Prosecution Insights
Last updated: October 02, 2026
Application No. 19/260,962

SELECTION OF ELECTRONIC TRANSACTION PROCESSING CHANNEL AND MULTI-FACTOR USER AUTHENTICATION

Final Rejection §101
Filed
Jul 07, 2025
Priority
Sep 28, 2022 — continuation of 12/373,833
Examiner
REAGAN, JAMES A
Art Unit
3697
Tech Center
3600 — Transportation & Electronic Commerce
Assignee
PayPal Inc.
OA Round
2 (Final)
71%
Grant Probability
Favorable
3-4
OA Rounds
2y 6m
Est. Remaining
91%
With Interview

Examiner Intelligence

Grants 71% — above average
71%
Career Allowance Rate
633 granted / 887 resolved
+19.4% vs TC avg
Strong +20% interview lift
Without
With
+19.9%
Interview Lift
resolved cases with interview
Typical timeline
3y 9m
Avg Prosecution
36 currently pending
Career history
923
Total Applications
across all art units

Statute-Specific Performance

§101
24.4%
-15.6% vs TC avg
§103
51.4%
+11.4% vs TC avg
§102
5.9%
-34.1% vs TC avg
§112
11.4%
-28.6% vs TC avg
Black line = Tech Center average estimate • Based on career data from 887 resolved cases

Office Action

§101
DETAILED ACTION Acknowledgments The present application, filed on or after March 16, 2013, is being examined under the first inventor to file provisions of the AIA . This action is in reply to the amendment and response filed on 08/11/2026. Claims 2 and 11 have been amended. Claims 2-21 are currently pending and have been examined. Information Disclosure Statement The Information Disclosure Statements filed 05/14/2026 and 07/30/2026 have been considered. Initialed copies of the Form 1449 are enclosed herewith. Response to Arguments Arguments and Assertions by the Applicant Applicant’s arguments received 08/11/2026 with respect to the prior art rejections have been considered but are moot in view of the new ground(s) of rejection. Applicant’s amendments, with respect to the rejection of claims 2-21 under 35 U.S.C. 101 have been fully considered and are not persuasive. The rejections of claims 2-21 under 35 U.S.C. 101 have been updated to conform to current guidelines and maintained accordingly. The relevant question is whether the claims do more than collect, store, display, and compare data to optimize mobile electronic transactions objective on a generic computer. This does not appear to be the case. Taking the claim elements separately, the function performed by the computer at each step of the process is purely conventional. Using a computer to obtain data, use data to identify other data, and filtering data are some of the most basic functions of a computer. Moreover, the technical solution described in this invention does not alter hardware structure or its routine, does not transform the character of the information being processed, does not identify a novel source or type of data, does not advance the functionality of a computer as a tool, and does not incorporate specific rules enabling the computer to accomplish innovative utilities. Therefore the claims are not significantly more than recitations of a judicial exception. In summary, each step does no more than require a common computer to perform universal computer functions. Therefore, the claims are directed to using a computer as a tool to follow instructions. Considered as an ordered combination, the computer components of petitioner's method, system, and/or computer readable medium add nothing that is not already present when the steps reconsidered separately. Viewed as a whole, the method, system, and/or computer readable medium claims simply recite the concept of analyzing storing data in the form of digital data, comparing/categorizing data, and displaying the data. The method, system, and/or computer readable medium claims do not, for example, purport to improve the functioning of the computer itself. Nor do they effect an improvement in any other technology or technical field. Instead, the claims at issue amount to nothing significantly more than an instruction to apply the abstract idea of organizing and analyzing data using some unspecified, generic computer. Consequently, that is not enough to transform an abstract idea into a patent-eligible invention. As in TLI, Applicant’s claims are “not directed to a specific improvement to computer functionality. Rather, they are directed to the use of conventional or generic technology in a nascent but well-known environment, without any claim that the invention reflects an inventive solution to any problem presented by combing the two.” See TLI Communications LLC v. A.V. Automotive, LLC, (Fed. Cir. 2016). “The specification does not describe a new telephone, a new server, or a new physical combination of the two. The specification fails to provide any technical details for the tangible components, but instead predominantly describes the system and methods in purely functional terms.” Id. "Instead, the claims, as noted, are simply directed to the abstract idea of classifying and storing digital images in an organized manner." Id. The claims in this case fall into a familiar class of claims “directed to” a patent-ineligible concept. The focus of the asserted claims, as illustrated by the claims, is on collecting information, analyzing it, displaying certain results of the collection and analysis and sending instruction to implement result. The outer limits of “abstract idea” need not be defined, nor at this stage exclude the possibility that any particular inventive means are to be found somewhere in the claims, to conclude that these claims focus on an abstract idea - and hence require stage-two analysis under §101. Information as such is an intangible. See Microsoft Corp. v. AT & T Corp., 550 U.S. 437, 451 n.12 (2007); Bayer AG v. Housey Pharm., Inc., 340 F.3d 1367, 1372 (Fed. Cir. 2003). Accordingly, the courts have treated, including when limited to particular content (which does not change its character as information), as within the realm of abstract ideas. See, e.g., Internet Patents, 790 F.3d at 1349; OIP Techs., Inc. v. Amazon.com, Inc., 788 F.3d 1359, 1363 (Fed. Cir. 2015); Content Extraction & Transmission LLC v. Wells Fargo Bank, Nat’l Ass’n, 776 F.3d 1343, 1347 (Fed. Cir. 2014); Digitech Image Techs., LLC v. Elecs. for Imaging, Inc., 758 F.3d 1344, 1351 (Fed. Cir. 2014); CyberSource Corp. v. Retail Decisions, Inc., 654 F.3d 1366, 1370 (Fed. Cir. 2011). In a similar vein, the courts have treated analyzing information by steps people go through in their minds, or by mathematical algorithms, without more, as essentially mental processes within the abstract-idea category. See, e.g., TLI Communications, 823 F.3d at 613; Digitech, 758 F.3d at 1351; Bancorp Servs., L.L.C. v. Sun Life Assurance Co. of Canada (U.S.), 687 F.3d 1266, 1278 (Fed. Cir. 2012); CyberSource Corp. v. Retail Decisions, Inc., 654 F.3d 1366, 1372 (Fed. Cir. 2011); SiRF Tech., Inc. v. Int’l Trade Comm’n, 601 F.3d 1319, 1333 (Fed. Cir. 2010); see also Mayo, 132 S. Ct. at 1301; Parker v. Flook, 437 U.S. 584, 589–90 (1978); Gottschalk v. Benson, 409 U.S. 63, 67 (1972). In addition, merely presenting the results of abstract processes of collecting and analyzing information, without more (such as identifying a particular tool for presentation), is abstract as an ancillary part of such collection and analysis. See, e.g., Content Extraction, 776 F.3d at 1347; Ultramercial, Inc. v. Hulu, LLC, 772 F.3d 709, 715 (Fed. Cir. 2014). In this case, the claims are clearly focused on the combination of those abstract-idea processes. This invention claims a process of gathering and analyzing information of a specified content, processing that data, then displaying the results, without any particular or asserted inventive technology for performing those functions. They are therefore directed to an abstract idea. For stage 2 of the analysis, merely selecting information, by content or source, for collection, analysis, and display does nothing significant to differentiate a process from ordinary mental processes, whose implicit exclusion from §101 undergirds the information-based category of abstract ideas. Referring to Electric Power Group, LLC v. Alstrom S.A., the claims in this case do not even require a new source or type of information, or new techniques for analyzing it. See, e.g., US Patent 8,401,710 B2 (Budhraja et. al.), col. 8, lines 51–62 (referring to existing phasor data sources); J.A. 6969–71 (describing workings and history of phasor data use); Electric Power Group Br. at 21–22; Reply Br. at 5 (new algorithms not claimed). As a result, the claims do not require an inventive set of components or methods, such as measurement devices or techniques that would generate new data. They do not invoke any novel inventive programming. Merely requiring the selection and manipulation of information—to provide a “humanly comprehensible” amount of information useful for users, Reply Br. at 6; Electric Power Group Br. at 14–15—by itself does not transform the otherwise-abstract processes of information collection and analysis. Claim Rejections - 35 USC § 101 35 U.S.C. 101 reads as follows: Whoever invents or discovers any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof, may obtain a patent therefor, subject to the conditions and requirements of this title. Claims 2-21 are rejected under 35 U.S.C. 101 because the claimed invention is directed to non-patent eligible subject matter because the claim(s) as a whole, considering all claim elements both individually and in combination, do not amount to significantly more than an abstract idea. Step 1: The claims recite a process, system, apparatus, article of manufacture, and/or a nontransitory storage medium with instructions, each of which are proper statutory categories. Step 2A (prong 1): Claim 2 (representative of claims 11 and 16): The claim limitations are grouped as shown immediately following: receiving, by a user computing device, a request for a transaction involving a user of the user computing device and a third party system; (Certain Methods Of Organizing Human Activity - business relations or managing personal behavior or relationships or interactions between people including following rules or instructions) receiving, by the user computing device, first user authentication information for a first trusted system; (Certain Methods Of Organizing Human Activity - business relations or managing personal behavior or relationships or interactions between people including following rules or instructions) receiving, from the first trusted system by the user computing device, confirmation of a first valid login to the first trusted system based on the first user authentication information; (Certain Methods Of Organizing Human Activity - business relations or managing personal behavior or relationships or interactions between people including following rules or instructions) receiving, by the user computing device, second user authentication information for a second trusted system; (Certain Methods Of Organizing Human Activity - business relations or managing personal behavior or relationships or interactions between people including following rules or instructions) receiving, from the second trusted system by the user computing device, confirmation of a second valid login to the second trusted system based on the second user authentication information; (Certain Methods Of Organizing Human Activity - business relations or managing personal behavior or relationships or interactions between people including following rules or instructions) in response to receiving the confirmation of the first valid login and the confirmation of the second valid login, outputting, by the user computing device, a proof of authentication to enable the transaction. (Certain Methods Of Organizing Human Activity - business relations or managing personal behavior or relationships or interactions between people including following rules or instructions) Dependent claim 9 remedies the deficiency. Step 2A (prong 2): Claim 1 (representative of claims 11 and 16): …a user computing device …a third party system …a computing system …a processor …a non-transitory, computer-readable medium These remaining claim limitations are delineated as shown immediately preceding. The abstract idea is not integrated into a practical application. There are no improvements to the functioning of a computer, other technology or technical field, a particular machine is not cited, nothing is transformed to a different state or thing, the abstract idea is not more than a drafting effort designed to monopolize the abstract idea. The claim merely uses a computer as a tool to perform the abstract idea, which is generally linked to a particular field of use, in this case, marketing and advertising. Thus, these limitations are recited at a high-level of generality (i.e., as a generic processor and memory performing a generic computer function of processing and storing data) such that it amounts no more than mere instructions to apply the exception using a generic computer component – MPEP 2106.05(f). Further, receiving data, evaluating data and distributing data are data gathering and data outputting, which has no effect on technology and does no more than generally link the use of the judicial exception to a particular technological environment or field of use – see MPEP 2106.05(h). Step 2B: The claim limitations do not provide an Inventive Concept. The claim limitations do not recite additional elements that amount to significantly more that the abstract idea because the additional elements of the system comprising a computer processor, computer readable storage medium with instructions, and a memory configured to store information, each recited at a high level of generality in a computer network which only perform the universal computer functions of accessing, receiving, storing, and processing data, transmitting and presenting information. Taking the elements both individually and as an ordered combination, the function performed by the computer at each step of the process is purely orthodox. Using a computer to obtain and display data are some of the most basic functions of a computer. As shown, the individual limitations claimed are some of the most rudimentary functions of a computer. The technical solution described in this invention does not alter hardware structure or its routine, does not transform the character of the information being processed, does not identify a novel source or type of data, does not advance the functionality of a computer as a tool, and does not incorporate specific rules enabling the computer to accomplish innovative utilities. In summary, the individual step and/or component does no more than require a general computer to perform standard computer functions. As discussed above with respect to integration of the abstract idea into a practical application, the additional element of a computer devices amounts to no more than mere instructions to apply the exception using a generic computer component - requiring the use of software to tailor information and provide it to the user on a generic computer, Intellectual Ventures I LLC v. Capital One Bank (USA), 792 F.3d 1363, 1370-71, 115 USPQ2d 1636, 1642 (Fed. Cir. 2015). CONCLUSION The prior art made of record and not relied upon is considered pertinent to applicant's disclosure. Non-Patent Literature: Haitao Liu et al. “Application of Blockchain Technology in Electric Vehicle Charging Piles Based on Electricity Internet of Things.” (31 August 2022). Retrieved online 04/19/2024. https://www.hindawi.com/journals/wcmc/2022/8533219/ EVGI Working Group. “Blockchains for Electric Vehicles & Grid Integration Review Mobility Open Blockchain Initiative.” (August 2020). Retrieved online 04/19/2024. https://dlt.mobi/wp-content/uploads/2020/10/EVGI-Business-Review.pdf Shiyuan Xu et al. “EVchain: An Anonymous Blockchain-Based System for Charging–Connected Electric Vehicles.” (December 2021). Retrieved online 04/19/2024. https://ieeexplore.ieee.org/stamp/stamp.jsp?arnumber=9449329 Foreign Art: MICHAEL MENENDEZ et al. “SYSTEMS AND METHODS FOR PROVIDING TARGETED ADVERTISEMENTS TO CHARGING STATION FOR ELECTRIC VEHICLES.” (JP 2020/042844 A) LIN CHEN-SHENG et al. “METHOD OF ASSISTING ELECTRIC VEHICLE USER IN RESERVING RECHARGEABLE BATTERY AT CHARGING STATION.” (JP 2019/164768 A) YAMAMURA MAKOTO et al. “CHARGING STATION AND CHARGING-STATION GUIDANCE APPARATUS FOR AUTONOMOUS TRAVEL SERVICE VEHICLE.” (JP 2017/182635 A) Applicant’s amendment filed on 08/11/2026 necessitated the new ground(s) of rejection presented in this Office action. Accordingly, THIS ACTION IS MADE FINAL. See MPEP § 706.07(a). Applicant is reminded of the extension of time policy as set forth in 37 CFR 1.136(a). A shortened statutory period for reply to this final action is set to expire THREE MONTHS from the mailing date of this action. In the event a first reply is filed within TWO MONTHS of the mailing date of this final action and the advisory action is not mailed until after the end of the THREE-MONTH shortened statutory period, then the shortened statutory period will expire on the date the advisory action is mailed, and any extension fee pursuant to 37 CFR 1.136(a) will be calculated from the mailing date of the advisory action. In no event, however, will the statutory period for reply expire later than SIX MONTHS from the date of this final action. Any inquiry of a general nature or relating to the status of this application or concerning this communication or earlier communications from the Examiner should be directed to James A. Reagan (james.reagan@uspto.gov) whose telephone number is 571.272.6710. The Examiner can normally be reached Monday through Friday from 9 AM to 5 PM. If attempts to reach the examiner by telephone are unsuccessful, the Examiner’s supervisor, John Hayes, can be reached at 571.272.6708. Information regarding the status of an application may be obtained from the Patent Application Information Retrieval (PAIR) system. Status information for published applications may be obtained from either Private PAIR or Public PAIR. Status information for unpublished applications is available through Private PAIR only. For more information about the PAIR system, see http://portal.uspto.gov/external/portal/pair . Should you have questions on access to the Private PAIR system, contact the Electronic Business Center (EBC) at 866.217.9197 (toll-free). Any response to this action should be mailed to: Commissioner for Patents PO Box 1450 Alexandria, Virginia 22313-1450 or faxed to 571-273-8300. Hand delivered responses should be brought to the United States Patent and Trademark Office Customer Service Window: Randolph Building 401 Dulany Street Alexandria, VA 22314. /JAMES A REAGAN/Primary Examiner, Art Unit 3697 james.reagan@uspto.gov 571.272.6710 (Office) 571.273.6710 (Desktop Fax)
Read full office action

Prosecution Timeline

Jul 07, 2025
Application Filed
May 12, 2026
Non-Final Rejection mailed — §101
Aug 03, 2026
Interview Requested
Aug 11, 2026
Response Filed
Aug 11, 2026
Applicant Interview (Telephonic)
Aug 11, 2026
Examiner Interview Summary
Sep 15, 2026
Final Rejection mailed — §101 (current)

Precedent Cases

Applications granted by this same examiner with similar technology

Patent 12749090
SYSTEMS AND METHODS FOR ONLINE TRAFFIC FILTRATION BY ELECTRONIC CONTENT PROVIDERS
2y 2m to grant Granted Sep 29, 2026
Patent 12749065
IN-PERSON TRANSACTION PROCESSING SYSTEM
1y 9m to grant Granted Sep 29, 2026
Patent 12739741
METHOD AND SYSTEM FOR EXECUTING INTERNET-OF-THINGS-APPLICATIONS
3y 9m to grant Granted Sep 15, 2026
Patent 12737486
Automated Fraudulent Document Detection
1y 10m to grant Granted Sep 15, 2026
Patent 12731164
PLATFORM AND METHOD FOR TOKENIZING CONTENT
4y 0m to grant Granted Sep 08, 2026
Study what changed to get past this examiner. Based on 5 most recent grants.

Strategy Recommendation AI-generated — please review before filing

Get a prosecution strategy drawn from examiner precedents, rejection analysis, and claim mapping.
Typically takes 5-10 seconds — AI-generated, attorney review required before filing

Prosecution Projections

3-4
Expected OA Rounds
71%
Grant Probability
91%
With Interview (+19.9%)
3y 9m (~2y 6m remaining)
Median Time to Grant
Moderate
PTA Risk
Based on 887 resolved cases by this examiner. Grant probability derived from career allowance rate.

Sign in with your work email

Enter your email to receive a magic link. No password needed.

Personal email addresses (Gmail, Yahoo, etc.) are not accepted.

Free tier: 3 strategy analyses per month