Methods for risk management in payment-enabled mobile device

• US 9,947,006 B2
• Filed: 03/27/2014
• Issued: 04/17/2018
• Est. Priority Date: 11/06/2009
• Status: Active Grant

• Current Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Original Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Inventors: Mestr, Patrick, Radu, Cristian, Smets, Patrik, Phillips, Simon, Carter, Ronald D.
• Primary Examiner(s): ADE, OGER GARCIA
• Application Number:
  US14/227,433
• Publication Number:
  US 20140209672A1
• Time in Patent Office: 1,482 Days
• Field of Search: 705 17
• CPC Class Codes: G06Q 20/16 Payments settled via telecommunication systems
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• 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 20/28 Pre-payment schemes, e.g. "pay before"
• CPC Class Codes: G06Q 20/3278 RFID or NFC payments by means of M-devices
• CPC Class Codes: G06Q 20/3433 the counter having monetary units
• CPC Class Codes: G06Q 20/349 Rechargeable cards
• CPC Class Codes: G06Q 20/381 Currency conversion
• 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 20/4012 Verifying personal identification numbers [PIN]
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 20/409 Device specific authentication in transaction processing
• CPC Class Codes: G07F 7/1025 Identification of user by a PIN code

Abstract

A payment-enabled mobile device receives, during a first tap of the mobile device on a proximity reader component of a point of sale (POS) terminal, first transaction context data for a current transaction, and receives during a second tap of the mobile device on the proximity reader component, second transaction context data for the current transaction. When the mobile device determines that the second tap is for the same transaction as the first tap, and that one of a customer verification method (CVM) status or a user acknowledgment status flag has been set, then it transmits a payment card account number to the POS terminal to consummate the transaction.

Claims

1. A cardholder verification method pre-entry process, comprising:

receiving, by a transceiver operably connected to a payment circuit of a payment enabled mobile device, selection by a user of a pre-entry function;

prompting, by the payment circuit of the payment enabled mobile device, the user to perform a cardholder verification method (CVM);

receiving, by the payment circuit of the payment enabled mobile device, user input associated with the CVM;

verifying, by the payment circuit of the payment enabled mobile device, the CVM;

setting, by the payment circuit of the payment enabled mobile device, a CVM-verified status;

receiving, by the transceiver of the payment enabled mobile device when tapped on a proximity reader component of a point of sale (POS) terminal, transaction information associated with a purchase transaction;

determining, by the payment circuit of the payment enabled mobile device based on the transaction information, that the purchase transaction is a qualified transaction and that the CVM-verified status is set; and

transmitting, by the transceiver under control of the payment circuit of the payment enabled mobile device to the POS terminal, a payment card account number to consummate the purchase transaction.

2. The method of claim 1, further comprising, after receiving the transaction information:

determining, by the payment circuit of the payment enabled mobile device, that the purchase transaction is a qualified transaction and that the CVM-verified status is not set;

prompting, by the payment circuit of the payment enabled mobile device, the user to perform CVM;

receiving user input associated with the CVM;

verifying, by the payment circuit of the payment enabled mobile device, the CVM and setting the CVM-verified status;

receiving, by the transceiver of the payment enabled mobile device when tapped again on the proximity reader component, second transaction information associated with the purchase transaction;

determining, by the payment circuit of the payment enabled mobile device, that the second transaction information matches the transaction information; and

transmitting, by the transceiver under control of the payment circuit of the payment enabled mobile device to the POS terminal, a payment card account number to consummate the purchase transaction.

3. The method of claim 2, wherein the payment-enabled mobile device is programmed to decline the purchase transaction when the second transaction information does not match the transaction information.

4. The method of claim 1, further comprising, after receiving the transaction information:

determining, by the payment circuit of the payment enabled mobile device, that the CVM-verified status is not set; and

declining, by the payment circuit of the payment enabled mobile device, the purchase transaction.

5. The method of claim 1, further comprising, after receiving the transaction information:

determining, by the payment circuit of the payment enabled mobile device based on the transaction information, that the purchase transaction is not a qualified transaction;

clearing, by the payment circuit of the payment enabled mobile device, the CVM-verified status;

prompting, by the payment circuit of the payment enabled mobile device, the user to perform a CVM;

receiving user input associated with the CVM;

verifying, by the payment circuit of the payment enabled mobile device, the CVM and setting the CVM-verified status;

receiving, by the transceiver of the payment enabled mobile device when tapped again on the proximity reader component, second transaction information associated with the purchase transaction;

determining, by the payment circuit of the payment enabled mobile device, that the second transaction information matches the transaction information; and

transmitting, by the transceiver under control of the payment circuit of the payment enabled mobile device to the POS terminal, a payment card account number to consummate the purchase transaction.

6. The method of claim 5, wherein the payment-enabled mobile device is programmed to decline the purchase transaction when the second transaction information does not match the transaction information.

7. The method of claim 1, wherein the transaction information comprises transaction amount data and a currency indicator.

8. The method of claim 7, further comprising, prior to determining that the purchase transaction is a qualified transaction:

determining, by the payment circuit of the payment enabled mobile device based on the currency indicator, that the purchase transaction is not in the user'"'"'s home currency;

clearing the CVM-verified status;

prompting, by the payment circuit of the payment enabled mobile device, the user to perform a CVM;

verifying, by the payment circuit of the payment enabled mobile device, that the CVM is valid and setting the CVM-verified status; and

transmitting, by the transceiver of the payment enabled mobile device to the POS terminal, a payment card account number to consummate the purchase transaction.

9. The method of claim 7, further comprising, prior to determining that the purchase transaction is a qualified transaction:

determining, by the payment circuit of the payment enabled mobile device based on the currency indicator, that the purchase transaction is not in the user'"'"'s home currency;

clearing the CVM-verified status;

prompting, by the payment circuit of the payment enabled mobile device, the user to perform a CVM;

determining, by the payment circuit of the payment enabled mobile device, one of that user performance of the CVM is invalid or that the CVM was not performed within a predetermined period of time; and

declining, by the payment circuit of the payment enabled mobile device, the purchase transaction.

10. A payment-enabled mobile device, comprising:

a payment circuit;

an antenna operably connected to the payment circuit;

a transceiver coupled to the antenna and operably connected to the payment circuit and operable to exchange wireless signals via the antenna with a proximity reader component of a point of sale (POS) terminal; and

a secure memory operably connected to the payment circuit, the secure memory storing a payment application program operable to cause the payment circuit to;

receive selection by a user of a pre-entry function;

prompt the user to perform a cardholder verification method (CVM);

receive user input associated with the CVM;

verify the CVM;

set a CVM-verified status;

receive, when the transceiver is tapped on the proximity reader component of the POS terminal, transaction information associated with a purchase transaction;

determine, based on the transaction information, that the purchase transaction is a qualified transaction and that the CVM-verified status is set; and

transmit a payment card account number to the reader component of the POS terminal to consummate the purchase transaction.

11. The payment-enabled mobile device of claim 10, wherein the payment application program stored in the secure memory is further operable, after receiving the transaction information, to cause the payment circuit to:

determine that the purchase transaction is a qualified transaction and that the CVM-verified status is not set;

prompt the user to perform a CVM;

verify the received CVM and set the CVM-verified status;

receive, when the transceiver is tapped again on the proximity reader component, second transaction information associated with the purchase transaction;

determine that the second transaction information matches the transaction information; and

transmit a payment card account number to the POS terminal to consummate the purchase transaction.

12. The payment-enabled mobile device of claim 11, wherein the payment application program stored in the secure memory is further operable, after receiving the transaction information, to cause the payment circuit to decline the purchase transaction when the second transaction information does not match the transaction information.

13. The payment-enabled mobile device of claim 10, wherein the payment application program stored in the secure memory is further operable, after receiving the transaction information, to cause the payment circuit to:

determine that the CVM-verified status is not set; and

decline the purchase transaction.

14. The payment-enabled mobile device of claim 10, wherein the payment application program stored in the secure memory is further operable, after receiving the transaction information, to cause the payment circuit to:

determine, based on the transaction information, that the purchase transaction is not a qualified transaction;

clear the CVM verified status;

prompt the user perform a CVM;

verify the received CVM and set the CVM-verified status;

receive, when tapped again on the proximity reader component, second transaction information associated with the purchase transaction;

determine that the second transaction information matches the transaction information; and

transmit a payment card account number to the POS terminal to consummate the purchase transaction.

15. The payment-enabled mobile device of claim 14, wherein the payment application program stored in the secure memory is further operable to cause the payment circuit to decline the purchase transaction when the second transaction information does not match the transaction information.

16. The payment-enabled mobile device of claim 10, wherein the payment application program stored in the secure memory is further operable, prior to determining that the purchase transaction is a qualified transaction, to cause the payment circuit to:

determine that the purchase transaction is not in the user'"'"'s home currency;

clear the CVM-verified status;

prompt the user perform a CVM;

verify the received CVM;

set the CVM-verified status; and

transmit a payment card account number to the POS terminal to consummate the purchase transaction.

17. The payment-enabled mobile device of claim 10, wherein the payment application program stored in the secure memory is further operable, after receiving the transaction information, to cause the payment circuit to:

determine that the purchase transaction is not in the user'"'"'s home currency;

clear the CVM-verified status;

prompt the user perform a CVM;

determine one of that user performance of the CVM is invalid or that the CVM was not performed within a predetermined period of time; and

decline the purchase transaction.