System and method for securing a credit account

• US 7,264,154 B2
• Filed: 07/12/2004
• Issued: 09/04/2007
• Est. Priority Date: 07/12/2004
• Status: Active Grant

• Current Assignee: Harris Intellectual Property, L.P.
• Original Assignee: David N. Harris
• Inventors: Harris, David N.
• Primary Examiner(s): Le; Uyen-Chau N.
• Assistant Examiner(s): TAYLOR, APRIL ALICIA
• Application Number:
  US10/889,227
• Publication Number:
  US 20060006223A1
• Time in Patent Office: 1,149 Days
• Field of Search: 235/375, 235379-382
• US Class Current: 235/380
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/40 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 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

Abstract

A system and method is disclosed for verifying a commercial transaction between a card-holder, a merchant, and a credit card company. The card-holder makes a purchase with the merchant using a full credit card number. The merchant submits a transaction approval request for approval with the credit card company. The credit card company executes conventional credit approval of the transaction approval request, as well as verifies the transaction approval request with the card-holder. An approval is sent to the merchant only after the transaction approval request is both conventionally approved by the credit card company and verified by the card-holder. The card-holder, or the credit card company, may initiate verification of the transaction approval request. The transaction approval request can also be automatically verified if one or many pre-verification criteria is/are satisfied by data contained in the transaction approval request. The pre-verification criteria can be initially determined and/or modified by the card-holder. As another security feature, the card-holder may selectively activate and deactivate their credit card/account as desired. The credit card itself includes indicia of security measures.

Claims

1. A computer system for approving a commercial transaction between a user with account information and a merchant, said computer system comprising:

a processing unit for processing data and code; and

memory for storing said data and said code, said data and said code together including

a merchant communications module operative to facilitate a connection with said merchant for receiving a transaction approval request,

activation data accessible to an account-holder, said activation data indicative of the activation status of an account associated with said account-holder and with said account information, and

an authorization module responsive to said transaction approval request and operative to deny said transaction approval request if said account associated with said account-holder is deactivated;

whereby

prior to said user initiating said transaction with said merchant said account-holder can modify said activation data to activate said account, thereby facilitating approval of said transaction approval request;

subsequent to approval of said transaction approval request, said account-holder can modify said activation data to deactivate said account such that subsequent transaction approval requests will be denied; and

prior to said user initiating a future transaction using said account information, said account-holder can again modify said activation data to facilitate approval of a transaction approval request associated with said future transaction, thereby allowing said card-holder to deactivate said account between each future transaction.

2. A computer system according to claim 1, wherein:

said activation data includes at least one activation condition; and

said authorization module is operative to approve said transaction approval request only if said transaction approval request satisfies said activation condition.

3. A computer system according to claim 2, wherein:

said activation condition comprises an activation date and time corresponding to an initial activation of said account; and

said authorization module is operative to approve said transaction approval request only if a purchase date and time contained in said transaction approval request falls after said activation date and time.

4. A computer system according to claim 2, wherein:

said activation data further includes at least one deactivation condition; and

said authorization module is operative to approve said transaction approval request only if said transaction approval request satisfies said activation condition and does not satisfy said deactivation condition.

5. A computer system according to claim 4, wherein:

said deactivation condition comprises a deactivation date and time determined by said account-holder; and

said authorization module is operative to accept said transaction approval request only if a purchase date and time contained in said transaction approval request falls after said initial activation date and time and before said deactivation date and time.

6. A computer system according to claim 5, wherein:

said activation data includes a second activation condition defining a reactivation date and time determined by said account-holder; and

said authorization module is operative to approve said transaction approval request only if a purchase date and time contained is said transaction approval request falls after said initial activation date and time and before said deactivation date and time or falls after said reactivation date and time.

7. A computer system according to claim 1, wherein:

said activation data further includes at least one automatic activation or deactivation criteria determined by said account holder; and

said authorization module is operative to automatically change the activation status of said account based on said automatic activation or deactivation criteria.

8. A computer system according to claim 7, wherein:

said automatic deactivation criteria facilitates deactivation of said account if a predetermined number of transaction approval requests are received within a given time period, said predetermined number of transaction approval requests determined by said account-holder; and

said authorization module is operative to deactivate said account by recording a date and time in said activation data corresponding to the date and time at which said predetermined number of transaction approval requests is reached.

9. A computer system according to claim 1, wherein said authorization module includes an interactive activation module operative to:

establish a connection with said account-holder;

authenticate said account-holder; and

receive instructions from said account-holder to modify said activation data.

10. A computer system according to claim 9, wherein said interactive activation module is operative to communicate with said account-holder via telephone.

11. A computer system according to claim 9, wherein said interactive activation module is further operative to store said instructions received from said account-holder.

12. A computer system according to claim 11, wherein said interactive activation module is further operative to store the date and time said instructions were received from said account-holder.

13. A computer system according to claim 1, wherein:

said code further includes an account-holder communications module operative to facilitate a separate connection with said account-holder for verifying said transaction approval request, and

an authorization module is further operative to transmit an approval to said merchant only if said transaction approval request is verified by said account-holder.

14. A computer system according to claim 1, wherein:

said data further includes at least one pre-verification criteria associated with said account-holder;

said authorization module is further operative to, if said account associated with said account-holder is not deactivated, compare said transaction approval request with said at least one pre-verification criteria, and to automatically verify said transaction approval request without verifying said transaction approval request with said account-holder if said at least one pro-verification criteria is satisfied.

15. A computer system according to claim 1, wherein said user is said account-holder.

16. In a computer system, a method for facilitating commercial transactions between a user with account information and a merchant, said method comprising:

receiving deactivation instructions from an account-holder to temporarily deactivate an account associated with said account-holder and with said account information;

receiving reactivation instructions from said account-holder to temporarily activate said account, said reactivation instructions being received in a communication separate from and subsequent to receipt of said deactivation instructions;

receiving additional deactivation instructions from said account-holder to again temporarily deactivate said account, said additional deactivation instructions being received in a communication separate from and subsequent to receipt of said reactivation instructions;

receiving a transaction approval request from said merchant;

determining whether said account was temporarily deactivated at a time associated with said transaction approval request; and

denying said transaction approval request if said account was temporarily deactivated at said time associated with said transaction approval request;

whereby said account-holder can deactivate said account between each transaction by

activating said account in anticipation of a commercial transaction between said user and said merchant, thereby facilitating approval of said transaction approval request;

deactivating said account following said approval of said transaction approval request, thereby preventing approval of subsequent transaction approval requests; and

reactivating said account in anticipation of a subsequent commercial transaction by said user, thereby facilitating the approval of a transaction approval request associated with said subsequent commercial transaction.

17. A method according to claim 16, further comprising storing said deactivation instructions.

18. A method according to claim 17, wherein said step of storing said deactivation instructions includes storing the date and time said deactivation instructions were received from said account holder.

19. A method according to claim 18, wherein:

said step of determining whether said account was temporarily deactivated includes comparing a purchase date and time included in said transaction approval request with said date and time that said deactivation instructions were received; and

said step of denying said transaction approval request includes denying said transaction approval request if said purchase date and time is after said date and time said deactivation instructions were received.

20. An electronically readable medium having code embodied therein for causing an electronic device to perform the method of claim 19.

21. An electronically readable medium having code embodied therein for causing an electronic device to perform the method of claim 18.

22. An electronically readable medium having code embodied therein for causing an electronic device to perform the method of claim 17.

23. A method according to claim 16, further comprising storing said reactivation instructions.

24. A method according to claim 23, wherein said step of storing said reactivation instructions includes storing the date and time said reactivation instructions were received from said account holder.

25. A method according to claim 24, further comprising:

receiving another transaction approval request from another merchant;

determining whether said account-holder has temporarily reactivated said account; and

approving said transaction approval request from said another merchant only if said account has been temporarily reactivated.

26. A method according to claim 25, wherein:

said step of determining whether said account-holder has temporarily reactivated said account includes comparing a purchase date and time included in said transaction approval request with said date and time tat said reactivation instructions were received; and

said step of approving said transaction approval request includes approving said transaction approval request if said purchase date and time is after said date and time said reactivation instructions were received.

27. An electronically readable medium having code embodied therein for causing an electronic device to perform the method of claim 26.

28. An electronically readable medium having code embodied therein for causing an electronic device to perform the method of claim 25.

29. An electronically readable medium having code embodied therein for causing an electronic device to perform the method of claim 24.

30. An electronically readable medium having code embodied therein for causing an electronic device to perform the method of claim 23.

31. A method according to claim 16, further comprising:

storing at least one automatic deactivation criteria associated with said account-holder; and

automatically temporarily deactivating said account associated with said account-holder when said at least one deactivation criteria is met.

32. A method according to claim 31, wherein:

said at least one deactivation criteria includes a predetermined number of commercial transactions; and

said step of automatically temporarily deactivating said account includes deactivating said account after the receipt of said predetermined number of commercial transactions.

33. A method according to claim 32, wherein said predetermined number of commercial transactions is one.

34. An electronically readable medium having code embodied therein for causing an electronic device to perform the method of claim 33.

35. An electronically readable medium having code embodied therein for causing an electronic device to perform the method of claim 32.

36. An electronically readable medium having code embodied therein for causing an electronic device to perform the method of claim 31.

37. A method according to claim 16, wherein said step of receiving instructions from said account-holder includes receiving said instructions via telephone.

38. An electronically readable medium having code embodied therein for causing an electronic device to perform the method of claim 37.

39. An electronically readable medium having code embodied therein for causing an electronic device to perform the method of claim 16.

40. A method according to claim 16, wherein said user is said account-holder.

41. An electronically readable medium having code embodied therein for causing an electronic device to perform the method of claim 40.