Methods and systems for processing card-not-present financial transactions as card-present financial transactions

• US 8,099,363 B1
• Filed: 07/23/2007
• Issued: 01/17/2012
• Est. Priority Date: 06/30/2007
• Status: Active Grant

• Current Assignee: Michael W. Kilchenstein Jr
• Original Assignee: Michael W. Kilchenstein Jr
• Inventors: Kilchenstein, Michael W. Jr.
• Primary Examiner(s): Norman, Samica L
• Application Number:
  US11/781,446
• Time in Patent Office: 1,639 Days
• Field of Search: 705/65, 705/44, 705/39, 705/1
• US Class Current: 705/44
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking 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 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes

Abstract

Methods and systems for processing and facilitating the processing of payment card transactions between remote merchants and purchaser/card holders as authenticated card-present transactions, and for reducing processing fees charged to merchants. Purchaser/card holders are provided with payment card readers, and optionally, with biometric readers and/or personal identification number (“PIN”) key pads. When a payment card transaction is to be conducted between a merchant and a purchaser/card holder, the purchaser/card holder is connected or redirected to a remote face-to-face (“RF2F”) program/system. The RF2F program/system is configured to receive personal identification information from the purchaser/card holder, and optionally from the biometric reader and/or PIN key pad, and to authenticate the purchaser/card holder. The RF2F program/systemRF2F program/system/system is further configured to receive payment card information from the payment card reader, and to authenticate the payment card. The RF2F program/systemRF2F program/system/system is thus able to authenticate the payment card transaction as a card-present transaction. Accordingly, card processors and/or financial institutions, in cooperation with participating merchants and consumers, can reduce the number of fraudulent transactions occurring in the marketplace. RF2F payment card processing will reduce the cost of payment card related fraud as well as the processing fees charged to merchants. Methods and systems for rewarding merchants and purchaser/card holders are disclosed herein.

Claims

1. A method, comprising:

receiving a purchase request and an indication of a corresponding requestor at a merchant computer system;

initiating, at the merchant computer system, an electronic mail message to an electronic mail address associated with the requestor in response to the purchase request, wherein the electronic mail message includes a textual description of the purchase request and a first computer readable link to a first network address of a card processor computer system, and wherein the first computer readable link is configured to be displayed at by a requestor computer system as a first requestor-selectable link within the electronic mail message; and

receiving an authorization indication at the merchant computer system from the card processor computer system that the purchase request is approved as a card-present financial transaction;

wherein the receiving the purchase request, the initiating of the electronic mail message, and the receiving of the authorization indication are performed in a suitably programmed merchant computer system.

2. The method according to claim 1, wherein the card processor computer system is configured to communicate with the requestor computer system over a network connection in response to requestor activation of the computer readable link, to authenticate an identity of the requestor at least in part over the network connection, to receive information from a card reader located physically proximate to the requestor, and to authorize the purchase request as a card-present financial transaction.

3. The method according to claim 1, wherein the electronic mail message includes a second computer readable link to a network address associated with the merchant computer system configured to be displayed at the requestor computer system as a second requestor-selectable link within the electronic mail message.

4. The method according to claim 3, further including, permitting the requestor to revise the purchase request at the merchant computer system through the second computer readable link to the merchant computer system.

5. The method according to claim 3, further including, permitting the requestor to cancel the purchase request at the merchant computer system through the second computer readable link to the merchant computer system.

6. The method according to claim 1, wherein the electronic mail message includes a second computer readable link to a second network address associated with the card processor computer system to permit the requestor to enroll with the card processor computer system.

7. The method according to claim 1, wherein the initiating of the electronic mail message includes sending the electronic mail message from the merchant computer system to the electronic mail address associated with the requestor.

8. The method according to claim 1, wherein the initiating of the electronic mail message includes sending a transaction data packet corresponding to the purchase request from the merchant computer system to the card processor computer system, wherein the card processor computer system is configured to send the electronic mail message to the electronic mail address associated with the requestor in response to the transaction data packet.

9. A system, comprising:

a merchant computer system configured to receive a purchase request and an indication of a corresponding requestor, to initiate an electronic mail message to an electronic mail address associated with the requestor in response to the purchase request, and to receive an authorization indication from the card processor computer system that the purchase request is approved;

wherein the electronic mail message includes a textual description of the purchase request and a first computer readable link to a network address of a card processor computer system, and wherein the first computer readable link is configured to be displayed at the requestor computer system as a first requestor-selectable link within the electronic mail message.

10. The system of claim 9, wherein the card processor computer system is configured to communicate with the requestor computer system over a network connection in response to requestor activation of the first computer readable link, to authenticate an identity of the requestor at least in part over the network connection, to receive information from a card reader located physically proximate to the requestor, and to authorize the purchase request as a card-present financial transaction.

11. The system of claim 9, wherein the merchant computer system is configured to provide a second computer readable link to a network address associated with the merchant computer system with the electronic mail message, and wherein the second computer readable link is configured to be displayed at the requestor computer system as a second requestor-selectable link within the electronic mail message.

12. The system of claim 11, wherein the merchant computer system is configured to permit the requestor to revise the purchase order through the second computer readable link to the network address associated with the merchant computer system.

13. The system of claim 11, wherein the merchant computer system is configured to permit the requestor to cancel the purchase order through the second computer readable link to the network address associated with the merchant computer system.

14. The system of claim 9, wherein the merchant computer system is configured to provide a second computer readable link to a second network address associated with the card processor computer system with the electronic mail message, to permit the requestor to enroll with the card processor computer system.

15. The system of claim 9, wherein the merchant computer system is configured to send the electronic mail message from merchant computer system to the electronic mail address associated with the requestor.

16. The system of claim 9, wherein the merchant computer system is configured to send a transaction data packet corresponding to the purchase request to the card processor computer system, and wherein the card processor computer system is configured to send the electronic mail message to the electronic mail address associated with the requestor in response to the transaction data packet.