System and method for performing secure credit card purchases

• US 20060031161A1
• Filed: 10/17/2005
• Published: 02/09/2006
• Est. Priority Date: 01/15/1999
• Status: Active Grant

• Current Assignee: John D’Agostino
• Original Assignee: John D’Agostino
• Inventors: D'Agostino, John
• Granted Patent: US 7,840,486 B2
• Time in Patent Office: Days
• US Class Current: 705/44
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/0855 involving a third party
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• 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 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 30/0241 Advertisements

Abstract

A method and system of performing secure credit card purchases in the context of a remote commercial transaction, such as over the telephone, wherein only the customer, once generally deciding upon a product or service to be purchased, communicates with a custodial authorizing entity, such as a credit card company or issuing bank wherein such entity has previous knowledge of the credit card number as well as custodial control of other account parameters such as interest rate, payment history, available credit limit etc. The customer supplies the custodial authorizing entity with the account identification data such as the credit card number and a requested one of a possible plurality of predetermined payment categories which define the dollar amount for the purchase and specific, predetermined time parameters within which authorization by the custodial authorizing entity will remain in effect. The custodial authorizing entity then generates a transaction code which is communicated exclusively to the customer wherein the customer in turn communicates only the transaction code to the merchant instead of a credit card number. The transaction code is indicative of merchant identification, credit card account identification and a designated one of the plurality of predetermined payment categories.

Claims

1. A method of performing secure credit card purchases, said method comprising the steps of:

a) contacting a custodial authorizing entity having custodial responsibility of account parameters of customer'"'"'s credit card account;

b) supplying the custodial authorizing entity with at least account identification data;

c) defining a payment category including at least the ability to limit purchases to a single merchant for at least one transaction;

d) designating said payment category;

e) generating a transaction code reflecting at least said designated payment category and the ability to make a purchase within said designated payment category;

f) communicating the transaction code to a merchant to consummate a purchase with defined purchase parameters;

g) verifying that said defined purchase parameters are within said designated payment category; and

h) providing authorization for said purchase so as to confirm at least that said defined purchase parameters are within said designated payment category and complete the purchase.

2. The method of claim 1 further comprising identification of said single merchant upon designation of said payment category.

3. The method of claim 1 further comprising the step of designating said single merchant subsequent to generating said transaction code.

4. The method of claim 1 wherein said step of communicating the transaction code to said merchant to consummate said purchase within defined purchase parameters further comprises designation of said single merchant.

5. The method of claim 1 wherein said step of generating said transaction code further comprises said custodial authority generating said transaction code.

6. The method of claim 1 wherein said step of generating said transaction code further comprises said customer generating said transaction code.

7. The method of claim 1 further comprising obtaining said authorization for said purchase from the custodial authorizing entity.

8. The method of claim 1 further comprising a step of communicating promotional information of offered subject matter to the customer by the merchant, pre-determining the purchase parameters of the purchase, and corresponding said designated payment category to said purchase parameters.

9. The method of claim 1 further comprising the merchant communicating the transaction code to the custodial authorizing entity for verification.

10. The method of claim 1 further comprising generating a transaction code which reflects at least one of a plurality of said payment categories.

11. The method of claim 10 further comprising defining at least one of said plurality of payment categories to include the ability to designate amount parameters for a cost of one or more purchases.

12. The method of claim 10 further comprising defining at least one of said plurality of payment categories to include the ability to designate time parameters during which the purchase can be completed.

13. The method of claim 10 further comprising defining at least one of said plurality of payment categories to include the ability to use said transaction code for a single transaction at a fixed amount for purchase within a predetermined period of time.

14. The method of claim 13 further comprising defining at least one of said plurality of payment categories to include the ability to limit purchases to said single transaction at said fixed amount for purchase within said predetermined period of time.

15. The method of claim 10 further comprising defining at least one of said plurality of payment categories to include the ability to use said transaction code for a single transaction at a maximum amount for purchase within a predetermined period of time.

16. The method of claim 15 further comprising defining at least one of said plurality of payment categories to include the ability to limit purchases to said single transaction at said maximum amount for purchase within said predetermined period of time.

17. The method of claim 10 further comprising defining at least one of said plurality of payment categories to include the ability to use said transaction code for at least two purchases at a maximum total amount for items purchased within a predetermined time period.

18. The method of claim 17 further comprising defining at least one of said plurality of payment categories to include the ability to limit purchases to said at least two purchases at said maximum total amount for items purchased within said predetermined time period.

19. The method of claim 10 further comprising defining at least one of said plurality of payment categories to include the ability to use said transaction code for at least two purchases for a repeating transaction at a fixed amount payable at each of a fixed number of time intervals.

20. The method of claim 19 further comprising defining at least one of said plurality of payment categories to include the ability to limit purchases to said repeating transaction at said fixed amount payable at each of said fixed number of time intervals.

21. The method of claim 10 further comprising defining at least one of said plurality of payment categories to include the ability to use said transaction code for a repeating transaction at a fixed amount payable at each of an unspecified number of time intervals.

22. The method of claim 21 further comprising defining at least one of said plurality of payment categories to include the ability to limit purchases to said repeating transaction at said fixed amount payable at each of said unspecified number of time intervals.

23. The method of claim 10 wherein at least some of said plurality of payment categories to include:

a) the ability to use said transaction code for a single transaction at a fixed amount for a purchase within a predetermined period of time,

b) the ability to use said transaction code for a single transaction at a maximum amount for a purchase within a predetermined period of time,

c) the ability to use said transaction code for multiple transactions at a maximum total amount for purchases within a predetermined time period,

d) the ability to use said transaction code for a repeating transaction at a fixed amount for purchases payable at each of a fixed number of time intervals, and

e) the ability to use said transaction code for a repeating transaction at a fixed amount for purchases payable at each of an unspecified number of time intervals.

24. The method of claim 10 wherein at least some of said plurality of payment categories include:

a) the ability to use said transaction code for a single transaction at a fixed amount for a purchase,

b) the ability to use said transaction code for a single transaction at a maximum amount for a purchase,

c) the ability to use said transaction code for multiple transactions at a maximum total amount for purchases,

d) the ability to use said transaction code for a repeating transaction at a fixed amount for purchases payable at each of a fixed number of time intervals, and

e) the ability to use said transaction code for a repeating transaction at a fixed amount for purchases payable at each of an unspecified number of time intervals.

25. The method of claim 1 further comprising generating said transaction code to further reflect an identification of said single merchant.

26. The method of claim 25 further comprising defining said payment category to include the ability to limit purchases to a limited time interval during which said purchase authorization is valid.

27. A method of performing secure purchases, said method comprising the steps of:

a) identifying a pre-established financial account;

b) selecting at least one of a plurality of pre-defined payment categories which limit a nature of a subsequent purchase;

c) issuing a transaction code associated with at least said financial account and said selected payment category, and different from said financial account;

d) communicating said transaction code to a merchant to consummate a purchase within defined purchase parameters;

e) verifying that said defined purchase parameters correspond to said designated payment category; and

f) providing authorization for said purchase so as to confirm at least that said defined purchase parameters are within said designated payment category and complete the purchase; and

g) associating the purchase with said financial account.

28. A method of performing secure purchases, said method comprising the steps of:

a) identifying a pre-established financial account;

b) selecting a payment category which limits a nature of a subsequent purchase to a single transaction at a fixed amount;

c) issuing a transaction code associated with at least said financial account and said selected payment category, and different from said financial account;

d) communicating said transaction code to a merchant to consummate a purchase within defined purchase parameters;

e) verifying that said defined purchase parameters correspond to said designated payment category; and

f) providing authorization for said purchase so as to confirm at least that said defined purchase parameters are within said designated payment category and complete the purchase; and

g) associating the purchase with said financial account.

29. A method of performing secure purchases, said method comprising the steps of:

a) identifying a pre-established financial account;

b) selecting a payment category which limits a nature of a series of subsequent purchases to a single merchant;

c) issuing a transaction code associated with at least said financial account and said selected payment category, and different from said financial account;

d) communicating said transaction code to a merchant to consummate a purchase within defined purchase parameters;

e) verifying that said defined purchase parameters correspond to said designated payment category; and

f) providing authorization for said purchase so as to confirm at least that said defined purchase parameters are within said designated payment category and complete the purchase; and

g) associating the purchase with said financial account.

30. The method of claim 29 wherein said step of selecting said payment category which limits said nature of said series of subsequent purchases to said single merchant further comprises limiting said nature of said series of subsequent purchases to a fixed amount for each of said subsequent purchases.

31. The method of claim 29 wherein said step of selecting said payment category which limits said nature of said series of subsequent purchases to said single merchant further comprises limiting said nature of said series of subsequent purchases to a maximum total amount for said subsequent purchases.

32. The method of claim 29 wherein said step of verifying that said defined purchase parameters correspond to said designated payment category further defines said merchant as said single merchant.

33. A method of performing secure purchases, said method comprising the steps of:

a) identifying a pre-established financial account;

b) selecting a payment category which limits a nature of a subsequent purchase to a single merchant;

c) issuing a transaction code associated with at least said financial account and said selected payment category, and different from said financial account;

d) designating a merchant as said single merchant;

e) communicating said transaction code to said merchant to consummate a purchase within defined purchase parameters;

f) verifying that said defined purchase parameters correspond to said designated payment category; and

g) providing authorization for said purchase so as to confirm at least that said defined purchase parameters are within said designated payment category and complete the purchase; and

h) associating the purchase with said financial account.

34. The method of claim 33 wherein said step of verifying that said defined purchase parameters correspond to said designated payment category further defines said merchant as said single merchant.

35. A system for performing secure purchases comprising:

a) a custodial authorizing entity, said custodial authorizing entity structured to maintain a pre-established financial account of at least one user;

b) said custodial authorizing entity further structured to define at least one payment category available for selection by a customer, said payment category structured to limit at least one subsequent transaction to a single merchant;

c) said custodial authorizing entity further structured to issue a transaction code associated with said payment category selected by the customer and said financial account of the user, said transaction code being different from said financial account;

d) said custodial authorizing entity further structured to receive said transaction code and designated purchase parameters associated with a purchase from a merchant, and to verify that said designated purchase parameters correspond to said selected payment category; and

e) said custodial authorizing entity structured to provide the merchant with authorization for said purchase that confirms at least that said designated purchase parameters correspond to said selected payment category so that said purchase may be consummated by the merchant.

36. A system for performing secure purchases as recited in claim 35 wherein said single merchant is defined upon selection of said payment category and is associated with said transaction code.

37. A system for performing secure purchases as recited in claim 35 wherein said custodial authorizing entity is structured to designate a first merchant to provide said transaction code for verification as said single merchant.

38. A system for performing secure purchases as recited in claim 37 wherein said custodial authorizing entity is structured to designate said first merchant as said single merchant for subsequent transactions utilizing said transaction code.

39. A system for performing secure purchases as recited in claim 35 wherein said payment category is further structured to limit said at least one subsequent transaction to a specified dollar amount.

40. A system for performing secure purchases as recited in claim 39 wherein said payment category is further structured to limit each of a plurality of subsequent transactions to said specified dollar amount.

41. A system for performing secure purchases as recited in claim 40 wherein said custodial authorizing entity is structured to designate a dollar amount of a first transaction associated with said transaction code and having said designated purchase parameters that correspond to remaining parameters of said selected payment category, as said specified dollar amount.

42. A system for performing secure purchases as recited in claim 39 wherein said specified dollar amount is defined upon selection of said payment category and is associated with said transaction code.

43. A system for performing secure purchases as recited in claim 35 wherein said payment category is further structured to limit said at least one subsequent transaction to a maximum dollar amount.

44. A system for performing secure purchases as recited in claim 35 wherein said payment category is further structured to limit said at least one subsequent transaction to a predetermined time period.