Systems and Methods for Allocating a Payment Authorization Request to a Payment Processor

• US 20090157518A1
• Filed: 01/13/2009
• Published: 06/18/2009
• Est. Priority Date: 11/05/1999
• Status: Active Grant

• Current Assignee: Liberty Peak Ventures, LLC (Dominion Harbor Enterprises, LLC)
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Saunders, Peter D., Bishop, Fred A.
• Granted Patent: US 8,875,990 B2
• Time in Patent Office: Days
• US Class Current: 705/19
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/14 specially adapted for billing systems
• 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 20/207 Tax processing
• CPC Class Codes: G06Q 20/2295 Parent-child type, e.g. where parent has control on child rights
• CPC Class Codes: G06Q 20/385 using an alias or single-use codes
• 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 20/403 Solvency checks
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions

Abstract

A point of sale (POS) device may be configured to locate a payment system and transmit a payment authorization request from a remote location to a payment system, either directly, or via a payment system directory and/or a SSL Gateway. The invention also includes inserting third party account information into an encrypted portion of the payment request, so the payment request appears as a normal request to the issuing bank, but the third party account information may be used by the third party to bill the customer. The payment system directory is further configured to determine one or more payment processors to direct a payment authorization request, such that a single transaction may me allocated among multiple payment processors for authorization. Moreover, the payment system directory is able to format alternative payment methods into a format that is able to be processed over existing payment networks.

Claims

1. A computer-implemented method to facilitate a transaction at a point of sale (POS) device, comprising the steps of:

receiving an account identifier;

acquiring an allocation rule associated with said account identifier;

querying a payment system directory to locate a candidate payment system in accordance with said allocation rule for processing at least a first portion of said transaction, wherein said candidate payment system receives payment information related to said transaction at said POS device;

transmitting a payment authorization request related to said transaction from said POS device to said candidate payment system; and

,

receiving payment authorization from said candidate payment system.

2. The computer-implemented method of claim 1, further comprising receiving said payment information from a second POS device and querying said payment system directory to locate said candidate payment system for said transaction conducted at said second POS device.

3. The computer-implemented method of claim 1, further comprising receiving a tax rate relating to said transaction which was imposed by a taxing authority based on said payment information.

4. The computer-implemented method of claim 1, wherein at least one of said POS, said payment processor and said candidate payment system determines a taxing authority capable of imposing a tax on said purchase, from a plurality of tax authorities stored within said tax information system, by evaluating said purchase information.

5. The computer-implemented method of claim 1, wherein at least one of said POS, said payment processor and said candidate payment system request a tax rate.

6. The computer-implemented method of claim 1, wherein said candidate payment system transmits said payment information to a third party biller, and said third party biller bills a consumer for said transaction.

7. The computer-implemented method of claim 1, wherein a proxy account number is associated with more than one transaction account, and wherein said proxy account number is authorized to be used for multiple transactions.

8. The computer-implemented method of claim 1, further comprising:

allocating, based upon said allocation rule, a second payment authorization request to a second payment processor having a second account identifier, wherein a second account issuer issued said second account, wherein said second account issuer is different from said first account issuer and said second account issuer.

9. The computer-implemented method of claim 1, wherein said acquiring said allocation rule comprises acquiring said allocation rule from at least one of:

a consumer associated with said first account, a manager associated with said consumer, or a guardian associated with said consumer.

10. The computer-implemented method of claim 1, wherein said allocation rule is based upon at least one of:

an amount of said transaction, consumer goals, demographic data, location information, loyalty point information, historical transactions, frequency of transactions, time period of said transaction, past behavior of consumer, past behavior of merchant, payment system, consumer transaction fees, late fees, interest rates, merchant transaction fees, exchange rates, account fees, vendor information, company guidelines, biometric information, authorization levels, foreign exchange rate and foreign exchange service charge, consumer information, merchant information, issuer information, payment processor information, record of charge, summary of charges, consumer confirmation, employer confirmation, lack of confirmation, type of account or financial instrument.

11. The computer-implemented method of claim 1, wherein said account identifier is associated with at least one of:

a transaction account, an escrow account, a digital cash account, a demand deposit account, a credit line, checking account, savings account, a gift card account, a pre-paid account, a credit union account, a bank account, an investment account, a money market account, a corporate account, personal account, a loyalty account, gift card account, procurement account, fuel account, shared account, a third party billing account, a revolving credit card account or a charge card account.

12. The computer-implemented method of claim 1, wherein said allocation rule is at least one of:

stored on said transaction device, stored on a personal digital assistant, acquired from an employer, acquired from a third party, generated at a POS, associated with said first account, or stored in a merchant database.

13. The computer-implemented method of claim 1, wherein said allocation rule is at least one of:

a pre-defined rule, a dynamic rule, entered via a webpage, or entered via a personal digital assistant, and wherein said allocation rule at least one of;

initiates a notification, or requests a confirmation.

14. The computer-implemented method of claim 1, wherein an amount of said transaction comprises at least one of:

a monetary amount, a non-monetary amount, loyalty points, or monetary equivalent value.

15. The computer-implemented method of claim 1, wherein said first account issuer comprises at least one of:

a transaction account issuer, charge card issuer, credit card issuer, debit card issuer, gift card issuer, bank, lender, credit union, or a third party issuer under contract with said first financial account issuer.

16. The computer-implemented method of claim 1, wherein said account identifier is associated with a third party billing account and said account identifier is at least one of:

encoded on a payment instrument or stored at an issuer of said third party billing account.

17. The computer-implemented method of claim 1, wherein said account identifier is associated with a third party billing account, and further comprising routing a payment to an issuer of said account identifier based upon a payment system protocol, wherein said issuer routes billing information to said third party billing account for at least one of authorization or billing, outside of an established payment networks.

18. The computer-implemented method of claim 1, further comprising receiving said allocation rule based on an input received from an interface at said payment device.

19. The computer-implemented method of claim 1, wherein said candidate payment system is selected based on at least one of:

a refusal or an inability to process said payment authorization request by a primary candidate payment system.

20. A machine-readable medium having stored thereon a plurality of instructions, said plurality of instructions comprising:

instructions to receive an account identifier;

instructions to acquire an allocation rule associated with said account identifier;

instructions to query a payment system directory to locate a candidate payment system in accordance with said allocation rule for processing at least a first portion of said transaction, wherein said candidate payment system receives payment information related to said transaction at said POS device;

instructions to transmit a payment authorization request related to said transaction from said POS device to said candidate payment system; and

,

instructions to receive payment authorization from said candidate payment system.