Method for implementing anonymous credit card transactions using a fictitious account name

• US 20050086160A1
• Filed: 10/18/2004
• Published: 04/21/2005
• Est. Priority Date: 05/15/2000
• Status: Active Grant

• Current Assignee: Jacob Y. Wong, Roy L Anderson
• Original Assignee: Jacob Y. Wong, Roy L Anderson
• Inventors: Wong, Jacob Y., Anderson, Roy L.
• Granted Patent: US 7,748,616 B2
• Time in Patent Office: Days
• US Class Current: 705/39
• CPC Class Codes: G06K 19/06196 Constructional details
• CPC Class Codes: G06K 19/06206 the magnetic marking being emulated
• 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 20/341 Active cards, i.e. cards including their own processing means, e.g. including an IC or chip
• CPC Class Codes: G06Q 20/3415 Cards acting autonomously as pay-media
• CPC Class Codes: G06Q 20/3576 Multiple memory zones on card
• CPC Class Codes: G06Q 20/3674 involving authentication
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 20/383 Anonymous user system
• CPC Class Codes: G06Q 20/4093 Monitoring of device authentication
• CPC Class Codes: G07F 7/1008 Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system

Abstract

A method for implementing an anonymous face to face or Mail Order Telephone Order credit card transaction by a user who has established a user account associated with a fictitious name. The user generates a valid personal charge number by executing an algorithm in a computer affixed to the electronic credit card that uses a user key and a card number as input variables. A merchant is provided with the valid personal charge number and the fictitious name that is submitted for approval to a credit approval center. The electronic credit card is sized such that a standard magnetic stripe reader can read it.

Claims

1. A method for implementing an anonymous face to face credit card transaction between a user and a merchant, comprising the steps of:

establishing a user account between a credit source and the user which is associated with a fictitious account name, a user account number, a user key and a user settlement mechanism through which the user can pay the credit source for charges and fees billed to the user account;

providing the user with an electronic card that is comprised of;

a card base;

a storage medium affixed to the card that can be read by a card reader but is not readable by a human eye;

a computer affixed to the card;

an input mechanism for providing input to the computer; and

a power source for supplying power to the computer;

wherein the electronic card has a fictitious account name stored in a memory device accessible by the computer, the computer is capable of causing data to be stored in the storage medium and the electronic card is sized such that a standard magnetic stripe reader can read the magnetic storage medium; and

completing a face to face credit card transaction between the user and the merchant in which the user is charged a monetary value by the merchant, comprising the following steps;

entering the user key into the input mechanism;

executing an algorithm by the computer that uses the user key and a card number stored in the electronic card as input variables to generate a valid personal charge number;

reading the valid personal charge number and the fictitious account name by the card reader;

sending the monetary value, the valid personal charge number and the fictitious account name to a credit approval center that verifies that the valid personal charge number is valid for the fictitious account name and approves the face to face credit card transaction; and

sending an approval of the transaction from the credit approval center to the merchant.

2. A method as recited in claim 1, comprising the further step of:

billing the user for the transaction through the user settlement mechanism.

3. A method as recited in claim 1, comprising the further steps of:

the user providing the merchant with the fictitious account name; and

the merchant verifying that the fictitious account name provided by the user matches the fictitious account name stored in the electronic card.

4. A method as recited in claim 1, comprising the further steps of:

establishing a user insertion key that is associated with the user account; and

generating the valid personal charge number from the card number by inserting the user key into the card number through use of the user insertion key and a permutation variable.

5. A method as recited in claim 4, comprising the further steps of:

changing the permutation variable from an initial state to a different state; and

generating a second valid personal charge number from the card number by inserting the user key into the card number through use of the user insertion key and the permutation variable in the different state.

6. A method as recited in claim 4, wherein the user insertion key is derived from the fictitious account name.

7. A method as recited in claim 6, comprising the further steps of:

changing the permutation variable from an initial state to a different state; and

generating a second valid personal charge number from the card number by inserting the user key into the card number through use of the user insertion key and the permutation variable in the different state.

8. A method as recited in claim 1, wherein the card number contains at least four less numbers than the valid personal charge number.

9. A method as recited in claim 1, wherein the valid personal charge number contains at least one non-numeric character.

10. A method as recited in claim 1, wherein the electronic card does not permanently visually identify the user name, the card number, the fictitious account name or the user account number.

11. A method for implementing an anonymous Mail Order Telephone Order (“

MOTO”

) credit card transaction between a user and a merchant, comprising the steps of;

establishing a user account between a credit source and the user which is associated with a fictitious account name, a user account number, a user key and a user settlement mechanism through which the user can pay the credit source for charges and fees billed to the user account;

providing the user with an electronic card that is comprised of;

a card base;

a storage medium affixed to the card that can be read by a card reader but is not readable by a human eye;

a computer affixed to the card;

an input mechanism for providing input to the computer;

a display controlled by the computer; and

a power source for supplying power to the computer;

wherein the electronic card has a fictitious account name stored in a memory device accessible by the computer, the computer is capable of causing data to be stored in the storage medium and the electronic card is sized such that a standard magnetic stripe reader can read the magnetic storage medium;

completing a MOTO credit card transaction between the user and the merchant in which the user is charged a monetary value by the merchant, comprising the following steps;

entering the user key into the input mechanism;

executing an algorithm by the computer that uses the user key and a card number stored in the electronic card as input variables to generate a valid personal charge number;

visually reading the valid personal charge number from the display;

providing the valid personal charge number and the fictitious account name to the merchant;

sending the monetary value, the valid personal charge number and the fictitious account name to a credit approval center that verifies that the valid personal charge number is valid for the fictitious account name and approves the MOTO credit card transaction; and

sending an approval of the transaction from the credit approval center to the merchant.

12. A method as recited in claim 11, comprising the further step of:

billing the user for the transaction through the user settlement mechanism.

13. A method as recited in claim 11, wherein the MOTO credit card transaction in conducted between the user and the merchant over a computer network.

14. A method as recited in claim 11, comprising the further steps of:

establishing a user insertion key that is associated with the user account; and

generating the valid personal charge number from the card number by inserting the user key into the card number through use of the user insertion key and a permutation variable.

15. A method as recited in claim 14, comprising the further steps of:

changing the permutation variable from an initial state to a different state; and

generating a second valid personal charge number from the card number by inserting the user key into the card number through use of the user insertion key and the permutation variable in the different state.

16. A method as recited in claim 14, wherein the user insertion key is derived from the fictitious account name.

17. A method as recited in claim 11, comprising the further steps of:

changing the permutation variable from an initial state to a different state; and

generating a second valid personal charge number from the card number by inserting the user key into the card number through use of the user insertion key and the permutation variable in the different state.

18. A method as recited in claim 11, wherein the card number contains at least four less numbers than the valid personal charge number.

19. A method as recited in claim 11, wherein the valid personal charge number contains at least one non-numeric character.

20. A method as recited in claim 11, wherein the electronic card does not permanently visually identify the user name, the card number, the fictitious account name or the user account number.