Method of reducing fraud in credit card and other E-business
First Claim
1. A method for reducing credit card fraud consisting of the following steps:
- 1. An authorized user accesses his credit card account which has a usage line, where the usage line, which is solely administrated by the authorized user, is a paradigm that optionally defines approved merchants, approved times, coincident user approval and other criteria as established by the user. 2. The user presents or communicates his credit card, at time of a purchase, to the merchant. 3. The merchant contacts a card processor, initiating a request that funds be transferred from the account to the merchant. 4. The card processor relays the request to an issuing bank for the credit card account. 5. The issuing bank individually processes the request through the account and through the usage line, said processing generating a first result for the account, and a second result for the usage line. 6. The issuing bank compares the results and issues a reply to the card processor that the request is approved if both the first result and the second result are approved, or replies that the requests is declined if either result is not approved. 7. The card processor communicates the reply to the merchant. 8. The merchant completes the purchase, or notifies user that card was declined.
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Accused Products
Abstract
A credit card account having increased protection against fraud, wherein the credit card account has a usage line, which is a paradigm of rules for accessing the line of credit of the card account, where the usage line is set up and administered by the authorized user of the credit card account, and where the paradigm reflects the users buying preferences and level of concern for security. The authorized user can access the usage line over the internet, to periodically update buying plans, require explicit email approval for designated purchases, create rules for employee users, view a log of approved and declined transaction requests for purposes of analyzing for fraud, and remove all usage line constraints.
130 Citations
12 Claims
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1. A method for reducing credit card fraud consisting of the following steps:
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1. An authorized user accesses his credit card account which has a usage line, where the usage line, which is solely administrated by the authorized user, is a paradigm that optionally defines approved merchants, approved times, coincident user approval and other criteria as established by the user. 2. The user presents or communicates his credit card, at time of a purchase, to the merchant. 3. The merchant contacts a card processor, initiating a request that funds be transferred from the account to the merchant. 4. The card processor relays the request to an issuing bank for the credit card account. 5. The issuing bank individually processes the request through the account and through the usage line, said processing generating a first result for the account, and a second result for the usage line. 6. The issuing bank compares the results and issues a reply to the card processor that the request is approved if both the first result and the second result are approved, or replies that the requests is declined if either result is not approved. 7. The card processor communicates the reply to the merchant. 8. The merchant completes the purchase, or notifies user that card was declined. - View Dependent Claims (2)
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- 3. A credit card account with an authorized user and an issuing bank, where said credit card account has a line of credit and a usage line, where the usage line is a paradigm developed and administered by the authorized user, where the paradigm is a set of criteria for granting permission to access the line of credit, such that at the discretion of the authorized user, a pending request for payment could require approval from both the authorized user and the issuing bank.
- 8. A credit card account as claimed in claim 8 where said record acts a ready source for the authorized user to evaluate whether any unauthorized transactions were attempted.
Specification