Systems and methods for selectively delaying financial transactions

a technology of financial transactions and selective delay, applied in the field of financial transactions, can solve problems such as merchants being susceptible to risk, merchants losing revenue, and sometimes not paying the funds promised by check drafts

a technology of financial transactions and selective delay, applied in the field of financial transactions, can solve problems such as merchants being susceptible to risk, merchants losing revenue, and sometimes not paying the funds promised by check drafts

US20080021803A1Inactive Publication Date: 2008-01-24FIRST DATA
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  • Systems and methods for selectively delaying financial transactions
  • Systems and methods for selectively delaying financial transactions
  • Systems and methods for selectively delaying financial transactions

Examples

Experimental program
Comparison scheme
Effect test

Embodiment Construction

[0031] Reference will now be made to the drawings wherein like numerals refer to like parts throughout. FIG. 1 illustrates one embodiment of a financial transaction involving a promissory check draft. In this particular embodiment, a customer 100 provides the check draft 102 to a merchant 106 or service entity in exchange for vendibles 104, such as a service or merchandise. The check draft 102 may be accepted and deposited into a merchant bank 112 without receiving any external authorization as indicated by path 120.

[0032] In one aspect, the check draft 102 is electronically transferred through a clearing process, wherein the merchant bank 112 transfers the check draft 102 to a federal clearing house (FCH) 114 as indicated by path 122. In turn, the federal clearing house 114 transfers the check draft 102 to the check issuing bank 116 as indicated by path 124. In one aspect, if the check draft 102 is determined to be valid by the check issuing bank 116, then the check “clears” and t...

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Abstract

A risk system that performs a risk assessment of a financial transaction to obtain an initial risk score. Based on the initial risk score, the risk system performs at least one post-score assessment by selectively utilizing various scoring engines and databases. The at least one post-score risk assessment may include delaying the shipment of merchandise in financial transactions that are of marginal risk to thereby provide a check acceptance service with more time to further evaluate the financial transaction risks. Thus, marginally risky financial transactions that are likely to benefit the check acceptance service and a merchant that subscribes to the check acceptance service are authorized for increased profitability and customer satisfaction. Furthermore, the post-score risk assessment may approve or authorize financial transactions that generally fail standard risk assessments that use a cut-off risk score to divide the financial transactions into either approved or declined groups. As a result, the post-score assessment process efficiently re-evaluates some of the borderline exception cases for the purpose of securing beneficial financial transactions.

Description

PRIORITY APPLICATION [0001] This application is a continuation of U.S. application Ser. No. 10 / 041,954, titled “Systems and Methods for Selectively Delaying Financial Transactions”, filed on Jan. 7, 2002, the entirety of which is incorporated herein by reference.BACKGROUND OF THE INVENTION [0002] 1. Field of the Invention [0003] The present invention relates to financial transactions and, in particular, to a system and method of risk assessment, whereby provisional authorization may be granted to a merchant for the selective delay of a financial transaction. [0004] 2. Description of the Related Art [0005] A typical financial transaction involves a form of payment in exchange for vendibles, such as services and / or merchandise, at a point of sale. In most instances, a customer provides the form of payment, such as a promissory check draft, to a merchant in exchange for the vendibles. The check draft is often regarded as a promissory payment that instructs the customer's bank to pay th...

Claims

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Application Information

Patent Timeline
24 Jan 2008
Publication
US20080021803A1
IPC
G06Q40/00
CPC
G06Q20/04; G06Q20/042; G06Q40/04; G06Q40/00; G06Q40/025; G06Q20/40; G06Q40/03
Inventors
AHLES, DANIEL; TEMPLETON, RANDY