Method and system for providing risk information in connection with transaction processing

Abstract

A system for providing real-time risk mitigation for an authorization system. The system receives authorization requests from multiple merchants (or their respective acquirers) and processes such requests. Each processed request is then forwarded to its corresponding issuer for further authorization. Each processed request includes an authorization message. The authorization message can include a risk score, a number of reason codes, and a number of condition codes. The use of the risk score, reason codes and condition codes allows issuers to make better informed decisions with respect to providing authorizations.

1 . (canceled) 
     
     
         2 . A method comprising:
 receiving, at a first computer, an authorization request message from a merchant device for a transaction between a merchant and a consumer, the authorization request message transaction data comprising at least one of a transaction type, a stock keeping unit number, and an IP address associated with the transaction, the transaction being a credit card transaction or debit card transaction;   generating a risk score for the transaction using the transaction data; and   sending the risk score to a second computer.   
     
     
         3 . The method of  claim 2  wherein the first computer is in a financial transaction network switch. 
     
     
         4 . The method of  claim 2  wherein the second computer is an issuer computer and wherein sending the risk store to the second computer comprises:
 sending the authorization request message including the risk score to the issuer computer. 
 
     
     
         5 . The method of  claim 4  wherein the method further comprises:
 receiving an authorization response message from the issuer computer; and 
 forwarding the authorization response message to the merchant. 
 
     
     
         6 . The method of  claim 4  wherein the first computer comprises an in-flight model component. 
     
     
         7 . The method of  claim 4  wherein the authorization request message comprises a merchant category type and a transaction amount. 
     
     
         8 . The method of  claim 4  wherein the authorization response message includes a reason code indicating a basis for the risk score and a condition code indicating conditions of a transaction, an account or the consumer. 
     
     
         9 . The method of  claim 8  wherein the condition code indicates that the a payment device used in the transaction has been stolen. 
     
     
         10 . The method of  claim 8  wherein the reason code indicates that the transaction originated from a high-risk country or is related to a compromised account. 
     
     
         11 . The method of  claim 2  wherein the transaction data includes one of more of price data for goods or services associated with the transaction, consumer device data, and consumer contact data. 
     
     
         12 . A computer comprising:
 a processor; and   a computer readable medium coupled to the processor, the computer readable medium comprising code, executable by the processor for implementing a method comprising:
 receiving, at a first computer, an authorization request message from a merchant device for a transaction between a merchant and a consumer, the authorization request message transaction data comprising at least one of a transaction type, a stock keeping unit number, and an IP address associated with the transaction, the transaction being a credit card transaction or debit card transaction; 
 generating a risk score for the transaction using the transaction data; and 
 sending the risk score to a second computer. 
   
     
     
         13 . The computer of  claim 12  wherein the first computer is in a financial transaction network switch. 
     
     
         14 . The computer of  claim 12  wherein the second computer is an issuer computer and wherein sending the risk store to the second computer comprises:
 sending the authorization request message including the risk score to the issuer computer. 
 
     
     
         15 . The computer of  claim 14  wherein the method further comprises:
 receiving an authorization response message from the issuer computer; and 
 forwarding the authorization response message to the merchant. 
 
     
     
         16 . The computer of  claim 14  wherein the first computer comprises an in-flight model component. 
     
     
         17 . The computer of  claim 14  wherein the authorization request message comprises a merchant category type and a transaction amount. 
     
     
         18 . The computer of  claim 14  wherein the authorization response message includes a reason code indicating a basis for the risk score and a condition code indicating conditions of a transaction, an account or the consumer. 
     
     
         19 . The computer of  claim 18  wherein the condition code indicates that the a payment device used in the transaction has been stolen. 
     
     
         20 . The computer of  claim 18  wherein the reason code indicates that the transaction originated from a high-risk country or is related to a compromised account. 
     
     
         21 . The computer of  claim 12  wherein the transaction data includes one of more of price data for goods or services associated with the transaction, consumer device data, and consumer contact data.