System, Method, and Computer Program Product for Transaction Based Activation

A system for processing transactions, the system comprising at least one server computer including at least one processor, the at least one server computer programmed and/or configured to:

• register, during an enrollment process, an account for a user by associating the user with a communication channel outside of an electronic payment processing network;
• associate the user with an inactivated account identifier;
• receive, via the electronic payment processing network, a transaction request message corresponding to a transaction initiated at a merchant system by the user with a payment device issued with the inactivated account identifier;
• in response to receiving the transaction request message corresponding to the inactivated account identifier, communicate a credential to the user via the communication channel outside of the electronic payment processing network;
• receive, from the user, the credential via the electronic payment processing network;
• authenticate the user based on comparing the credential received via the electronic payment processing network to the credential communicated to the user via the communication channel;
• in response to authenticating the user, activate the account identifier;
• and
• process the transaction with the activated account identifier after the account identifier has been activated.

A computer program product for processing transactions, comprising at least one non-transitory computer-readable medium including program instructions that, when executed by at least one processor, cause the at least one processor to:

• register, during an enrollment process, an account for a user by associating the user with a communication channel outside of an electronic payment processing network;
• associate the user with an inactivated account identifier;
• receive, via the electronic payment processing network, a transaction request message corresponding to a transaction initiated at a merchant system by the user with a payment device issued with the inactivated account identifier;
• in response to receiving the transaction request message corresponding to the inactivated account identifier, communicate a credential to the user via the communication channel outside of the electronic payment processing network;
• receive, from the user, the credential via the electronic payment processing network;
• authenticate the user based on comparing the credential received via the electronic payment processing network to the credential communicated to the user via the communication channel;
• in response to authenticating the user, activate the account identifier;
• and
• process the transaction with the activated account identifier after the account identifier has been activated.