System, method and computer program product for authorizing transactions using enhanced authorization data

Abstract

The present invention provides systems, methods and computer program products for authorizing transactions based on, at least in part on, enhanced authorization data. In one embodiment, enhanced authorization data is received in a request for authorization to accept a transaction instrument as payment. Examples of enhanced authorization data include an automatic number identification, an information identifier, an email address, a contact telephone number, a ship-to-name, ship-to-address, an Internet Protocol address, and a seller identification. A risk analysis is performed based, at least in part, on the enhanced authorization data to determine the risk of the request being associated with a fraudulent purchase. The risk may be calculated by comparing the enhanced authorization data with information stored about the transaction instrument or with historical transaction information. Furthermore, the velocity of transactions associated with the enhanced authorization data may be measured in calculating the risk.

Description

CROSS REFERENCE TO RELATED APPLICATIONS [0001] This application is a continuation-in-part of Patent Cooperation Treaty Application No. PCT / US05 / 004135, filed Feb. 9, 2005, and titled “System And Method Using Enhanced Authorization Data To Reduce Travel-Related Transaction Fraud,” which claims the benefit of U.S. Provisional Patent Application Ser. No. 60 / 543,044, filed Feb. 9, 2004, and titled “Enhanced Airline Authorization Data For Fraud Control,” which are all hereby incorporated by reference herein in their entireties.BACKGROUND OF THE INVENTION [0002] 1. Field of the Invention [0003] The present invention generally relates to fraud detection and more particularly to reducing fraudulent transactions. [0004] 2. Related Art [0005] Credit cards, charge cards, and other transaction instruments are commonly accepted today as a form of payment under a variety of circumstances. A transaction instrument may be used to make a purchase in-person, for example, at a retail store, a restaura...

AI Technical Summary

Benefits of technology

[0017] An advantage of the present invention is that a more sophisticated risk analysis may be performed since enhanced authorization data provides additional information that can be used to distinguish between requests for genuine transactions and fraudulent transactions. Furthermore, since enhanced authorization data is typically captured by a merchant during the ordinary course of processing a purchase, the purchaser is not burdened with providing information other than those the purchaser is ordinarily asked to provide. Another advantage of the present invention is that since enhanced authorization data is independent of transaction account information, it may be used to correlate fraudulent activity patterns experienced across multiple card members and merchants.

[0018] Further features and advantages of the present invention as well as the structure and operation of various embodiments of the present invention are described in detail below with reference to the accompanying drawings.

Problems solved by technology

Although transaction instruments provide a convenient means for making payments, they are vulnerable to fraud.

A transaction instrument may be copied, or information about a transaction instrument necessary to make purchases may be stolen.

While the card member and card issuer are unsuspecting of any fraudulent activity, numerous fraudulent purchases may be charged to the card member's transaction instrument.

If the risks are determined to be, unacceptable, the card issuer may deny the merchant's request to receive the transaction instrument as payment.

For example, if a transaction instrument is reported as being lost, risk analysis may indicate an unacceptable level of risk for any further purchases involving the transaction instrument.

Although conventional risk analysis reduces incidences of fraud, its ability to distinguish genuine and fraudulent purchases is limited because only a limited amount of information about a purchase is provided to a card issuer from the merchant.

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