Patent ID: 8584936

Claim:
A method for authorization of usage of a payment device at a merchant, said payment device having an associated account number and being issued by an issuer coupled to a payment processing network, said method comprising the steps of: facilitating obtaining said account number in connection with a putative transaction with a terminal of said merchant; facilitating determining whether said account number is in an active file of said merchant which indicates whether said account number is known to said merchant, using an apparatus intermediate said terminal and said payment processing network; responsive to said determining step indicating that said account number is not in said active file of said merchant, such that said account number is not known to said merchant; facilitating said issuer obtaining an authorization message, through said payment processing network, for said account number; facilitating obtaining an issuer authorization decision; facilitating checking, using said apparatus, whether said account number is ineligible for said putative transaction, without use of said issuer authorization decision; responsive to said checking indicating that said account number is not ineligible for said putative transaction, approving said putative transaction, with said apparatus, without use of said issuer authorization decision; responsive to said issuer authorization decision, facilitating setting a spending limit for said account number; facilitating conducting subsequent putative transactions for said account number; facilitating determining that a parameter associated with said account number is reaching a predetermined relationship with said spending limit; and responsive to said determining that said parameter is reaching said predetermined relationship, facilitating obtaining a new issuer authorization decision to adjust a spendable balance associated with said account number.