System and method for pre-authorization of individual account remote transactions

• US 6,226,624 B1
• Filed: 03/25/1999
• Issued: 05/01/2001
• Est. Priority Date: 10/24/1997
• Status: Expired due to Term

• Current Assignee: Liberty Peak Ventures, LLC (Dominion Harbor Enterprises, LLC)
• Original Assignee: GE Capital Financial Incorporated (General Electric Company)
• Inventors: Burke, Brad, Watson, Craig J.
• Primary Examiner(s): Swann, Tod R.
• Assistant Examiner(s): Myhre, James W.
• Application Number:
  US09/276,289
• Time in Patent Office: 768 Days
• Field of Search: 705/2, 705/38, 705/44
• US Class Current: 705/44
• CPC Class Codes: G06Q 10/10 Office automation; Time management
• CPC Class Codes: G06Q 20/00 Payment architectures, schemes or protocols apparatus for performing or posting payment transactions G07F7/08, G07F19/00; electronic cash registers G07G1/12
• CPC Class Codes: G06Q 20/04 Payment circuits
• 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 20/403 Solvency checks
• CPC Class Codes: G06Q 20/4037 Remote solvency checks
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02

Abstract

An account processing method and system for providing specific pre-authorization parameters for transactions that require specific pre-authorization by a network user specifying conformity parameters within which any requested transaction parameters must comply in order to enable the requested transaction to be approved. Upon establishment of an account, transaction types by standard industrial code (SIC) are specified as needing specific authorization prior to approving the transaction as requested by a merchant An account issuer provides a service to account members that permits network user to independently specify the parametric conditions under which to approve a transaction within such categories. Once a transaction is approved, the pre-authorization is spent and requires individual pre-authorization of each transaction, thereby minimizing misuse of an account number by merchants or others that come into possession of the network user'"'"'s account number.

Claims

1. In a network environment, a computerized account authorization method wherein a portion of account transactions require both individual pre-authorization specifying at least one account transaction parameter for said individual transaction and conformance by a requested individual transaction with said at least one account transaction parameter, said method comprising the steps of:

(a) establishing an account between a network user and an account issuer to allow said network user to obtain goods or services from a merchant, said account having an imposed pre-authorization transaction designator for denoting said portion of account transactions that require said individual transaction pre-authorization between said network user and said account issuer before an authorization request from said merchant;

(b) said network user with said account issuer pre-authorizing said account with said at least one account transaction parameter for said individual transaction; and

(c) upon said authorization request by said merchant, authorizing said requested individual transaction when said requested individual transaction is in conformity with said at least one specified transaction parameter.

2. In a network environment, the computerized account authorization method as recited in claim 1, wherein said establishing an account step comprises the step of designating a transaction valid duration period as said imposed pre-authorization transaction parameters.

3. In a network environment, the computerized account authorization method as recited in claim 1, wherein said pre-authorizing step comprises the step of designating said at least one specified transaction parameter as a quotation amount describing a price boundary under which to authorize said requested individual transaction.

4. In a network environment, the computerized account authorization method as recited in claim 3, wherein said designating said at least one specified transaction parameter as a quotation amount step further comprises the step of designating a variance parameter from said quotation amount as one of said at least one specified transaction parameters.

5. In a computerized account authorization system for facilitating the authorization of account transactions occurring in a network environment wherein a portion of said account transactions require both individual transaction pre-authorization specifying at least one account transaction parameter for said individual transaction and conformance by a requested individual transaction with said at least one account transaction parameter, a method for authorizing said portion of said account transactions requiring said individual transaction pre-authorization comprising the steps of:

(a) receiving an authorization table of an account established between a network user and an account issuer to allow said network user to obtain goods or services from a merchant, said authorization table capable of having a pre-authorization transaction designator to denote said portion of account transactions that require said individual transaction pre-authorization between said network user and said account issuer before an authorization request from said merchant;

(b) receiving in a pre-authorization table within said authorization table as a result of a pre-authorization process by said network user at least one specified transaction parameter for said individual transaction for association with said pre-authorization transaction designator; and

(c) authorizing said requested individual transaction when parameters from a requested transaction authorization are in conformity with each of said at least one specified transaction parameter.

6. In a computerized account authorization system for facilitating the authorization of account transactions occurring in a network environment wherein a portion of said account transactions require individual pre-authorization, the method for authorizing said portion of account transactions requiring individual pre-authorization as recited in claim 5, wherein said receiving in a pre-authorization table step further comprises the step of receiving a quotation amount as said at least one specified transaction parameter describing a price boundary under which to authorize said requested transaction.

7. In a computerized account authorization system for facilitating the authorization of account transactions occurring in a network environment wherein a portion of said account transactions require individual pre-authorization, the method for authorizing said portion of account transactions requiring individual pre-authorization as recited in claim 6, wherein said receiving a quotation amount as said at least one specified transaction parameter step further comprises the step of receiving a variance parameter designating an allowable deviation from said quotation amount as one of said at least one specified transaction parameters.

8. A computerized account authorization system for facilitating the authorization of account transactions occurring in a network environment wherein said account transactions require individual transaction pre-authorization prior to an authorization request by a merchant, said system comprising:

(a) an account between a network user and an account issuer, said account having associated therewith an authorization table to designate said account transactions that require said individual transaction pre-authorization between said network user and said account issuer before said authorization request by said merchant;

(b) a pre-authorization table comprising at least one specified transaction parameter as required to authorize a requested transaction; and

(c) means for authorizing said requested transaction when in conformity with said at least one specified transaction parameter.

9. The computerized account authorization system as recited in claim 8, wherein said at least one specified transaction parameter is a quotation amount describing a price to authorize said requested transaction.

10. The computerized account authorization system as recited in claim 9, wherein said at least one specified transaction parameter further comprises a variance parameter from said quotation amount.

11. The computerized account authorization system as recited in claim 8, wherein said means for authorizing said requested transaction comprises an authorizing agent for receiving said at least one specified transaction parameter, comparing said at least one specified transaction parameter against at least one corresponding requested transactions parameter and approving said requested transaction upon conformity therewith.

12. In an account authorization system for facilitating the authorization of account transactions occurring in a network environment wherein a portion of said account transactions require both individual transaction pre-authorization specifying at least one account transaction parameter for said individual transaction and conformance by a requested individual transaction with said at least one account transaction parameter, a computer readable medium having computer-executable instructions for authorizing said portion of account transactions requiring said individual pre-authorization for performing the steps of:

(a) receiving an authorization table of an account established between a network user and an account issuer to allow said network user to obtain goods or services from a merchant, said authorization table capable of having a pre-authorization transaction designator to denote said portion of account transactions that require said individual transaction pre-authorization between said network user and said account issuer before an authorization request from said merchant;

(b) receiving in a pre-authorization table within said authorization table as a result of a pre-authorization process by said network user at least one specified transaction parameter for association with said pre-authorization transaction designator; and

(c) authorizing said requested individual transaction when parameters from a requested transaction authorization are in conformity with each of said at least one specified transaction parameter.

13. The computer-readable medium of claim 12 having further computer-readable instructions wherein said receiving in a pre-authorization table step further comprises the step of receiving a quotation amount as said at least one specified transaction parameter describing a price boundary under which to authorize said requested transaction.

14. The computer-readable medium of claim 13 having further computer-readable instructions wherein said receiving a quotation amount as said at least one specified transaction parameter step further comprises the step of receiving a variance parameter designating an allowable deviation from said quotation amount as one of said at least one specified transaction parameters.