Method and system to prevent fraudulent payment in credit/debit card transactions, and terminals therefor

• US 6,612,488 B2
• Filed: 10/31/2001
• Issued: 09/02/2003
• Est. Priority Date: 03/14/2001
• Status: Expired due to Term

• Current Assignee: Maxell, Ltd.
• Original Assignee: Hitachi, Ltd.
• Inventors: Suzuki, Koji
• Primary Examiner(s): St. Cyr, Daniel
• Application Number:
  US10/001,062
• Publication Number:
  US 20020130176A1
• Time in Patent Office: 671 Days
• Field of Search: 235/379, 235/380, 235/382, 235/462.45, 235/472.02, 902/2, 902/5, 902/10
• US Class Current: 235/380
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/023 the neutral party being a clearing house
• 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 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• CPC Class Codes: G06Q 20/322 Aspects of commerce using mobile devices [M-devices]
• CPC Class Codes: G06Q 20/3227 using secure elements embedded in M-devices
• CPC Class Codes: G06Q 20/341 Active cards, i.e. cards including their own processing means, e.g. including an IC or chip
• CPC Class Codes: G06Q 20/363 with the personal data of a user
• 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 20/4014 Identity check for transactions
• CPC Class Codes: G06Q 20/403 Solvency checks
• CPC Class Codes: G06Q 20/4037 Remote solvency checks
• CPC Class Codes: G06Q 20/425 using two different networks, one for transaction and one for security confirmation
• CPC Class Codes: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02
• CPC Class Codes: G07F 7/0866 by active credit-cards adapted therefor G07F7/1008 takes precedence
• CPC Class Codes: G07F 7/0886 the card reader being portable for interacting with a POS or ECR in realizing a payment transaction
• CPC Class Codes: G07F 7/1008 Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system
• CPC Class Codes: H04W 12/08 Access security
• CPC Class Codes: H04W 12/126 : Anti-theft arrangements, e.g. protection against subscriber identity module [SIM] cloning
• CPC Class Codes: H04W 4/02 : Services making use of location information
• CPC Class Codes: H04W 4/029 : Location-based management or tracking services

Abstract

The present invention enables secure, valid card payments in credit transactions to be performed, preventing fraudulent card use even in cases of loss or theft of a card or of information theft. During a transaction authorization process using a transaction terminal disposed in a credit transaction member store and connected with a host computer, user validation or credit administration is carried out by using a portable communication terminal to input to the host computer identity information which has been previously registered in the portable communication terminal and/or location information for the portable communication terminal.

Claims

1. A method of payment for credit transactions, for making payments using a transaction terminal in a credit card member store, comprising the steps of:

storing, location information of the transaction terminal in a database capable of being accessed by a host computer to which the transaction terminal is connectable;

sending information relating to the credit transaction from the transaction terminal to a portable communication terminal containing information relating to an identity of a credit card user;

inputting information relating to a current location of the portable communication terminal to the host computer; and

recognizing the credit card user as an authentic cardholder when the location of the portable communication terminal is within a predetermined range from the location of the transaction terminal.

2. A method of payment for credit transactions, for making payments using a transaction terminal in a credit card member store, comprising the steps of

storing information for validating a credit card user and location information of the transaction terminal in a database capable of being accessed by a host computer to which the transaction terminal is connectable;

sending information relating to a credit transaction from the transaction terminal to a portable communication terminal containing information relating to an identity of a credit card user;

inputting the identity information and information relating to payment of the credit transaction to the host computer through the portable communication terminal;

validating the credit card user as an authentic cardholder based on the information for distinguishing the credit card user and the identity information;

inputting information relating to a current location of the portable communication terminal relative to the host computer; and

authorizing a credit card settlement when the location of the portable communication terminal is within a predetermined range from the location of the settlement terminal.

3. A payment system in credit transactions, for making payments using a transaction terminal in a credit card member store, comprising a host computer being capable of communicating with the transaction terminal and carrying out a transaction process based on information sent from the transaction terminal;

wherein the host computer is able to access a database in which location information for a settlement terminal has been registered in advance; and

the host computer identifies a credit card user as an authentic cardholder based on the location information of a portable communication terminal and the location information of the transaction terminal, when information relating to the identity of the credit card user and the information relating to a credit transaction are inputted from the portable communication terminal, in which the identity information has been registered in advance.

4. The payment system in a credit transaction according to claim 3 wherein the transaction terminal is able to send transaction information including at least one of member store code, product name, product price, and authorization code to the portable communication terminal.

5. The settlement system in a credit transaction according to claim 3 wherein point information is stored in the database, and when the user is validated as an authentic cardholder based on information sent through the portable terminal, the host computer overwrites the point information so as to add a predetermined number of points to the point information stored in the database.