System, method and program product for account transaction validation

• US 20060278698A1
• Filed: 07/11/2006
• Published: 12/14/2006
• Est. Priority Date: 06/13/2005
• Status: Active Grant

• Current Assignee: Robert Lovett
• Original Assignee: Robert Lovett
• Inventors: Lovett, Robert
• Granted Patent: US 7,347,361 B2
• Time in Patent Office: Days
• US Class Current: 235/380
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• CPC Class Codes: G06Q 20/367 involving electronic purses or money safes
• 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

Abstract

A system, method and program product for account transaction validation which may be downloaded or otherwise installed on a networked computing device such as a cell phone or other networked computing device. The networked computing device provides an encrypted validation code to a merchant for each transaction. The validation code is uniquely computed for each transaction and may be based on transaction time and/or other transaction data. The code algorithm is unique for each cardholder. Only the bank transaction center has knowledge of the particular algorithm for each cardholder. When transaction details such as transaction dollar amount are included in the generation of the code, the code may be used to validate the reported transaction dollar amount. An algorithm is disclosed for generating a unique code based on time and/or transaction dollar amount.

Claims

1. A system for validating a credit card transaction comprising

a personal computing device comprising:

a processor for generating validation codes;

a memory for storing account information;

a clock having date and time information;

a keypad for entering enabling data; and

a display comprising;

an encrypted validation code;

wherein said processor generates said encrypted validation code for said transaction based on said account information.

2. The system of claim 1, wherein the account information comprises credit card information, bank account information, debit card information, account login information, or automatic teller machine account information.

3. The system of claim 1, wherein the processor generates said encrypted validation code based further on said clock.

4. The system of claim 1, wherein the display further includes a barcode, said barcode including said encrypted validation code therein.

5. The system of claim 1, wherein the enabling data comprises a personal identification number and said processor generates said encrypted validation code after said personal identification number is correctly entered using said keypad.

6. The system of claim 1, further including a fingerprint reader and said processor generates said encrypted validation code after said fingerprint reader correctly matches a fingerprint.

7. The system of claim 1, further including a means for indicating a duplicate transaction and including information in the encrypted validation code responsive to said means for indicating a duplicate transaction.

8. The system of claim 1, further including a network interface wherein information comprising said encrypted validation code is transferred over said network interface.

9. The system of claim 8, wherein said network interface comprises a cell phone.

10. A method for validating a transaction comprising:

providing a personal computing device configured to generate coded validation numbers;

generating a coded validation number for said transaction;

providing a merchant said coded validation number;

providing said merchant an account number;

reporting said coded validation number and said account number to a transaction center by said merchant; and

using said coded validation number at said transaction center to validate said transaction.

11. The method of claim 10, wherein the account number is one from the group consisting of a credit card number, a bank account number, a debit card number, an account login number, and an automatic teller machine account number.

12. The method of claim 10, further including the step of providing the merchant an expiration date associated with said account number.

13. The method of claim 10, wherein the step of generating a coded validation number comprises the step of utilizing a time value to generate said coded validation number.

14. The method of claim 13, wherein the step of utilizing a time value comprises the steps of:

assigning a unique table of values to a particular computing device;

determining a coded time value based on said table of values; and

utilizing said coded time value to generate said coded validation number.

15. The method of claim 10, wherein the step of generating a coded validation number comprises the steps of:

assigning a unique table of multipliers to a particular computing device;

determining an amount dependent term based on multiplying a transaction amount by a multiplier from said table of multiplier, and

utilizing said amount dependent term to generate said coded validation number.

16. The method of claim 10, wherein the computing device is connected to a network, further including the step of:

reporting said validation number to said transaction center by said computing device using said network.

17. The method of claim 16, wherein said device is a cell phone and said network is a cell phone network.

18. The method of claim 10, adapted to rapid transaction completion by including the steps of:

providing said account number and validation number to said merchant for validation before completing shopping activities;

completing shopping activities while

waiting for approval of said credit card;

completing the transaction following the completing of shopping activities without further waiting for approval of said credit card.

20. The method of claim 10, further comprising the steps of:

determining said transaction is for a value less than a predetermined limit;

providing said account number and said validation number to said merchant;

recording said account number, said validation number, and said time of transaction;

approving said transaction at said merchant terminal without specific approval from said transaction center,

reconciling accounts between said merchant and said transaction center at a later time by providing said account number, said validation number, and said time of transaction.