Patent ID: 8442894

Claim:
A method for providing guaranteed merchant payment for a card-not-present transaction, the method comprising: determining, by a computing device processor, authentication of a customer associated with a payment card, wherein the authentication is determined by one of an entity issuing the payment card or a third party under a directive of the entity; receiving, at a computing device, notification of a first card-not-present transaction conducted between the customer, using the payment card, and a first merchant; verifying, by a computing device processor, a nexus between the first card-not-present transaction and the authentication, wherein verifying the nexus includes one of verifying that the authentication and the first card-not-present transaction occurred during a same Internet session or verifying that the first card-not-present transaction occurred within a predetermined time limit after the authentication; and in response to verifying the nexus, indicating, by a computing device processor, in a first transaction record that the first merchant is guaranteed payment, for the first card-not-present transaction, by the entity issuing the payment card based on the authentication of the customer, wherein the indication in the first transaction record provides for the first merchant to be paid for the first card-not-present transaction based on either the customer failing to fulfill their payment obligation for the transaction or the transaction being deemed fraudulent.