WO2004084113A1 - Systeme de prevention de contre-passation de cartes de credit - Google Patents

Systeme de prevention de contre-passation de cartes de credit Download PDF

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Publication number
WO2004084113A1
WO2004084113A1 PCT/US2003/012285 US0312285W WO2004084113A1 WO 2004084113 A1 WO2004084113 A1 WO 2004084113A1 US 0312285 W US0312285 W US 0312285W WO 2004084113 A1 WO2004084113 A1 WO 2004084113A1
Authority
WO
WIPO (PCT)
Prior art keywords
credit card
database
customer
merchant
charge back
Prior art date
Application number
PCT/US2003/012285
Other languages
English (en)
Inventor
Zoltan Kovacs
Lenard Iszak
Original Assignee
Zoltan Kovacs
Lenard Iszak
Priority date (The priority date is an assumption and is not a legal conclusion. Google has not performed a legal analysis and makes no representation as to the accuracy of the date listed.)
Filing date
Publication date
Application filed by Zoltan Kovacs, Lenard Iszak filed Critical Zoltan Kovacs
Priority to AU2003304012A priority Critical patent/AU2003304012A1/en
Publication of WO2004084113A1 publication Critical patent/WO2004084113A1/fr

Links

Classifications

    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/04—Payment circuits
    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/22—Payment schemes or models
    • G06Q20/24—Credit schemes, i.e. "pay after"
    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/38—Payment protocols; Details thereof
    • G06Q20/40—Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
    • G06Q20/403—Solvency checks

Definitions

  • the present invention relates generally to a system for merchants who accept payment by credit cards. More specifically, the present invention is a system implementing a database listing fraudulent orders and sales that resulted in a refund due to disagreement with the customer, for any applicable reason, and the databases related features.
  • a "charge back” is a refund to a credit card initiated by the customer and the issuing bank of the card. For example, if a customer requests a refund, and the refund is not applied in a timely manner, the customer may call the card issuer and have the issuer charge back the disputed amount to their card. Although this charge back system is in place to protect the consumer, it can create problems for a vendor when it happens. Also, due to missing signature on credit card transactions of Internet purchases, charge backs are a growing trend, and can be used by less scrupulous customers on a regular basis to avoid paying for services or items rendered.
  • a traditional "brick and mortar" merchant accepts credit card payment with a signature.
  • Internet purchases are most often made by credit card, and the customer has no way to sign for an Internet transaction. Due to missing signatures on credit card transactions of Internet purchases, merchants' accounting of purchases may be open to discrepancy, and lead to charge backs affecting the merchant's working capital. Without a signature, merchants don't have proof that the customer agreed to the terms of the charge, and the merchants are essentially powerless to stop the charge backs against their merchant accounts.
  • a merchant's processing bank can "freeze" tens of thousands of dollars in credit card deposits and demand that the disputed funds should be held for 6 months or longer.
  • the customer may use the charge back system to revoke charges to a credit card which was not authorized, but the customer may also dispute charges, which were legitimate, and the merchant has no recourse.
  • a merchant has a charge in dispute
  • the money is pulled from the merchant's account and refunded to the user's card.
  • the charge is placed in dispute by the issuing bank and the bank may refuse to release the funds for six months to a year from the time that the purchase was made.
  • the merchant's credit deposit account may be cancelled. This places the merchant in a situation of not being able to accept any credit cards, and can ultimately push a small company, or an Internet company out of business.
  • a need has been established for a database to provide merchants with information about specific customers who have used credit cards to make a purchase and then cancelled payment resulting in a charge back to the merchants' accounts. Additionally a database is needed which can allow a merchant to determine if they wish to accept a credit card payment from a consumer who regularly abuses the charge back system. Moreover, there is a need to attempt to curb repeated charge backs initiated by . the same person. Also, there is a need for a system which provides forms for merchants to use with customers presenting a higher than normal charge back risk. Further, there is a need to provide encouragement and/or the means for allowing credit card transactions to go through aside from the credit card company decision-making system. There is also a need to provide a verification system to ensure that charge backs will not occur due to misappropriation of a credit card number - i.e. credit card theft.
  • the present invention presents a database of customers with charge back habits.
  • the charge back system database provides a merchant with a database of fraudulent orders and sales that resulted in a refund due to disagreement with the customer.
  • the merchant can search this list before finalizing a credit card sale.
  • the charge back system will alert a merchant to require a signature on a purchase agreement from high-risk customers in order to prevent a charge back to the merchant's processing bank.
  • the charge back system will send out an email, fax, or postal mail to the customer letting him know that his information has been entered into a negative database, and the consumer may have trouble purchasing goods or services, due to this entry, on the Internet in the future.
  • the merchant may choose to remove the customer from the charge back system's database, possibly resulting in the customer paying the merchant. This feature is important because it provides a means whereby the customer is educated that charge backs are not populai- with merchants, and the customer is pushed to allow a transaction to be executed. Other related means are employed to encourage a customer to allow a charge to be executed, as well as to prevent charge backs due to credit card fraud.
  • the merchant who posted the information on the customer in the database is preferably the only one who can remove the information from the database.
  • the administrator of the database system can verify that there is a true report on record, and adjust the record so that the database system is not falsely maligning a customer.
  • Chat and/or private messaging systems can be employed so that the merchant and the reported charge back customer can resolve a dispute amicably.
  • Online mediators and/or arbiters can also assist in resolving charge back problems.
  • the present invention provides a forum for dispute resolution wholly apart from credit card resolution systems currently in place.
  • the present invention allows direct, preferably, non-telephone voice communication between the parties to resolve the dispute.
  • the merchant has the ability to cross sell and/or fix the problem to ensure the charge is executed.
  • the present invention also encompasses collecting outstanding fees from reported customers so the fees can be turned over to the merchant members for a fee. This continues with the dispute resolution previously discussed.
  • the database can be accessed before finalizing sales with other customers. This allows a merchant to choose to allow a customer, who has a history of fraudulent orders and sales that resulted in a refund, to purchase from that merchant's company. Alternately, the merchant may decline the sale to protect their business from similar charge back activities. Hence, the merchant can either not work high-risk customers or make high-risk customers sign a purchase agreement preventing a charge back. These agreements can be provided to merchants instantly online or otherwise, and such DETAILED DESCRIPTION
  • the present invention is a database that lists customers with excessive charge back habits.
  • the database lists charge backs, fraudulent orders, and sales that result in a refund due to disagreement with the customer.
  • the database allows thousands of other merchants to enter information on "trouble" customers in the charge back system database.
  • the reporting part has the ability to receive negative customer information
  • the search part has the ability to allow members to search for a potential customer before finalizing a credit card transaction with that customer.
  • the reporting part and the search part allow communication with the database.
  • the present invention has a database focusing on three types of transactions: charge backs, refunds, and fraudulent orders.
  • Each member has access to other members' data allowing for informed decisions on the part of the merchants.
  • members When members receive a charge back, they enter the customer's information into the database along with a short description of the charge back case.
  • the description includes a record of the customer's name, address, city, state, zip, country, phone number, email address, transaction date, report date, report type (refund, charge back or stolen card), dollar amount, and report note with a description of that particular charge back case.
  • the credit card number and expiration date can also be included in the record placed in the database.
  • the database then proceeds to contact the customer involved in the dispute.
  • an email will be sent to the customer letting him or her know that his or her information billing phone number, and geographic IP location.
  • the goal is to profile charge back problems as best as possible to avoid merchant financial hardship.
  • a "wall of shame” or similar list is generated from the database and is displayed, preferably, on the administrator's website so that the customer name and email address for the highest volume charge backs or most recent charge backs are revealed.
  • the database also includes a record of all searches performed, and in this way, can provide positive reports on customers on whom searches were done but low or no charge back, refund, and/or fraud history exists. For example, a customer might be searched by 10 merchant members of the present invention, and if that customer has no charge backs, refunds, and/or fraud history, then that customer would be earmarked as a positive customer. Thus, the more purchases a customer attempts to make, the more often merchant members of vhe present invention will search that customer's charge back, refund, and/or fraud history; and then, that customer will receive successively higher recommendations for being searched and having a no bad actions in their record.
  • Part of the present invention focuses on violation of privacy issues, and thus, to avoid illegal use of individuals' information, all merchants using the present invention would need to display a seal and or disclaimer linking to the administrator of the present invention.
  • the link is preferably placed in the terms of service information provided by each merchant to its customers.
  • the present invention checks the link on each merchant member's web site to ensure that it is in place before reporting can occur from that merchant member. In this way, the present invention keeps within the bounds of privacy laws.
  • IP verification is also a provided so that the geographic location and/or IP address is consistent with the billing address of the credit card. This is important because a hallmark of charge backs is stolen credit card numbers. If an online merchant can verify that the credit card is being used from an IP source far from the billing address of the credit card owner, then the merchant can either decline to sale ahead of time (avoiding a charge back), or alternatively, the merchant can provide such potential customer with forms to ensure identity, etc. so that the charge will not be revoked. Similarly, phone number verification is employed so that the credit card is matched to a billing phone number.
  • a useful feature of the present invention sorts customers with a charge back history based upon any and/or all of the following factors: the type of good being purchased, the type of credit card being employed, the email address (i.e. a hotmail, verizon, etc. based email address), actual and alias email names, IP address, credit card

Abstract

L'invention concerne une base de données de clients ayant des antécédents de commandes et de ventes frauduleuses, qui se concentre spécifiquement sur les clients dont les achats résultent dans un remboursement découlant d'un désaccord sur le paiement. Seuls les membres peuvent accéder à ladite base de données pour s'assurer des habitudes des clients en matière de carte de crédit avant de procéder à une vente. Les informations entrées concernant le client permettent au commerçant de prendre une décision en connaissance de cause concernant chaque vente et ne signifient pas nécessairement que ledit commerçant ne devrait pas encaisser un paiement d'un client particulier. Sachant que certains clients sont capables d'exploiter de l'absence de signature sur fichier, comme c'est le cas dans une transaction de carte de crédit sur l'Internet, le commerçant peut protéger son entreprise contre un type de contre-passation éventuelle de la part du client.
PCT/US2003/012285 2003-03-12 2003-04-18 Systeme de prevention de contre-passation de cartes de credit WO2004084113A1 (fr)

Priority Applications (1)

Application Number Priority Date Filing Date Title
AU2003304012A AU2003304012A1 (en) 2003-03-12 2003-04-18 Credit card charge back prevention system

Applications Claiming Priority (2)

Application Number Priority Date Filing Date Title
US32000303P 2003-03-12 2003-03-12
US60/320,003 2003-03-12

Publications (1)

Publication Number Publication Date
WO2004084113A1 true WO2004084113A1 (fr) 2004-09-30

Family

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Family Applications (1)

Application Number Title Priority Date Filing Date
PCT/US2003/012285 WO2004084113A1 (fr) 2003-03-12 2003-04-18 Systeme de prevention de contre-passation de cartes de credit

Country Status (2)

Country Link
AU (1) AU2003304012A1 (fr)
WO (1) WO2004084113A1 (fr)

Cited By (6)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
WO2007125316A2 (fr) * 2006-04-25 2007-11-08 Uc Group Ltd. Systemes et procedes de conduite de transactions financieres par le biais d'un reseau
US20100106611A1 (en) * 2008-10-24 2010-04-29 Uc Group Ltd. Financial transactions systems and methods
US7941370B2 (en) 2006-04-25 2011-05-10 Uc Group Limited Systems and methods for funding payback requests for financial transactions
US8346638B2 (en) 2005-10-26 2013-01-01 Capital One Financial Corporation Systems and methods for processing transaction data to perform a merchant chargeback
US8832809B2 (en) 2011-06-03 2014-09-09 Uc Group Limited Systems and methods for registering a user across multiple websites
CN112749975A (zh) * 2019-10-31 2021-05-04 中国移动通信集团浙江有限公司 自动处理退费请求的方法、自动处理平台

Citations (1)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US20020139837A1 (en) * 2001-03-12 2002-10-03 Spitz Clayton P. Purchasing card transaction risk model

Patent Citations (1)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US20020139837A1 (en) * 2001-03-12 2002-10-03 Spitz Clayton P. Purchasing card transaction risk model

Cited By (10)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US8346638B2 (en) 2005-10-26 2013-01-01 Capital One Financial Corporation Systems and methods for processing transaction data to perform a merchant chargeback
WO2007125316A2 (fr) * 2006-04-25 2007-11-08 Uc Group Ltd. Systemes et procedes de conduite de transactions financieres par le biais d'un reseau
WO2007125316A3 (fr) * 2006-04-25 2008-04-10 Uc Group Ltd Systemes et procedes de conduite de transactions financieres par le biais d'un reseau
US7941370B2 (en) 2006-04-25 2011-05-10 Uc Group Limited Systems and methods for funding payback requests for financial transactions
EP2365468A1 (fr) * 2006-04-25 2011-09-14 UC Group Ltd. Systemes et procedes de conduite de transactions financieres par le biais d'un reseau
US8099329B2 (en) 2006-04-25 2012-01-17 Uc Group Limited Systems and methods for determining taxes owed for financial transactions conducted over a network
US20100106611A1 (en) * 2008-10-24 2010-04-29 Uc Group Ltd. Financial transactions systems and methods
US8832809B2 (en) 2011-06-03 2014-09-09 Uc Group Limited Systems and methods for registering a user across multiple websites
CN112749975A (zh) * 2019-10-31 2021-05-04 中国移动通信集团浙江有限公司 自动处理退费请求的方法、自动处理平台
CN112749975B (zh) * 2019-10-31 2024-03-22 中国移动通信集团浙江有限公司 自动处理退费请求的方法、自动处理平台

Also Published As

Publication number Publication date
AU2003304012A1 (en) 2004-10-11

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