Method and system of identifying and reducing scalping using distributed ledgers

1 . A method for preventing an unauthorized transaction indicative of scalping, comprising:

deploying a respective on-site interface processor at each merchant of a plurality of merchants, wherein each on-site interface processor is configured to interface with a blockchain network;

receiving, by a first on-site interface processor of a first merchant system, transaction data for a first payment transaction between a consumer and the first merchant system, the transaction data including at least one or more product identifiers associated with one or more products purchased in the first payment transaction and consumer identification data associated with the consumer;

updating, by the first on-site interface processor of the first merchant system, a consumer profile associated with the consumer, stored on a blockchain in the blockchain network, by generating a new block for the blockchain that includes a blockchain data entry including at least the one or more product identifiers;

receiving, by a second on-site interface processor of a second merchant system, a transaction message for a second payment transaction between the consumer and the second merchant system, different from said first merchant system, wherein the transaction message includes at least one product identifier included in the one or more product identifiers and at least one consumer data value, wherein the at least one consumer data value is included in the consumer profile;

interfacing with the blockchain network and determining, by the second on-site processor of the second merchant system, a suspicion score for the consumer profile associated with the consumer, stored in the blockchain of the blockchain network; and

utilizing a self-executable smart contract, automatically declining, by the second on-site processor of the second merchant system, the second payment transaction when the suspicion score is above a predetermined threshold value without submitting a payment authorization request for the second payment transaction to a payment network.

2 . The method of claim 1 , wherein the transaction message is transmitted via payment rails.

3 . The method of claim 1 , wherein the transaction message is formatted according to one or more standards.

4 . The method of claim 1 , further comprising:

transmitting, by the second on-site processor of the second merchant system, an authorization response message for the second payment transaction to an external computing system.

5 . The method of claim 1 , wherein the suspicion score is indicative of a likelihood of the second payment transaction purchasing a product associated with the one or more product identifiers for scalping.

6 . The method of claim 1 , wherein the suspicion score is based on a number of product identifiers stored in the consumer profile compared to a predetermined value.

7 . The method of claim 1 , wherein a third-party system redacts potentially personally identifiable information in the transaction data for the first payment transaction and the transaction message for the second payment transaction.

8 . A system for preventing an unauthorized transaction indicative of scalping, comprising:

a blockchain network;

a payment network; and

a plurality of merchant systems including at least a first merchant system and a second merchant system, wherein each system of the plurality of merchant systems includes a respective on-site interface processor configured to interface with the blockchain network, wherein

the first merchant system includes a first on-site processor configured to

receive a first payment transaction between a consumer and the first merchant system, the transaction data including at least one or more product identifiers associated with one or more products purchased in the first payment transaction and consumer identification data associated with the consumer, and

update a consumer profile associated with the consumer, stored on a blockchain in the blockchain network, by generating a new block for the blockchain that includes a blockchain data entry including at least the one or more product identifiers, and

the second merchant system includes second first on-site processor configured to

receive a transaction message for a second payment transaction between the consumer and the second merchant system, different from said first merchant system, wherein the transaction message includes at least one product identifier included in the one or more product identifiers and at least one consumer data value, and wherein the at least one consumer data value is included in the consumer profile,

interface with the blockchain network and determine a suspicion score for the consumer profile associated with the consumer, stored in the blockchain of the blockchain network, and

automatically decline, via execution of a self-executable smart contract, the second payment transaction when the suspicion score is above a predetermined threshold value without submitting a payment authorization request for the second payment transaction to the payment network.

9 . The system of claim 8 , further comprising:

payment rails associated with the payment network.

10 . The system of claim 8 , wherein the transaction message is formatted according to one or more standards.

11 . The system of claim 8 , further comprising:

an external computing system, wherein

the second on-site processor of the second merchant system transmits the authorization response for the second payment transaction to the external computing system.

12 . The system of claim 8 , wherein the suspicion score is indicative of a likelihood of the second payment transaction purchasing a product associated with the one or more product identifiers for scalping.

13 . The system of claim 8 , wherein the suspicion score is based on a number of product identifiers stored in the consumer profile compared to a predetermined value.

14 . The system of claim 8 , further comprising:

a third-party system configured to redact potentially personally identifiable information in the transaction data for the first payment transaction and the transaction message for the second payment transaction.