System and method to monitor credit card transactions

• US 7,431,202 B1
• Filed: 03/16/2005
• Issued: 10/07/2008
• Est. Priority Date: 03/17/2004
• Status: Expired due to Fees

• Current Assignee: Clifford Anthony Meador, Lester Dean Moore
• Original Assignee: Clifford Anthony Meador, Lester Dean Moore
• Inventors: Meador, Clifford Anthony, Moore, Lester Dean
• Primary Examiner(s): Frech; Karl D.
• Application Number:
  US11/082,133
• Time in Patent Office: 1,301 Days
• Field of Search: 235/379, 235/380, 235/375, 705/26, 705/65, 705/67, 705/70, 705/75, 705/417
• US Class Current: 235/379
• CPC Class Codes: G06Q 20/322 Aspects of commerce using mobile devices [M-devices]
• CPC Class Codes: G06Q 20/3224 Transactions dependent on location of M-devices
• 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 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 20/403 Solvency checks

Abstract

A transaction verification system and method includes a central station coupled to receive transaction data from a plurality of transaction locations at which a person having an account identification document and a mobile communication device that is associated with the account identification document transacts business. If the central station receives a request for a transaction from a location that is consistent with normal usage of the account identification document, the central station approves the transaction. If the central station receives a request for a transaction from a location that is not consistent with normal usage of the account identification document the central station contacts the person through the mobile communication device and approves the transaction only if the person is authenticated using the mobile communication device. In one embodiment the mobile communication device is a cellular telephone that includes a GPS receiver and transmits location information to the central station and usage is considered normal if the location of the cellular telephone at the time of the transaction is within a determined area.

Claims

1. A method of transacting business comprising the acts of:

presenting an account identification document for the purpose of making a payment, the account identification document identifying an account through which the payment is to be made;

associating a mobile communication device with the account identification document;

determining the present location of the associated mobile communication device;

determining an area of use for the account identification document;

if the mobile communication device associated with the account identification document is within the determined area of use, approving use of the identified account for making the payment; and

if the mobile communication device associated with the account identification document is not within the determined area of use;

(1) calling the mobile communication device associated with the account identification document;

(2) attempting to obtain information through the associated mobile communication device verifying that an authorized person has presented the presented the account identification document for the purpose of making a payment; and

(3) approving use of the identified account for making the payment only if information is obtained through the associated mobile communication device that verifies that an authorized person has presented the account identification document for the purpose of making a payment.

2. A method of transacting business according to claim 1, wherein the account identification document is a credit card.

3. A method of transacting business according to claim 1, wherein the account identification document is a debit card.

4. A method of transacting business according to claim 1, wherein the mobile communication device includes a GPS receiver generating position information indicating the position of the mobile communication device and the act of determining the present location of the associated mobile communication device includes communication of the generated position information to a location that is remote from the mobile communication device.

5. A method of transacting business according to claim 1, wherein the mobile communication device is a cellular telephone.

6. A method of transacting business according to claim 4, wherein the mobile communication device is a cellular telephone.

7. A business transaction system comprising:

an account identification document that is associated with an account from which an amount of money associated with a transaction is to be paid;

a mobile communication device having a GPS receiver generating position information associated therewith;

a plurality of transaction stations generating transaction information including information identifying an account identification document in response a transaction request using an account identification document; and

a central station storing information associating the account identification document with a mobile communication device and storing transaction profile information from which a normal transaction profile associated with the account identification document can be determined, the central station receiving information identifying an account identification document from a transaction station at which a transaction is requested, receiving position information from the associated mobile communication device, the central station determining in response to the received position information and in response to the stored transaction profile information whether or not the requested transaction is consistent with a transaction profile associated with the account identification document, the central station authorizing the requested transaction if the requested transaction is consistent with a transaction profile associated with the account identification document, the central station attempting to authenticate the transaction using the mobile communication device and authorizing the transaction only if the transaction is successfully authenticated using the mobile communication device if the requested transaction is not consistent with a transaction profile associated with the account identification document.

8. A business transaction system according to claim 7 wherein the account identification document is a credit card.

9. A business transaction system according to claim 7 wherein the account identification document is a debit card.

10. A business transaction system according to claim 7 wherein the mobile communication device is a cellular telephone.

11. A business transaction system according to claim 7 wherein the central station includes a computer communicating with the transaction station at which a transaction is attempted and with the mobile communication device.

12. A method of transacting business using an account that may be used to make a payment, the method comprising the acts of:

storing account information in a database for each of a plurality of accounts, the account information stored for each of the accounts including information identifying the account and information identifying a communication device associated with the account;

receiving from a point of sale location transaction information identifying a transaction, the transaction information including information identifying a transaction account used to pay for the transaction, the transaction account being an account for which account information is stored in the database;

sending transaction information identifying the transaction to a communication device associated with the transaction account; and

approving the identified transaction in response to receipt of approval information received from the communication device.

13. A method of transacting business according to claim 12, wherein the transaction account is a credit account.

14. A method of transacting business according to claim 12, wherein the transaction account is a debit account.

15. A method of transacting business according to claim 12, wherein the communication device includes a wireless phone.

16. A method of transacting business according to claim 12, further comprising receiving position information indicating a position from the associated communication device and approving the transaction if the indicated position is within a determined area.

17. A method of transacting business according to claim 12, wherein the information identifying an account that is included with the transaction information received from a point of sale location includes an account number identifying the account.

18. A method of transacting business according to claim 12, further comprising storing in the database for each account a telephone number of a fraud department associated with the account;

and

sending the telephone number of the fraud department associated with the transaction account to the communication device in response to receipt of information from the communication device disapproving the transaction.

19. A method of transacting business according to claim 12, further comprising the act of storing the received transaction information in response to a request to store received from the communication device.

20. A method of transacting business according to claim 12, wherein the communication device provides a wireless connection to the internet and the act of sending transaction information further comprises sending transaction information through the internet.