Methods for risk management in payment-enabled mobile device

• US 8,706,556 B2
• Filed: 10/29/2010
• Issued: 04/22/2014
• Est. Priority Date: 11/06/2009
• Status: Active Grant

• Current Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Original Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Inventors: Mestr, Patrick, Radu, Cristian, Smets, Patrik, Phillips, Simon, Carter, Ronald D.
• Primary Examiner(s): ADE, OGER GARCIA
• Application Number:
  US12/915,603
• Publication Number:
  US 20110112920A1
• Time in Patent Office: 1,271 Days
• Field of Search: 705/17
• US Class Current: 705/17
• CPC Class Codes: G06Q 20/16 Payments settled via telecommunication systems
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/204 comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit
• CPC Class Codes: G06Q 20/28 Pre-payment schemes, e.g. "pay before"
• CPC Class Codes: G06Q 20/3265 characterised by personalisation for use
• CPC Class Codes: G06Q 20/3278 RFID or NFC payments by means of M-devices
• CPC Class Codes: G06Q 20/3433 the counter having monetary units
• CPC Class Codes: G06Q 20/349 Rechargeable cards
• CPC Class Codes: G06Q 20/381 Currency conversion
• 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 20/4012 Verifying personal identification numbers [PIN]
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 20/409 Device specific authentication in transaction processing
• CPC Class Codes: G07F 7/1025 Identification of user by a PIN code

Abstract

A payment-enabled mobile device such as a “smart phone” incorporates risk management features that are applicable to its use in contactless payment transactions. Some features may govern when verification of the cardholder'"'"'s identity is required for consummation of the current transaction. The features may be configurable by the payment card account issuer and/or the user of the mobile device.

Claims

1. A method of operating a payment-enabled mobile device, the method comprising:

receiving in the mobile device, during a first tap of the mobile device, for a current transaction on a proximity reader component of a point of sale (POS) terminal, first transaction context data for the current transaction from the proximity reader component;

receiving in the mobile device, during a second tap of the mobile device, for the current transaction on the proximity reader component, second transaction context data for the current transaction from the proximity reader component;

determining, by comparing the first transaction context data with the second transaction context data in the mobile device, that the second tap is for the same transaction as the first tap;

determining, by the mobile device, that one of a PIN verification status flag or a user acknowledgment status flag has been set; and

transmitting, by the mobile device to the POS terminal, a payment card account number to consummate the transaction.

2. The method of claim 1, wherein the payment-enabled mobile device is programmed to decline the current transaction in response to the second transaction context data not matching the first transaction context data.

3. The method of claim 1, wherein the transaction context data includes transaction amount data and a currency indicator.

4. A payment-enabled mobile device, comprising:

at least one processor;

a memory, in communication with the at least one processor, and storing a payment application program;

an antenna;

a transceiver, coupled to the antenna, for exchanging wireless signals via the antenna with a proximity reader component of a point of sale (POS) terminal;

the transceiver operating under control by the at least one processor and the payment application program; and

a nonvolatile memory for implementing a first accumulator and a second accumulator, said second accumulator different from said first accumulator, and for implementing a first counter associated with the first accumulator and a second counter associated with the second accumulator;

said processor controlled by the payment application program to;

detect a tap on a proximity reader component;

refer to a count tracked by the first counter regarding payment usage aspects and stored in the first accumulator to determine whether to decline a current transaction; and

refer to a count tracked by the second counter regarding risk management aspects and stored in the second accumulator to determine whether to require a user of the mobile device to enter a personal identification number (PIN) as a condition of consummating the current transaction.

5. The payment-enabled mobile device of claim 4, wherein:

each of said accumulators is configurable between a temporary accumulation mode and a permanent accumulation mode;

in the temporary accumulation mode, a transaction amount for a current transaction is registered into said each accumulator before considering a value of said each accumulator with respect to the current transaction; and

in the permanent accumulation mode, the transaction amount for the current transaction is registered into said each accumulator only in response to consummation of the current transaction.

6. A method of performing a purchase transaction, the method comprising:

receiving transaction information in a point of sale (POS) terminal, the transaction information including a transaction amount for a current transaction;

determining in the POS terminal, based on the transaction amount, that a cardholder verification process is required for the current transaction;

receiving a first indication in the POS terminal, from a payment-enabled mobile device, that the payment-enabled mobile device is capable of performing the cardholder verification process;

transmitting, by the POS terminal to the payment-enabled mobile device, instructions to perform the cardholder verification process;

receiving a second indication in the POS terminal that the payment-enabled mobile device has verified a personal identification number (PIN) entered into the payment-enabled mobile device for the current transaction by a user of the payment-enabled mobile device; and

consummating the current transaction by the POS terminal in response to the second indication.

7. The method of claim 6, wherein the second indication is a digital signature generated by the payment-enabled mobile device.

8. The method of claim 7, wherein the digital signature is verified by the POS terminal.

9. The method of claim 6, wherein the second indication is a cryptographically generated dynamic security code.

10. The method of claim 9, wherein the POS terminal forwards the cryptographically generated dynamic security code in an authorization request that is relayed to an issuer of the user'"'"'s payment card account.

11. The method of claim 6, wherein the first and second indications are both provided by a single indication, from the payment-enabled mobile device, of successful pre-entry of the PIN by the user.

12. The method of claim 11, wherein said PIN pre-entry is valid for a predetermined number of additional transactions or for additional transactions during a predetermined period of time.

13. A method of operating a payment-enabled mobile device, the payment-enabled mobile device including a display device for displaying information to a user, the method comprising:

receiving, in the payment-enabled mobile device, input from the user, the input comprising a personal identification number (PIN);

verifying the PIN in the payment-enabled mobile device;

in response to verifying the PIN;

setting a PIN-verified status in the payment-enabled mobile device; and

initiating a count-down function in the payment-enabled mobile device, the count-down function for indicating a future point in time at which the PIN-verified status will expire; and

providing a visual count-down display to the user via the display device, the visual count-down display sequentially updated by the payment-enabled mobile device to present current values of the count-down function.

14. The method of claim 13, further comprising:

displaying a button indication on the display device, the button indication for allowing the user to extend the future point in time at which the PIN-verified status will expire.

15. The method of claim 14, further comprising:

detecting, in the payment-enabled mobile device, actuation of the button indication by the user;

in response to the actuation, extending the future point in time at which the PIN-verified status will expire; and

restarting the visual count-down display to reflect the extending of the future point in time.

16. A method of operating a payment-enabled mobile device, the payment-enabled mobile device including a display device for displaying information to a user, the method comprising:

receiving, in the payment-enabled mobile device, input from the user, the input comprising a transaction acknowledgment;

in response to receiving the transaction acknowledgment;

setting an acknowledgement status flag in the payment-enabled mobile device;

initiating a count-down function in the payment-enabled mobile device, the count-down function for indicating a future point in time at which the acknowledgement status flag will expire; and

providing a visual count-down display to the user via the display device, the visual count-down display sequentially updated by the payment-enabled mobile device to present current values of the count-down function.

17. The method of claim 16, further comprising:

displaying a button indication on the display device, the button indication for allowing the user to extend the future point in time at which the acknowledgement status flag will expire.

18. The method of claim 17, further comprising:

detecting, in the payment-enabled mobile device, actuation of the button indication by the user;

in response to the actuation, extending the future point in time at which the acknowledgement status flag will expire; and

restarting the visual count-down display to reflect the extending of the future point in time.

19. A method of operating a payment-enabled mobile device, the method comprising:

receiving, in the device, pre-transaction user input from a user of the device;

storing, in the device, an indication of the pre-transaction user input;

detecting by the device that it is tapped on a proximity reader component in connection with a purchase transaction;

reading said indication; and

in response to said indication, consummating the purchase transaction without requiring the device to be tapped a second time on the proximity reader component;

wherein the user input includes at least one of (a) a transaction acknowledgment signal and (b) entry of a personal identification number (PIN).

20. The method of claim 19, wherein said indication remains valid for a pre-determined number of additional transactions.

21. The method of claim 19, wherein said indication remains valid for additional transactions during a predetermined period of time.