Method and system for conducting financial transactions using single use credit card numbers

• US 20040133507A1
• Filed: 01/02/2003
• Published: 07/08/2004
• Est. Priority Date: 01/02/2003
• Status: Abandoned Application

• Current Assignee: The Altamont Program, Inc.
• Original Assignee: The Altamont Program, Inc.
• Inventors: Barbour, Paul
• Application Number:
  US10/336,417
• Publication Number:
  US 20040133507A1
• Time in Patent Office: Days
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• CPC Class Codes: G06Q 20/385 using an alias or single-use codes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

The present invention is directed to a method for executing one or more financial transactions over a communication path for an account holder having an account associated with a permanent account number, where the permanent account number is deactivated for financial transactions over a communication path. A single use number associated with the permanent account number is issued, where funds authorized for transfer using the single use number are drawn from the account of the account holder. The single use number is inactive prior to the account holder requesting activation of the single use number. The single use number is then activated in response to a request for activation made by the account holder to activate the single use number. Funds are then transferred from the account in response to the account holder authorizing the transfer of funds using the single use number, where the transfer of funds using the single use account number occurs within a predetermined period of time following the activation of the single use number. The single use number is then deactivated after completion of the transfer of funds.

Claims

1. A method for executing a financial transaction over a communication path for an account holder having an account associated with a permanent account number, wherein the permanent account number is deactivated for financial transactions over a communication path, the method comprising:

a) issuing a single use number associated with the permanent account number, wherein funds authorized for transfer using the single use number are drawn from the account and the single use number is inactive prior to the account holder requesting activation of the single use number;

b) activating the single use number in response to a request for activation made by the account holder to activate the single use number;

c) transferring funds from the account in response to the account holder authorizing the transfer of funds using the single use number, wherein the transfer of funds using the single use account number occurs within a predetermined period of time following the activation of the single use number; and

d) deactivating the single use number after completion of the transfer of funds in step (c).

2. A method for executing one or more financial transactions over a communication path for an account holder having an account associated with a permanent account number, wherein the permanent account number is deactivated for financial transactions over a communication path, the method comprising:

a) issuing a plurality of single use numbers associated with the permanent account number, wherein funds authorized for transfer using any one of the plurality of the single use numbers are drawn from the account and the plurality of the single use numbers is inactive prior to the account holder requesting activation of a first single use number;

b) activating the first single use number in response to a request for activation made by the account holder to activate the first single use number, wherein the remaining single use numbers remain inactive;

c) transferring funds from the account in response to the account holder authorizing the transfer of funds using the first single use number, wherein the transfer of funds using the first single use number occurs within a predetermined period of time following the activation of the first single use number; and

d) deactivating the first single use number after completion of the transfer of funds in step (c).

3. The method of claim 2, further comprising:

e) activating only one of the remaining single use numbers;

f) transferring funds from the account in response to the account holder authorizing the transfer of funds using the single use number activated in step (e), wherein the transfer of funds using the single use number activated in step (e) occurs within a predetermined period of time following the activation of the single use number activated in step (e); and

g) deactivating the single use number activated in step (e) after completion of the transfer of funds in step (f).

4. The method of claim 3, further comprising:

h) iteratively repeating steps e) to g), with the proviso that the single use number activated in step (e) in each iteration is different from any single use number deactivated in step (g) in any previous iteration, until all the single use numbers are deactivated.

5. The method of claim 2, wherein the one or more financial transactions are telephonic financial transactions.

6. The method of claim 2, wherein the predetermined period of time is selected by the account holder.

7. A method for executing one or more financial transactions over a communication path for an account holder having an account associated with a permanent account number, wherein the permanent account number is deactivated for financial transactions over a communication path, the method comprising:

a) providing a data storage device;

b) storing in the data storage device a data set comprising (i) an account associated with an account holder, (ii) a permanent account number associated with the account, (iii) a plurality of single use numbers associated with the permanent account number, wherein funds authorized for transfer using any one of the plurality of the single use numbers are drawn from the account, and (iv) a plurality of identifiers, wherein each one of the plurality of identifiers corresponds to a single use number out of the plurality of the single use numbers and has a value indicating whether the corresponding single use number is activated or inactive, wherein the plurality of the single use numbers is inactive prior to the account holder requesting activation of a first single use number;

c) modifying the data set in response to a request for activation made by the account holder to activate the first single use number, wherein the modification comprises modifying the value of only the identifier corresponding to the activated first single use number to indicate that the first single use number has been activated;

d) initiating a transfer of funds from the account in response to the account holder making an authorization using the activated first single use number; and

e) modifying the data set after initiating the transfer of funds in step (d), wherein the modification comprises modifying the value of the identifier corresponding to the first single use number to indicate that the first single use number has been deactivated.

8. The method of claim 7, further comprising:

f) modifying the data set in response to a request for activation made by the account holder to activate only one of the remaining single use numbers, wherein the modification comprises modifying the value of the identifier corresponding to the activated single use number to indicate that the single use number has been activated;

g) initiating a transfer of funds from the account in response to the account holder making an authorization using the single use number activated in step (f), wherein the transfer of funds using the single use number activated in step (f) occurs within a predetermined period of time following the activation of the single use number activated in step (f); and

h) modifying the data set after initiating the transfer of funds in step (g), wherein the modification comprises modifying the value of the identifier corresponding to the single use number activated in step (e) to indicate that the single use number activated in step (e) has been deactivated.

9. The method of claim 8, further comprising:

i) iteratively repeating steps f) to h), with the proviso that the single use number activated in step (f) in each iteration is different from any single use number deactivated in step (h) in any previous iteration, until all the single use numbers are deactivated.

10. The method of claim 7, wherein the financial transaction is a telephonic financial transaction.

11. The method of claim 7, wherein the predetermined period of time is selected by the account holder.

12. A method for authorizing one or more financial transactions over a communication path by an account holder having an account associated with a permanent account number, wherein the permanent account number is deactivated for financial transactions over a communication path, the method comprising:

a) the account holder receiving a plurality of single use account numbers associated with the permanent account number, wherein funds authorized for transfer using any one of the plurality of single use numbers are drawn from the account and the plurality of the single use numbers is inactive prior to the account holder requesting activation of a first single use number;

b) the account holder requesting activation of only the first single use number, wherein the remaining single use numbers remain inactive; and

c) the account holder authorizing transferring of funds from the account using the first single use number, wherein the transfer of funds using the first single use number occurs within a predetermined period of time following the activation of the first single use number.

13. The method of claim 12, wherein the first single use number is deactivated after completion of the transfer of funds.

14. The method of claim 12, further comprising:

d) the account holder requesting activation of only one of the remaining single use numbers; and

e) the account holder authorizing transferring of funds from the account using the single use number activated following the request in step (d), wherein the transfer of funds using the single use number activated in step (d) occurs within a predetermined period of time following the activation of the single use number activated following the request in step (d).

15. The method of claim 14, wherein the single use number activated following the request in step (d) is deactivated after completion of the transfer of funds.

16. The method of claim 15, further comprising:

f) the account holder iteratively repeating steps d) to e), with the proviso that the single use number activated following the request in step (d) in each iteration is different from any single use number deactivated after completion of the transfer of funds in any previous iteration, until all the single use numbers are deactivated.

17. The method of claim 12, wherein the account is issued by an account issuer and authorizing transferring of funds comprises transmitting a message to the account issuer.

18. The method of claim 12, wherein the financial transaction is a telephonic financial transaction.

19. The method of claim 12, wherein the predetermined period of time is selected by the account holder.

20. The method of claim 12, wherein the account holder receives the permanent account number and the plurality of single use numbers at the same time or substantially the same time.

21. The method of claim 12, wherein receiving the plurality of single use numbers associated with the permanent account number comprises receiving a card having encoded thereon the permanent account number and the plurality of single use numbers.

22. The method of claim 21, wherein each of the plurality of single use numbers encoded on the card is concealed by a removable cover.

23. The method of claim 22, wherein the removable cover may be removed by scratching the cover off the single use numbers concealed thereunder.

24. A system for executing one or more financial transactions over a communication path for an account holder having an account associated with a permanent account number, wherein the permanent account number is deactivated for financial transactions over a communication path, the system comprising:

(a) a data storage device;

(b) a data set stored in the data storage device, wherein the data set comprises

(i) an account associated with an account holder,

(ii) a permanent account number associated with the account,

(iii) a plurality of single use numbers associated with the permanent account number, where funds authorized for transfer using any one of the plurality of the single use numbers are drawn from the account, and

(iv) a plurality of identifiers, wherein each one of the plurality of identifiers corresponds to a single use number out of the plurality of the single use numbers, wherein each one of the plurality of identifiers is associated with a value indicating whether the corresponding single use number is activated or inactive, and the value of each one of the plurality of identifiers is capable of being modified in response to a request for activation of the corresponding single use number to indicate activation of the corresponding single use number, and the value of each one of the plurality of identifiers is capable of being further modified to indicate deactivation of the corresponding single use number following the initiation of a transfer of funds; and

(c) means to initiate the transfer of funds from the account.