merchant identifier from the cardholder controlled input device;

retrieve, from the database, the merchant profile associated with the received merchant identifier; and

transmit a request for additional data to the cardholder controlled input device based on the merchant profile, the request for additional data relating to at least one of the cardholder, the merchant and the financial transaction.

17. A cardholder controlled input device according to claim 10 wherein said cardholder controlled input device is further configured to transmit the authorization request directly to the payment card network without any transmission input from a point-of-sale (POS) device associated with the merchant.

18. A cardholder controlled input device according to claim 10 wherein the payment card identifier is associated with a cardholder account number, and wherein the authorization message is automatically forwarded to the merchant without revealing the cardholder'"'"'s account number.

19. A cardholder controlled input device according to claim 10 wherein the transaction is a time-based transaction, and wherein said cardholder controlled input device is further configured to prompt the cardholder to initiate the transaction.

20. One or more non-transitory computer-readable storage media including computer-executable instructions embodied thereon for processing a cardholder-initiated financial transaction using a cardholder controlled input device in communication with a payment card network, the financial transaction initiated by a cardholder with a merchant, the cardholder associated with a payment card identifier issued to the cardholder by an issuer bank, the cardholder controlled input device having at least one processor, wherein when executed by the at least one processor, the computer-executable instructions cause the processor to:

receive transaction data relating to the financial transaction, the transaction data including a merchant identifier that identifies the merchant involved in the transaction;

generate an authorization request based at least in part on the transaction data, the authorization request including the merchant identifier and the payment card identifier, the authorization request configured to request an authorization message from the issuer bank indicating whether the cardholder has sufficient funds to complete the transaction;

transmit the authorization request to the issuer bank through the payment card network, the payment card network identifying the merchant as being registered to utilize the payment card network; and

receive the authorization message associated with the issuer bank, the authorization message including one of an approval and a denial of the authorization request.

21. One or more non-transitory computer-readable storage media according to claim 20, wherein the computer-executable instructions further cause the processor to prompt a user to input the merchant identifier and a transaction amount.

22. One or more non-transitory computer-readable storage media according to claim 20, wherein the computer-executable instructions further cause the processor to receive the merchant identifier and a transaction amount transmitted from a merchant point-of-sale (POS) device using near field communications.