Credit card point of service payment authorization system

• US 9,043,224 B2
• Filed: 12/04/2012
• Issued: 05/26/2015
• Est. Priority Date: 12/05/2011
• Status: Active Grant

• Current Assignee: Securus Incorporated (Kratos Defense & Security Solutions Incorporated)
• Original Assignee: Securus Incorporated (Kratos Defense & Security Solutions Incorporated)
• Inventors: Simmons, Wayne
• Primary Examiner(s): Iwarere, Seye
• Application Number:
  US13/694,469
• Publication Number:
  US 20140156424A1
• Time in Patent Office: 903 Days
• Field of Search: 705/16
• US Class Current: 705/16
• CPC Class Codes: G06Q 20/322 Aspects of commerce using mobile devices [M-devices]
• 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 risk of fraud in point of sale credit card transactions is reduced by providing independently-routed verification by communication between the authorized user of the credit card and the issuer of the credit card through a trusted intermediary.

Claims

1. A system for secure verification of point of sale credit card transactions to reduce fraudulent transactions, comprising:

a third party, independent backend communications module;

a merchant point of sale network in communication with the backend communications module, adapted to request authorization of a transaction from a user'"'"'s bank and receive confirmation or denial of authorization of the transaction from the user'"'"'s bank;

a mobile telephone in communication with the backend communications module which has been registered with a verifying agency as belonging to said user;

a bank network in communication with the backend communications module, adapted to receive requests for authorization of transactions, determine if the user authorizes a transaction, and confirm or deny the transaction based on the user'"'"'s authorization; and

an application running on said mobile telephone adapted to pre-authorize transactions and authorize or deny a currently pending transaction;

wherein there is no direct communication between the merchant network, the mobile telephone, and the bank network.

3. The system of claim 1, wherein the user is presented with the option of pre-authorizing transactions on multiple credit cards.

4. The system of claim 3, wherein the user is presented with the option of pre-authorizing different amounts for each credit card.

5. The system of claim 1, wherein the authorization or pre-authorization is alternately completed via an interactive voice response (IVR) system.

6. The system of claim 1, wherein the pre-authorization exists for a period of time.

7. The system of claim 6, wherein the period of time is chosen by the user.

2. A method for verifying the authenticity of a request for authorization of payment in point of sale credit card transactions to reduce fraudulent transactions, comprising, on a third party, independent backend communications module:

receiving a request from a merchant point of sale system for authorization of a transaction;

determining if the transaction has been pre-authorized by a user;

confirming the transaction if the transaction has been pre-authorized;

sending a signal requesting confirmation or denial of authorization to a mobile device of the user if the transaction has not been pre-authorized;

receiving a confirmation or denial of authorization from the user; and

responding to said merchant with an approval or a denial of authorization based on the user'"'"'s confirmation or denial of authorization;

wherein there is no direct communication between the merchant point of sale system, the mobile device, and a bank.

8. The method of claim 2, further comprising presenting the user with the option of pre-authorizing transactions on multiple credit cards.

9. The method of claim 8, further comprising presenting the user with the option of pre-authorizing different amounts for each credit card.

10. The method of claim 2, wherein the authorization or pre-authorization is alternately completed via an interactive voice response (IVR) system.

11. The method of claim 2, wherein the pre-authorization exists for a period of time.

12. The method of claim 11, wherein the period of time is chosen by the user.

13. A method for authorizing payments in point of sale credit card transactions to reduce fraudulent transactions, comprising:

creating a first user interface on a mobile device wherein a user is presented with the option of pre-authorizing a transaction;

creating a second user interface on a mobile device wherein the user is presented with the option of confirming or denying a currently pending transaction;

transmitting at least one of the pre-authorization, the confirmation, or the denial of the transaction to a third party, independent intermediary for dissemination to a merchant point of sale system;

wherein there is no direct communication between the merchant point of sale system, the mobile device, and a bank.

14. The method of claim 13, further comprising presenting the user with the option of pre-authorizing transactions on multiple credit cards.

15. The method of claim 14, further comprising presenting the user with the option of pre-authorizing different amounts for each credit card.

16. The method of claim 13, wherein the pre-authorization exists for a period of time.

17. The method of claim 16, wherein the period of time is chosen by the user.