Method and system for providing temporary credit authorizations

• US 6,456,984 B1
• Filed: 05/28/1999
• Issued: 09/24/2002
• Est. Priority Date: 05/28/1999
• Status: Expired due to Term

• Current Assignee: Qwest Communications International Incorporated (Lumen Technologies, Inc.)
• Original Assignee: Qwest Communications International Incorporated (Lumen Technologies, Inc.)
• Inventors: Wolff, Alan Scott, Demoff, Jeff S., Reeves, Brad
• Primary Examiner(s): Poinvil, Frantzy
• Assistant Examiner(s): FULTS, RICHARD C
• Application Number:
  US09/321,934
• Time in Patent Office: 1,215 Days
• Field of Search: 705/40, 705/35-39, 705/41-45
• US Class Current: 705/40
• 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 20/042 characterized in that the payment protocol involves at least one cheque
• 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 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/1085 involving automatic teller machines [ATMs]
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• 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 40/03 Credit; Loans; Processing thereof

Abstract

A method and system are provided for issuing credit as payment in a consumer transaction which eliminates the need for a traditional credit card while also minimizing any potential for fraud or theft. The present invention responds to a request for issuing a credit transaction number that is made concurrent with a particular transaction. The credit transaction number is then randomly generated and made valid only for the requested transaction, and automatically ages a short period of time after the request. The credit transaction numbers are continually recycled for subsequent requests irrespective of the customer identity. The request can be made from a mobile communication device such as PCS telephone, or from a personal computer using an electronic commerce program. Transactions between customers and registered or known vendors can be automatically carried out by a centralized service provider without generating the unique, temporary number, or without the need for the customer or vendor to exchange personal information.

Claims

1. A method for issuing credit as payment in a consumer transacton comprising:

requesting issuance of a credit transaction number over the internet or by telephone concurrent with the consumer transaction, the request comprising supplying information regarding the transaction amount, and identification of the customer and vendor;

determining if the request is acceptable;

randomly generating a unique credit transaction number if the request is acceptable, the unique transaction number being valid only for a predetermined period of time and for the requested transaction; and

sending the generated unique credit transaction number for completion of the consumer transaction.

2. The method of claim 1 wherein the generated unique credit transaction number is sent to the customer.

3. The method of claim 1 wherein the generated unique credit transaction number is sent to the vendor.

4. The method of claim 1 further comprising determining that the identified vendor is registered, automatically debiting a customer account and making payment to the vendor without generating a unique credit transaction number.

5. The method of claim 1 wherein requesting the credit transaction number is performed using a mobile communication device.

6. The method of claim 1 wherein requesting the credit transaction number is pe rformed using a PCS telephone.

7. The method of claim 6 wherein the unique credit transaction number is sent to the PCS telephone for display, and the vendor manually enters the displayed number into a credit verification system for approval.

8. The method of claim 6 wherein the unique credit transaction number is sent to the PCS telephone, and the PCS telephone is used as an input device for entering the generated unique credit transaction number into a vendor credit verification system for approval.

9. The method of claim 1 wherein requesting the credit transaction number is performed using a personal computer.

18. The system of claim 10 method of claim 1 wherein the credit request input device comprises a personal computer.

10. A system for issuing credit as payment in a consumer transaction involving a consumer and a vendor comprising:

a transaction processing subsystem located at a service provider; and

a consumer credit request input device capable of communicating with the transaction processing subsystem, the input device arranged to generate a request for issuance of a credit transaction number concurrent with the consumer transaction, the request including an identification of the customer and the vendor, and sending the request over the internet or by telephone to the transaction processing subsystem, wherein the transaction processing subsystem is arranged to randomly generate a unique credit transaction number if the request is acceptable, said unique transaction number being valid only for a predetermined period of time and for the requested transaction.

11. The system of claim 10 wherein the transaction processing subsystem is arranged to send the generated unique credit transaction number to the consumer credit request input device.

12. The system of claim 10 wherein the transaction processing subsystem is arranged to send the generated unique credit transaction number to the vendor.

13. The system of claim 10 wherein the transaction processing subsystem is arranged to determine that the vendor is registered, and automatically debit a customer account and pay the vendor without generating a unique credit transaction number.

14. The system of claim 10 wherein the credit request input device comprises a mobile communication device.

15. The system of claim 10 wherein the credit request input device comprises a PCS telephone.

16. The system of claim 15 wherein the PCS telephone comprises a display, and the unique credit transaction number is sent to the PCS telephone for output on the display, wherein the vendor manually enters the displayed number into a credit verification system for approval.

17. The system of claim 15 wherein the transaction processing subsystem is arranged to send the generated unique credit transaction number to the PCS telephone, and the PCS telephone comprises a proximity output device for entering the received number into a vendor credit verification system for approval.

19. A method for automatic processing and payment of a transaction between a customer and a vendor comprising:

establishing a centralized service provider through which electronic commnerce may flow, said centralized service provider being able to identify both the customer and the vendor of the transaction;

receiving a purchase request from the customer at the centralized service provider over the internet or by telephone requesting issuance of a temporary randomly generated unique credit transaction number concurrent with the consumer transaction, the transaction number being valid only for a predetermined period of time and for the transaction, the request comprising supplying information regarding the transaction amount, and identification of the customer and the vendor;

determining if the request is acceptable; and

automatically debiting a customer account established with the centralized service provider, and paying the vendor.