System and method for performing secure credit card purchases

• US 6,324,526 B1
• Filed: 01/15/1999
• Issued: 11/27/2001
• Est. Priority Date: 01/15/1999
• Status: Expired due to Fees

• Current Assignee: John D’Agostino
• Original Assignee: John D’Agostino
• Inventors: D'Agostino, John
• Primary Examiner(s): Stamber, Eric W.
• Assistant Examiner(s): Tesfamariam, Mussie
• Application Number:
  US09/231,745
• Time in Patent Office: 1,047 Days
• Field of Search: 705/14, 705/1, 705/39, 705/41, 705/44, 380/23, 380/25, 235/380, 235/375
• 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 plurality of payment categories, at least one of said payment categories including at least two of said purchase authorization for a repeating transaction at a fixed amount payable at each of a fixed number of time intervals;

d) designating at least one of said payment categories;

e) generating a transaction code reflecting at least said designated payment category and a purchase authorization within said designated payment category;

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

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

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

2. A method as recited in claim 1 further comprising the step of obtaining said purchase authorization from the custodial authorizing entity.

3. A method as recited in 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.

4. A method as recited in claim 1 further comprising the merchant communicating the transaction code to the custodial authorizing entity for verification.

5. A method as recited in claim 1 further comprising the custodial authorizing entity generating a transaction code which reflects at least said designated one of a plurality of said payment categories.

6. A method as recited in claim 5 further comprising defining said plurality of payment categories to include amount parameters for a cost of purchase.

7. A method as recited in claim 5 further comprising defining said plurality of payment categories to include time parameters during which the purchase can be completed.

8. A method as recited in claim 5 further comprising defining the plurality of payment categories to include authorization for a single transaction at a fixed amount for purchase within a predetermined period of time.

9. A method as recited in claim 5 further comprising defining the plurality of payment categories to include authorization for a single transaction at a maximum amount for purchase within a predetermined period of time.

10. A method as recited in claim 5 further comprising defining the plurality of payment categories to include at least two of the purchase authorizations for multiple transactions at a maximum total amount for items purchased within a predetermined time period.

11. A method as recited in claim 5 further comprising defining the plurality of payment categories to include authorization for a repeating transaction at a fixed amount payable at each of an unspecified number of time intervals.

12. A method as recited in claim 5 further comprising defining the plurality of payment categories to include:

a) authorization for a single transaction at a fixed amount for a purchase within a predetermined period of time,

b) authorization for a single transaction at a maximum amount for a purchase within a predetermined period of time,

c) authorization for multiple transactions at a maximum total amount for purchases within a predetermined time period,

d) authorization for a repeating transaction at a fixed amount for purchases payable at each of a fixed number of time intervals, and

e) authorization for a repeating transaction at a fixed amounts for purchases payable at each of an unspecified number of time intervals.

13. A method as recited in claim 5 further comprising defining the plurality of categories to include:

a) authorization for a single transaction at a fixed amount for a purchase,

b) authorization for a single transaction at a maximum amount for a purchase,

c) authorization for multiple transactions at a maximum total amount for purchases,

d) authorization for a repeating transaction at a fixed amount for purchases payable at each of a fixed number of time intervals, and

e) authorization for a repeating transaction at a fixed amounts for purchases payable at each of an unspecified number of time intervals.

14. A method as recited in claim 1 further comprising generating a transaction code which further reflects an identification of the merchant.

15. A method as recited in claim 1 further comprising the step of defining the plurality of categories to include a limited time interval during which said purchase authorization is valid.

16. 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 a customer'"'"'s credit card account;

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

c) defining a plurality of payment categories, said payment categories including at least (i) authorization for a single transaction at a fixed amount for a purchase;

(i) authorization for a single transaction at a maximum amount for a purchase; and

iii) authorization for multiple transactions at a maximum total amount for purchases;

d) designating at least one of said payment categories;

e) generating a transaction code reflecting at least said designated payment category and a purchase authorization within said designated payment category;

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

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

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