U.S. patent application number 12/177792 was filed with the patent office on 2009-07-09 for pre-paid activation and replenishment on a point-of-sale device.
This patent application is currently assigned to FIRST DATA CORPORATION. Invention is credited to Diane Blankstrom, Howard Caven, Matthew Peterson, David W. Smith.
Application Number | 20090177552 12/177792 |
Document ID | / |
Family ID | 36778951 |
Filed Date | 2009-07-09 |
United States Patent
Application |
20090177552 |
Kind Code |
A1 |
Caven; Howard ; et
al. |
July 9, 2009 |
Pre-Paid Activation and Replenishment on a Point-of-Sale Device
Abstract
A system and method for processing prepaid financial
transactions. The system and method describe the utilization of one
or more remote terminals that are adapted to acquire transaction
information from a user and transmit a first signal indicative of
the transaction information. The remote terminal is further adapted
to receive a second signal indicative of authorizing information
that is delivered to the user. In addition, an authorizing host is
adapted to receive the first signal transmitted by the one or more
remote terminals. In one aspect, the authorizing host routes the
first signal including the transaction information to an exchange
host for approval of the financial transaction, and the exchange
host transmits the second signal including the authorizing
information to the remote terminal via the authorizing host.
Inventors: |
Caven; Howard; (Pearland,
TX) ; Peterson; Matthew; (Houston, TX) ;
Blankstrom; Diane; (Katy, TX) ; Smith; David W.;
(Sugar Land, TX) |
Correspondence
Address: |
SUTHERLAND ASBILL & BRENNAN LLP
999 PEACHTREE STREET, N.E.
ATLANTA
GA
30309
US
|
Assignee: |
FIRST DATA CORPORATION
Englewood
CO
|
Family ID: |
36778951 |
Appl. No.: |
12/177792 |
Filed: |
July 22, 2008 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
|
|
11054348 |
Feb 9, 2005 |
7413117 |
|
|
12177792 |
|
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Current U.S.
Class: |
705/21 ; 705/25;
705/44 |
Current CPC
Class: |
G06Q 20/20 20130101;
G06Q 20/042 20130101; G06Q 20/28 20130101; G06Q 20/4016 20130101;
G06Q 20/202 20130101; G06Q 20/40 20130101 |
Class at
Publication: |
705/21 ; 705/44;
705/25 |
International
Class: |
G06Q 20/00 20060101
G06Q020/00; G06Q 50/00 20060101 G06Q050/00; G06Q 30/00 20060101
G06Q030/00 |
Claims
1. A system for assessing the risk associated with a proffered
promissory payment wherein the system is linked to at least one
prepaid goods or service provider, the system comprising: a
plurality of point of sale devices located within a plurality of
distributed locations, wherein the plurality of point of sale
devices acquire information about proffered promissory payments and
also acquire information about requests for prepaid goods or
services and wherein the plurality of point of sale devices include
a communications interface for communicating information to
individuals within the plurality of distributed locations; and an
authorizing host that is communicatively linked to the plurality of
point of sale devices wherein the authorizing host receives the
information about the proffered promissory payments and assesses
the risk of accepting the proffered promissory payment and wherein
the authorizing host communicates acceptance or decline information
to the point of sale device corresponding to a particular proffered
promissory payment and wherein the authorizing host is adapted to
route a request for a prepaid good or service to the corresponding
goods or services provider and then transmit acceptance or decline
information to the point of sale device originating the request for
prepaid good or service.
2. The system of claim 1, wherein the plurality of transaction
devices acquire financial information about a proffered promissory
payment that include the amount, the account corresponding to the
proffered promissory payment, the account holder and further
transmits information about the merchant to the authorizing host
such that the authorizing host can perform risk assessment on the
proffered promissory payment.
3. The system of claim 1, wherein the plurality of transaction
devices include an input for inputting information wherein the
communications interface comprises a display screen that displays
the acceptance and decline information.
4. The system of claim 1, wherein the plurality of transaction
devices allow the merchant to transmit requests for prepaid goods
or services for a plurality of different prepaid goods and service
providers and receive acceptance and decline information from the
plurality of different prepaid goods and service providers via the
authorizing host.
5. The system of claim 4, wherein the plurality of different
prepaid goods and service providers include cellular telephone
providers, long distance telephone providers, video rental
providers.
6. The system of claim 4, wherein the authorizing host and the
plurality of transaction devices are configured to provide an
authorizing code to the purchaser of the prepaid goods and services
in response to the prepaid good and service provider approving the
request for prepaid goods and services.
7. The system of claim 6, wherein the authorizing code comprises a
PIN number that the purchaser utilizes to activate the prepaid good
or service.
8. A point of sale device adapted to be positioned within a store
for transmitting financial information about proffered promissory
payments to a central authorizing agency, wherein the point of sale
device is further adapted to receive requests for prepaid goods and
services and transmit those requests to the central authorizing
agency for subsequent retransmission to the prepaid goods and
service provider, and wherein the point of sale device is further
adapted to provide approval or decline information about the
proffered promissory payments and the prepaid goods and service
requests to individuals.
9. The device of claim 8, wherein the point of sale device
comprises one or more user inputs for inputting information about
the proffered promissory payment and the requests for prepaid goods
and services into the point of sale device.
10. The device of claim 9, wherein the one or more user inputs
includes a scanner for scanning magnetic information off of
checks.
11. The device of claim 9, wherein the one or more user inputs
includes a keypad for entering data relating to the request for
prepaid goods and services.
12. The device of claim 8, wherein the point of sale device
includes a display for displaying an authorization code to the
purchaser of the pre-paid goods and services.
13. The device of claim 12, wherein the authorization code
comprises a PIN number suitable for activating additional minutes
on a cellular telephone account.
14. A system for processing requests for prepaid goods and service,
the system comprising a risk assessment system having a plurality
of distributed transaction devices located at a plurality of
different locations and a authorizing host that receives
information about proffered promissory payments from the plurality
of distributed transaction devices, wherein the authorizing host
performs a risk assessment on the proffered promissory payments and
sends approval or decline signals to the distributed transaction
device where the proffered promissory payment originated, wherein
the risk assessment system is configured to allow individuals to
send requests for prepaid goods and services via the risk
assessment system to prepaid good and services vendors independent
of the risk assessment system and receive approval information from
the goods and service vendors via the risk assessment system.
15. The system of claim 14, wherein the plurality of transaction
devices acquire financial information about a proffered promissory
payment that include the amount, the account corresponding to the
proffered promissory payment, the account holder and further
transmits information about the merchant to the authorizing host
such that the authorizing host can perform risk assessment on the
proffered promissory payment.
16. The system of claim 14, wherein the plurality of transaction
devices include an input for inputting information and wherein the
communications interface comprises a display screen that displays
the acceptance and decline information.
17. The system of claim 14, wherein the plurality of transaction
devices allow the merchant to transmit requests for prepaid goods
or services for a plurality of different prepaid goods and service
providers and receive acceptance and decline information from the
plurality of different prepaid goods and service providers via the
authorizing host.
18. The system of claim 17, wherein the plurality of different
prepaid goods and service providers include cellular telephone
providers, long distance telephone providers, video rental
providers.
19. The system of claim 17, wherein the authorizing host and the
plurality of transaction devices are configured to provide an
authorizing code to the purchaser of the prepaid goods and services
in response to the prepaid good and service provider approving the
request for prepaid goods and services.
20. The system of claim 19, wherein the authorizing code comprises
a PIN number that the purchaser utilizes to activate the prepaid
good or service.
21-41. (canceled)
Description
BACKGROUND
[0001] 1. Field
[0002] The present teachings relate to financial transactions and,
in particular, to a system and method pertaining to prepaid
activation and replenishment with a point-of-sale device.
[0003] 2. Description of the Related Art
[0004] In general, prepaid products and services, such as prepaid
calling cards, prepaid cellular phone service, prepaid movie
rentals, etc., are popular. Many retail locations offer these
prepaid products and services for sale. Unfortunately, common
prepaid products and services are inconvenient for merchants to
process due to worker inefficiency. For example, a customer
requests prepaid service, such as a purchasing prepaid long
distance minutes, by taking a calling card to the merchant counter
so that the worker can activate the minutes on the calling card.
The merchant is then required to call the service provider and
activate the minutes, which can tie up the phone system and take an
undesirably long time. Typically, the minutes on the calling card
cannot be activated until an authorization code, such as a PIN
number, is given to the worker over the phone and, subsequently,
given to the customer. This process can be inconvenient for the
merchant due to the amount of time the worker has to spend on phone
with the service provider while waiting for authorization. Also,
this may cause some stress for the merchant and worker because
there may be other customers in line impatiently waiting for their
turn.
[0005] While more efficient systems exist for processing
transactions, such as risk analysis and assessment, many of these
systems do not have the capability to handle prepaid services as
prepaid services may have a many different vendors or service
providers for each product or service. One example of a transaction
processing system includes an automated check acceptance service,
such as Telecheck, that uses an existing communication network for
electronic check verification and acceptance. Typically, these
check acceptance services use a dedicated communications network
that automatically transmits information about the promissory
payment to a central approval agency which then automatically
processes the transaction. Subsequently, the vendor receives an
indication whether the transaction is to be accepted or declined.
As such, the check acceptance services does not impose a
substantial burden on the worker in the store as it is a largely
automated process that utilizes a separate communications
network.
[0006] Unfortunately, the use of a dedicated automated network is
generally not financially viable for pre-paid goods and services.
Specifically, it is possible that the store front will have to have
a separate network connection for each prepaid good or service
being sold. This could include a separate network for each
identical goods and services provided by competing suppliers.
Further, the cost of developing the network for the pre-paid
services is generally an expense that pre-paid services have been
unwilling to undertake.
[0007] Hence, there is a need for a more efficient way of
activating prepaid goods and services. To this end, there is a need
for an automated authorization service that can be used with a
variety of different pre-paid goods and service providers which
does not require separate networks for each goods and services
provider.
SUMMARY
[0008] The aforementioned needs are satisfied in one aspect, by a
check acceptance network that has been modified to accept
transactions relating to prepaid goods and services. Check
acceptance agencies includes point of sale devices located in a
plurality of store locations that can transmit data to a risk
approval agency which evaluates the risk of accepting a proffered
promissory payment. In one implementation, the point of sale device
has been modified to permit the transmission of data to the risk
assessment agency relating to a request to purchase a prepaid good
or service.
[0009] In one implementation, the risk assessment agency recognizes
the request for a prepaid good or service transaction and forwards
the request to the appropriate prepaid good or service provider. In
this implementation the risk assessment agency is further adapted
to receive authorization codes from the prepaid good or service
provider and provide these codes back to the originating point of
sale device in the store. In this way, an existing distributed
network can be used to authorize point of sale devices without
requiring an individual at the store to contact the pre-paid good
and service provider directly.
[0010] One aspect of the present teachings relates to a system for
assessing the risk associated with a proffered promissory payment.
The system is linked to at least one prepaid goods or service
provider. The system includes a plurality of point of sale devices
located within a plurality of distributed locations. The plurality
of point of sale devices acquire information about proffered
promissory payments and also acquire information about requests for
prepaid goods or services. The plurality of point of sale devices
include a communications interface for communicating information to
individuals within the plurality of distributed locations. The
system further includes an authorizing host that is communicatively
linked to the plurality of point of sale devices. The authorizing
host receives the information about the proffered promissory
payments and assesses the risk of accepting the proffered
promissory payment. The authorizing host communicates acceptance or
decline information to the point of sale device corresponding to a
particular proffered promissory payment. The authorizing host is
adapted to route a request for a prepaid good or service to the
corresponding goods or services provider and then transmit
acceptance or decline information to the point of sale device
originating the request for prepaid good or service.
[0011] In one embodiment, the plurality of transaction devices
acquire financial information about a proffered promissory payment
that include the amount, the account corresponding to the proffered
promissory payment, the account holder and further transmits
information about the merchant to the authorizing host such that
the authorizing host can perform risk assessment on the proffered
promissory payment.
[0012] In one embodiment, the plurality of transaction devices
include an input for inputting information. The communications
interface includes a display screen that displays the acceptance
and decline information.
[0013] In one embodiment, the plurality of transaction devices
allow the merchant to transmit requests for prepaid goods or
services for a plurality of different prepaid goods and service
providers and receive acceptance and decline information from the
plurality of different prepaid goods and service providers via the
authorizing host. In one embodiment, the plurality of different
prepaid goods and service providers include cellular telephone
providers, long distance telephone providers, video rental
providers. In one embodiment, the authorizing host and the
plurality of transaction devices are configured to provide an
authorizing code to the purchaser of the prepaid goods and services
in response to the prepaid good and service provider approving the
request for prepaid goods and services. In one embodiment, the
authorizing code includes a PIN number that the purchaser utilizes
to activate the prepaid good or service.
[0014] Another aspect of the present teachings relates to a point
of sale device adapted to be positioned within a store for
transmitting financial information about proffered promissory
payments to a central authorizing agency. The point of sale device
is further adapted to receive requests for prepaid goods and
services and transmit those requests to the central authorizing
agency for subsequent retransmission to the prepaid goods and
service provider. The point of sale device is further adapted to
provide approval or decline information about the proffered
promissory payments and the prepaid goods and service requests to
individuals.
[0015] In one embodiment, the point of sale device includes one or
more user inputs for inputting information about the proffered
promissory payment and the requests for prepaid goods and services
into the point of sale device. In one embodiment, the one or more
user inputs includes a scanner for scanning magnetic information
off of checks. In one embodiment, the one or more user inputs
includes a keypad for entering data relating to the request for
prepaid goods and services.
[0016] In one embodiment, the point of sale device includes a
display for displaying an authorization code to the purchaser of
the pre-paid goods and services. In one embodiment, the
authorization code includes a PIN number suitable for activating
additional minutes on a cellular telephone account.
[0017] Yet another aspect of the present teachings relates to a
system for processing requests for prepaid goods and service. The
system includes a risk assessment system having a plurality of
distributed transaction devices located at a plurality of different
locations and an authorizing host that receives information about
proffered promissory payments from the plurality of distributed
transaction devices. The authorizing host performs a risk
assessment on the proffered promissory payments and sends approval
or decline signals to the distributed transaction device where the
proffered promissory payment originated. The risk assessment system
is configured to allow individuals to send requests for prepaid
goods and services via the risk assessment system to prepaid good
and services vendors independent of the risk assessment system and
receive approval information from the goods and service vendors via
the risk assessment system.
[0018] In one embodiment, the plurality of transaction devices
acquire financial information about a proffered promissory payment
that include the amount, the account corresponding to the proffered
promissory payment, the account holder and further transmits
information about the merchant to the authorizing host such that
the authorizing host can perform risk assessment on the proffered
promissory payment.
[0019] In one embodiment, the plurality of transaction devices
include an input for inputting information. The communications
interface includes a display screen that displays the acceptance
and decline information.
[0020] In one embodiment, the plurality of transaction devices
allow the merchant to transmit requests for prepaid goods or
services for a plurality of different prepaid goods and service
providers and receive acceptance and decline information from the
plurality of different prepaid goods and service providers via the
authorizing host. In one embodiment, the plurality of different
prepaid goods and service providers include cellular telephone
providers, long distance telephone providers, video rental
providers. In one embodiment, the authorizing host and the
plurality of transaction devices are configured to provide an
authorizing code to the purchaser of the prepaid goods and services
in response to the prepaid good and service provider approving the
request for prepaid goods and services. In one embodiment, the
authorizing code includes a PIN number that the purchaser utilizes
to activate the prepaid good or service.
[0021] Yet another aspect of the present teachings relates to a
method of processing financial transactions. The method includes
transmitting data about a proffered promissory payment offered at a
remote location to a central authorization host. The method further
includes performing risk assessment on the proffered promissory
payment. The method further includes transmitting an acceptance or
decline of the proffered promissory payment from the central
authorization host to the remote location. The method further
includes transmitting data about a request for a prepaid good and
service from the remote location to a prepaid goods and service
provider via the central authorization host. The method further
includes providing authorization information to the remote location
from the prepaid good and service provider via the central
host.
[0022] In one embodiment, transmitting data about a proffered
promissory payment offered at a remote location to a central
authorization host includes sending data about a check written to a
merchant to the central authorization host. In one embodiment,
performing risk assessment on the proffered promissory payment
includes evaluating the history of the person writing the check,
the amount of the check, the type of transaction and
characteristics of the merchant to determine whether to accept or
decline the check.
[0023] In one embodiment, transmitting data about a request for a
prepaid good and service from the remote location to a prepaid good
and service provider via the central authorization host includes
sending an electronic signal having the request to the central
authorization host identifying a particular good and service
provider, and routing the electronic signal having the request from
the central host to the particular good and service provider. In
one embodiment, providing authorization information to the remote
location from the prepaid good and service provider via the central
host includes transmitting a PIN number from the prepaid good and
service provider to the remote location via the central authorizing
host.
[0024] Yet another aspect of the present teachings relates to a
system for processing financial transactions. The system includes
means for transmitting information including financial data and
requests for prepaid goods and services to and from a plurality of
remote locations. The system further includes means for evaluating
financial data from the means for transmitting information to
ascertain the risk of accepting proffered promissory payments. The
means for evaluating financial data includes means for
retransmitting requests for prepaid goods and services to an
external goods and service provider and means for transmitting
authorization information from the external goods and service
provider to the means for transmitting financial data and requests
for prepaid services.
[0025] In one embodiment, the means for transmitting information
including financial data and requests for prepaid good and services
includes a plurality of point of sale devices located within a
plurality of distributed locations. The plurality of point of sale
devices acquire information about proffered promissory payments and
also acquire information about requests for prepaid goods or
services. The plurality of point of sale device include a
communications interface for communicating information to
individuals within the plurality of distributed locations.
[0026] In one embodiment, the plurality of transaction devices
acquire financial information about a proffered promissory payment
that include the amount, the account corresponding to the proffered
promissory payment, the account holder and further transmits
information about the merchant to the authorizing host such that
the authorizing host can perform risk assessment on the proffered
promissory payment.
[0027] In one embodiment, the plurality of transaction devices
include an input for inputting information. The communications
interface includes a display screen that displays the acceptance
and decline information.
[0028] In one embodiment, the plurality of transaction device
allows the merchant to transmit requests for prepaid goods or
services for a plurality of different prepaid goods and service
providers and receive acceptance and decline information from the
plurality of different prepaid goods and service providers via the
authorizing host.
[0029] In one embodiment, the means for evaluating financial data
from the means for transmitting information to assess the risk of
accepting proffered promissory payment includes an authorizing host
that is communicatively linked to the plurality of point of sale
devices. The authorizing host receives the information about the
proffered promissory payments and assesses the risk of accepting
the proffered promissory payment. The authorizing host communicates
acceptance or decline information to the point of sale device
corresponding to a particular proffered promissory payment. The
authorizing host is adapted to route a request for a prepaid good
or service to the corresponding goods or services provider and then
transmit acceptance or decline information to the point of sale
device originating the request for prepaid good or service. In one
embodiment, the authorizing host and the plurality of transaction
devices are configured to provide an authorizing code to the
purchaser of the prepaid goods and services in response to the
prepaid good and service provider approving the request for prepaid
goods and services. In one embodiment, the authorizing code
includes a PIN number that the purchaser utilizes to activate the
prepaid good or service.
[0030] Yet another aspect of the present teachings relates to a
system for assessing the risk associated with a proffered
promissory payment, where the system is linked to at least one
prepaid goods or service provider. The system includes a plurality
of point of sale devices located within a plurality of distributed
locations. The plurality of point of sale devices acquire
information about a first type of financial transaction and also
acquire information about a second type of financial information.
The plurality of point of sale devices include a communications
interface for communicating information to individuals within the
plurality of distributed locations. The system further includes an
authorizing host that is communicatively linked to the plurality of
point of sale devices. The authorizing host receives the
information about the first type of financial transaction assesses
the risk of associated with the first type of financial
transaction. The authorizing host communicates acceptance or
decline information to the point of sale device corresponding to
first type of financial transaction. The authorizing host is
adapted to route information about the second type of financial
information to a corresponding external provider and then transmit
acceptance or decline information to the point of sale device
originating the second financial transaction.
[0031] In one embodiment, the first type of financial transaction
includes a proffered promissory payment. The second type of
financial transaction includes a request for prepaid goods or
services.
[0032] In one embodiment, the plurality of transaction devices
acquire financial information about a proffered promissory payment
that include the amount, the account corresponding to the proffered
promissory payment, the account holder and further transmits
information about the merchant to the authorizing host such that
the authorizing host can perform risk assessment on the proffered
promissory payment.
[0033] In one embodiment, the plurality of transaction devices
include an input for inputting information. The communications
interface includes a display screen that displays the acceptance
and decline information.
[0034] In on embodiment, the plurality of transaction devices allow
the merchant to transmit requests for prepaid goods or services for
a plurality of different prepaid goods and service providers and
receive acceptance and decline information from the plurality of
different prepaid goods and service providers via the authorizing
host. In one embodiment, the plurality of different prepaid goods
and service providers include cellular telephone providers, long
distance telephone providers, video rental providers. In one
embodiment, the authorizing host and the plurality of transaction
devices are configured to provide an authorizing code to the
purchaser of the prepaid goods and services in response to the
prepaid good and service provider approving the request for prepaid
goods and services. In one embodiment, the authorizing code
includes a PIN number that the purchaser utilizes to activate the
prepaid good or service.
[0035] These and other objects and advantages of the present
teachings will become apparent from the following description taken
in conjunction with the accompanying drawings.
BRIEF DESCRIPTION OF THE DRAWINGS
[0036] FIG. 1 illustrates one embodiment of a system for processing
financial transactions.
[0037] FIG. 2 illustrates one embodiment of the transaction
device.
[0038] FIG. 3A illustrates one embodiment of a transaction
data/information package that can be transmitted from the
transaction device to the authorizing host.
[0039] FIG. 3B illustrates one embodiment of a customer receipt
that can be delivered to a customer from the transaction
device.
[0040] FIG. 4 illustrate one embodiment of a transaction
process.
[0041] FIG. 5A illustrates one embodiment of a prepaid transaction
process.
[0042] FIG. 5B illustrates one embodiment of a direction of flow
for the prepaid transaction process of FIG. 5A.
DETAILED DESCRIPTION OF SOME EMBODIMENTS
[0043] Reference will now be made to the drawings wherein like
numerals refer to like parts throughout. FIGS. 1-5B illustrate
various aspects related to a system and method pertaining to
prepaid activation and replenishment with a point-of-sale (POS)
device.
[0044] FIG. 1 illustrates one embodiment of a system 100 for
processing financial transactions. As illustrated in FIG. 1, the
system 100 comprises one or more transaction devices 104, such as
remote terminals or point of sale (POS) devices, and at least one
authorizing host 108, such as a payment approval or risk assessment
agency. The one or more transaction devices 104 and the authorizing
host 108 communicate in a manner so as to process financial
transactions and manage the risk or level thereof associated with
financial transactions. In addition, the system 100 including the
one or more transaction devices 104 and the authorizing host 108 is
adapted to communicate with one or more prepaid exchange hosts 156
so as to process financial transactions involving prepaid goods and
services, such as prepaid wireless or cellular phone services,
prepaid long distance calling card services, etc.
[0045] In one embodiment, the prepaid exchange host 156 comprises a
prepaid service provider that offers prepaid products and services
for purchase, and requests for these prepaid products and services
can be routed to the prepaid exchange host 156 via the one or more
transaction devices 104 and the authorizing host 108. Additionally,
the one or more transaction devices 104, the authorizing host 108,
and the prepaid exchange host 156 communicate, for example, via a
transaction network 132 comprising, for example, the transceiver
components 128, 154 or various other communication links, such as a
backbone network, a telephone network, an Intranet, the Internet, a
modem, a wireless satellite link, etc. It should be appreciated
that further scope and functionality related to processing and
routing prepaid service requests will be described in greater
detail herein below.
[0046] In one embodiment, the transaction device 104 comprises a
plurality of functional components including a reader component
120, an input component 122, a prepaid component 124, a processor
component 126, a transceiver component 128, and an output component
130. Additionally, the transaction device 104 is utilized by a
merchant to accept promissory payments from customers. In one
aspect, the transaction device 104 comprises a remote terminal or
POS device, such as an Eclipse.TM. device that is described in
greater detail herein below and illustrated in FIG. 2. However, it
should be appreciated by those skilled in the art that the
transaction device 104 may also include various types of payment
devices including a cash register, personal computer, etc. without
departing from the scope of the present teachings. Therefore, it
should also be appreciated by those skilled in the art that one or
more of the components as described herein may be integrated into
the various types of payment devices without departing from the
scope of the present teachings.
[0047] In one embodiment, the reader and input components 120, 122
may include various types of monetary exchange devices, such as
check readers, credit card readers, debit card readers, keyboards
for manual input of account information, or some combination
thereof for the purpose of acquiring transaction information from
customers or merchants at the point of sale. Also, the reader and
input components 120, 122 of the transaction device 104 identifies,
by either magnetic ink character recognition (MICR) or optical
character recognition (OCR), the American Banking Association (ABA)
account information printed on the face of the check draft and
converts the customer's ABA account information to transaction
information, which may include digital signals or digital
signatures. The transaction information may then be transferred
from the transaction device 104 to the authorizing host 108 for
processing.
[0048] In one embodiment, the transaction device 104 such as the
check reader reads the entire MICR line (that includes routing,
account, and check number information) and sends data associated
with the MICR to the authorizing host 108 for processing. Such MICR
data can be formatted in any number of ways. In one embodiment, the
check reader attaches identifying markers to different portions of
the MICR data, and sends the resulting raw MICR data to the host
108. For example, one way to mark the MICR data is to represent the
raw data string of the MICR by a "T," the on-us sign by an "O," the
amount signs by an "A," and the dash by a "D." Such a format of raw
MICR data is sometimes referred to as a raw TOAD data. In one
embodiment, the host 108 receives the TOAD data and parses it to
obtain the various information contained therein.
[0049] In one embodiment, the point of sale device 104 is capable
of providing information about a proffered promissory payment, such
as a check, to the authorizing host 108. The information includes
identification information about the individual proffering the
promissory payment, including the account information, the amount
of the transaction and information identifying the merchant. The
authorizing host 108 can then use this information to assess the
risk of accepting the proffered promissory payment in a known
manner and then provide back to the point of sale device 104 an
acceptance or decline of the transaction. The manner in which the
risk assessment is performed can include any of a number of known
risk assessment strategies.
[0050] In one embodiment, the point of sale device 104 simply
transmits information about the point of sale transaction to the
host 108. The host 108 or some component of the host 108 (for
example, a gateway to the host) is configured to distinguish the
point of sale transaction as a sale transaction or a prepay
transaction. The host 108 can then process the transaction
accordingly. For example, the host 108 may request additional
validation via the point of sale device 104. The host 108 then
processes the transaction and returns a response to the point of
sale device 104. In one embodiment, parameters that drive the
prepay prompting products are stored in and driven by a database
that the host maintains for the merchants.
[0051] As is illustrated in FIG. 2, the authorizing host 108
includes a risk evaluation component 152 that evaluates risk of
accepting the proffered promissory payments provided by the remote
transaction devices 104. The risk evaluation component 152 can
include a risk scoring engine or other risk determining mechanism
that can access separate risk database components 154 in a known
manner so as to be able to determine the risk of accepting the
promissory payment. This allows the authorizing host 108 to accept
or decline the promissory payment and transmit the appropriate
information to the corresponding transaction device 104.
[0052] As will be described in greater detail below, the prepaid
component 124 also acquires transaction and/or financial
information related to prepaid goods and services, prepaid service
requests, and prepaid transaction information, such as prepaid
cellular or wireless phone minutes, calling card minutes, long
distance calling card minutes, and movie rentals including video
and DVD rentals. In one example, the prepaid component 124 may
acquire prepaid information from the customer via input from the
merchant. The merchant may push a button on the transaction device
104 or select a displayed menu item via keyboard entry.
Subsequently, the merchant may input a monetary amount and some
form of customer identity, such as the cell phone number, account
number, calling card serial number, etc., so as to link the
customer, the merchant, the transaction device 104, and the prepaid
exchange host 156 to the prepaid service request. This allows the
authorizing host 108 to identify the type of transaction for proper
processing and routing. In one aspect, the transaction information
is transmitted from the transaction device 104 to the authorizing
host 108 in a data packet with a header or signature that
identifies the prepaid transaction type including other needed
information for processing and routing of the prepaid service
request, which will be described in greater detail herein
below.
[0053] Additionally, the prepaid component 124 may further comprise
a database that stores prepaid transaction information including
merchant information and prepaid exchange host information related
to the merchant's and prepaid exchange host's product offerings
including the above described prepaid services. Advantageously, the
transaction device 104 is adapted to access prepaid transaction
information stored in the prepaid component 124 to verify the
prepaid exchange host's product offerings.
[0054] In one embodiment, the transceiver component 128 of the
transaction device 104 is adapted to transmit data and information
including a transaction data package from the transaction device
104 to the authorizing host 108. The transaction data package may
include financial information about the customer and merchant and
may include either prepaid transaction information about prepaid
services and prepaid service requests or transaction information
about a proffered promissory payment for risk assessment. In
addition, the transceiver component 128 is also adapted to receive
data and information including approval and/or decline data from
the authorizing host 108. The transceiver component 128 may also be
adapted to receive data and information related to prepaid services
and offerings from the prepaid exchange host 156. The output
component 130 may include a display monitor, a printer, or various
other output peripherals generally known in the art. The display
monitor may comprise a video monitor, a liquid crystal display
(LCD), or any other relevant type of display. In one aspect, the
prepaid exchange host's product offerings may be retrieved from the
prepaid component 124 and displayed on the output component 130,
such as the display monitor, for viewing thereof by a user, such as
the merchant and customer.
[0055] In one embodiment, the processor component 126 of the
transaction device 104 is adapted to coordinate the functions of
the transaction device 104. The processor component 126
communicates with the reader and input components 120, 122 so as to
receive transaction information therefrom. In addition, the
processor component 126 communicates with the prepaid component 124
so as to retrieve the prepaid transaction information therefrom.
The processor component 126 also combines or packages risk
assessment transaction information on the prepaid transaction
information, including financial information about the customer and
merchant into a recognizable transaction data package. The
processor component 126 further communicates with the transceiver
component 128 so as to coordinate the transmission of the
transaction data package to the authorizing host 108 and also to
receive validation information from the authorizing host 108.
Moreover, the processor component 126 communicates with the display
component to inform the user of the current status of financial
transactions.
[0056] In one embodiment, the authorizing host 108 comprises a
plurality of functional components including a transceiver
component 148, a prepaid exchange component 150, a risk evaluation
component 152, and one or more risk database components 154. In
general, these components may either be part of a single integrated
system or may be comprised of a distributed system. In one aspect,
the authorizing host 108 is adapted to route prepaid service
requests from the transaction device 104 to the appropriate prepaid
exchange host 156. In addition, the authorizing host 108 is further
adapted to route approval or declines for prepaid goods and
services along with authorization codes from the prepaid exchange
host 156 to the transaction device 104. Advantageously, the
authorizing host 108 facilitates communication between the one or
more transaction devices 104 and the prepaid exchange host 156,
wherein prepaid transaction information including prepaid service
requests and product offerings is routed therebetween via the
authorizing host 108.
[0057] As discussed above, the authorizing host 108 is adapted to
determine and evaluate the risk for financial transactions
involving promissory payments received from the transaction device
104. For example, the risk evaluation component 152 evaluates
financial information, such as the check amount, the ID of the
check writer, the merchant, and the type of merchandise or products
being purchased to determine the risk of accepting the check draft
or other proffered promissory payment. Moreover, the risk or level
thereof is indicative of whether the proffered promissory payment
will be backed by suitable funds in the individual's account when
the merchant submits the check draft, either electronically or
physically, to the customer's bank. The manner in which this risk
assessment is done is substantially the same as existing risk
assessment agencies such as TeleCheck.TM. of Houston, Tex.
[0058] Furthermore, the authorizing host 108 is adapted to interact
and communicate with the one or more transaction devices 104 via
the transceiver components 128, 148, such as a telephonic,
satellite, and/or computer network (internet) interface. In
addition, the authorizing host 108 is further adapted to interact
and communicate with the prepaid exchange hosts 156 in a similar
manner. Also, the authorizing host 108 is adapted to perform risk
analysis for a plurality of merchants on a plurality of different
types of financial transactions. Moreover, the authorizing host 108
further returns an approval or decline decision to the transaction
device 104 via the transceiver components 128, 148, and the
applicable results can be displayed on the output component 130 of
the transaction device 104.
[0059] In one embodiment, the transceiver component 148 of the
authorizing host 108 is adapted to receive data and information
including the transaction data package from each transceiver
component 128 of the one or more transaction devices 104. The
transceiver component 148 may also be adapted to transmit data and
information including approval and/or decline data to the
transaction device 104. Also, the transceiver component 148 may, in
certain implementations, be adapted to transmit data and
information including prepaid transaction information from to the
prepaid exchange host 156. The transceiver component 148 may also
be adapted to receive data and information including prepaid
service offerings from to the prepaid exchange host 156. It should
be appreciated that the transceiver component 148 for the
authorizing host 108 may have similar scope and functionality as
the transceiver component 128 for the transaction device 104.
[0060] FIG. 2 illustrates one embodiment of the transaction device
104. As illustrated in FIG. 2, the transaction device 104 may
comprise an Eclipse.TM. terminal 170 currently available from
Telecheck, Inc. of Houston, Tex. Advantageously, in one aspect of
the present teachings, the Eclipse.TM. terminal 170 can be adapted
so as to integrate the prepaid component 124 therein so that
prepaid service requests can be accepted and sent to the
authorizing host 108 for each financial transaction. It should be
appreciated by those skilled in the art that the remote terminal or
POS device may also include various forms of payment devices
including a cash register, personal computer, etc. without
departing from the scope of the present teachings. Therefore, it
should also be appreciated by those skilled in the art that the
prepaid component 124 as described herein may be integrated into
various types of payment devices without departing from the scope
of the present teachings.
[0061] In one embodiment, the Eclipse.TM. terminal 170 comprises a
POS payment terminal that is adapted to accept various non-cash
payment types including checks, credit cards, debit cards, and
electronic benefit transfer (EBT) transactions. In addition, the
Eclipse.TM. terminal 170 also enables the TeleCheck Electronic
Check Acceptance.RTM. (ECA.RTM.) service and many other TeleCheck
services. Advantageously, TeleCheck and the Eclipse.TM. terminal
combine the benefits of accurate databases with advanced
authorization and payment technology.
[0062] In one embodiment, the Eclipse.TM. terminal 170 comprises a
built-in ink jet receipt printer 172 that reduces counter space,
voids ECA transactions, and endorses paper checks to include
subscriber number and approval code. Additionally, the Eclipse.TM.
terminal 170 comprises a backlit touch-screen display 174 that
provides a user friendly interface and exceptional visibility.
Moreover, the Eclipse.TM. terminal 170 rapidly authorizes financial
transactions so as to speed up checkout. In one embodiment, the
Eclipse.TM. terminal 170 comprises a check reader 176 that enables
the conversion of paper checks to electronic items. In addition,
the Eclipse.TM. terminal 170 comprises a dual-track magnetic strip
reader 178 that automatically collects and inputs data from credit
cards and driver's licenses.
[0063] Furthermore, the Eclipse.TM. terminal 170 comprises a full
reporting capability that provides easy access to transaction and
payment information including sales amounts and various other
details for each payment type. In one embodiment, the Eclipse.TM.
terminal 170 stores up to 500 check and 300 card transactions. In
addition, the Eclipse.TM. terminal 170 comprises check imaging
capability that allows merchants to process most checks without
identification. Also, the Eclipse.TM. terminal 170 comprises a user
friendly keyboard 180, such as a numeric or alphanumeric keyboard,
and a display 182, such as an LCD display or various other displays
generally known in the art. It should be appreciated by those
skilled in the art that the transaction device 104 may comprise
various other generally known POS devices without departing from
the scope of the present teachings.
[0064] In one aspect, the Eclipse.TM. terminal 170 can be adapted
to recognize and accept prepaid service or transaction requests.
For example, the merchant can request a prepaid transaction and
input acquired prepaid information from the customer by a variety
of methods including pushing a button on the Eclipse.TM. terminal
170 that allows data and information to be subsequently inputted
into the Eclipse.TM. terminal 170 via keyboard 180 entry or,
similarly, by selecting a displayed menu item on the display 182 of
the Eclipse.TM. terminal 170 that corresponds to prepaid
transactions or service requests. The merchant can input via the
keyboard 180 some form of customer identity, such as the cell phone
number, account number, calling card serial number, etc., so that
the Eclipse.TM. terminal 170 can to link the customer, the
merchant, the prepaid exchange host 156, and identification of
itself to the prepaid transaction or service request via some form
of recognizable data or information packet for transmission to the
authorizing host 108.
[0065] Advantageously, the data or information packet allows the
authorizing host 108 to identify the prepaid transaction or service
request for proper processing and routing to the requested prepaid
service provider. In addition, the transaction information can be
transmitted from the Eclipse.TM. terminal 170 to the authorizing
host 108 via the data packet with a header or signature that
identifies the prepaid transaction type including the prepaid
service provider, merchant, customer, the Eclipse.TM. terminal 170,
and various other relevant information for processing and routing
of the prepaid service request. Moreover, the Eclipse.TM. terminal
170 can also be adapted to receive responses from the authorizing
host 108, such as authorization codes and any other relevant
information related to the prepaid transaction.
[0066] FIG. 3A illustrates one embodiment of a transaction
data/information package 200 relating to a prepaid
transaction/service request that can be transmitted from the
transaction device 104 including the Eclipse.TM. terminal 170 to
the authorizing host 108. The transaction data package 200 of FIG.
3A is simply exemplary of the information that is provided to the
authorizing host 108 when a prepaid authorization request is being
sent to the authorizing host 108 for assessment, and the format of
the packet can be any of a number of different formats known in the
art. As further illustrated in FIG. 3A, the transaction data
package 200 may comprise financial transaction information 202 and
prepaid transaction information 204, such as information related to
the requested prepaid products/services and prepaid exchange host
identification information.
[0067] Additionally, in one aspect, the transaction information 202
may include one or more information/data components including store
information, merchant information, clerk identification number,
customer information, transaction number, transaction date,
transaction dollar amount, and payment information, such as credit,
check, and/or cash information. The transaction information 202 may
further include a subscriber information code (SIC) that identifies
the merchant and/or transaction device 104. The exact contents of
the transaction information 202 can vary so long as the appropriate
information to identify that a request for a prepaid good or
service is being sought by a particular point of sale device 104
for a particular amount. In some circumstances, the request may
include an account number that is to receive the prepaid service.
For example, if the prepaid good or service is cellular telephone
minutes for a particular account, the telephone number or some
other account number will be provided to the prepaid exchange host
156. The transaction information 202 further includes some
identifier of the prepaid exchange host 156 that corresponds to the
request for a pre-paid good or service such that the authorizing
host 108 can appropriately route the request.
[0068] FIG. 3B illustrates one embodiment of a customer receipt 210
that can be delivered to a customer from the transaction device
104. The information on the receipt is indicative of information
transmitted from the authorizing host 108 to the transaction device
104 after receiving authorization or decline from the pre-paid
transaction host 156. The customer receipt 210 of FIG. 3B is simply
exemplary of the information that is provided to the transaction
device 104 when a financial transaction is approved by the
authorizing host 108, and the format of the customer receipt 210
can be any of a number of different formats. In addition, as
further illustrated in FIG. 3B, the customer receipt 210 may
comprise financial transaction information 212 and prepaid
transaction information 214, such as information related to the
prepaid exchange host identification, transaction device
identification, authorization code/reference number, security code,
personal identification (PIN) number, products/services provided,
pricing information, expiration date/period, and instructions for
activation by the customer.
[0069] The receipt 210 can either be a printed receipt or simply an
electronic communication provided to the purchaser via the display
screen of the remote transaction device 104. It provides an
activation code, e.g., a PIN number, and other information
necessary for the user to be able to activate the prepaid good or
service. In one example, if the prepaid good or service was
cellular telephone minutes, the receipt would include an indication
of the number of minutes as well as an activation code that the
purchaser would enter into their telephone to activate the minutes
to thereby inhibit fraud.
[0070] FIG. 4 illustrates one embodiment of a transaction process
400 implemented by the authorizing host 108. As illustrated in FIG.
4, the transaction process 400, from a start state 402, proceeds to
state 404, wherein the authorizing host 108 receives the
data/information package 200 from at least one of the transaction
devices 104. The data/information packet 200 can comprise either a
request for prepaid authorization or a request for risk assessment
of a financial transaction such as a promissory payment. As
discussed above, the data/information packet 200 can include a
header that is encoded by the point of sale transaction device 104
identifying the transaction type to the authorizing host 108.
[0071] After receiving the packet in state 404, the authorizing
host 108, in decision state 406, extracts the transaction
information including financial information 202 and prepaid
transaction information 204 from the data/information package or
prepaid service request 200 and determines whether the transaction
is a prepaid service request or risk assessment. If the authorizing
host 108 determines that the transaction is a prepaid service
request, then the process 400 advances to state 408. In state 408,
the authorizing host 108 identifies the prepaid exchange host 156
based, at least in part, on the extracted transaction information
from the data package 200.
[0072] Once the identity of the prepaid exchange host 156 is
determined in state 408, then the authorizing host 108, in state
410, can process the transaction by routing the prepaid service
request to the determined prepaid exchange host 156. The prepaid
host 156 can then decide whether to authorize or decline the
purchase of the prepaid goods or service in substantially the same
manner the prepaid host 156 would otherwise make the decision.
Subsequently, the prepaid host 156 transmits an approval or decline
back to the authorizing host 108 in state 412 for the authorizing
host 108 to subsequently transmit in state 414 the authorization or
decline to the point of sale transaction device 104. If the prepaid
host 156 is approving the transaction, it selects an authorization
code, e.g., a PIN number, that is transmitted to the purchaser to
activate the prepaid good or service. Alternatively, if the prepaid
host 156 is declining the transaction, a decline signal is sent
potentially along with an indication of why the transaction was
declined.
[0073] Alternately, in decision state 406, if the authorizing host
108 determines that the transaction is a risk assessment of a
proffered promissory payment, then the authorizing host 108
performs a standard risk assessment of the financial transaction,
in state 420. It should be appreciated by those skilled in the art
that various risk assessment processes and procedures can be
utilized to determine the risk of the financial transaction in
state 420. Subsequently, the authorizing host 108 determines, in
state 422, whether to approve or decline the financial transaction
based, at least in part, on the received transaction information
and the performed risk assessment. The authorizing host 108 then
provides to the transaction device 104 and the merchant an
indication of whether to accept or decline the proffered promissory
payment in a manner known in the art.
[0074] Hence, in this implementation, a risk assessment network can
be used to not only determine the risk of assessing a particular
financial transaction, but also to process prepaid transactions.
Thus, the requirement of a new network be developed and distributed
across multiple store locations is reduced.
[0075] More specifically, the one or more transaction devices 104
and the authorizing host 108 are adapted to interact and
communicate so as to process financial transactions including
prepaid service requests and prepaid financial transactions. In
addition, the authorizing host 108 can also manage risk or level
thereof associated with financial transactions so as to avoid
unacceptable transactions having a moderate to high level of risk.
Also, the system 100 including the one or more transaction devices
104 and the authorizing host 108 can be adapted to communicate with
a prepaid exchange host 156 so as to process and route financial
transactions involving prepaid products and services. Moreover, the
prepaid exchange host 156 offers prepaid services for purchase, and
prepaid service requests can be routed from the one or more
transaction devices 104 to the prepaid exchange host 156 via the
authorizing host 108. Similarly, authorization data and
information, including security codes and PIN numbers, can be
routed from the prepaid exchange host 156 to the one or more
transaction devices 104 via the authorizing host 108.
[0076] FIG. 5A illustrates one embodiment of a specific type of
prepaid transaction process 500. FIG. 5B illustrates one embodiment
of a direction of flow for the prepaid transaction process 500 of
FIG. 5A, including a prepaid service request and authorization code
delivery, and should be utilized in conjunction with FIG. 5A with
the following description. As illustrated in FIG. 5A, the
transaction process 500 from a start state 502 and then proceeds to
state 504, wherein the customer requests a prepaid product or
service, such as, for example, prepaid cellular phone service,
purchasing minutes on a calling card, etc. Next, in state 506, the
merchant accepts the prepaid service request and payment for the
request from the customer. It should be appreciated by those
skilled in the art that the payment may comprise cash, check,
credit, debit, or any other generally known payment methods. It
should also be appreciated by those skilled in the art that state
508 is utilized by the transaction process 500 to input transaction
information related to financial and prepaid information 202, 204
of the prepaid service request 200 as described with reference to
FIG. 3A.
[0077] Following, in state 508, the merchant inputs prepaid
transaction information 200, including financial information 202
and prepaid transaction information 204, into the transaction
device 104, such as Eclipse.TM. terminal 170. Next, in state 510,
transaction information including financial information 202 or
prepaid transaction information 204 are packetized and routed to
the authorizing host 108 for assessment and evaluation thereof. In
state 512, the authorizing host 108 extracts the transaction
information 202, 204 and processes the prepaid service request.
Additionally, in state 512, the authorizing host 108 identifies the
prepaid exchange host 156 based, at least in part, on the extracted
information from the data package 200 and routes the prepaid
service request 200 including the prepaid transaction information
204, to the prepaid exchange host 156.
[0078] In state 514, after processing the prepaid service request,
the prepaid exchange host 156 sends either an authorization, such
as a security code or PIN number, or a decline to the authorizing
host 108. In one aspect, processing by the prepaid exchange host
156 may include identifying which product or service is requested
by the customer, generating an authorization code for the customer,
and adding minutes to a prepaid cell phone or calling card. In
another aspect, processing by the prepaid exchange host 156 may
also include crediting the merchant's account with the amount of
purchase of the product or service requested by the customer,
wherein the merchant's account can be established prior to
processing the transaction. Next, in state 516, after receiving the
authorization code or decline from the prepaid exchange host 156,
the authorizing host 108 then routes the received authorizing code
or information to the transaction device 104 for subsequent
delivery to the merchant and then to the customer in state 518.
After routing, transmission, and delivery of the authorizing code
or information in state 518, the transaction process 500 terminates
in end state 520.
[0079] Advantageously, the system 100 is adapted to establish a
communication link between the one or more transaction devices 104
and the prepaid exchange host 156 via the authorizing host 108 so
that financial transactions involving prepaid products and services
can be processed and routed between the one or more transaction
devices 104 and the prepaid exchange host 156 via the authorizing
host 108. In this way, the one or more transaction devices 104 can
offer prepaid products and services for purchase, and prepaid
service requests can be routed from the one or more transaction
devices 104 to the prepaid exchange host 156 via the authorizing
host 108. Similarly, prepaid authorization data and information,
including security codes and PIN numbers, can be routed from the
prepaid exchange host 156 to the one or more transaction devices
104 via the authorizing host 108.
[0080] Although the following description exemplifies one
embodiment of the present teachings, it should be understood that
various omissions, substitutions, and changes in the form of the
detail of the apparatus, system, and/or method as illustrated as
well as the uses thereof, may be made by those skilled in the art,
without departing from the spirit of the present teachings.
Consequently, the scope of the present teachings should not be
limited to the disclosed embodiments, but should be defined by the
appended claims.
* * * * *