"Mobile Merchant POS Processing System, Point-Of-Sale App, Analytical Methods, and Systems and Methods for Implementing the Same" in Patent Application Approval Process
This patent application is assigned to
The following quote was obtained by the news editors from the background information supplied by the inventors: "In known point-of-sale (POS) systems, a merchant will procure a POS terminal for processing credit and debit transactions. As a part of that process, the merchant will work with a payment service provider and a POS terminal, which is typically a device a merchant will have next to the cash register, for receiving credit/debit card swipes, taps, or other mechanisms for receiving the credit card information.
"Because of the need to avoid fraudulent POS transactions, the payment service provider performs a number of checks on the merchant information on behalf of a bank that is exposed to the fraud risk (an exposed bank) to confirm the merchant is legitimate and an acceptable credit risk. Thus, the payment service provider will often perform a credit check on the company and confirm it is a valid business at a certain physical address or addresses. Typically the confirmation that a business is at a certain physical address includes actually going to the physical facility to confirm that the business is at that certain address."
In addition to the background information obtained for this patent application, VerticalNews journalists also obtained the inventors' summary information for this patent application: "The present application establishes systems, methods, and rules for enabling small and mobile merchants to have mobile POS applications and/or a portable card reader and personal identity number (PIN) entry device on or associated with their personal digital computing or communication devices or communication services. The present application describes means by which a payment service provider acting on behalf of a credit card issuing and/or exposed bank, may evaluate a business risk of applying merchants, i.e. merchants applying to register for use of a POS system, and provide approvals and/or policies to be applied in clearing credit or debit transactions received from those merchants.
"The first part of this process is described as the 'application' process, which refers to the steps that are undertaken in order to receive a merchant account application and approve or deny the merchant account application. Activities like authentication of the merchant's identification, proof of the merchant's business and the like are performed as a part of the application process.
"There is a further 'on-boarding' process where the merchant account profiles and policies are established. It is as part of this process that rules or policies can be built in to or otherwise associated with a merchant profile. The rules may be based on a merchant category or a merchant price plan (i.e. a set of tariffs that the merchant will be subject to as part of the service). The on-boarding process may include actions like building a merchant's account profile, including the business name, company or trading entity address, and also things like setting high/low transaction limits, settlement period, and transaction processing fees. This list is not exhaustive.
"In the presently described embodiments, the merchants are enabled to have mobile employees who will be out in the field selling products or services. Based on described authentication and validation methods known in the prior art, such merchants would not have had an opportunity to provide mobile credit/debit transaction authorization and acceptance using a POS terminal application, in conjunction with a PIN entry device, on their employees' or agents' mobile communications devices.
"The presently described embodiments not only provide this ability for merchants to deploy mobile POS solutions with their mobile sales or service employees, but also provide for an unprecedented level of granular analytics for products sales and service activities across geographic regions, employee service activities, etc.
"Further, for the payment service provider itself, there is a great opportunity to provide collective intelligence based on information gathered based on clearance transactions and application processing across all of the merchant banks and merchants for which it provides a service.
"Further disclosed is the ability of the payment service provider to act as a 'master merchant' for the multiple subscribing merchants. One problem that has existed heretofore in such master merchant setups is that in the statements issued to cardholders by the card company is that only the 'master merchant' information was identified on the cardholders' credit card statements. As an example, consider an aggregator website for multiple merchants, where it is the aggregator who provides the platform through which multiple online merchants provide individual stores but where the aggregator handles the payment processing. The cardholder would not have had specific information about who they have purchased from or what they have purchased on their monthly card statements. In contrast, presently described embodiments provide for enriched clearance data to be provided by the payment service provider to be passed on with the transaction authorization information whereby the enriched transaction data (including, e.g., the actual merchant subscriber name) can be passed on to the ultimate card issuing bank. This enriched data can, for example, be provided on through the clearance network when the transaction is sent to a clearing bureau (if one is used), the payment service provider or the card issuer to get the approved/not approved answer for the transaction and any particular return codes.
"The present system enables the merchant bank (the bank issuing the accounts to the selling merchants) to provide merchant portals such that merchants may administer their accounts, including the POS applications and portable devices described as a part of the present application. The merchant is able to self-serve and, depending on levels of authorization given to the merchant, the merchant may change the configuration and assignments of POS terminal devices and/or POS mobile device apps (applications). The merchant may also be enabled to view their account status and set up item sales codes, amounts, and descriptions for items to be sold through the POS applications and mobile terminals. The merchant may also review transaction histories and perform analytics on their sales. Exemplary analytics could be based on products and services provided, they can include time-based and geographic-based limitations.
"Further disclosed in the present approach are systems and techniques for validating that a card transaction is being made from an authorized portable terminal and/or an authorized POS app running on a qualified user's (e.g. an authorized user) portable communications device. Thus, when (or as a preamble to) a transaction comes in from a portable terminal and POS application, encrypted or hashed identifications sent from the portable terminal or optionally from the POS application can be cross-checked against identifications stored in a database for security purposes. Thus, the portable terminal may have a Terminal ID (TID) that can be registered as associated with a merchant through the merchant application fulfillment process or at a later time (as the merchant account is updated).
BRIEF DESCRIPTION OF THE DRAWINGS
"FIG. 1 is an illustration of an exemplary system implementation according to the present application;
"FIG. 2 is a flow diagram illustrating an exemplary new merchant application process in accordance with the present disclosure;
"FIGS. 3A and 3B are illustrations of exemplary merchant data records for processing and use in methods described in the present application;
"FIGS. 4A and 4B are illustrations of exemplary clearance processes in accordance with the system and method embodiments disclosed within the present application;
"FIG. 5 is an illustration of an another exemplary system implementation according to the present application, this system implementation including an analytics system and method;
"FIG. 6 is an illustration of an example analytics report that could be generated in accordance with the exemplary analytics system and method of FIG. 5; and
"FIG. 7 is a flowchart describing an exemplary method of associating terminal IDs with portable POS terminals.
"The present embodiments will now be described hereinafter with reference to the accompanying drawings, which form a part hereof, and which illustrate example embodiments which may be practiced. As used in the disclosures and the appended claims, the terms 'embodiment' and 'example embodiment' do not necessarily refer to a single embodiment, although it may, and various example embodiments may be readily combined and interchanged, without departing from the scope or spirit of the present embodiments. Furthermore, the terminology as used herein is for the purpose of describing example embodiments only, and are not intended to be limitations. In this respect, as used herein, the term 'in' may include 'in' and 'on,' and the terms 'a,' 'an' and 'the' may include singular and plural references. Furthermore, as used herein, the term 'by' may also mean 'from,' depending on the context. Furthermore, as used herein, the term 'if' may also mean 'when' or 'upon,' depending on the context. Furthermore, as used herein, the words 'and/or' may refer to and encompass any and all possible combinations of one or more of the associated listed items.
"Although similar reference numbers may be used to refer to similar elements for convenience, it can be appreciated that each of the various example embodiments are considered to be distinct variations."
URL and more information on this patent application, see: MAZAHERI, Hooman; CHADWICK,
Keywords for this news article include: Legal Issues,
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