US 10,504,093 B1Granted

Fraud protection based on presence indication

AssigneeSquare, Inc.

InventorsJohn Lewis, Stephen Karl Touset

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Abstract

Introduced here is a technology that enables fraud detection and protection in financial transactions using a communication signal identification mechanism. The technology eliminates the uncertainties as to the authenticity of a payment card and/or a customer involved in a transaction. In at least some embodiments, methods and systems are disclosed for facilitating communication with one or more personal computing devices physically present at a merchant's POS device to establish customer presence and/or card presence. The personal computing devices can include a smartphone, a wearable electronic device, or any electronic device capable of communication with other devices. The personal computing devices can also include a payment card in the form of a smartcard with embedded BLE or any other smart chip (e.g., GPS, Wi-Fi, 4G, etc.). In some embodiments, methods and systems are disclosed for applying context-based restrictions on the payment card to assist in protection against fraud.

Claims24

Dependent claims

A method comprising:

receiving, by a payment service system, from a merchant computing device of a merchant, an indication of an initiation of a financial transaction between the merchant and a customer, the indication including transaction information associated with the financial transaction, the financial transaction initiated on the merchant computing device by a use of a payment card of the customer at the merchant computing device;
receiving, by the payment service system, from the merchant computing device, a set of signals broadcast from a personal computing device associated with the customer of the financial transaction and received by the merchant computing device;
retrieving, by the payment service system, from a database associated with the payment service system, a previous set of signals broadcast from the personal computing device associated with the customer;
determining, by the payment service system, a previous set of parameters associated with the previous set of signals;
determining, by the payment service system, a set of parameters associated with the received set of signals;
determining, by the payment service system, a presence indication based on comparing the set of parameters associated with the received set of signals to the previous set of parameters associated with the previous set of signals, the presence indication indicative of the customer being physically present at or near a geographical location of the merchant computing device;
and
performing, by the payment service system, an action for processing the financial transaction based on the presence indication, the action comprising at least one of:
transmitting a fraud notification to a mobile device of the customer, or
transmitting a fraud notification to the merchant computing device.

7 more elements

A computer-readable storage medium storing computer executable instructions, comprising:

instructions for receiving an indication of an initiation of a financial transaction between a merchant and a customer, the indication including transaction information associated with the financial transaction, the financial transaction initiated on a merchant computing device of the merchant by a use of a payment card of the customer at the merchant computing device;
instructions for receiving, from the merchant computing device, a set of signals broadcast from a personal computing device associated with the customer of the financial transaction and received by the merchant computing device;
instructions for retrieving, from a database, a previous set of signals broadcast from the personal computing device associated with the customer;
instructions for determining a previous set of parameters associated with the previous set of signals;
instructions for determining a set of parameters associated with the received set of signals;
instructions for determining a presence indication based on comparing the set of parameters associated with the received set of signals to the previous set of parameters associated with the previous set of signals, the presence indication indicative of the customer being physically present at or near a geographical location of the merchant computing device;
and
instructions for performing an action for processing the financial transaction based on the presence indication, the action comprising at least one of:
transmitting a fraud notification to a mobile device of the customer, or
transmitting a fraud notification to the merchant computing device.

7 more elements

A system comprising:

one or more processors;
one or more computer-readable media storing instructions that, when executed by the one or more processors, program the one or more processors to perform operations comprising:
receiving, from a merchant computing device of a merchant, an indication of an initiation of a financial transaction between the merchant and a customer, the indication including transaction information associated with the financial transaction, the financial transaction initiated on the merchant computing device by a use of a payment card of the customer at the merchant computing device;
receiving, from the merchant computing device, a set of signals emitted by a personal computing device associated with the customer of the financial transaction and received by the merchant computing device;
retrieving, from a database associated with the payment service system, a previous set of signals broadcast from the personal computing device associated with the customer;
determining a previous set of parameters associated with the previous set of signals;
determining a set of parameters associated with the received set of signals;
determining a presence indication based on comparing the set of parameters associated with the received set of signals to the previous set of parameters associated with the previous set of signals, the presence indication indicative of the customer being physically present at or near a geographical location of the merchant computing device;
and
performing an action for processing the financial transaction based on the presence indication, the action comprising at least one of:
transmitting a fraud notification to a mobile device of the customer, or
transmitting a fraud notification to the merchant computing device.

9 more elements

Dependencies are inferred from the claim text.

Facts

Application: 15/393,685Filed 29 Dec 2016 · continuation
Priority: 6 May 2014
Granted: 10 Dec 2019
Term ends: Not estimatedThe source records don’t support an estimate.

Classification8 codes

G06Q 20/327
Using wireless devices: short range or proximity payments by means of M-devices
G06Q 20/02
Payment architectures, schemes or protocols: involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
G06Q 20/20
Payment architectures: point-of-sale [POS] network systems
G06Q 20/204
Point-of-sale [POS] network systems: comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit

Family

Application14/271,368Parent of this continuation · filed 6 May 2014
US 9,569,767 B1Parent of this continuation
US 10,504,093 B1This patent

From the US filing history. Foreign family members aren’t listed.

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