Patent ID: 7828204

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 being utilized at said merchant for the first time, using an active file manager apparatus intermediate said terminal and said payment processing network; responsive to said determining step indicating that said account number is being utilized at said merchant for the first time: facilitating said issuer obtaining an authorization message, through said payment processing network, for said account number; facilitating obtaining an issuer authorization decision; approving said putative transaction, with said active file manager, 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.