System and method for authorizing a transaction based on dynamic location updates from a user device

A system comprising:

• one or more memories having computer-readable instructions stored thereon;
• and
• one or more processors of one or more servers that execute the computer-readable instructions to:
• receive, from a mobile device associated with a cardholder, current location information of the mobile device, wherein the current location information is received in response to a first criteria set by the one or more servers and sent to the mobile device, wherein upon receiving the current location information, the one or more servers sends a second criteria to the mobile device for receiving future location information from the mobile device, and wherein at least one of the first criteria or the second criteria comprises at least a crossing of a geographical boundary by the mobile device;
• determine a first geographical region by:
• setting a current location of the mobile device determined based on the current location information as a first region center;
• computing a radius from the first region center based upon a minimum distance range, a maximum distance range, and a speed of motion of the mobile device;
• and
• setting the geographical boundary of the first geographical region as a circle having the first region center and the computed radius;
• receive, from a merchant, a payment authorization request for a transaction associated with the cardholder, wherein the payment authorization request comprises merchant information including a location associated with the merchant;
• determine a second geographical region associated with the transaction based on the location associated with the merchant;
• compare the first geographical region with the second geographical region by computing a distance between the first region center of the first geographical region and a second region center of the second geographical region;
• determine that the first geographical region intersects the second geographical region based on the distance between the first region center and the second region center being less than or equal to a threshold;
• and
• approve the payment authorization request upon determining that the first geographical region intersects the second geographical region.