Patent ID: 7644035
Filing Date: 2010-01-05
Classification: G06Q

Abstract:
1. A computer-implemented method for reducing fraudulent credit transactions, comprising: receiving, from a merchant, a credit transaction request including a payment amount and an identification of a customer transaction account; transmitting, to the merchant, an authorization for the credit transaction request when the customer transaction account is in good standing, wherein the authorization includes an encrypted multi-digit authorization code, wherein the encrypted multi-digit authorization code comprises information correlating to the customer transaction account; receiving, from the merchant, the encrypted multi-digit authorization code and a request for payment for the credit transaction request; determining via the computer a chargeback status of the merchant based upon at least the encrypted multi-digit authorization code, flagging via the computer the merchant for a possible chargeback when the encrypted multi-digit authorization code is invalid, and automatically charging back the credit transaction associated with the flagged merchant by monitoring for when a dispute occurs or there is non-payment by the customer within a threshold time interval.