US-12619994-B1 - System and methods for dynamic blockchain financial transactions

US12619994B1US 12619994 B1US12619994 B1US 12619994B1US-12619994-B1

Abstract

A system and method for generating virtual financial accounts that may be used to consummate transactions when the mobile device is off-line. The virtual financial accounts are generated in mobile devices that are associated with financial institutions. The financial accounts may be credit card or debit card accounts. Each attempted financial transaction by the mobile device is treated as a unique event. An app running on the mobile device calculates a risk score for the attempted transaction based on factors such as GPS location and typical spending patterns for the financial account, and then approves or denies the transaction. In some cases, biometric verification devices (such as fingerprints, facial recognition or voice recognition) may be used by the app to further authenticate the transaction.

Inventors

Yevgeniy Viatcheslavovich Khmelev
Gregory Brian Meyer

Assignees

UIPCO, LLC

Dates

Publication Date: 20260505
Application Date: 20220127

Claims (13)

1 . A mobile device that allows a person using the mobile device to consummate financial transactions with a point-of-sale system when the mobile device is off-line, comprising: a memory and a processor, the processor and memory configured to enable the mobile device to include a first preloaded set of financial blocks which are associated with a financial institution; and each financial block in the first preloaded set of financial blocks includes a monetary limit; each financial block in the first preloaded set of financial blocks being authorized for use over a different pre-specified time interval from each of the other financial blocks in the first preloaded set of financial blocks, after which the next block in sequence is activated for further financial transactions; an app on the mobile device that is configured to calculate a risk score for any attempted transaction the risk score being at least partially based on transaction location history using location history data generated by a GPS component on the mobile device, and to one of approve and deny an attempted transaction based upon the risk score and the monetary limit included in the financial block; and a screen on the mobile device that displays information relating to the attempted transaction; and a wireless communications module configured to communicate with a point-of-sale terminal using a short-range data transfer wireless communication protocol when the mobile device is not in electronic communication with the financial institution; first pre-loaded set of financial blocks being in the form of a blockchain ledger that is stored on the mobile device, and the first pre-loaded set of financial blocks are loaded into the mobile device while the mobile device is in communication with the financial institution; each block in the first pre-loaded set of financial blocks in the form of the blockchain ledger on the mobile computing device is associated with a dynamically assigned transaction authorization code assigned by the financial institution which acts as a virtual credit card number, such that the mobile device is configured to use the first pre-loaded set of financial blocks thereon to consummate a financial transaction with the point-of-sale system when the mobile device is not in electronic communication with the financial institution; the mobile device being configured to send the blockchain ledger to the financial institution upon the mobile device being in electronic communication with the financial institution after a period of not being in electronic communication with the financial institution, then the mobile computing device receives a new preloaded set of financial blocks from the financial institution; the new preloaded set of financial blocks differing from the first preloaded set of financial blocks with respect to at least one of the monetary limit of each of the blocks, the pre-specified time internal of each of the blocks, and a number of blocks in the set of financial blocks, a difference between the new preloaded set of financial blocks and the first preloaded set of financial blocks being based on the risk score that was calculated for the attempted transaction using the first preloaded set of financial blocks.
2 . The mobile device of claim 1 , wherein the app is configured to digitally sign the attempted transaction.
3 . The mobile device of claim 1 , further comprising digital signatures, wherein each digital signature is associated with a specific attempted transaction.
4 . The mobile device of claim 1 , wherein the authorization codes are generated by the financial institution, and are encrypted prior to transmittance to the mobile device.
5 . A mobile device comprising: a memory and a processor, the processor and memory configured to enable the mobile device to include a managing app; a first pre-loaded set of financial blocks; each financial block in the first preloaded set of financial blocks being authorized for use over a different pre-specified time interval from each of the other financial blocks in the first preloaded set of financial blocks, after which the next block in sequence is activate for further financial transactions; and each financial block in the first preloaded set of financial blocks including a respective monetary limit, the respective monetary limit associated with each financial block in the first preloaded set of financial blocks being different from the respective monetary limit associated with each of the other financial blocks in the first preloaded set of financial blocks; a wireless communications module in the mobile device configured to communicate with a point-of-sale terminal using a short-range data transfer wireless communication protocol when the mobile device is not in electronic communication with the financial institution; a GPS component in the mobile device, the GPS component being configured to generate location history data; the managing app is being configured to determine whether a proposed transaction should be authorized based upon data associated with at least one financial block in the first pre-loaded set of financial blocks; the managing app being configured to submit a virtual credit block credential and an authorization code to the point-of-sale terminal with the short-range data transfer wireless communication protocol when the proposed transaction is consistent with the data stored associated with the financial block; and wherein the managing app further includes a risk score calculator that provides a risk score that is used to determine whether the proposed transaction should be authorized, the risk score being at least partially based on transaction location history using the location history data generated by the GPS component on the mobile device; wherein the first pre-loaded set of financial blocks are in the form of a blockchain ledger that is stored on the mobile device, and the first pre-loaded set of financial blocks are loaded into the mobile device while the mobile device is in communication with the financial institution; wherein each block in the first pre-loaded set of financial blocks in the form of the blockchain ledger on the mobile computing device is associated with a dynamically assigned transaction authorization code assigned by the financial institution which acts as a virtual credit card number, such that the mobile device is configured to use the first pre-loaded set of financial blocks thereon to consummate a financial transaction with the point-of-sale system when the mobile device is not in electronic communication with the financial institution; wherein the mobile device is configured to send the blockchain ledger to the financial institution upon the mobile device being in electronic communication with the financial institution after a period of not being in electronic communication with the financial institution, then the mobile computing device receives a new preloaded set of financial blocks from the financial institution the new preloaded set of financial blocks differing from the first preloaded set of financial blocks with respect to at least one of the monetary limit of each of the blocks, the pre-specified time internal of each of the blocks, and a number of blocks in the set of financial blocks, a difference between the new preloaded set of financial blocks and the first preloaded set of financial blocks being based on the risk score that was calculated for the attempted transaction using the first preloaded set of financial blocks.
6 . The mobile device of claim 5 , wherein the mobile device is configured to transmit the virtual credit block credential to an institution that will pay the price of the transaction to a merchant associated with the specific point-of-sale terminal.
7 . The mobile device of claim 5 , wherein the managing app clears the financial blocks stored on the mobile device and receives a new set of financial blocks and transaction authorization codes after carrying out a settlement with the financial institution.
8 . The mobile device of claim 5 , comprising a touch screen configured to allow customers to submit their virtual credit block credentials to point-of-sale terminals.
9 . A system for consummating proposed transactions when remote mobile devices associated with an institution are off-line comprising: a server housed at the institution in communication with a database comprising transaction authorization codes, the institution also comprising a database of accounts associated with the remote mobile devices, wherein the accounts are at least one of bank accounts and credit card accounts; wherein the server is configured to transmit a first set of pre-loaded dynamic financial blocks identified by transaction authorization codes to the remote mobile devices for use as virtual credit blocks when the remote mobile devices are off-line; each financial block in the first preloaded set of financial blocks being authorized for use over a different pre-specified time interval from each of the other financial blocks in the first preloaded set of financial blocks, after which the next block in sequence is activate for further financial transactions; and each financial block in the first preloaded set of financial blocks including a respective monetary limit, the respective monetary limit associated with each financial block in the first preloaded set of financial blocks being different from the respective monetary limit associated with each of the other financial blocks in the first preloaded set of financial blocks; when the remote mobile devices are back on-line, the server being configured to settle any transactions consummated by the remote mobile devices when the remote mobile devices were off-line, and to debit the accounts accordingly; each of the remote mobile devices including a risk score calculator that provides a risk score that is used to determine whether a proposed transaction should be authorized when a respective remote mobile device is off-line, the risk score being at least partially based on transaction location history using location history data generated by a GPS component on the respective mobile device, the first pre-loaded set of financial blocks being in the form of a blockchain ledger that is stored on the remote mobile devices, and the first pre-loaded set of financial blocks are loaded into each of the remote mobile devices while the mobile device is in communication with the financial institution; each block in the first pre-loaded set of financial blocks in the form of the blockchain ledger on the mobile computing device being associated with a dynamically assigned transaction authorization code assigned by the financial institution which acts as a virtual credit card number, such that the mobile device is configured to use the first pre-loaded set of financial blocks thereon to consummate a financial transaction with the point-of-sale system when the mobile device is not in electronic communication with the financial institution; wherein each of the remote mobile devices is configured to send the blockchain ledger to the financial institution upon the mobile device being in electronic communication with the financial institution after a period of not being in electronic communication with the financial institution, then the mobile computing device receives a new preloaded set of financial blocks from the financial institution; the new preloaded set of financial blocks differing from the first preloaded set of financial blocks with respect to at least one of the monetary limit of each of the blocks, the pre-specified time internal of each of the blocks, and a number of blocks in the set of financial blocks, a difference between the new preloaded set of financial blocks and the first preloaded set of financial blocks being based on the risk score that was calculated for the attempted transaction using the first preloaded set of financial blocks.
10 . The system of claim 9 , wherein the virtual credit blocks are each limited to a one-time use.
11 . The system of claim 9 , wherein the server is configured to receive digital signatures authenticating the transactions consummated by the remote mobile devices.
12 . The system of claim 9 , wherein the server is configured to check the transaction authorization codes received from the remote mobile devices against its database of authorization codes for its active virtual credit blocks and debit the accounts whenever there is no discrepancy between the received transaction authorization codes and the authorization codes in its database of authorization codes.
13 . The system of claim 9 , further comprising providing data relating to the transactions consummated by the remote mobile devices to a machine learning algorithm housed in the server.

Description

This application claims the benefit of Provisional Patent Application No. 63/142,027, filed Jan. 27, 2021, and titled “Systems and Methods for Dynamic Blockchain Financial Transactions,” which is incorporated by reference herein in its entirety. TECHNICAL FIELD This disclosure relates to systems, methods, and mobile devices which implement secure off-line blockchain financial transactions for a mobile device. BACKGROUND Implementing credit card functions using mobile devices (such as smartphones) is well known in the art. Such services allow users to wed an authenticated mobile device to a financial account, such as a credit card account or a bank account. Purchases at cooperative vendors can then be executed by communication between the mobile device and the vendor's point of sale system, without the user needing to present a physical card associated with the financial account. Such a system is limited by the need for a wireless communication (such as a WiFi or cellular network connection to the internet) between the mobile device and servers associated with the financial institution that approve or deny the purchase, for example. The financial institution may approve or deny the transaction, based on security or account considerations, such as the current balance. Additionally, time is required for this wireless communication between remote servers and the mobile devices. For these reasons, there is a need for systems, methods, and mobile devices that implement secure off-line financial transactions. SUMMARY In one aspect, embodiments include a mobile device that allows a person holding the mobile device to consummate financial transactions when the mobile device is off-line. The mobile device includes a preloaded set of financial blocks which are associated with a financial institution. The mobile device is assigned transaction authorization codes which are associated with the financial blocks. The transaction authorization codes act as a virtual credit card number or a virtual debit card number. Each financial block includes a dynamically assigned monetary limit. An app on the mobile device is configured to calculate a risk score for any attempted transaction, and to approve or deny an attempted transaction based upon the risk score and the monetary limit included in the financial block. A screen on the mobile device displays information relating to the attempted transaction. In another aspect, embodiments include a mobile device that has a managing app and a set of financial blocks. Each financial block is associated with an authorization code. The mobile device also has a wireless communications module that is configured to communicate with point-of-sale terminals. The managing app is configured to determine whether a proposed transaction should be authorized based upon data associated with at least one financial block. The managing app is also configured to submit a virtual credit block credential and an authorization code to a specific point-of sale terminal whenever the proposed transaction is consistent with the data stored associated with the financial block. On yet another aspect, embodiments include a system for consummating proposed transactions when remote mobile devices associated with an institution are off-line. The system includes a server housed at the institution in communication with a database that stores transaction authorization codes. The institution also includes a database of accounts associated with the remote mobile devices. The accounts may be bank accounts or credit card accounts. The server is configured to transmit dynamic financial blocks identified by transaction authorization codes to the remote mobile devices for use as virtual credit blocks when the remote mobile devices are off-line. When the remote mobile devices are back on-line, the server is configured to settle any transactions consummated by the remote mobile devices when the remote mobile devices were off-line, and to debit the accounts accordingly. On yet another aspect, embodiments include a system for consummating proposed transactions when point of sale machines do not have connectivity themselves due to natural events or internet interruption for any reason. In this embodiment, the provider of the point of sale system would daily provide an update of credit card provider transaction blocks of virtual credit card numbers from contributing banks. These blocks would authenticate by applying POS specific risk rules that could limit the amount of purchase and type of purchase and match the consumer mobile device app provided blocks to allow local consummation of proposed transactions without the need of present connectivity to financial institutions. For example, a corner store could be provided blocks for cards regularly seen at the specific store in the last month. Those persons, according to the risk controls, are allowed to purchase the range and amount of products they have previously purchased in a given