Electronic payment system employing limited-use account number

• US 6,339,766 B1
• Filed: 12/02/1998
• Issued: 01/15/2002
• Est. Priority Date: 12/02/1998
• Status: Expired due to Term

• Current Assignee: Hanger Solutions, LLC (IP Investments Group LLC)
• Original Assignee: TransactionSecure, L.L.C.
• Inventors: Gephart, Brian R.
• Primary Examiner(s): Millin, Vincent
• Assistant Examiner(s): Kanof, Pedro R.
• Application Number:
  US09/205,416
• Time in Patent Office: 1,140 Days
• Field of Search: 705/44, 705/39, 705/35, 705/37, 705/40, 705/42, 235/380, 235/379, 235/375
• US Class Current: 705/44
• 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
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• 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 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

Methods and systems for enabling an account holder to authorize the transfer of funds from an account using a limited-use account number. An account issuer establishes an account for the account holder and associates a regular account number and a limited-use account number with the account. The limited-use account number remains inactive until the account holder requests activation thereof The regular account number is activated and is made available to the account holder for use in any desired number of transactions. Upon receiving the request for activation of the limited-use account number, the account issuer activates the limited-use account number for either a specified period of time or a specified number of transactions. The account holder then uses the limited-use account number for the specified period of time or the specified number of transactions, after which the limited-use account number is deactivated until such time that the account holder again requests activation thereof Deactivation of the limited-use account number substantially prevents unauthorized persons from gaining unlimited access to the account.

Claims

1. In a computer system maintained by an account issuer, a method for executing a financial transaction using an account that has at least two account numbers, one of which being a limited-use account number, comprising the steps of:

issuing a first account number associated with an account established by the account issuer, the first account number being activated such that an account holder associated with the account is capable of repeatedly authorizing funds to be transferred from the account using the first account number;

issuing a second account number associated with the account;

such that the first account number and the second account number are both associated with the same account as opposed to being associated with two different accounts, the first account number and the second account number being associated with the same account to the extent that funds authorized for transfer using the first account number and funds authorized for transfer using the second account number are drawn from the same account rather than being drawn from two accounts, the second account number remaining inactive until the account holder requests activation thereof;

activating the second account number in response to a request for activation made by the account holder;

transferring funds from the account in response to the account holder making an authorization using the second account number; and

deactivating the second account number upon satisfaction of a limited-use condition, such that the deactivated second account number cannot be used to transfer funds until another request for activation is made by the account holder.

2. A method as defined in claim 1, further comprising the step of transferring funds from the account in response to the account holder making another authorization, wherein the other authorization is made using the first account number, the first account remaining activated after the funds have been transferred.

3. A method as defined in claim 1, wherein

the limited-use condition comprises the elapsing of a predetermined period of time that begins when the step of activating the second account number is conducted.

4. A method as defined in claim 1, wherein

the limited-use condition comprises the completion of a predetermined number of transactions associated with the second account number.

5. A method as defined in claim 1, further comprising the step of establishing the account, wherein the account represents a line of credit provided for the account holder.

6. A method as defined in claim 1, further comprising the step of establishing the account, wherein the account is a deposit account to which the account holder deposits funds.

7. In a computer system, a method for executing a financial transaction such that a second account number associated with an account is activated only under limited conditions and used to authorize transfer of funds from the account only when the limited conditions are satisfied, comprising the steps of:

storing, in a computer-readable medium associated with the computer system;

a data structure by which an account is associated with an account holder;

a first account number associated with the account, the first account number being activated such that the account holder is capable of repeatedly authorizing funds to be transferred from the account using the first account number; and

a second account number associated with the account, such that the first account number and the second account number are both associated with the same account as opposed to being associated with two different accounts, the first account number and the second account number being associated with the same account to the extent that funds authorized for transfer using the first account number and funds authorized for transfer using the second account number are drawn from the same account rather than being drawn from two accounts, the second account number remaining inactive until the account holder requests activation thereof;

adjusting the data structure in response to a request by the account holder for activation of the second account number, such that the data structure indicates that the second account number has been activated;

initiating a transfer of funds from the account in response to the account holder making an authorization using the second account number; and

adjusting the data structure after initiating the transfer of funds, such that the data structure indicates that the second account number is deactivated, and such that the deactivated second account number cannot be used to transfer funds until another request for activation is made by the account holder.

8. A method as defined in claim 7, further comprising the step of initiating another transfer of funds from the account in response to the account holder making an authorization using the first account number.

9. A method as defined in claim 7, further comprising, after the steps of adjusting the data structure after initiating the transfer of funds, the steps of:

readjusting the data structure in response to another request by the account holder for activation of the second account number, such that the data structure again indicates that the second account number has been activated;

initiating another transfer of funds from the account in response to the account holder making another authorization using the second account number; and

readjusting the data structure after initiating the other transfer of finds, such that the data structure again indicates that the second account number is deactivated, and such that the deactivated second account number cannot be used to transfer funds until yet another request for activation is made by the account holder.

10. A method as defined in claim 7, further comprising the steps of:

receiving a request to initiate another transfer of funds from the account using the second account number while the second account number is not activated; and

declining to initiate the other transfer of funds.

11. In a computer system maintained by an account issuer, a method for executing a financial transaction such that a second account number associated with an account is activated only under limited conditions and used to authorize transfer of funds from the account until the limited conditions are satisfied, comprising the steps of:

issuing a first account number associated with an account established by the financial institution, the first account number being activated such that an account holder associated with the account is capable of repeatedly authorizing funds to be transferred from the account using the first account number;

issuing a second account number associated with the account, such that the first account number and the second account number are both associated with the same account as opposed to being associated with two different accounts, the first account number and the second account number being associated with the same account to the extent that funds authorized for transfer using the first account number and funds authorized for transfer using the second account number are drawn from the same account rather than being drawn from two accounts, the second account number remaining inactive until the account holder requests activation thereof;

transferring funds from the account in response to the account holder making an authorization using the first account number;

activating the second account number in response to a request for activation made by the account holder, wherein the second account number is to remain activated according to limited conditions;

transferring funds from the account in response to the account holder making another authorization, wherein the other authorization is made using the second account number; and

deactivating the second account number when the limited conditions have been satisfied, such that the deactivated second account number cannot be used to transfer funds until another request for activation is made by the account holder.

12. A method as defined in claim 11, wherein the limited conditions specify that the step of deactivating the second account number is to be conducted upon expiration of a specified period of time that begins when the step of activating the second account number is conducted.

13. A method as defined in claim 11, wherein the limited conditions specify that the step of deactivating the second account number is to be conducted when the step of transferring funds from the account has been conducted a specified number of times.

14. A method for authorizing funds to be transferred from an account by an account holder such that a second account number associated with an account is activated only under limited conditions and used to authorize transfer of funds from the account until the limited conditions are satisfied, comprising the steps of:

receiving, by the account holder, a first account number from an account issuer, the first account number being associated with an account established by the account issuer, the first account number being activated such that the account holder is capable of repeatedly authorizing funds to be transferred from the account using the first account number,

receiving, by the account holder, a second account number associated with the account, such that the first account number and the second account number are both associated with the same account as opposed to being associated with two different accounts, the first account number and the second account number being associated with the same account to the extent that funds authorized for transfer using the first account number and funds authorized for transfer using the second account number are drawn from the same account rather than being drawn from two accounts, the second number remaining inactive until the account holder requests activation thereof;

requesting, by the account holder, activation of the second account number, such that second account number becomes activated until limited conditions are satisfied; and

authorizing, by the account holder, funds to be transferred from the account using the second account number, wherein, after the funds are transferred, the second account number becomes deactivated such that the deactivated second account number cannot be used to transfer funds until another request for activation is made by the account holder.

15. A method as defined in claim 14, further comprising the step of authorizing, by the account holder, funds to be transferred from the account using the first account number, after which the first account number remains activated.

16. A method as defined in claim 14, wherein the step of authorizing funds to be transferred comprises the step of transmitting a message to the account issuer.

17. A method as defined in claim 16, wherein the message is transmitted to the account issuer by the Internet.

18. A method as defined in claim 16, wherein the message is transmitted to the account issuer by telephone.

19. A method as defined in claim 14, wherein:

the limited conditions comprise the elapsing of a predetermined period of time that begins when the second account number becomes activated; and

the second account number becomes deactivated upon the elapsing of the predetermined period of time.

20. A method as defined in claim 19, wherein the step of requesting activation of the second account number comprises the step of selecting, by the account holder, a duration of the predetermined period of time.

21. A method as defined in claim 14, wherein:

the limited conditions comprise the completion of a predetermined number of transactions associated with the second account number; and

the second account number becomes deactivated upon the completion of the predetermined number of transactions.

22. A method as defined in claim 21, wherein the step of requesting activation of the second account number comprises the step of selecting, by the account holder, a number that is designated as the predetermined number of transactions.

23. A method as defined in claim 14, wherein the step of receiving the first account number comprises the step of obtaining a card having encoded thereon the first account number, the second account number not being encoded on the card.

24. A computer program product for implementing a method of maintaining an account for an account holder, the account having at least two account numbers, one of which being a limited-use account number, wherein the method is capable of being implemented using a computer system of an account issuer, the computer program product comprising:

a computer-readable medium carrying computer-executable instructions for implementing the method, wherein the computer-executable instructions comprise;

program code means for issuing a first account number associated with an account established by the account issuer, the first account number being activated such that an account holder associated with the account is capable of repeatedly authorizing funds to be transferred from the account using the first account number;

program code means for issuing a second account number associated with the account, such that the first account number and the second account number are both associated with the same account as opposed to being associated with two different accounts, the first account number and the second account number being associated with the same account to the extent that funds authorized for transfer using the first account number and funds authorized for transfer using the second account number are drawn from the same account rather than being drawn from two accounts, the second account number remaining inactive until the account holder requests activation thereof;

program code means for activating the second account number in response to a request for activation made by the account bolder;

program code means for transferring funds from the account in response to the account bolder making an authorization using the second account number; and

program code means for deactivating the second account number upon satisfaction of a limited-use condition, such that the deactivated second account number cannot be used to transfer funds until another request for activation is made by the account holder.

25. A computer program product as defined in claim 24, wherein the computer-executable instructions further comprise program code means for transferring funds from the account in response to the account holder making an authorization using the first account number, wherein the first account number remains activated after the funds are transferred.

26. A computer program product as defined in claim 24, wherein the computer-executable instructions further comprise program code means for receiving the request for activation via the Internet.

27. A computer program product as defined in claim 24, wherein:

the limited conditions comprise a specified number of transactions; and

the computer-executable instructions further comprise program code means for detecting the execution of the specified number of transactions using the second account number, wherein the second account number is to be deactivated after the execution of the specified number of transactions.

28. A computer program product as defined in claim 24, wherein:

the limited conditions comprise the elapsing of a predetermined period of time after activation of the second account number; and

the computer-executable instructions further comprise program code means for detecting the elapsing of the predetermined period of time after activation of the second account number, wherein the second account number is to be deactivated after the elapsing of the specified period of time.

29. A computer program product as defined in claim 24, wherein the program code means for activating the second account number comprises program code means for determining whether the request for activation includes a private identifier associated with the account holder.

30. A method for executing a financial transaction using an account that has at least two account numbers, wherein one of the at least two account numbers is a limited-use account number, comprising the steps of:

issuing a first account number associated with an account established by the account issuer, the first account number being activated such that an account holder associated with the account is capable of repeatedly authorizing funds to be transferred from the account using the first account number;

activating a second account number associated with the account, the first account number and the second account number both being associated with the same account as opposed to being associated with two different accounts, the first account number and the second account number being associated with the same account to the extent that funds authorized for transfer using the first account number and funds authorized for transfer using the second account number are drawn from the same account rather than being drawn from two accounts;

transferring funds from the account in response to the account holder authorizing the funds to be transferred from the account using the second account number; and

deactivating the second account number upon satisfaction of a limited-use condition, such that the deactivated second account number can no longer be used to transfer funds from the account.

31. A method as defined in claim 30, wherein the limited-use condition comprises the elapsing of a predetermined period of time.

32. A method as defined in claim 31, wherein the predetermined period of time is measured from the activation of the second account number.

33. A method as defined in claim 31, wherein the predetermined period of time is specified by the account holder.

34. A method as defined in claim 31, wherein the predetermined period of time is specified by the account issuer.