System, method and computer program product for POS-based capture of reference magnetic signatures

A system for associating a reference magnetic signature with a transaction instrument comprising:

• a processor;
• and
• a memory in communication with the processor, wherein the memory stores a plurality of processing instructions for directing the processor to:
• retrieve at least one magnetic signature associated with the transaction instrument, each retrieved magnetic signature being associated with a separate transaction, when a reference magnetic signature has not previously been assigned for the transaction instrument;
• determine whether the transaction associated with each retrieved magnetic signature is an authorized transaction;
• select a new reference magnetic signature for the transaction instrument based on at least one magnetic signature associated with an authorized transaction;
• and
• store the new reference magnetic signature;
• whereby the new reference magnetic signature may be used as a reference magnetic signature for subsequent transactions.

A computer program product comprising a computer usable medium having control logic stored therein for causing a computer to associate a reference magnetic signature with a transaction instrument, said control logic comprising:

• first computer readable program code means for causing the computer to retrieve at least one magnetic signature associated with the transaction instrument, each retrieved magnetic signature being associated with a separate transaction, when a reference magnetic signature has not previously been assigned for the transaction instrument;
• second computer readable program code means for causing the computer to determine whether the transaction associated with each retrieved magnetic signature is an authorized transaction;
• third computer readable program code means for causing the computer to select a new reference magnetic signature for the transaction instrument based on at least one magnetic signature associated with an authorized transaction;
• and
• fourth computer readable program code means for causing the computer to store the new magnetic signature;
• whereby the new reference magnetic signature may be used as a reference magnetic signature for subsequent transactions.