Limited use pin system and method

• US 7,441,697 B2
• Filed: 06/07/2007
• Issued: 10/28/2008
• Est. Priority Date: 05/17/2004
• Status: Expired due to Fees

• Current Assignee: Liberty Peak Ventures, LLC (Dominion Harbor Enterprises, LLC)
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Fletcher, Christopher John
• Primary Examiner(s): Frech, Karl D
• Assistant Examiner(s): TAYLOR, APRIL ALICIA
• Application Number:
  US11/759,458
• Publication Number:
  US 20070228161A1
• Time in Patent Office: 509 Days
• Field of Search: 235379-382, 705/26, 705/35, 705/39, 705/44, 705/65, 705/67, 705/75
• US Class Current: 235/380
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• CPC Class Codes: G06Q 20/385 using an alias or single-use codes
• 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: G07F 7/10 together with a coded signal , e.g. in the form of personal identification information, like personal identification number [PIN] or biometric data

Abstract

The present invention facilitates transactions by providing a limited use PIN that is associated with a primary account and/or PIN number, wherein the limited use PIN is presented to the merchant to initiate a transaction. More particularly, the system involves the process of registering a user (if not already pre-registered) to participate in a transaction system; generating a limited use PIN and issuing this number to the user, where the user presents this number to a merchant to complete a sales transaction; the merchant processing this limited use PIN, where the number is typically presented to the credit issuer to facilitate authorization. Additionally, the limited use PIN may also carry with it certain limitations-on-use conditions, where the transaction is not authorized unless these conditions are met. In generating a limited use PIN, the issuer generates a random number and associates this number with the user'"'"'s primary charge account.

Claims

1. A host computer system for facilitating transactions comprising:

a user interface system configured to allow a first party to interact with the host computer system; and

,

a number generating mechanism, including an application server and a database, configured for receiving input from the user interface system, receiving a limited use Personal Identification Number (PIN) for the first party for use with a second party, wherein the limited use PIN is generated by at least one of;

an RFID device and a smartcard, associating a designated primary account with the limited use PIN, associating the limited use PIN with a notification response, wherein the notification response is associated with a notification response rule relating to who to notify if the limited use PIN is used, associating the limited use PIN with an emergency response, wherein the emergency response is associated with an emergency response rule relating to an emergency entity to notify if the limited use PIN is used, and issuing the limited use PIN to the first party to facilitate a transaction with a second party, wherein the limited use PIN is configured to be immediately usable for facilitating the transaction with the second party;

a number processing mechanism, including an application server and a database, configured to;

receive transaction information from the second party for authorization, wherein the transaction information includes the limited use PIN;

forward the transaction information to a card authorization system for authorization processing;

process the transaction information with the card authorization system, wherein the card authorization system determines whether the transaction information includes the limited use PIN and interfaces with a limited use PIN system to determine whether authorization is appropriate, wherein authorization determination includes;

receiving account information associated with the account number; and

determining whether conditions-of-use parameters associated with the limited use PIN are satisfied, the conditions-of-use parameters defining at least a predetermined restriction on use of the limited use PIN;

acquiring, from a database, the notification response rule corresponding to the limited use PIN;

issuing said the notification response in accordance with said notification response rule;

acquiring, from the database, the emergency response rule corresponding to the limited use PIN;

issuing the emergency response in accordance with the emergency response rule; and

return an appropriate approval code to the second party, if conditions of use parameters associated with the limited use PIN and the primary account are satisfied; and

decline the authorization request if either the conditions associated with at least one of the primary account and the limited use PIN are not satisfied.

2. The host computer system of claim 1, further comprising a settlement processing mechanism including at least a financial capture system configured for capturing transaction information relating to use of the limited use PIN, an accounts receivable system for billing the first party and an accounts payable system for paying the second party.

3. A host system for facilitating transactions, said host system configured to:

identify a primary account;

receive a limited use Personal Identification Number (PIN) that is configured to facilitate a transaction, wherein the limited use PIN is generated by at least one of;

an RFID device and a smartcard;

associate the limited use PIN with the primary account;

associate the limited use PIN with a notification response, wherein the notification response is associated with an notification response rule relating to who to notify if the limited use PIN is used;

associate the limited use PIN with an emergency response, wherein the emergency response is associated with an emergency response rule relating to an emergency entity to notify if the limited use PIN is used;

issue the limited use PIN to a first party to facilitate a transaction with a second party;

receive transaction information from the second party for authorization, wherein the transaction information includes the limited use PIN;

forward the transaction information to a card authorization system for authorization processing;

process the transaction information with the card authorization system, wherein the card authorization system determines whether the transaction information includes the limited use PIN and interfaces with a limited use PIN system to determine whether authorization is appropriate, wherein authorization determination includes;

receiving account information associated with the account number;

determining whether conditions-of-use parameters associated with the limited use PIN are satisfied, the conditions-of-use parameters defining at least a predetermined restriction on use of the limited use PIN;

acquiring, from a database, the notification response rule corresponding to the limited use PIN;

issuing said the notification response in accordance with said notification response rule;

acquiring, from the database, the emergency response rule corresponding to the limited use PIN;

issuing the emergency response in accordance with the emergency response rule; and

return an appropriate approval code to the second party, if conditions of use parameters associated with the limited use PIN and the primary account are satisfied; and

decline the authorization request if either the conditions associated with at least one of the primary account and the limited use PIN are not satisfied.

4. The host system of claim 3, wherein the host system is further configured to cause the limited use PIN to be immediately usable for facilitating the transaction.

5. The host system of claim 3, wherein the host system further comprises a conditions-of-use parameter engine which is configured to allow the first party to at least one of:

select and define conditions-of-use parameters, wherein the conditions-of-use parameters place limits on how the limited use PIN may be used.

6. The host system of claim 3, wherein the host system further comprises a conditions-of-use parameter engine which is configured to establish conditions-of-use parameters, wherein the parameters place limits on how the limited use PIN may be used.

7. The host system of claim 3, wherein the host system further comprises a conditions-of-use parameter engine which is configured to establish conditions-of-use parameters, wherein the parameters place limits on how the limited use PIN may be used and the conditions of use parameters comprise at least one of:

a limited use PIN credit limit, limiting use of a limited use PIN on account balance availability, a limited use PIN expiration date, a predetermined number of transactions before the limited use PIN is declined, limiting use of a limited use PIN to a specified dollar amount per transaction, limiting use of a limited use PIN to a total dollar amount for pro-designated number of transactions, whether a limited use PIN can be used to earn loyalty points, whether a limited use PIN can be used to redeem loyalty points, limiting use of a limited use PIN to a maximum dollar amount per month, use of a limited use PIN for a specified merchant only, restricting use of a limited use PIN to a specified user, and specifying that all online transactions be performed using only a limited use PIN.

8. The host system of claim 3, wherein the host system further comprises a notification engine, wherein the notification engine is configured to notify at least one of:

a first party, a second party and a third party whenever the limited use PIN is used.

9. The host system of claim 3, wherein the host system further comprises an authorization system configured to authorize transaction information, wherein the transaction information includes the limited use PIN, and retrieve account information that is associated with the limited use PIN.

10. The host system of claim 3, wherein the host system further comprises a conditions-of-use parameter engine which is configured to determine whether a conditions-of-use parameter is satisfied before authorizing transaction information.

11. The host system of claim 3, wherein the host system further comprises an settlement system configured to identify the primary account that is associated with the limited use PIN, replace the limited use PIN with the primary account number, process the transaction settlement information in an accounts receivable system;

and generate a billing statement that includes the primary account number.

12. An authorization system for processing authorization requests in a transaction system, the host system configured to:

receive a limited use Personal Identification Number (PIN) from a first party to facilitate a transaction with a second party, wherein said limited use PIN is generated by at least one of;

an RFID device and a smartcard and, wherein the limited use PIN is configured to be immediately usable for facilitating the transaction with the second party;

associate the limited use PIN with a notification response, wherein the notification response is associated with a notification response rule relating to who to notify if the limited use PIN is used;

associate the limited use PIN with an emergency response, wherein the emergency response is associated with an emergency response rule relating to an emergency entity to notify if the limited use PIN is used;

receive transaction information from the second party for authorization, wherein the transaction information includes the limited use PIN;

forward the transaction information to a card authorization system for authorization processing;

process the transaction information with the card authorization system, wherein the card authorization system determines whether the transaction information includes the limited use PIN and interfaces with a limited use PIN system to determine whether authorization is appropriate, wherein authorization determination includes;

receiving account information associated with the account number;

determining whether conditions-of-use parameters associated with the limited use PIN are satisfied, the conditions-of-use parameters defining at least a predetermined restriction on use of the limited use PIN;

acquiring, from a database, the notification response rule corresponding to the limited use PIN;

issuing said the notification response in accordance with said notification response rule;

acquiring, from the database, the emergency response rule corresponding to the limited use PIN;

issuing the emergency response in accordance with the emergency response rule;

return an appropriate approval code to the second party, if conditions of use parameters associated with the limited use PIN and the primary account are satisfied; and

decline the authorization request if either the conditions associated with at least one of the primary account and the limited use PIN are not satisfied.

13. The authorization system of claim 12, further configured to:

receive a second party settlement request for payment of a transaction involving the limited use PIN by a first party, wherein the second party is paid if the limited use PIN is valid;

route the second party settlement request with the limited use PIN to an issuing system for authorization;

create an accounts payable file; and

,

route the accounts payable file to an accounts payable system for payment processing of the second party based on the second party settlement request.

14. The settlement system of claim 13 further configured to create an accounts receivable file and route the accounts receivable file to a service that retrieves the associated primary account number and replaces the limited use PIN with the primary account PIN number and forwards the resulting accounts receivable file to an accounts receivable system to generate billing statement for the first party.

15. A user interface system configured to allow a first party to:

register with a card provider to use a transaction system;

receive a log-in to the transaction system by providing authenticating information;

receive a verification from the transaction system that the user is authorized;

designate a transaction account as a primary account;

submit a limited use Personal Identification Number (PIN) to the card provider, wherein said limited use PIN is generated by at least one of;

an RFID device and a smartcard and, wherein the card provider associates the limited use PIN with the primary account;

associate the limited use PIN with a notification response, wherein the notification response is associated with a notification response rule relating to who to notify if the limited use PIN is used;

associate the limited use PIN with an emergency response, wherein the emergency response is associated with an emergency response rule relating to an emergency entity to notify if the limited use PIN is used;

submit the limited use PIN to a second party to facilitate at least one of;

a payment and a receipt of cash, wherein said second party is configured to;

receive transaction information from the second party for authorization, wherein the transaction information includes the limited use PIN;

forward the transaction information to a card authorization system for authorization processing;

process the transaction information with the card authorization system, wherein the card authorization system determines whether the transaction information includes the limited use PIN and interfaces with a limited use PIN system to determine whether authorization is appropriate, wherein authorization determination includes;

receiving account information associated with the account number; and

determining whether conditions-of-use parameters associated with the limited use PIN are satisfied, the conditions-of-use parameters defining at least a predetermined restriction on use of the limited use PIN;

acquiring, from a database, the notification response rule corresponding to the limited use PIN;

issuing said the notification response in accordance with said notification response rule;

acquiring, from the database, the emergency response rule corresponding to the limited use PIN;

issuing the emergency response in accordance with the emergency response rule; and

return an appropriate approval code to the second party, if conditions of use parameters associated with the limited use PIN and the primary account are satisfied; and

decline the authorization request if either the conditions associated with at least one of the primary account and the limited use PIN are not satisfied.

16. The user interface system of claim 15, further configured to at least one of:

select and define conditions of use parameters to be associated with the limited use PIN.

17. The user interface system of claim 15, wherein said primary account is a non-currency based account.

18. The user interface system of claim 15, wherein said primary account associated with an electronic line of credit system.