Methods for providing cardless payment

• US 7,099,850 B1
• Filed: 09/21/2001
• Issued: 08/29/2006
• Est. Priority Date: 09/21/2001
• Status: Active Grant

• Current Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Original Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Inventors: Mann, II, William Frederick, Hirka, Jeffrey L.
• Primary Examiner(s): Abdi, Kambiz
• Application Number:
  US09/957,505
• Time in Patent Office: 1,803 Days
• Field of Search: 705 64- 67, 705/72, 380 28- 30
• US Class Current: 705/64
• CPC Class Codes: G06Q 20/16 Payments settled via telecommunication systems
• CPC Class Codes: G06Q 20/367 involving electronic purses or money safes
• CPC Class Codes: G06Q 20/3672 initialising or reloading thereof
• CPC Class Codes: G06Q 20/3674 involving authentication
• CPC Class Codes: G06Q 20/38 Payment protocols; Details thereof
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 20/385 using an alias or single-use codes
• CPC Class Codes: G06Q 20/4012 Verifying personal identification numbers [PIN]

Abstract

The method and system of the invention provide a variety of techniques for using a selected alias and a selected personal identification entry (PIE) in conjunction with use of a transaction card, such as a credit card, debit card or stored value card, for example. A suitable number or other identification parameter is selected by the account-holder as an alias. The account-holder is then required to choose a PIE for security purposes. The alias is linked to the account-holder'"'"'s credit card number via a database. When the account-holder enters into a transaction with a merchant, the physical card need not be present. The account-holder simply provides his or her alias and then the PIE. This can be done at any point of sale such as a store, catalog telephone order, or over the Internet. The alias and PIE are entered and authorization is returned from the credit card company.

Claims

1. A method for completing a transaction relating to an account in which an account-holder is not required to know an account number and is not required to have an account card physically present during the transaction, the method comprising the steps of:

linking a selected alias of the account-holder with the account number of the account and a selected personal identification entry, which is associated with the account number, in a database, wherein each of the selected alias and the selected personal identification entry is previously selected by the account-holder;

effecting a transaction for the account-holder by receiving from the account-holder the selected alias;

searching the database for the selected alias and the selected personal identification entry that is linked to the selected alias;

prompting the account-holder for entry of an entered personal identification entry;

accepting entry of the entered personal identification entry;

authenticating the transaction upon determining that the entered personal identification entry entered by the account-holder matches the selected personal identification entry found through the database search; and

performing the transaction for the account number once the transaction is authenticated; and

wherein at least one of the selected alias and the selected personal identification entry includes both;

a static portion, the static portion being a designated portion of the selected alias or selected personal identification entry that is not changed; and

a dynamic portion, the dynamic portion being a designated portion of the selected alias or selected personal identification entry that is changed, the method further including the step of changing the dynamic portion of the selected alias or selected personal identification entry while not changing the static portion of the selected alias or selected personal identification entry.

2. The method of claim 1, wherein the account number is a credit card number, and the step of performing the transaction if the transaction is authenticated includes charging the credit card number.

3. The method of claim 1, wherein the transaction is completed over the Internet.

4. The method of claim 3, wherein the transaction is between a consumer and a merchant.

5. The method of claim 1, wherein the account is selected from the group consisting of a credit card account, a mutual funds account, a money market account, a margin account, a bank account, a line of credit account, a sweeps card account, a stock account, and an information account.

6. The method of claim 1, wherein the steps of effecting a transaction for the account-holder by the account-holder entering the selected alias, prompting the account-holder for entry of the entered personal identification entry, and accepting entry of the entered personal identification entry is performed through the use of Internet communications.

7. The method of claim 1, wherein the steps of effecting a transaction for the account-holder by the account-holder entering the selected alias, prompting the account-holder for entry of the entered personal identification entry, and accepting entry of the entered personal identification entry is performed through the use of at least one of a telephone system, cellular phone system and a personal communications service.

8. The method of claim 1, wherein the selected personal identification entry is a personal identification number (PIN).

9. The method of claim 1, wherein:

the selected personal identification entry includes at least one of numbers, alphanumerics, names, phrases, fingerprint recognition, gene identification, DNA identification, biometrics, retina identification, and voice recognition; and

the selected alias includes at least one of numbers, alphanumerics, names, phrases, fingerprint recognition, gene identification, DNA identification, biometrics, retina identification, and voice recognition.

10. The method of claim 1, further including the step of charging a fee in connection with performing the transaction for the account number if the transaction is authenticated.

11. The method of claim 1, further including the step of:

prompting the account-holder for entry of a further selection subsequent to the account-holder entering the selected alias and entered personal identification entry; and

wherein

performing the transaction for the account number is performed based on the further selection.

12. The method of claim 11, wherein the prompting the account-holder for entry of a further selection is done using a selection menu, and wherein the further selection determines which one of a plurality of possible payment methods is used.

13. The method of claim 12, wherein the plurality of possible payment methods includes a credit payment method and a debit payment method.

14. The method of claim 1, wherein the selected personal identification entry is one of a plurality of possible selected personal identification entries, the method further including the step of determining a particular selected personal identification entry from the plurality of possible selected personal identification entries based on a rotation through the plurality of possible selected personal identification entries;

and

the entered personal identification entry is one of a plurality of possible entered personal identification entries, the method further including the step of determining a particular entered personal identification entry from the plurality of possible entered personal identification entries based on a rotation through the plurality of possible entered personal identification entries.

15. The method of claim 14, wherein there are three possible selected personal identification entries that correspond to three possible entered personal identification entries.

16. The method of claim 14, wherein the step of determining the particular entered personal identification entry from the plurality of possible entered personal identification entries includes prompting the account-holder for the particular entered personal identification entry by providing a personal identification entry rotation number.

17. The method of claim 1, wherein the step of authenticating the transaction includes verifying the account-holder identification parameters of a computer of the account-holder, the computer used in the transaction.

18. The method of claim 1, wherein the steps of effecting a transaction for the account-holder by the account-holder entering the selected alias and accepting entry of the entered personal identification entry is performed using a keypad.

19. The method of claim 1, wherein the account-holder is a first business entity and the step of authenticating the transaction if the entered personal identification entry entered by the account-holder matches the selected personal identification entry found through the database search is performed by a second business entity.

20. The method of claim 1, wherein the selected personal identification entry is an authorized signature, and the step of accepting entry of the entered personal identification entry includes the account-holder signing a signed signature on a digital signature pad;

and

wherein the step of authenticating the transaction if the entered personal identification entry entered by the account-holder matches the selected personal identification entry found through the database search includes comparing the authorized signature with the signed signature.

21. The method of claim 20, wherein comparing the authorized signature with the signed signature includes comparing data points of the authorized signature with data points of the signed signature to determined if a level of similarity is attained.

22. The method of claim 1, further including the step of the account-holder changing a personal identification entry of the account-holder, the changing the personal identification entry of the account-holder including changing the personal identification entry from a prior personal identification entry to the selected personal identification entry.

23. The method of claim 22, wherein the step of the account-holder changing the personal identification entry of the account-holder is performed using at least one selected from the group of an Internet transmission, a telephone communication, a person-to-person communication, a cellular phone system communication, a personal communications service communication and by mail.

24. The method of claim 1, wherein:

the account-holder entering the selected alias includes the account-holder entering the selected alias into a personal digital assistant, the personal digital assistant then communicating the selected alias to a processing system; and

wherein the accepting entry of the entered personal identification entry includes the account-holder entering the entered personal identification entry into the personal digital assistant, the personal digital assistant then communicating the entered personal identification entry to the processing system for authenticating the transaction.

25. The method of claim 24, wherein the processing system includes a processing system of a cashier.

26. The method of claim 24, wherein the step of performing the transaction for the account number if the transaction is authenticated includes electronically transmitting digital receipt information to the personal digital assistant.

27. The method of claim 1, wherein the changing the dynamic portion of the selected personal identification entry while not changing the static portion of the selected personal identification entry is performed by the account-holder.

28. The method of claim 1, wherein the changing the dynamic portion of the selected personal identification entry while not changing the static portion of the selected personal identification entry is done based on the calendar date.

29. The method of claim 1, further including the account-holder entering a specialty personal identification entry, the specialty personal identification entry effecting an operation on the account.

30. The method of claim 29, wherein the entry of the specialty personal identification entry performs an operation selected from the group deactivating the account and activating the account.

31. The method of claim 29, wherein the account is a funds account and the entry of the specialty personal identification entry adjusts the available balance of the funds account.

32. The method of claim 1, wherein:

the account is one of a plurality of possible accounts; and

the step of accepting entry of the entered personal identification entry includes accepting entry of one of a plurality of possible entered personal identification entries, the one of a plurality of possible entered personal identification entries determining which of the plurality of possible accounts is used in the transaction.

33. The method of claim 32, further including providing the account-holder with feedback information regarding which of the plurality of possible accounts was used in the transaction.

34. The method of claim 33, further including printing the feedback information on a receipt for the account-holder.

38. The method of claim 1, wherein the entered personal identification entry includes a first partial personal identification entry and a second partial personal identification entry, and the account-holder includes a first person and a second person;

and

the step of prompting the account-holder for entry of an entered personal identification entry includes;

prompting a first person for entry of the first partial personal identification entry; and

prompting a second person for entry of the second partial personal identification entry; and

the step of accepting entry of the entered personal identification entry includes;

accepting entry of the first partial personal identification entry; and

accepting entry of the second partial personal identification entry;

wherein the first partial personal identification entry and a second partial personal identification entry collectively form the entered personal identification entry.

39. The method of claim 38, further including the steps of:

determining an elapsed time period between accepting entry of the first partial personal identification entry and accepting entry of the second partial personal identification entry; and

nulling the second partial personal identification entry if the elapsed time period exceeds a predetermined time period.

40. The method according to claim 39, wherein the first person specifies the predetermined time period.

41. The method of claim 1, wherein at least one of the selected alias and the entered personal identification entry is based on human characteristic recognition.

42. The method of claim 41, wherein the human characteristic recognition is selected from the group including fingerprint recognition, gene identification, DNA identification, biometrics recognition, retina identification, and voice recognition.

43. The method of claim 1, wherein the account is a funds account, and wherein the account is one of a plurality of possible funds accounts;

and

the step of accepting entry of the entered personal identification entry includes accepting entry of one of a plurality of possible entered personal identification entries, the one of a plurality of possible entered personal identification entries determining the hierarchical ranking of which of the plurality of possible funds accounts is accessed for withdrawal of funds.

35. A method for completing a transaction relating to an account in which an account-holder is not required to know an account number and is not required to have an account card physically present during the transaction, the method comprising the steps of:

linking a selected alias of the account-holder with the account number of the account and a selected personal identification entry, which is associated with the account number, in a database, wherein each of the selected alias and the selected personal identification entry is previously selected by the account-holder;

effecting a transaction for the account-holder by receiving from the account-holder entering a selected alias, the selected alias being recalled from memory by the account-holder;

searching the database for the selected alias and the selected personal identification entry that is linked to the selected alias;

prompting the account-holder for entry of a remembered personal identification entry, the remembered personal identification entry being recalled from memory by the account-holder;

accepting entry of the remembered personal identification entry;

authenticating the transaction upon determining that the remembered personal identification entry entered by the account-holder matches the selected personal identification entry found through the database search; and

performing the transaction for the account number once the transaction is authenticated; and

wherein accepting entry of the remembered personal identification entry includes accepting entry of one of a plurality of possible personal identification entries, the one of a plurality of possible personal identification entries selected dictating the hierarchical ranking of the order in which the plurality of possible funds accounts are accessed for withdrawal of funds, the plurality of possible personal identification entries respectively dictating a different order.

36. A method for completing a transaction relating to an account in which an account-holder is not required to know a card number and is not required to have an account card physically present during the transaction, the method comprising the steps of:

linking a selected alias of the account-holder with an account number of the account and a selected personal identification entry, which is associated with the account number, in a database, wherein each of the selected alias and the selected personal identification entry is previously selected by the account-holder;

effecting a transaction for the account-holder by receiving from the account-holder a selected alias;

searching the database for the selected alias and the selected personal identification entry that is associated with the selected alias;

prompting the account-holder for entry of an entered personal identification entry;

accepting entry of the entered personal identification entry;

authenticating the transaction upon determining that the entered personal identification entry entered by the account-holder matches the selected personal identification entry found through the database search; and

performing the transaction for the account number once the transaction is authenticated; and

wherein the selected personal identification entry is one of a plurality of possible selected personal identification entries, the method further including the step of determining a particular selected personal identification entry from the plurality of possible selected personal identification entries based on a rotation through the plurality of possible selected personal identification entries, the rotation being driven by transactions effected by the account-holder; and

the entered personal identification entry is one of a plurality of possible entered personal identification entries, the method further including the step of determining a particular entered personal identification entry from the plurality of possible entered personal identification entries based on a rotation through the plurality of possible entered personal identification entries; and

wherein the particular selected personal identification entry is the selected personal identification entry, and the particular entered personal identification entry is the entered personal identification entry.

44. The method of claim 36, wherein determining the particular entered personal identification entry from the plurality of possible entered personal identification entries includes prompting the account-holder for the particular entered personal identification entry by providing a personal identification entry rotation number.

37. A method for completing a transaction relating to an account in which an account-holder is not required to know a card number and is not required to have an account card physically present during the transaction, the method comprising the steps of:

linking a selected alias of the account-holder with an account number of the account and a selected personal identification entry, which is associated with the account number, in a database, wherein each of the selected alias and the selected personal identification entry is previously selected by the account-holder;

effecting a transaction for the account-holder by receiving from the account-holder the selected alias;

searching the database for the selected alias and the selected personal identification entry that is linked to the selected alias;

prompting the account-holder for entry of an entered personal identification entry;

accepting entry of the entered personal identification entry;

authenticating the transaction upon determining that the entered personal identification entry entered by the account-holder matches the selected personal identification entry found through the database search;

performing the transaction for the account number once the transaction is authenticated; and

wherein the prompting the account-holder for entry of an entered personal identification entry occurs after the searching the database for the selected alias and the selected personal identification entry that is linked to the selected alias.