Guaranteed merchant payment in a card-not-present transaction
First Claim
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1. A method for providing guaranteed merchant payment for a card-not-present transaction, the method comprising:
- determining, by a computing device processor, authentication of a customer associated with a payment card, wherein the authentication is determined by one of an entity issuing the payment card or a third party under a directive of the entity;
receiving, at a computing device, notification of a first card-not-present transaction conducted between the customer, using the payment card, and a first merchant;
verifying, by a computing device processor, a nexus between the first card-not-present transaction and the authentication, wherein verifying the nexus includes one of verifying that the authentication and the first card-not-present transaction occurred during a same Internet session or verifying that the first card-not-present transaction occurred within a predetermined time limit after the authentication; and
in response to verifying the nexus, indicating, by a computing device processor, in a first transaction record that the first merchant is guaranteed payment, for the first card-not-present transaction, by the entity issuing the payment card based on the authentication of the customer, wherein the indication in the first transaction record provides for the first merchant to be paid for the first card-not-present transaction based on either the customer failing to fulfill their payment obligation for the transaction or the transaction being deemed fraudulent.
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Abstract
Embodiments of the invention provide for systems, devices, apparatus, methods and computer program products for payment card-issuing entities to guarantee merchant payment in card-not-present-transactions and, more specifically, automatically guaranteeing merchant payment in card-not-present transactions based on the payment card-issuing entity authenticating the customer prior to the transactions. By guaranteeing merchant payment in card-not-present transactions, the merchant'"'"'s risk associated with such transaction is greatly reduced.
118 Citations
27 Claims
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1. A method for providing guaranteed merchant payment for a card-not-present transaction, the method comprising:
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determining, by a computing device processor, authentication of a customer associated with a payment card, wherein the authentication is determined by one of an entity issuing the payment card or a third party under a directive of the entity; receiving, at a computing device, notification of a first card-not-present transaction conducted between the customer, using the payment card, and a first merchant; verifying, by a computing device processor, a nexus between the first card-not-present transaction and the authentication, wherein verifying the nexus includes one of verifying that the authentication and the first card-not-present transaction occurred during a same Internet session or verifying that the first card-not-present transaction occurred within a predetermined time limit after the authentication; and in response to verifying the nexus, indicating, by a computing device processor, in a first transaction record that the first merchant is guaranteed payment, for the first card-not-present transaction, by the entity issuing the payment card based on the authentication of the customer, wherein the indication in the first transaction record provides for the first merchant to be paid for the first card-not-present transaction based on either the customer failing to fulfill their payment obligation for the transaction or the transaction being deemed fraudulent. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9)
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10. An apparatus for providing guaranteeing merchant payment in a card-not-present transaction, the apparatus comprising:
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a computing platform including at least one processor and a memory; an authentication routine stored in the memory executable by the processor and configured to determine authentication of a customer associated with a payment card, wherein the authentication is determined by one of an entity issuing the payment card or a third party under a directive of the entity; a merchant payment routine stored in the memory executable by the processor and configured to (1) receive notification of a first card-not-present transaction conducted between the customer, using the payment card, and a first merchant, (2) verify a nexus between the first card-not-present transaction and the authentication by one of verifying that the authentication and the first card-not-present transaction occurred during a same Internet session or verifying that the first card-not-present transaction occurred within a predetermined time limit after the authentication and, (3) in response to verifying the nexus, indicate in a first transaction record that the first merchant is guaranteed payment, for the card-not-present transaction, by an entity issuing the payment card based on the authentication of the customer, wherein the indication in the first transaction record provides for the first merchant to be paid for the first card-not-present transaction based on either the customer failing to fulfill their payment obligation for the transaction or the transaction being deemed fraudulent. - View Dependent Claims (11, 12, 13, 14, 15, 16, 17, 18)
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19. A computer program product comprising:
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a non-transitory computer-readable medium comprising; a first set of codes for causing a computer to determine authentication of a customer associated with a payment card, wherein the authentication is determined by one of an entity issuing the payment card or a third party under a directive of the entity; a second set of codes for causing a computer to receive notification of a first card-not-present transaction conducted between the customer, using the payment card, and a first merchant; a third set of codes for causing a computer to verify a nexus between the first card-not-present transaction and the authentication, wherein verifying the nexus includes one of verifying that the authentication and the first card-not-present transaction occurred during a same Internet session or verifying that the first card-not-present transaction occurred within a predetermined time limit after the authentication; and a fourth set of codes for causing a computer to, in response to verifying the nexus, indicate in a first transaction record that the first merchant is guaranteed payment, for the card-not-present transaction, by an entity issuing the payment card based on the authentication of the customer, wherein the indication in the first transaction record provides for the first merchant to be paid for the first card-not-present transaction based on either the customer failing to fulfill their payment obligation for the transaction or the transaction being deemed fraudulent. - View Dependent Claims (20, 21, 22, 23, 24, 25, 26, 27)
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Specification