System and method for managing a transaction protocol

• US 8,635,131 B1
• Filed: 10/15/2004
• Issued: 01/21/2014
• Est. Priority Date: 07/10/2001
• Status: Expired due to Fees

• Current Assignee: Liberty Peak Ventures, LLC (Dominion Harbor Enterprises, LLC)
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Saunders, Peter D
• Primary Examiner(s): Colbert, Ella
• Assistant Examiner(s): CRANFORD, MICHAEL D
• Application Number:
  US10/711,968
• Time in Patent Office: 3,385 Days
• Field of Search: 705/35
• US Class Current: 705/35
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/14 specially adapted for billing systems
• CPC Class Codes: G06Q 20/3278 RFID or NFC payments by means of M-devices
• CPC Class Codes: G06Q 20/352 Contactless payments by cards
• 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

Abstract

The invention teaches a system and method for managing a transaction account using the BIN number included in a transaction account number. The transaction account number is provided to a transaction account issuer configured to retrieve the BIN number from the transaction account. A portion of the BIN number, called the BIN identifier, is retrieved by the transaction account issuer and used to locate a corresponding use or issuer-defined transaction processing protocol stored on the account issuer system. The account issuer may then process the transaction request in accordance with the protocol located.

Claims

1. A method for facilitating the management of a transaction request using a BIN identifier, comprising:

receiving, by a computer-based system for facilitating the management of a transaction request, at least one funding protocol parameter from a customer;

receiving, by the computer-based system, a transaction request, the transaction request including a transaction account number associated with a transaction account, wherein the transaction account is associated with the customer;

retrieving, by the computer-based system, a bank identification number (BIN) from the transaction account number, wherein the BIN indicates at least a transaction account issuer of the transaction account number;

routing, by the computer-based system, the transaction request to the transaction account issuer identified by the BIN;

retrieving, by the computer-based system, a BIN identifier from a portion of the BIN, the BIN identifier identifying a funding protocol for the transaction account;

retrieving, by the computer-based system, predefined parameters of the funding protocol, the predefined parameters defining a class of transactions to be processed according to the funding protocol, wherein a first transaction class is associated with a first funding source and a second transaction class is associated with a second funding source;

determining, by the computer-based system, that the transaction request satisfies the predefined parameters of the funding protocol; and

in response to the transaction request satisfying the predefined parameters of the funding protocol, processing, by the computer-based system, the transaction request in accordance with the funding protocol identified by the BIN identifier, and otherwise processing the transaction request with a non-customer-defined protocol.

2. The method of claim 1, comprising associating the BIN identifier to the first funding source or the second funding source.

3. The method of claim 2, comprising associating the BIN identifier to the funding protocol, wherein the BIN identifier is unique to the first funding source or the second funding source.

4. The method of claim 2, comprising associating the transaction account number to a transaction device.

5. The method of claim 4, comprising associating the transaction account number to a transaction device, wherein the transaction account number is unique to the transaction device.

6. The method of claim 2, comprising defining the BIN identifier as a fixed portion of the BIN, the BIN being fixed for a particular funding source.

7. The method of claim 2, comprising updating the funding protocol prior to processing the transaction request.

8. The method of claim 1, comprising defining the funding protocol in accordance with the first funding source or the second funding source.

9. The method of claim 8, comprising forwarding a portion of the transaction request to the first funding source or the second funding source for processing in accordance with the funding protocol.

10. The method of claim 9, comprising forwarding a portion of the transaction request to the first funding source or the second funding source in accordance with the BIN.

11. The method of claim 10, comprising receiving the transaction request from a merchant system, wherein the merchant system receives the transaction account number via radio frequency.

12. The method of claim 11, wherein the merchant system receives the transaction account number in magnetic stripe format.

17. The method of claim 1, wherein the predefined parameters further define a merchant identified for processing under the funding protocol.

18. The method of claim 1, further comprising requiring the customer to provide at least one of a PIN or a biometric sample to complete the transaction request in response to a transaction amount of the transaction request being greater than a predetermined per purchase spending limit.

19. The method of claim 1, wherein the transaction account issuer determines if the transaction request is part of the class of transactions predetermined to be processed according to the funding protocol.

20. The method of claim 17, wherein the transaction account issuer determines if the funding protocol requires the transaction account issuer to switch funding the transaction request from the first funding source to the second funding source.

21. The method of claim 20, wherein the transaction account issuer combines funds from the first funding source and the second finding source to satisfy the transaction request in response to a spending limit on the first funding source being exceeded.

22. The method of claim 20, wherein the transaction account issuer switches funding of the transaction request from the first funding source to the second funding source in response to a spending limit on the first funding source being exceeded.

13. A system configured to facilitate managing a transaction request using a bank identification number (BIN) comprising:

a transaction account issuer system configured to;

receive at least one funding protocol parameter from a customer;

receive a transaction request including, a transaction account number associated with a transaction account, the transaction account number including the BIN, wherein the transaction account is associated with the customer;

a transaction account issuer server for extracting a BIN identifier from a portion of the BIN, the BIN identifier identifying a funding protocol for the transaction account; and

a transaction account issuer database for storing;

the BIN identifier relative to the funding protocol for the transaction account,

the BIN relative to a funding source, and

predefined parameters of the funding protocol, the predefined parameters defining a class of transactions to be processed according to the funding protocol, wherein a first transaction class is associated with a first funding source and a second transaction class is associated with a second funding source;

wherein the transaction account issuer system is configured to;

receive the transaction request,

retrieve the BIN identifier from the transaction account number,

determine whether the transaction request satisfies the predefined parameters of the funding protocol,

if the transaction request satisfies the predefined parameters of the funding protocol, process the transaction request in accordance with the funding protocol identified by the BIN identifier, and otherwise process the transaction request with a non-customer-defined protocol, and

forward the transaction request to the funding source for processing, the transaction request being forwarded in accordance with the BIN.

14. A tangible non-transitory computer readable storage medium having computer-executable instructions stored thereon that, if executed by a computer based system configured to facilitate managing a transaction request, cause said computer based system to perform a method comprising:

receiving at least one funding protocol parameter from a customer;

receiving a transaction request, the transaction request including a transaction account number associated with a transaction account, wherein the transaction account is associated with the customer;

retrieving a bank identification number (BIN) from the transaction account number, wherein the BIN indicates at least a transaction account issuer of the transaction account number;

routing the transaction request to the transaction account issuer identified by the BIN;

retrieving a BIN identifier from a portion of the BIN, the BIN identifier identifying a funding protocol for the transaction account;

retrieving predefined parameters of the funding protocol, the predefined parameters defining a class of transactions to be processed according to the funding protocol, wherein a first transaction class is associated with a first funding source and a second transaction class is associated with a second funding source;

determining whether the transaction request satisfies the predefined parameters of the funding protocol; and

if the transaction request satisfies the predefined parameters of the funding protocol, processing the transaction request in accordance with the funding protocol identified by the BIN identifier, and otherwise processing the transaction request with a non-customer-defined protocol.

15. The computer-readable storage medium of claim 14 configured for associating the BIN identifier to the first funding source or the second funding source.

16. The computer-readable storage medium of claim 15 configured for associating the BIN identifier to the funding protocol, wherein the BIN identifier is unique to the first funding source or the second funding source.