System and method for distributed real time authorization of payment transactions

Abstract

Systems and methods enable the real-time authorization of payment transactions initiated by personal and mobile computing devices. In one embodiment, a financial account server associated with a payment recipient, or payee, is configured to receive a payment data envelope from a payee computing device. The payment data envelope can further include information that allows for the authentication of the payee and payer identities as well as payment restrictions or instructions. The payee financial account server processes the payment data envelope and transmits the envelope to a financial account server associated with the payer. The payer financial server authenticates the payer identification, authorizes the payment transaction, and transmits a transaction status message to the payee financial server, which in turn transmits the message to the payee computing device.

What is claimed is: 
     
         1 . A system for authorizing payment transactions comprising:
 a first processor associated with a payee, the first processor coupled to a first data storage device including non-transitory computer-readable medium with computer-readable code for instructing the first processor; and   a second processor associated with a payer, the second processor coupled to a second data storage device including non-transitory computer-readable medium with computer-readable code for instructing the second processor;   wherein when the computer-readable code is executed by the first and second processors, the first and second processors perform operations comprising:   (a) storing, by a first processor, to the first data storage device, payee data and associating, by the first processor, the payee data with payee transaction data;   (b) receiving, by the first processor, a first payment data envelope associated with a payment transaction, from a payee device, the first payment data envelope comprising a payee alias, a payee shared secret, and crypto data, including encrypted payee data and encrypted payee transaction data;   (c) decrypting, by the first processor, the encrypted payee data from the payment data envelope using the payee shared secret, retrieving, by the first processor, the stored payee data using the decrypted payee transaction data and comparing, by the first processor, the decrypted payee data with the retrieved payee data;   (d) verifying, by the first processor, a payee identity based on the comparison;   (e) based on verifying the payee identity, generating by the first processor an IP address request message comprising a payer alias;   (f) transmitting, by the first processor, based on the verification of the payee identity, the IP address request message to an RKM server;   (g) receiving, by the first processor, a second-processor IP address from the RKM server; and   (h) transmitting, by the first processor, the first payment data envelope to the second processor using the second-processor IP address.   
     
     
         2 . The system of  claim 1  wherein the first payment data envelope further comprises an instruction data array and the processors are further configured to perform the operations of:
 (a) receiving, by the first processor, from the second processor, a transaction status message having a transaction flag with a value of authorized or declined, wherein:
 (i) when the transaction flag has a value of authorized, the first processor creates a temporary database record of the payment transaction that is used to update a payee account balance; and 
 (ii) when the transaction flag has a value of declined, the first processor transmits the first payment data envelope to a third processor based on the instruction data array. 
 
 
     
     
         3 . A system for authorizing payment transactions comprising:
 a first processor associated with a payee, the first processor coupled to a first data storage device including non-transitory computer-readable medium with computer-readable code for instructing the first processor; and   a second processor associated with a payer, the second processor coupled to a second data storage device including non-transitory computer-readable medium with computer-readable code for instructing the second processor;   wherein when the computer-readable code is executed by the first and second processors, the first and second processors perform operations comprising:   (a) storing, by the second processor, to the second data storage device, a consumer PIN and biometric information and associating, by the second processor, the consumer PIN and biometric information with consumer payment information;   (b) receiving, by the second processor, a first payment data envelope associated with a payment transaction, from a payee device, the first payment data envelope comprising a payee alias, a consumer shared secret and crypto data including encrypted biometric data, encrypted PIN, and encrypted payment information;   (c) decrypting, by the second processor, the encrypted consumer PIN, biometric information and payment information from the first payment data envelope using the consumer shared secret, retrieving, by the second processor, the stored consumer PIN and biometric information using the decrypted payment information and comparing, by the second processor, the decrypted consumer PIN and biometric information with the retrieved consumer PIN and biometric information;   (d) validating, by the second processor, the payment transaction based on the comparison;   (e) based on validating the payment transaction, generating, by the second processor, a transaction status message corresponding to the validation;   (f) transmitting, by the second processor, the alias of the payee to an RKM server;   (g) receiving, by the second processor, an IP address from the RKM server; and   (h) transmitting, by the second processor, the transaction status message to the first processor using the IP address.   
     
     
         4 . The system of  claim 3 , wherein the processors are further configured to perform the operations comprising:
 (a) receiving, by the second processor, a second payment data envelope from an identity management server;   (b) storing, by the second processor, payer data to the second data storage device and associating, by the second processor, the payer data with the consumer payment information; and wherein   (c) the step of authorizing, the payment transaction further comprises the operations of (i) retrieving, by the second processor, the payer data, (ii) verifying a payer identity by comparing, by the second processor, payer data in the first payment data envelope with payer data in the second payment data envelope.   
     
     
         5 . The system of  claim 3 , wherein the processors are further configured to perform the operations comprising:
 (a) receiving, by the second processor, a second payment data envelope from an identity management server;   (b) storing, by the second processor, payer data to the second data storage device and associating, by the second processor, the payer data with the consumer payment information; and wherein   (c) the step of authorizing the payment transaction further comprises the operations of (i) retrieving, by the second processor, the payer data, (ii) verifying a payer identity by comparing, by the second processor, payer data in the second payment data envelope with the retrieved payer data.   
     
     
         6 . The system of  claim 3 , wherein the processors are further configured to perform the operations comprising:
 (a) storing, by the second processor, one or more payment restrictions to the second data storage device;   (b) associating, by the second processor, the one or more payment restrictions with the payer; and   (c) determining, by the second processor, whether data in the first payment data envelope or a second payment data envelope complies with the one or more payment restrictions.   
     
     
         7 . The system of  claim 6 , wherein the one or more payment restrictions comprise a predetermined upper limit on the payment amount. 
     
     
         8 . The system of  claim 6 , wherein the one or more payment restrictions comprise a geographic limitation on the location of the payment transaction. 
     
     
         9 . The system of  claim 6 , wherein the one or more payment restrictions comprise a limitation on the types of products subject to a payment transaction. 
     
     
         10 . The system of  claim 3 , wherein:
 (a) the first payment data envelope further comprises payment instructions;   (b) the payment information comprises a cost amount; and   (c) the second processor is further configured to perform the operations of (i) determining a payment amount based on the payment instructions and the cost amount, and (ii) incorporating the payment amount into the transaction status message.   
     
     
         11 . The system of  claim 10 , wherein the payment instructions include a gratuity amount and determining the payment amount comprises the operation of adding the gratuity amount to the cost amount. 
     
     
         12 . The system of  claim 10 , wherein the payment instructions include a discount amount and determining the payment amount comprises the operation of subtracting the discount amount from the cost amount.