System and method for managing recurring payments

A method for managing a recurring payment between a merchant and a consumer, the consumer having an account with an issuer and the recurring payment being requested by the merchant on the consumer account, the method being carried out by a system comprising:

• a database containing a plurality of database records for a plurality of consumer accounts, each database record for each of the plurality of accounts containing a merchant identifier and a recurring payment amount limit;
• and
• a server in communication with the consumer, a plurality of merchant recurring payment systems, and the database, the server having a processor and memory and the processor being operable by a program of instructions stored in the server memory, wherein the program of instructions, when executed by the processor causes the processor to carry out the method comprising the steps of:
• receiving a request for a recurring payment transaction for the consumer account and for a recurring payment amount;
• determining whether the database contains a database record for the consumer account;
• when the database contains a database record for the consumer account:
• determining whether the recurring payment amount is an amount pre-approved by the consumer;
• when the recurring payment amount is an amount that is not pre-approved by the consumer:
• transmitting a message to the consumer;
• receiving an instruction from the consumer to one of approve and deny the recurring payment transaction;
• and
• when the recurring payment amount is an amount that is pre-approved by the consumer, authorize the recurring payment transaction.

A method for managing a recurring payment between a merchant and a consumer, the consumer having an account with an issuer and the recurring payment being requested by the merchant on the consumer account, the method being carried out by a recurring payment management (RPM) system comprising:

• a RPM system database containing a plurality of database records for a plurality of consumer accounts, including a record for the consumer account, each database record for each of the plurality of consumer accounts containing a merchant identifier and a recurring payment amount limit;
• and
• a server in communication with the consumer, a plurality of merchant recurring payment systems, and the RPM system database, the server having a processor and memory, the processor being operable by a program of instructions stored in the server memory, wherein the program of instructions, when executed by the processor causes the processor to carry out the method comprising the steps of:
• determining when a recurring payment amount in a recurring payment transaction request from the merchant for the consumer is different than the recurring payment amount limit in the RPM system database record for the consumer;
• notifying the consumer that the recurring payment amount in the recurring payment transaction request is different than the recurring payment amount limit in the RPM system database record for the consumer;
• determining whether the consumer one of approves and denies the recurring payment transaction;
• and
• approving or denying the recurring payment transaction request.

A system for managing a recurring payment system, the recurring payment system including a recurring payment instructions database containing a plurality of data structures each containing payment instructions for a recurring payment between and a consumer and a merchant, the system comprising:

• a holding database;
• a processing unit configured to be responsive to change requests transmitted to the recurring payment system, said processing unit being configured such that upon a first change request being transmitted to the recurring payment system requesting to change the payment instructions stored in a first data structure, said processing unit causing removal of said first data structure from said recurring payment instructions database and causing creation of a replicated data structure in said holding database based on replication of said first data structure including said payment instructions of said first data structure;
• and,
• an interface for communicating with a plurality of consumers, said interface being configured to transmit a query to the consumer corresponding to the recurring payment of said first data structure, said query being configured to determine if the consumer approves or disapproves the first change request,
• wherein, said interface being configured to receive one or more responses to the query from the consumer,
• wherein, if the consumer approves the first change request, said processing unit causing the payment instructions of said replicated data structure to be updated based on said first change request, said updated replicated data structure being replicated in the recurring payment instructions database as a final data structure to be used for one or more future recurring payments.