METHOD AND SYSTEM FOR FACILITATING A TRANSACTION USING A TRANSPONDER

• US 20050077349A1
• Filed: 12/14/2004
• Published: 04/14/2005
• Est. Priority Date: 03/07/2000
• Status: Active Grant

• Current Assignee: Liberty Peak Ventures, LLC (Dominion Harbor Enterprises, LLC)
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Isenberg, Susan E., Saunders, Peter D, Bonalle, David S
• Granted Patent: US 8,818,907 B2
• Time in Patent Office: Days
• US Class Current: 235/380
• CPC Class Codes: G06Q 10/04 Forecasting or optimisation specially adapted for administrative or management purposes, e.g. linear programming or "cutting stock problem" market predictions or forecasting for commercial activities G06Q30/0202
• CPC Class Codes: G06Q 20/00 Payment architectures, schemes or protocols apparatus for performing or posting payment transactions G07F7/08, G07F19/00; electronic cash registers G07G1/12
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/0855 involving a third party
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/14 specially adapted for billing systems
• CPC Class Codes: G06Q 20/327 Short range or proximity payments by means of M-devices
• CPC Class Codes: G06Q 20/346 Cards serving only as information carrier of service
• CPC Class Codes: G06Q 20/367 involving electronic purses or money safes
• CPC Class Codes: G06Q 20/3672 initialising or reloading thereof
• CPC Class Codes: G06Q 20/383 Anonymous user system
• CPC Class Codes: G06Q 20/385 using an alias or single-use codes
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G07C 9/28 the pass enabling tracking or indicating presence
• CPC Class Codes: G07C 9/29 the pass containing active electronic elements, e.g. smartcards
• CPC Class Codes: G07F 7/1008 Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system

Abstract

The present invention provides a system and method for facilitating a RF transaction using a secondary transaction number that is associated with a user'"'"'s primary transponder account. The user provides the secondary transaction number, often with limited-use conditions associated therewith, to a merchant to facilitate a more secure and confident transaction.

Claims

1. A method for facilitating a transaction using a transponder, comprising the steps of:

providing primary transponder account identified by a primary transaction account number;

generating a secondary transaction number that is configured to facilitate a transaction;

associating said secondary transaction number with at least one of said primary transponder account and primary transaction account number; and

issuing said secondary transaction number to facilitate a transaction.

2. The method of claim 1, wherein the step of providing said primary transponder account further comprises the steps of receiving information specifying a particular transponder account;

and verifying that said particular transponder account exists and is valid.

3. The method of claim 1, wherein the step of generating a secondary transaction number further comprises the steps of:

generating a random number;

determining if the random number is available for use; and

if available for use,

appending a product identifier number to the random number to achieve said secondary transaction number that is configured to have the same format as said primary transaction account number.

4. The method of claim 1, wherein said step of associating the secondary transaction number further comprises configuring the secondary transaction number to be immediately useable for facilitating a transaction.

5. The method of claim 1, further comprising the step of permitting conditions-of-use parameters to be associated with said secondary transaction number, wherein the conditions-of-use parameters place limits on how the secondary transaction number may be used.

6. The method of claim 5, wherein the conditions-of-use parameters comprise at least a secondary transaction number credit limit and an expiration date.

7. The method of claim 1, wherein the step of generating said secondary transaction number is performed by a computer system.

8. The method of claim 1, wherein the step of generating said secondary transaction number is facilitated by a portable transaction device.

9. The method of claim 8, wherein said portable transaction device is configured to support interaction with a issuer'"'"'s system to generate said secondary transaction number.

10. The method of claim 9, wherein a portable transaction device reader is configured to support wireless interaction with said portable transaction device.

11. The method of claim 1, wherein said secondary transaction number is generated by a first party'"'"'s computer system configured to support interaction with an issuer'"'"'s user interface system.

12. The method of claim 1, wherein the step of associating the secondary transaction number comprises the step of recording the secondary transaction number in a database associated with at least one of said primary transponder account and said primary transaction account number.

13. The method of claim 1, wherein the primary transponder account is associated with a transponder.

14. The method of claim 1, wherein the step of issuing said secondary transaction number is facilitated by a user interface system.

15. The method of claim 14, wherein the user interface system comprises at least one of the following:

a web server operable system, a telephone system, and a mail handling system.

16. The method of claim 1, further comprising the steps of:

registering a first party to use a transaction system configured to generate and issue a secondary transaction number; and

upon proper registration, providing said first party with authentication information.

17. The method of claim 16, where the authentication information is a username and password.

18. The method of claim 16, further comprising the steps of:

prompting said first party for authentication information to confirm that said first party is a registered user; and

receiving authenticating information from said first party, and upon verifying that said first party is registered, providing said first party access to a transaction system.

19. The method of claim 18, further comprising the step of receiving a request from said first party for said secondary transaction number.

20. The method of claim 1, additionally comprising the following steps:

receiving transaction information from a second party for authorization;

forwarding said transaction information to a transaction authorization system for authorization processing; and

processing the transaction information with the transaction authorization system, wherein the transaction authorization system interfaces with a secondary transaction number system to determine if authorization is appropriate.

21. A method of processing authorization and settlement requests in a RF transaction system comprising the steps of:

receiving an authorization request, where the authorization request involves a secondary transaction number with limited-use conditions associated therewith;

routing said authorization request to a transaction authorization system to determine if limited use conditions have been satisfied;

returning a message declining authorization if the conditions have not been satisfied; and

returning a message approving authorization request if conditions have been satisfied.

22. The method of claim 21, further comprising the step of receiving a settlement request for payment of a transaction involving a secondary transaction number;

wherein the transaction is completed is paid if the secondary transaction number is valid.

23. A method of claim 21, further comprising the steps of:

routing said settlement request for payment to a financial capture system;

creating an accounts payable file and routing the accounts payable file to an accounts payable system for transaction processing; and

creating an accounts receivable file and routing the accounts receivable file to a service that retrieves an associated primary transponder account number and replaces said secondary transaction number with the primary transponder account number and forwards the resulting accounts receivable file to an accounts receivable system to generate a billing statement.

24. A host computer system for facilitating RF transactions comprising:

a user interface system configured to allow a first party to interact with a host computer'"'"'s transaction services; and

a number generating and processing mechanism, including an application server and a database, said number generating and processing mechanism configured for receiving input from said user interface system to generate a secondary transaction number and to associate therewith at least one of a designated primary transponder account, and said designated primary transaction account number.

25. The host computer system in claim 24, further comprising a transaction authorization processing mechanism configured to receive a transaction authorization request from a second party, wherein the authorization mechanism interfaces with the number generating and processing mechanism to determine if the second party authorization request should be approved or denied.

26. The host computer system in claim 25, further comprising a settlement processing mechanism including a financial capture system configured for capturing transaction information relating to use of secondary transaction numbers, an accounts receivable system for billing the first party, and an accounts payable system for paying the second party.

27. A method for facilitating a RF transaction comprising the steps of:

registering with a transaction account issuer to use a RF transaction system;

logging-in to the issuer'"'"'s transaction system by providing authenticating information, and causing issuer to verify that a first party is a registered and authorized user;

designating a transponder transaction account as at least one primary transaction account;

requesting a secondary transaction number from the account issuer, causing said account issuer to generate a secondary transaction number and to associate the secondary transaction number with the designated primary transaction account; and

receiving said secondary transaction number from the issuer.

28. The method of claim 27, further comprising the step of providing said secondary transaction number to a second party to facilitate a transaction.

29. The method of claim 27, further comprising the step of selecting conditions-of-use parameters to be associated with the secondary transaction number.

30. The method of claim 27, further comprising the step of defining conditions-of-use parameters to be associated with the secondary transaction number.

31. The method of claim 27, wherein the steps occur online.

32. The method of claim 27, wherein said primary transponder account is a non-currency based account.

33. The method of claim 27, wherein said primary transponder account is associated with an electronic line of credit system.

34. The method of claim 27, further comprising the step of disputing a charge for a transaction involving a secondary transaction number, and causing the issuer to charge back the charge.

35. A method for facilitating a non-currency based transaction system involving a secondary transaction number comprising the steps of:

designating a non-currency based account as a primary transaction account for facilitating transaction completion with an enabled transponder; and

generating a secondary transaction number and associating said secondary transaction number with said primary transaction account, wherein said primary transaction account includes at least the designated non-currency based account.

36. A method of claim 35, comprising:

converting accumulated non-currency based tender into currency to fund the primary transponder account.

37. The method of claim 36, further comprising the step of designating condition-of-use parameters and associating said parameters to said secondary transaction number.

38. The method of claim 37, further comprising the step of processing an authorization request relating to a transaction involving a secondary transaction number associated with at least a non-currency based account further comprising the steps of:

recognizing the transaction as involving a non-currency based account;

verifying the conditions of use have been satisfied; and

if satisfied,

reducing the non-currency based account balance by the transaction amount.

39. The method of claim 37, further comprising the step of processing a transaction settlement request relating to a transaction involving a secondary transaction number associated with at least a non-currency based account further comprising the steps of:

capturing transaction settlement information in a financial capture system, wherein an accounts payable file is created and facilitating payment;

forwarding the transaction settlement information to an accounts receivable system;

recognizing that the transaction settlement information comprises a secondary transaction number that is associated with at least a non-currency based account; and

issuing an exchange value equal to the transaction charge amount from the non-currency based account to the accounts receivable system;

wherein the exchange value from the non-currency based account offsets at least part of the transaction charge.

40. A dispute handling method for facilitating a disputed transaction involving a secondary transaction number, comprising the steps of:

receiving a dispute from a first party relating to a transaction involving a secondary transaction number associated with at least one primary transponder account associated with a RF operable payment device;

retrieving RF transaction information from an account issuer database; and

replacing said primary transponder account number with said secondary transaction number in order to initiate a transaction inquiry;

wherein said transaction inquiry references only the secondary transaction number.

41. The method of claim 40, further comprising the steps of:

determining if a valid approval code is associated with the secondary transaction number; and

charging back the amount of the transaction, if a valid approval code does not exist.

42. A method for facilitating a RF transaction, comprising the steps of:

receiving a primary transponder account number from a first party to initiate a RF transaction;

sending the primary transponder account number to an account issuer;

requesting that an account issuer generate and return a secondary transaction number that is associated with said primary transponder account number; and

receiving from said account issuer said secondary transaction number associated with said primary transponder account, wherein said secondary number is then used to facilitate a transaction settlement.

43. A method of claim 42, wherein the step of providing for sending said primary account transponder number to said issuer occurs during a transaction authorization process.

44. A method of claim 42, further comprising the step of purging the primary transponder account number from the second party'"'"'s records and replacing the primary transponder account number with the associated secondary transaction number.