System and method using predicted consumer behavior to reduce use of transaction risk analysis and transaction denials
AssigneeVisa International Service Association
InventorsPatrick L. Faith, Zhongxiao Jiang, Kevin Paul Siegel, Theodore D. Harris
Life of this patent
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Abstract
An apparatus and method for processing a transaction authorization request to reduce the need for a transaction risk assessment as part of the authorization process. The invention reduces both the data processing burden on the payment processor and the number of transactions for which authorization is denied. In some embodiments, the invention uses predictive or behavior modeling techniques to generate predictions of the transactions the consumer may engage in. If the consumer does engage in a predicted transaction, then a risk analysis process is not performed for that transaction.
Claims20
An apparatus for determining whether to perform a transaction risk assessment on a transaction, comprising:
- a processor configured to execute a set of instructions;
- a memory coupled to the processor for storing the set of instructions;
- and
- the set of instructions stored in the memory, wherein when executed by the processor the instructions implement a process to:
- process consumer data to generate a set of one or more predicted transactions, the predicted transactions being those the consumer may be expected to engage in;
- receive a request to authorize the transaction;
- obtain a location of the consumer;
- reduce the set of predicted transactions to only the predicted transactions within a radius of the location of the consumer;
- compare the transaction to the set of predicted transactions;
- and
- if one or more characteristics of the transaction are substantially the same as one or more characteristics of a transaction in the set of predicted transactions, then not perform a transaction risk assessment, and if one or more characteristics of the transaction are not substantially the same as one or more characteristics of a transaction in the set of predicted transactions, then perform the transaction risk assessment.
A method of determining whether to perform a transaction risk assessment on a transaction, comprising:
- processing consumer data using an electronic computing device to generate a set of one or more predicted transactions, the predicted transactions being those the consumer may be expected to engage in;
- receiving a request to authorize the transaction;
- obtaining a location of the consumer;
- reducing the set of predicted transactions to only the predicted transactions within a radius of the location of the consumer;
- comparing the transaction to the set of predicted transactions;
- and
- if one or more characteristics of the transaction are substantially the same as one or more characteristics of a transaction in the set of predicted transactions, then not performing a transaction risk assessment, and if one or more characteristics of the transaction are not substantially the same as one or more characteristics of a transaction in the set of predicted transactions, then performing a transaction risk assessment.
Dependencies are inferred from the claim text.