Reducing risks related to check verification
AssigneeAmerican Express Travel Related Services Company, Inc.
InventorsKathleen Haggerty, Benedict O. Okoh, Chao M. Yuan
Life of this patent
Estimating the term…
Abstract
Share of Wallet (“SOW”) is a modeling approach that utilizes various data sources to provide scores that describe a consumers spending capability, tradeline history including balance transfers, and balance information. Share of wallet scores can be used as a parameter for determining whether or not to accept and/or guarantee a check. The share of wallet can be used to calculate a risk value of a customer. For example, the scores can weight one or more factors related to the check writer and differentiate between a low-risk customer and a high-risk customer.
Claims18
A computer-based method comprising:
- modeling, by a computer-based system for reducing merchant risks comprising a processor and a tangible, non-transitory memory, consumer spending patterns using individual and aggregate consumer data, including tradeline data, internal customer data, and consumer panel data to produce a model of consumer spending patterns, wherein the computer-based system comprises a processor and a tangible, non-transitory memory, and wherein the model is stored in the memory of the computer-based system;
- estimating, by the computer-based system, a credit-related characteristic of the customer based on tradeline data of the customer, identified balance transfers of the customer, and the model of consumer spending patterns
- offsetting, by the computer-based system, the previous balance transfers from the
- estimated credit-related characteristic;
- determining, by the computer-based system, a risk value of the customer based on the estimated credit-related characteristic;
- and
- making a check acceptance decision based on the determined risk value.
An apparatus comprising:
- a processor for reducing merchant risks;
- and
- a tangible, non-transitory memory in communication with the processor, wherein the memory stores a plurality of processing instructions for directing the processor to:
- model consumer spending patterns using individual and aggregate consumer data, including tradeline data, internal customer data, and consumer panel data;
- estimate a credit-related characteristic of the customer based on tradeline data of the customer, identified balance transfers of the customer, and the model of consumer spending patterns, wherein the credit-related characteristic comprises a spend amount associated with the individual consumer;
- offset the previous balance transfers from the estimated credit-related characteristic;
- determine a risk value of the customer based on the estimated credit-related characteristic;
- and
- make a check acceptance decision based on the determined risk value.
An article of manufacture including a computer readable medium having instructions stored thereon that, in response to execution by a computing device for reducing merchant risks, cause the computing device to perform operations comprising:
- modeling consumer spending patterns using individual and aggregate consumer data including tradeline data, internal customer data, and consumer panel data;
- estimating a credit-related characteristic of the customer based on tradeline data of the customer, identified balance transfers of the customer, and the model of consumer spending patterns, wherein the credit-related characteristic comprises a spend amount associated with the individual consumer;
- offsetting the previous balance transfers from the estimated credit-related characteristic;
- determining a risk value of the customer based on the estimated credit-related characteristic;
- and
- making a check acceptance decision based on the determined risk value.
Dependencies are inferred from the claim text.