System and method for providing a card transaction authorization fraud warning

US6254000A · kind A · utility

Assignee

• FIRST DATA CORPORATION · US

Inventors

• Robert Degen · Marietta, US
• Philip Mellinger · Ellicott City, US

Key dates

• Filing date: Nov 13, 1998
• Grant date: Jul 3, 2001
• Expiry date: Nov 13, 2018

Classification

• Technology area (CPC G): Physics
• CPC primary: G07F7/1075
• WIPO field: Control
• WIPO sector: Instruments

Abstract

Identifying and notifying credit card issuing banks of an increased risk of credit card fraud. An early warning system assists credit card transaction processors and credit card issuing banks reduce occurrences of credit card fraud. By analyzing transaction data and credit card account information, an authorization decision is made and transmitted to the merchant. The authorization decision either approves or denies the credit card transaction. Conventional authorization systems employ a security code that can be transmitted with an authorization request to limit authorization to transactions including the proper security code. Because some issuing banks do not utilize the security code system, they are exposed to an increased risk of credit card fraud. The early warning system can be used to monitor the authorization decisions that are transmitted by the processor to the merchant. By compiling data on the occurrences of mismatches between an expected security code and the security code provided by the authorization request, the early warning system can notify processors and/or issuing banks that they are exposed to an increased risk of credit card fraud. Additionally, the early wa…