System and method for authorizing a payment transaction

• US 9,852,416 B2
• Filed: 03/14/2013
• Issued: 12/26/2017
• Est. Priority Date: 03/14/2013
• Status: Active Grant

• Current Assignee: Lookout Incorporated
• Original Assignee: Lookout Incorporated
• Inventors: Mahaffey, Kevin Patrick, Buck, Brian James
• Primary Examiner(s): Zeender, Ryan
• Assistant Examiner(s): Haider, Fawaad
• Application Number:
  US13/829,132
• Publication Number:
  US 20140279111A1
• Time in Patent Office: 1,748 Days
• Field of Search: 705 21
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network 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 20/322 Aspects of commerce using mobile devices [M-devices]
• CPC Class Codes: G06Q 20/3224 Transactions dependent on location of M-devices
• CPC Class Codes: G06Q 20/3278 RFID or NFC payments by means of 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
• CPC Class Codes: H04L 67/01 Protocols
• CPC Class Codes: H04L 67/02 based on web technology, e.g. hypertext transfer protocol [HTTP]
• CPC Class Codes: H04L 67/10 in which an application is distributed across nodes in the network software deployment G06F8/60; multiprogramming arrangements G06F9/46
• CPC Class Codes: H04L 67/1097 for distributed storage of data in networks, e.g. transport arrangements for network file system [NFS], storage area networks [SAN] or network attached storage [NAS]
• CPC Class Codes: H04L 67/51 Discovery or management thereof, e.g. service location protocol [SLP] or web services

Abstract

A method for authorizing a mobile payment transaction is provided. The method includes receiving, by a server, a request to authorize a payment transaction which originates from a point of sale (POS) module. In an embodiment, the request includes payment information of the payment transaction and location information of the POS module. When the request is received, an authorizing client device for the payment transaction is identified based on the payment information and a disposition of the request to authorize the payment transaction is determined based on whether the authorizing client device is located within a predetermined proximity to the POS module.

Claims

1. A method for processing a payment transaction, the method comprising:

receiving, by a server, a request to proceed with the processing of a payment transaction, the request originating from a point of sale (POS) device, the request including;

(i) information identifying the POS device and (ii) payment information for the payment transaction, the payment information including an identification of a user and the payment information being presented to the POS device by a payment facilitating device;

identifying, by the server, a network-enabled authorizing client device for the payment transaction based on the received payment information, the authorizing client device being associated with the user in a prior registration phase and being different from the payment facilitating device;

receiving, by the server, location information of the authorizing client device, the location information of the authorizing client device having been determined by the authorizing client device and including at least one of GPS geo-coordinates, information relating to a transmitting cell tower, information relating to a wireless access point, and information relating to a LAN;

determining, by the server, location information of the POS device based on the received request information identifying the POS device;

comparing, by the server, the received location information of the authorizing client device to the received location information of the POS device to determine a distance between the authorizing client device and the POS device; and

when a transaction amount for the payment transaction exceeds a threshold transaction amount;

(i) sending, by the server, a message to the authorizing client device for display to the user, the message including a request to verify the payment transaction; and

(ii) granting, by the server, the request to proceed with the processing of the payment transaction when;

(a) the distance between the authorizing client device and the POS device does not exceed a threshold distance and

(b) a verifying response to the request to verify the payment transaction is received by the server from the authorizing client device.

2. The method of claim 1 wherein the information identifying the POS device includes the POS device'"'"'s location information.

3. The method of claim 1 wherein the authorizing client device is a personal mobile device associated with the user.

4. The method of claim 3 wherein the personal mobile device is one of a smartphone, a tablet computer, and a handheld network enabled electronic device.

5. The method of claim 1 further including transmitting, by the server, a request to the authorizing client device over a network for the location information of the authorizing client device.

6. The method of claim 5 wherein the network is one of a BLUETOOTH network, a personal area network, a near field communication network, a LAN, and a WAN.

7. The method of claim 1 wherein when the authorizing client device is a mobile handheld device connected to a cellular network comprising a plurality of cell towers, and the location information of the authorizing client device is determined by the authorizing client device:

identifying a destination cell tower in proximity to the authorizing client device, and transmitting a location of the destination cell tower.

8. The method of claim 1 wherein the received location information of the authorizing client device corresponds to a first geo-location and the received location information of the POS device corresponds to a second geo-location.

9. The method of claim 1 wherein when a transaction amount for the payment transaction exceeds a threshold transaction amount, the method further comprises:

transmitting, by the server, an indication to the POS module directing the POS module to request additional authentication information.

10. The method of claim 1 further comprising:

providing, to the server, a plurality of payment rules;

determining, by the server, whether at least one of the plurality of payment rules is satisfied; and

the granting the request to proceed with the processing of the payment transaction step further requires;

at least one of the plurality of payment rules is satisfied.

11. The method of claim 10 wherein the plurality of payment rules is provided by a user associated with the authorizing client device.

12. The method of claim 10 wherein the plurality of payment rules is based on at least one of:

a location of the POS device, a temporal attribute of the payment transaction, an item and/or service type associated with the payment transaction, and a payment amount associated with at least a portion of the payment transaction.

13. The method of claim 1 wherein the request to proceed with the processing of the payment transaction is received by an anti-fraud service in the server via an internal link or via a network.

14. A system for processing a payment transaction, the system comprising:

a server coupled to at least one of a point of sale (POS) device, a payment processing module, and at least one-network-enabled client device;

a storage component coupled to the server, the storage component storing information relating to a user and to a network-enabled authorizing client device associated with the user; and

an anti-fraud service component hosted by the server and configured to;

receive a request to proceed with the processing of a payment transaction, the request originating from a point of sale (POS) device, the request including;

(i) information identifying the POS device and (ii) payment information for the payment transaction, the payment information including an identification of a user and the payment information being presented to the POS device by a payment facilitating device;

identify a network-enabled authorizing client device for the payment transaction based on the received payment information, the authorizing client device being associated with the user in a prior registration phase and being different from the payment facilitating device;

receive location information of the authorizing client device, the location information of the authorizing client device having been determined by the authorizing client device and including at least one of GPS geo-coordinates, information relating to a transmitting cell tower, information relating to a wireless access point, and information relating to a LAN;

determine location information of the POS device based on the received request information identifying the POS device;

compare the received location information of the authorizing client device to the received location information of the POS device to determine a distance between the authorizing client device and the POS device; and

when a transaction amount for the payment transaction exceeds a threshold transaction amount;

(i) send a message to the authorizing client device for display to the user, the message including a request to verify the payment transaction; and

(ii) grant the request to proceed with the processing of the payment transaction when;

(a) the distance between the authorizing client device and the POS device does not exceed a threshold distance and

(b) a verifying response to the request to verify the payment transaction is received by the server from the authorizing client device.

15. The system of claim 14 wherein the request to proceed with the processing of the payment transaction is received from the POS device or the payment processing module.

16. The system of claim 14 wherein the storage component stores a plurality of payment rules provided by the user and wherein the anti-fraud service component is configured to determine whether at least one of the plurality of payment rules is satisfied and configured to grant the request to proceed with the processing of the payment transaction when:

(i) the distance between the authorizing client device and the POS device does not exceed a threshold distance, (ii) a verifying response to the request to verify the payment transaction is received by the server from the authorizing client device, and (iii) at least one of the plurality of payment rules is satisfied.

17. A method for processing a payment transaction, the method comprising:

receiving, by a server, a request to proceed with the processing of a payment transaction, the request originating from a point of sale (POS) device, the request including;

(i) payment information of the payment transaction, the payment information including an identification of a user and the payment information being presented to the POS device by a payment facilitating device; and

(ii) location information of the POS device;

identifying, by the server, a network-enabled authorizing client device for the payment transaction based on the received payment information, the authorizing client device being associated with the user in a prior registration phase and being different from the payment facilitating device;

transmitting, by the server, the location information of the POS device to the authorizing client device;

requesting, by the server, the authorizing client device to compare the transmitted location information of the POS device to location information of the authorizing client device, the location information of the authorizing client device being determined by the authorizing client device and including at least one of GPS geo-coordinates, information relating to a transmitting cell tower, information relating to a wireless access point, and information relating to a LAN;

receiving, by the server, a result of the requested comparison; and

when a transaction amount for the payment transaction exceeds a threshold transaction amount;

(i) sending, by the server, a message to the authorizing client device for display to the user, the message including a request to verify the payment transaction; and

(ii) granting, by the server, the request to proceed with the processing of the payment transaction when;

(a) the result of the requested comparison indicates that a distance between the authorizing client device and the POS device does not exceed a threshold distance and

(b) a verifying response to the request to verify the payment transaction is received by the server from the authorizing client device.