LIMITED USE PIN SYSTEM AND METHOD

• US 20070228161A1
• Filed: 06/07/2007
• Published: 10/04/2007
• Est. Priority Date: 05/17/2004
• Status: Active Grant

• Current Assignee: Liberty Peak Ventures, LLC (Dominion Harbor Enterprises, LLC)
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Fletcher, Christopher
• Granted Patent: US 7,441,697 B2
• Time in Patent Office: Days
• US Class Current: 235/380
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• 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: G07F 7/10 together with a coded signal , e.g. in the form of personal identification information, like personal identification number [PIN] or biometric data

Abstract

The present invention facilitates transactions by providing a limited use PIN that is associated with a primary account and/or PIN number, wherein the limited use PIN is presented to the merchant to initiate a transaction. More particularly, the system involves the process of registering a user (if not already pre-registered) to participate in a transaction system; generating a limited use PIN and issuing this number to the user, where the user presents this number to a merchant to complete a sales transaction; the merchant processing this limited use PIN, where the number is typically presented to the credit issuer to facilitate authorization. Additionally, the limited use PIN may also carry with it certain limitations-on-use conditions, where the transaction is not authorized unless these conditions are met. In generating a limited use PIN, the issuer generates a random number and associates this number with the user'"'"'s primary charge account.

Claims

1. A host computer system for facilitating transactions comprising:

a user interface system configured to allow a first party to interact with the host computer system; and

,

a number generating and processing mechanism, including an application server and a database, configured for receiving input from the user interface system, generating a limited use PIN for the first party for use with a second party, and associating a designated primary account with the limited use PIN.

2. The host computer system of claim 1, further comprising a settlement processing mechanism including at least a financial capture system configured for capturing transaction information relating to use of the limited use PIN, an accounts receivable system for billing the first party and an accounts payable system for paying the second party.

3. A host system for facilitating transactions, said host system configured to:

identify a primary account;

generate a limited use PIN that is configured to facilitate a transaction;

associate the limited use PIN with the primary account; and

issue the limited use PIN to a first party to facilitate a transaction with a second party.

4. The host system of claim 3, wherein the host system is further configured to cause the limited use PIN to be immediately usable for facilitating the transaction.

5. The host system of claim 3, wherein the host system further comprises a conditions-of-use parameter engine which is configured to allow the first party to at least one of:

select and define conditions-of-use parameters, wherein the conditions-of-use parameters place limits on how the limited use PIN may be used.

6. The host system of claim 3, wherein the host system further comprises a conditions-of-use parameter engine which is configured to establish conditions-of-use parameters, wherein the parameters place limits on how the limited use PIN may be used.

7. The host system of claim 3, wherein the host system further comprises a conditions-of-use parameter engine which is configured to establish conditions-of-use parameters, wherein the parameters place limits on how the limited use PIN may be used and the conditions of use parameters comprise at least one of:

a limited use PIN credit limit, limiting use of a limited use PIN on account balance availability, a limited use PIN expiration date, a predetermined number of transactions before the limited use PIN is declined, limiting use of a limited use PIN to a specified dollar amount per transaction, limiting use of a limited use PIN to a total dollar amount for pro-designated number of transactions, whether a limited use PIN can be used to earn loyalty points, whether a limited use PIN can be used to redeem loyalty points, limiting use of a limited use PIN to a maximum dollar amount per month, use of a limited use PIN for a specified merchant only, restricting use of a limited use PIN to a specified user, and specifying that all online transactions be performed using only a limited use PIN.

8. The host system of claim 3, wherein the host system further comprises a notification engine, wherein the notification engine is configured to notify at least one of:

a first party, a second party and a third party whenever the limited use PIN is used.

9. The host system of claim 3, wherein the host system further comprises an authorization system configured to authorize transaction information, wherein the transaction information includes the limited use PIN.

10. The host system of claim 3, wherein the host system further comprises an authorization system configured to authorize transaction information, wherein the transaction information includes the limited use PIN, and retrieve account information that is associated with the limited use PIN.

11. The host system of claim 3, wherein the host system further comprises a conditions-of-use parameter engine which is configured to determine when a conditions-of-use parameter is satisfied before authorizing transaction information.

12. The host system of claim 3, wherein the host system further comprises an settlement system configured to identify the primary account that is associated with the limited use PIN, replace the limited use PIN with the primary account number, process the transaction settlement information in an accounts receivable system;

and generate a billing statement that includes the primary account number.

13. An authorization system for processing authorization requests in a transaction system, the host system configured to:

receive an authorization request from a second party, where the authorization request involves a limited use PIN with limited-use conditions associated therewith;

route the authorization request to a card authorization system to determine when limited use conditions have been satisfied;

return to the second party a message approving authorization request when conditions have been satisfied.

14. A settlement system for processing settlement requests in a transaction system, the settlement system configured to:

receive a second party settlement request for payment of a transaction involving a limited use PIN by a first party, wherein the second party is paid when the limited use PIN is valid;

route the second party settlement request with the limited use PIN to an issuing system for authorization;

create an accounts payable file; and

,

route the accounts payable file to an accounts payable system for payment processing of the second party based on the second party settlement request.

15. The settlement system of claim 14 further configured to create an accounts receivable file and route the accounts receivable file to a service that retrieves the associated primary account number and replaces the limited use PIN with the primary account PIN number and forwards the resulting accounts receivable file to an accounts receivable system to generate billing statement for the first party.

16. A user interface system configured to allow a user to:

register with a card provider to use a transaction system;

receive a log-in to the transaction system by providing authenticating information;

receive a verification from the transaction system that the user is authorized;

designate a transaction account as a primary account;

request a limited use PIN from the card provider; and

,

receive a limited use PIN from the card provider, wherein the card provider associated the limited use PIN with the primary account.

17. The user interface system of claim 16, further configured to provide the limited use PIN to a second party to facilitate a transaction.

18. The user interface system of claim 16, further configured to at least one of:

select and define conditions of use parameters to be associated with the limited use PIN.

19. The user interface system of claim 16, wherein said primary account is a non-currency based account.

20. The user interface system of claim 16, wherein said primary account associated with an electronic line of credit system.