U.S. patent application number 12/257179 was filed with the patent office on 2009-05-07 for portable consumer device including data bearing medium including risk based benefits.
Invention is credited to Patrick Faith, Ayman Hammad.
Application Number | 20090119170 12/257179 |
Document ID | / |
Family ID | 40580421 |
Filed Date | 2009-05-07 |
United States Patent
Application |
20090119170 |
Kind Code |
A1 |
Hammad; Ayman ; et
al. |
May 7, 2009 |
PORTABLE CONSUMER DEVICE INCLUDING DATA BEARING MEDIUM INCLUDING
RISK BASED BENEFITS
Abstract
A system and method for distributing coupons to consumers at the
point-of-sale, where the benefit offered in the coupon can be
determined according to a risk analysis. The coupon can then be
applied to a transaction taking place at the point-of-sale or
stored for future use.
Inventors: |
Hammad; Ayman; (Pleasanton,
CA) ; Faith; Patrick; (Pleasanton, CA) |
Correspondence
Address: |
TOWNSEND AND TOWNSEND CREW LLP
TWO EMBARCADERO CENTER, 8TH FLOOR
SAN FRANCISCO
CA
94111
US
|
Family ID: |
40580421 |
Appl. No.: |
12/257179 |
Filed: |
October 23, 2008 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
|
|
60982682 |
Oct 25, 2007 |
|
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Current U.S.
Class: |
705/14.17 ;
705/38 |
Current CPC
Class: |
G06Q 20/32 20130101;
G06Q 20/3825 20130101; G06Q 20/3276 20130101; G06Q 10/087 20130101;
G06Q 20/3223 20130101; G06Q 40/00 20130101; G06Q 40/12 20131203;
G06Q 20/3274 20130101; G06Q 20/401 20130101; G06Q 20/20 20130101;
G06Q 40/025 20130101; H04L 63/18 20130101; G06Q 20/3224 20130101;
G06Q 30/0215 20130101; G06Q 20/387 20130101; G06Q 20/40 20130101;
G06Q 40/128 20131203; G06Q 30/0212 20130101; G06Q 30/0601 20130101;
G06Q 20/10 20130101; G06Q 20/102 20130101; G06Q 30/00 20130101 |
Class at
Publication: |
705/14 ;
705/38 |
International
Class: |
G06Q 30/00 20060101
G06Q030/00 |
Claims
1. A method comprising: receiving a coupon, wherein a benefit
offered by the coupon is based on a risk assessment; and providing
the coupon to a merchant.
2. The method of claim 1 wherein the risk assessment comprises
performing a fraud risk analysis.
3. The method of claim 1 wherein the risk assessment comprises a
credit risk analysis.
4. The method of claim 1 wherein the receiving the coupon comprises
receiving the coupon at a portable consumer device.
5. The method of claim 4 wherein providing the coupon to the
merchant comprises providing the coupon to an access device located
at the merchant.
6. The method of claim 4 further comprising: storing the received
the coupon in the portable consumer device.
7. The method of claim 1 wherein the benefit is a discount that is
greater when the risk assessment indicates that it is likely that
an intended recipient of the coupon will eventually pay for an good
or service.
8. The method of claim 7 wherein receiving the coupon comprises
receiving the coupon at a phone.
9. The method of claim 7 further comprising: sending a request for
one or more coupons, prior to receiving the coupon.
10. The method of claim 1 wherein the coupon originates from a
manufacturer, an issuer, or a payment processing network.
11. A computer-readable medium comprising code for performing the
method of claim 1.
12. A portable consumer device with a processor and the
computer-readable medium of claim 11.
13. A method comprising: performing a risk analysis: selecting a
coupon using the risk analysis, wherein a benefit offered by the
coupon varies with a result of the risk analysis; and sending the
coupon to a consumer.
14. A computer readable medium comprising code for performing the
method of claim 13.
15. A method comprising: conducting a risk analysis; requesting one
or more coupons from one or more coupon-issuing entities, wherein
the request includes a risk assessment; receiving a coupon from the
one or more coupon-issuing entities, wherein the value of the
coupon is based on the risk assessment; and sending the coupon.
16. The method of claim 15 wherein the risk assessment was
generated using a fraud risk analysis.
17. The method of claim 15 wherein the risk assessment was
generated using a credit risk analysis.
18. The method of claim 15 wherein the coupon-issuing entities
include manufacturers, issuers, merchants and a payment processing
network.
19. A computer-readable medium comprising code for performing the
method of claim 15.
20. A server computer with a processor and the computer-readable
medium of claim 19.
Description
CROSS-REFERENCES TO RELATED APPLICATIONS
[0001] This patent application claims priority to U.S. Provisional
Application No. 60/982,682 filed Oct. 25, 2007, entitled "Mobile
Phone Payment System and Method," which is hereby incorporated by
reference in its entirety for all purposes.
BACKGROUND
[0002] Many entities offer coupons for a variety of reasons. For
example, manufacturers and merchants may issue coupons to reduce
their inventories. Manufacturers and merchants may also issue
coupons to promote new products. Financial entities, such as
issuers, may also offer coupons to promote their financial
services. Entities will also often collaborate with each other to
cross-promote products for a variety of reasons. Despite all these
efforts, coupons often go unused because consumers are either
unaware that coupons exist or are unable to obtain relevant
coupons.
[0003] One problem faced by coupon offering entities is that they
often do not have all of the information that they need to
determine what discounts they would like to offer to a consumer.
For example, coupon offering entities do not know the fraud or
credit risk that a consumer presents at the time and place of sale
because coupons are issued and distributed before a purchasing
transaction takes place. As a result, coupon offering entities are
not able to factor the fraud or credit risk of a consumer into any
offered discount.
[0004] Coupon offering entities would not only like a better means
to distribute coupons to consumers, but they would also like a
better means to tailor specific coupons for specific consumers.
[0005] Further, in the context of credit and debit transactions,
consumers that are inclined to conduct fraudulent transactions or
may not have the ability to eventually pay for the transactions,
can create potential losses for manufacturers, payment processing
organizations, and issuers. It would be desirable to encourage
consumers who do not present a high risk of fraud and/or a
high-risk of non-payment to conduct transactions.
[0006] Embodiments of this disclosure address these and other
problems.
SUMMARY
[0007] Embodiments of the invention are, without limitation,
directed to methods, systems, computer readable media, and
devices.
[0008] One embodiment of the invention is directed to a method
comprising receiving a coupon, wherein a benefit offered by the
coupon is based on a risk assessment. The risk assessment may be
associated with an intended recipient's ability to eventually pay
for goods or services in a transaction. The coupon is provided to a
merchant by the recipient of the coupon (e.g., a consumer).
[0009] Another embodiment of the invention is directed to a method
comprising performing a risk analysis, and selecting a coupon using
the risk analysis. A benefit provided by the coupon varies with a
result of the risk analysis. The coupon is then sent to a
consumer.
[0010] Another embodiment of the invention is directed to a method
comprising conducting a risk analysis and requesting one or more
coupons from one or more coupon-issuing entities. The request
includes a risk assessment. The method also includes receiving a
coupon from the one or more coupon-issuing entities, where the
value of the coupon is based on the risk analysis. The coupon is
sent to a consumer.
[0011] Other embodiments of the invention are directed to systems,
computer readable media, and devices that are associated with such
methods.
[0012] These and other embodiments of the invention are addressed
in further detail below.
BRIEF DESCRIPTION OF THE DRAWINGS
[0013] FIG. 1 is a block diagram of an exemplary system for
conducting a payment transaction.
[0014] FIG. 2 is a block diagram of an exemplary portable consumer
device that can be used to conduct a payment transaction.
[0015] FIG. 3 is a block diagram of an exemplary payment processing
network.
[0016] FIG. 4 is a block diagram of an exemplary system for
conducting a payment transaction.
[0017] FIG. 5 flow chart showing the steps taken according to one
embodiment.
[0018] FIG. 6 shows a block diagram of subsystems that may be
present in computer apparatuses that are used in system, according
to embodiments of the invention.
DETAILED DESCRIPTION
[0019] Embodiments of the invention are directed to methods and
systems for providing coupons to consumers where the benefits
offered in the coupons are linked to risk analyses. For instance,
one embodiment of the invention is directed to a method comprising
receiving a coupon, where a benefit offered by the coupon is based
on a risk assessment. The risk assessment may assess the risk of
whether or not the intended recipient of the coupon will pay for a
particular good or service in a transaction. The coupon can be
provided to a merchant and redeemed by the recipient in a
transaction.
[0020] The transaction being conducted can be a credit or debit
transaction. With credit transactions, there is always a risk that
the person that conducts the transaction will not pay his or her
credit bill. In embodiments of the invention, the benefit that is
offered by the coupon can be high if there is a low risk that the
intended recipient (e.g., a consumer) will follow through and
eventually pay for the transaction in full. Conversely, the coupon
can give a discount that can be less if there is a higher risk that
the consumer will follow through and pay for the transaction in
full. In this way, various parties such as issuers, manufacturers,
and payment processing organizations can encourage increases in
transactions conducted by consumers that have a lower risk of
defaulting on their credit obligations.
[0021] With debit and credit transactions, there is always a risk
that the debit or credit account is being used fraudulently. For
example, identity theft can compromise either credit or debit
accounts. If a credit or debit account that has typically been used
by a consumer for small-ticket purchases, such as groceries,
suddenly starts to be used in transactions for expensive home
theater equipment, the chances that the credit or debit account is
being used fraudulently increases. The risk may increase further
if, for example, the unusual and expensive purchases are made in
locations far from the consumer's residence. On the other hand, a
credit or debit account that is frequently used to make expensive
purchases may pose a lower fraud risk. In some embodiments of the
invention, the benefit offered by a coupon can increase as the
fraud risk for a transaction decreases. As a result, coupon-issuing
entities can encourage increases in transactions that have a lower
risk of being fraudulent.
[0022] Illustratively, bank A may issue a credit card A to consumer
A. Consumer A may have a high credit score, because he has a
history of paying off his monthly credit card bills on time. He may
also live in an area where fraud rarely occurs. Consumer A may then
request a coupon from bank A using a phone or computer, or bank A
may push the coupon to Consumer A's phone or computer. The coupon
may provide a discount of 2% on any purchase made by Consumer A
with credit card A. Conversely, bank A may issue a credit card B to
consumer B. Consumer B may have a lower credit score, since she
generally pays off her monthly balance, missed making payments once
in the last year. She also lives in an area where fraud rarely
occurs. Consumer B may then request a coupon from bank A or bank A
may push the coupon to Consumer B. The coupon may provide a
discount of 1% on any purchase made by Consumer B with credit card
B.
[0023] As illustrated by this specific example, a greater discount
can be provided to Consumer A than consumer B, since Consumer A is
more likely to pay for purchases made with credit card A than
Consumer B will pay for purchases made with credit card B.
[0024] In embodiments of the invention, such risk based coupons may
be generated before consumers actually approach merchants to
conduct face-to-face transactions. In other embodiments of the
invention, such risk based coupons can be generated during a
transaction and after a consumer has selected good or services for
purchase.
[0025] More specific descriptions of embodiments of the invention
are provided below.
I. Exemplary Systems and Payment Transactions
[0026] FIG. 1 shows a system 20 that can be used to conduct a
payment transaction according in an embodiment. The system 20
includes a merchant 22 and an acquirer 24 associated with the
merchant 22. In a typical payment transaction, a consumer 30 may
purchase goods or services at the merchant 22 using a portable
consumer device 32. In some embodiments, the portable consumer
device 32 is a wireless portable consumer device, such as a mobile
phone. In some embodiments, the portable consumer device 32
communicates with an access device 34 associated with the merchant.
The acquirer 24 can communicate with an issuer 28 via a payment
processing network 26.
[0027] The consumer 30 may be an individual, or an organization
such as a business that is capable of purchasing goods or
services.
[0028] The portable consumer device 32 may be in any suitable form.
For example, some portable consumer devices can be hand-held and
compact so that they can fit into a consumer's wallet and/or pocket
(e.g., pocket-sized). The portable consumer device 32 typically
comprises a processor, and a memory, input devices, and output
devices, operatively coupled to the processor. Specific examples of
portable consumer devices include cellular or wireless phones,
personal digital assistants (PDAs), pagers, desktop computers,
laptop computers, smart cards, and the like. The portable consumer
devices can also be debit devices (e.g., a debit card), credit
devices (e.g., a credit card), or stored value devices (e.g., a
stored value card).
[0029] The merchant 22 may also have, or may receive communications
from, an access device 34 that can interact with the portable
consumer device 32. The access devices according to embodiments of
the invention can be in any suitable form. Examples of access
devices include point of sale (POS) devices, cellular phones, PDAs,
personal computers (PCs), tablet PCs, handheld specialized readers,
set-top boxes, electronic cash registers (ECRs), automated teller
machines (ATMs), virtual cash registers (VCRs), kiosks, security
systems, access systems, and the like.
[0030] If the access device 34 is a point of sale terminal, any
suitable point of sale terminal may be used including card or phone
readers. The card or phone readers may include any suitable contact
or contactless mode of operation. For example, exemplary readers
can include RF (radio frequency) antennas, magnetic stripe readers,
etc. to interact with the portable consumer devices 32.
[0031] Acquirer 24 refers to any suitable entity that has an
account with merchant 22. For example, acquirer may be a bank that
operates a bank account for merchant.
[0032] The payment processing network 26 may include data
processing subsystems, networks, and operations used to support and
deliver authorization services, exception file services, and
clearing and settlement services. An exemplary payment processing
network may include VisaNet.TM.. Payment processing networks such
as VisaNet.TM. are able to process credit card transactions, debit
card transactions, and other types of commercial transactions.
VisaNet.TM., in particular, includes a VIP system (Visa Integrated
Payments system) which processes authorization requests and a Base
II system which performs clearing and settlement services.
[0033] The payment processing network 26 may include a server
computer. A server computer is typically a powerful computer or
cluster of computers. For example, the server computer can be a
large mainframe, a minicomputer cluster, or a group of servers
functioning as a unit. In one example, the server computer may be a
database server coupled to a Web server. The payment processing
network 26 may use any suitable wired or wireless network,
including the Internet.
[0034] The payment processing network 26 in system 20 is also
connected to various manufactures 29 and merchants 22, in addition
to issuers 28 and acquirers 24. This interconnectivity between all
of these parties allows for many new applications and services to
be provided to all connected parties.
[0035] Issuer 28 refers to any suitable entity that may open and
maintain an account associated with consumer 30. Some examples of
issuers may be a bank, a business entity such as a retail store, or
a governmental entity. In many cases, issuer may also issue a
payment card to consumer. In some embodiments, issuer may also be
the acquirer 24.
[0036] In a typical purchase transaction, the consumer 30 purchases
goods or services at the merchant 22 using the portable consumer
device 32 such as a mobile phone. The consumer's portable consumer
device 32 can interact with an access device 34 such as a POS
(point of sale) terminal at the merchant 22. A request to authorize
the purchase can then be made by the access device to an acquirer
24, which can then be forwarded to an issuer 28 via a payment
processing network 26. A response to this request can then be
forwarded back to the access device and the merchant back up
through this communication chain.
[0037] In another method for conducting a purchase transaction, the
portable consumer device 32 is capable of communicating directly
with the payment processing network 26 without using an access
device 34. Information may be sent from the portable consumer
device directly to the payment processing network. The information
may include the amount of a transaction, the merchant ID,
information about the portable consumer device itself (e.g., phone
number, SIM card number, etc.), or any other relevant data. The
information may be sent using SMS through a short code, MMS
(multimedia message), etc. Once the information is received at the
payment processing network, the payment processing network can
retrieve additional information such as any account numbers
associated with the portable consumer device. This additional
information may be stored at the payment processing network in a
database that links portable consumer device data to account
numbers. Once this information is gathered, an authorization
request message may be reformatted and then forwarded to an
issuer.
[0038] When a portable consumer device 32 can communicate with an
access device 34, such as a point of sale, the level of
sophistication increases. For example, SKUs can be transferred from
the POS terminal to the mobile phone. SKU information can be
transferred to the payment processing network. This SKU information
may be used by the payment processing network to select coupons for
the consumer. The coupons may come from the manufacturer, the
issuer, the payment processing network, and/or the merchant.
[0039] Additionally, authentication processes, security measures,
and other new forms of connectivity can all be used as a part of a
risk analysis. This risk analysis can be used to determine, at
least in part, the discount offered to a consumer in a coupon. Some
examples of new authentication processes and security measures are
described below.
[0040] In some embodiments, a portable consumer device 32 sends a
PIN to the payment processing network 26 before other messages are
sent to the payment processing network. In another embodiment, the
portable consumer device may have a camera that captures a picture
of the access device 34 display. A message including a picture of
the access device display can then be sent to the payment
processing network. The picture may include a bar code or other
type of code. The payment processing network may have image
recognition software that can recognize the information on the
access device that has been captured as an image. If image capture
is not used, the access device can transmit the transaction data to
the portable consumer device using a wireless communication
mechanism including an NFC (near filed communication) mechanism
such as Bluetooth, IR, etc.
[0041] Another way to authenticate the transaction, is to match the
GPS location of the portable consumer device 32 (or operator
information) with location information derived from the merchant
ID. If a payment processing network 26 is able to match the two
pieces of location information, then the transaction can be
considered by the payment processing network to be authentic. GPS
information taken from the portable consumer device can also be
compared to other information for security purposes, such as the
owner's home address, previous purchase locations, etc.
[0042] In embodiments of the invention, the portable consumer
device 32 may have specialized software that allows the device to
interact directly with a payment processing network 26. This
specialized software may have access to information such as account
information, encrypted account information, or a secure element or
other chip information associated with the portable consumer
device. The specialized software may also be able to use a secure
protocol or secure channel to communicate information to the
payment processing network. A consumer 30 may use the portable
consumer device to confirm the merchandise being purchased. For
example, the consumer may authenticate himself/herself to the phone
using a password, PIN, fingerprint (biometric), facial recognition,
voice recognition, or other challenge response mechanisms. Once a
consumer is authenticated to the portable consumer device, the user
can authorize the device to conduct the transaction.
[0043] In another embodiment, the portable consumer device 32 may
communicate with an access device 34 and gather information from
the merchant 22 (or vice versa) before sending information directly
to a payment processing network 26. For example, the merchant may
sign the transaction and may send an electronic signature to the
phone, and the phone may take this electronic signature and other
transaction information and may forward this information to the
payment processing network. In another embodiment, an access device
may receive an identifier, such as a verification value, phone
number, or SIM card number, from the phone. The POS terminal may
then return this information to the phone along with a merchant ID
or POS terminal ID, and this information may be sent to the payment
processing network (e.g., directly via the phone or through the
merchant and acquirer) as evidence that the phone and the POS
terminal were interacting during the transaction.
[0044] Embodiments of the invention are not limited to the
above-described embodiments. For example, although separate
functional blocks are shown for an issuer, payment processing
network, and acquirer, some entities perform all of these functions
and may be included in embodiments of invention.
[0045] An exemplary portable consumer device 32' in the form of a
phone may comprise a computer readable medium and a body as shown
in FIG. 2. (FIG. 2 shows a number of components, and the portable
consumer devices according to embodiments of the invention may
comprise any suitable combination or subset of such components.)
The computer readable medium 32(b) may be present within the body
32(h), or may be detachable from it. The body 32(h) may be in the
form a plastic substrate, housing, or other structure. The computer
readable medium 32(b) may be a memory that stores data and may be
in any suitable form including a magnetic stripe, a memory chip,
etc. The memory preferably stores information such as financial
information, transit information (e.g., as in a subway or train
pass), access information (e.g., as in access badges), etc.
Financial information may include information such as bank account
information, bank identification number (BIN), credit or debit card
number information, account balance information, expiration date,
consumer information such as name, date of birth, etc. Any of this
information may be transmitted by the portable consumer device
32'.
[0046] In some embodiments, and regardless of the type of portable
consumer device that is used, information in the memory may also be
in the form of data tracks that are traditionally associated with
credits cards. Such tracks include Track 1 and Track 2. Track 1
("International Air Transport Association") stores more information
than Track 2, and contains the cardholder's name as well as account
number and other discretionary data. This track is sometimes used
by the airlines when securing reservations with a credit card.
Track 2 ("American Banking Association") is currently most commonly
used. This is the track that is read by ATMs and credit card
checkers. The ABA (American Banking Association) designed the
specifications of this track and all world banks must abide by it.
It contains the cardholder's account, encrypted PIN, plus other
discretionary data.
[0047] The portable consumer device 32' may further include a
contactless element 32(g), which is typically implemented in the
form of a semiconductor chip (or other data storage element) with
an associated wireless transfer (e.g., data transmission) element,
such as an antenna. Contactless element 32(g) is associated with
(e.g., embedded within) portable consumer device 32' and data or
control instructions transmitted via a cellular network may be
applied to contactless element 32(g) by means of a contactless
element interface (not shown). The contactless element interface
functions to permit the exchange of data and/or control
instructions between the mobile device circuitry (and hence the
cellular network) and an optional contactless element 32(g).
[0048] Contactless element 32(g) is capable of transferring and
receiving data using a near field communications ("NFC") capability
(or near field communications medium) typically in accordance with
a standardized protocol or data transfer mechanism (e.g., ISO
14443/NFC). Near field communications capability is a short-range
communications capability, such as RFID, Bluetooth.TM., infra-red,
or other data transfer capability that can be used to exchange data
between the portable consumer device 32' and an interrogation
device. Thus, the portable consumer device 32' is capable of
communicating and transferring data and/or control instructions via
both cellular network and near field communications capability.
[0049] The portable consumer device 32' may also include a
processor 32(c) (e.g., a microprocessor) for processing the
functions of the portable consumer device 32' and a display 32(d)
to allow a consumer to see phone numbers and other information and
messages. The portable consumer device 32' may further include
input elements 32(e) to allow a consumer to input information into
the device, a speaker 32(f) to allow the consumer to hear voice
communication, music, etc., and a microphone 32(i) to allow the
consumer to transmit her voice through the portable consumer device
32'. The portable consumer device 32' may also include an antenna
32(a) for wireless data transfer (e.g., data transmission).
[0050] FIG. 3 shows a block diagram of one embodiment of a payment
processing network 26. The payment processing network in FIG. 3 has
connections with a portable consumer device 32, a manufacturer 29,
a merchant 22, and an issuer 28. The embodiment shown in FIG. 3
illustrates an embodiment where a value added services engine
(VASE) 26(a) links various connections for the payment processing
network to facilitate value-added services between the connected
parties. For example, the VASE can provide for coupons, healthcare
processing, travel processing, government processing, emergency
cards, prepaid cards, gift cards, private label cards, etc, by
integrating services from payment processing networks,
manufacturers, merchants, and issuers. In one embodiment, the VASE
is connected to a fraud risk module 26(b) and a credit risk module
26(c). These risk modules can help the VASE provide risk
assessments of consumers and of transactions. Risk assessments can
then be incorporated into the various services the VASE can
provide. One of these services, a couponing value-added service, is
described in more detail below.
II. Value-Added Service
Linking Coupon Benefit to Risk
[0051] One service that a VASE 26(a) can provide is a couponing
service.
[0052] The VASE 26(a) can push risk-based coupons to a consumer
without the need for a consumer's request. For example, a bank,
manufacturer, or payment processing organization may generate
coupons based on risk scores of consumers. The benefits associated
with those coupons can vary depending upon the risk associated with
each individual consumer. Such coupons can then be sent to the
consumers (e.g., via mail, e-mail, SMS message, etc.).
[0053] In other embodiments, a consumer can request the risk-based
coupons. For example, a consumer 30 with a portable consumer device
32 can contact a payment processing network 26 (or a payment
processing organization that operates the payment processing
network 26) to request coupons related to a payment transaction
that the consumer is conducting at an access device 34. In some
embodiments, a consumer requesting coupons while conducting a
transaction at a POS terminal can automatically redeem the coupons
at the POS terminal for the instant transaction.
[0054] More specifically, the VASE 26(a) receives a coupon request
from a consumer on behalf of the payment processing network. The
VASE can generate a risk assessment related to the coupon request.
This risk assessment can then be used by a payment processing
network 26, manufacturer 29, merchant 22, and/or issuer 28 to
select coupons that are appropriate for the consumer or the
transaction using the risk assessment. Any coupons offered to the
consumer can then be transmitted to either the consumer or a
merchant. Coupons can be can be stored by consumers, merchants, or
other parties for later use.
[0055] As shown in FIG. 3, various embodiments of payment
processing network 26 may have a fraud risk module 26(b). A fraud
risk module is able to collect and analyze data relating to a
consumer 30 in order to determine the risk that a consumer request
received by the payment processing network is fraudulent. For
example, one embodiment of a fraud risk module may analyze the
location from where the consumer request originated. The fraud risk
module can compare the location to other data, such as the home or
business address of the consumer. The fraud risk module may then
assign or adjust a fraud risk score based on the comparison of this
location information. Other factors may also be used by a fraud
risk module. For example, a fraud risk module might analyze the
value of the transaction, the types of items being purchased (e.g.,
there are more fraudulent transactions involving the purchase of
consumer electronics than transactions involving perishable food),
the order history of the consumer, the communication medium or
protocol used to transmit the purchase transaction request (e.g., a
face-to-face transaction may be less risky than an Internet-based
transaction, since merchant can individually authenticate the
consumer), any security features in the portable consumer device,
the shipping parameters in the request, the time of day the request
was made, the location from which the request was made, whether the
request was authenticated using a PIN, other security mechanisms
used, etc. The fraud risk assessment can then be shared with
coupon-issuing entities, such as issuers 28 and manufacturers 29,
via a VASE 26(a), so that those entities may use the fraud risk
assessment when forming responses to a consumer's request for
coupons.
[0056] The following patents and applications can describe suitable
fraud risk modules or aspects thereof, and they are herein
incorporated by reference in their entirety for all purposes: U.S.
patent application Ser. No. 10/863,813, filed on Jun. 7, 2004, U.S.
Pat. No. 6,119,103, issued Sep. 12, 2000, entitled "Financial Risk
Prediction Systems and Methods Therefor," U.S. Pat. No. 6,658,393,
issued Dec. 2, 2003, entitled "Financial Risk Prediction Systems
and Methods Therefor," and U.S. Patent Application Publication No.
2002/0194503, published Dec. 19, 2002, entitled "Distributed
Quantum Encrypted Pattern Generation and Scoring.
[0057] In various embodiments a credit risk module 26(c) may be
present in the payment processing network 26. A credit risk module
can analyze a consumer's 30 credit history to determine the
potential risk that a consumer will not be able to fulfill any
payment obligations for a given transaction. For example, if a
consumer has frequently made late payments on a credit account that
is being used in a purchasing transaction, then the credit risk
module can assign a higher credit risk score to for that
transaction. Other credit risk factors may include the percent of
the credit limit current used by a consumer, the number of credit
accounts opened by the consumer, the length of the consumer's
credit history, etc. The credit risk assessment can then be shared
with coupon-issuing entities, such as issuers 29 and manufacturers
30, via a VASE 26(a), so that those entities may use the credit
risk assessment when forming responses to a consumer's request for
coupons.
[0058] FIG. 4 illustrates a payment processing system according to
an embodiment of the invention. The entities illustrated in FIG. 4
are the same entities as illustrated in FIG. 1. Not all of the
connections illustrated in FIG. 1 are shown in FIG. 4 for clarity
of illustration. FIG. 5 illustrates the steps taken according to an
embodiment of the invention. The steps outlined in FIG. 5 have a
corresponding reference in FIG. 4. FIGS. 3, 4 and 5 will be
discussed together for the purpose of illustrating embodiments of
the invention.
[0059] At step 610, a consumer 30 requests one or more coupons. In
one embodiment, the consumer 30 uses a portable consumer device 32
to request coupons from a payment processing network 26. Note that
the consumer 30 can, in one embodiment, use a wireless portable
consumer device 32, such as a phone, to communicate directly with
the payment processing network 26 to send a coupon request message
to it.
[0060] The information included in a coupon request message can
include a variety of pieces of information. For example, if the
consumer 30 is requesting the coupon while in the process of
conducting a purchase transaction at an access device 34 located at
a merchant, then the coupon request message might include a device
ID, POS ID, merchant ID, transaction ID, item ID, etc.
Additionally, a coupon request message might include information
about the consumer or about any credit or debit accounts owned by
the consumer. In some embodiments, a PIN, location information, or
other security data may also be transmitted as a part of the coupon
request.
[0061] As noted above, in some embodiments, the coupon request
message may include specific transaction information such as item
IDs (e.g., stock keeping units or SKUs associated with the items
being purchased). The portable consumer device 32 could receive
this information from the access device 34 via a wireless (e.g.,
contactless mode) communication channel, or a contact-based
communication channel (e.g., placing the portable consumer device
32 in contact with the access device 34). This transaction
information may be sent from the portable consumer device 32
directly to the payment processing network 26 without passing
through the acquirer.
[0062] At step 620, the recipient of the consumer's 30 coupon
request message, such as a payment processing network 26, conducts
a risk assessment process after receiving the coupon request
message. In one embodiment, a payment processing network evaluates
the risk using modules such as a fraud risk module 26(b) and/or a
credit risk module 26(c) (see FIG. 3). Other modules that evaluate
other forms of risk may also be used in alternative embodiments. As
discussed above, modules such as a fraud risk module and a credit
risk module may use a number of factors to determine the risk of
the request. Such factors might include the location of the
transaction (high crime area vs. low crime area), the
creditworthiness of the consumer, the value of any underlying
transaction, etc. Risk can be evaluated multiple times from the
perspective of different entities. For example, what constitutes
risk for an issuer 28 may be different than what constitutes risk
for a merchant 22, manufacturer 29, or even the payment processing
network 26. The payment processing network 26 can tailor any risk
assessment based on different risk perspectives such as these.
[0063] At step 630 (embodied by reference numbers 630(a)-630(d)),
the recipient of the consumer's 30 coupon request message, such as
a payment processing network 26, searches for available coupons for
the consumer. The payment processing network searches for coupons
appropriate for the consumer's request from entities such as
issuers 28, merchants 22, manufacturers 29, or even the payment
processing network itself. Each of these requests is illustrated in
FIG. 4 at 630(a), 630(b), 630(c), and 630(d), respectively. In one
embodiment, coupons are requested from these entities using another
coupon request message that may contain different information than
the consumer's coupon request message. Coupons offers can be based
on any criteria that the coupon-offering entity feels is
appropriate. For example, coupons may be offered based on
inventories that a manufacturer or merchant has, SKU numbers
associated with items that the manufacturer or merchant wants to
move, other promotions, etc.
[0064] A risk assessment conducted by an entity such as the payment
processing network 26 can be shared with coupon-issuing entities,
such as issuers 28, merchants 22, or manufacturers 29, in the
coupon request message when coupons are requested from those
entities.
[0065] At step 640, coupons are selected for the consumer 30.
Coupon-issuing entities, such as merchants 22, manufacturers 29,
issuers 28, and payment processing entities operating payment
processing networks 26, may use risk assessment information to
determine what benefit to give to a consumer. For example, if the
risk of collection from the consumer 30 is low, then coupon with a
greater discount may be provided to the consumer 30. If the risk of
collection is high, then coupon with a lower discount may be
provided. Alternatively, in the latter scenario, no coupon may be
provided to the consumer 30.
[0066] There are a variety of ways that a benefit provided by a
coupon can be determined. For example, a coupon-issuing entity may
have a set of similar coupons available. Each coupon in the set
offers a different discount on a product. For example, a set of
coupons may contain coupons giving 3%, 5%, and 7% off a given item.
Alternatively, a coupon may be offered with a variable discount
that may be calculated as a function of the risk. For example, a
coupon may have an open-ended discount ranging between 3%-7%. The
precise discount offered to a consumer will fall somewhere in this
range depending on the risk assessment. Of course, discounts may
also be offered in absolute terms (e.g. $3.00 off), in free items
(e.g. buy two, get one free), in response to accumulated
transactions, or using any other well-known promotional scheme.
Coupons may also be offered for a combination of items as well. For
example, buying item A results in a coupon offering a discount on
item B. Benefits may also be in a variety of forms. For example, a
benefit may offer a discounted price, free items related to the
transaction, free gifts such as show tickets, extra rewards points,
lower interest rates, free or upgraded shipping, etc. One skilled
in the art will recognize that there are many different types of
benefits that can be offered to a consumer.
[0067] At step 650, any coupons that are selected for the consumer
30 are offered to the consumer. In one embodiment, the payment
processing network 26 sends a coupon response message to a
consumer's wireless portable communication device 32. This is shown
in FIG. 4 at 650(a). Once a consumer's wireless portable consumer
device 32 receives this coupon response message, a consumer can
redeem the coupon, store it for later use, or even delete the
coupon. In another embodiment, the coupon is sent to a merchant 22,
shown at 650(b), or the acquirer 34, shown at 650(c)(1), in a
coupon response message. If the coupon is shared with the acquirer
34, the acquirer 34 may forward the coupon to the merchant 22 shown
as shown at 650(c)(2). In one embodiment, the discount may be
reflected on a display on the access device 34 (e.g., a POS
terminal), while the consumer 30 conducts a payment transaction at
the access device 34. In this embodiment, the coupon may be
immediately used in the instant payment transaction. A merchant may
also store the coupon on behalf of the consumer for later use.
[0068] In other embodiments, a number may be provided to the
consumer 30 (e.g., via the merchant's access device 34, through a
phone call, through e-mail, or through the Internet) by the payment
processing network 26. This code may be then used for a purchase
made by the consumer over the Internet, using a phone or mail order
system, or any other appropriate purchasing means.
[0069] It should also be noted that in alternative embodiments, a
consumer may not request coupons. Instead, coupons may be pushed to
the consumer during the normal course of conducting a payment
transaction. In one embodiment, the payment processing network
receives a request a request to authorize the use of a credit or
debit account for a transaction. In addition to handling this
request, the payment process network may conduct a risk assessment,
search for coupons, and forward coupons to the consumer or merchant
as described above even if there has not been an explicit coupon
request made.
[0070] For illustrative purposes, a "DVD example" will be used to
demonstrate an embodiment distributing coupons to a consumer at the
point-of-sale where the discounts offered in the coupons are linked
to the risk of the consumer and transaction.
[0071] A consumer 30 at a store of a merchant 22 is about to
purchase a number of DVDs. The consumer goes to an access device
34, such as a POS terminal, of the merchant to begin a typical
payment transaction for the DVDs. After the DVDs have been scanned
into the POS device, the consumer swipes a wireless portable
consumer device 32, such as a mobile phone, at the POS device. The
wireless portable consumer device has been configured to provide
account information for a credit account that is to be used to pay
for the DVDs. In addition, the POS device can provide additional
information to the wireless portable consumer device. For example,
the POS device may communicate information concerning the POS
device, such as a POS ID and merchant ID, to the wireless portable
consumer device. Additionally, the POS device may send to the
wireless portable consumer device information concerning the
transaction, such as a transaction ID and SKUs for the DVDs. The
wireless consumer device can then send a coupon request message to
a payment processing network 26 to request coupons that might be
available for the ongoing payment transaction.
[0072] The payment processing network receives the consumer's
request for coupons and proceeds to conduct a risk assessment of
the consumer 30 and of the transaction. The consumer 30 might have
no credit problems and frequently purchases relatively small ticket
items from the current merchant 22. As a result, the chance that
the underlying purchase transaction is fraudulent or poses a high
default risk to any parties is very low. As a result, the payment
processing network 26 may deem this payment transaction as a very
low risk transaction. However, a less trustworthy consumer
conducting an unusual transaction may a end up generating a risk
assessment that indicates that there is a higher credit, fraud, or
other risk.
[0073] The payment processing network 26 may then search its own
coupon repository for any coupons that might apply to the
underlying payment transaction. In addition, the payment processing
network may request available coupons in a coupon request message
sent to the movie studios that produced the DVDs (i.e. manufactures
29), the retailer selling the DVDs (i.e. merchant 22), and the
issuer 28 behind the credit account being used to purchase the
DVDs. This coupon request message may contain any risk assessment
conducted by the payment processing network. The risk assessment
may be embodied by a risk score. The risk score could reflect the
risk of fraud, the credit risk, or a combination of fraud risk and
credit risk. For example, the risk score may indicate whether or
not the consumer will eventually pay for transaction being
conducted. In this Example, the risk score for the consumer 30 may
be "9" on a scale of 1-10 with 1 being the riskiest and 10 being
the least risky. The risk score in this example may embody both
fraud risk and credit risk.
[0074] In this DVD example, the payment processing network 26, the
merchant 22, and the issuer 28 all have no coupons that are
relevant to the DVD payment transaction. However, the movie studio
29 is willing to offer a coupon on one of the purchased DVDs
because a sequel to the DVD is going to appear in theaters soon.
The coupons available for the DVD are $1, $2, and $3 off. Since the
risk assessment given to the consumer 30 by the payment processing
network is low, the movie studio offers the $3 coupon to the
consumer. The movie studio sends a coupon response message to the
payment processing network 26 that contains the coupon. If the risk
assessment made by the payment processing network 26 had determined
that the risk for the transaction was moderate, then the movie
studio might have offered the $2 coupon. If the risk was severe,
then the $1 coupon might have been offered by the movie studio.
[0075] Finally, the coupon from the movie studio 29 is sent to the
consumer's 30 wireless portable consumer device 32. The wireless
portable consumer device 32 then sends a message to the access
device 34 regarding the coupon, and a $3 discount is given to the
consumer while at the access device 34. As previously discussed,
alternative embodiments may send the coupon to other destinations,
such as the access device 32 via the acquirer 24, without passing
through the portable consumer device 32.
[0076] One advantage for consumers is that consumers will be able
to get greater discounts offered to them in coupons. The discount
in coupons can be based on the risk of the consumer and the risk of
a transaction. Also, consumers may benefit because coupons may
become easier to redeem at the point-of-sale. Consumers may also
benefit because it will be easier for consumers to find coupons
that might apply to a purchasing transaction they are
conducting.
[0077] An advantage to coupon-issuing entities, such as merchants,
manufacturers, issuers and payment processing network, is that
coupon-issuing entities are able to get reliable information on
consumers and their purchasing transactions in real-time. As a
result, coupon-issuing entities may be able to target promotions
and coupons more precisely. Additional, the ability to ink risk to
discount can enable coupon-issuing entities to maintain better
relationships with more valued consumers.
[0078] Certain embodiments of the invention may include none, some,
or all of the above technical advantages. One or more other
technical advantages may be readily apparent to one skilled in the
art from the figures, descriptions, and claims included herein.
III. Computer Apparatuses
[0079] FIG. 6 shows a block diagram of subsystems that may be
present in computer apparatuses that can be used according to
various embodiments.
[0080] The various participants and elements in the previously
described Figures may operate using one or more computer
apparatuses to facilitate the functions described herein. Any of
the elements in the Figures may use any suitable number of
subsystems to facilitate the functions described herein. Examples
of such subsystems or components are shown in a FIG. 6. The
subsystems shown in FIG. 6 are interconnected via a system bus 775.
Additional subsystems such as a printer 774, keyboard 778, fixed
disk 779 (or other memory comprising computer readable media),
monitor 776, which is coupled to display adapter 782, and others
are shown. Peripherals and input/output (I/O) devices, which couple
to I/O controller 771, can be connected to the computer system by
any number of means known in the art, such as serial port 777. For
example, serial port 777 or external interface 781 can be used to
connect the computer apparatus to a wide area network such as the
Internet, a mouse input device, or a scanner. The interconnection
via system bus allows the central processor 773 to communicate with
each subsystem and to control the execution of instructions from
system memory 772 or the fixed disk 779, as well as the exchange of
information between subsystems. The system memory 772 and/or the
fixed disk 779 may embody a computer readable medium. Any of these
elements may be present in the previously described features. For
example, the previously described directory server and access
control server may have one or more of these components shown in
FIG. 6.
[0081] A computer readable medium according to an embodiment may
comprise code for performing any of the functions described above.
For example, the previously described payment processing network
may comprise server with a computer readable medium comprising: a)
code for receiving a coupon request message over a network; and b)
code for sending a coupon response message. The server may also
have a processor coupled to the computer readable medium, where the
processor executes instructions embodied by computer code on the
computer readable medium.
[0082] It should be understood that the present invention as
described above can be implemented in the form of control logic
using computer software in a modular or integrated manner. Based on
the disclosure and teachings provided herein, a person of ordinary
skill in the art will know and appreciate other ways and/or methods
to implement the present invention using hardware and a combination
of hardware and software.
[0083] Any of the software components or functions described in
this application, may be implemented as software code to be
executed by a processor using any suitable computer language such
as, for example, Java, C++ or Perl using, for example, conventional
or object-oriented techniques. The software code may be stored as a
series of instructions, or commands on a computer readable medium,
such as a random access memory (RAM), a read only memory (ROM), a
magnetic medium such as a hard-drive or a floppy disk, or an
optical medium such as a CD-ROM. Any such computer readable medium
may reside on or within a single computational apparatus, and may
be present on or within different computational apparatuses within
a system or network.
[0084] A recitation of "a", "an" or "the" is intended to mean "one
or more" unless specifically indicated to the contrary.
[0085] The above description is illustrative and is not
restrictive. Many variations of the disclosure will become apparent
to those skilled in the art upon review of the disclosure. The
scope of the disclosure should, therefore, be determined not with
reference to the above description, but instead should be
determined with reference to the pending claims along with their
full scope or equivalents.
[0086] One or more features from any embodiment may be combined
with one or more features of any other embodiment without departing
from the scope of the disclosure.
[0087] All patents, patent applications, publications, and
descriptions mentioned above are herein incorporated by reference
in their entirety for all purposes. None is admitted to be prior
art.
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