Methods for risk management in payment-enabled mobile device

Abstract

A payment-enabled mobile device such as a “smart phone” incorporates risk management features applicable when used for a contactless payment transactions. In some embodiments, a mobile device processor includes a non-volatile memory storing a first counter and an associated first accumulator used for financial risk management purposes, and storing a second counter and an associated second accumulator used for enforcing a cardholder verification requirement, and storing a payment application program. In some embodiments, features govern when cardholder verification is required for consummation of the current transaction, and such features may be configurable by the payment card account issuer and/or the user of the mobile device.

What is claimed is: 
     
         1 . A payment-enabled mobile device, comprising:
 at least one mobile device processor comprising a non-volatile memory storing a first counter and an associated first accumulator used for financial risk management purposes prescribed by an issuer of a payment card account, and storing a second counter and an associated second accumulator used for enforcing a cardholder verification requirement, and storing a payment application program;   an antenna; and   a transceiver coupled to the antenna and operably coupled to the at least one mobile device processor, the transceiver controlled by the at least one mobile device processor running the payment application program;   wherein the payment application program includes instructions configured by the issuer of the cardholder's payment card account that causes the mobile device processor to:
 detect when the payment-enabled mobile device is tapped on a reader to initiate a current purchase transaction; 
 determine that the current purchase transaction includes currency other than a home currency; 
 prompt a user of the payment-enabled mobile device to perform at least one cardholder verification method (CVM); 
 determine that the CVM is valid; 
 determine that available stored prepaid funds are adequate for the current transaction based on a current value of at least one of the first accumulator and the first counter; 
 determine that a current value of the second counter and the second accumulator is below a lost and stolen risk management limit; 
 reset the second counter and the second accumulator; 
 detect that the mobile device has again been tapped on the reader by the user; and 
 consummate the transaction. 
   
     
     
         2 . The payment-enabled mobile device of  claim 1 , wherein the instructions for determining that the current purchase transaction includes currency other than a home currency comprises instructions configured to cause the mobile device processor to:
 receive a currency code associated with the current purchase transaction; and   determine that the currency code matches a second currency different from the home currency of the cardholder.   
     
     
         3 . The payment-enabled mobile device of  claim 2 , wherein the currency code comprises a null indicator, and further comprising instructions configured to cause the mobile device processor to:
 determine that available prepaid funds stored in a memory are adequate for a current transaction associated with the null indicator based on a current value of at least one of the first accumulator and the first counter;   determine that a current value of the second counter and the second accumulator stored in the memory is below a lost and stolen risk management limit;   reset the second counter and the second accumulator;   detect that the mobile device has again been tapped on the reader by the user; and   consummate the current transaction.   
     
     
         4 . The payment-enabled mobile device of  claim 1 , further comprising, subsequent to the instructions for determining that the CVM is valid, instructions configured to cause the mobile device processor to:
 determine that available prepaid funds stored in the memory are inadequate for a current transaction based on a current value of at least one of the first accumulator and the first counter;   decline the current transaction; and   prompt the user of the payment-enabled mobile device to top-up the prepaid funds amount.   
     
     
         5 . The payment-enabled mobile device of  claim 1 , further comprising, subsequent to the instructions for determining that available prepaid funds stored in a memory are adequate for the current transaction, instructions configured to cause the mobile device processor to:
 determine that a current value of the second counter and the second accumulator exceeds a lost and stolen risk management limit;   prompt the user of the payment-enabled mobile device to enter a personal identification number (PIN);   determine that the PIN is valid;   reset the second counter and the second accumulator;   detect that the mobile device has again been tapped on the reader by the user; and   consummate the current transaction.   
     
     
         6 . The payment-enabled mobile device of  claim 1 , further comprising, subsequent to the instructions for prompting the user to perform the at least one cardholder verification method (CVM), instructions configured to cause the mobile device processor to:
 determine that a predetermined time has elapsed without performance of the at least one CVM by the user; and   decline the current transaction.   
     
     
         7 . A method of operating a payment-enabled mobile device comprising:
 detecting, by a mobile device processor of a payment-enabled mobile device, that the payment-enabled mobile device has been tapped on a reader by a user to initiate a current purchase transaction;   determining, by the mobile device processor, that the current purchase transaction includes currency other than a home currency;   prompting, by the mobile device processor, a user of the payment-enabled mobile device to perform at least one cardholder verification method (CVM);   determining, by the mobile device processor, that the CVM is valid;   determining, by the mobile device processor, that available prepaid funds stored in a memory are adequate for a current transaction based on a current value of at least one of a first accumulator and a first counter;   determining, by the mobile device processor, that a current value of a second counter and a second accumulator stored in the memory is below a lost and stolen risk management limit;   resetting, by the mobile device processor, the second counter and the second accumulator;   detecting, by the mobile device processor, that the mobile device has again been tapped on the reader by the user; and   consummating, by the mobile device processor, the current transaction.   
     
     
         8 . The method of  claim 7 , wherein determining that the current purchase transaction includes currency other than a home currency comprises:
 receiving, by the mobile device processor, a currency code associated with the current purchase transaction; and   determining, by the mobile device processor, that the currency code matches a second currency different from the home currency of the cardholder.   
     
     
         9 . The method of  claim 8 , wherein the currency code comprises a null indicator, and further comprising:
 determining, by the mobile device processor, that available prepaid funds stored in a memory are adequate for a current transaction associated with the null indicator based on a current value of at least one of a first accumulator and a first counter;   determining, by the mobile device processor, that a current value of a second counter and a second accumulator stored in the memory is below a lost and stolen risk management limit;   resetting, by the mobile device processor, the second counter and the second accumulator;   detecting, by the mobile device processor, that the mobile device has again been tapped on the reader by the user; and   consummating, by the mobile device processor, the current transaction.   
     
     
         10 . The method of  claim 7 , further comprising, subsequent to determining that the CVM is valid:
 determining, by the mobile device processor, that available prepaid funds stored in the memory are inadequate for a current transaction based on a current value of at least one of the first accumulator and the first counter;   declining, by the mobile device processor, the current transaction; and   prompting, by the mobile device processor, the user of the payment-enabled mobile device to top-up the prepaid funds amount.   
     
     
         11 . The method of  claim 7 , further comprising, subsequent to determining that available prepaid funds stored in a memory are adequate for the current transaction:
 determining, by the mobile device processor, that a current value of the second counter and the second accumulator exceeds a lost and stolen risk management limit;   prompting, by the mobile device processor, the user of the payment-enabled mobile device to enter a personal identification number (PIN);   determining, by the mobile device processor, that the PIN is valid;   resetting, by the mobile device processor, the second counter and the second accumulator;   detecting, by the mobile device processor, that the mobile device has again been tapped on the reader by the user; and   consummating, by the mobile device processor, the current transaction.   
     
     
         12 . The method of  claim 7 , further comprising, after prompting the user to perform the at least one cardholder verification method (CVM):
 determining, by the mobile device processor, that a predetermined time has elapsed without performance of the at least one CVM by the user; and   declining, by the mobile device processor, the current transaction.