Methods for risk management in payment-enabled mobile device

• US 9,240,005 B2
• Filed: 10/29/2010
• Issued: 01/19/2016
• Est. Priority Date: 11/06/2009
• Status: Active Grant

• Current Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Original Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Inventors: Mestr, Patrick, Radu, Cristian, Vanneste, Paul, Phillips, Simon, Carter, Ronald D.
• Primary Examiner(s): Zeender, F.
• Assistant Examiner(s): Amsdell, Dana
• Application Number:
  US12/915,550
• Publication Number:
  US 20110112918A1
• Time in Patent Office: 1,908 Days
• US Class Current: 1/1
• CPC Class Codes: G06Q 20/16 Payments settled via telecommunication systems
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/204 comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit
• CPC Class Codes: G06Q 20/28 Pre-payment schemes, e.g. "pay before"
• CPC Class Codes: G06Q 20/3265 characterised by personalisation for use
• CPC Class Codes: G06Q 20/3278 RFID or NFC payments by means of M-devices
• CPC Class Codes: G06Q 20/3433 the counter having monetary units
• CPC Class Codes: G06Q 20/349 Rechargeable cards
• CPC Class Codes: G06Q 20/381 Currency conversion
• 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 20/4012 Verifying personal identification numbers [PIN]
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 20/409 Device specific authentication in transaction processing
• CPC Class Codes: G07F 7/1025 Identification of user by a PIN code

Abstract

A payment-enabled mobile device such as a “smart phone” incorporates risk management features that are applicable to its use in contactless payment transactions. Some features may govern when verification of the cardholder'"'"'s identity is required for consummation of the current transaction. The features may be configurable by the payment card account issuer and/or the user of the mobile device.

Claims

1. A payment-enabled mobile device, comprising:

at least one mobile device processor comprising a non-volatile memory storing a first counter and an associated first accumulator used for financial risk management purposes prescribed by an issuer of a payment card account, and storing a second counter and an associated second accumulator used for risk management purposes related to a lost or stolen mobile device prescribed by the issuer, and storing a payment application program;

an antenna; and

a transceiver, coupled to the antenna, for exchanging wireless signals via the antenna with a proximity reader component;

the transceiver operating under control by the at least one mobile device processor and the payment application program;

wherein the payment application program includes instructions configured by the issuer of the payment card account assigned to the user of the payment-enabled mobile device that cause the mobile device processor to;

detect when the payment-enabled mobile device is tapped on a reader;

determine that available prepaid funds are adequate for a current transaction based on a current value of at least one of the first accumulator and the first counter;

determine that a current value of the second counter and the second accumulator exceeds a lost and stolen risk management limit;

prompt the user to perform at least one cardholder verification method (CVM);

determine that the at least one CVM performed by the user is valid;

reset the second counter and the second accumulator;

detect that the mobile device has again been tapped on the reader by the user; and

consummate the transaction.

2. A method of operating a payment-enabled mobile device comprising:

detecting, by a mobile device processor of a payment-enabled mobile device, that the payment-enabled mobile device has been tapped on a reader by a user;

determining, by the mobile device processor, that available prepaid funds stored in a memory are adequate for a current transaction based on a current value of at least one of a first accumulator and a first counter;

determining, by the mobile device processor, that a current value of a second counter and a second accumulator stored in the memory exceeds a lost and stolen risk management limit;

prompting, by the mobile device processor, the user to perform at least one cardholder verification method (CVM);

determining, by the mobile device processor, that the at least one CVM performed by the user is valid;

resetting, by the mobile device processor, the second counter and the second accumulator;

detecting, by the mobile device processor, that the mobile device has again been tapped on the reader by the user; and

consummating, by the mobile device processor, the current transaction.

3. The method of claim 2, wherein after detecting that the payment-enabled device has been tapped on a reader, further comprising:

determining, by the mobile device processor, that available prepaid funds stored in a memory are inadequate for a current transaction based on a current value of at least one of a first accumulator and a first counter;

declining, by the mobile device processor, the current transaction; and

prompting, by the mobile device processor, the user to top-up the prepaid funds amount.

4. The method of claim 2, further comprising, after prompting the user to perform the at least one cardholder verification method (CVM), determining, by the mobile device processor, one of that the at least one CVM performed by the user is incorrect or that a predetermined time has elapsed without performance of the at least one CVM by the user;

prompting, by the mobile device processor, the user to perform at least CVM and incrementing a counter;

determining, by the mobile device processor, that the at least one CVM performed by the user is valid;

resetting, by the mobile device processor, the second counter and the second accumulator;

detecting, by the mobile device processor, that the mobile device has again been tapped on the reader by the user; and

consummating, by the mobile device processor, the current transaction.

5. The method of claim 2, further comprising, after prompting the user to perform the at least one cardholder verification method (CVM):

determining, by the mobile device processor, that one of the at least one CVM performed by the user is incorrect or that a predetermined time has elapsed without performance of the at least one CVM by the user;

determining, by the mobile device processor, that the counter has reached a predetermined limit; and

declining, by the mobile device processor, the current transaction.