Scored negative file system and method
System and method for validating a payment. The method can include obtaining a first account identifier, accessing a database containing a plurality of risk scores, each one of the plurality of risk scores being associated with one of a plurality of account identifiers, obtaining a first risk score from the plurality of risk scores, the first risk score being associated with the first account identifier, and determining an acceptance decision by comparing the first risk score against a risk threshold value.
1. A computer implemented method of validating a payment comprising:
obtaining a first account identifier using a processor;
accessing a database containing a plurality of account identifiers and a plurality of risk scores associated with the plurality of account identifiers, the risk scores relating to a risk that a legitimate account holder of a payment account has insufficient funds in the payment account for a payment based on a decision tree analysis including a default history of the legitimate account holder and at least one of a number of unpaid payments, a number of paid payments, a maximum number of days a payment has been unpaid, a number of days a most recent unpaid payment has remained unpaid, or a number identifier for an issued payment;
obtaining from the database a first risk score associated with the first account identifier;
comparing the first risk score with a risk threshold value;
determining whether the payment is acceptable based on the comparison; and
when the payment is acceptable, recording an acceptance of the payment using the processor.
2. The method as claimed in claim 1 , wherein the determining further comprises determining that the payment is acceptable if the first risk score is less than the risk threshold value.
3. The method as claimed in claim 1 wherein the determining further comprises determining that the payment is unacceptable if the first risk score is greater than the risk threshold value.
4. The method as claimed in claim 3 , further comprising recording a denial of the payment using the processor when the payment is determined to be unacceptable.
5. The method as claimed in claim 1 , wherein the first account identifier is a financial account number.
6. The method as claimed in claim 1 , wherein the first account identifier is a driver's license number.
7. A system comprising:
a scored negative file configured to store a plurality of financial account identifiers, the plurality of financial account identifiers being associated with one or more risk scores, the risk scores to a risk that a legitimate account holder of a payment account has insufficient funds in the payment account for a payment based on a decision tree analysis including a default history of the legitimate account holder and at least one of a number of unpaid payments, a number of paid payments, a maximum number of days a payment has been unpaid, a number of days a most recent unpaid payment has remained unpaid, or a number identifier for an issued payment;
a processor configured to:
receive a first financial account identifier; obtain from the scored negative file at least one risk score associated with the first financial account identifier;
determine whether a payment is acceptable based on the at least one risk score; and
record the determination.
8. The system as claimed in claim 7 , wherein the processor is further configured to transmit the determination to a payment processing application.
9. The system as claimed in claim 7 , wherein determining whether a payment is acceptable further comprises determining that the payment is acceptable if the first financial account identifier does not correspond to financial account identifiers stored in the scored negative file.
10. The system as claimed in claim 7 , wherein determining whether a payment is acceptable further comprises determining that the payment is unacceptable if the first financial account identifier corresponds to one of the plurality of financial account identifiers stored in the scored negative file.
11. The system as claimed in claim 7 , wherein determining whether a payment is acceptable further comprises determining that the payment is acceptable if the at least one risk score is less than a risk threshold value.
12. The system as claimed in 7 , wherein the determining whether payment is acceptable further comprises determining that the payment is unacceptable if the at least one risk score is greater than a risk threshold value.
13. The system as claimed in claim 7 , wherein the processor is further configured to obtain from the scored negative file at least one risk score associated with one of the plurality of negative account identifiers corresponding to the first financial account identifier.
14. The system as claimed in claim 13 , wherein the processor is further configured to transmit the at least one risk score to a first payment validation application.
15. The system as claimed in claim 13 , the processor is further configured to transmit the determination to a first payment validation application.