Patent ID: 8666894

Claim:
A method of remotely authenticating credit card transactions of a consumer comprising: receiving an authorization request from a merchant via a first communication link, the merchant having an identified location; determining a location of a mobile device associated with the consumer; comparing, using a processor, the location of the merchant with the location of the mobile device; based on the comparison, determining whether predetermined location criteria is met, wherein the predetermined location criteria comprises a maximum distance between the location of the mobile device and the location of the merchant; sending an authorization code to the merchant to complete the credit card transaction if the predetermined location criteria is met; and sending a communication via a second communication link to the mobile device if the predetermined location criteria is not met; if a rejection is received in response to the communication, sending a denial code to the merchant to disallow the transaction and warning the merchant that an unauthorized credit card transaction is being attempted; if a validation is received in response to the communication, sending the authorization code to the merchant to complete the credit card transaction; and if no response is received in response to the communication within a predefined period of time, sending an authorization code to the merchant to complete the credit card transaction.