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

• US 6,913,194 B2
• Filed: 07/07/2003
• Issued: 07/05/2005
• 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:
  US10/615,161
• Publication Number:
  US 20040004117A1
• Time in Patent Office: 729 Days
• Field of Search: 235/380, 235/381, 235/382, 235/385, 235/462.45, 235/472.01, 705/39, 705/44, 705/64
• 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 portable communication terminal for making payments using a transaction terminal in a credit card member store, comprising:

a location detector which detects a current location of the portable communication terminal;

a memory which stores the current location information;

a receiver operable to receive from the transaction terminal card information containing information relating to an identity of a credit card user; and

a transmitter which transmits the current location information to a host computer,

wherein the credit card user is recognized 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 portable communication terminal for making payments using a transaction terminal in a credit card member store and for use in a payment system, comprising:

a location detector which detects current location information of the portable communication terminal;

a memory which stores the current location information;

a receiver which receives card information containing information relating to an identity of a credit card user from the transaction terminal; and

a transmitter which transmits the location information,

wherein the payment system comprises a host computer, the transaction terminal, and the portable communication terminal,

wherein the location information of the portable communication terminal is transmitted to the host computer while the location information of the transaction terminal is stored in a database capable of being accessed by the host computer,

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

3. A portable communication terminal according to claim 2, further comprising a receiver which receives information whether card use is allowed.

4. A portable communication terminal according to claim 2, further comprising a settlement information receiver which receives settlement information, and wherein the transmitter transmits the settlement information received by the settlement information receiver, the location information and the card information.

5. A portable communication terminal according to claim 2, wherein the location information comprises latitude and longitude information.