Automated soft limit control of electronic transaction accounts

• US 20030208439A1
• Filed: 05/03/2003
• Published: 11/06/2003
• Est. Priority Date: 05/03/2002
• Status: Abandoned Application

• Current Assignee: Rodger H. Rast
• Original Assignee: Rodger H. Rast
• Inventors: Rast, Rodger H.
• Application Number:
  US10/431,064
• Publication Number:
  US 20030208439A1
• Time in Patent Office: Days
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/403 Solvency checks
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

A system and method of providing one or more user selectable transaction limits (soft limit) for an associated account, generally within the constraints of fixed transaction limits for the account. The soft limit may be adjusted by the user in response to anticipated transaction volume to reduce fraudulent charge risk. By way of example, the soft limit remains at a low default transaction limit that is generally sufficient for covering daily expenditures when utilizing the account, and may be temporarily set to a higher limit by the user contemplating making a purchases which may exceed the soft limit. After a time period has elapsed or a given number of transactions have occurred after user selection of the soft limit it drops back to the default value. The inventive system and method may be practiced within or interfaced to “card processing centers” of transactions cards or other account tokens.

Claims

1. A system for controlling transaction authorization, comprising:

means for user control of a second transaction limit amount for an account of said user having a fixed first transaction limit amount;

means for submitting a transaction for execution wherein an amount and transaction token associated with said user account are submitted against which said transaction amount is to be posted; and

means for rejecting said transaction in response to information about prior transactions executed for said account if execution of said submitted transaction would result in exceeding the second transaction limit of said user account.

2. An apparatus as recited in claim 1, wherein said fixed first transaction limit comprises at least one limit to be imposed on transaction activity of said user account that may not be interactively set by said user.

3. An apparatus as recited in claim 2, wherein said fixed first transaction limit comprises either a credit limit, or a balance limit.

4. An apparatus as recited in claim 1, wherein said means for user control comprises:

a communication channel from said user to a networked computer database system upon which said second transaction limit is maintained; and

an interface configured for altering said second transaction limit amount in the electronic records of the user account in response to user input.

5. An apparatus as recited in claim 4, wherein said networked computer database system is additionally configured for maintaining additional account information.

6. An apparatus as recited in claim 4, wherein communication channel comprises signals passed over a wired or wireless telephone connection, an internet connection, or any electronic medium over which user input may be transmitted.

7. An apparatus as recited in claim 4:

wherein said communication channel is a telephone network;

wherein said interface is configured as an automated telephone application which generates voice prompts and registers user input as dual-tone multifrequency coded key inputs or voice responses.

8. An apparatus as recited in claim 1, wherein said means for submitting a transaction comprises a point of sale system which captures account information from said transaction token provided by said user and communicates this information to a database configured for registering charges against user accounts.

9. An apparatus as recited in claim 1, wherein said means for submitting a transaction comprises a communication link to a user account database system configured for authorizing or rejecting transactions for posting against the user account.

10. An apparatus as recited in claim 1, wherein said means for rejecting said transaction comprises a networked computer database system configured for rejecting a transaction if execution of said submitted transaction against the user account would cause said second transaction limit amount of said user account to be exceeded.

11. A system for controlling transaction authorization for user accounts, comprising:

at least one networked computer system capable of accessing account information for a plurality of users, said account information including fixed transaction limits not interactively selectable by said user, and soft transaction limits which may be selected by the user within the constraints of said fixed transaction limits;

programming on said at least one computer for,

updating said soft transaction limits in response to user input,

receiving information about prospective monetary transactions,

rejecting prospective monetary transactions whose execution would exceed said soft limit.

12. A system as recited in claim 11, wherein said programming on said networked computer system further comprises automatically resetting soft transactions limits to a default value after a predetermined time interval has elapsed since said soft transaction limit was set by the user to a value exceeding said default value.

13. A system as recited in claim 11, wherein said programming on said networked computer system further comprises automatically resetting soft transactions limits to a default value after a predetermined number of transactions have been executed since said soft transaction limit was set by the user to a value exceeding said default value.

14. A system as recited in claim 11, wherein updating of said soft transaction limits is performed on an automated interface configured to communicate with said networked computer system for selecting said soft transaction limits.

15. A method of controlling which transaction charges are to be accepted against a monetary account, under the control of the owner of said monetary account, comprising:

establishing a soft limit feature within the account database for administering monetary transactions with respect to said monetary account, by entering the following information into said database which is accessed for authorizing transaction charges associated with said monetary account by,

activating said soft limit feature within said monetary account of said owner, wherein the allowable range of said soft limit is constrained to be at or below the allowable credit limit, or credit balance, within said monetary account,

configuring a default soft limit value to which charge transactions executed against said account are to be limited, and above which said charge transactions are to be denied,

establishing at least one personal identifier for use by said owner of said monetary account, or parties authorized to use said monetary account by said owner, to be associated with the control of said soft limit feature for said monetary account;

modifying the value of said soft limit to alter the allowable extent to which charge transactions may be executed against said monetary account by,

establishing communication with an automated information system associated with said monetary account which is configured for authorizing transactions directed toward said monetary account based on database information retained in conjunction with said automated information system, communication being established by said owner, or a party authorized by said owner, for modifying portions of said database to which said authorization is responsive,

entering an account identifier for receipt by said automated information system for selecting which monetary account is being referenced by said owner or authorized party,

entering said at least one said personal identifier associated with said monetary account for receipt by said automated information system for validating the authority of said owner, or authorized party, to modify said soft limit values;

specifying a new soft limit value by said owner, or party authorized by said owner, to alter the monetary limit by which subsequent transactions are to be restrained;

wherein said soft limit alters the amount which may be charged to the associated account subject to the control of said account owner, or party authorized by said owner.

16. A method as recited in claim 15, wherein a credit card, debit card, or ATM card, is associated with said monetary account which is utilized for executing a monetary transaction.

17. A method as recited in claim 15, wherein said soft limit is expressed as a allowable transaction amount for a given period.

18. A method as recited in claim 17, wherein said period is a period expressed that may be expressed in hours or days.

19. A method as recited in claim 17, wherein said period is one day.

20. A method as recited in claim 15, wherein said default limit comprises a “

normal”

transaction limit typically substantially less than the credit limit, or credit balance associated with said monetary account.

21. A method as recited in claim 15, wherein said soft limit can be set to a value between zero monetary value on up through to a value equal to the credit limit, or credit balance.

22. A method as recited in claim 21, wherein said soft limit is subject to further restrictions below said credit limit, or credit balance, according to the limitations of use imposed for said monetary account.

23. A method as recited in claim 15, further comprising a time value to be associated with the change of said soft limit from said default value, whereupon after expiration of said time limit said soft limit being utilized within said automated information system returns to said default soft limit.

24. A method as recited in claim 23, wherein said time value comprises a period that may be represented as a number of hours, or days.

25. A method as recited in claim 24, wherein said time value comprises a period of 24 hours.

26. A method as recited in claim 15, further comprising establishing a duress code that may be entered in lieu of said personal identifier to minimize said soft limit or to otherwise prevent transactions from being executed against said monetary account.

27. A method as recited in claim 26, wherein said duress code comprises a modification of the personal identifier so that the owner, or party authorized by said owner, need not remember an additional identifier.

28. A method as recited in claim 15, wherein said communication is established with said automated information system over a telephone network, cellular network, or internet.