# US 2019/0318339 A1 · System and Method for Processing Microtransactions

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- Number: US 2019/0318339 A1
- Document ID: US20190318339A1
- Status: Published application
- Kind: A1
- Application number: 13/775,933
- Filed: 2013-02-25
- Published: 2019-10-17
- Earliest claimed: 2003-01-10
- Assignees: JPMorgan Chase Bank, N.A.
- Applicants: JPMorgan Chase Bank, N.A.
- Inventors: Mark Sheehan; William Wallace; Lee Knackstedt
- Web page: https://patentgrep.com/patent/US20190318339A1

## CPC

- G06Q 20/02: involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
- G06Q 20/10: specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
- G06Q 20/12: specially adapted for electronic shopping systems
- G06Q 20/24: Credit schemes, i.e. "pay after"
- G06Q 20/29: {characterised by micropayments}
- G06Q 20/382: {insuring higher security of transaction}
- G06Q 20/40: Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
- G06Q 20/405: {Establishing or using transaction specific rules}
- G06Q 30/06: Buying, selling or leasing transactions
- G06Q 40/03: Credit; Loans; Processing thereof
- G06Q 50/188: {Electronic negotiation}
- G06Q: INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR

## Abstract

Methods and systems of the invention provide a variety of techniques for processing microtransactions. In accordance with the invention, the method starts with a customer initiating a purchase through interaction with a merchant. The purchase is associated with purchase information, which includes the particulars of the purchase, such as the purchase price. In the purchase, the customer uses a transaction account, obtained from a payment enabler. The purchase is classified as a microtransaction, if the purchase price is below a predetermined monetary amount. Thereafter, the purchase information is forwarded for processing based on the classifying, i.e., either as a regular transaction or as a microtransaction. Then, upon receipt of the purchase information by an appropriate recipient, such as an interchange entity or an alternate interchange entity, the purchase information is processed to effect the microtransaction, if so classified, between the customer and the merchant.

## Claims

### Claim 1

A computer-implemented method for processing microtransactions, the method comprising:
receiving, by a processor, a request for an attempted credit card transaction initiated by a customer interacting with a merchant, the request comprising identifying information associated with a funding account or a payment device and a transaction amount, the transaction account provided by a payment enabler;
accessing a stored microtransaction threshold amount;
verifying, by the processor, whether the transaction amount is below the microtransaction threshold amount;
and
when the transaction amount is below the microtransaction threshold amount, causing the attempted transaction to be processed as a microtransaction according to a processing protocol for microtransactions by aggregating the microtransaction with at least one other microtransaction to form an aggregated transaction, and wherein the processing protocol is configured to determine whether the aggregated transaction is to be authorized or declined and to route information associated with the attempted transaction to a first interchange entity for authorization.

### Claim at position 2

-5. (canceled)

### Claim 6 (depends on 1)

The method according to claim 1, wherein the first interchange entity processes the aggregated transaction as a single transaction.

### Claim 7

(canceled)

### Claim 8 (depends on 1)

The method according to claim 1, wherein the step of causing the attempted transaction to be processed as a microtransaction further comprises:
identifying, by the processor, an authorization requirement for the funding account or payment device, and
if the authorization requirement indicates no authorization needed, approving the attempted transaction without submitting the transaction request for further authorization,
otherwise, submitting the transaction request for authorization according to a second processing protocol for non-microtransactions.

### Claim 9 (depends on 1)

The method of claim 1, further comprising:
receiving one or more updates about an account status or creditworthiness of the customer.

### Claim 10 (depends on 1)

The method of claim 1, wherein the merchant assumes a risk of non-payment of an approved microtransaction of the customer if the merchant fails to communicate with the payment enabler to receive a timely update about an account status or creditworthiness of the customer.

### Claim 11 (depends on 1)

The method according to claim 1, wherein the step of causing the attempted transaction to be processed as a microtransaction further comprises:
electronically routing the transaction request to a second interchange entity, wherein the second interchange entity processes the aggregated transaction by debiting or crediting at least a portion of the transaction amount to a pool of funds that has been established for microtransactions.

### Claim 12 (depends on 1)

The method of claim 1, wherein a pool of funds is established for microtransactions associated with said customer only.

### Claim 13 (depends on 1)

The method of claim 1, wherein a pool of funds is established for microtransactions associated with said customer and one or more other customers.

### Claim 14 (depends on 1)

The method of claim 1, wherein the microtransaction threshold amount is at least $20.

### Claim 15 (depends on 1)

The method of claim 1, wherein the microtransaction threshold amount is at least $15.

### Claim 16 (depends on 1)

The method of claim 1, wherein the customer interacting with the merchant is performed over the Internet.

### Claim 17 (depends on 1)

The method of claim 1, wherein the customer interacting with the merchant is performed over a telephone network or a private network.

### Claim 18 (depends on 1)

The method of claim 1, wherein the customer interacting with the merchant is performed in person.

### Claim 19 (depends on 1)

The method of claim 1, wherein the payment device is selected from a group consisting of: a credit card, a debit card, a stored value card, a smart card, and any other physical payment card or device.

### Claim 20

A non-transitory computer readable medium for processing microtransactions, the computer readable medium comprising instructions for causing a computer processor to perform the following:
receiving a request for an attempted credit card transaction initiated by a customer interacting with a merchant, the request comprising identifying information associated with a funding account or a payment device and a transaction amount, the transaction account provided by a payment enabler;
accessing a stored microtransaction threshold amount;
verifying whether the transaction amount is below the microtransaction threshold amount;
when the transaction amount is below the microtransaction threshold amount, causing the attempted transaction to be processed as a microtransaction according to a processing protocol by aggregating the microtransaction with at least one other microtransaction to form an
aggregated transaction, and wherein the processing protocol is configured to determine whether the aggregated transaction is to be authorized or declined and to route information associated with the attempted transaction to a first interchange entity for authorization.

### Claim 21

A computer-implemented system for processing microtransactions, the system comprising:
a processor in communication with one or more storage devices via a communication interface for accessing a microtransaction threshold amount and a processing protocol for microtransactions stored on the one or more storage devices, the processor configured to perform the following:
receiving a request for an attempted credit card transaction initiated by a customer interacting with a merchant, the request comprising identifying information associated with a funding account or a payment device and a transaction amount, the transaction account provided by a payment enabler;
accessing the microtransaction threshold amount;
verifying whether the transaction amount is below the microtransaction threshold amount;
when the transaction amount is below the microtransaction threshold amount, causing the attempted transaction to be processed as a microtransaction according to the processing protocol by aggregating the microtransaction with at least one other microtransaction to form an
aggregated transaction, and wherein the processing protocol is configured to determine whether the aggregated transaction is to be authorized or declined and to route information associated with the attempted transaction to a first interchange entity for authorization.

### Claim 22 (depends on 21)

The computer-implemented system of claim 21, wherein verifying whether the transaction amount is below the microtransaction threshold amount identifies that the transaction amount is above the microtransaction threshold amount, wherein the processor is configured to cause the attempted transaction to be processed as a non-microtransaction according to a second processing protocol for non-microtransactions, and wherein the second processing protocol is configured to determine whether the non-microtransaction is to be authorized or declined and to route information associated with the attempted transaction to a second interchange entity separate and different from the first interchange entity for authorization.

### Claim 23 (depends on 22)

The computer-implemented system of claim 22, wherein the microtransaction threshold amount, the processing protocol, and the second processing protocol are accessed via the same storage device.

### Claim 24 (depends on 1)

The method of claim 1, wherein verifying whether the transaction amount is below the microtransaction threshold amount identifies that the transaction amount is above the microtransaction threshold amount, wherein the processor is configured to cause the attempted transaction to be processed as a non-microtransaction according to a second processing protocol for non-microtransactions, and wherein the second processing protocol is configured to determine whether the non-microtransaction is to be authorized or declined and to route information associated with the attempted transaction to a second interchange entity separate and different from the first interchange entity for authorization.

### Claim 25 (depends on 20)

The non-transitory computer readable medium of claim 20, wherein verifying whether the transaction amount is below the microtransaction threshold amount identifies that the transaction amount is above the microtransaction threshold amount, wherein the computer processor is configured to cause the attempted transaction to be processed as a non-microtransaction according to a second processing protocol for non-microtransactions, and wherein the second processing protocol is configured to determine whether the non-microtransaction is to be authorized or declined and to route information associated with the attempted transaction to a second interchange entity separate and different from the first interchange entity for authorization.