WO2005065156A2

WO2005065156A2 - Global positioning system

Info

Publication number: WO2005065156A2
Application number: PCT/US2004/041647
Authority: WO
Inventors: Charles Williams
Original assignee: First Data Corporation
Priority date: 2003-12-23
Filing date: 2004-12-14
Publication date: 2005-07-21
Also published as: WO2005065156A3

Abstract

The present teachings describe a system for processing financial transactions (100). In one embodiment, the system includes a remote terminal (104) adapted to identify the location of financial transactions via global positioning system (GPS) information such that the remote terminal (104) acquires transaction information from a user and transmits a first signal indicative of transaction information and GPS information. In addition, the system (100) includes an authorizing host adapted (108) to receive the first signal transmitted by the remote terminal (104) such that the authorizing host (108) evaluates the risk associated with financial transactions based, at least in part, on the GPS information so as to determine whether to accept or decline the financial transaction. The present teachings further describe devices and methods of acquiring GPS information for the purpose of managing risk for financial transactions.

Description

GLOBAL POSITIONING SYSTEM TO MANAGE RISK FOR POS TERMINAL

Background of the Invention Field of the Invention [0001] The present invention relates to financial transactions and, in particular, to a system and method of risk assessment, whereby global positioning system (GPS) information is acquired for validation of financial transactions.

Description of the Related Art [0002] A typical financial transaction involves a form of payment in exchange for goods and services at a point of sale. In most instances, a customer provides the form of payment, such as a check draft or credit card requisition, to a merchant in exchange for the goods and services. The check draft and the credit request are often regarded as non- cash promissory payments that instruct the customer's bank or credit guarantor to pay the merchant the amount requested by the customer. In some situations, the funds promised to the merchant by the check draft or credit request may not be paid due to reasons such as insufficient funds in the customer's checking account, account delinquency, or fraud. As a result, the merchant may be susceptible to risk when a check draft or credit card requisition is received as payment for goods and services. [0003] Some merchants choose to manage risk by subscribing to a payment approval agency that assesses the risk associated with proffered promissory payments. For a given financial transaction, a subscribed merchant sends a transaction approval request to the agency with information, such as the payment amount and the method of payment identifying information. The agency assesses the risk and generates a risk score based on the information received. The agency then either approves or declines the transaction based on the generated risk score. The level of subscription to such an agency may vary, wherein the agency may assume the risk of the transaction by either guaranteeing the check or purchasing the check from the merchant. Thus, it is in the interest of the agency to accurately assess the risks associated with financial transactions. [0004] As is understood, the risk of a particular transaction is often based upon the physical location at which the sale is taking place. In some areas, the likelihood that a proffered promissory payment will not be backed by sufficient funds, or will be otherwise fraudulent, is increased. Hence, risk assessment agencies typically want to know the physical location of the store front that is requesting the risk assessment of the proffered payment as that physical location is an important variable in determining risk score. [0005] Generally, merchants are equipped with a store front transaction device, which is communicatively linked to the risk assessment agency. These transaction devices have the ability to transmit information about the proffered promissory payment to the risk assessment agency as well as information that identifies the merchant. However, many of these transaction devices are portable and merchants may physically move their store location or the location of the transaction device. In this circumstance, the risk factors of accepting a proffered promissory payment may have changed as a result in the change in location without the risk assessment agency being aware of the change. [0006] One particular circumstance where this problem occurs involves traveling merchants. Many merchants travel from location to location to sell products. An example of such a merchant includes those who sell crafts at state fairs and craft shows. The location of the sales transactions can vary quite widely within towns or states or even between states. Some of these merchants may wish to accept proffered promissory payments and may have a transaction device that they can connect to the risk assessment agency via telephone, cellular telephone or the like. In these circumstances, the risk of accepting checks or other proffered promissory payments can vary quite significantly based on location and the risk assessment agency generally does not have the ability to determine where the traveling merchant is located. [0007] Based on the foregoing, there is a need for an improved method and system for assessing the risk of accepting a proffered promissory payment To this end, there is a need for a system and method that is capable of discerning the physical location at which the transaction is occurring such that the risk assessment can take this factor into account when determining the risk of accepting the proffered promissory payment.

Summary of the Invention [0008] A system for processing financial transactions comprises, in one embodiment, at least one remote terminal that identifies the location of a financial transaction, where the remote terminal also acquires transaction information about a proffered promissory payment and transmits a signal indicative of the transaction information and the location information. In addition, the system comprises an authorizing host that receives the signal transmitted by the remote terminal where the authorizing host evaluates the risk associated with the financial transaction based, at least in part, on the location information so as to determine whether to accept or decline the financial transaction, and where the authorizing host transmits a signal back to the remote terminal indicative of acceptance or decline of the proffered promissory payment. [0009] Further, in an embodiment, the at least one remote terminal includes a GPS receiver that receives GPS signals and determines the location coordinates of the at least one remote terminal based upon the GPS signal. In an embodiment, the authorizing host includes a risk assessment component that evaluates the risk associated with the financial transaction, where the risk assessment component adjusts the risk assessment based upon the location information received from the at least one remote terminal. In an embodiment, the risk assessment component categorizes an approved location for the at least one remote terminal, and the risk assessment component performs a standard risk assessment when the location information indicates that the at least one remote terminal is at the approved location. [0010] Further, in an embodiment, the risk assessment component adjusts the risk assessment when the location information indicates that the at least one remote terminal is not in the approved location by evaluating risk factors associated with the new location. In an embodiment, the risk factors for the new location include payment history on other proffered promissory payments in the same location. In an embodiment, the authorization host categorizes a plurality of approved locations for the at least one remote terminal such that the merchant can move the at least one remote terminal from one location to another. In an embodiment, the risk assessment component declines transactions when the location information provided by the at least one remote terminal indicates the at least one remote terminal is not in one of the plurality of approved locations. [0012] Further, in an embodiment, the plurality of approved locations are defined as a region in which the GPS coordinates provided by the at least one remote terminal must fall within. In an embodiment, the authorization host has a data structure associated therewith that maps zip codes to GPS coordinates such that the authorization host can determine if a GPS coordinate falls within a particular zip code and the approved location for the at least one remote terminal is defined in terms of approved zip codes. In an embodiment, the at least one remote terminal comprises a plurality of remote terminals. In an embodiment, the signal comprises a data package having transaction information selected from the group consisting of store number, identification number, clerk number, transaction number, date, dollar amount, check information, cash information, and GPS information. [0013] A system for processing financial transactions comprises, in one embodiment, at least one remote terminal that identifies the location of a financial transaction with a GPS signal, where the remote terminal also acquires transaction information about a proffered payment and transmits a signal indicative of the transaction information and the location information. In addition, the system comprises an authorizing host that receives the signal transmitted by the remote terminal where the authorizing host evaluates the risk associated with the financial transaction based, at least in part, on the location information so as to determine whether to accept or decline the financial transaction, and where the authorizing host transmits a signal back to the remote terminal indicative of acceptance or decline of the proffered payment. [0014] Further, in an embodiment, the proffered payment includes a proffered promissory payment. In an embodiment, the proffered promissory payment includes a payment by check. In an embodiment, the at least one remote terminal includes a GPS receiver that receives the GPS signal and determines the location coordinates of the at least one remote terminal based upon the GPS signal. In an embodiment, the authorizing host includes a risk assessment component that evaluates the risk associated with the financial transaction, and the risk assessment component adjusts the risk assessment based upon the location information received from the at least one remote terminal. [0015] Further, in an embodiment, the risk assessment component categorizes an approved location for the at least one remote terminal, and the risk assessment component performs a standard risk assessment when the location information indicates that the at least one remote terminal is at the approved location. In an embodiment, the risk assessment component adjusts the risk assessment when the location information indicates that the at least one remote terminal is not in the approved location by evaluating risk factors associated with the new location. In an embodiment, the risk factors for the new location include payment history on other proffered payments in the same location. [0016] Further, in an embodiment, the authorization host categorizes a plurality of approved locations for the at least one remote terminal such that the merchant can move the at least one remote terminal from one location to another. In an embodiment, the risk assessment component declines transactions when the location information provided by the at least one remote terminal indicates that the at least one remote terminal is not in one of the plurality of approved locations. In an embodiment, the plurality of approved locations are defined as a region in which the GPS coordinates provided by the at least one remote terminal must fall within. [0017] Further, in an embodiment, the authorization host has a data structure associated therewith that maps zip codes to GPS coordinates such that the authorization host can determine if a GPS coordinate falls within a particular zip code and where the approved location for the at least one remote terminal is defined in terms of approved zip codes. In an embodiment, the at least one remote terminal comprises a plurality of remote terminals. In an embodiment, the signal comprises a data package having transaction information selected from the group consisting of store number, identification number, clerk number, transaction number, date, dollar amount, check information, cash information, and GPS information. [0018] A method of determining the risk of accepting a proffered promissory payment, in one embodiment, comprises determining the location of a remote transaction device adapted to send transaction information about the proffered promissory payment to an authorizing host and sending the transaction information and the location information to the authorizing host. In addition, the method comprises performing a risk assessment of accepting the proffered promissory payment based upon the transaction information and the location information and sending a signal back to the remote transaction device indicative of whether the proffered promissory payment is to be accepted or declined. [0019] Further, in an embodiment, determining the location of a remote transaction device comprises receiving GPS signals and determining a GPS based location of the remote transaction device. In an embodiment, performing a risk assessment of accepting the proffered promissory payment comprises determining whether the GPS based location is in at least one pre-approved location for the remote transaction device. In an embodiment, determining whether the GPS based location is in the at least one pre-approved location comprises determining whether the GPS based location is within a region defined by a pre-approved zip code for the remote transaction device. [0020] Further, in an embodiment, performing the risk assessment further comprises determining a risk score of accepting the proffered promissory payment based upon the GPS information, the information about the merchant, the amount of the proffered promissory payment, and the type of transaction to determine the risk score. In an embodiment, the risk score is adjusted based upon whether the GPS information is within a pre-approved location for the remote transaction device. In an embodiment, performing the risk assessment of accepting the proffered promissory payment comprises determining whether the GPS based location is in the at least one pre-approved location and comprises determining which of a plurality of pre-approved locations the GPS location falls within. [0021] Further, in an embodiment, a risk score is calculated for the proffered promissory payment based upon risk factors associated with the pre-approved location if it is determined that the GPS location falls within the pre-approved location. In an embodiment, a risk score is calculated for the proffered promissory payment based upon new risk factors associated with the GPS location when the GPS location does not fall within a pre-approved location. [0022] A method of determining the risk of accepting a proffered payment, in one embodiment, comprises determining the location of a remote transaction device with a GPS signal, where the remote terminal is adapted to send transaction information about the proffered payment to an authorizing host and sending the transaction information and the location information to the authorizing host. In addition, the method comprises performing a risk assessment of accepting the proffered payment based upon the transaction information and the location information and sending a signal back to the remote transaction device indicative of whether the proffered payment is to be accepted or declined. [0023] Further, in an embodiment, determining the location of a remote transaction device comprises receiving the GPS signal and determining a GPS based location of the remote transaction device. In an embodiment, performing a risk assessment of accepting the proffered payment comprises determining whether the GPS based location is in at least one pre-approved location for the remote transaction device. In an embodiment, determining whether the GPS based location is in the at least one pre- approved location comprises determining whether the GPS based location is within a region defined by a pre-approved zip code for the remote transaction device. [0024] Further, in an embodiment, performing the risk assessment further comprises determining a risk score of accepting the proffered payment based upon the GPS information, the information about the merchant, the amount of the proffered payment, and the type of transaction to determine the risk score. In an embodiment, the risk score is adjusted based upon whether the GPS information is within a pre-approved location for the remote transaction device. In an embodiment, performing the risk assessment of accepting the proffered payment comprises determining whether the GPS based location is in the at least one pre-approved location and comprises determining which of a plurality of pre-approved locations the GPS location falls within. [0025] Further, in an embodiment, a risk score is calculated for the proffered payment based upon risk factors associated with the pre-approved location if it is determined that the GPS location falls within the pre-approved location. In an embodiment, a risk score is calculated for the proffered payment based upon new risk factors associated with the GPS location when the GPS location does not fall within a pre- approved location. In an embodiment, determining the risk of accepting a proffered payment includes determining the risk of accepting a proffered promissory payment. In an embodiment, determining the risk of accepting a proffered promissory payment includes determining the risk of accepting a payment by check. [0026] A system for determining the risk of accepting a proffered payment, in one embodiment, comprises a means for determining the location of at least one remote transaction device, where the at least one remote transaction device is adapted to send transaction information about the proffered payment to an authorizing host. In addition, the system comprises a means for sending the transaction information and the location information to the authorizing host and a means for performing a risk assessment of accepting the proffered payment based upon the transaction information and the location information. Moreover, the system comprises a means for sending a signal back to the at least one remote transaction device indicative of whether the proffered payment is to be accepted or declined. [0027] Further, in an embodiment, the means for determining the location of the at least one remote transaction device includes a GPS receiver that receives GPS signals and determines the location coordinates of the at least one remote transaction device based upon the GPS signal. In an embodiment, the means for performing a risk assessment includes a risk assessment component that evaluates the risk associated with the financial transaction, and where the risk assessment component adjusts the risk assessment based upon the location information received from the at least one remote transaction device. In an embodiment, the risk assessment component categorizes an approved location for the at least one remote transaction device, and the risk assessment component performs a standard risk assessment when the location information indicates that the at least one remote transaction device is at the approved location. [0028] Further, in an embodiment, the risk assessment component adjusts the risk assessment when the location information indicates that the at least one remote transaction device is not in the approved location by evaluating risk factors associated with the new location. In an embodiment, the risk factors for the new location include payment history on other proffered payments in the same location. In an embodiment, the means for performing a risk assessment categorizes a plurality of approved locations for the at least one remote transaction device such that a merchant can move the at least one remote transaction device from one location to another. [0029] Further, in an embodiment, the risk assessment component declines transactions when the location information provided by the at least one remote transaction device indicates the at least one remote transaction device is not in one of the plurality of approved locations. In an embodiment, the plurality of approved locations are defined as a region in which the GPS coordinates provided by the at least one remote transaction device must fall within. In an embodiment, the means for performing a risk assessment has a data structure associated therewith that maps zip codes to GPS coordinates such that the authorization host can determine if a GPS coordinate falls within a particular zip code and the approved location for the at least one remote transaction device is defined in terms of approved zip codes. [0030] Further, in an embodiment, the remote transaction device comprises a plurality of remote transaction devices. In an embodiment, the transaction information is selected from the group consisting of store number, identification number, clerk number, transaction number, date, dollar amount, check information, cash information, and GPS information. [0031] A system for processing financial transactions, in one embodiment, comprises at least one portable remote terminal that obtains information about the financial transaction and location information about the location of the at least one remote terminal at the time the financial transaction occurs, where the at least one remote terminal sends a signal indicative of the location information and the financial information for processing. In addition, the system comprises an authorizing host that receives the signal transmitted by the at least one remote terminal, where the authorizing host categorizes a plurality of approved locations for the at least one portable remote terminal, and where the authorizing host receives the signal from the at least one portable remote terminal and determines whether to approve or decline the financial transaction based, at least in part, on whether the location indicated by location information sent by the at least one portable remote device is within one of the plurality of approved locations for the at least one portable remote terminal. [0032] Further, in an embodiment, the at least one remote terminal includes a GPS receiver that receives GPS signals and determines the location coordinates of the at least one remote terminal based upon the GPS signal. In an embodiment, the authorizing host includes a risk assessment component that evaluates the risk associated with the financial transaction, and the risk assessment component adjusts the risk assessment based upon the location information received from the at least one remote terminal. In an embodiment, the risk assessment component performs a standard risk assessment when the location information indicates that the at least one remote terminal is in at least one of the approved locations. [0033] Further, in an embodiment, the risk assessment component adjusts the risk assessment when the location information indicates that the at least one remote terminal is not in at least one of the approved locations by evaluating risk factors associated with the new location. In an embodiment, the risk factors for the new location include payment history on other financial transactions in the same location. In an embodiment, the authorization host categorizes the plurality of approved locations for the at least one remote terminal such that the merchant can move the at least one remote terminal from one location to another. ^' [0034] Further, in an embodiment, the risk assessment component declines financial transactions when the location information provided by the at least one remote terminal indicates the at least one remote terminal is not in one of the plurality of approved locations. In an embodiment, the plurality of approved locations are defined as a region in which the GPS coordinates provided by the at least one remote terminal must fall within. In an embodiment, the authorization host has a^' data structure associated therewith that maps zip codes to GPS coordinates such that the authorization host can determine if a GPS coordinate falls within a particular zip code and the approved location for the at least one remote terminal is defined in terms of approved zip codes. [0035] Further, in an embodiment, the at least one remote terminal comprises a plurality of remote terminals. In an embodiment, the signal comprises a data package having transaction information selected from the group consisting of store number, identification number, clerk number, transaction number, date, dollar amount, check information, cash information, and GPS information. In an embodiment, information about the financial transaction comprises information about a proffered payment. In an embodiment, a proffered payment comprises a proffered promissory payment including a payment by check. [0036] A system for processing financial transactions comprises, in one embodiment, at least one portable remote terminal that obtains information about the financial transaction and location information about the location of the at least one remote terminal at the time the financial transaction occurs, where the location information includes a GPS signal, and where the at least one remote terminal sends a signal indicative of the location information and the financial information for processing. In addition, the system comprises an authorizing host that receives the signal transmitted by the at least one remote terminal, where the authorizing host categorizes a plurality of approved locations for the at least one portable remote terminal, and where the authorizing host receives the signal from the at least one portable remote terminal and determines whether to approve or decline the financial transaction based, at least in part, on whether the location indicated by location information sent by the at least one portable remote device is within one of the plurality of approved locations for the at least one portable remote terminal. [0037] Further, in an embodiment, the at least one remote terminal includes a GPS receiver that receives GPS signals and determines the location coordinates of the at least one remote terminal based upon the GPS signal. In an embodiment, the authorizing host includes a risk assessment component that evaluates the risk associated with the financial transaction, and the risk assessment component adjusts the risk assessment based upon the location information received from the at least one remote terminal. In an embodiment, the risk assessment component performs a standard risk assessment when the location information indicates that the at least one remote terminal is in at least one of the approved locations. [0038] Further, in an embodiment, the risk assessment component adjusts the risk assessment when the location information indicates that the at least one remote terminal is not in at least one of the approved locations by evaluating risk factors associated with the new location. In an embodiment, the risk factors for the new location include payment history on other financial transactions in the same location. In an embodiment, the authorization host categorizes the plurality of approved locations for the at least one remote terminal such that the merchant can move the at least one remote terminal from one location to another. [0039] Further, in an embodiment, the risk assessment component declines financial transactions when the location information provided by the at least one remote terminal indicates the at least one remote terminal is not in one of the plurality of approved locations. In an embodiment, the plurality of approved locations are defined as a region in which the GPS coordinates provided by the at least one remote terminal must fall within. In an embodiment, the authorization host has a data structure associated therewith that maps zip codes to GPS coordinates such that the authorization host can determine if a GPS coordinate falls within a particular zip code and where the approved location for the at least one remote terminal is defined in terms of approved zip codes. [0040] Further, in an embodiment, the at least one remote terminal comprises a plurality of remote terminals. In an embodiment, the signal comprises a data package having transaction information selected from the group consisting of store number, identification number, clerk number, transaction number, date, dollar amount, check information, cash information, and GPS information. In an embodiment, information about the financial transaction comprises information about a proffered payment. In an embodiment, a proffered payment comprises a proffered promissory payment including a payment by check. [0041] A method of determining the risks of accepting a proffered promissory payment, in one embodiment, comprises obtaining location information about the location of a remote transaction device by the remote transaction device and capturing transaction information about the proffered promissory payment by the remote transaction device. In addition, the method comprises sending both the transaction information and the location information of the remote transaction device to a central authorized host and performing risk assessment of the proffered promissory payment by the central authorized host, where performing the risk assessment comprises, at least in part, determining whether the location information indicates that the location of the remote device is within at least one of a plurality of authorized locations for the remote transaction device. [0042] Further, in an embodiment, obtaining location information of a remote transaction device comprises receiving GPS signals and determining a GPS based location of the remote transaction device. In an embodiment, determining whether the GPS based location is in the at least one authorized location comprises determining whether the GPS based location is within a region defined by a pre-approved zip code for the remote transaction device. In an embodiment, performing the risk assessment further comprises determining a risk score of accepting the proffered promissory payment based upon the GPS information, the information about the merchant, the amount of the proffered promissory payment, and the type of transaction to determine the risk score. [0043] Further, in an embodiment, the risk score is adjusted based upon whether the GPS information is within at least one authorized location for the remote transaction device. In an embodiment, performing the risk assessment of accepting the proffered promissory payment comprises determining whether the GPS based location is in the at least one of the authorized locations and comprises determining which of a plurality of authorized locations the GPS location falls within. In an embodiment, a risk score is calculated for the proffered promissory payment based upon risk factors associated with the authorized location if it is determined that the GPS location falls within the authorized location. In an embodiment, a risk score is calculated for the proffered promissory payment based upon new risk factors associated with the GPS location when the GPS location does not fall within an authorized location. [0044] A method of determining the risks of accepting a proffered payment comprising, in one embodiment, comprises obtaining location information about the location of a remote transaction device by the remote transaction device, where the location information includes a GPS signal and capturing transaction information about the proffered payment by the remote transaction device. In addition, the method comprises sending both the transaction information and the location information of the remote transaction device to a central authorized host and performing risk assessment of the proffered payment by the central authorized host, where performing the risk assessment comprises, at least in part, determining whether the location information indicates that the location of the remote device is within at least one of a plurality of authorized locations for the remote transaction device. [0045] Further, in an embodiment, obtaining location information of a remote transaction device comprises receiving GPS signals and determining a GPS based location of the remote transaction device. In an embodiment, determining whether the GPS based location is in the at least one authorized location comprises determining whether the GPS based location is within a region defined by a pre-approved zip code for the remote transaction device. In an embodiment, performing the risk assessment further comprises determining a risk score of accepting the proffered payment based upon the GPS information, the information about the merchant, the amount of the proffered payment, and the type of transaction to determine the risk score. [0046] Further, in an embodiment, the risk score is adjusted based upon whether the GPS information is within at least one authorized location for the remote transaction device. In an embodiment, performing the risk assessment of accepting the proffered payment comprises determining whether the GPS based location is in the at least one of the authorized locations and comprises determining which of a plurality of authorized locations the GPS location falls within. In an embodiment, a risk score is calculated for the proffered payment based upon risk factors associated with the authorized location if it is determined that the GPS location falls within the authorized location. In an embodiment, a risk score is calculated for the proffered payment based upon new risk factors associated with the GPS location when the GPS location does not fall within an authorized location. [0047] A system for determining the risks of accepting a proffered payment, in one embodiment, comprises a means for obtaining location information about the location of a remote transaction device by the remote transaction device and a means for capturing transaction information about the proffered payment by the remote transaction device. In addition, the system comprises a means for sending the transaction information and the location information of the remote transaction device to a central authorized host and a means for performing risk assessment of the proffered payment by the central authorized host, where performing the risk assessment comprises, at least in part, determining whether the location information indicates that the location of the remote device is within at least one of a plurality of authorized locations for the remote transaction device. [0048] Further, in an embodiment, the means for obtaining location information includes a GPS receiver that receives GPS signals and determines the location coordinates of the remote transaction device based upon the GPS signal. In an embodiment, the means for performing risk assessment includes a risk assessment component that evaluates the risk associated with the financial transaction, and the risk assessment component adjusts the risk assessment based upon the location information received from the remote transaction device. In an embodiment, the risk assessment component performs a standard risk assessment when the location information indicates that the remote transaction device is in at least one of the approved locations. [0049] Further, in an embodiment, the risk assessment component adjusts the risk assessment when the location information indicates that the remote transaction device is not in at least one of the approved locations by evaluating risk factors associated with the new location. In an embodiment, the risk factors for the new location include payment history on other financial transactions in the same location. In an embodiment, the means for performing risk assessment categorizes the plurality of approved locations for the remote transaction device such that the merchant can move the remote transaction device from one location to another. [0050] Further, in an embodiment, the risk assessment component declines financial transactions when the location information provided by the remote transaction device indicates that the remote transaction device is not in one of the plurality of approved locations. In an embodiment, the plurality of approved locations are defined as a region in which the GPS coordinates provided by the remote transaction device must fall within. In an embodiment, the authorization host has a data structure associated therewith that maps zip codes to GPS coordinates such that the authorization host can determine if a GPS coordinate falls within a particular zip code and the approved location for the remote transaction device is defined in terms of approved zip codes. [0051] Further, in an embodiment, the remote transaction device comprises a plurality of remote transaction devices. In an embodiment, the transaction information is selected from the group consisting of store number, identification number, clerk number, transaction number, date, dollar amount, check information, cash information, and GPS information. In an embodiment, the proffered payment comprises a proffered promissory payment including a payment by check. [0052] A remote transaction device for capturing and transmitting data to a central authorizing host indicative of a proffered payment, in one embodiment, comprises a financial data component that obtains financial information about the proffered payment, a location component that determines the location of the remote transaction device when the financial information about the proffered payment is obtained, and a transceiver component that is communicatively linked to the central authorized host. In addition, the device comprises a processor component that receives the financial information and the location information and induces the transceiver component to transmit the financial information and the location information to the central authorizing host to thereby permit the central authorizing host to evaluate the risk of accepting the proffered payment, where the risk can be assessed in light of the present location of the remote transaction device. [0053] Further, in an embodiment, the financial data component comprises a reader capable of reading the MICR code on a check. In an embodiment, the financial data component further comprises an input keyboard, whereby additional information about the proffered payment can be input into the remote transaction device. In an embodiment, where the location component comprises a GPS receiver that receives GPS signals and determines the location of the remote transaction device based upon the received GPS signals. [0054] Further, in an embodiment, the processing component induces the transceiver component to transmit information about the identity of the customer offering the proffered payment, the payment amount, the type of transaction, and information about the merchant. In an embodiment, the transceiver component is telephonically connected to the central authorizing host. In an embodiment, the transceiver component is connected to the central authorized host via an internet connection. In an embodiment, the remote transaction device further comprises a display, and where the transceiver component receives signals from the central authorizing host indicating whether the proffered payment should be accepted or declined by the merchant and the acceptance or declined information is displayed on the display. In an embodiment, the proffered payment comprises a proffered promissory payment including a payment by check. [0055] A remote transaction device for capturing and transmitting data to a risk assessment agency indicative of a proffered promissory payment comprises, in one embodiment, a financial data means for obtaining financial information about the proffered promissory payment, a location means for determining the location of the remote transaction device when the financial information about the proffered promissory payment is obtained, and a transceiver means for communicating with the risk assessment agency. In addition, the device comprises a control means for accumulating information from the financial data means and the location means so as to be able to induce the transceiver means to transmit information to the risk assessment agency to allow the risk assessment agency to determine the risk of accepting the proffered promissory payment based on both the financial information about the proffered promissory payment and the location at which the payment is occurring. [0056] Further, in an embodiment, the financial data means comprises a reader capable of reading the MICR code on a check. In an embodiment, the financial data means further comprises an input keyboard, whereby additional information about the proffered promissory payment can be input into the remote transaction device. In an embodiment, the location means comprises a GPS receiver that receives GPS signals and determines the location of the remote transaction device based upon the received GPS signals. In an embodiment, the processing means induces the transceiver means to transmit information about the identity of the customer offering the proffered promissory payment, the payment amount, the type of transaction, and information about the merchant. [0057] Further, in an embodiment, the transceiver means is telephonically connected to the central authorizing host. In an embodiment, the transceiver means is connected to the central authorized host via an internet connection. In an embodiment, the remote transaction device further comprises a display, and where the transceiver means receives signals from the central authorizing host indicating whether the proffered promissory payment should be accepted or declined by the merchant and the acceptance and decline information is displayed on the display means. In an embodiment, the proffered promissory payment comprises a payment by check. [0058] A method of providing information about the risk of accepting a proffered promissory payment at a point of sale (POS) device, in one embodiment, comprises inputting financial information about the proffered promissory payment at the point of sale device and determining the physical location of the point of sale device. In addition, the method comprises transmitting both the financial information and the physical location information from the point of sale device to a central authorizing host such that the central authorizing host can determine the risk of accepting or declining the proffered promissory payment based on both the financial information and the physical location information. In an embodiment, the method further comprises transmitting information about the merchant so as to allow the risk assessment agency to ascertain whether the merchant is using the point of sale device in an approved location. [0059] Further, in an embodiment, inputting financial information about the proffered promissory payment comprises evaluating the proffered promissory payment to capture data indicative of the purchaser, the purchase amount, and the account number corresponding to the proffered promissory payment. In an embodiment evaluating the proffered promissory payment comprises electronically scanning the proffered promissory payment at the point of sale device to capture the MICR code of the proffered promissory payment. In an embodiment, determining the physical location of the point of sale device comprises receiving GPS signals, and evaluating the GPS signals to determine the physical location of the point of sale device. [0060] A system for assessing the risk of accepting proffered promissory payments being made at a plurality of merchants equipped with point of sale devices that transmit information about the proffered promissory payment, where the point of sale devices further determine their location and transmit the location information, in one embodiment, comprises a transceiver that communicates with the plurality of point of sale devices. In addition, the system comprises a risk assessment component that evaluates the financial information about the proffered payment and the location information of the point of sale device, where the risk assessment component determines the risk of accepting the proffered payment based on the financial information and the location information of the point of sale device and provides an indication of whether to accept the proffered payment to the point of sale device via the transceiver. [0061] Further, in an embodiment, the risk assessment component receives location information in the form of GPS coordinates determined by the point of sale device and the risk assessment component verifies whether the GPS coordinates are within at least one pre-approved geographic region for the point of sale device. In an embodiment, the risk assessment component stores a plurality of pre-approved geographic regions for the point of sale device to facilitate businesses that travel between locations and where the risk assessment component utilizes a pre-approved risk scoring model when the GPS coordinates indicate that the point of sale device is within one of the plurality of pre- approved areas. In an embodiment, the risk assessment component determines a new risk scoring model when the GPS coordinates indicate that the point of sale device is not within a pre-approved geographic location for the point of sale device. [0062] Further, in an embodiment, the new risk scoring model is developed based at least in part upon payment history of other proffered payments in the non-pre- approved area. In an embodiment, the risk assessment component categorizes regions based upon risk by zip codes. In an embodiment, the risk assessment component includes a database that interrelates GPS coordinates to zip codes such that the risk assessment component can assess the risk of accepting a proffered payment in any area by determining which zip code the GPS coordinates fall within and then accessing the risk factors for that zip code. In an embodiment, the risk assessment component evaluates the financial information to determine the risk of accepting a proffered payment by evaluating the location information, the merchant information, the transaction type, the payment history of the individual offering the proffered payment and the payment amount. [0063] A system for assessing the risk of accepting proffered promissory payments being made at a plurality of merchants equipped with point of sale devices that transmit information about the proffered promissory payment, where the point of sale devices further determine their GPS location and transmit the GPS information, in one embodiment, comprises a transceiver that communicates with the plurality of point of sale devices. In addition, the system comprises a risk assessment component that evaluates the financial information about the proffered payment and the GPS information of the point of sale device, where the risk assessment component determines the risk of accepting the proffered payment based on the financial information and the GPS information of the point of sale device and provides an indication of whether to accept the proffered payment to the point of sale device via the transceiver. [0064] Further, in an embodiment, the risk assessment component verifies whether the GPS coordinates are within at least one pre-approved geographic region for the point of sale device. In an embodiment, the risk assessment component stores a plurality of pre-approved geographic regions for the point of sale device to facilitate businesses that travel between locations and the risk assessment component utilizes a pre-approved risk scoring model when the GPS coordinates indicate that the point of sale device is within one of the plurality of pre-approved areas. In an embodiment, the risk assessment component determines a new risk scoring model when the GPS coordinates indicate that the point of sale device is not within a pre-approved geographic location for the point of sale device. [0065] Further, in an embodiment, the new risk scoring model is developed based at least in part upon payment history of other proffered payments in the non-pre- approved area. In an embodiment, the risk assessment component categorizes regions based upon risk by zip codes. In an embodiment, the risk assessment component includes a database that interrelates GPS coordinates to zip codes such that the risk assessment component can assess the risk of accepting a proffered payment in any area by determining which zip code the GPS coordinates fall within and then accessing the risk factors for that zip code. In an embodiment, the risk assessment component evaluates the financial information to determine the risk of accepting a proffered payment by evaluating the location information, the merchant information, the transaction type, the payment history of the individual offering the proffered payment and the payment amount. [0066] A method of assessing the risk of accepting a proffered payment, in one embodiment, comprises receiving location information from a point of sale device indicative of the location of a point of sale device. In addition, the method comprises receiving financial information from the point of sale device indicative of the proffered payment and evaluating the risk of accepting the proffered payment based at least in part on the location information provided by the point sale device an the financial information. [0067] Further, in an embodiment, receiving location information comprises receiving GPS coordinates indicative of the location of the point of sale device. In an embodiment, evaluating the risk of accepting the proffered payment comprises determining whether the GPS coordinates correspond to a geographic region corresponding to a pre-approved area for the point of sale device, and calculating a risk score based upon the risk factors associated with the pre-approved geographic region when it is determined the point of sale device is in a pre-approved region. In an embodiment, the method further comprises calculating a risk score based upon the risk factors associated with a non-pre-approved region when it is determined that the point of sale device is not in a pre-approved region. In an embodiment, determining whether the GPS coordinates correspond to a geographic region corresponding to a pre-approved area for the point of sale device comprises determining whether the GPS coordinates fall within a pre-approved postal zip code. [0068] A system of assessing the risk of accepting a proffered payment, in one embodiment, comprises a means for receiving location information from a point of sale device indicative of the location of a point of sale device and a means for receiving financial information from the point of sale device indicative of the proffered payment. In addition, the system comprises a means for evaluating the risk of accepting the proffered payment based at least in part on the location information provided by the point sale device an the financial information. [0069] Further, in an embodiment, the means for receiving location information comprises receiving GPS coordinates indicative of the location of the point of sale device. In an embodiment, the means for evaluating the risk of accepting the proffered payment comprises determining whether the GPS coordinates correspond to a geographic region corresponding to a pre-approved area for the point of sale device, and calculating a risk score based upon the risk factors associated with the pre-approved geographic region when it is determined the point of sale device is in a pre-approved region. [0070] Further, in an embodiment, the system further comprises a means for calculating a risk score based upon the risk factors associated with a non-pre-approved region when it is determined that the point of sale device is not in a pre-approved region. In an embodiment, determining whether the GPS coordinates correspond to a geographic region corresponding to a pre-approved area for the point of sale device comprises determining whether the GPS coordinates fall within a pre-approved postal zip code. In an embodiment, accepting a proffered payment comprises accepting a proffered promissory payment including a payment by check. [0071] These and other objects and advantages of the present teachings will become apparent from the following description taken in conjunction with the accompanying drawings.

Brief Description of the Drawings [0072] Figure 1 illustrates one embodiment of a system for processing financial transactions. [0073] Figure 2 illustrates one embodiment of the transaction device. [0074] Figure 3 illustrates one embodiment of a transaction data package. [0075] Figure 4 illustrates one embodiment of the information database component. [0076] Figure 5 illustrates one embodiment of a risk analysis process. [0077] Figure 6A illustrates another embodiment of a risk analysis process. [0078] Figure 6B illustrates still another embodiment of a risk analysis process.

Detailed Description of the Preferred Embodiment [0079] Reference will now be made to the drawings wherein like numerals refer to like parts throughout. Figures 1-7 illustrate various aspects related to a system and method of risk assessment for financial transactions, whereby global positioning system (GPS) information is acquired for validation of financial transactions. [0080] Figure 1 illustrates one embodiment of a system 100 for processing financial transactions. As illustrated in Figure 1 , the system 100 comprises one or more transaction devices 104, such as remote terminals or point of sale (POS) devices, and at least one authorizing host 108, such as a payment approval or risk assessment agency. The one or more transaction devices 104 and the authorizing host 108 communicate in a manner so as to process financial transactions and manage the risk or level thereof associated with each financial transaction. [0081] In one embodiment, the transaction device 104 comprises a plurality of functional components including a reader component 120, an input component 122, a location component, such as a global positioning system (GPS) component 124, a processor component 126, a transceiver component 128, and an output component 130. Additionally, the transaction device 104 is utilized by a merchant to accept promissory payments from customers. In one aspect, the transaction device 104 comprises a remote terminal or POS device, such as an Eclipse™ device that is described in greater detail herein below and illustrated in Figure 2. However, it should be appreciated by those skilled in the art that the transaction device 104 may also include various types of payment devices including a cash register, personal computer, etc. without departing from the scope of the present teachings. Therefore, it should also be appreciated by those skilled in the art that one or more of the components as described herein may be integrated into the various types of payment devices without departing from the scope of the present teachings. [0082] The reader and input components 120, 122 may include a type of monetary exchange device, such as a check reader, credit card reader, debit card reader, keyboard for manual input of account information, or some combination thereof for the purpose of acquiring transaction information from customers at the point of sale. The reader and input components 120, 122 of the transaction device 104 identifies, by either magnetic ink character recognition (MICR) or optical character recognition (OCR), the American Banking Association (ABA) account information printed on the face of the check draft and converts the customer's ABA account information to transaction information, which may include digital signals or digital signatures. The transaction information may then be transferred from the transaction device 104 to the authorizing host 108 for processing. One example of a transaction device 104 is the Eclipse™ device currently available from Telecheck Inc. of Houston, Texas. [0083] The location component 124 acquires positional information, such as coordinates, related to the location at which the financial transactions are occurring. In this implementation, the location component comprises a GPS component that receives signals from orbiting satellites in a known fashion to determine location and can thus provide a very specific location, accurate to within several yards, of the location of the transaction device 104. This location information can thus be provided to the authorizing host or risk assessment agency 108 and this information can be used during the risk assessment of accepting the proffered payment in the manner that will be described herein below. While the current description refers to the transaction device 104 obtaining its location using the GPS system, it will be appreciated that any of a number of other location determining systems can be used without departing from the spirit of the present invention. For example, if the transaction device 104 is connected to the authorizing host 108 via telephone, location information can be determined by the telephone number the transaction device 104 is using to dial the authorizing host. [0084] In general, a GPS receiver or GPS component communicates with a plurality of earth-orbiting GPS satellites via radio frequency (RF) signals. The GPS receiver gathers information related to the distance to each satellite and the distance between each satellite. The GPS gathers information by receiving and analyzing high- frequency, low-power radio signals from the GPS satellites. For example, the GPS receiver calculates the distance to GPS satellites by timing the radio signal from the satellite to the GPS receiver. The length of the delay is substantially equal to the travel time of the radio signal. The receiver multiplies this time by the speed of light to determine the distance that the signal traveled from the satellite to the GPS receiver. The GPS receiver then utilizes the GPS distance information to determine a location on earth. This operation is based on a generally known mathematical principle called trilateration. [0085] According to one embodiment of the present teachings, various levels of risk for financial transactions can be associated to areas, locations, and regions where financial transactions take place. In general, some locations may be determined to be of lower or higher risk. For example, a high risk evaluation may be determined for a location that has a poor transaction history, such as a high crime area or an area with a large number of fraudulent transactions. In another example, a low risk area may have a good transaction history. In still another example, a moderate risk area may have a few returned checks, but the returned checks are paid with penalties. It should be appreciated that approved regions for financial transactions may be pre-defined or pre-determined prior to each financial transaction. In addition, various levels of risk for these approved regions may be stored in a database and accessed for each financial transaction. Moreover, various levels of risk can also be associated to ZIP coded regions, wherein the GPS coordinates can be compared to approved ZIP code regions. Further scope and functionality related to these concepts will be described in greater detail herein below. [0086] The transceiver component 128 of the transaction device 104 is adapted to transmit data and information including a transaction data package from the transaction device 104 to the authorizing host 108. The transceiver component 128 is also adapted to receive data and information including approval and/or decline data from the authorizing host 108. The output component 130 may include a display monitor, a printer, or various other output peripherals generally known in the art. The display monitor may comprise a video monitor, a liquid crystal display (LCD), or any other relevant type of display. [0087] The processor component 126 of the transaction device 104 coordinates the functions of the transaction device 104. The processor component 126 communicates with the reader and input components 120, 122 so as to receive transaction information therefrom. The processor component 126 communicates with the location component 124 so as to receive the location information therefrom. The processor component 126 combines or packages the transaction information and the location information into a recognizable transaction data package. The processor component 126 communicates with the transceiver component 128 so as to coordinate the transmission of the transaction data package to the authorizing host 108 and also to receive validation information from the authorizing host 108. The processor component 126 communicates with the display component to inform the user of the current status of financial transactions. [0088] In one embodiment, the authorizing host 108 comprises a plurality of functional components including a transceiver component 148, a information database component 150, a risk evaluation component 152, and one or more risk database components 154. These components may either be part of a single integrated system or may be comprised of a distributed system. The authorizing host 108 is adapted to determine and evaluate the risk for financial transactions based, at least in part, on the GPS information received from the transaction device 104. For example, the risk evaluation component 152 evaluates information, such as the check amount, the ID of the check writer, the merchant, the type of merchandize being purchased as well as the location information provided by the transaction device 104 to determine a risk score of accepting the check or other proffered payment. The risk score is, of course, indicative of whether the proffered payment will be backed by suitable funds in the individual's account when the merchant submits the check, either electronically or physically, to the individual's bank. One example of an authorizing host is the risk assessment agency run by Telecheck, Inc. of Houston, Texas. [0089] The authorizing host 108 interacts with the one or more transaction devices 104 via the transceiver components 128, 148, such as a telephonic, satellite, and/or computer network (internet) interface and performs this risk analysis for a plurality of merchants on a plurality of different transactions. The authorizing host 108 further returns an approval or decline decision to the transaction device 104 via the transceiver components 128, 148 and displays the applicable results on the display component of the transaction device 104. [0090] In one embodiment, the transceiver component 148 of the authorizing host 108 receives data and information including the transaction data package from each transceiver component 128 of each transaction device 104. The transceiver component 148 may also be adapted to transmit data and information including approval and/or decline data from the authorizing host 108 to the transaction device 104. It should be appreciated that the transceiver component 148 for the authorizing host 108 may have similar scope and functionality as the transceiver component 128 for the transaction device 104. In general, the transceiver components 128, 148 are adapted to communicate so as to transfer transaction information for each financial transaction between the authorizing host 108 and the transaction device 104. [0091] In one embodiment, the information database component 150 of the authorizing host 108 comprises a plurality of merchant parameters that identify approved locations for financial transactions that correspond to the location information, such as coordinates. When financial transactions are submitted by the transaction device 104, the authorizing host 108 retrieves information related to the current merchant from the information database component 150 and determines if the current merchant is authorized to process financial transactions in the submitted locations. If the submitted location information is acceptable, then the merchant is authorized to continue processing the financial transaction. If the location information is not acceptable, then the authorizing host 108 may either decline the financial transaction or request additional information from the merchant so as to determine if the level of risk for the financial transaction is within a range of acceptance. Further scope and functionality related to risk analysis by the authorizing host 108 will be described in greater detail herein below. [0092] In another embodiment, the information database component 150 comprises location information which is defined as GPS coordinates and corresponding zip code information that can be used by the risk evaluation component 152 to correlate GPS coordinates to the corresponding zip code information. In general, GPS coordinates can define areas, locations, and positions within boundaries of known zip code regions. A risk value or level of risk for financial transactions in certain zip code regions can be predetermined and stored in the information database component 150. Thus, when GPS information is received for financial transactions, the location of a particular financial transaction can be matched to a corresponding zip code region so as to determine a risk value or level of risk. [0093] In addition to the location information, the risk evaluation component 152 may also access and retrieve relevant transaction information about customers, such as check writing history, and the merchants, such as a pre-determined limit on an acceptable check draft amount or credit requisition and other specific factors preferences, from one or more risk database components 154. The risk databases allow the risk evaluation component 152 to gather relevant transaction information about customers and merchants that may not necessarily be available in the information database component 150 so as to further facilitate the risk assessment. The risk evaluation component 152 utilizes the relevant information to evaluate financial transactions so as to adapt the manner in which the risk assessment is performed by the authorizing host 108. [0094] The risk evaluation component 152 may further function as a risk scoring engine that evaluates financial transactions in a known manner based on the received transaction information including the location information and the risk information from the risk database components 154. The risk scoring engine function may determine a risk score indicative of a probable risk assessment of each financial transaction. Advantageously, the risk scoring engine function may comprise a plurality of risk scoring engines, wherein each risk scoring engine is adapted to address a plurality of possible financial transactions or transaction variables in a manner so as to improve accuracy in determining the risk score. [0095] For example, the risk evaluation component 152 may access the information database component 150 for transaction information about the location of the financial transaction and ascertains whether the financial transaction is occurring in a high risk region. In this example, high risk financial transactions arise from unfavorable financial transaction histories in particular locations. As a result, the risk evaluation component 152 may then decide that the financial transaction is of high risk and, in which case, subsequently declines authorization due to an unacceptable risk score ascertained for the financial transaction. [0096] Figure 2 illustrates one embodiment of the transaction device 104. As illustrated in Figure 2, the transaction device 104 may comprise an Eclipse™ terminal 170 manufactured by Telecheck, Inc. of Houston, TX. Advantageously, in one aspect of the present teachings, the Eclipse™ terminal 170 can be adapted so as to integrate the location component 124, such as a GPS receiver, therein so that GPS information can be gathered and sent to the authorizing host 108 for each financial transaction. It should be appreciated by those skilled in the art that the remote terminal or POS device may also include various forms of payment devices including a cash register, personal computer, etc. without departing from the scope of the present teachings. Therefore, it should also be appreciated by those skilled in the art that the GPS component as described herein may be integrated into various types of payment devices without departing from the scope of the present teachings. [0097] In one embodiment, the Eclipse™ terminal 170 comprises a POS payment terminal that is adapted to accept various non-cash payment types including checks, credit cards, debit cards, and electronic benefit transfer (EBT) transactions. In addition, the Eclipse™ terminal 170 also enables the TeleCheck Electronic Check Acceptance® (ECA®) service and many other TeleCheck services. Advantageously, TeleCheck and the Eclipse™ terminal combine the benefits of accurate databases with advanced authorization and payment technology. [0098] In one embodiment, the Eclipse™ terminal 170 comprises a built-in ink jet receipt printer 172 that reduces counter space, voids ECA transactions, and endorses paper checks to include subscriber number and approval code. Additionally, the Eclipse™ terminal 170 comprises a backlit touch-screen display 174 that provides a user friendly interface and exceptional visibility. [0099] Moreover, the Eclipse™ terminal 170 rapidly authorizes financial transactions so as to speed up checkout. In one embodiment, the Eclipse™ terminal 170 comprises a check reader 176 that enables the conversion of paper checks to electronic items. In addition, the Eclipse™ terminal 170 comprises a dual-track magnetic strip reader 178 that automatically collects and inputs data from credit cards and driver's licenses. [0100] Furthermore, the Eclipse™ terminal 170 comprises a full reporting capability that provides easy access to transaction and payment information including sales amounts and various other details for each payment type. In one embodiment, the Eclipse™ terminal 170 stores up to 500 check and 300 card transactions. In addition, the Eclipse™ terminal 170 comprises check imaging capability that allows merchants to process most checks without identification. Also, the Eclipse™ terminal 170 comprises a user friendly keyboard 180, such as a numeric or alphanumeric keyboard. It should be appreciated by those skilled in the art that the transaction device 104 may comprise various other generally known POS devices without departing from the scope of the present teachings. [0101] Figure 3 illustrates one example of a transaction data package 200 that is transmitted from the transaction device 104 to the authorizing host 108. The transaction data package 200 of Figure 3 is simply exemplary of the information that is provided to the authorizing host 108 when a financial transaction is being sent to the authorizing host 108 for risk assessment and the format of the packet can be any of a number of different formats known in the art. As illustrated in Figure 3, the transaction data package 200 comprises transaction information 202 and location information 204, such as GPS information. In one aspect, the transaction information 202 may include one or more data components including store information, merchant information, clerk identification number, customer information, transaction number, transaction date, transaction dollar amount, and payment information, such as credit, check, and/or cash information. In addition, the transaction information 202 may further include a subscriber information code (SIC) that identifies the merchant and/or transaction device 104. Advantageously, the authorizing host 108 can utilize the SIC component of the transaction information 202 to retrieve merchant parameters from the information database 150 for subsequent risk assessment of the financial transaction by the risk evaluation component 152. Moreover, the location information 204 includes transaction location information, such as GPS positional coordinates of each financial transaction. Advantageously, the risk evaluation component 152 can utilize the retrieved merchant parameters together with the received GPS information 204 to determine the risk or level thereof for each financial transaction. [0102] Hence, the transaction device 104 transmits a data package that identifies the merchant, the customer, the amount of the proffered payment and the location of the transaction device when the proffered payment is made. This information allows the authorizing host 108, e.g., the risk assessment component, to receive sufficient information to assess the risk of accepting the proffered payment. [0103] Figure 4 illustrates one embodiment of the information database component 150. As illustrated in Figure 4, the information database component 150 comprises stored information and/or data related to the subscriber information code (SIC), approved transaction types, approved transaction areas, and risk engine evaluation items. The SIC component identifies the merchant and at least one transaction device 104 usable by the merchant for financial transactions in approved locations. The approved transaction types may include cash, check, debit, credit, and EBT transactions. Also, the approved transaction types may be restricted for a particular merchant and/or transaction location. Alternatively, the risk scoring protocols for different types of transactions can be different for different merchants. For example, accepting a particular type of proffered payment by one merchant in one location may require a different risk assessment than accepting other types of payments. Hence, the transaction types may also provide indications of risk protocols for each transaction type for different merchants. [0104] In one embodiment, the information database component 150 may be configured with stationary merchant parameters 220 such that financial transactions are restricted to proximate locations within a specified area, such as a commercial building. In general, a stationary merchant may be defined as a merchant that does business from a single location, such as a grocery store, hardware store, auto repair, etc. Alternately, in another embodiment, the information database component 150 may be configured with traveling merchant parameters 230 such that financial transactions are defined for a plurality of distal locations approved by the authorizing host 108. [0105] For example, the present teachings may be useful for various embodiments of stationary merchants, stationary merchants that change physical location and/or the nature of the business, traveling merchants, and traveling merchants that change physical location and/or the nature of the business. In one aspect, managing risk for traveling merchants includes seasonal merchants and merchants that travel while conducting business. It should be appreciated by those skilled in the art that a change in location of the remote terminal or POS device may signify that the risk of financial transactions have changed, but alternately for the permanent or stationary merchants or vendors, such as hardware stores, pawn shops, etc., a change in location may signify that the nature of the business, such as goods and service provided, have changed. Thus, a change in location for stationary and/or traveling merchants may require that the authorizing host, such as TeleCheck, may proceed to stop processing financial transactions for the merchant until the change of location has been approved, researched, and/or verified, which may include validating new addresses and/or approving a new contract for the merchants. [0106] Additionally, it should be appreciated that the information database component 150 configured for traveling merchants may comprise the scope and functionality of the stationary merchant configured information database component 150 with the added benefit of portability between a plurality of distal locations. In one aspect, the plurality of distal locations may be pre-approved by the authorizing host 108 for the traveling merchant. In other words, the known locations at which the merchant will sell their products may be previously provided to the authorization host 108. Hence, when the transaction device 104 provides signals indicating that the merchant has traveled from one location to another, the authorizing host can update their risk scoring protocols to reflect the new location. The travel can, of course, be between cities or states or even countries. [0107] Additionally, the information database component 150 can also store approved areas and/or locations for particular merchants. For a stationary merchant, such as an owner of a commercial building or store, the approved area is the localized proximity of the store, which can be identifiable with a designated GPS coordinate or proximate range of GPS coordinates. For example, if the transaction device 104 was moyed out of an approved proximity to the commercial building, then financial transactions may be assessed with updated risk protocols or may even be declined. Therefore, the transaction device 104 can be substantially restricted to process financial transactions in the approved proximity depending on the needs of the merchant. Advantageously, fraud can be reduced due to the requirement of location information, e.g., GPS coordinate matching, of the financial transactions between the transaction device 104 and the authorizing host 108. [0108] In another example, the default or approved transaction area for the merchant may be defined by a particular zip code. If the location information provided by the transaction device 104 does not fall within the correct zip code, then either the transaction can be denied or the risk protocols can be updated to accommodate the new location. To facilitate, this implementation, the authorizing host 108 may include a zip code map where GPS coordinates are mapped by zip codes. [0109] Figure 5 illustrates one exemplary embodiment of a risk analysis process 500 performed by the risk evaluation component 152 of the authorizing host 108. As illustrated in Figure 5, the process 500 initiates in a start state 502 and proceeds to state 504, wherein the authorizing host 108 receives the data package 200 from the transaction device 104. As discussed above, the data package 200 includes identifying information about the transaction such as the customer, the type of proffered payment, the purchase amount, etc. and identifying information about the merchant such as the SIC code for the merchant, as well as the location information, e.g., the GPS coordinates, of the transaction device 104. [0110] Next, in state 506, the risk evaluation component 152 extracts the transaction information and the location information, e.g., the GPS coordinates, from the data package and identifies the location of the financial transaction from the location information. The risk evaluation component 152 then identifies, in state 508, the merchant from the transaction information and retrieves a location parameter, such as approved locations, from the information database component 150. [0111] In state 510, the risk evaluation component 152 determines whether the location of the financial transaction is an approved location based on the retrieved GPS parameter. If the transaction location is a location that has been previously approved for the merchant, then the risk evaluation component 152 proceeds with standard risk processing in state 512. [0112] Otherwise, if the location is not within the boundaries specified by the retrieved location parameter, then the risk evaluation component 152 evaluates the present GPS coordinates in state 514 to update the risk scoring model. As discussed above, the risk of accepting proffered payments may vary depending upon the geographical location of the transaction. The risk evaluation component 152 can have access to data that can be used to update a risk scoring model with the new location. In some circumstances, the location may be such that the risk will be so high for a particular transaction that the proffered payment may be declined. [0113] Once the risk parameters have been updated to accommodate the new location, the risk evaluation component 152 can perform risk processing, in state 516, with the updated parameters and the current GPS coordinates. The process terminates in an end state 520. [0114] In this way, the change in location of the transaction device 104 can be immediately provided to the authorizing host 108 and the authorizing host 108 can update its risk assessment of accepting a proffered payment based on the new location. The transmission of GPS coordinates provides a simple method of providing location information that can be compared to either pre-approved locations for this particular merchant or can be used to update risk assessment parameters based upon known risk factors for the new location. [0115] Figure 6A illustrates another embodiment of a risk analysis process 600a performed by the risk evaluation component 152 of the authorizing host 108. As illustrated in Figure 6A, the process 600a initiates in a start state 602 and proceeds to a decision state 604, wherein the authorizing host 108 evaluates the GPS information extracted from the data package. In addition, the risk evaluation component 152 determines whether the GPS information is associated with an approved ZIP code value or within an approved ZIP code range for the merchant. In general, the GPS information can be associated to one or more ZIP code regions for purposes of risk assessment by the risk evaluation component 152. [0116] Next, if the GPS information is approved, then the process 600a advances to state 606, wherein the financial transaction is processed assuming the same SIC risk as retrieved from the information database component 150. Otherwise, in state 608, if the GPS information is not approved, then the risk evaluation component 152 determines a new ZIP code, in state 612, from the GPS information and calculates a new SIC risk based, at least in part, on the new ZIP code. Following, in state 614, the risk evaluation component 152 processes the financial transaction with the updated SIC risk. The process terminates in an end state 630. [0117] Figure 6B illustrates still another embodiment of a risk analysis process 600b performed by the risk evaluation component 152 of the authorizing host 108. It should be appreciated that Figure 6B is related to process 600a of Figure 6A with the added states 610, 616, 618, 620. As illustrated in Figure 6B, following state 608, the process 600b advances to a decision state 610, wherein the risk evaluation component 152 determines if a known SIC risk is available for the current GPS location of the financial transaction. [0118] In one aspect, the risk evaluation component 152 attempts to retrieve merchant parameters from the information database component 150 related to known SIC risk information for the current merchant. If there is a known SIC risk for the current GPS location, then the process 600b advances to state 612, and the process 600b proceeds as previously described in Figure 6A. Otherwise, if the SIC risk for the current GPS location is unavailable, then the process 600b advances to state 616, wherein the risk evaluation component 152 requests additional information from the merchant. [0119] For example, the risk evaluation component 152 may verify merchant identification, location, and various other transaction information. Next, in a decision state 618, if the risk evaluation component 152 determines that the new or verified SIC risk information is acceptable, then the process advances to state 612, and the process 600b proceeds as previously described in Figure 6A. However, if the new or verified SIC risk information is not acceptable, then the process advances to state 620, wherein the risk evaluation component 152 informs the merchant not to proceed with processing the financial transaction. In other words, the authorizing host 108 declines the financial transaction and informs the merchant via the transaction device 104. The process 600b terminates in state 630. [0120] Advantageously, GPS information and/or coordinates can be used by the authorizing host 108 to mitigate the risk or level thereof associated with the use of wireless transaction devices. In one aspect, the authorizing host 108 can receive GPS coordinates from one or more transaction devices 104 having a range of valid GPS coordinates for each merchant controlled transaction device 104. Sometimes, if the received GPS coordinates from each transaction device 104 fail to match the stored merchant parameters of approved GPS coordinates or fall within a range of approved GPS coordinates for the merchant, then the financial transaction can be treated differently. Beneficially, this allows a merchant to process financial transactions in a plurality of approved locations with the same transaction device 104. As a result, each transaction device 104 may be adapted to comprise a greater approval region depending on the requirements or needs of the merchant. [0121] Moreover, the authorizing host 108 can utilize the SIC component of the transaction information 202 to retrieve merchant parameters for subsequent risk assessment of the financial transaction. Advantageously, the authorizing host 108 can further utilize the retrieved merchant parameters together with the received GPS information 204 to determine the risk or level thereof for each financial transaction. As a result, fraud can be reduced due to the requirement of GPS coordinate matching of the financial transactions between the transaction device 104 and the authorizing host 108. [0122] Although the following description exemplifies one embodiment of the present teachings, it should be understood that various omissions, substitutions, and changes in the form of the detail of the apparatus, system, and/or method as illustrated as well as the uses thereof, may be made by those skilled in the art, without departing from the spirit of the present teachings. Consequently, the scope of the present teachings should not be limited to the disclosed embodiments, but should be defined by the appended claims.

Claims

WHAT IS CLAIMED IS:

1. A system for processing financial transactions comprising: at least one remote terminal that identifies the location of a financial transaction with a GPS signal, wherein the remote terminal also acquires transaction information about a proffered payment and transmits a signal indicative of the transaction information and the location information; and an authorizing host that receives the signal transmitted by the remote terminal wherein the authorizing host evaluates the risk associated with the financial transaction based, at least in part, on the location information so as to determine whether to accept or decline the financial transaction, and wherein the authorizing host transmits a signal back to the remote terminal indicative of _. acceptance or decline of the proffered payment.

2. The system of Claim 1 , wherein the proffered payment includes a proffered promissory payment.

3. The system of Claim 2, wherein the proffered promissory payment includes a payment by check.

4. The system of Claim 1 , wherein the at least one remote terminal includes a GPS receiver that receives the GPS signal and determines the location coordinates of the at least one remote terminal based upon the GPS signal.

5. The system of Claim 4, wherein the authorizing host includes a risk assessment component that evaluates the risk associated with the financial transaction, and wherein the risk assessment component adjusts the risk assessment based upon the location information received from the at least one remote terminal.

6. The system of Claim 5, wherein the risk assessment component categorizes an approved location for the at least one remote terminal, and wherein the risk assessment component performs a standard risk assessment when the location information indicates that the at least one remote terminal is at the approved location.

7. The system of Claim 6, wherein the risk assessment component adjusts the risk assessment when the location information indicates that the at least one remote terminal is not in the approved location by evaluating risk factors associated with the new location.

8. The system of Claim 7, wherein the risk factors for the new location include payment history on other proffered payments in the same location.

9. The system of Claim 5, wherein the authorization host categorizes a plurality of approved locations for the at least one remote terminal such that the merchant can move the at least one remote terminal from one location to another.

10. The system of Claim 9, wherein the risk assessment component declines transactions when the location information provided by the at least one remote terminal indicates that the at least one remote terminal is not in one of the plurality of approved locations.

11. The system of Claim 10, wherein the plurality of approved locations are defined as a region in which the GPS coordinates provided by the at least one remote terminal must fall within.

12. The system of Claim 11 , wherein the authorization host has a data structure associated therewith that maps zip codes to GPS coordinates such that the authorization host can determine if a GPS coordinate falls within a particular zip code and wherein the approved location for the at least one remote terminal is defined in terms of approved zip codes.

13. The system of Claim 1 , wherein the at least one remote terminal comprises a plurality of remote terminals.

14. The system of Claim 1 , wherein the signal comprises a data package having transaction information selected from the group consisting of store number, identification number, clerk number, transaction number, date, dollar amount, check information, cash information, and GPS information.

15. A system for processing financial transactions comprising: at least one remote terminal that identifies the location of a financial transaction, wherein the remote terminal also acquires transaction information about a proffered promissory payment and transmits a signal indicative of the transaction information and the location information; and an authorizing host that receives the signal transmitted by the remote terminal wherein the authorizing host evaluates the risk associated with the financial transaction based, at least in part, on the location information so as to determine whether to accept or decline the financial transaction, and wherein the authorizing host transmits a signal back to the remote terminal indicative of acceptance or decline of the proffered promissory payment.

16. The system of Claim 15, wherein the at least one remote terminal includes a GPS receiver that receives GPS signals and determines the location coordinates of the at least one remote terminal based upon the GPS signal.

17. The system of Claim 16, wherein the authorizing host includes a risk assessment component that evaluates the risk associated with the financial transaction, and wherein the risk assessment component adjusts the risk assessment based upon the location information received from the at least one remote terminal.

18. The system of Claim 17, wherein the risk assessment component categorizes an approved location for the at least one remote terminal, and wherein the risk assessment component performs a standard risk assessment when the location information indicates that the at least one remote terminal is at the approved location.

19. The system of Claim 18, wherein the risk assessment component adjusts the risk assessment when the location information indicates that the at least one remote terminal is not in the approved location by evaluating risk factors associated with the new location.

20. The system of Claim 19, wherein the risk factors for the new location include payment history on other proffered promissory payments in the same location.

21. The system of Claim 17, wherein the authorization host categorizes a plurality of approved locations for the at least one remote terminal such that the merchant can move the at least one remote terminal from one location to another.

22. The system of Claim 21 , wherein the risk assessment component declines transactions when the location information provided by the at least one remote terminal indicates the at least one remote terminal is not in one of the plurality of approved locations.

23. The system of Claim 21 , wherein the plurality of approved locations are defined as a region in which the GPS coordinates provided by the at least one remote terminal must fall within.

24. The system of Claim 23, wherein the authorization host has a data structure associated therewith that maps zip codes to GPS coordinates such that the authorization host can determine if a GPS coordinate falls within a particular zip code and wherein the approved location for the at least one remote terminal is defined in terms of approved zip codes.

25. The system of Claim 15, wherein the at least one remote terminal comprises a plurality of remote terminals.

26. The system of Claim 15, wherein the signal comprises a data package having transaction information selected from the group consisting of store number, identification number, clerk number, transaction number, date, dollar amount, check information, cash information, and GPS information.

27. A method of determining the risk of accepting a proffered promissory payment, the method comprising: determining the location of a remote transaction device adapted to send transaction information about the proffered promissory payment to an authorizing host; sending the transaction information and the location information to the authorizing host; performing a risk assessment of accepting the proffered promissory payment based upon the transaction information and the location information; and sending a signal back to the remote transaction device indicative of whether the proffered promissory payment is to be accepted or declined.

28. The method of Claim 27, wherein determining the location of a remote transaction device comprises receiving GPS signals and determining a GPS based location of the remote transaction device.

29. The method of Claim 27, wherein performing a risk assessment of accepting the proffered promissory payment comprises determining whether the GPS based location is in at least one pre-approved location for the remote transaction device.

30. The method of Claim 29, wherein determining whether the GPS based location is in the at least one pre-approved location comprises determining whether the GPS based location is within a region defined by a pre-approved zip code for the remote transaction device.

31. The method of Claim 29, wherein performing the risk assessment further comprises determining a risk score of accepting the proffered promissory payment based upon the GPS information, the information about the merchant, the amount of the proffered promissory payment, and the type of transaction to determine the risk score.

32. The method of Claim 31 , wherein the risk score is adjusted based upon whether the GPS information is within a pre-approved location for the remote transaction device.

33. The method of Claim 29, wherein performing the risk assessment of accepting the proffered promissory payment comprises determining whether the GPS based location is in the at least one pre-approved location and comprises determining which of a plurality of pre-approved locations the GPS location falls within.

34. The method of Claim 33, wherein a risk score is calculated for the proffered promissory payment based upon risk factors associated with the pre-approved location if it is determined that the GPS location falls within the pre-approved location.

35. The method of Claim 33, wherein a risk score is calculated for the proffered promissory payment based upon new risk factors associated with the GPS location when the GPS location does not fall within a pre-approved location.

36. A method of determining the risk of accepting a proffered payment, the method comprising: determining the location of a remote transaction device with a GPS signal, wherein the remote transaction device is adapted to send transaction information about the proffered payment to an authorizing host; sending the transaction information and the location information to the authorizing host; performing a risk assessment of accepting the proffered payment based upon the transaction information and the location information; and sending a signal back to the remote transaction device indicative of whether the proffered payment is to be accepted or declined.

37. The method of Claim 36, wherein determining the location of a remote transaction device comprises receiving the GPS signal and determining a GPS based location of the remote transaction device.

38. The method of Claim 36, wherein performing a risk assessment of accepting the proffered payment comprises determining whether the GPS based location is in at least one pre-approved location for the remote transaction device.

39. The method of Claim 38, wherein determining whether the GPS based location is in the at least one pre-approved location comprises determining whether the GPS based location is within a region defined by a pre-approved zip code for the remote transaction device.

40. The method of Claim 38, wherein performing the risk assessment further comprises determining a risk score of accepting the proffered payment based upon the GPS information, the information about the merchant, the amount of the proffered payment, and the type of transaction to determine the risk score.

41. The method of Claim 40, wherein the risk score is adjusted based upon whether the GPS information is within a pre-approved location for the remote transaction device.

42. The method of Claim 38, wherein performing the risk assessment of accepting the proffered payment comprises determining whether the GPS based location is in the at least one pre-approved location and comprises determining which of a plurality of pre-approved locations the GPS location falls within.

43. The method of Claim 42, wherein a risk score is calculated for the proffered payment based upon risk factors associated with the pre-approved location if it is determined that the GPS location falls within the pre-approved location.

44. The method of Claim 42, wherein a risk score is calculated for the proffered payment based upon new risk factors associated with the GPS location when the GPS location does not fall within a pre-approved location.

45. The method of Claim 36, wherein determining the risk of accepting a proffered payment includes determining the risk of accepting a proffered promissory payment.

46. The method of Claim 45, wherein determining the risk of accepting a proffered promissory payment includes determining the risk of accepting a payment by check.

47. A system for determining the risk of accepting a proffered payment, the system comprising: a means for determining the location of at least one remote transaction device, wherein the at least one remote transaction device is adapted to send transaction information about the proffered payment to an authorizing host; a means for sending the transaction information and the location information to the authorizing host; a means for performing a risk assessment of accepting the proffered payment based upon the transaction information and the location information; and a means for sending a signal back to the at least one remote transaction device indicative of whether the proffered payment is to be accepted or declined.

48. The system of Claim 47, wherein the means for determining the location of the at least one remote transaction device includes a GPS receiver that receives GPS signals and determines the location coordinates of the at least one remote transaction device based upon the GPS signal.

49. The system of Claim 48, wherein the means for performing a risk assessment includes a risk assessment component that evaluates the risk associated with the financial transaction, and wherein the risk assessment component adjusts the risk assessment based upon the location information received from the at least one remote transaction device.

50. The system of Claim 49, wherein the risk assessment component categorizes an approved location for the at least one remote transaction device, and wherein the risk assessment component performs a standard risk assessment when the location information indicates that the at least one remote transaction device is at the approved location.

51. The system of Claim 50, wherein the risk assessment component adjusts the risk assessment when the location information indicates that the at least one remote transaction device is not in the approved location by evaluating risk factors associated with the new location.

52. The system of Claim 51 , wherein the risk factors for the new location include payment history on other proffered payments in the same location.

53. The system of Claim 49, wherein the means for performing a risk assessment categorizes a plurality of approved locations for the at least one remote transaction device such that a merchant can move the at least one remote transaction device from one location to another.

54. The system of Claim 53, wherein the risk assessment component declines transactions when the location information provided by the at least one remote transaction device indicates the at least one remote transaction device is not in one of the plurality of approved locations.

55. The system of Claim 53, wherein the plurality of approved locations are defined as a region in which the GPS coordinates provided by the at least one remote transaction device must fall within.

56. The system of Claim 55, wherein the means for performing a risk assessment has a data structure associated therewith that maps zip codes to GPS coordinates such that the authorization host can determine if a GPS coordinate falls within a particular zip code and wherein the approved location for the at least one remote transaction device is defined in terms of approved zip codes.

57. The system of Claim 47, wherein the remote transaction device comprises a plurality of remote transaction devices.

58. The system of Claim 47, wherein the transaction information is selected from the group consisting of store number, identification number, clerk number, transaction number, date, dollar amount, check information, cash information, and GPS information.

59. A system for processing financial transactions, the system comprising: at least one portable remote terminal that obtains information about the financial transaction and location information about the location of the at least one remote terminal at the time the financial transaction occurs, wherein the at least one remote terminal sends a signal indicative of the location information and the financial information for processing; and an authorizing host that receives the signal transmitted by the at least one remote terminal, wherein the authorizing host categorizes a plurality of approved locations for the at least one portable remote terminal, and wherein the authorizing host receives the signal from the at least one portable remote terminal and determines whether to approve or decline the financial transaction based, at least in part, on whether the location indicated by location information sent by the at least one portable remote device is within one of the plurality of approved locations for the at least one portable remote terminal.

60. The system of Claim 59, wherein the at least one remote terminal includes a GPS receiver that receives GPS signals and determines the location coordinates of the at least one remote terminal based upon the GPS signal.

61. The system of Claim 60, wherein the authorizing host includes a risk assessment component that evaluates the risk associated with the financial transaction, and wherein the risk assessment component adjusts the risk assessment based upon the location information received from the at least one remote terminal.

62. The system of Claim 61 , wherein the risk assessment component performs a standard risk assessment when the location information indicates that the at least one remote terminal is in at least one of the approved locations.

63. The system of Claim 62, wherein the risk assessment component adjusts the risk assessment when the location information indicates that the at least one remote terminal is not in at least one of the approved locations by evaluating risk factors associated with the new location.

64. The system of Claim 63, wherein the risk factors for the new location include payment history on other financial transactions in the same location.

65. The system of Claim 61 , wherein the authorization host categorizes the plurality of approved locations for the at least one remote terminal such that the merchant can move the at least one remote terminal from one location to another.

66. The system of Claim 65, wherein the risk assessment component declines financial transactions when the location information provided by the at least one remote terminal indicates the at least one remote terminal is not in one of the plurality of approved locations.

67. The system of Claim 65, wherein the plurality of approved locations are defined as a region in which the GPS coordinates provided by the at least one remote terminal must fall within.

68. The system of Claim 67, wherein the authorization host has a data structure associated therewith that maps zip codes to GPS coordinates such that the authorization host can determine if a GPS coordinate falls within a particular zip code and wherein the approved location for the at least one remote terminal is defined in terms of approved zip codes.

69. The system of Claim 59, wherein the at least one remote terminal comprises a plurality of remote terminals.

70. The system of Claim 59, wherein the signal comprises a data package having transaction information selected from the group consisting of store number, identification number, clerk number, transaction number, date, dollar amount, check information, cash information, and GPS information.

71. The system of Claim 59, wherein information about the financial transaction comprises information about a proffered payment.

72. The system of Claim 71 , wherein a proffered payment comprises a proffered promissory payment including a payment by check.

73. A system for processing financial transactions, the system comprising: at least one portable remote terminal that obtains information about the financial transaction and location information about the location of the at least one remote terminal at the time the financial transaction occurs, wherein the location information includes a GPS signal, and wherein the at least one remote terminal sends a signal indicative of the location information and the financial information for processing; and an authorizing host that receives the signal transmitted by the at least one remote terminal, wherein the authorizing host categorizes a plurality of approved locations for the at least one portable remote terminal, and wherein the authorizing host receives the signal from the at least one portable remote terminal and determines whether to approve or decline the financial transaction based, at least in part, on whether the location indicated by location information sent by the at least one portable remote device is within one of the plurality of approved locations for the at least one portable remote terminal.

74. The system of Claim 73, wherein the at least one remote terminal includes a GPS receiver that receives GPS signals and determines the location coordinates of the at least one remote terminal based upon the GPS signal.

75. The system of Claim 74, wherein the authorizing host includes a risk assessment component that evaluates the risk associated with the financial transaction, and wherein the risk assessment component adjusts the risk assessment based upon the location information received from the at least one remote terminal.

76. The system of Claim 75, wherein the risk assessment component performs a standard risk assessment when the location information indicates that the at least one remote terminal is in at least one of the approved locations.

77. The system of Claim 76, wherein the risk assessment component adjusts the risk assessment when the location information indicates that the at least one remote terminal is not in at least one of the approved locations by evaluating risk factors associated with the new location.

78. The system of Claim 77, wherein the risk factors for the new location include payment history on other financial transactions in the same location.

79. The system of Claim 75, wherein the authorization host categorizes the plurality of approved locations for the at least one remote terminal such that the merchant can move the at least one remote terminal from one location to another.

80. The system of Claim 79, wherein the risk assessment component declines financial transactions when the location information provided by the at least one remote terminal indicates the at least one remote terminal is not in one of the plurality of approved locations.

81. The system of Claim 79, wherein the plurality of approved locations are defined as a region in which the GPS coordinates provided by the at least one remote terminal must fall within.

82. The system of Claim 81 , wherein the authorization host has a data structure associated therewith that maps zip codes to GPS coordinates such that the authorization host can determine if a GPS coordinate falls within a particular zip code and wherein the approved location for the at least one remote terminal is defined in terms of approved zip codes.

83. The system of Claim 73, wherein the at least one remote terminal comprises a plurality of remote terminals.

84. The system of Claim 73, wherein the signal comprises a data package having transaction information selected from the group consisting of store number, identification number, clerk number, transaction number, date, dollar amount, check information, cash information, and GPS information.

85. The system of Claim 73, wherein information about the financial transaction comprises information about a proffered payment.

86. The system of Claim 85, wherein a proffered payment comprises a proffered promissory payment including a payment by check.

87. A method of determining the risks of accepting a proffered promissory payment, the method comprising: obtaining location information about the location of a remote transaction device by the remote transaction device; capturing transaction information about the proffered promissory payment by the remote transaction device; sending both the transaction information and the location information of the remote transaction device to a central authorized host; and performing risk assessment of the proffered promissory payment by the central authorized host, wherein performing the risk assessment comprises, at least in part, determining whether the location information indicates that the location of the remote device is within at least one of a plurality of authorized locations for the remote transaction device.

88. The method of Claim 87, wherein obtaining location information of a remote transaction device comprises receiving GPS signals and determining a GPS based location of the remote transaction device.

89. The method of Claim 87, wherein determining whether the GPS based location is in the at least one authorized location comprises determining whether the GPS based location is within a region defined by a pre-approved zip code for the remote transaction device.

90. The method of Claim 87, wherein performing the risk assessment further comprises determining a risk score of accepting the proffered promissory payment based upon the GPS information, the information about the merchant, the amount of the proffered promissory payment, and the type of transaction to determine the risk score.

91. The method of Claim 90, wherein the risk score is adjusted based upon whether the GPS information is within at least one authorized location for the remote transaction device.

92. The method of Claim 87, wherein performing the risk assessment of accepting the proffered promissory payment comprises determining whether the GPS based location is in the at least one of the authorized locations and comprises determining which of a plurality of authorized locations the GPS location falls within.

93. The method of Claim 92, wherein a risk score is calculated for the proffered promissory payment based upon risk factors associated with the authorized location if it is determined that the GPS location falls within the authorized location.

94. The method of Claim 92, wherein a risk score is calculated for the proffered promissory payment based upon new risk factors associated with the GPS location when the GPS location does not fall within an authorized location.

95. A method of determining the risks of accepting a proffered payment, the method comprising: obtaining location information about the location of a remote transaction device by the remote transaction device, wherein the location information includes a GPS signal; capturing transaction information about the proffered payment by the remote transaction device; sending both the transaction information and the location information of the remote transaction device to a central authorized host; and performing risk assessment of the proffered payment by the central authorized host, wherein performing the risk assessment comprises, at least in part, determining whether the location information indicates that the location of the remote device is within at least one of a plurality of authorized locations for the remote transaction device.

96. The method of Claim 95, wherein obtaining location information of a remote transaction device comprises receiving GPS signals and determining a GPS based location of the remote transaction device.

97. The method of Claim 95, wherein determining whether the GPS based location is in the at least one authorized location comprises determining whether the GPS based location is within a region defined by a pre-approved zip code for the remote transaction device.

98. The method of Claim 95, wherein performing the risk assessment further comprises determining a risk score of accepting the proffered payment based upon the GPS information, the information about the merchant, the amount of the proffered payment, and the type of transaction to determine the risk score.

99. The method of Claim 98, wherein the risk score is adjusted based upon whether the GPS information is within at least one authorized location for the remote transaction device.

100. The method of Claim 95, wherein performing the risk assessment of accepting the proffered payment comprises determining whether the GPS based location is in the at least one of the authorized locations and comprises determining which of a plurality of authorized locations the GPS location falls within.

101. The method of Claim 100, wherein a risk score is calculated for the proffered payment based upon risk factors associated with the authorized location if it is determined that the GPS location falls within the authorized location.

102. The method of Claim 100, wherein a risk score is calculated for the proffered payment based upon new risk factors associated with the GPS location when the GPS location does not fall within an authorized location.

103. A system for determining the risks of accepting a proffered payment, the system comprising: a means for obtaining location information about the location of a remote transaction device by the remote transaction device; a means for capturing transaction information about the proffered payment by the remote transaction device; a means for sending the transaction information and the location information of the remote transaction device to a central authorized host; and a means for performing risk assessment of the proffered payment by the central authorized host, wherein performing the risk assessment comprises, at least in part, determining whether the location information indicates that the location of the remote device is within at least one of a plurality of authorized locations for the remote transaction device.

104. The system of Claim 103, wherein the means for obtaining location information includes a GPS receiver that receives GPS signals and determines the location coordinates of the remote transaction device based upon the GPS signal.

105. The system of Claim 104, wherein the means for performing risk assessment includes a risk assessment component that evaluates the risk associated with the financial transaction, and wherein the risk assessment component adjusts the risk assessment based upon the location information received from the remote transaction device.

106. The system of Claim 105, wherein the risk assessment component performs a standard risk assessment when the location information indicates that the remote transaction device is in at least one of the approved locations.

107. The system of Claim 106, wherein the risk assessment component adjusts the risk assessment when the location information indicates that the remote transaction device is not in at least one of the approved locations by evaluating risk factors associated with the new location.

108. The system of Claim 107, wherein the risk factors for the new location include payment history on other financial transactions in the same location.

109. The system of Claim 105, wherein the means for performing risk assessment categorizes the plurality of approved locations for the remote transaction device such that the merchant can move the remote transaction device from one location to another.

110. The system of Claim 109, wherein the risk assessment component declines financial transactions when the location information provided by the remote transaction device indicates that the remote transaction device is not in one of the plurality of approved locations.

111. The system of Claim 110, wherein the plurality of approved locations are defined as a region in which the GPS coordinates provided by the remote transaction device must fall within.

112. The system of Claim 111 , wherein the authorization host has a data structure associated therewith that maps zip codes to GPS coordinates such that the authorization host can determine if a GPS coordinate falls within a particular zip code and wherein the approved location for the remote transaction device is defined in terms of approved zip codes.

113. The system of Claim 103, wherein the remote transaction device comprises a plurality of remote transaction devices.

114. The system of Claim 103, wherein the transaction information is selected from the group consisting of store number, identification number, clerk number, transaction number, date, dollar amount, check information, cash information, and GPS information.

115. The system of Claim 103, wherein the proffered payment comprises a proffered promissory payment including a payment by check.

116. A remote transaction device for capturing and transmitting data to a central authorizing host indicative of a proffered payment, the device comprising: a financial data component that obtains financial information about the proffered payment; a location component that determines the location of the remote transaction device when the financial information about the proffered payment is obtained; a transceiver component that is communicatively linked to the central authorized host; and a processor component that receives the financial information and the location information and induces the transceiver component to transmit the financial information and the location information to the central authorizing host to thereby permit the central authorizing host to evaluate the risk of accepting the proffered payment, wherein the risk can be assessed in light of the present location of the remote transaction device.

117. The device of Claim 116, wherein the financial data component comprises a reader capable of reading the MICR code on a check.

118. The device of Claim 117, wherein the financial data component further comprises an input keyboard, whereby additional information about the proffered payment can be input into the remote transaction device.

119. The device of Claim 116, wherein the location component comprises a GPS receiver that receives GPS signals and determines the location of the remote transaction device based upon the received GPS signals.

120. The device of Claim 116, wherein the processing component induces the transceiver component to transmit information about the identity of the customer offering the proffered payment, the payment amount, the type of transaction, and information about the merchant.

121. The device of Claim 116, wherein the transceiver component is telephonically connected to the central authorizing host.

122. The device of Claim 116, wherein the transceiver component is connected to the central authorized host via an internet connection.

123. The device of Claim 116, wherein the remote transaction device further comprises a display, and wherein the transceiver component receives signals from the central authorizing host indicating whether the proffered payment should be accepted or declined by the merchant and the acceptance or declined information is displayed on the display.

124. The device of Claim 116, wherein the proffered payment comprises a proffered promissory payment including a payment by check.

125. A remote transaction device for capturing and transmitting data to a risk assessment agency indicative of a proffered promissory payment, the device comprising: a financial data means for obtaining financial information about the proffered promissory payment; a location means for determining the location of the remote transaction device when the financial information about the proffered promissory payment is obtained; a transceiver means for communicating with the risk assessment agency; and a control means for accumulating information from the financial data means and the location means so as to be able to induce the transceiver means to transmit information to the risk assessment agency to allow the risk assessment agency to determine the risk of accepting the proffered promissory payment based on both the financial information about the proffered promissory payment and the location at which the payment is occurring.

126. The device of Claim 125, wherein the financial data means comprises a reader capable of reading the MICR code on a check.

127. The device of Claim 126, wherein the financial data means further comprises an input keyboard, whereby additional information about the proffered promissory payment can be input into the remote transaction device.

128. The device of Claim 127, wherein the location means comprises a GPS receiver that receives GPS signals and determines the location of the remote transaction device based upon the received GPS signals.

129. The device of Claim 125, wherein the processing means induces the transceiver means to transmit information about the identity of the customer offering the proffered promissory payment, the payment amount, the type of transaction, and information about the merchant.

130. The device of Claim 125, wherein the transceiver means is telephonically connected to the central authorizing host.

131. The device of Claim 125, wherein the transceiver means is connected to the central authorized host via an internet connection.

132. The device of Claim 125, wherein the remote transaction device further comprises a display, and wherein the transceiver means receives signals from the central authorizing host indicating whether the proffered promissory payment should be accepted or declined by the merchant and the acceptance and decline information is displayed on the display means.

133. The device of Claim 125, wherein the proffered promissory payment comprises a payment by check.

134. A method of providing information about the risk of accepting a proffered promissory payment at a point of sale (POS) device, the method comprising: inputting financial information about the proffered promissory payment at the point of sale device; determining the physical location of the point of sale device; and transmitting both the financial information and the physical location information from the point of sale device to a central authorizing host such that the central authorizing host can determine the risk of accepting or declining the proffered promissory payment based on both the financial information and the physical location information.

135. The method of Claim 134, wherein inputting financial information about the proffered promissory payment comprises evaluating the proffered promissory payment to capture data indicative of the purchaser, the purchase amount, and the account number corresponding to the proffered promissory payment.

136. The method of Claim 134, wherein evaluating the proffered promissory payment comprises electronically scanning the proffered promissory payment at the point of sale device to capture the MICR code of the proffered promissory payment.

137. The method of Claim 134, wherein determining the physical location of the point of sale device comprises: receiving GPS signals; and evaluating the GPS signals to determine the physical location of the point of sale device.

138. The method of Claim 134, further comprising transmitting information about the merchant so as to allow the risk assessment agency to ascertain whether the merchant is using the point of sale device in an approved location.

139. A system for assessing the risk of accepting proffered promissory payments being made at a plurality of merchants equipped with point of sale devices that transmit information about the proffered promissory payment wherein the point of sale devices further determine their location and transmit the location information, the system comprising: a transceiver that communicates with the plurality of point of sale devices; and a risk assessment component that evaluates the financial information about the proffered payment and the location information of the point of sale device, wherein the risk assessment component determines the risk of accepting the proffered payment based on the financial information and the location information of the point of sale device and provides an indication of whether to accept the proffered payment to the point of sale device via the transceiver.

140. The system of Claim 139, wherein the risk assessment component receives location information in the form of GPS coordinates determined by the point of sale device and wherein the risk assessment component verifies whether the GPS coordinates are within at least one pre-approved geographic region for the point of sale device.

141. The system of Claim 140, wherein the risk assessment component stores a plurality of pre-approved geographic regions for the point of sale device to facilitate businesses that travel between locations and wherein the risk assessment component utilizes a pre-approved risk scoring model when the GPS coordinates indicate that the point of sale device is within one of the plurality of pre-approved areas.

142. The system of Claim 141 , wherein the risk assessment component determines a new risk scoring model when the GPS coordinates indicate that the point of sale device is not within a pre-approved geographic location for the point of sale device.

143. The system of Claim 142, wherein the new risk scoring model is developed based at least in part upon payment history of other proffered payments in the non-pre- approved area.

144.. The system of Claim 140, wherein the risk assessment component categorizes regions based upon risk by zip codes.

145. The system of Claim 144, wherein the risk assessment component includes a database that interrelates GPS coordinates to zip codes such that the risk assessment component can assess the risk of accepting a proffered payment in any area by determining which zip code the GPS coordinates fall within and then accessing the risk factors for that zip code.

146. The system of Claim 139, wherein the risk assessment component evaluates the financial information to determine the risk of accepting a proffered payment by evaluating the location information, the merchant information, the transaction type, the payment history of the individual offering the proffered payment and the payment amount.

147. A system for assessing the risk of accepting proffered promissory payments being made at a plurality of merchants equipped with point of sale devices that transmit information about the proffered promissory payment wherein the point of sale devices further determine their GPS location and transmit the GPS information, the system comprising: a transceiver that communicates with the plurality of point of sale devices; and a risk assessment component that evaluates the financial information about the proffered payment and the GPS information of the point of sale device, wherein the risk assessment component determines the risk of accepting the proffered payment based on the financial information and the GPS information of the point of sale device and provides an indication of whether to accept the proffered payment to the point of sale device via the transceiver.

148. The system of Claim 147, wherein the risk assessment component verifies whether the GPS coordinates are within at least one pre-approved geographic region for the point of sale device.

149. The system of Claim 148, wherein the risk assessment component stores a plurality of pre-approved geographic regions for the point of sale device to facilitate businesses that travel between locations and wherein the risk assessment component utilizes a pre-approved risk scoring model when the GPS coordinates indicate that the point of sale device is within one of the plurality of pre-approved areas.

150. The system of Claim 149, wherein the risk assessment component determines a new risk scoring model when the GPS coordinates indicate that the point of sale device is not within a pre-approved geographic location for the point of sale device.

151. The system of Claim 150, wherein the new risk scoring model is developed based at least in part upon payment history of other proffered payments in the non-pre- approved area.

152. The system of Claim 147, wherein the risk assessment component categorizes regions based upon risk by zip codes.

153. The system of Claim 152, wherein the risk assessment component includes a database that interrelates GPS coordinates to zip codes such that the risk assessment component can assess the risk of accepting a proffered payment in any area by determining which zip code the GPS coordinates fall within and then accessing the risk factors for that zip code.

154. The system of Claim 147, wherein the risk assessment component evaluates the financial information to determine the risk of accepting a proffered payment by evaluating the location information, the merchant information, the transaction type, the payment history of the individual offering the proffered payment and the payment amount.

155. A method of assessing the risk of accepting a proffered payment, the method comprising: receiving location information from a point of sale device indicative of the location of a point of sale device; receiving financial information from the point of sale device indicative of the proffered payment; and evaluating the risk of accepting the proffered payment based at least in part on the location information provided by the point sale device an the financial information.

156. The method of Claim 155, wherein receiving location information comprises receiving GPS coordinates indicative of the location of the point of sale device.

157. The method of Claim 156, wherein evaluating the risk of accepting the proffered payment comprises: determining whether the GPS coordinates correspond to a geographic region corresponding to a pre-approved area for the point of sale device; and calculating a risk score based upon the risk factors associated with the pre- approved geographic region when it is determined the point of sale device is in a pre-approved region.

158. The method of Claim 157, further comprising calculating a risk score based upon the risk factors associated with a non-pre-approved region when it is determined that the point of sale device is not in a pre-approved region.

159. The method of Claim 157, wherein determining whether the GPS coordinates correspond to a geographic region corresponding to a pre-approved area for the point of sale device comprises determining whether the GPS coordinates fall within a pre-approved postal zip code.

160. A system of assessing the risk of accepting a proffered payment, the system comprising: a means for receiving location information from a point of sale device indicative of the location of a point of sale device; a means for receiving financial information from the point of sale device indicative of the proffered payment; and a means for evaluating the risk of accepting the proffered payment based at least in part on the location information provided by the point sale device an the financial information.

161. The system of Claim 160, wherein the means for receiving location information comprises receiving GPS coordinates indicative of the location of the point of sale device.

162. The system of Claim 161 , wherein the means for evaluating the risk of accepting the proffered payment comprises: determining whether the GPS coordinates c^'orrespond to a geographic region corresponding to a pre-approved area for the point of sale device; and calculating a risk score based upon the risk factors associated with the pre- approved geographic region when it is determined the point of sale device is in a pre-approved region.

163. The system of Claim 162, further comprising a means for calculating a risk score based upon the risk factors associated with a non-pre-approved region when it is determined that the point of sale device is not in a pre-approved region.

164. The system of Claim 162, wherein determining whether the GPS coordinates correspond to a geographic region corresponding to a pre-approved area for the point of sale device comprises determining whether the GPS coordinates fall within a pre-approved postal zip code.

165. The system of Claim 160, wherein accepting a proffered payment comprises accepting a proffered promissory payment including a payment by check.