Predicting approval of transactions

• US 9,911,110 B2
• Filed: 03/05/2013
• Issued: 03/06/2018
• Est. Priority Date: 03/05/2013
• Status: Expired due to Fees

• Current Assignee: Block, Inc. (f/k/a Square, Inc.)
• Original Assignee: Square Inc (Block, Inc. (f/k/a Square, Inc.))
• Inventors: Scott, J. Bryan, Bhorania, Jevin C., Mason, III, Raymond Knight, Poursartip, Ariana
• Primary Examiner(s): NGUYEN, TIEN C
• Application Number:
  US13/786,262
• Publication Number:
  US 20140258118A1
• Time in Patent Office: 1,827 Days
• Field of Search: 705 35, 705 40, 705 39, 705 26, 705 38, 705 41, 705 37, 705325, 705 67, 705 21, 705 75, 726 23, 726 25, 726 2, 455410, 455466, 4554041, 455407, 379189, 709217, 709219, 709223, 235780, 235379, 235492, 235383, 725135, 340 59
• CPC Class Codes: G06F 21/316 by observing the pattern of computer usage, e.g. typical user behaviour
• CPC Class Codes: G06F 21/552 involving long-term monitoring or reporting
• 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 20/325 using wireless networks
• CPC Class Codes: G06Q 20/353 Payments by cards read by M-devices
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G07F 7/0886 the card reader being portable for interacting with a POS or ECR in realizing a payment transaction
• CPC Class Codes: G07F 7/127 in which both online and offline card verification can take place

Abstract

Method, systems, and apparatus for processing a payment transaction includes determining that a network connection between a first destination in a payment system and a second destination in a payment system does not satisfy a latency threshold; receiving data indicating a payment transaction between a customer and a merchant; determining whether the payment transaction should be stored, where the determining is based on a risk algorithm model that considers risk factors associated with data regarding the payment transaction, risk factors associated with data regarding the customer, and risk factors associated with data regarding the merchant; if the payment transaction should be stored: storing the payment transaction for future processing; displaying an indication that the payment transaction has been successfully processed; if the payment transaction should not be stored: attempting to send a request for authorization for the payment transaction at a payment service system included in the payment system.

Claims

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

receiving, by one or more applications operating on a merchant point-of-sale (POS) terminal associated with a merchant, an indication to process a payment transaction between the merchant and a customer at the merchant POS terminal;

receiving, by the one or more applications operating on the merchant POS terminal and from a card reader, payment information for a payment card that is to be used to process the payment transaction between the merchant and the customer;

determining, at a first time, that a first network connection between the merchant POS terminal and a computing device of a payment service is offline;

subsequent to determining at the first time that the first network connection between the merchant POS terminal and the computing device of the payment service is offline;

performing, by the one or more applications operating on the merchant POS terminal, a risk analysis to determine a likelihood that the payment transaction will be approved at a second time when the first network connection is online, wherein the risk analysis is based at least in part on a risk algorithm model that considers one or more of;

(i) one or more risk factors associated with data regarding the payment transaction, (ii) one or more risk factors associated with data regarding the customer, or (iii) one or more risk factors associated with data regarding the merchant, and wherein the risk algorithm model determines a weight for individual ones of the one or more risk factors, weights the one or more risk factors, and calculates a sum of the one or more weighted risk factors;

when the sum of the one or more weighted risk factors is less than a threshold value displaying, on the merchant POS terminal, a rejection of the payment transaction such that the payment information is not saved for future processing;

when the sum of the one or more weighted risk factors is greater than the threshold value;

determining that the payment transaction will likely be approved at the second time when the first network connection of the merchant POS terminal is online;

storing, at the merchant POS terminal, the payment information for future processing of the payment transaction; and

displaying, on the merchant POS terminal, an indication that the merchant should provide an item or service to the customer for the payment transaction;

after storing the payment information, determining that the first network connection between the merchant POS terminal and the computing device of the payment service is online;

subsequent to determining that the first network connection of the merchant POS terminal is online, sending the payment information to the computing device of the payment service to process the payment transaction;

receiving, at the computing device of the payment service and from the merchant POS terminal, the payment information to process the payment transaction;

determining that a second network connection between the payment service and another computing device of a payment processing system is offline;

based at least in part on determining that the second network connection to the other computing device of the payment processing system is offline, storing the payment information at the computing device of the payment service for future processing of the payment transaction;

determining that the second network connection to the other computing device of the payment processing system is online; and

based at least in part on determining that the second network connection to the other computing device of the payment processing system is online, sending the payment information to the other computing device associated with the payment processing system for processing of the payment transaction.

2. The method of claim 1, further comprising:

determining the merchant POS terminal has one or more stored payment transactions; and

forwarding each of the stored payment transactions to the payment service.

3. The method of claim 1, further comprising:

calculating a wait time, where the wait time is within a range of an average round trip time for a successfully processed transaction; and

waiting the wait time before causing display of the indication.

4. The method of claim 1, wherein:

the data regarding the payment transaction include one or more of the following;

a value of the payment transaction, description of the payment transaction, itemization of the payment transaction, a type of transaction input, a signature, or an image of the payment transaction.

5. The method of claim 1, wherein:

the data regarding the customer include one or more of the following;

a number of already stored transactions, a total value, where the total value is a sum of the value of the payment transaction and values of one or more already stored transactions, prior transactions, a type of payment card, or customer account information, where the customer account information includes a name, contact information, or location of the customer.

6. The method of claim 1, wherein:

the data regarding the merchant includes one or more of the following;

a classification of the merchant, merchant transaction history, merchant account information, where the merchant account information includes age, name, or contact information of the merchant, merchant location, locations of transactions conducted with the merchant, operating system of merchant device, or a type of a financial account of the merchant.

7. The method of claim 1, wherein the payment information is encrypted using a key before the storing, where the key is obtained from the payment service.

8. The method of claim 1, wherein determining that the first network connection of the merchant POS terminal is online occurs after an interval of time.

9. The method of claim 1, wherein the first network connection is a cellular data connection to an Internet.

10. The method of claim 1, further comprising:

updating data associated with at least one of (i) the one or more risk factors associated with data regarding the payment transaction, (ii) the one or more risk factors associated with data regarding the customer, or (iii) the one or more risk factors associated with data regarding the merchant after determining that the network connection of the merchant POS terminal is online.

11. The method of claim 1, wherein:

data associated with at least one of (i) the one or more risk factors associated with data regarding the payment transaction, (ii) the one or more risk factors associated with data regarding the customer, or (iii) the one or more risk factors associated with data regarding the merchant is stored on the merchant POS terminal.

12. The method of claim 1, further comprising:

updating the risk algorithm model after determining that the first network connection of the merchant POS terminal is online.

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

one or more applications executing on a merchant point-of-sale (POS) device associated with a merchant;

a card reader;

a first processor; and

first computer-readable media coupled to the processor and having first instructions stored thereon, which, when executed by the processor, cause the processor to perform operations comprising;

receiving, by the one or more applications executing on the merchant POS device and via the card reader, payment information for a payment card that is to be used to process a payment transaction between the merchant and a customer;

determining, at a first time, that a first network connection to a network-based computing device in a payment system is offline;

subsequent to determining, at the first time, that the first network connection to the network-based computing device is offline;

performing a risk analysis to determine a likelihood that the payment transaction will be approved at a second time when the first network connection to the network-based computing device in the payment system is online, wherein the risk analysis is based at least in part on a risk algorithm model that considers one or more of;

(i) one or more risk factors associated with data regarding the payment transaction, (ii) one or more risk factors associated with data regarding the customer, or (iii) one or more risk factors associated with data regarding the merchant, and wherein the risk algorithm model determines a weight for individual ones of the one or more risk factors, weights the one or more risk factors, and calculates a sum of the one or more weighted risk factors;

when the sum of the one or more weighted risk factors is less than a threshold value, displaying, on the merchant POS device, a rejection of the payment transaction such that the payment information is not saved for future processing;

when the sum of the one or more weighted risk factors is greater than the threshold value;

determining that the payment transaction will likely be approved at the second time when the first network connection of the merchant POS device is online;

storing, by the one or more applications and at the merchant POS device, the payment information for future processing of the payment transaction; and

displaying, on the merchant POS device, an indication that the merchant should provide an item or service to the customer for the payment transaction;

after storing the payment information, determining that the first network connection to the network-based computing device in the payment system is online; and

subsequent to determining that the first network connection to the network-based computing device in the payment system is online, sending the payment information to the network-based computing device to process the payment transaction; and

the network-based computing device in the payment system comprising;

a second processor; and

second computer-readable media coupled to the second processor and having second instructions stored thereon, which, when executed by the second processor, cause the second processor to perform acts comprising;

receiving, from the merchant POS device, the payment information to process the payment transaction;

determining that a second network connection to a computing device of a payment processing system is offline;

based at least in part on determining that the second network connection to the computing device of the payment processing system is offline, storing the payment information for future processing of the payment transaction;

determining that the second network connection to the computing device of the payment processing system is online; and

based at least in part on determining that the second network connection to the computing device of the payment processing system is online,

sending the payment information to the computing device of the payment processing system for processing of the payment transaction.

14. The system of claim 13, wherein performing the risk analysis to determine the likelihood that the payment transaction will be approved at the second time, storing the payment information, and sending the payment information are performed on the merchant POS device.

15. The system of claim 14, wherein the operations further comprise:

determining the merchant POS device has one or more stored payment transactions; and

forwarding each of the stored payment transactions to the payment system.

16. The system of claim 13, wherein the acts further comprise performing another risk analysis to determine a likelihood that the payment transaction will be approved in the future.

17. The system of claim 16, wherein the operations further comprise:

determining the payment system has one or more stored payment transactions; and

forwarding each of the stored payment transactions to the payment processing system.

18. The system of claim 13, where the operations further comprise:

calculating a wait time, where the wait time is within a range of an average round trip time for a successfully processed transaction; and

waiting the wait time before causing display of the indication.

19. The system of claim 13, wherein the data regarding the payment transaction includes one or more of the following:

a value of the payment transaction, description of the payment transaction, itemization of the payment transaction, a type of transaction input, a signature, or an image of the payment transaction.

20. The system of claim 13, wherein the data regarding the customer includes one or more of the following:

a number of already stored transactions, a total value, where the total value is a sum of the value of the payment transaction and values of one or more already stored transactions, prior transactions, a type of payment card, or customer account information, where the customer account information includes a name, contact information, or location of the customer.

21. The system of claim 13, wherein the data regarding the merchant includes one or more of the following:

a classification of the merchant, merchant transaction history, merchant account information, where the merchant account information includes age, name, or contact information of the merchant, merchant location, locations of transactions conducted with the merchant, operating system of merchant device, or a type of a financial account of the merchant.

22. The system of claim 13, wherein the payment information is encrypted using a key before the storing, where the key is obtained from the payment system.

23. The system of claim 13, wherein determining that the first network connection to the network-based computing device in the payment system is online occurs after an interval of time.

24. The system of claim 13, wherein the first network connection is a cellular data connection to an Internet.

25. The system of claim 13,

wherein the operations further comprise:

updating data at the merchant POS device associated with at least one of (i) the one or more risk factors associated with data regarding the payment transaction, (ii) the one or more risk factors associated with data regarding the customer, or (iii) the one or more risk factors associated with data regarding the merchant after determining that the first network connection to the network-based computing device in the payment system is online.

26. The system of claim 13,

wherein data associated with at least one of (i) the one or more risk factors associated with data regarding the payment transaction, (ii) the one or more risk factors associated with data regarding the customer, or (iii) the one or more risk factors associated with data regarding the merchant is stored on the merchant POS device.

27. The system of claim 13, wherein the operations further comprise:

updating the risk algorithm model used to perform the risk analysis after determining that the first network connection to the network-based computing device in the payment system is online.

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

one or more applications executing on a merchant point-of-sale (POS) device associated with a merchant;

a card reader;

a first processor; and

first non-transitory computer-readable media having instructions stored thereon which, when executed by the first processor, cause the first processor to perform operations comprising;

receiving, by the one or more applications executing on the merchant POS device and via the card reader, payment information for a payment card that is to be used to process a payment transaction between a merchant and a customer;

determining, at a first time, that a first network connection between the merchant POS device and a computing device in a payment system is offline;

subsequent to determining, at the first time, that the first network connection to the computing device in the payment system is offline;

performing a risk analysis to determine a likelihood that the payment transaction will be approved at a second time when the first network connection to the computing device in the payment system is online, wherein the risk analysis is based at least in part on a risk algorithm model that considers one or more of;

(i) one or more risk factors associated with data regarding the payment transaction, (ii) one or more risk factors associated with data regarding the customer, or (iii) one or more risk factors associated with data regarding the merchant, and wherein the risk algorithm model determines a weight for individual ones of the one or more risk factors, weights the one or more risk factors, and calculates a sum of the one or more weighted risk factors;

when the sum of the one or more weighted risk factors is less than a threshold value, displaying, on the merchant POS device, a rejection of the payment transaction such that the payment information is not saved for future processing;

when the sum of the one or more weighted risk factors is greater than the threshold value;

determining that the payment transaction will likely be approved at the second time when the first network connection of the merchant POS device is online;

storing, at the merchant POS device, the payment information for future processing of the payment transaction; and

displaying, on the merchant POS device, an indication that the merchant should provide an item or service to the customer for the payment transaction;

after storing the payment information, determining that the first network connection to the computing device in the payment system is online; and

based at least in part on determining that the first network connection to the computing device in the payment system is online, sending the payment information, from the merchant POS device, to the payment system to process the payment transaction; and

the payment system, comprising;

a second processor; and

second non-transitory computer-readable media having instructions stored thereon, which, when executed by the second processor, cause the second processor to perform acts comprising;

receiving, from the merchant POS device, the payment information to process the payment transaction;

determining that a second network connection to another computing device of a payment processing system is offline;

based at least in part on determining that the second network connection to the other computing device of the payment processing system is offline, storing the payment information for future processing of the payment transaction;

determining that the second network connection to the other computing device of the payment processing system is online; and

based at least in part on determining that the second network connection to the other computing device of the payment processing system is online, sending the payment information to the other computing device of the payment processing system for processing of the payment transaction.

29. The system of claim 28, wherein the one or more applications executing on the merchant POS device perform the risk analysis to determine a likelihood that the payment transaction will be approved in the future, storing the payment information, and sending the payment information.

30. The system of claim 29, where the operations further comprise:

determining the merchant POS device has one or more stored payment transactions; and

forwarding each of the stored payment transactions to the payment system.

31. The system of claim 28, wherein the acts further comprise performing another risk analysis to determine a likelihood that the payment transaction will be approved in the future.

32. The system of claim 31, wherein the operations further comprise:

determining the payment system has one or more stored payment transactions; and

forwarding each of the stored payment transactions to the other computing device of the payment processing system.

33. The system of claim 28, where the operations further comprise:

calculating a wait time, where the wait time is within a range of an average round trip time for a successfully processed transaction; and

waiting the wait time before causing display of the indication.

34. The system of claim 28, wherein:

the one or more risk factors associated with the data regarding the payment transaction include one or more of the following;

a value of the payment transaction, description of the payment transaction, itemization of the payment transaction, a type of transaction input, a signature, or an image of the payment transaction.

35. The system of claim 28, wherein:

the one or more risk factors associated with the data regarding the customer includes one or more of the following;

a number of already stored transactions, a total value, where the total value is a sum of the value of the payment transaction and values of one or more already stored transactions, prior transactions, a type of payment card, or customer account information, wherein the customer account information includes a name, contact information, or location of the customer.

36. The system of claim 28, wherein:

the one or more risk factors associated with the data regarding the merchant includes one or more of the following;

a classification of the merchant, merchant transaction history, merchant account information, where the merchant account information includes age, name, or contact information of the merchant, merchant location, locations of transactions conducted with the merchant, operating system of merchant device, or a type of a financial account of the merchant.

37. The system of claim 28, wherein the payment information is encrypted using a key before the storing, where the key is obtained from the payment system.

38. The system of claim 28, wherein determining that the first network connection to the computing device in the payment system is online occurs after an interval of time.

39. The system of claim 28, wherein the first network connection is a cellular data connection to an Internet.

40. The system of claim 28, wherein

the operations further comprise:

updating data associated with at least one of (i) the one or more risk factors associated with data regarding the payment transaction, (ii) the one or more risk factors associated with data regarding the customer, or (iii) the one or more risk factors associated with data regarding the merchant after determining that the network connection to the computing device in the payment system is online.

41. The system of claim 28, wherein:

data associated with at least one of (i) the one or more risk factors associated with data regarding the payment transaction, (ii) the one or more risk factors associated with data regarding the customer, or (iii) the one or more risk factors associated with data regarding the merchant is stored on the merchant POS device.

42. The system of claim 28, wherein

the operations further comprise:

updating the risk algorithm model after determining that the first network connection to the computing device in the payment system is online.