GPS database to manage risk for financial transactions

• US 7,743,981 B2
• Filed: 12/23/2003
• Issued: 06/29/2010
• Est. Priority Date: 12/23/2003
• Status: Active Grant

• Current Assignee: First Data Corporation (Fiserv Incorporated), Western Union
• Original Assignee: First Data Corporation (Fiserv Incorporated)
• Inventors: Williams, Charles
• Primary Examiner(s): Colbert; Ella
• Application Number:
  US10/746,858
• Publication Number:
  US 20050137975A1
• Time in Patent Office: 2,380 Days
• Field of Search: 705/35, 705/39, 705/42, 705/44, 705/16, 705/17, 235/379, 235/380, 235/382, 235/383, 455/406, 455/414, 455/558, 707/1, 707/100, 707/104.1
• US Class Current: 235/380
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

The present teachings describe a system for processing financial transactions. In one embodiment, the system includes a remote terminal adapted to identify the location of financial transactions via global positioning system (GPS) information such that the remote terminal acquires transaction information from a user and transmits a first signal indicative of transaction information and GPS information. In addition, the system includes an authorizing host adapted to receive the first signal transmitted by the remote terminal such that the authorizing host evaluates the risk associated with financial transactions based, at least in part, on the GPS information so as to determine whether to accept or decline the financial transaction. The present teachings further describe devices and methods of acquiring GPS information for the purpose of managing risk for financial transactions.

Claims

1. A method of assessing the risk of accepting a proffered payment, the method comprising:

receiving location information from a point of sale device, wherein the point of sale device is associated with a merchant and configured to accept payments from customers of the merchant, and wherein the received location information is indicative of the location of the point of sale device;

receiving financial information from the point of sale device indicative of the proffered payment; and

evaluating the risk of the merchant accepting the proffered payment based at least in part on comparing the received location information to a plurality of approved locations at which payments can be accepted by the point of sale device and further based at least in part on the received financial information.

2. The method of claim 1, wherein receiving location information comprises receiving Global Positioning System (GPS) coordinates indicative of the location of the point of sale device.

3. The method of claim 2, wherein evaluating the risk of accepting the proffered payment comprises:

determining whether the GPS coordinates correspond to a geographic region corresponding to a pre-approved area for accepting payments with the point of sale device, wherein the pre-approved area is one of the plurality of approved locations; and

calculating a risk score based upon one or more risk factors associated with the pre-approved geographic region when it is determined the point of sale device is in a pre-approved region.

4. The method of claim 3, further comprising calculating a risk score based upon one or more risk factors associated with a non-pre-approved region when it is determined that the point of sale device is not in a pre-approved region.

5. The method of claim 3, wherein determining whether the GPS coordinates correspond to a geographic region corresponding to a pre-approved area for the point of sale device comprises determining whether the GPS coordinates fall within a pre-approved postal zip code.

6. A system of assessing the risk of accepting a proffered payment, the system comprising:

a means for receiving financial information from a point of sale device associated with a merchant and configured to accept payments from customers of the merchant, the financial information being indicative of the proffered payment;

a means for receiving, from the point of sale device with the financial information, location information indicative of the location of the point of sale device when the financial information is obtained by the point of sale device; and

a means for evaluating the risk of the merchant accepting the proffered payment based at least in part on comparing the received location information to a plurality of approved locations at which payment will be accepted by the merchant utilizing the point of sale device and further based at least in part on the received financial information.

7. The system of claim 6, wherein the means for receiving location information comprises means for receiving Global Positioning System (GPS) coordinates indicative of the location of the point of sale device.

8. The system of claim 7, wherein the means for evaluating the risk of accepting the proffered payment comprises:

determining whether the GPS coordinates correspond to a geographic region corresponding to a pre-approved area for accepting payments with the point of sale device, wherein the pre-approved area is one of the plurality of approved locations; and

calculating a risk score based upon one or more risk factors associated with the pre-approved geographic region when it is determined the point of sale device is in a pre-approved region.

9. The system of claim 8, further comprising a means for calculating a risk score based upon one or more risk factors associated with a non-pre-approved region when it is determined that the point of sale device is not in a pre-approved region.

10. The system of claim 8, wherein determining whether the GPS coordinates correspond to a geographic region corresponding to a pre-approved area for the point of sale device comprises determining whether the GPS coordinates fall within a pre-approved postal zip code.

11. The system of claim 6, wherein accepting a proffered payment comprises accepting a proffered promissory payment including a payment by check.