Leveraging a network “positive card” list to inform risk management decisions
A plurality of bank identification number (BIN) ranges are characterized according to credit risk. A list of the plurality of bank identification number (BIN) ranges characterized by credit risk is made available to a transit-specific payment network interface processor, which is coupled to a plurality of memory-constrained fare gates of a transit authority. The list is configured to be distributed to the memory-constrained fare gates of the transit authority. Advantageously, the list based on BIN ranges takes up less memory than a list based on individual account numbers or the like and can be maintained in memory at the memory-constrained fare gates for rapid decisioning.
1. A method comprising:
characterizing a plurality of bank identification number (BIN) ranges according to credit risk;
making available, to a transit-specific payment network interface processor coupled to a plurality of memory-constrained fare gates of a transit authority, a list of said plurality of bank identification number (BIN) ranges characterized by credit risk, said list being configured to be distributed to said memory-constrained fare gates of said transit authority;
obtaining, at said transit-specific payment network interface processor coupled to said plurality of memory-constrained fare gates of a transit authority, said list of said plurality of bank identification number (BIN) ranges characterized by credit risk;
distributing said list to said memory-constrained fare gates of said transit authority;
obtaining, by said transit authority, from a prospective passenger, at a given one of said memory-constrained fare gates, an indication of a bank identification number (BIN) range;
sending an authorization request from said memory-constrained fare gate to a payment network interface platform (PNIP); and
without waiting for a response to said authorization request, making a real-time access decision at said memory-constrained fare gate and opening said memory-constrained fare gate for said prospective passenger based on looking up said bank identification number (BIN) range in said list;
periodically re-characterizing at least a portion of said plurality of bank identification number (BIN) ranges according to credit risk; and
making available, to said transit-specific payment network interface processor, an updated list of said plurality of bank identification number (BIN) ranges characterized by credit risk, based on said periodic re-characterization.
2. The method of claim 1 , further comprising generating said list by providing a GO-NO GO indicator for each of said bank identification number (BIN) ranges.
3. The method of claim 2 , wherein said characterizing comprises breaking said credit risk into predetermined percentiles and designating percentiles above a certain score as GO and percentiles below a certain score as NO GO.
4. The method of claim 1 , further comprising generating said list by providing a score for each of said bank identification number (BIN) ranges.
5. The method of claim 1 , wherein, in said step of making said list available, said transit-specific payment network interface processor is controlled by an acquirer of said transit authority.
6. The method of claim 1 , wherein said step of making said list available comprises exposing, to said transit-specific payment network interface processor, an application program interface to a centralized data warehouse of a payment card network operator, wherein said list resides.
7. The method of claim 1 , wherein said bank identification number (BIN) ranges comprise token BIN ranges.
8. The method of claim 7 , further comprising, in said characterizing step, taking into account that cardholders in a certain one of said token BIN ranges who have electronic devices on which tokenization has taken place are likely to have a lower credit risk than a general population.