Method and system for determining point of sale authorization

• US 8,554,631 B1
• Filed: 12/13/2010
• Issued: 10/08/2013
• Est. Priority Date: 07/02/2010
• Status: Active Grant

• Current Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Original Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Inventors: Barton, Thomas C., Paulson, Harold, Varhus, Elizabeth Pierce
• Primary Examiner(s): Iwarere, Seye
• Application Number:
  US12/966,213
• Time in Patent Office: 1,030 Days
• Field of Search: 705/16, 705/44
• US Class Current: 705/16
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 20/405 Establishing or using transaction specific rules

Abstract

According to an embodiment of the present invention, an automated computer implemented method and system for determining authorization for a point of sale transaction, wherein the method is executed by a programmed computer processor which communicates with a user via a communication network comprising receiving a point of sale authorization request for a transaction from a customer at a merchant, via a communication network; accessing profile data associated with one or more of the customer, an account associated with the customer and the merchant involved in the transaction; applying one or more rules to the authorization request wherein the one or more rules comprises one or more of credit rules and fraud rules; applying one or more scoring algorithm to the authorization request wherein the one or more scoring algorithm indicates an assessment of risk; determining an authorization response, via a programmed computer processor, based at least in part on a combination of profile data, the one or more applied rules and the one or more applied scoring algorithms; providing the authorization response for the transaction via the communication network.

Claims

1. An automated computer implemented method for determining authorization for a point of sale transaction, wherein the method is executed by a programmed computer processor which communicates with a user via a communication network, the method comprising the steps of:

receiving, via an interface, a point of sale authorization request for a transaction from a customer at a merchant, via a communication network;

accessing, via a profile module comprising at least one computer processor, profile data associated with the customer and an account associated with the customer, wherein the profile data comprises geographic data associated with the customer, the merchant and a card product associated with the customer and risk assessment relevant to a corresponding geographic location;

accessing, via the profile module, merchant profile data associated with the merchant involved in the transaction;

applying, via a rules module comprising at least one computer processor, one or more rules to the authorization request wherein the one or more rules comprises credit rules and fraud rules wherein the fraud rules use the geographic data to identify potential fraud;

applying, via a scoring module comprising at least one computer processor, one or more scoring algorithm to the authorization request wherein the one or more scoring algorithm indicates an assessment of risk;

determining an authorization response, via a decision engine comprising at least one computer processor, based at least in part on a combination of profile data, the one or more applied rules and the one or more applied scoring algorithms; and

providing the authorization response for the transaction via the communication network.

2. The method of claim 1, wherein the profile data comprises travel advisories and purchase advisories associated with the customer.

3. The method of claim 1, wherein the one or more scoring algorithm comprises credit risk and fraud risk.

4. The method of claim 3, wherein the fraud risk is based on one or more of fraud events and fraud trends.

5. The method of claim 1, wherein the one or more scoring algorithm comprises one or more of profitability, spend utilization and attrition.

6. The method of claim 1, wherein the authorization response comprises one or more of memo on account, queue for credit review, queue for fraud alert.

7. The method of claim 1, wherein the authorization response comprises one or more contact customer and flag account for suspected fraud.

8. The method of claim 1, further comprising the step of:

generating one or more reports demonstrating decision and action metrics associated with historic POS authorizations.

9. The method of claim 1, further comprising the step of:

storing data associated with the transaction in an authorization log, wherein the data comprises the authorization response.

11. The system of claim 9, wherein the profile data comprises travel advisories and purchase advisories associated with the customer.

12. The system of claim 9, wherein the one or more scoring algorithm comprises credit risk and fraud risk.

13. The system of claim 12, wherein the fraud risk is based on one or more of fraud events and fraud trends.

14. The system of claim 9, wherein the one or more scoring algorithm comprises one or more of profitability, spend utilization and attrition.

15. The system of claim 9, wherein the authorization response comprises one or more of memo on account, queue for credit review, queue for fraud alert.

16. The system of claim 9, wherein the authorization response comprises one or more contact customer and flag account for suspected fraud.

17. The system of claim 9, further comprising:

a reports module for generating one or more reports demonstrating decision and action metrics associated with historic POS authorizations.

18. The system of claim 9, further comprising:

an authorization log for storing data associated with the transaction, wherein the data comprises the authorization response.

10. An automated computer implemented system for determining authorization for a point of sale transaction, the system comprising:

an interface configured to receive a point of sale authorization request for a transaction from a customer at a merchant, via a communication network;

a profile module, comprising at least one computer processor, configured to access profile data associated with the customer and an account associated with the customer wherein the profile data comprises geographic data associated with the customer, the merchant and a card product associated with the customer and risk assessment relevant to a corresponding geographic location;

further configured to access merchant profile data associated with and the merchant involved in the transaction;

a rules module, comprising at least one computer processor, configured to apply one or more rules to the authorization request wherein the one or more rules comprises credit rules and fraud rules wherein the fraud rules use the geographic data to identify potential fraud;

a scoring module, comprising at least one computer processor, configured to apply one or more scoring algorithm to the authorization request wherein the one or more scoring algorithm indicates an assessment of risk; and

a decision engine, comprising at least one computer processor, configured to determine an authorization response based at least in part on a combination of profile data, the one or more applied rules and the one or more applied scoring algorithms; and

further configured to provide the authorization response for the transaction via the communication network.