Secure electronic payment system and methods

• US 20070083464A1
• Filed: 10/11/2005
• Published: 04/12/2007
• Est. Priority Date: 10/11/2005
• Status: Active Grant

• Current Assignee: III Holdings 1, LLC (Intellectual Ventures LLC)
• Original Assignee: Jose Mares Urrutia, Juan Carlos Gonzalez De Candamo, Raul Cordero Torres
• Inventors: Mares Urrutia, Jose, Cordero Torres, Raul, Gonzalez De Candamo, Juan Carlos
• Granted Patent: US 8,200,575 B2
• Time in Patent Office: Days
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments

Abstract

The invention provides a system and method for ensuring secure payment transactions. The invention provides for a chargeable and dischargeable security (CDS) system that allows users/account holders to have greater control over access to their accounts. The CDS-system may include a CDS-instrument, such as a credit or debit card that can be charged with funds located in a first account and then discharged either automatically or manually so that the potential for fraud and misuse are significantly reduced.

Claims

1. A method for facilitating secure financial transactions between at least one payer and one payee, comprising the steps of:

establishing a first account, the first account having an associated first pin number;

establishing a second account, the second account having an associated second pin number;

providing a chargeable and dischargeable payment instrument;

transferring funds from the first account to the second account using the first pin number, the chargeable and dischargeable payment instrument being charged by the step of transferring funds; and

discharging the second account at a predetermined time interval after the step of transferring funds, the step of discharging including returning the funds from the second account to the first account.

2. The method according to claim 1, further comprising the step of establishing access rules governing access to the second account.

3. The method according to claim 2, wherein the step of establishing access rules includes at least one of selecting an amount of funds to be transferred to the second account and selecting a time at which the second account will automatically be discharged.

4. The method according to claim 1, wherein the step of establishing the first account includes accessing a financial institution'"'"'s server to access an account application.

5. The method according to claim 1, wherein the step of establishing the second account includes accessing a financial institution'"'"'s server to access an account application.

6. The method according to claim 1, wherein the chargeable and dischargeable payment instrument is at least one of a credit card, a debit card, a check card, a gift card, a telephone card and a card for facilitating remissions.

7. The method according to claim 1, wherein the chargeable and dischargeable payment instrument is a single use instrument.

8. The method according to claim 1, wherein the chargeable and dischargeable payment instrument can be used in at least one of point of sale retail transactions, commercial transactions, on-line transactions and on-line auctions.

9. The method according to claim 1, wherein the chargeable and dischargeable payment instrument is usable to make payments during the time when the second account is funded and rendered unusable to make payments when the second account is discharged.

10. The method according to claim 2, wherein the step of discharging the second account occurs automatically based upon the access rules.

11. The method according to claim 1, wherein the step of discharging the second account can be performed manually utilizing the second pin number.

12. The method according to claim 1, wherein the second pin number is required at the point of sale in order to render the chargeable and dischargeable instrument usable.

13. A system for facilitating secure financial transactions between at least one payer and one payee, comprising:

a first account holding a payer'"'"'s funds;

a second account for receiving funds transferred from the first account;

a first pin number for facilitating the transfer of funds from the first account to the second account;

a second pin number for facilitating the return of funds from the second account to the first account; and

a chargeable and dischargeable payment instrument that is charged and usable when the funds reside in the second account and is discharged and unusable when the funds do not reside in the second account.

14. The system for facilitating secure financial transactions in accordance to claim 13, further comprising access rules governing access to the second account.

15. The system for facilitating secure financial transactions in accordance with claim 14, wherein the access rules includes at least one of an amount of funds to be transferred to the second account and a time at which the second account will automatically be discharged.

16. The system for facilitating secure financial transactions in accordance with claim 13, wherein the chargeable and dischargeable payment instrument is at least one of a credit card, a debit card, a check card, a gift card, a telephone card and a card for facilitating remissions.

17. The system for facilitating secure financial transactions in accordance with claim 13, wherein the chargeable and dischargeable payment instrument is a single use instrument.

18. The system for facilitating secure financial transactions in accordance with claim 13, wherein the chargeable and dischargeable payment instrument can be used in at least one of point of sale retail transactions, commercial transactions, on-line transactions and on-line auctions.

19. The system for facilitating secure financial transactions in accordance with claim 13, wherein the chargeable and dischargeable payment instrument is usable to make payments during the time when the second account is funded and is rendered unusable to make payments when the second account is discharged.

20. The system for facilitating secure financial transactions in accordance with claim 13, wherein the second account is discharged automatically based upon the access rules.

21. The system for facilitating secure financial transactions in accordance with claim 13, wherein the second account is discharged manually utilizing the second pin number.

22. The system for facilitating secure financial transactions in accordance with claim 13, wherein the second pin number is required at the point of sale in order to render the chargeable and dischargeable instrument usable.

23. A system for facilitating secure financial transactions between at least one payer and one payee, comprising:

an financial services application for managing a first account having a first associated pin number and a second account having a second associated pin number;

a chargeable and dischargeable instrument payment instrument that is usable when the second account is funded; and

a chargeable and dischargeable card application that governs transactions made with the chargeable and dischargeable instrument.

24. The system in accordance with claim 23, wherein the financial services application manages access to data relating to the first and second accounts, including account balances, deposits and withdrawals.

25. A software program product for facilitating secure on-line transactions, the software program product executing the steps of:

receiving a request for establishing a first account, the first account having an associated first pin number;

receiving a request for establishing a second account, the second account having an associated second pin number;

receiving a request for the transfer of funds from the first account to the second account using the first pin number, the second account charging a chargeable and dischargeable payment instrument; and

receiving a request to discharge the second account at a predetermined time interval.