Systems and methods for risk triggering values

• US 8,104,675 B2
• Filed: 06/28/2008
• Issued: 01/31/2012
• Est. Priority Date: 04/04/2005
• 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: Schwarz, Jr., William S., Eldridge, Eric, Bishop, Fred
• Primary Examiner(s): HESS, DANIEL A
• Application Number:
  US12/164,043
• Publication Number:
  US 20080275821A1
• Time in Patent Office: 1,312 Days
• Field of Search: 235/379, 235/380, 705/39, 705/44
• US Class Current: 235/379
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/202 Interconnection or interaction of plural electronic cash registers [ECR] or to host computer, e.g. network details, transfer of information from host to ECR or from ECR to ECR
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• 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 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 20/405 Establishing or using transaction specific rules
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions

Abstract

The invention includes systems and methods for facilitating risk assessment for point of sale transactions utilizing at least one risk triggering value (RTV) stored within a distributed (e.g., local and/or regional) processing site. An RTV is a condensed version of a set of complex risk data and strategies usually found in central processing sites. The distributed site, after receiving a request for payment authorization, a risk value is calculated for the request. The distributed processing site compares the risk value to the RTV to determine whether to authorize payment. If the risk value is less than or equal to the RTV, the payment is authorized while a risk value greater than the RTV will not be authorized. After one or more authorizations, the distributed processing site forwards the information from the transaction(s) to the central site, wherein the central site calculates a new RTV for the account and distributes the new RTV to the distributed processing site.

Claims

1. A method comprising:

receiving, by a merchant Point of Sale (POS) device for processing a transaction request, a risk triggering value (“

RTV”

) based upon historical transaction data associated with a transaction account;

issuing, by said merchant POS device, a payment authorization in response to said transaction request and based upon said RTV; and

transmitting, by said merchant POS device and in response to said issuing, current transaction data associated with said transaction request to a central processing computer system that calculates an updated RTV based upon said RTV and said current transaction data.

2. The method of claim 1, further comprising storing, by said merchant POS device, transaction information resulting from said transaction request, wherein said transaction information includes at least one of:

an identifier of said transaction account, a transaction amount, an authorization message, and a decline message.

3. The method of claim 1, wherein said historical transaction data includes at least one of:

purchases, cash advances, payments, and disputes relating to said transaction account.

4. The method of claim 1, wherein said issuing further comprises issuing said payment authorization based upon a comparison between said RTV and a risk value.

5. The method of claim 1, wherein said issuing further comprises:

calculating, by said merchant POS device, a risk value for said transaction request, wherein said risk value is based in part upon at least one of;

an outcome, a transaction variable and an environmental variable;

comparing, by said merchant POS device, said risk value to said RTV; and

transmitting, by said merchant POS device, a payment authorization when said risk value is at least one of;

less than and equal to said RTV.

6. The method of claim 5, further comprising forwarding, by said merchant POS device, a risk strategy outcome of said request to said central authorization system.

7. The method of claim 1, further comprising compiling, by said merchant POS device, a set of risk data and strategies by compiling at least one of a transactional variable and an environmental variable.

8. The method of claim 1, further comprising compiling, by said merchant POS device, a set of risk data and strategies by compiling a transactional variable, wherein said transactional variable includes at least one of:

a transaction instrument present, account type, account status, consumer location, merchant classification, merchant location, token type, current payment status, current billed transactions, current unbilled transactions, demographic information, financial information, external credit information, external scoring information, and transaction amount.

9. The method of claim 1, further comprising compiling, by said merchant POS device, a set of risk data and strategies by compiling an environmental variable, wherein said environmental variable includes at least one of date and time, seasonal holidays, special event, and health of domain and nodes.

10. The method of claim 1, further comprising receiving an RTV at a distributed processing site, wherein said RTV was established by condensing a set of risk data and strategies, wherein said set of risk data and strategies are managed at a central processing site, and said condensed set of risk data and strategies comprise a risk triggering value (RTV).

11. The method of claim 1, further comprising receiving, by said merchant POS device, the updated RTV in response to said transmitting.

12. The method of claim 11, wherein said updated RTV is received based on at least one of:

predetermined number of transactions, predetermined interval, and predetermined time.

13. The method of claim 1, wherein said transaction account is associated with at least one of:

a charge card, a credit card, loyalty account, a debit card, and a check.

14. The method of claim 1, wherein said RTV is calculated by at least one of:

said merchant Point of Sale (POS) device, a distributed processing site, a central processing site and a central authorization system.

15. The method of claim 1, wherein said payment authorization is performed by at least one of:

said merchant Point of Sale (POS) device, a distributed processing site, a central processing site and a central authorization system.

16. The method of claim 1, wherein said RTV is cryptographically protected by way of at least one of:

a digital signature and one-way encryption.

17. The method of claim 1, wherein a tamper resistant hardware based security module is implemented on at least one of:

said merchant Point of Sale (POS) device, a distributed processing site, said central processing computer system, and a central authorization system.

18. An article of manufacture including a non-transitory, tangible computer readable medium having instructions stored thereon that, in response to execution by a merchant Point of Sale (POS) device for processing a transaction request, cause said merchant POS device to perform operations comprising:

receiving, by said merchant POS device, a risk triggering value (“

RTV”

) based upon historical transaction data associated with a transaction account;

issuing, by said merchant POS device, a payment authorization in response to said transaction request and based upon said RTV; and

transmitting, by said merchant POS device and in response to said issuing, current transaction data associated with said transaction request to a central processing computer system that calculates an updated RTV based upon said RTV and said current transaction data.

19. A system comprising:

a processor associated with a merchant Point of Sale (POS) device for processing a transaction request,

a tangible, non-transitory memory configured to communicate with said processor, said tangible, non-transitory memory having instructions stored thereon that, in response to execution by said processor, cause said processor to perform operations comprising;

receiving, by said processor, a risk triggering value (“

RTV”

) based upon historical transaction data associated with a transaction account;

issuing, by said processor, a payment authorization in response to said transaction request and based upon said RTV; and

transmitting, by said processor and in response to said issuing, current transaction data associated with said transaction request to a central processing computer system that calculates an updated RTV based upon said RTV and said current transaction data.

20. A method comprising:

receiving, by a merchant Point of Sale (POS) device for processing a transaction request, a risk triggering value (“

RTV”

) based upon historical transaction data associated with a transaction account;

issuing, by said merchant POS device, a first payment authorization;

wherein a second payment authorization was issued by a distributed processing site, wherein said second payment authorization is based upon a load on said distributed processing site; and

transmitting, by said merchant POS device and in response to said issuing, current transaction data associated with said transaction request to a central processing computer system that calculates an updated RTV based upon said RTV and said current transaction data.

21. A method comprising:

receiving, by a computer-based system for processing a transaction request, a risk triggering value (“

RTV”

) based upon historical transaction data associated with a transaction account, wherein said RTV comprises a sum of trigger points including a long standing customer trigger point, an above average income trigger point, and a debt to income ratio trigger point;

issuing, by said computer-based system, a payment authorization in response to said transaction request and based upon said RTV; and

transmitting, by said computer-based system and in response to said issuing, current transaction data associated with said transaction request to a central processing computer system that calculates an updated RTV based upon said RTV and said current transaction data.