INTERMEDIARY SERVICE AND METHOD FOR PROCESSING FINANCIAL TRANSACTION DATA WITH MOBILE DEVICE CONFIRMATION

• US 20100121767A1
• Filed: 09/10/2009
• Published: 05/13/2010
• Est. Priority Date: 11/08/2008
• Status: Active Grant

• Current Assignee: AuthWallet, LLC (Dynamic IP Deals, LLC (d/b/a DynaIP))
• Original Assignee: Fonwallet Transaction Solutions Incorporated
• Inventors: Kaplinsky, Mordechai E., Lewis, Christopher E., Coulter, Todd R.
• Granted Patent: US 8,099,368 B2
• Time in Patent Office: Days
• US Class Current: 705/67
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/202 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 20/204 comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit
• CPC Class Codes: G06Q 20/367 involving electronic purses or money safes
• CPC Class Codes: G06Q 20/3674 involving authentication
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• 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 20/401 Transaction verification
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

A transaction processing service operates as an intermediary between acquirers of financial transaction requests and issuing institutions that process the financial transaction requests. The intermediary service utilizes a customer'"'"'s mobile device as an out-of-band communication channel to notify a customer of a received financial transaction request. To send the notification, the intermediary service retrieves stored customer information, including an address of the customer'"'"'s mobile device and a list of payment instruments that can be used to pay for the transaction. Before continuing to process the received financial transaction request, the service may first require the customer to confirm the transaction via the mobile device. The intermediary service retrieves financial account information associated with the customer from issuing institutions, and, if the transaction is confirmed, provides the account information to acquirers in order to allow transactions to be processed.

Claims

1. A method for processing financial transaction data in a server including a processor and an associated storage area, the method comprising:

receiving from a requester an authorization request generated as a result of a transaction at a point of purchase, wherein the authorization request includes a purchaser identifier, a transaction amount, and information identifying the point of purchase;

authenticating the authorization request;

retrieving customer information associated with the purchaser identifier from the storage area, the customer information including data defining one or more payment instruments, a verification code, and an address associated with a mobile device of the customer;

generating a transaction indication message for transmittal to the mobile device of the customer, the transaction indication message including information about the transaction and specifying a response;

transmitting the transaction indication message to the mobile device using the mobile device address;

receiving a customer confirmation message from the mobile device in response to the transaction indication message;

obtaining customer account information from an issuing institution, wherein the customer account information includes information associated with a selected payment instrument from the one or more payment instruments associated with the customer; and

providing the customer account information to the requester in response to determining that the customer confirmation message indicates that the transaction is authorized by the customer.

2. The method of claim 1, wherein the requester is an acquirer.

3. The method of claim 1, wherein the requester is an issuing institution.

4. The method of claim 1, wherein the purchaser identifier comprises track 1 data associated with an identification card.

5. The method of claim 1, wherein the authorization request is encrypted such that the purchaser identifier is encrypted using a first encryption method and the information identifying the point of purchase is encrypted using a second encryption method.

6. The method of claim 1, further comprising validating the format of the authorization request.

7. The method of claim 1, wherein the information about the transaction is selected from the group consisting of the transaction amount and the point of purchase identifier.

8. The method of claim 1, wherein the required response is determined by the transaction amount.

9. The method of claim 1, wherein the required response is determined by the information identifying the point of purchase.

10. The method of claim 1, wherein the response requires a verification code, and wherein the customer confirmation message further includes a verification code received from the customer.

11. The method of claim 10, further comprising comparing the received verification code to the stored verification code to determine whether the transaction is authorized by the customer.

12. The method of claim 1, wherein the response requires the selection of a payment instrument from the one or more payment instruments associated with the customer, and wherein the customer confirmation message includes a selected payment instrument.

13. The method of claim 1, wherein the required response is a transaction approval or rejection, and wherein the customer confirmation message includes information indicating an approval or rejection by the customer.

14. The method of claim 1, wherein the payment instrument is selected from the one or more payment instruments associated with the customer according to a processing rule.

15. A system for processing financial transaction data, the system comprising:

a processor;

a storage component;

a requester communication module configured to receive an initial authorization request from a requester, wherein the initial authorization request includes a purchaser identifier and details of an associated purchase transaction;

an authentication module configured to process the authorization request from the requester to authenticate that the request was received from a trusted requester;

a customer management module configured to retrieve customer information from the storage component based on the purchaser identifier, wherein the customer information includes data identifying a mobile device of a corresponding customer;

a mobile device communication module configured to send a transaction notification to the identified mobile device and to receive a customer confirmation message in response to the transaction notification; and

an issuer communication module configured to communicate with an issuer to obtain account information for a financial account associated with the customer,

wherein the requester communication module is further configured to provide the obtained financial account information to the requester.

16. The system of claim 15, wherein the initial authorization request further includes transaction information and wherein the mobile device communication module is configured to send a first type of transaction notification in response to a first type of transaction information and a second type of transaction notification in response to a second type of transaction information.

17. The system of claim 15, wherein the initial authorization request further includes transaction information including a price and wherein the mobile device communication module is configured to send a first type of transaction notification if the price is greater than a specified threshold and a second type of transaction notification otherwise.

18. The system of claim 15, wherein the mobile device communication module is further configured to compare the received verification code to a stored verification code in the customer information and wherein the issuer communication module is further configured to selectively obtain the account information based on the comparison.

19. The system of claim 15, wherein the initial authorization request includes a first section encrypted using a first encryption method and a second section encrypted using a second encryption method.

20. The system of claim 15, wherein the customer information includes multiple payment instruments and wherein the confirmation message includes a selection of an individual payment instrument of the multiple payment instruments, and wherein the information request includes data indicating the selected individual payment instrument.

21. The system of claim 15, wherein the customer information includes multiple payment instruments and wherein the communication with the issuer includes data indicating a selected individual payment instrument.

22. The system of claim 21, wherein the individual payment instrument is selected based on the purchaser identifier or customer information.

23. A method for processing financial transaction data in a server including a processor and a memory, the method comprising:

by the processor, receiving an initial authorization request to receive credit for purposes of a transaction, wherein the initial authorization request includes transaction information and a customer identifier;

retrieving customer information from the memory based on the customer identifier, wherein the customer information includes customer device information specifying a contact address associated with a customer device;

sending a transaction notification to the contact address associated with the customer device, wherein the transaction notification includes data from the transaction information;

generating an information request to receive account information for a payment instrument based on the initial authorization request and on the customer information;

sending the information request to an issuer;

receiving account information from the issuer; and

providing the account information to a requester.

24. The method of claim 23, wherein sending a transaction notification comprises sending a first type of transaction notification in response to a first type of transaction information and sending a second type of transaction notification in response to a second type of transaction information.

25. The method of claim 23, wherein the transaction information includes a price and wherein sending a transaction notification comprises sending a first type of transaction notification if the price is greater than a specified threshold and sending a second type of transaction notification otherwise.

26. The method of claim 23, further comprising:

receiving a confirmation message from the customer device in response to the transaction notification,

wherein the information request is generated in response to receiving the confirmation message.

27. The method of claim 23, further comprising receiving a confirmation message from the customer device in response to the transaction notification, wherein the confirmation message includes an authorization code.

28. The method of claim 23, further comprising:

receiving a confirmation message from the customer device in response to the transaction notification, wherein the confirmation message includes a verification code; and

comparing the received verification code to a stored verification code in the customer information,

wherein the information request is generated based on the comparison.

29. The method of claim 23, wherein the customer identifier is an identification number received from a radio frequency identification (RFID) tag or a module in a mobile device supporting near field communications (NFC).

30. The method of claim 23, wherein the account information is encrypted such that the information can only be read by the requester.

31. The method of claim 23, wherein the initial authorization request includes a first section encrypted using a first encryption method and a second section encrypted using a second encryption method.

32. The method of claim 23, wherein the customer information includes multiple payment instruments and further comprising:

receiving a confirmation message from the customer device, wherein the confirmation message includes a selection of an individual payment instrument of the multiple payment instruments, and

wherein the information request includes data indicating the selected individual payment instrument.

33. The method of claim 23, wherein the initial authorization request includes a merchant identifier, wherein the customer information includes multiple payment instruments, and wherein generating the second authorization request further comprises:

selecting a payment instrument of the multiple payment instruments based on the merchant identifier, wherein the generated second authorization request includes the selected payment instrument.