Transaction authorization and alert system

• US 5,708,422 A
• Filed: 05/31/1995
• Issued: 01/13/1998
• Est. Priority Date: 05/31/1995
• Status: Expired due to Term

• Current Assignee: AT&T Corporation (AT&T, Inc.)
• Original Assignee: AT&T, Inc.
• Inventors: Mirville, J. Robert, Sugla, Binay, Blonder, Greg E., Greenspan, Steven Lloyd
• Primary Examiner(s): ZIMMERMAN, BRIAN A
• Application Number:
  US08/455,939
• Time in Patent Office: 958 Days
• Field of Search: 379/91, 379/59, 379/144, 235/380, 340/825.31, 340/825.32, 340/825.34, 340/825.33, 340/825.35
• US Class Current: 340/5.41
• 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 20/4037 Remote solvency checks
• CPC Class Codes: G06Q 20/42 Confirmation, e.g. check or permission by the legal debtor of payment
• CPC Class Codes: G06Q 20/425 using two different networks, one for transaction and one for security confirmation
• CPC Class Codes: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02

Abstract

An automated method for alerting a customer that a transaction is being initiated and for authorizing the transaction based on a confirmation/approval by the customer thereto. In accordance with one illustrative embodiment, a request to authorize the transaction is received, wherein the request includes a customer identifier; a determination is made whether to authorize the transaction based on the customer identifier; if the determination is to authorize the transaction, that fact is communicated to the customer; a confirmation that the transaction should, in fact, be authorized is received back from the customer; and the transaction is authorized in response to the customer'"'"'s confirmation thereof. In accordance with another illustrative embodiment, a transaction initiated by an agent of the customer (i.e., the principal) is authorized by the principal when one or more threshold parameters that may be pre-defined by the principal are exceeded. A preferred method of alerting the customer and receiving a confirmation to authorize the transaction back from the customer is illustratively afforded by conventional two-way pagers.

Claims

1. An automated method for authorizing a transaction, said transaction based on a customer identifier associated with a customer, the method comprising the steps of:

receiving a request to authorize said transaction, said request including said customer identifier;

determining, in response to said request and based on said customer identifier, whether to authorize said transaction;

when said determining step determines that said transaction is to be authorized, communicating said determination to said customer;

after the step of communicating said determination, receiving a communication from said customer confirming that said customer consents to said transaction being authorized; and

authorizing said transaction in response to said communication received from said customer.

2. The method of claim 1 wherein said transaction comprises a sales transaction and wherein said customer identifier comprises a credit card number.

3. The method of claim 1 wherein said transaction comprises placing a telephone call and wherein said customer identifier comprises a telephone calling card number.

4. The method of claim 1 wherein said transaction comprises a banking transaction and wherein said customer identifier comprises a bank card number.

5. The method of claim 1 wherein said customer identifier comprises a Personal Identification Number.

6. The method of claim 1 wherein said step of communicating said determination to said customer comprises transmitting signals representative of said determination to a wireless telecommunications receiver.

7. The method of claim 6 wherein said wireless telecommunications receiver comprises a display and wherein said step of communicating said determination to said customer comprises communicating said customer identifier to said customer.

8. The method of claim 6 wherein said wireless telecommunications receiver comprises a display and wherein said step of communicating said determination to said customer comprises communicating an identity of said provider to said customer.

9. The method of claim 6 wherein said wireless telecommunications receiver comprises a pager.

10. The method of claim 6 wherein said wireless telecommunications receiver comprises a two-way pager and wherein said communication from said customer confirming that said customer consents to said transaction being authorized is transmitted by said customer with use of said two-way pager.

11. An automated method for authorizing a transaction, said transaction based on a customer identifier associated with a customer, the method comprising the steps of:

receiving a request to authorize said transaction, said request including said customer identifier;

determining, in response to said request and based on said customer identifier, whether to authorize said transaction;

when said determining step determines that said transaction is to be authorized, communicating said determination to said customer; and

determining whether a communication indicating that said transaction is not to be authorized is received within a given amount of time from said customer; and

authorizing said transaction if said communication from said customer is not received within said given amount of time.

12. The method of claim 11 wherein said transaction comprises a sales transaction and wherein said customer identifier comprises a credit card number.

13. The method of claim 11 wherein said transaction comprises placing a telephone call and wherein said customer identifier comprises a telephone calling card number.

14. The method of claim 11 wherein said transaction comprises a banking transaction and wherein said customer identifier comprises a bank card number.

15. The method of claim 11 wherein said customer identifier comprises a Personal Identification Number.

16. The method of claim 11 wherein said step of communicating said determination to said customer comprises transmitting signals representative of said determination to a wireless telecommunications receiver.

17. The method of claim 16 wherein said wireless telecommunications receiver comprises a display and wherein said step of communicating said determination to said customer comprises communicating said customer identifier to said customer.

18. The method of claim 16 wherein said wireless telecommunications receiver comprises a display and wherein said step of communicating said determination to said customer comprises communicating an identity of said provider to said customer.

19. The method of claim 16 wherein said wireless telecommunications receiver comprises a pager.

20. An automated method for authorizing a transaction, said transaction based on a customer identifier associated with a customer, the method comprising the steps of:

communicating to said customer a confirmation code for use in executing said transaction;

receiving a request to authorize said transaction, said request including said customer identifier and said confirmation code;

determining, in response to said request, based on said customer identifier, and based on whether said received confirmation code matches said confirmation code communicated to said customer, whether to authorize said transaction;

authorizing said transaction if said determining step determines that said transaction is to be authorized.

21. The method of claim 20 wherein said step of communicating to said customer said confirmation code comprises encoding said confirmation code to provide a secure communication thereof.

22. The method of claim 20 wherein said transaction comprises a sales transaction and wherein said customer identifier comprises a credit card number.

23. The method of claim 20 wherein said transaction comprises placing a telephone call and wherein said customer identifier comprises a telephone calling card number.

24. The method of claim 20 wherein said transaction comprises a banking transaction and wherein said customer identifier comprises a bank card number.

25. The method of claim 20 wherein said customer identifier comprises a Personal Identification Number.

26. The method of claim 20 wherein said step of communicating said confirmation code to said customer comprises transmitting a signal representative of said confirmation code to a wireless telecommunications receiver having a display.

27. The method of claim 26 wherein said wireless telecommunications receiver comprises a pager.

28. The method of claim 20 wherein said step of communicating to said customer a confirmation code for use in executing said transaction is performed in response to receiving a communication from said customer indicating that said customer desires to execute said transaction.

29. The method of claim 20 further comprising the step of communicating a second confirmation code to said customer after authorizing said transaction, said second confirmation code for use in executing a second transaction subsequent to said transaction and being different from said confirmation code.

30. An automated method for authorizing a transaction, said transaction based on a customer identifier associated with a customer, the method comprising the steps of:

receiving a request to authorize said transaction, said request including said customer identifier;

determining, in response to said request and based on said customer identifier, whether to authorize said transaction;

when said determining step determines that said transaction is to be authorized, communicating to said customer a confirmation code for use in completing execution of said transaction;

receiving a communication comprising said confirmation code; and

authorizing said transaction in response to said received confirmation code matching said confirmation code communicated to said customer.

31. The method of claim 30 wherein said step of communicating to said customer said confirmation code comprises encoding said confirmation code to provide a secure communication thereof.

32. The method of claim 30 wherein said transaction comprises a sales transaction and wherein said customer identifier comprises a credit card number.

33. The method of claim 30 wherein said transaction comprises placing a telephone call and wherein said customer identifier comprises a telephone calling card number.

34. The method of claim 30 wherein said transaction comprises a banking transaction and wherein said customer identifier comprises a bank card number.

35. The method of claim 30 wherein said customer identifier comprises a Personal Identification Number.

36. The method of claim 30 wherein said step of communicating said confirmation code to said customer comprises transmitting a signal representative of said confirmation code to a wireless telecommunications receiver.

37. The method of claim 36 wherein said wireless telecommunications receiver comprises a pager.

38. An automated system for use in authorizing a transaction, said transaction based on a customer identifier associated with a customer, the system comprising:

a receiver adapted to receive a request to authorize said transaction, said request including said customer identifier;

means for determining, in response to said request and based on said customer identifier, whether to authorize said transaction;

a transmitter adapted to communicate said determination to said customer when said means for determining determines that said transaction is to be authorized;

a receiver adapted to receive a communication from said customer confirming that said customer consents to said transaction being authorized; and

means for authorizing said transaction in response to said communication received from said customer.

39. An automated system for use in authorizing a transaction, said transaction based on a customer identifier associated with a customer, the system comprising:

a receiver adapted to receive a request to authorize said transaction, said request including said customer identifier;

means for determining, in response to said request and based on said customer identifier, whether to authorize said transaction;

a transmitter adapted to communicate said determination to said customer when said means for determining determines that said transaction is to be authorized;

a timer adapted to determine whether a communication indicating that said transaction is not to be authorized is received within a given amount of time from said customer; and

means for authorizing said transaction if said communication from said customer is not received within said given amount of time.

40. An automated system for use in authorizing a transaction, said transaction based on a customer identifier associated with a customer, the system comprising:

a receiver adapted to receive a communication from said customer indicating that said customer desires to execute said transaction;

a transmitter adapted to communicate to said customer a confirmation code for use in executing said transaction;

a receiver adapted to receive a request to authorize said transaction, said request including said customer identifier and said confirmation code;

means for determining, in response to said request, based on said customer identifier, and based on whether said received confirmation code matches said confirmation code communicated to said customer, whether to authorize said transaction; and

means for authorizing said transaction if said means for determining determines that said transaction is to be authorized.

41. An automated system for use in authorizing a transaction, said transaction based on a customer identifier associated with a customer, the system comprising:

a receiver adapted to receive a request to authorize said transaction, said request including said customer identifier;

means for determining, in response to said request and based on said customer identifier, whether to authorize said transaction;

a transmitter adapted to communicate to said customer a confirmation code for use in completing execution of said transaction when said means for determining determines that said transaction is to be authorized;

a receiver adapted to receive a communication comprising said confirmation code; and

means for authorizing said transaction in response to said received confirmation code matching said confirmation code communicated to said customer.

42. A method of processing a transaction, the method comprising the steps of:

receiving information associated with a transaction initiated by an agent of a principal;

retrieving a profile based on said information associated with said transaction;

comparing at least a portion of said information to data included in said profile; and

contemporaneous with said comparison, notifying said principal of said transaction.

43. The method of claim 42 wherein said notifying step further includes the step of transmitting a message to said principal to request approval for the transaction.

44. The method of claim 43 further comprising the steps of:

receiving an approval signal from said principal; and

in response to receiving said approval signal, authorizing said transaction.

45. The method of claim 44 wherein the approval signal from the principal is transmitted from a paging device which received the notification in response to the comparison.

46. The method of claim 43 further comprising the steps of:

receiving a disapproval signal from said principal; and

in response to receiving said disapproval signal, invalidating said transaction.

47. The method of claim 43 further comprising the step of invalidating said transaction when no signal is received from said principal in response to said request for approval message.

48. The method of claim 42 wherein said comparing step further includes the step of determining whether parameters included in said second subset of information exceed threshold values represented by said data included in said profile.

49. A system for processing a transaction, the system comprising:

a database which receives information associated with a transaction initiated by an agent of a principal and which stores a profile defined by said principal;

a processor which a) retrieves said profile from said database based on said information associated with said transaction, and b) compares at least a portion of said information to data included in said profile; and

a network over which a notification signal is transmitted to said principal contemporaneous with said comparison.

50. The system of claim 49 wherein said notification signal includes a message requesting approval of the transaction.

51. The system of claim 50 further comprising:

an end-user device from which an approval signal is transmitted by said principal to said database; and

means responsive to receiving said approval signal at said database, for authorizing said transaction.

52. The system of claim 51 further comprising a paging device which a) receives the notification signal in response to the comparison, and b) transmits the approval signal from the principal.

53. The system of claim 50 further comprising:

an end-user device from which a disapproval signal is transmitted by said principal to said database; and

means responsive to receiving said disapproval signal at said database, for invalidating said transaction.

54. The system of claim 50 further comprising means for invalidating said transaction when no signal is received from said principal in response to said request for approval message.

55. The system of claim 49 wherein said processor further includes means for determining whether parameters included in said second subset of information exceed threshold values represented by said data included in said profile.