System and method for facilitating a financial transaction with a dynamically generated identifier

• US 7,849,014 B2
• Filed: 08/29/2007
• Issued: 12/07/2010
• Est. Priority Date: 08/29/2007
• Status: Expired due to Fees

• Current Assignee: Liberty Peak Ventures, LLC (Dominion Harbor Enterprises, LLC)
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Erikson, Glade Raymond
• Primary Examiner(s): Merchant, Shahid R
• Application Number:
  US11/847,088
• Publication Number:
  US 20090063345A1
• Time in Patent Office: 1,196 Days
• Field of Search: 705/35, 705/38, 705/39, 705/40, 705/44
• US Class Current: 705/44
• 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 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• 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 20/40145 Biometric identity checks
• CPC Class Codes: G06Q 20/4037 Remote solvency checks
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

Instead of a PIN which is associated with an account and provides access to an account, a dynamically generated card identifier (dynamic CID) is used to verify that the consumer currently possesses the transaction card at the time of purchase and/or is the true card owner. At the time of purchase, a token generates a dynamic CID, which changes with each transaction. A consumer enters the dynamic CID into a pre-existing CID field in an electronic order form. The merchant then sends the dynamic CID to a card authorization system within an authorization request. The card authorization system issues a response to a merchant system via a pre-existing authorization message indicating that the transaction card and dynamic CID have been validated, thereby adjusting the fraud risk associated with the transaction.

Claims

1. A computer-implemented method for facilitating an authorization of a purchase transaction, said method comprising:

receiving a purchase request message, at a merchant computer system having a processor and non-transitory memory, for a purchase transaction, wherein said purchase request message includes a code as part of said purchase request message, and wherein said code is retrieved from a preexisting field of an electronic payment form from said merchant computer system, wherein said code is entered into a pre-existing card identifier (CID) field of said electronic payment form, and wherein said merchant computer system does not know a type of said code within said purchase request message;

transmitting, from said merchant computer system, at least a portion of said purchase request message to an authorization system in a pre-existing data message comprising said code, wherein said authorization system authenticates said code;

receiving, at said merchant computer system, a response from said authorization system in a pre-existing data message indicating that said code is a valid dynamically generated code comprising four digit batch code (4DBC) and confirms an allocation to an issuer of a fraud risk associated with said purchase transaction, wherein said response includes an authorization code related to said purchase transaction and indicative of said authorization being based on validation of said dynamically generated code; and

completing, by said merchant computer system, said purchase transaction.

2. The method of claim 1, wherein said pre-existing data message is at least one of:

a four digit card security code (4CSC), or a three digit card security code (3CSC).

3. The method of claim 1, wherein said code is generated by using a token.

4. The method of claim 1, wherein said code is generated using a token, wherein said token includes at least one of:

software, a USB device, fob, transaction card reader or pinpad.

5. The method of claim 1, wherein said code is generated based on interaction between at least one of a transaction card, biometric and a token.

6. The method of claim 4, wherein said code is automatically captured by a point of sale system.

7. The method of claim 6, wherein said code is created based on at least one of:

transaction account data, entered Personal Identification Number (PIN), private key, password, profile data, card reader data, and time.

8. A computer-implemented method for authorizing a dynamically generated code, said method comprising:

receiving, at a host computer having a processor and non-transitory memory, at least a portion of a purchase request message to authorize a purchase transaction from a merchant server, wherein said purchase request message includes a code, and wherein said code is in a pre-existing data message and retrieved from a preexisting field of an electronic payment form from said merchant server, wherein said code is entered into a pre-existing card identifier (CID) field of said electronic payment form, and wherein said merchant server does not know a type of said code within said purchase request message;

authorizing, at said host computer, said code as a valid dynamically generated code comprising a four digit batch code (4DBC);

adjusting, by said host computer, a fraud risk associated with said purchase transaction based upon said dynamically generated code; and

transmitting, by said host computer, said authorization of said dynamically generated code to said merchant server in a pre-existing data message, wherein said authorization includes an authorization code related to said purchase transaction and indicative of said dynamically generated code being valid, wherein said authorization code confirms allocation to an issuer of said fraud risk associated with said purchase transaction, and said authorization being based on validation of said dynamically generated code.

9. A computer-implemented method for conducting a purchase transaction, said method comprising:

generating, by a personal computing device having a processor and non-transitory memory, a code, wherein said code is entered into a pre-existing card identifier (CID) field of an electronic payment form; and

,

sending, by said personal computing device, a purchase request message in a pre-existing data message to a merchant computer system for a purchase transaction, wherein said purchase request message includes said code, and wherein said merchant computer system does not know a type of said code within said purchase request message, and wherein said merchant computer system transmits at least a portion of said purchase request message to an authorization system in a pre-existing data message and receives a response from said authorization system in a pre-existing data message indicating that said code is valid dynamically generated code comprising a four digit batch code (4DBC) before completing said purchase transaction, and wherein said response includes an authorization code related to said purchase transaction and said dynamically generated code being valid, wherein said authorization code confirms allocation to an issuer of a fraud risk associated with said purchase transaction, and indicative of said authorization being based on said dynamically generated code.

10. The method of claim 9, wherein said generating comprises generating said code via at least one of:

a hardware token and a software token.

11. An authorization system for processing a purchase transaction, said authorization system comprising:

a network interface communicating with a non-transitory memory comprising a database;

said memory communicating with a host computer;

said host computer, executing a plurality of computer programs, is configured to;

receive, at said host computer, at least a portion of a purchase request message to authorize a purchase transaction from a merchant server, wherein said purchase request message includes a code, and wherein said code is in a pre-existing data message and retrieved from a preexisting field of an electronic payment form from said merchant server, wherein said code is entered into a pre-existing card identifier (CID) field of said electronic payment form, and wherein said merchant server does not know a type of said code within said purchase request message;

authorize, at said host computer, said code as a valid dynamically generated code comprising a four digit batch code (4DBC);

adjust, by said host computer, a fraud risk associated with said purchase transaction based upon said dynamically generated code; and

transmit, by said host computer, said authorization of said dynamically generated code to said merchant server in a pre-existing data message, wherein said authorization includes an authorization code related to said purchase transaction and indicative of said dynamically generated code being valid, wherein said authorization code confirms allocation to an issuer of said fraud risk associated with said purchase transaction, and said authorization being based on validation of said dynamically generated code.

12. A non-transitory, tangible computer readable storage medium having computer readable instructions stored thereon that, if executed by a host computer, perform operations for authorizing a transaction, comprising:

receiving, at said host computer, at least a portion of a purchase request message to authorize a purchase transaction from a merchant server, wherein said purchase request message includes a code, and wherein said code is in a pre-existing data message and retrieved from a preexisting field of an electronic payment form from said merchant server, wherein said code is entered into a pre-existing card identifier (CID) field of said electronic payment form, and wherein said merchant server does not know a type of said code within said purchase request message;

authorizing, by said host computer, said code as a valid dynamically generated code comprising a four digit batch code (4DBC);

adjusting, by said host computer, a fraud risk associated with said purchase transaction based upon said dynamically generated code; and

transmitting, by said host computer, said authorization of said dynamically generated code to said merchant server in a pre-existing data message, wherein said authorization includes an authorization code related to said purchase transaction and indicative of said dynamically generated code being valid, wherein said authorization code confirms allocation to an issuer of said fraud risk associated with said purchase transaction, and said authorization being based on validation of said dynamically generated code.