News Column

Patent Issued for Transaction Notification and Authorization Method

August 6, 2014



By a News Reporter-Staff News Editor at Journal of Engineering -- According to news reporting originating from Alexandria, Virginia, by VerticalNews journalists, a patent by the inventors Calabrese, Gerry (Southwest Ranches, FL); Stemer, Werner (Fort Lauderdale, FL), filed on August 23, 2013, was published online on July 22, 2014.

The assignee for this patent, patent number 8783564, is Calabrese Stemer LLC (Hollywood, FL).

Reporters obtained the following quote from the background information supplied by the inventors: "Field of the Invention

"The invention lies in the financial transaction processing field. More specifically, the invention relates to credit and debit transactions and to related charge notification and charge authorization.

"Credit cards and charge cards have become the primary vehicle by which payments for consumer services and consumer goods are transacted. In today's environment, credit payments are authorized at the point of sale (POS) and the authorization is provided by the cardholder's signature on a receipt. Often, the transaction is performed under considerable time pressure (e.g., in a long cash-out line) and mistakes are only recognized after the transaction has been completed. The consumer may, for example, have been charged too much, and he may have authorized the incorrect amount. As many consumers know, correcting such simple mistakes is not at all simple and the correction is time consuming and it is an expensive service for the credit card and credit clearing houses to maintain.

"Mistakes such as the foregoing, however, are not the main reason for considerable losses. Often, incorrect or non-authorized charges are effected because of fraudulent or even innocent mistakes that could have been avoided, had better authorization security been assured. It is well known that charge errors and charge fraud causes millions of dollars in losses in the United States alone.

"Extraneous authorization security, on the other hand, may be too intrusive in many cases and may even have a negative impact on the transaction."

In addition to obtaining background information on this patent, VerticalNews editors also obtained the inventors' summary information for this patent: "It is accordingly an object of the invention to provide a credit card transaction notification and authorization method, which overcomes the above-mentioned disadvantages of the heretofore-known devices and methods of this general type and which provides for a non-intrusive, user-selectable notification and authorization system for credit card transactions.

"With the above and other objects in view there is provided, in accordance with the invention, an improved charge payment authorization method. First, a charge is requested at a merchant's and account information for payment of a customer's purchase is acquired at the merchant's. Then an authorization request is transmitted to a remote charge processing facility, and the charge request is processed. This conventional process is improved as follows: a notification of the charge request is transmitted in the form of a SMS or text through a cellular network to a wireless device associated with the customer no later than immediately after authorizing the charge request and the charge request is processed without requiring a response from the wireless device associated with the customer, i.e., without waiting for an authorization from the customer.

"With the foregoing and other objects in view there is provided, in accordance with the invention, a payment authorization method, which comprises:

"gathering, at a merchant's, account information for payment of a customer's purchase;

"transmitting an authorization request to a financial authorization system requesting payment authorization for the customer's purchase, the authorization request including the account information;

"notifying the customer by sending a message to a communications device associated with the customer.

"In accordance with an added feature of the invention, the gathering step comprises swiping a card presented by the customer and containing the account information.

"With the above and other objects in view there is also provided, in accordance with a second embodiment of the invention, a payment authorization method, which comprises:

"gathering, at a merchant's, account information for payment of a customer's purchase;

"transmitting an authorization request to a financial authorization system requesting payment authorization for the customer's purchase, the authorization request including the account information;

"calling a communications device associated with the customer and prompting the customer for confirmation or refusal of the transaction; and

"processing the authorization request in accordance with the customer's response by either refusing the transaction or processing the purchase.

"In accordance with an alternative implementation of the invention the customer is required to enter their personal identifier (e.g., a PIN) upon being prompted. A proper PIN response is considered an authorization, while an incorrect PIN or no response at all is considered a refusal.

"With the above and other objects in view there is also provided, in accordance with the invention, a charge card processing method, which comprises:

"inputting a transaction request to a stationary merchant terminal disposed at a merchant location;

"processing the transaction request with the merchant terminal, including a transmission of a first authorization request to a remote processing facility and receipt of a notification that authorization has been accepted or declined;

"transmitting a second authorization request from a remote processing facility to a mobile communications device of a customer associated with the requested transaction via a wireless link; and

"authorizing the requested transaction only if authorization has been accepted for the first authorization request and a proper response has been received by the remote processing facility to the second authorization request.

"With the above and other objects in view there is also provided, in accordance with the invention, a charge processing method, which comprises:

"preauthorizing an imminent given transaction by transmitting a preauthorization for the imminent given transaction from a customer to a financial authorization system;

"subsequently inputting a transaction request concerning the given transaction at a merchant terminal disposed at a merchant location;

"processing the transaction request at the merchant terminal, including a transmission of an authorization request for the given transaction to the financial authorization system;

"transmitting a response to the authorization request from the financial authorization system to the merchant terminal, and thereby authorizing the transaction request at the merchant's if the preauthorization from the customer is available in the financial authorization system, and otherwise contacting the customer for authorization or declining the authorization request.

"In accordance with a concomitant feature of the invention, the preauthorization from the customer includes a maximum amount to be authorized for the transaction and a time period within which the preauthorization is valid.

"Other features which are considered as characteristic for the invention are set forth in the appended claims.

"Although the invention is illustrated and described herein as embodied in a credit card transaction notification and authorization system, it is nevertheless not intended to be limited to the details shown, since various modifications and structural changes may be made therein without departing from the spirit of the invention and within the scope and range of equivalents of the claims.

"The construction of the invention, however, together with additional objects and advantages thereof will be best understood from the following description of the specific embodiment when read in connection with the accompanying drawings."

For more information, see this patent: Calabrese, Gerry; Stemer, Werner. Transaction Notification and Authorization Method. U.S. Patent Number 8783564, filed August 23, 2013, and published online on July 22, 2014. Patent URL: http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO1&Sect2=HITOFF&d=PALL&p=1&u=%2Fnetahtml%2FPTO%2Fsrchnum.htm&r=1&f=G&l=50&s1=8783564.PN.&OS=PN/8783564RS=PN/8783564

Keywords for this news article include: Legal Issues, Calabrese Stemer LLC.

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Source: Journal of Engineering


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