Techniques for authorization of usage of a payment device

• US 8,584,936 B2
• Filed: 08/31/2007
• Issued: 11/19/2013
• Est. Priority Date: 02/01/2006
• Status: Active Grant

• Current Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Original Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Inventors: Fiebiger, Sara, Gluck, Adam, Hill, Dennis J., Kelly-Frank, Carole, Kranzley, Arthur D., Reany, Robert D., Mealey, Kenneth J.
• Primary Examiner(s): STANFORD, CHRISTOPHER J
• Application Number:
  US11/897,577
• Publication Number:
  US 20080033880A1
• Time in Patent Office: 2,272 Days
• Field of Search: 235/280
• US Class Current: 235/380
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network 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 20/4016 involving fraud or risk level assessment in transaction processing

Abstract

Techniques for authorization of usage of a payment device include facilitating an issuer of the device obtaining an authorization message for an account number associated with the device, based on desired spending limit parameters established by a merchant and/or an issuer of the device; facilitating obtaining an issuer authorization decision; and responsive to the issuer authorization decision, facilitating setting a spending limit for the account number based on at least an appropriate one of the parameters.

Claims

1. A method for authorization of usage of a payment device at a merchant, said payment device having an associated account number and being issued by an issuer coupled to a payment processing network, said method comprising the steps of:

facilitating obtaining said account number in connection with a putative transaction with a terminal of said merchant;

facilitating determining whether said account number is in an active file of said merchant which indicates whether said account number is known to said merchant, using an apparatus intermediate said terminal and said payment processing network;

responsive to said determining step indicating that said account number is not in said active file of said merchant, such that said account number is not known to said merchant;

facilitating said issuer obtaining an authorization message, through said payment processing network, for said account number;

facilitating obtaining an issuer authorization decision;

facilitating checking, using said apparatus, whether said account number is ineligible for said putative transaction, without use of said issuer authorization decision;

responsive to said checking indicating that said account number is not ineligible for said putative transaction, approving said putative transaction, with said apparatus, without use of said issuer authorization decision;

responsive to said issuer authorization decision, facilitating setting a spending limit for said account number;

facilitating conducting subsequent putative transactions for said account number;

facilitating determining that a parameter associated with said account number is reaching a predetermined relationship with said spending limit; and

responsive to said determining that said parameter is reaching said predetermined relationship, facilitating obtaining a new issuer authorization decision to adjust a spendable balance associated with said account number.

2. The method of claim 1, wherein:

said spending limit comprises an aggregation limit specifying at least one of;

a maximum amount of spending before said new issuer authorization decision is required,

a maximum number of presentations of said payment device to said merchant before said new issuer authorization decision is required, and

a maximum amount of time before said new issuer authorization decision is required; and

said payment device is post-funded in that a financial authorization, clearing, and settlement for said subsequent putative transactions is only conducted once it is determined that said parameter associated with said account is reaching said predetermined relationship with said aggregation limit.

3. The method of claim 2, wherein said aggregation limit varies based on at least one of (i) brand of said payment device, and (ii) type of product of said payment device within a given brand.

4. The method of claim 1, further comprising the additional step of:

responsive to said determining step indicating that said account number is not in said active file of said merchant, setting a flag to indicate that said account number is not in said active file of said merchant.

5. The method of claim 4, wherein said checking, using said apparatus, whether said account number is ineligible for said putative transaction, without use of said issuer authorization decision, comprises accessing, via said apparatus, a file structure comprising at least negative account status information for a plurality of accounts, wherein said checking indicating that said account number is not ineligible for said putative transaction comprises a determination that said account number does not exhibit said negative account status information.

6. The method of claim 5, wherein said file structure comprises a constructed file and said merchant comprises a transit authority, said constructed file in turn comprising at least data associated with a first payment network and data associated with said transit authority, said data associated with said first payment network comprising at least a portion of said negative account status information for said plurality of said accounts, said data associated with said transit authority comprising at least a portion of said active file.

7. The method of claim 1, further comprising the additional step of facilitating inclusion of said putative transactions in a data warehouse, for subsequent usage by at least one of:

(i) said issuer of said device, (ii) said merchant, (iii) a merchant acquirer or merchant payment service provider, and (iv) another merchant.

8. The method of claim 1, wherein said step of facilitating conducting said subsequent putative transactions for said account number comprises facilitating approval of given ones of said subsequent putative transactions, where appropriate, by (i) determining whether an account associated with said account number exhibits a limiting condition, and (ii) responsive to determining that said account does not exhibit said limiting condition, facilitating said approval of said given one of said subsequent putative transactions and a balance aggregation, further comprising the additional step of facilitating substantially parallel sending of a response to an acquiring entity associated with a corresponding one of said subsequent putative transactions.

9. The method of claim 1, wherein said account number is a first account number and said payment device is a first payment device, further comprising:

facilitating obtaining a second account number of a second payment device in connection with another putative transaction with a terminal of said merchant;

facilitating determining whether said second account number is in said active file of said merchant which indicates whether said second account number is known to said merchant, using said apparatus;

responsive to said determining step indicating that said second account number is not in said active file of said merchant, such that said second account number is not known to said merchant;

facilitating an issuer of said second device obtaining an authorization message, through said payment processing network, for said second account number;

facilitating obtaining an issuer authorization decision from said issuer of said second payment device;

facilitating checking, using said apparatus, whether said second account number is ineligible for said putative transaction, without use of said issuer authorization decision from said issuer of said second payment device;

responsive to said checking indicating that said second account number is not ineligible for said putative transaction, approving said another putative transaction, with said apparatus, without use of said issuer authorization decision from said issuer of said second payment device; and

responsive to said issuer authorization decision from said issuer of said second payment device, facilitating setting a spending limit for said second account number;

wherein;

said issuer authorization decision from said issuer of said second payment device is negative,

said spending limit for said second account number is set to one of zero and a negative number, and

said merchant carries a risk of loss of value of said another putative transaction.

10. The method of claim 1, wherein said account number is a first account number and said payment device is a first payment device, further comprising:

facilitating obtaining a second account number of a second payment device in connection with another putative transaction with a terminal of said merchant;

facilitating determining whether said second account number is in said active file of said merchant which indicates whether said second account number is known to said merchant, using said apparatus;

responsive to said determining step indicating that said second account number is not in said active file of said merchant, such that said second account number is not known to said merchant;

facilitating an issuer of said second device obtaining an authorization message, through said payment processing network, for said second account number;

facilitating obtaining an issuer authorization decision from said issuer of said second payment device;

facilitating checking, using said apparatus, whether said second account number is ineligible for said putative transaction, without use of said issuer authorization decision from said issuer of said second payment device;

responsive to said checking indicating that said second account number is not ineligible for said putative transaction, approving said another putative transaction, with said apparatus, without use of said issuer authorization decision from said issuer of said second payment device; and

responsive to said issuer authorization decision from said issuer of said second payment device, facilitating setting a spending limit for said second account number;

wherein;

said issuer authorization decision from said issuer of said second payment device is negative,

said spending limit for said second account number is set to a positive number, and

said merchant carries a risk of loss of value of said another putative transaction;

further comprising the additional step of flagging said second account number with a negative status.

11. The method of claim 1, further comprising adding said account number to said active file of said merchant when said payment device is first used at said merchant.

12. An apparatus for authorization of usage of a payment device at a merchant, the payment device having an associated account number and being issued by an issuer coupled to a payment processing network, said apparatus comprising:

a memory; and

at least one processor coupled to said memory, said at least one processor being operative to;

facilitate obtaining said account number in connection with a putative transaction with a terminal of said merchant, said apparatus being intermediate said terminal and said payment processing network;

facilitate determining whether said account number is in an active file of said merchant which indicates whether said account number is known to said merchant, said active file being stored in said memory;

responsive to said determining step indicating that said account number is not in said active file of said merchant, such that said account number is not known to said merchant;

facilitate said issuer obtaining an authorization message, through the payment processing network, for the account number;

facilitate obtaining an issuer authorization decision;

facilitate checking whether said account number is ineligible for said putative transaction, without use of said issuer authorization decision;

responsive to said checking indicating that said account number is not ineligible for said putative transaction, approve said putative transaction without use of said issuer authorization decision;

responsive to said issuer authorization decision, facilitate setting a spending limit for the account number;

facilitate conducting subsequent putative transactions for said account number;

facilitate determining that a parameter associated with said account number is reaching a predetermined relationship with said spending limit; and

responsive to said determining that said parameter is reaching said predetermined relationship, facilitate obtaining a new issuer authorization decision to adjust a spendable balance associated with said account number.

13. The apparatus of claim 12, wherein:

said spending limit comprises an aggregation limit specifying at least one of;

a maximum amount of spending before said new issuer authorization decision is required,

a maximum number of presentations of said payment device to said merchant before said new issuer authorization decision is required, and

a maximum amount of time before said new issuer authorization decision is required; and

the payment device is post-funded in that a financial authorization, clearing, and settlement for said subsequent putative transactions is only conducted once it is determined that said parameter associated with said account is reaching said predetermined relationship with said aggregation limit; and

said active file comprises account numbers including said associated account number and said at least one processor is further operative to;

receive a periodic update file from a payment processing network operator based on information from the issuer; and

delete those of said account numbers in said active file that have not been used within a predetermined time period.

14. The apparatus of claim 12, wherein said at least one processor is further operative to add said account number to said active file of said merchant when the payment device is first used at the merchant.

15. An apparatus for authorization of usage of a payment device in a transit system, the payment device having an associated account number and being issued by an issuer coupled to a payment processing network, said apparatus comprising:

a fare gate assembly adapted to read the payment device;

a payment platform module in communication with said fare gate assembly; and

an active file manager in communication with said payment platform module, wherein said payment platform module and said active file manager are cooperatively configured to;

facilitate obtaining said account number in connection with a putative transaction with a terminal of said merchant, said apparatus being intermediate the terminal and the payment processing network;

facilitate determining whether said account number is in an active file of the merchant which indicates whether said account number is known to the merchant, said active file being stored in association with said active file manager;

responsive to said determining step indicating that said account number is not in said active file of the merchant, such that said account number is not known to the merchant;

facilitate the issuer obtaining an authorization message, through the payment processing network, for the account number;

facilitate obtaining an issuer authorization decision;

facilitate checking whether said account number is ineligible for said putative transaction, without use of said issuer authorization decision;

responsive to said checking indicating that said account number is not ineligible for said putative transaction, approve said putative transaction without use of said issuer authorization decision;

responsive to said issuer authorization decision, facilitate setting a spending limit for the account number;

facilitate conducting subsequent putative transactions for said account number;

facilitate determining that a parameter associated with said account number is reaching a predetermined relationship with said spending limit; and

responsive to said determining that said parameter is reaching said predetermined relationship, facilitate obtaining a new issuer authorization decision to adjust a spendable balance associated with said account number.

16. The apparatus of claim 15, wherein said active file manager is further configured to determine whether a user of the device shall have access to the transit system via said fare gate assembly, said access comprising said putative transaction.

17. The apparatus of claim 16, wherein said payment platform module is further configured to maintain at least some records associated with said account number.

18. The apparatus of claim 17, wherein said fare gate assembly, said payment platform module, and said active file manager are cooperatively configured to update said records associated with said account number at least in real time based on quality of service prioritizations.

19. The apparatus of claim 15, wherein at least one of said active file manager, said fare gate assembly, and said payment platform module is further configured to provide stand-in functionality in case of an upstream malfunction.

20. The apparatus of claim 19, wherein said active file manager comprises a primary active file manager and said payment platform comprises a primary payment platform, further comprising a secondary active file manager and a secondary payment platform, operatively configured for backing up said primary active file manager and said primary payment platform, respectively.

21. The apparatus of claim 15, wherein:

said spending limit comprises an aggregation limit specifying at least one of;

a maximum amount of spending before said new issuer authorization decision is required,

a maximum number of presentations of said payment device to said merchant before said new issuer authorization decision is required, and

a maximum amount of time before said new issuer authorization decision is required; and

the payment device is post-funded in that a financial authorization, clearing, and settlement for said subsequent putative transactions is only conducted once it is determined that said parameter associated with said account is reaching said predetermined relationship with said aggregation limit.

22. The apparatus of claim 15, wherein said payment platform module and said active file manager are further cooperatively configured to add said account number to said active file of said merchant when the payment device is first used at the merchant wherein said account number is not located in said active file of said merchant prior to said first use at said merchant.

23. A method for authorization of usage of a payment device at a merchant, said payment device having an associated account number and being issued by an issuer coupled to a payment processing network, said method comprising the steps of:

facilitating obtaining said account number in connection with a putative transaction with a terminal of said merchant;

facilitating determining whether said account number is in an active file of said merchant, using an apparatus intermediate said terminal and said payment processing network;

responsive to said determining step indicating that said account number is not in said active file of said merchant;

facilitating said issuer obtaining an authorization message for a nominal amount, to validate to said merchant an account associated with said account number of said payment device, said issuer obtaining said authorization message through said payment processing network, for said account number;

facilitating obtaining an issuer authorization decision;

approving said putative transaction, with said apparatus, without use of said issuer authorization decision;

responsive to said issuer authorization decision, facilitating setting a spending limit for said account number;

facilitating conducting subsequent putative transactions for said account number;

facilitating determining that a parameter associated with said account number is reaching a predetermined relationship with said spending limit; and

responsive to said determining that said parameter is reaching said predetermined relationship, facilitating obtaining a new issuer authorization decision to adjust a spendable balance associated with said account number;

wherein;

said spending limit comprises an aggregation limit specifying at least one of;

a maximum amount of spending before said new issuer authorization decision is required,

a maximum number of presentations of said payment device to said merchant before said new issuer authorization decision is required, and

a maximum amount of time before said new issuer authorization decision is required; and

said payment device is post-funded in that a financial authorization, clearing, and settlement for said subsequent putative transactions is only conducted once it is determined that said parameter associated with said account is reaching said predetermined relationship with said aggregation limit.

24. An apparatus for authorization of usage of a payment device at a merchant, the payment device having an associated account number and being issued by an issuer coupled to a payment processing network, said apparatus comprising:

a memory; and

at least one processor coupled to said memory, said at least one processor being operative to;

facilitate obtaining said account number in connection with a putative transaction with a terminal of said merchant, said apparatus being intermediate said terminal and said payment processing network;

facilitate determining whether said account number is in an active file of said merchant, said active file being stored in said memory;

responsive to said determining step indicating that said account number is not in said active file of said merchant;

facilitate said issuer obtaining an authorization message for a nominal amount, to validate to said merchant an account associated with said account number of the payment device, said issuer obtaining said authorization message through the payment processing network, for the account number;

facilitate obtaining an issuer authorization decision;

approve said putative transaction without use of said issuer authorization decision;

responsive to said issuer authorization decision, facilitate setting a spending limit for the account number;

facilitate conducting subsequent putative transactions for said account number;

facilitate determining that a parameter associated with said account number is reaching a predetermined relationship with said spending limit; and

responsive to said determining that said parameter is reaching said predetermined relationship, facilitate obtaining a new issuer authorization decision to adjust a spendable balance associated with said account number;

wherein;

said spending limit comprises an aggregation limit specifying at least one of;

a maximum amount of spending before said new issuer authorization decision is required,

a maximum number of presentations of said payment device to said merchant before said new issuer authorization decision is required, and

a maximum amount of time before said new issuer authorization decision is required; and

the payment device is post-funded in that a financial authorization, clearing, and settlement for said subsequent putative transactions is only conducted once it is determined that said parameter associated with said account is reaching said predetermined relationship with said aggregation limit.

25. An apparatus for authorization of usage of a payment device in a transit system, the payment device having an associated account number and being issued by an issuer coupled to a payment processing network, said apparatus comprising:

a fare gate assembly adapted to read the payment device;

a payment platform module in communication with said fare gate assembly; and

an active file manager in communication with said payment platform module, wherein said payment platform module and said active file manager are cooperatively configured to;

facilitate obtaining said account number in connection with a putative transaction with a terminal of said merchant, said apparatus being intermediate the terminal and the payment processing network;

facilitate determining whether said account number is in an active file of the merchant, said active file being stored in association with said active file manager;

responsive to said determining step indicating that said account number is not in said active file of the merchant;

facilitate the issuer obtaining an authorization message for a nominal amount, to validate to the merchant an account associated with said account number of the payment device, said issuer obtaining said authorization message through the payment processing network, for the account number;

facilitate obtaining an issuer authorization decision;

approve said putative transaction without use of said issuer authorization decision;

responsive to said issuer authorization decision, facilitate setting a spending limit for the account number;

facilitate conducting subsequent putative transactions for said account number;

facilitate determining that a parameter associated with said account number is reaching a predetermined relationship with said spending limit; and

responsive to said determining that said parameter is reaching said predetermined relationship, facilitate obtaining a new issuer authorization decision to adjust a spendable balance associated with said account number;

wherein;

said spending limit comprises an aggregation limit specifying at least one of;

a maximum amount of spending before said new issuer authorization decision is required,

a maximum number of presentations of said payment device to said merchant before said new issuer authorization decision is required, and

a maximum amount of time before said new issuer authorization decision is required; and

said payment device is post-funded in that a financial authorization, clearing, and settlement for said subsequent putative transactions is only conducted once it is determined that said parameter associated with said account is reaching said predetermined relationship with said aggregation limit.