SYSTEMS AND METHODS FOR MONITORING CARDHOLDER RETURN ACTIVITY

A computer-implemented method for monitoring cardholder return activity associated with cardholder transactions is implemented by a monitoring computer system coupled to a memory. The method includes receiving a set of first transaction data associated with a first transaction initiated by a cardholder at a merchant, determining that the first transaction is a first return transaction including a set of first return transaction data, retrieving a return record associated with the cardholder, wherein the return record is stored within the memory, and updating the return record associated with the cardholder with the set of first return transaction data.

BACKGROUND OF THE DISCLOSURE

The field of the disclosure relates generally to products returned to a merchant by a cardholder after purchase, and more particularly, to systems and methods for monitoring product return activity of a cardholder.

In at least some cardholder-initiated financial transactions, the cardholder (e.g., an entity using a payment card such as a credit card, a debit card, or a prepaid card) may seek to return goods or services to a merchant after such goods or services were initially purchased from the merchant. When a return occurs, the merchant may experience financial, logistic, or opportunity costs related to the return of the goods or services. For example, fees may be associated with the refurbishment and restocking of goods. In other examples, the goods may no longer be sellable and may need to be returned to a manufacturer or wholesaler. In the example of services, returned goods may have not been performed and a full refund may be provided. A merchant may, in this example, lose the revenue associated with the return and additionally lose the opportunity to sell the service because the time to deliver the service has passed. In further examples, the merchant may have ordered additional inventory between the time of the initial purchase and the return. The merchant may therefore have excess inventory in stock that may be inappropriate to the merchandising projections of the merchant. In these examples, the merchant may experience a financial loss on the transaction due to the return. Accordingly, a merchant may wish to monitor the activity related to returns to understand the financial impact of returns.

Some cardholders may additionally be more likely to return at least some particular types of goods or services (collectively referred to herein as “products”). In such cases, merchants may find it valuable to have information regarding the return of products including information on cardholders who are more likely to return purchased products. Cardholders who are more likely to return goods and services may be those who have returned products in the past to the merchant or other merchants. Alternatively, cardholders who are more likely to return products may be those who have returned similar products to similar merchants.

BRIEF DESCRIPTION OF THE DISCLOSURE

In one aspect, a computer-implemented method for monitoring cardholder return activity associated with cardholder transactions is provided. The method is implemented by a monitoring computer system coupled to a memory. The method includes receiving a set of first transaction data associated with a first transaction initiated by a cardholder at a merchant, determining that the first transaction is a first return transaction including a set of first return transaction data, retrieving a return record associated with the cardholder wherein the return record is stored within the memory, and updating the return record associated with the cardholder with the set of first return transaction data.

In another aspect, a monitoring computer system for monitoring cardholder return activity associated with cardholder transactions is provided. The monitoring computer system includes a processor and a memory coupled to the processor. The monitoring computer system is configured to receive a set of first transaction data associated with a first transaction initiated by a cardholder at a merchant, determine that the first transaction is a first return transaction including a set of first return transaction data, retrieve a return record associated with the cardholder, and update the return record associated with the cardholder with the set of first return transaction data.

In a further aspect, computer-readable storage media for monitoring cardholder return activity associated with cardholder transactions is provided. The computer-readable storage media has computer-executable instructions embodied thereon. When executed by at least one processor, the computer-executable instructions cause the processor to receive a set of first transaction data associated with a first transaction initiated by a cardholder at a merchant, determine that the first transaction is a first return transaction including a set of first return transaction data, retrieve a return record associated with the cardholder, and update the return record associated with the cardholder with the set of first return transaction data.

DETAILED DESCRIPTION OF THE DISCLOSURE

The following detailed description of the embodiments of the disclosure refers to the accompanying drawings. The same reference numbers in different drawings may identify the same or similar elements. Also, the following detailed description does not limit the claims.

This subject matter described herein relates generally to monitoring cardholder return activity (i.e., the return of purchase goods and/or services) associated with cardholder transactions. Transaction data associated with cardholder-initiated financial transactions is received by a return monitoring computer system (“monitoring computer system”). Specifically, the methods and systems described herein include receiving a set of first transaction data associated with a first transaction initiated by a cardholder at a merchant, determining that the first transaction is a first return transaction including a set of first return transaction data, retrieving a return record associated with the cardholder wherein the return record is stored within the memory, and updating the return record associated with the cardholder with the set of first return transaction data.

In at least some cardholder-initiated financial transactions, the cardholder (e.g., an entity using a payment card such as a credit card, a debit card, or a prepaid card) may seek to return goods or services (collectively referred to herein as “products”) to a merchant after such products were initially purchased from the merchant. In at least some examples, the merchant may experience financial, logistic, or opportunity costs related to the return of the products. For example, fees may be associated with the refurbishment and restocking of products. In other examples, the products may no longer be sellable and may need to be returned to a manufacturer or wholesaler. In further examples, the merchant may have ordered additional inventory between the time of the initial purchase and the return. The merchant may therefore have excess inventory in stock that may be inappropriate to the merchandising projections of the merchant. In these examples, the merchant may experience a financial loss on the transaction due to the return. Accordingly, a merchant may wish to monitor the activity related to returns to understand the financial impact of returns.

The systems and methods described herein are configured to monitor cardholder return activity associated with cardholder transactions. More specifically, a monitoring computer system receives a set of first transaction data associated with a cardholder-initiated first transaction at a merchant. For example, the cardholder may initiate a transaction with a merchant using a payment card such as a credit card, a debit card, or a prepaid card. In at least some cases, such transactions are return transactions that are initiated subsequent to an initial purchase of products. In other words, the cardholder initiates a return transaction where the cardholder returns products and obtains a partial or complete refund of a purchase price for the initial purchase of the products. The monitoring computer system may be in networked communication with a payment network, a merchant computing device, and an issuer computing device. The monitoring computer system may receive the set of first transaction data from at least one of the payment network, the merchant computing device, and the issuer computing device.

The monitoring computer system determines that the first transaction is a first return transaction including a set of first return transaction data. The monitoring computer system determines that the first transaction is a first return transaction by processing the set of first transaction data to identify the presence of a return indicator. As described further below, the return indicator may include, for example and without limitation, a negative transaction amount reflecting a payment by the merchant to a cardholder, a reference to a previous financial transaction between the cardholder and the merchant, and an explicit indicator identifying the fact that the first transaction is a return transaction. Such an explicit indicator may include, for example, a flag indicating that a transaction is a return transaction. In one example, the set of first transaction data may include a record for “Transaction Type” with a possible value of “Return”. Accordingly, when the monitoring computer system processes the set of first transaction data and identifies a value of “Return”, the monitoring computer system may accordingly identify the value as an explicit indicator that serves as a return indicator. In another example, the set of first transaction data may include a record for “Return Transaction” with possible values of, “Y” and “N”. Similarly, when the monitoring computer system processes the set of first transaction data and identifies a value of “Y”, the monitoring computer system may accordingly identify the value as an explicit indicator that serves as a return indicator.

The monitoring computer system retrieves a return record associated with the cardholder. The monitoring computer system retrieves the return record by identifying at least one cardholder identifier associated with the set of first return transaction data and retrieving a return record associated with the at least one cardholder identifier. The cardholder identifier may be any identifier that can connect data stored in the set of first transaction data to the return record. Accordingly, the cardholder identifier may include, without limitation, an account number associated with the cardholder, location information associated with the cardholder, and a name associated with the cardholder. The return record is retrieved from at least one of the memory device associated with the monitoring computer system, a database in communication with the monitoring computer system, networked storage in communication with the monitoring computer system, or an external storage device in communication with the monitoring computer system.

The return record may additionally include a historical record including a historical record of related returns. The historical record of related returns may include a set of second return transaction data wherein the set of second return transaction data is substantially similar to the set of first return transaction data. The set of second return transaction data may be determined to be substantially similar to the set of first return transaction data based on a plurality of characteristics including, without limitation, products returned, categories associated with products returned, locations and times of product returns, time differences between initial purchase of products and returns of products, value of products, and brand of products. For example, the set of second return transaction data may relate to products that are substantially similar to the products returned in the set of first transaction data. Alternately, the set of second return transaction data may relate to products that are different from the products returned in the set of first transaction data. In some examples, all return activity for all cardholders is included in the historical record. The set of second return transaction data may be collected from a plurality of merchant computing devices associated with a plurality of merchants. Accordingly, the set of second return transaction data may include records of related returns that are substantially similar in nature to the returns included in the set of first return transaction data but associated with different merchants. In such examples, the set of second return transaction data may be determined to be substantially similar to the set of first return transaction data based on additional characteristics including, without limitation, the location of the merchants, and the categories of the merchants.

The monitoring computer system also determines if the retrieved return record includes at least one set of second return transaction data associated with at least one second return transaction and transmits the return record to a merchant computing device. In other words, the monitoring computer system determines whether the return record indicates that the cardholder has a previous record of a similar return and, if so determined, transmits the return record to the merchant computing device. The monitoring computer system further processes the at least one set of second return transaction data to generate a cardholder risk assessment and transmits the cardholder risk assessment to the merchant computing device. The cardholder risk assessment may include a numerical score, a qualitative rating, or any other indication that a merchant may review to assess risks related to the return activity of the cardholder.

The monitoring computer system further updates the return record associated with the cardholder with the set of first return transaction data. Accordingly, the return record is updated to include return data associated with the cardholder-initiated return transaction.

The monitoring computer system additionally receives a request for a return dashboard associated with a time period. The request for a return dashboard is received from a merchant computing device. The monitoring computing system retrieves all return records associated with all cardholders associated with the merchant. The monitoring computing system identifies return records associated with the time period from all return records and generates the return dashboard associated with the time period based on the return records associated with the time period. The monitoring computer system transmits the return dashboard to the computing device. The return dashboard accordingly represents a report on all return records for cardholders associated with the requesting merchant over the requested time period.

Described in detail herein are example embodiments of systems and methods for monitoring cardholder return activity associated with cardholder transactions. The systems and methods facilitate, for example, receiving a set of first transaction data associated with a first transaction initiated by a cardholder at a merchant at the monitoring computer system, determining that the first transaction is a first return transaction including a set of first return transaction data, retrieving a return record associated with the cardholder wherein the return record is stored within the memory, and updating the return record associated with the cardholder with the set of first return transaction data.

A technical effect of the systems and methods described herein include at least one of (a) improving return processing decisions by merchants; (b) facilitating cost reduction by merchants through improved decision-making regarding return approvals; (c) reducing the financial risk associated with improper return transactions; and (d) providing analytics of cardholder returns for merchants.

More specifically, the technical effects can be achieved by performing at least one of the following steps: (a) receiving, at the monitoring computer system, a set of first transaction data associated with a first transaction initiated by a cardholder at a merchant; (b) determining that the first transaction is a first return transaction including a set of first return transaction data; (c) retrieving a return record associated with the cardholder, the return record stored within the memory; (d) updating the return record associated with the cardholder with the set of first return transaction data; (e) transmitting the return record to a merchant computing device upon determining that the return record includes at least one set of second return transaction data associated with at least one second return transaction; (f) processing the at least one set of second return transaction data to generate a cardholder risk assessment and transmitting the cardholder risk assessment to the merchant computing device; (g) processing the set of first transaction data to identify the presence of a return indicator; (h) identifying at least one cardholder identifier associated with the set of first return transaction data; (i) retrieving a return record associated with the at least one cardholder identifier from at least one of the memory, a database in communication with the monitoring computer system, and an external system in communication with the monitoring computer system; (j) retrieving a return record associated with the cardholder wherein the return record includes a historical record of related returns, the historical record of related returns including second return transaction data substantially similar to first return transaction data; (k) retrieving second transaction data collected from a plurality of merchant computing devices; (l) receiving return data at the monitoring computer system from the payment network; and (m) receiving, from a merchant computing device, a request for a return dashboard associated with a time period, retrieving all return records associated with all cardholders associated with the merchant, identifying, from all return records, return records associated with the time period, generating, based on return records associated with the time period, the return dashboard associated with the time period, and transmitting the return dashboard to the merchant computing device.

In one embodiment, a computer program is provided, and the program is embodied on a computer readable medium. In an example embodiment, the system is executed on a single computer system, without requiring a connection to a sever computer. In a further embodiment, the system is being run in a Windows® environment (Windows is a registered trademark of Microsoft Corporation, Redmond, Wash.). In yet another embodiment, the system is run on a mainframe environment and a UNIX® server environment (UNIX is a registered trademark of X/Open Company Limited located in Reading, Berkshire, United Kingdom). The application is flexible and designed to run in various different environments without compromising any major functionality. In some embodiments, the system includes multiple components distributed among a plurality of computing devices. One or more components may be in the form of computer-executable instructions embodied in a computer-readable medium.

As used herein, the terms “transaction card,” “financial transaction card,” and “payment card” refer to any suitable transaction card, such as a credit card, a debit card, a prepaid card, a charge card, a membership card, a promotional card, a frequent flyer card, an identification card, a prepaid card, a gift card, and/or any other device that may hold payment account information, such as mobile phones, Smartphones, personal digital assistants (PDAs), key fobs, and/or computers. Each type of transactions card can be used as a method of payment for performing a transaction. In addition, consumer card account behavior can include but is not limited to purchases, management activities (e.g., balance checking), bill payments, achievement of targets (meeting account balance goals, paying bills on time), and/or product registrations (e.g., mobile application downloads).

The systems and processes are not limited to the specific embodiments described herein. In addition, components of each system and each process can be practiced independent and separate from other components and processes described herein. Each component and process also can be used in combination with other assembly packages and processes.

The following detailed description illustrates embodiments of the disclosure by way of example and not by way of limitation. It is contemplated that the disclosure has general application to the monitoring of return cardholder return activity.

FIG. 1is a schematic diagram illustrating an example multi-party transaction card industry system20for enabling ordinary payment-by-card transactions, including return transactions, in which merchants24and card issuers30do not need to have a one-to-one special relationship. Typical financial transaction institutions provide a suite of interactive, online applications to both current and prospective customers. For example, a financial transactions institution may have a set of applications that provide informational and sales information on their products and services to prospective customers, as well as another set of applications that provide account access for existing cardholders.

Embodiments described herein may relate to a transaction card system, such as a credit card payment system using the MasterCard® interchange network. The MasterCard® interchange network is a set of proprietary communications standards promulgated by MasterCard International Incorporated® for the exchange of financial transaction data and the settlement of funds between financial institutions that are members of MasterCard International Incorporated®. (MasterCard is a registered trademark of MasterCard International Incorporated located in Purchase, N.Y.).

In a typical transaction card system, a financial institution called the “issuer” issues a transaction card, such as a credit card, to a consumer or cardholder22, who uses the transaction card to tender payment for a purchase from a merchant24. To accept payment with the transaction card, merchant24must normally establish an account with a financial institution that is part of the financial payment system. This financial institution is usually called the “merchant bank,” the “acquiring bank,” or the “acquirer.” When cardholder22tenders payment for a purchase with a transaction card, merchant24requests authorization from a merchant bank26for the amount of the purchase. The request may be performed over the telephone, but is usually performed through the use of a point-of-sale terminal, which reads cardholder's22account information from a magnetic stripe, a chip, or embossed characters on the transaction card and communicates electronically with the transaction processing computers of merchant bank26. Alternatively, merchant bank26may authorize a third party to perform transaction processing on its behalf. In this case, the point-of-sale terminal will be configured to communicate with the third party. Such a third party is usually called a “merchant processor,” an “acquiring processor,” or a “third party processor.”

Using an interchange network28, computers of merchant bank26or merchant processor will communicate with computers of an issuer bank30to determine whether cardholder's22account32is in good standing and whether the purchase is covered by cardholder's22available credit line. Based on these determinations, the request for authorization will be declined or accepted. If the request is accepted, an authorization code is issued to merchant24.

When a request for authorization is accepted, the available credit line of cardholder's22account32is decreased. Normally, a charge for a payment card transaction is not posted immediately to cardholder's22account32because bankcard associations, such as MasterCard International Incorporated®, have promulgated rules that do not allow merchant24to charge, or “capture,” a transaction until products are shipped or services are delivered. However, with respect to at least some debit card transactions, a charge may be posted at the time of the transaction. When merchant24ships or delivers the products or services, merchant24captures the transaction by, for example, appropriate data entry procedures on the point-of-sale terminal. This may include bundling of approved transactions daily for standard retail purchases. If cardholder22cancels a transaction before it is captured, a “void” is generated. If cardholder22returns products after the transaction has been captured, a “credit” is generated. Interchange network28and/or issuer bank30stores the transaction card information, such as a type of merchant, amount of purchase, date of purchase, in a database120(shown inFIG. 2).

After a purchase has been made, a clearing process occurs to transfer additional transaction data related to the purchase among the parties to the transaction, such as merchant bank26, interchange network28, and issuer bank30. More specifically, during and/or after the clearing process, additional data, such as a time of purchase, a merchant name, a type of merchant, purchase information, cardholder account information, a type of transaction, information regarding the purchased item and/or service, and/or other suitable information, is associated with a transaction and transmitted between parties to the transaction as transaction data, and may be stored by any of the parties to the transaction. In the example embodiment, such additional data may also include data related to the return of products. In the example embodiment, when cardholder22makes a return transaction, a set of first return transaction data is received and transferred among the parties to the transaction. When interchange network28receives the set of first return transaction data, interchange network28routes the set of first return transaction data to database120.

After a transaction is authorized and cleared, the transaction is settled among merchant24, merchant bank26, and issuer bank30. Settlement refers to the transfer of financial data or funds among merchant's24account, merchant bank26, and issuer bank30related to the transaction. Usually, transactions are captured and accumulated into a “batch,” which is settled as a group. More specifically, a transaction is typically settled between issuer bank30and interchange network28, and then between interchange network28and merchant bank26, and then between merchant bank26and merchant24.

As described below in more detail, a monitoring computer system may be used to determine return activity associated with a cardholder, a plurality of cardholders, and to make determinations regarding the risk associated with a cardholder return. Although the systems described herein are not intended to be limited to facilitate such applications, the systems are described as such for exemplary purposes.

FIG. 2is a simplified block diagram of an example computer system100used to monitor cardholder return activity associated with cardholder transactions including a plurality of computer devices connected in communication in accordance with the present disclosure. In the example embodiment, system100is used for receiving a set of first transaction data associated with a first transaction, determining that the first transaction is a first return transaction including a set of first return transaction data, retrieving a return record associated with the cardholder, and updating the return record associated with the cardholder with the set of first return transaction data, as described herein. In other embodiments, the applications may reside on other computing devices (not shown) communicatively coupled to system100, and may monitor cardholder return activity using system100.

More specifically, in the example embodiment, system100includes a monitoring computer system112, and a plurality of client sub-systems, also referred to as client systems114, connected to monitoring computer system112. In one embodiment, client systems114are computers including a web browser, such that monitoring computer system112is accessible to client systems114using the Internet. Client systems114are interconnected to the Internet through many interfaces including a network115, such as a local area network (LAN) or a wide area network (WAN), dial-in-connections, cable modems, special high-speed Integrated Services Digital Network (ISDN) lines, and RDT networks. Client systems114could be any device capable of interconnecting to the Internet including a web-based phone, PDA, or other web-based connectable equipment.

A database server116is connected to database120, which contains information on a variety of matters, as described below in greater detail. In one embodiment, centralized database120is stored on monitoring computer system112and can be accessed by potential users at one of client systems114by logging onto monitoring computer system112through one of client systems114. In an alternative embodiment, database120is stored remotely from monitoring computer system112and may be non-centralized.

Database120may include a single database having separated sections or partitions, or may include multiple databases, each being separate from each other. Database120may store transaction data generated over the processing network including data relating to merchants, account holders, prospective customers, issuers, acquirers, and/or purchases made. Database120may also store account data including at least one of a cardholder name, a cardholder address, an account number, other account identifiers, and transaction information. Database120may also store merchant data including a merchant identifier that identifies each merchant registered to use the network, and instructions for settling transactions including merchant bank account information. Database120may also store purchase data associated with items being purchased by a cardholder from a merchant, and authorization request data.

In the example embodiment, one of client systems114may be associated with acquirer bank26(shown inFIG. 1) while another one of client systems114may be associated with issuer bank30(shown inFIG. 1). Monitoring computer system112may be associated with interchange network28. In the example embodiment, monitoring computer system112is associated with a network interchange, such as interchange network28, and may be referred to as an interchange computer system. Monitoring computer system112may be used for processing transaction data. In addition, client systems114may include a computer system associated with at least one of an online bank, a bill payment outsourcer, an acquirer bank, an acquirer processor, an issuer bank associated with a transaction card, an issuer processor, a remote payment system, customers and/or billers.

FIG. 3is an expanded block diagram of an example embodiment of a computer server system architecture of a processing system122used to monitor cardholder return activity associated with cardholder transactions including other computer devices in accordance with one embodiment of the present disclosure. Components in system122, identical to components of system100(shown inFIG. 2), are identified inFIG. 3using the same reference numerals as used inFIG. 2. System122includes monitoring computer system112, client systems114, and payment systems118. Monitoring computer system112further includes database server116, a transaction server124, a web server126, a user authentication server128, a directory server130, and a mail server132. A storage device134is coupled to database server116and directory server130. Servers116,124,126,128,130, and132are coupled in a local area network (LAN)136. In addition, an issuer bank workstation138, an acquirer bank workstation140, and a third party processor workstation142may be coupled to LAN136. In the example embodiment, issuer bank workstation138, acquirer bank workstation140, and third party processor workstation142are coupled to LAN136using network connection115. Workstations138,140, and142are coupled to LAN136using an Internet link or are connected through an Intranet.

Each workstation138,140, and142is a personal computer having a web browser. Although the functions performed at the workstations typically are illustrated as being performed at respective workstations138,140, and142, such functions can be performed at one of many personal computers coupled to LAN136. Workstations138,140, and142are illustrated as being associated with separate functions only to facilitate an understanding of the different types of functions that can be performed by individuals having access to LAN136.

Monitoring computer system112is configured to be operated by various individuals including employees144and to third parties, e.g., account holders, customers, auditors, developers, consumers, merchants, acquirers, issuers, etc.,146using an ISP Internet connection148. The communication in the example embodiment is illustrated as being performed using the Internet, however, any other wide area network (WAN) type communication can be utilized in other embodiments, i.e., the systems and processes are not limited to being practiced using the Internet. In addition, and rather than WAN150, local area network136could be used in place of WAN150. Monitoring computer system112is also configured to be communicatively coupled to payment systems118. Payment systems118include computer systems associated with merchant bank26, interchange network28, issuer bank30(all shown inFIG. 1), and interchange network28. Additionally, payments systems118may include computer systems associated with acquirer banks and processing banks. Accordingly, payment systems118are configured to communicate with monitoring computer system112and provide transaction data as discussed below.

In the example embodiment, any authorized individual having a workstation154can access system122. At least one of the client systems includes a manager workstation156located at a remote location. Workstations154and156are personal computers having a web browser. Also, workstations154and156are configured to communicate with monitoring computer system112.

Also, in the example embodiment, web server126, application server124, database server116, and/or directory server130may host web applications, and may run on multiple server systems112. The term “suite of applications,” as used herein, refers generally to these various web applications running on server systems112.

Furthermore, user authentication server128is configured, in the example embodiment, to provide user authentication services for the suite of applications hosted by web server126, application server124, database server116, and/or directory server130. User authentication server128may communicate with remotely located client systems, including a client system156. User authentication server128may be configured to communicate with other client systems138,140, and142as well.

FIG. 4illustrates an example configuration of a user system202operated by a user201, such as cardholder22(shown inFIG. 1). User system202may include, but is not limited to, client systems114,138,140, and142, payment systems118, workstation154, and manager workstation156. In the example embodiment, user system202includes a processor205for executing instructions. In some embodiments, executable instructions are stored in a memory area210. Processor205may include one or more processing units, for example, a multi-core configuration. Memory area210is any device allowing information such as executable instructions and/or written works to be stored and retrieved. Memory area210may include one or more computer readable media.

User system202also includes at least one media output component215for presenting information to user201. Media output component215is any component capable of conveying information to user201. In some embodiments, media output component215includes an output adapter such as a video adapter and/or an audio adapter. An output adapter is operatively coupled to processor205and operatively couplable to an output device such as a display device, a liquid crystal display (LCD), organic light emitting diode (OLED) display, or “electronic ink” display, or an audio output device, a speaker or headphones.

In some embodiments, user system202includes an input device220for receiving input from user201. Input device220may include, for example, a keyboard, a pointing device, a mouse, a stylus, a touch sensitive panel, a touch pad, a touch screen, a gyroscope, an accelerometer, a position detector, or an audio input device. A single component such as a touch screen may function as both an output device of media output component215and input device220. User system202may also include a communication interface225, which is communicatively couplable to a remote device such as monitoring computer system112. Communication interface225may include, for example, a wired or wireless network adapter or a wireless data transceiver for use with a mobile phone network, Global System for Mobile communications (GSM),3G, or other mobile data network or Worldwide Interoperability for Microwave Access (WIMAX).

Stored in memory area210are, for example, computer readable instructions for providing a user interface to user201via media output component215and, optionally, receiving and processing input from input device220. A user interface may include, among other possibilities, a web browser and client application. Web browsers enable users, such as user201, to display and interact with media and other information typically embedded on a web page or a website from monitoring computer system112. A client application allows user201to interact with a server application from monitoring computer system112.

FIG. 5illustrates an example configuration of a server system301such as monitoring computer system112(shown inFIGS. 2 and 3). Server system301may include, but is not limited to, database server116, transaction server124, web server126, user authentication server128, directory server130, and mail server132. In the example embodiment, server system301monitors cardholder return activity, as described below.

Server system301includes a processor305for executing instructions. Instructions may be stored in a memory area310, for example. Processor305may include one or more processing units (e.g., in a multi-core configuration) for executing instructions. The instructions may be executed within a variety of different operating systems on the server system301, such as UNIX, LINUX, Microsoft Windows®, etc. It should also be appreciated that upon initiation of a computer-based method, various instructions may be executed during initialization. Some operations may be required in order to perform one or more processes described herein, while other operations may be more general and/or specific to a particular programming language (e.g., C, C#, C++, Java, or other suitable programming languages, etc.).

Processor305is operatively coupled to a communication interface315such that server system301is capable of communicating with a remote device such as a user system or another server system301. For example, communication interface315may receive requests from user system114via the Internet, as illustrated inFIGS. 2 and 3.

Processor305may also be operatively coupled to a storage device134. Storage device134is any computer-operated hardware suitable for storing and/or retrieving data. In some embodiments, storage device134is integrated in server system301. For example, server system301may include one or more hard disk drives as storage device134. In other embodiments, storage device134is external to server system301and may be accessed by a plurality of server systems301. For example, storage device134may include multiple storage units such as hard disks or solid state disks in a redundant array of inexpensive disks (RAID) configuration. Storage device134may include a storage area network (SAN) and/or a network attached storage (NAS) system.

In some embodiments, processor305is operatively coupled to storage device134via a storage interface320. Storage interface320is any component capable of providing processor305with access to storage device134. Storage interface320may include, for example, an Advanced Technology Attachment (ATA) adapter, a Serial ATA (SATA) adapter, a Small Computer System Interface (SCSI) adapter, a RAID controller, a SAN adapter, a network adapter, and/or any component providing processor305with access to storage device134.

FIG. 6is a data flow diagram of monitoring computer system112. Monitoring computer system112receives a set of first transaction data610associated with a first transaction initiated by cardholder22at merchant24. For example, cardholder22may initiate a transaction with merchant24using a payment card such as a credit card, a debit card, or a prepaid card. In at least some cases, such transactions are return transactions that are initiated subsequent to an initial purchase of products. In other words, cardholder22initiates a return transaction where cardholder22returns products and obtains a partial or complete refund of a purchase price for the initial purchase of the products. Monitoring computer system112is in networked communication with payment system118. Payment systems118include computer systems associated with merchant bank26, interchange network28, issuer bank30(all shown inFIG. 1), and interchange network28. In the example embodiment, payment system118is merchant bank computer26that receives data related to a return transaction initiated by cardholder22. Monitoring computer system112receives set of first transaction data610from payment system118, which is merchant bank computer26in the example embodiment.

Monitoring computer system112determines that the transaction initiated by cardholder22is a first return transaction including set of first return transaction data612. Monitoring computer system112determines that the first transaction is a first return transaction by processing set of first transaction data610to identify the presence of return indicator614. Return indicator614may include, for example and without limitation, a negative transaction amount reflecting a payment by the merchant to a cardholder, a reference to a previous financial transaction between the cardholder and the merchant, and an explicit indicator identifying the fact that the first transaction is a return transaction. For example, data contained in set of first transaction data610may include as follows (Table 1):

In Table 1, Transaction 00002 may be identified as a return transaction because a negative transaction amount is listed that constitutes a return indicator614. Transaction 00003 may be identified as a return transaction because a negative transaction amount is listed and the transaction is related to Transaction 00001.

An explicit indicator may include, for example, a flag indicating that a transaction is a return transaction. In one example, set of first transaction data610may include a record for “Transaction Type” with a possible value of “Return”. Accordingly, when monitoring computer system112processes set of first transaction data610and identifies a value of “Return”, monitoring computer system112may accordingly identify the value as an explicit indicator that serves as return indicator614. In another example, set of first transaction data610may include a record for “Return Transaction” with possible values of, “Y” and “N”. Similarly, when monitoring computer system112processes the set of first transaction data and identifies a value of “Y”, monitoring computer system112may accordingly identify the value as an explicit indicator that serves as return indicator614.

Monitoring computer system retrieves return record620associated with cardholder22. Return record620represents a record of return data associated with cardholder22. In some examples, return record620includes return data associated with returns to merchant24. Accordingly, in this example, return record620is specifically generated for each combination of merchant24and cardholder22. In other examples, return record620includes return data associated with returns to all merchants in the same category as merchant24. For example, if merchant24is a sporting goods store, return record620may include return data associated with cardholder for all sporting goods stores. Alternately, any categorization of merchants24may be applied to define return record620. In additional examples, return record620includes return data associated with returns of similar products to the product returned by cardholder22.

Return record620includes cardholder record identifier622that is used to compare set of first return transaction data612to return record620. Monitoring computer system112retrieves return record620from memory310by identifying at least one cardholder identifier616associated with set of first return transaction data612and retrieving return record620associated with at least one cardholder identifier616by comparison to cardholder record identifier622. Cardholder identifier616may be any identifier that can connect data stored in set of first transaction data610to the return record620. Accordingly, cardholder identifier616may include, without limitation, an account number associated with cardholder22, location information associated with cardholder22, and a name associated with cardholder22. The return record620is retrieved from at least one of memory device310associated with the monitoring computer system112, a database in communication with monitoring computer system112, networked storage in communication with monitoring computer system112, or an external storage device in communication with monitoring computer system112.

Return record620may additionally include historical record624including historical record of related returns. Historical record624of related returns may include set of second return transaction data626wherein set of second return transaction data626is substantially similar to set of first return transaction data612. Set of second return transaction data626may be determined to be substantially similar to set of first return transaction data612based on a plurality of characteristics including, without limitation, products returned, categories associated with products returned, locations and times of product returns, time differences between initial purchase of products and returns of products, value of products, and brand of products. Set of second return transaction data626may be collected from a plurality of payment systems118associated with plurality of merchants24. Accordingly, set of second return transaction data626may include records of related returns that are substantially similar in nature to the returns included in set of first return transaction data612but associated with different merchants24. In such examples, set of second return transaction data626may be determined to be substantially similar to set of first return transaction data612based on additional characteristics including, without limitation, the location of merchants24, and the categories of merchants24. When return record620is retrieved, historical return record624and second return transaction data626are also retrieved.

Monitoring computer system112also determines if retrieved return record620includes at least one set of second return transaction data626associated with at least one second return transaction and transmits return record620to a payment system118such as merchant computing device26. In other words, monitoring computer system112determines whether return record620indicates that cardholder22has a previous record of a similar return and, if so determined, transmits return record620to payment system118. Receiving return record620may be valuable to merchant24receiving over payment system118because return record620may provide information about cardholder22that may be of value to merchant24. For example, a long history of returns in return record620may indicate that the instant return should be further scrutinized due to risk of damaged goods, fraud, or other conditions of concern to merchant24. Return record620may be transmitted using any communication method including, without limitation, email, SMS, network transfer, and web service.

Monitoring computer system112further processes at least one set of second return transaction data626to generate cardholder risk assessment630and transmits cardholder risk assessment630to payment system118. Cardholder risk assessment630represents a risk determination associated with the instant transaction made by cardholder22in returning goods to merchant24. Cardholder risk assessment630may represent a risk of fraud, damaged goods, improper returns, or any other type of risk relevant to set of first return transaction data612. Cardholder risk assessment630may include a numerical score, a qualitative rating, or any other indication that merchant24may review to assess risks related to the return activity of the cardholder. Merchant24may utilize return record620and cardholder risk assessment630to make a determination on whether to accept the instant return from cardholder22or to scrutinize it further.

Monitoring computer system112further updates return record620associated with cardholder22with set of first return transaction data612. Accordingly, return record620is updated to include return data associated with the cardholder-initiated return transaction. More specifically, monitoring computer system112builds return record620over time by updating with set of first return transaction data612in historical record624associated with cardholder record identifier622. Set of first return transaction data612is stored in return record620as particular set of second return transaction data626.

Monitoring computer system112additionally receives a request for a return dashboard640associated with a time period. The request for return dashboard640is received from payment system118associated with merchant24. Monitoring computing system112retrieves return records620associated with all cardholders22associated with merchant24. Monitoring computing system112identifies return records620associated with the time period from all return records620and generates return dashboard640associated with the time period based on return records620associated with the time period. Monitoring computer system112transmits return dashboard640to payment system118. Return dashboard640accordingly represents a report on all return records620for cardholders22associated with requesting merchant24over the requested time period.

FIG. 7is a simplified diagram of an example method700of monitoring cardholder return activity associated with cardholder transactions using monitoring computer system112(shown inFIG. 2). Monitoring computer system112receives710a set of first transaction data associated with a first transaction initiated by a cardholder at a merchant. Receiving represents monitoring computer system112receiving set of first transaction data610(shown inFIG. 6).

Monitoring computer system112also determines720that first transaction is a first return transaction including a set of first return transaction data. Determining720represents monitoring computer system112determining that set of first return transaction data612includes return indicator614(shown inFIG. 6).

Monitoring computer system112additionally retrieves730a return record associated with the cardholder, the return record stored within the memory. Retrieving730represents retrieving return record620(shown inFIG. 6) from memory310(shown inFIG. 3). Return record620may additionally include historical record624(shown inFIG. 6). In at least some examples, return record620is retrieved based upon comparison between cardholder record identifier622(shown inFIG. 6) and cardholder identifier616(shown inFIG. 6).

Monitoring computer system112also updates740return record associated with the cardholder with the set of first return transaction data. Updating740represents storing set of first return transaction data612with return record620associated with cardholder22(shown inFIG. 1)

FIG. 8is a diagram800of components of one or more example computing devices that may be used in the environment shown inFIG. 6.FIG. 8further shows a configuration of databases including at least database120(shown inFIG. 1). Database120is coupled to several separate components within computer system112, which perform specific tasks.

Computer system112includes a receiving component802for receiving a set of first transaction data610(shown inFIG. 6). Computer system112also includes a determining component804for determining that a first transaction is a first return transaction including set of first return transaction data612(shown inFIG. 6). Computer system112additionally includes a retrieving component806for retrieving return record620(shown inFIG. 6). Computer system112additionally includes an updating component808for updating return record620with set of first return transaction data612.

In an exemplary embodiment, database120is divided into a plurality of sections, including but not limited to, a return identifier section810, a historical return record section812, and a risk assessment algorithm section814. These sections within database120are interconnected to update and retrieve the information as required.