System, method, and computer program for dynamically identifying a merchant associated with an authorization request for a payment card

• US 9,767,457 B1
• Filed: 07/30/2014
• Issued: 09/19/2017
• Est. Priority Date: 08/19/2013
• Status: Active Grant

• Current Assignee: Marqeta, Inc.
• Original Assignee: Marqeta, Inc.
• Inventors: Ford, Anthony, Gardner, Jason M., Lopez, Mark, Matter, David, Salla, Jatin P.
• Primary Examiner(s): Niquette, Robert R
• Assistant Examiner(s): KING JR., JOSEPH W
• Application Number:
  US14/447,200
• Time in Patent Office: 1,147 Days
• Field of Search: None
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/202 Interconnection or interaction of plural electronic cash registers [ECR] or to host computer, e.g. network details, transfer of information from host to ECR or from ECR to ECR
• CPC Class Codes: G06Q 20/3825 Use of electronic signatures
• 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 20/4014 Identity check for transactions
• CPC Class Codes: G06Q 20/4097 using mutual authentication between devices and transaction partners

Abstract

The disclosure is directed to a system, method, and computer program for dynamically identify a merchant associated with an authorization request for a payment card, wherein a merchant identifier in the authorization request is unrecognized. A plurality of unique signatures is created for each of a plurality of registered merchants, wherein the signatures for each registered merchant are based on values of merchant attributes associated with the registered merchant. In response to the system receiving an authorization request for a payment card that includes an unrecognized merchant identifier used to process authorization requests, a plurality of unique signatures is generated for the unrecognized merchant based on a combination of merchant attributes in the authorization request. A payment processing system then determines if the signatures match one of the signatures previously created for the registered merchants. If so, the authorization request is identified as originating from the matching registered merchant.

Claims

1. A method, performed by a payment card system that processes payment card transactions, for dynamically identifying merchants associated with one or more purchase authorization requests, wherein each merchant is associated with a select merchant identifier used to identify said merchant for the purpose of processing the one or more purchase authorization requests, the method comprising:

creating and storing a plurality of unique signatures for each of a plurality of registered merchants, wherein each of the plurality of unique signatures for the plurality of registered merchants is based on a combination of values of merchant attributes associated with each registered merchant, and wherein the plurality of unique signatures for the plurality of registered merchants are created in response to receiving one or more purchase authorization requests in which the select merchant identifier is recognized and matched to a registered merchant, and wherein the values of the merchant attributes for the plurality of unique signatures for the plurality of registered merchants are obtained from said one or more purchase authorization requests having recognized select merchant identifiers;

receiving a purchase authorization request for a payment card that includes an unrecognized merchant identifier to be used to process purchase authorization requests, wherein the unrecognized merchant identifier corresponds to an unrecognized merchant;

generating a plurality of unique signatures for the unrecognized merchant based on a combination of values of merchant attributes in the purchase authorization request having the unrecognized merchant identifier, wherein the plurality of unique signatures for the unrecognized merchant are based on the same combination of merchant attributes as the plurality of unique signatures for the plurality of registered merchants;

determining that one or more of the generated plurality of unique signatures for the unrecognized merchant match one or more of the plurality of unique signatures for the plurality of registered merchants; and

in response to one or more of the generated plurality of unique signatures for the unrecognized merchant matching one or more of the plurality of unique signatures for the plurality of registered merchants, associating the purchase authorization request having the unrecognized merchant identifier with the select merchant identifier of a registered merchant for which the one or more unique signatures for the unrecognized merchant and for the registered merchant match, and processing the purchase authorization request as originating from the matched registered merchant.

2. The method of claim 1, wherein processing the purchase authorization request includes applying at least one rule and, if the rule is not satisfied, the purchase authorization request is rejected.

3. The method of claim 2, wherein the rule is that the plurality of unique signatures must have been previously confirmed for the matched registered merchant a threshold number of times.

4. The method of claim 2, wherein the rule is that a minimum number of unique signatures for the unrecognized merchant must match one or more of the plurality of unique signatures for the plurality of registered merchants.

5. The method of claim 2, wherein the rule is that an account holder associated with the payment card must satisfy a threshold spending amount.

6. The method of claim 1, wherein the payment card is for an account with one or more merchant purses, wherein processing the purchase authorization request comprises:

determining that an account holder associated with the purchase authorization request has sufficient funds for the purchase in a merchant purse associated with the matched registered merchant; and

approving the purchase authorization request in response to the account holder having sufficient funds in the merchant purse.

7. The method of claim 1, wherein the merchant identifier is a MID.

8. The method of claim 1, wherein the merchant attributes used in the combinations include two or more of the following:

merchant name, merchant location, merchant TID, merchant category code, and swipe/online flag.

9. The method of claim 1, further comprising:

in response to none of the generated plurality of unique signatures for the unrecognized merchant matching any of the plurality of unique signature for the plurality of registered merchants, determining that a value for a merchant name attribute in the purchase authorization request matches a name associated with a registered merchant; and

in response to the value of the merchant name attribute matching a name associated with a registered merchant and in response to a purchase amount in the purchase authorization request being below a threshold value, approving the purchase authorization request.

10. A payment card system for dynamically identifying merchants associated with one or more purchase authorization requests, wherein each merchant is associated with a select merchant identifier used to identify said merchant for the purpose of processing the one or more purchase authorization requests, the payment card system comprising:

one or more processors;

one or more memory units coupled to the one or more processors, wherein the one or more memory units store instructions that, when executed by the one or more processors, cause the payment card system to perform the operations of;

creating and storing a plurality of unique signatures for each of a plurality of registered merchants, wherein each of the plurality of unique signatures for the plurality of registered merchants is based on a combination of values of merchant attributes associated with each registered merchant, and wherein the plurality of unique signatures for the plurality of registered merchants are created in response to receiving one or more purchase authorization requests in which the select merchant identifier is recognized and matched to a registered merchant, and wherein the values of the merchant attributes for the plurality of unique signatures for the plurality of registered merchants are obtained from said one or more purchase authorization requests having recognized select merchant identifiers;

receiving a purchase authorization request for a payment card that includes an unrecognized merchant identifier to be used to process purchase authorization requests, wherein the unrecognized merchant identifier corresponds to an unrecognized merchant;

generating a plurality of unique signatures for the unrecognized merchant based on a combination of values of merchant attributes in the purchase authorization request having the unrecognized merchant identifier, wherein the plurality of unique signatures for the unrecognized merchant are based on the same combination of merchant attributes as the plurality of unique signatures for the plurality of registered merchants;

determining that one or more of the generated plurality of unique signatures for the unrecognized merchant match one or more of the plurality of unique signatures for the plurality of registered merchants; and

in response to one or more of the generated plurality of unique signatures for the unrecognized merchant matching one or more of the plurality of unique signatures for the plurality of registered merchants, associating the purchase authorization request having the unrecognized merchant identifier with the select merchant identifier of a registered merchant for which the one or more unique signatures for the unrecognized merchant and for the registered merchant match, and processing the purchase authorization request as originating from the matched registered merchant.

11. The payment card system of claim 10, wherein processing the purchase authorization request includes applying at least one rule and, if the rule is not satisfied, the purchase authorization request is rejected.

12. The payment card system of claim 11, wherein the rule is that the plurality of unique signatures must have been previously confirmed for the matched registered merchant a threshold number of times.

13. The payment card system of claim 11, wherein the rule is that a minimum number of unique signatures for the unrecognized merchant must match one or more of the plurality of unique signatures for the plurality of registered merchants.

14. The payment card system of claim 11, wherein the rule is that an account holder associated with the payment card must satisfy a threshold spending amount.

15. The payment card system of claim 10, wherein the payment card is for an account with one or more merchant purses, wherein processing the purchase authorization request comprises:

determining that an account holder associated with the purchase authorization request has sufficient funds for the purchase in a merchant purse associated with the matched registered merchant; and

approving the purchase authorization request in response to the account holder having sufficient funds in the merchant purse.

16. A non-transitory, computer-readable medium comprising a computer program, that, when executed by a payment card system, enables the payment card system to perform the following method for dynamically identifying merchants associated with one or more purchase authorization requests, wherein each merchant is associated with a select merchant identifier used to identify said merchant for the purpose of processing the one or more purchase authorization requests, the method comprising:

creating and storing a plurality of unique signatures for each of a plurality of registered merchants, wherein each of the plurality of unique signatures for the plurality of registered merchants is based on a combination of values of merchant attributes associated with each registered merchant, and wherein the plurality of unique signatures for the plurality of registered merchants are created in response to receiving one or more purchase authorization requests in which the select merchant identifier is recognized and matched to a registered merchant, and wherein the values of the merchant attributes for the plurality of unique signatures for the plurality of registered merchants are obtained from said one or more purchase authorization requests having recognized select merchant identifiers;

receiving a purchase authorization request for a payment card that includes an unrecognized merchant identifier to be used to process purchase authorization requests, wherein the unrecognized merchant identifier corresponds to an unrecognized merchant;

generating a plurality of unique signatures for the unrecognized merchant based on a combination of values of merchant attributes in the purchase authorization request having the unrecognized merchant identifier, wherein the plurality of unique signatures for the unrecognized merchant are based on the same combination of merchant attributes as the plurality of unique signatures for the plurality of registered merchants;

determining that one or more of the generated plurality of unique signatures for the unrecognized merchant match one or more of the plurality of unique signatures for the plurality of registered merchants; and

in response to one or more of the generated plurality of unique signatures for the unrecognized merchant matching one or more of the plurality of unique signatures for the plurality of registered merchants, associating the purchase authorization request having the unrecognized merchant identifier with the select merchant identifier of a registered merchant for which the one or more unique signatures for the unrecognized merchant and for the registered merchant match, and processing the purchase authorization request as originating from the matched registered merchant.

17. The computer-readable medium of claim 16, wherein processing the purchase authorization request includes applying at least one rule and, if the rule is not satisfied, the purchase authorization request is rejected.

18. The computer-readable medium of claim 17, wherein the rule is that the plurality of unique signatures must have been previously confirmed for the matched registered merchant a threshold number of times.

19. The computer-readable medium of claim 18, wherein the rule is that a minimum number of unique signatures for the unrecognized merchant must match one or more of the plurality of unique signatures for the plurality of registered merchants.

20. The computer-readable medium of claim 18, wherein the rule is that an account holder associated with the payment card must satisfy a threshold spending amount.

21. The computer-readable medium of claim 17, wherein the payment card is for an account with one or more merchant purses, wherein processing the purchase authorization request comprises:

determining that an account holder associated with the purchase authorization request has sufficient funds for the purchase in a merchant purse associated with the matched registered merchant; and

approving the purchase authorization request in response to the account holder having sufficient funds in the merchant purse.