Geolocation Fraud Control via Card-Specific Profile Rules
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Solution Overview
Problem
Current geolocation-based fraud control methods for payment transactions often lead to false denials of authorization, especially when multiple payment cards are associated with a single transaction account, and are inefficient due to complex communications and limitations in using mobile device locations, which can restrict legitimate transactions.
Innovation Solution
A system and method that stores multiple profile rules in a transaction account database, allowing for separate geographic areas for each payment card, enabling valid transactions if the merchant's location matches one of the associated profile rules, thereby reducing false denials and improving user experience.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a single geographic location rule is applied to a transaction account with multiple payment cards, then fraud detection is simplified, but legitimate transactions by multiple cardholders in different locations are incorrectly denied
Solution Approach 1:
The patent segments the geographic location rules by creating separate profile rules for each payment card associated with the transaction account. Each card can have its own authorized geographic areas, allowing cardholder1 to be authorized in location A while cardholder2 is authorized in location B, thereby preventing false denials while maintaining fraud detection accuracy
Solution Approach 2:
The patent applies local quality by assigning different geographic location permissions to different payment cards within the same transaction account. This allows each card to have customized geographic authorization rules tailored to the specific cardholder's travel patterns and usage locations, improving both fraud detection and legitimate transaction authorization
2Reliability
If mobile device location tracking is used for fraud prevention, then fraudulent transactions are detected, but legitimate transactions are denied when the device is unavailable or left behind
Solution Approach 1:
The patent applies preliminary action by pre-configuring multiple geographic profile rules in the system before transactions occur. These rules define authorized locations for each payment card in advance, eliminating the need for real-time mobile device location tracking and ensuring that legitimate transactions are authorized based on pre-approved geographic areas regardless of device availability
Solution Approach 2:
The patent introduces an intermediary layer of profile rules that mediate between fraud prevention requirements and transaction authorization. Instead of directly relying on mobile device location data, the system uses pre-defined geographic profile rules as an intermediary mechanism to authorize or deny transactions, reducing false denials while maintaining security
3Reliability
If geographic location validation is performed for each transaction, then fraud is prevented, but processing time increases due to multiple data transmissions
Solution Approach 1:
The patent reduces processing time by performing preliminary configuration of multiple geographic profile rules during account setup. This pre-configuration eliminates the need for complex real-time location validation computations during transaction processing, as the system can quickly match transaction locations against pre-defined authorized areas, maintaining fraud control while speeding up authorization
Data Source
AI summary
A method for fraud control of a transaction account based on geolocation includes: storing, in an account database, an account profile including data related to a transaction account including a first profile rule associated with a first geographic area and a second profile rule associated with a second geographic area different from the first; receiving an authorization request for a first transaction involving a first payment card, the request including a first geographic location; receiving an authorization request for a second transaction involving a second payment card, the request including a second geographic location; determining validation for each authorization request, wherein each is determined to be valid if the geographic location is in a geographic area corresponding to the first geographic area or the second geographic area; and transmitting the determination of validation for each authorization request to a payment network for processing of the associated payment transaction.