Product level payment network acquired transaction authorization

• US 8,560,446 B2
• Filed: 12/28/2009
• Issued: 10/15/2013
• Est. Priority Date: 01/04/2005
• Status: Active Grant

• Current Assignee: Visa USA, Inc. (Visa, Inc.)
• Original Assignee: Visa USA, Inc. (Visa, Inc.)
• Inventors: Nguyen, Loc, Pourfallah, Stacy, Pruitt, Janet
• Primary Examiner(s): Holly, John H
• Application Number:
  US12/648,054
• Publication Number:
  US 20100100484A1
• Time in Patent Office: 1,387 Days
• Field of Search: 705/1.1, 705/40, 705/14.21, 705/39, 705/67, 705/44, 705/34, 705/26.1, 705/38, 235/379, 235/380
• US Class Current: 705/40
• CPC Class Codes: G06Q 10/10 Office automation; Time management
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• 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 20/405 Establishing or using transaction specific rules
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A flexible spending account system can be implemented according to one embodiment of the invention so as to automatically substantiate purchases made at a retailer merchant. For example, according to one embodiment of the invention, a method of authorizing products for purchase can be implemented by determining via a computer that a product requested for purchase at a point of sale by a consumer matches a qualified product category under the flexible spending account, sending an authorization request message for requesting use of said flexible spending account of said consumer, wherein said authorization request message comprises a total purchase amount field and a first qualified amount field for a first type of qualified items.

Claims

1. A processor-implemented product purchase authorization method, comprising:

receiving, at an address of an issuer of an account, a payment network authorization request message that includes;

an account identifier for an account being used to conduct a transaction on the account with a merchant;

an item code corresponding to an item to be purchased in the transaction from the merchant; and

an address of the merchant; and

determining via a processor that the account identifier in the payment network authorization request message is valid by matching the account identifier against a stored set of account identifiers;

determining via the processor that the item code corresponding to the item to be purchased in the payment network authorization request message matches a qualified item category under the account having the valid account identifier;

sending, in response to determining that the account identifier is valid and the item code matches a qualified item category, an authorization response from the address of the issuer for delivery, over a payment network, to the address of the merchant.

2. The method as defined in claim 1, wherein said payment network authorization request message further comprises, for each of a plurality of different said items, the item code for the respective said item.

3. The method as defined in claim 1, wherein the payment network includes an acquirer for the merchant from whom the merchant receives delivery of the authorization response.

4. The method as defined in claim 1, further comprising:

receiving a plurality of said payment network authorization request messages at the address of the issuer of said account;

grouping the payment network authorization request messages that are each associated with the account as a set of transaction records; and

sending said set of said transaction records from an address of said issuer to an address of an auditor.

5. The method as defined in claim 1, further comprising appending said payment network authorization request message to a payment network settlement record.

6. The method as defined in Claim 5, further comprising utilizing said payment network settlement record to complete payment for the transaction while forwarding said payment network authorization request message to an address of an auditor for monitoring account compliance.

7. The method as defined in claim 1, further comprising receiving the authorization response at an electronic Point Of Service terminal (POS).

8. The method as defined in claim 1, further comprising completing a sale of other said items requested for purchase in the transaction.

9. The method as defined in claim 1, wherein sending the authorization response from the address of the issuer for delivery, over the payment network, to the address of the merchant further comprises:

sending the authorization response from the address of the issuer to the address of a payment network system;

sending the authorization response from the address of the payment network system to the address of an acquirer for the merchant; and

sending the authorization response from the address of the acquirer for the merchant to the address of the merchant.