Device with GPS to manage risk for financial transactions

• US 7,945,494 B2
• Filed: 12/23/2003
• Issued: 05/17/2011
• 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:
  US10/746,849
• Publication Number:
  US 20050149430A1
• Time in Patent Office: 2,702 Days
• Field of Search: 707/1, 707/100, 707/104.1, 705/1, 705/1.1, 705/16, 705/17, 705/35, 705/39, 705/40, 705/42, 705/44, 235/379, 235/380, 455/406, 455/458, 455/456.2, 455/456.6
• US Class Current: 705/35
• 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 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

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 merchant point of sale device configured for capturing and transmitting data to a central authorizing host indicative of a proffered payment received by the point of sale device, the device comprising:

a financial data component that obtains, at a point of sale on behalf of the merchant, financial information about the proffered payment;

a global positioning system (GPS) receiver that utilizes received GPS signals to determine the present location of the point of sale device when the financial information about the proffered payment is obtained;

a transceiver component that is communicatively linked to the central authorizing host; and

a processor component that receives the financial information and the location information and induces the transceiver component to transmit the financial information and the location information to the central authorizing host,

wherein the central authorizing host compares the present location of the point of sale device to prestored information associated with a plurality of approved locations at which the merchant will accept payments utilizing the point of sale device and evaluates the risk of accepting the proffered payment by the point of sale device based at least in part upon the comparison.

2. The point of sale device of claim 1, wherein the financial data component comprises a reader capable of reading the magnetic ink character recognition (MICR) code on a check.

3. The point of sale device of claim 2, wherein the financial data component further comprises an input keyboard, whereby additional information about the proffered payment can be input into the point of sale device.

4. The point of sale device of claim 1, wherein the processing component induces the transceiver component to transmit information about the identity of the customer offering the proffered payment, the payment amount, the type of transaction, and information about the merchant.

5. The point of sale device of claim 1, wherein the transceiver component is telephonically connected to the central authorizing host.

6. The point of sale device of claim 1, wherein the transceiver component is connected to the central authorized host via an internet connection.

7. The point of sale device of claim 1, wherein the point of sale device further comprises a display, and wherein the transceiver component receives signals from the central authorizing host indicating whether the proffered payment should be accepted or declined by the merchant and the acceptance or declined information is displayed on the display.

8. The point of sale device of claim 1, wherein the proffered payment comprises a proffered promissory payment including a payment by check.

9. The point of sale device of claim 1, wherein the plurality of approved locations comprise a plurality of zip codes in which payments will be accepted utilizing the point of sale device.

10. A portable merchant point of sale device comprising:

a financial data component that obtains, at a point of sale on behalf of a merchant, financial information indicative of a proffered payment made by a customer of the merchant;

a location component comprising a global positioning system (GPS) receiver that determines the present location of the point of sale device when the financial information about the proffered payment is obtained;

a transceiver component that is communicatively linked to a central authorizing host; and

a processor component that receives the financial information and the location information and induces the transceiver component to transmit the financial information and the location information to the central authorizing host,

wherein the central authorizing host compares the present location of the point of sale device to prestored information associated with a plurality of approved locations at which the merchant will accept payments utilizing the point of sale device and evaluates the risk of accepting the proffered payment by the point of sale device based at least in part upon the comparison.