System for managing risk of financial transactions with location information
View Patent ↗The present teachings describe a system for processing financial transactions. In one embodiment, the system includes a remote terminal adapted to identify the location of financial transactions via global positioning system (GPS) information such that the remote terminal acquires transaction information from a user and transmits a first signal indicative of transaction information and GPS information. In addition, the system includes an authorizing host adapted to receive the first signal transmitted by the remote terminal such that the authorizing host evaluates the risk associated with financial transactions based, at least in part, on the GPS information so as to determine whether to accept or decline the financial transaction. The present teachings further describe devices and methods of acquiring GPS information for the purpose of managing risk for financial transactions.
1. A method of determining the risks of accepting a proffered promissory payment, the method comprising:
receiving transaction information about the proffered promissory payment;
receiving location information about the location of at least one remote transaction device; and
performing a risk assessment of the proffered promissory payment, wherein performing the risk assessment comprises, at least in part, determining whether the location information indicates that the location of the remote transaction device is within at least one of a plurality of authorized locations for the remote transaction device, and wherein the risk assessment comprises additional non-location based risk factors associated with the financial transaction if the location of the remote transaction device is not within one of the plurality of authorized locations.
2. The method of claim 1 , wherein obtaining location information of the remote transaction device comprises receiving GPS signals and determining a GPS based location of the remote transaction device.
3. The method of claim 1 , wherein determining whether the GPS based location is in the at least one authorized location comprises determining whether the GPS based location is within a region defined by a pre-approved zip code for the remote transaction device.
4. The method of claim 1 , wherein performing the risk assessment further comprises determining a risk score of accepting the proffered promissory payment based upon the GPS information, the information about the merchant, the amount of the proffered promissory payment, and the type of transaction to determine the risk score.
5. The method of claim 4 , wherein the risk score is adjusted based upon whether the GPS information is within at least one authorized location for the remote transaction device.
6. The method of claim 1 , wherein performing the risk assessment of accepting the proffered promissory payment comprises determining whether the GPS based location is in the at least one of the authorized locations and comprises determining which of a plurality of authorized locations the GPS location falls within.
7. The method of claim 6 , wherein a risk score is calculated for the proffered promissory payment based upon risk factors associated with the authorized location if it is determined that the GPS location falls within the authorized location.
8. The method of claim 6 , wherein a risk score is calculated for the proffered promissory payment based upon new risk factors associated with the GPS location when the GPS location does not fall within an authorized location.
9. A system for processing financial transactions, the system comprising an authorizing host that receives information about a financial transaction and location information about one or more remote transaction devices, wherein if the remote transaction device is not within at least one approved location, the authorizing host is configured to evaluate additional risk factors associated with the financial transaction.
10. The system of claim 9 , wherein the remote transaction device includes a GPS receiver that receives GPS signals and determines the location coordinates of the remote transaction device based upon the GPS signal.
11. The system of claim 10 , wherein the authorizing host includes a risk assessment component that evaluates the risk associated with the financial transaction, and wherein the risk assessment component adjusts the risk assessment based upon the location information received from the remote transaction device.
12. The system of claim 11 , wherein the risk assessment component performs a standard risk assessment when the location information indicates that the remote transaction device is in at least one of the approved locations.
13. The system of claim 12 , wherein the risk assessment component adjusts the risk assessment when the location information indicates that the remote transaction device is not in at least one of the approved locations by evaluating risk factors associated with the new location.
14. The system of claim 13 , wherein the risk factors for the new location include payment history on other financial transactions in the same location.
15. The system of claim 11 , wherein the authorization host categorizes the approved locations for the remote transaction device such that a merchant can move the remote transaction device from one location to another.
16. The system of claim 15 , wherein the risk assessment component declines financial transactions when the location information provided by the remote transaction device indicates the remote transaction device is not in one of the plurality of approved locations.
17. A system for determining the risks of accepting a proffered payment, the system comprising:
means for receiving transaction information about the proffered promissory payment and for receiving location information about the location of at least one remote transaction device; and
means for performing a risk assessment of the proffered promissory payment, wherein performing the risk assessment comprises, at least in part, determining whether the location information indicates that the location of the remote transaction device is within at least one of a plurality of authorized locations for the remote transaction device, and wherein the risk assessment comprises additional non-location based risk factors associated with the financial transaction if the location of the remote transaction device is not within one of the plurality of authorized locations.
18. The system of claim 17 , wherein the means for receiving location information includes a GPS receiver that receives GPS signals and determines the location coordinates of the remote transaction device based upon the GPS signal.
19. The system of claim 18 , wherein the means for performing a risk assessment includes a risk assessment component that evaluates the risk associated with the financial transaction, and wherein the risk assessment component adjusts the risk assessment based upon the location information received from the remote transaction device.
20. The system of claim 19 , wherein the means for performing a risk assessment performs a standard risk assessment when the location information indicates that the remote transaction device is in at least one of the approved locations.