Transaction processing systems and methods

• US 7,331,518 B2
• Filed: 04/04/2006
• Issued: 02/19/2008
• Est. Priority Date: 04/04/2006
• Status: Active Grant

• Current Assignee: Gula Consulting Limited Liability Company (Intellectual Ventures LLC)
• Original Assignee: Factortrust Incorporated
• Inventors: Rable, Greg
• Primary Examiner(s): HESS, DANIEL A
• Application Number:
  US11/278,612
• Publication Number:
  US 20070228148A1
• Time in Patent Office: 686 Days
• Field of Search: 235/380, 705/39, 705/40, 705/44, 705/35, 705/36, 705/37, 705/38, 705/41, 705/42, 705/43, 705/45, 455/558
• US Class Current: 235/380
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• 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 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

A transaction processing system according to various embodiments of the invention is adapted for: (1) associating a particular account (e.g., a credit card account) with a particular phone number; (2) at least partially in response to receiving a request to approve a transaction associated with the account, automatically transmitting a message (e.g., a text message) to the account holder via the phone number, requesting that the account holder confirm that the transaction is valid; and (3) using a response to the message to determine whether to approve or deny the transaction. In various embodiments, the request confirmation message requests that that the user answer a particular question (e.g., regarding out-of-wallet data), and the system is adapted to determine whether to approve or deny the transaction based on whether the response included a correct answer to the question.

Claims

1. A transaction processing system comprising:

a computer processor; and

memory for storing computer-readable instructions to be executed by said computer processor, wherein;

said transaction processing system is adapted for;

transmitting a transaction confirmation message to an electronic device to confirm a particular transaction;

receiving a response to said transaction confirmation message from said electronic device;

assigning a transaction risk rating to said particular transaction based, at least in part, on at least one factor selected from a group consisting of;

(A) a geographical location associated with said electronic device; and

(B) said response to said transaction confirmation message; and

using said transaction risk rating to determine an amount to charge for processing said particular transaction.

2. The transaction processing system of claim 1, wherein said step of using said transaction risk rating to determine an amount to charge for processing said particular transaction comprises:

in response to determining that said particular transaction has been assigned a first transaction risk rating, determining to charge a first particular amount for processing said particular transaction; and

in response to determining that said particular transaction has been assigned a second transaction risk rating, determining to charge a second particular amount for processing said particular transaction.

3. The transaction processing system of claim 1, wherein said transaction processing system is adapted for assigning a transaction risk rating to said particular transaction based, at least in part, on said geographical location associated with said electronic device.

4. The transaction processing system of claim 1, wherein said transaction processing system is adapted for assigning a transaction risk rating to said particular transaction based, at least in part, on said response to said transaction confirmation message.

5. A transaction processing system comprising:

a computer processor; and

memory for storing computer-readable instructions to be executed by said computer processor, wherein;

said transaction processing system is adapted for;

transmitting a transaction confirmation message to an electronic device to confirm a particular transaction;

receiving a response to said transaction confirmation message from said electronic device;

assigning a transaction risk rating to said particular transaction based, at least in part, on at least one factor selected from a group consisting of;

(A) a geographical location associated with said electronic device; and

(B) said response to said transaction confirmation message; and

transmitting said transaction risk rating to a payment processing system that is adapted for using said transaction risk rating to determine an amount to charge for processing said particular transaction.

6. The transaction processing system of claim 5, wherein:

said electronic device is associated with a particular account holder;

said transaction processing system is further adapted for;

receiving transaction information related to said particular transaction, said particular transaction being associated with a particular account of said particular account holder;

receiving, from a third party, account holder information related to said account holder;

at least partially in response to receiving said transaction information, transmitting a message to said electronic device associated with said account holder, said message requesting a response indicating knowledge of said account holder information;

after said step of transmitting a message to an electronic device associated with said account holder, receiving said response to said transaction confirmation message from said electronic device;

determining whether said response to said transaction confirmation message indicates knowledge of said account holder information;

at least partially in response to determining that said response to said transaction confirmation message indicates knowledge of said account holder information, communicating that said transaction should be approved; and

at least partially in response to determining that said response to said transaction continuation message indicates a lack of knowledge of said account holder information, communicating that said transaction should be denied.

7. The transaction processing system of claim 6, wherein:

said step of receiving transaction information comprises receiving said transaction information from a merchant server, said merchant server being associated with a merchant participating in said transaction; and

said step of communicating that said transaction should be approved comprises communicating, to said merchant server, that said transaction should be approved.

8. The transaction processing system of claim 7, wherein:

said step of communicating that said transaction should be denied comprises communicating, to said merchant server, that said transaction should be denied.

9. The transaction processing system of claim 6, wherein said step of communicating that said transaction should be approved comprises transmitting an indication to a server that said transaction should be approved, said server being remote from said transaction processing system.

10. The transaction processing system of claim 6, wherein said step of communicating that said transaction should be denied comprises transmitting an indication to a server that said transaction should be denied, said server being remote from said transaction processing system.

11. The transaction processing system of claim 6, wherein:

said particular transaction is a credit card transaction; and

said particular account is a credit card account.

12. The transaction processing system of claim 6, wherein said third party is a third party customer data provider.

13. The transaction processing system of claim 12, wherein said third party is a credit reporting agency.

14. The transaction processing system of claim 6, wherein said message is an SMS message.

15. The transaction processing system of claim 6, wherein said message is an e-mail.

16. The transaction processing system of claim 6, wherein said account holder information is out-of-wallet data.

17. The transaction processing system of claim 16, wherein said third party is a credit reporting agency.

18. The transaction processing system of claim 16, wherein:

said message comprises a question regarding said out-of-wallet data; and

said response indicating knowledge of said account holder information is a correct answer to said question.

19. The transaction processing system of claim 16, wherein:

said message is effective to ask that a particular piece of out-of-wallet information be provided; and

said response indicating knowledge of said account holder information comprises said particular piece of out-of-wallet information.

20. The transaction processing system of claim 6, wherein said electronic device is a cell phone.

21. The transaction processing system of claim 5, wherein said transaction processing system is further adapted for:

at least partially in response to determining that said response to said transaction confirmation message from said electronic device indicates knowledge of said account holder information, approving said transaction.

22. The transaction processing system of claim 5, wherein said transaction processing system is further adapted for:

at least partially in response to determining that said response to said transaction confirmation message indicates knowledge of said account holder information, denying said transaction.

23. The transaction processing system of claim 5, wherein:

said electronic device is associated with a designated transaction approver;

said transaction processing system is further adapted for, prior to said step of transmitting said transaction confirmation message, receiving transaction information related to said particular transaction, said particular transaction being associated with a particular account of a particular account holder;

said step of transmitting said transaction confirmation message to said electronic device is done at least partially in response to receiving said transaction information;

said step of receiving said response to said transaction confirmation message is done after said step of transmitting said transaction confirmation message to said electronic device;

said transaction processing system is further adapted for;

(A) in response to said response from said electronic device associated with said designated transaction approver indicating that said transaction should be approved, approving said transaction; and

(B) in response to said response from said electronic device associated with said designated transaction approver indicating that said transaction should be denied, denying said transaction; and

said designated transaction approver is someone other than said account holder.

24. The transaction processing system of claim 23, wherein said message comprises a monetary amount associated with said transaction.

25. The transaction processing system of claim 23, wherein:

said transaction is a purchase of an item from a retailer; and

said message comprises the name of said retailer.

26. The transaction processing system of claim 23, wherein:

said transaction is a purchase of an item from a retailer; and

said message comprises a description of said item.

27. The transaction processing system of claim 23, wherein said transaction approver is a parent of said account holder.

28. The transaction processing system of claim 5, wherein:

said transaction processing computer system is further adapted for;

receiving an order from a customer, said order being made in conjunction with said particular transaction;

receiving an indication that said customer wishes to pay for said order using a particular account;

determining whether said particular account has been enrolled in a particular order confirmation plan, wherein said steps of receiving an order, receiving an indication, and determining whether said account has been enrolled in said order confirmation plan occur prior to said step of transmitting said transaction confirmation message;

receiving said response to said transaction confirmation message from said electronic device after said step of transmitting said transaction confirmation message;

at least partially in response to determining that said particular account has been enrolled in said particular order confirmation plan;

(a) identifying a phone number that has been associated with said particular account;

(b) automatically transmitting said transaction confirmation message to said account holder, via said phone number, said transaction confirmation message requesting that said account holder confirm said order;

(c) using said response to said transaction confirmation message to determine whether to approve or deny payment for said order;

(d) in response to determining to approve payment for said order, approving payment for said order; and

(e) in response to determining to deny payment for said order, denying payment for said order; and

at least partially in response to determining that said particular account has not been enrolled in said particular order confirmation plan, approving payment for said order without requesting that said account holder confirm said order.

29. The transaction processing system of claim 28, wherein said step of identifying a phone number that has been associated with said particular account comprises identifying a phone number that has been associated with said particular account in conjunction with said order confirmation plan.

30. The transaction processing system of claim 29, wherein:

said step of determining whether said particular account has been enrolled in a particular order confirmation plan comprises receiving information from an order confirmation plan server indicating whether said particular account has been enrolled in said particular order confirmation plan; and

said order confirmation plan server is remote from said transaction processing system.

31. The transaction processing system of claim 28, wherein said message is an SMS message.

32. The transaction processing system of claim 5, wherein:

said transaction confirmation message comprises a question regarding out-of-wallet data; and

said response to said transaction confirmation message comprises an answer to said question.

33. The transaction processing system of claim 5, wherein said payment processing system is further adapted for:

determining to charge a first particular amount for processing said particular transaction in response to determining that said particular transaction has been assigned a first transaction risk rating; and

determining to charge a second particular amount for processing said particular transaction in response to determining that said particular transaction has been assigned a second transaction risk rating.

34. The transaction processing system of claim 5, wherein said transaction processing system is adapted for assigning a transaction risk rating to said particular transaction based, at least in part, on said geographical location associated with said electronic device.

35. The transaction processing system of claim 5, wherein said transaction processing system is adapted for assigning a transaction risk rating to said particular transaction based, at least in part, on said response to said transaction confirmation message.