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Methods and systems for mitigating fraud losses during a payment card transaction

  • US 9,858,571 B2
  • Filed: 01/02/2013
  • Issued: 01/02/2018
  • Est. Priority Date: 01/02/2013
  • Status: Active Grant
First Claim
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1. A computer-implemented method for mitigating fraud losses during a transaction initiated at an ATM that is located outside of a predefined geographic region associated with an issuer of a payment card used in the transaction, the method implemented using an authorization computer device coupled to the ATM over an interchange network, the method comprising:

  • receiving, from an ATM located outside of a predefined geographic region associated with an issuer of a payment card, over an interchange network, an authorization request message requesting authorization of a transaction conducted using the payment card, wherein the payment card includes (i) a first security device comprising an integrated-circuit chip configured to communicate with automated teller machines and operable for transactions initiated within the predefined geographic region and (ii) a second security device comprising a magnetically-encoded strip readable by automated teller machines and operable for transactions initiated both within the predefined geographic region and outside of the predefined geographic region, wherein the authorization request message includes at least a transaction bank identification number (BIN) and a transaction account number acquired from the second security device included on the payment card, wherein the transaction BIN is associated with the issuer, wherein the issuer is not a member of the interchange network, and wherein the authorization computer device does not have access, over the interchange network, to data maintained by the issuer;

    retrieving, from a database communicatively coupled to the authorization computer device, a plurality of ranges of BINs, wherein each of the plurality of ranges of BINs (i) corresponds to a plurality of payment cards previously-registered for transactions occurring outside of the predefined geographical region, and (ii) is associated with account service level data;

    determining that the transaction BIN is included in one of the retrieved plurality of ranges of BINs;

    determining whether the received transaction account number corresponds to one of the plurality of previously-registered payment cards that corresponds to the one of the plurality of ranges of BINs;

    in response to determining that the transaction account number does not correspond to one of the plurality of previously-registered payment cards, registering the payment card by storing the transaction account number and transaction BIN in the database;

    applying a set of transaction limit rules to the transaction based on the account service level data associated with the one of the retrieved plurality of ranges of BINs; and

    determining whether to approve the transaction based on the application of the set of transaction limit rules.

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