Apparatus and method for dynamic offline balance management for preauthorized smart cards

• US 9,911,154 B2
• Filed: 07/08/2010
• Issued: 03/06/2018
• Est. Priority Date: 07/08/2010
• Status: Active Grant

• Current Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Original Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Inventors: Baker, Aaron, Tanner, Colin
• Primary Examiner(s): Tran, Hai
• Application Number:
  US12/832,288
• Publication Number:
  US 20120011062A1
• Time in Patent Office: 2,798 Days
• Field of Search: 705 35- 45
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/36 using electronic wallets or electronic money safes
• CPC Class Codes: G06Q 20/367 involving electronic purses or money safes
• CPC Class Codes: G06Q 20/3676 Balancing accounts
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G07F 7/127 in which both online and offline card verification can take place

Abstract

A smart payment device is issued to a user; the device is capable of both offline and online transactions and has a total available balance split. The split is between an available offline balance and an available online balance. It is determined whether the user has entered a primarily offline environment or will imminently enter a primarily offline environment. If this is so, the total available balance split is redistributed to favor offline transactions.

Claims

1. A method comprising the steps of:

issuing a smart payment device to a user, said smart payment device configured for an offline transaction and an online transaction, said smart payment device having a total available balance, said total available balance being split between an available offline balance and an available online balance, said smart payment device comprising a memory storing said available offline balance;

receiving, by an issuer server comprising a processor, an indication from at least one of said smart payment device and a merchant that said user has entered a primarily offline environment or said user will imminently enter said primarily offline environment, wherein said indication is based on a geographic location sensed by said smart payment device; and

redistributing, by said issuer server, said total available balance to increase said available offline balance in response to said determining that said user has entered said primarily offline environment or said user will imminently enter said primarily offline environment,

wherein said redistribution comprises a communication to said smart payment device causing said smart payment device to transition to a predominately offline mode and increase said available offline balance stored in said memory and to enable one or more offline transactions using said smart payment device having said available offline balance,

wherein subsequent to said redistributing of said total available balance to increase said available offline balance;

determining that said user has departed said primarily offline environment or said user will imminently depart said primarily offline environment; and

redistributing said total available balance to increase said available online balance in response to said determining that said user has departed said primarily offline environment or said user will imminently depart said primarily offline environment.

2. The method of claim 1, wherein said online transaction comprises a contact transaction, and wherein said online transaction comprises resetting said available offline balance to a predetermined fixed value.

3. The method of claim 1, wherein said online transaction comprises a contactless transaction.

4. The method of claim 1, further comprising periodically advising said user of a technique to be used for splitting said total available balance between said available offline balance and said available online balance.

5. The method of claim 1, further comprising periodically modifying a technique to be used for splitting said total available balance between said available offline balance and said available online balance, based on at least one of historical usage of said smart payment device by said user, and demographics of said user.

6. The method of claim 1, wherein said receiving comprises receiving an authorization request from said merchant in connection with a transaction using said smart payment device.

7. The method of claim 1, wherein said registration is transparent to said user.

8. The method of claim 1, wherein said smart payment device comprises a mobile device.

9. The method of claim 1, further comprising providing said issuer server is configured according to International Organization for Standardization 8583 standard for financial transaction card originated messages, wherein said issuer server is programmed to perform said issuing, said determining and said redistributing.

10. An apparatus comprising:

means for facilitating issuing a smart payment device to a user, said smart payment device configured for an offline transaction and an online transaction, said smart payment device having a total available balance, said total available balance being split between an available offline balance and an available online balance, said smart payment device comprising a memory storing said available offline balance;

means for receiving an indication from at least one of said smart payment device and a merchant that said user has entered a primarily offline environment or said user will imminently enter said primarily offline environment, wherein said indication is based on a geographic location sensed by said smart payment device; and

means for redistributing said total available balance to increase said available offline balance in response to said determining that said user has entered said primarily offline environment or said user will imminently enter said primarily offline environment,

wherein said means for redistribution comprises means for generating a communication to said smart payment device causing said smart payment device to transition to a predominately offline mode and increase said available offline balance stored in said memory and to enable one or more offline transactions using said smart payment device having said available offline balance,

wherein subsequent to a redistributing of said total available balance to increase said available offline balance, said means for redistributing said total available balance increasing said available online balance in response to a determination that said user has departed said primarily offline environment or said user will imminently depart said primarily offline environment;

wherein said apparatus excludes a transmission medium and disembodied signal.

11. An apparatus comprising:

a memory; and

at least one processor, coupled to said memory, said at least one processor being operative to;

facilitate issuing a smart payment device to a user, said smart payment device configured for an offline transaction and an online transaction, said smart payment device having a total available balance, said total available balance being split between an available offline balance and an available online balance, said smart payment device comprising a memory storing said available offline balance;

obtain an indication from at least one of said smart payment device and a merchant that said user has entered a primarily offline environment or said user will imminently enter said primarily offline environment, wherein said indication is based on a geographic location sensed by said smart payment device; and

redistribute said total available balance to increase said available offline balance in response to said indication that said user has entered said primarily offline environment or said user will imminently enter said primarily offline environment,

wherein said redistribution comprises a communication to said smart payment device causing said smart payment device to transition to a predominately offline mode and increase said available offline balance stored in said memory and to enable one or more offline transactions using said smart payment device having said available offline balance,

wherein said at least one processor is further operative, subsequent to said redistributing of said total available balance to increase said available offline balance, obtain a subsequent indication that said user has departed said primarily offline environment or said user will imminently depart said primarily offline environment, and redistribute said total available balance to increase said available online balance in response to said subsequent indication that said user has departed said primarily offline environment or said user will imminently depart said primarily offline environment.

12. The apparatus of claim 11, embodied as an issuer server configured according to International Organization for Standardization 8583 standard for financial transaction card originated messages, wherein said issuer server is programmed to perform said redistribution.

13. A system comprising:

an issuer server comprising a processor;

a smart payment device configured for an offline transaction and an online transaction, said smart payment device having a total available balance, said total available balance being split between an available offline balance and an available online balance, said smart payment device comprising a memory storing said available offline balance;

a plurality of merchant terminals; and

a payment processing network coupling said issuer server and said plurality of merchant terminals, said smart payment device being configured for communication with said plurality of merchant terminals;

wherein said issuer server is operative to;

obtain an indication from at least one of said smart payment device and a given one of said plurality of merchant terminals that said user has entered a primarily offline environment or said user will imminently enter said primarily offline environment, wherein said indication is based on a geographic location sensed by said smart payment device; and

redistribute said total available balance to increase said available offline balance in response to said indication that said user has entered said primarily offline environment or said user will imminently enter said primarily offline environment,

wherein said redistribution comprises a communication to said smart payment device causing said smart payment device to transition to a predominately offline mode and increase said available offline balance stored in said memory and to enable one or more offline transactions using said smart payment device having said available offline balance,

wherein said issuer server is further operative, subsequent to said redistributing of said total available balance to increase said available offline balance, to obtain an indication that said user has departed said primarily offline environment or said user will imminently depart said primarily offline environment and redistribute said total available balance to increase said available online balance in response to said indication that said user has departed said primarily offline environment or said user will imminently depart said primarily offline environment.

14. The system of claim 13, wherein said issuer server is configured according to International Organization for Standardization 8583 standard for financial transaction card originated messages, wherein said issuer server is programmed to perform said redistribution.