Method for customizing payment card transactions at the time of the transactions

• US 20050086177A1
• Filed: 10/18/2004
• Published: 04/21/2005
• Est. Priority Date: 05/15/2000
• Status: Abandoned Application

• Current Assignee: Jacob Y. Wong, Roy L Anderson, William R. Bryant Jr
• Original Assignee: Jacob Y. Wong, Roy L Anderson, William R. Bryant Jr
• Inventors: Bryant, William R. Jr., Wong, Jacob Y., Anderson, Roy L.
• Application Number:
  US10/968,401
• Publication Number:
  US 20050086177A1
• Time in Patent Office: Days
• US Class Current: 705/64
• 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 user can customize use of a payment card, which can be an electronic card, by selecting a customization variable for any given transaction. The customization variable involves at least one of the following steps: (1) customizing generation of a one-time card number; (2) customizing a user identifier; or (3) inclusion of a customization variable with information transmitted to a verification agency for validation of the given use. Multiple payment card transactions can be processed differently depending upon which customization variable is chosen for a given transaction. Different customization variables can be used for different accounts, different types of transactions, or to classify the transactions. A user can receive one bill, or multiple bills. Different levels of privacy can be accorded to transactions that use different customization variables. A user may pay the issuer for increased security, or the user may be paid by the issuer to allow transaction data to be distributed to third parties.

Claims

14. A method for allowing customized use of an electronic card having a card number that varies with each use, comprising the steps of:

(1) allowing a user to select a customization parameter to customize a given use of the electronic card by at least one of the following steps;

(a) customizing generation of a one-time card number;

(b) customizing a user identifier;

or

(c) inclusion of a customization variable with information transmitted to a verification agency for validation of the given use;

(2) generating a user one-time payment card number through use of a card number generator;

(3) submitting the user one-time payment card number and the user identifier to a verification agency for validation, and, if the user has selected step (1)(c), including the customization variable with the submission for the given use; and

(4) verifying that the one-time payment card number is valid for the given use.

1. A method for allowing customized use of an electronic card having a card number that varies with each use, comprising the steps of:

(1) allowing a user to customize either generation of a one-time card number or a user identifier;

(2) generating a user one-time card number through use of a card number generator;

(3) submitting the user one-time card number and the user identifier to a verification agency for validation; and

(4) verifying that the one-time card number is valid.

2. A method as recited in claim 1, wherein the electronic card is a payment card and the one-time card number is a one-time payment card number.

3. A method as recited in claim 2, wherein the card number generator generates a new card number by executing an algorithm that uses a selected user key to generate the new card number.

4. A method as recited in claim 3, wherein the user can customize generation of the one-time card number by choosing either a first user key or a second user key as the selected user key, and wherein the algorithm will generate a first one-time card number if the selected user key is the first user key or a second one-time card number if the selected user key is the second user key, the first and the second one-time card numbers being different, but both valid with the user identifier.

5. A method as recited in claim 3, wherein the electronic card is comprised of:

a card base;

a computer affixed to the card;

an input mechanism;

a magnetic storage medium affixed to the card that can be read by a standard magnetic stripe reader;

an encoder for generating a data packet that is stored in a designated portion of the magnetic storage medium and is readable by a standard magnetic stripe reader; and

a power source for supplying power to the computer and the encoder;

wherein the electronic card is sized such that the magnetic storage medium can be read by the standard magnetic stripe reader.

6. A method as recited in claim 5, wherein the magnetic storage medium is a magnetic stripe.

7. A method as recited in claim 6, wherein the user identifier is stored in the magnetic stripe.

8. A method as recited in claim 7, wherein the user identifier is stored in a second track of the magnetic stripe with the user one-time card number.

9. A method as recited in claim 8, wherein the data packet is comprised of the user one-time card number.

10. A method as recited in claim 9, wherein the data packet is further comprised of the user identifier.

11. A method as recited in claim 10, wherein the encoder generates the data packet by creating flux reversals in ferromagnetic particles contained in the magnetic stripe.

12. A method as recited in claim 5, wherein the user can change the user identifier through use of a special function switch.

13. A method as recited in claim 5, wherein the user can change the user identifier through use of a special function code input to the computer.

15. A method as recited in claim 14, wherein the electronic card is comprised of:

a card base;

a computer affixed to the card;

an input mechanism;

a magnetic storage medium affixed to the card that can be read by a standard magnetic stripe reader;

an encoder for generating a data packet that is stored in a designated portion of the magnetic storage medium and is readable by a standard magnetic stripe reader; and

a power source for supplying power to the computer and the encoder;

wherein the electronic card is sized such that the magnetic storage medium can be read by the standard magnetic stripe reader.

16. A method as recited in claim 15, wherein the magnetic storage medium is a magnetic stripe.

17. A method as recited in claim 16, wherein the user identifier is stored in the magnetic stripe.

18. A method as recited in claim 17, wherein the user identifier is stored in a second track of the magnetic stripe with the user one-time payment card number.

19. A method as recited in claim 18, wherein the data packet is comprised of the user one-time payment card number.

20. A method as recited in claim 19, wherein the data packet is further comprised of the user identifier.

21. A method as recited in claim 15, wherein the data packet is further comprised of the customization variable.

22. A method as recited in claim 16, wherein the data packet is further comprised of the customization variable.

22-1. A method as recited in claim 17, wherein the data packet is further comprised of the customization variable.

22-2. A method as recited in claim 18, wherein the data packet is further comprised of the customization variable.

23. A method for processing a plurality of payment card transactions based upon a user'"'"'s selection of a customization variable for each of the transactions, comprising the steps of:

(1) establishing a plurality of handling options between a money source and the user;

(2) providing the user with a card number generator;

(3) allowing the user to complete a plurality of payment card transactions within a time period in accordance with the following steps;

(a) allowing the user to select a customization parameter to customize a given use of the card number generator by at least one of the following steps;

(i) customizing generation of a one-time payment card number;

(ii) customizing a user identifier;

or

(iii) inclusion of a customization variable with information transmitted to a verification agency for validation of the given use;

(b) generating a user one-time payment card number through use of the card number generator;

(c) verifying the validity of the given use by submitting the user one-time payment card number and the user identifier to a verification agency for validation, and, if the user has selected step (3)(a)(iii), including the customization variable with the submission; and

(d) repeating steps (a) through (c) at least once within the time period; and

(4) processing each of the plurality of payment card transactions in accordance with one of the plurality of handling options based upon the customization parameter selected for each of the plurality of payment card transactions.

24. A method as recited in claim 23, wherein the card number generator is included within an electronic payment card.

25. A method as recited in claim 24, wherein the electronic payment card is comprised of:

a card base;

a computer affixed to the card;

a keypad for providing input to the computer, the keypad having ten numeric keys and at least one special function key that are touch-activated;

a magnetic storage medium affixed to the card that can be read by a standard magnetic stripe reader;

an encoder controlled by the computer for generating a data packet that is stored in a designated portion of the magnetic storage medium; and

a power source for supplying power to the computer and the encoder;

wherein the electronic card is sized such that the magnetic storage medium can be read by a standard magnetic stripe reader.

26. A method as recited in claim 23, wherein the first and the second handling options are mechanisms to bill two separate accounts.

27. A method as recited in claim 26, wherein the user is sent a single bill for charges to the two separate accounts.

28. A method as recited in claim 27, wherein one of the accounts is established with a first money source and the second account is established with a second money source that is different from the first money source.

29. A method as recited in claim 26, wherein one of the accounts is a credit account and the second account is a debit account.

30. A method as recited in claim 26, wherein the user is sent a first bill for the first account and a separate bill for the second account.

31. A method as recited in claim 23, wherein the first and the second handling options are a first and a second mechanism for dealing with distribution of information concerning the plurality of payment card transactions.

32. A method as recited in claim 31, wherein the first mechanism restricts the distribution from the money source to a third party of information relating to any payment card transaction in which the user payment card number was generated by use of the first user key.

33. A method as recited in claim 31, wherein the first mechanism restricts the distribution from the money source to the second entity of personal information of the user relating to any payment card transaction in which the user payment card number was generated by use of the first user key.

34. A method as recited in claim 32, wherein the user provides the money source with consideration for use of the first mechanism.

35. A method as recited in claim 31, wherein the second mechanism permits the distribution from the money source to a third party of information relating to any payment card transaction in which the user payment card number was generated by use of the second user key.

36. A method as recited in claim 35, wherein the second mechanism permits the distribution from the money source to the second entity of personal information of the user relating to any payment card transaction in which the user payment card number was generated by use of the second user key.

37. A method as recited in claim 35, wherein the money source provides the user with consideration for use of the second mechanism.

38. A method as recited in claim 23, wherein the first and the second handling options provide a mechanism for classifying the nature of the plurality of payment card transactions.

39. A method as recited in claim 38, wherein the first handling option is used for business transactions and the second handling option is used for personal transactions.

40. A method as recited in claim 23, wherein the first and the second handling options provide a mechanism for identifying either a first user or a second user as the user.

41. A method as recited in claim 40, wherein approval of a payment card transaction for the first user is subject to different restrictions than approval of a payment card transaction for the second user.

42. A method as recited in claim 23, wherein the first and the second handling options provide a mechanism for controlling what information is reported about the plurality of payment card transactions in a billing statement.