Limited use pin system and method

• US 7,448,538 B2
• Filed: 07/13/2007
• Issued: 11/11/2008
• 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:
  US11/777,396
• Publication Number:
  US 20070284434A1
• Time in Patent Office: 487 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 method for processing authorization requests in a card authorization system, comprising the steps of:

receiving transaction information from a second party for authorization, wherein the transaction information includes a limited use Personal Identification Number (PIN), wherein the limited use PIN is created by;

identifying a primary account having an associated account number;

receiving from at least one of;

an RFID transponder and a smartcard the limited use Personal Identification Number (PIN) that is configured to facilitate a transaction;

associating the limited use PIN with the primary account;

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;

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

processing 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;

returning 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

declining the authorization request if either the conditions of use parameters associated with the primary account and the limited use PIN are not satisfied.

2. The method of claim 1, wherein the step of issuing the limited use PIN to a first party to facilitate a transaction with a second party comprises configuring the limited use PIN to be immediately usable for facilitating the transaction.

3. The method of claim 1, further comprising allowing the first party to select and define conditions-of-use parameters, wherein the parameters place limits on how the limited use PIN may be used.

4. The method of claim 3, further comprising associating the conditions-of-use parameters with the limited use PIN.

5. The method of claim 3, further comprising the step of storing the condition of use parameters in one or more account database fields associated with the limited use PIN.

6. The method of claim 3, wherein the steps of selecting and defining the conditions of use parameters comprise selecting and defining 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.

7. The method of claim 1, wherein the primary account is a line of credit account.

8. The method of claim 1, further comprising:

receiving transaction information from the second party for authorization;

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

processing the transaction information with the card authorization system, wherein the card authorization system interfaces with the limited use PIN system to determine whether authorization is appropriate;

recognizing that the transaction information comprises a limited use PIN; and

retrieving account information that is associated with the limited use PIN.

9. The method of claim 8, further comprising:

determining whether the conditions of use parameters associated with the primary account are satisfied, wherein the conditions of use parameters associated with the primary account include an expiration date;

determining if the conditions of use parameters associated with the limited use PIN are satisfied;

returning 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

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

10. The method of claim 9, wherein the steps of determining whether conditions of use parameters associated with the primary account and limited use PIN are satisfied, comprises determining if at least one of the following conditions of use parameters are satisfied:

a limited use PIN credit limit, a limited use PIN account balance availability, a limited use PIN expiration date, a predetermined number of transactions before the limited use PIN is declined, limiting the use of a limited use PIN to a specified dollar amount per transaction, limiting the 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 the 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.

11. The method of claim 1, further comprising:

receiving transaction settlement information from the second party, wherein the transaction was facilitated using the limited use PIN;

identifying the transaction settlement information as a transaction involving the limited use PIN;

verifying that the limited use PIN is a valid number;

capturing the transaction settlement information in a financial capture system; and

causing the second party to be paid.

12. The method of claim 11, further comprising:

identifying the primary account that is associated with the limited use PIN;

replacing the limited use PIN with the primary account PIN number;

processing the transaction settlement information in an accounts receivable system; and

generating a billing statement that includes at least the primary account number.

13. The method of claim 12, further comprising the steps of comparing the transaction settlement information with conditions of use parameters associated with the limited use PIN to determine if the conditions of use have been satisfied.

14. The method of claim 13, further comprising the step of receiving from the second party a settlement request for payment of a transaction involving a limited use PIN;

wherein the second party is paid if the limited use PIN is valid.

15. A method of claim 14, further comprising the steps of:

routing the second party settlement request for payment to a financial capture system;

creating an accounts payable file and routing the accounts payable file to an accounts payable system for payment processing; and

creating an accounts receivable file and routing 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 the first party billing statement.

16. The method of claim 1, wherein the primary account is a non-currency account.

17. A method for generating a limited use Personal Identification Number (PIN) for facilitating a transaction, comprising the steps of:

generating, at a device, the limited use PIN associated with a primary account having an associated account number, wherein said device is at least one of;

an RFID transponder and a smartcard;

transmitting said limited use PIN to a host system, wherein said host system performs the steps of;

associating the limited use PIN with the primary account;

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;

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

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

processing the transaction information by determining whether the transaction information includes the limited use PIN and interfacing 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; and

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

returning 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

declining the authorization request if either the conditions of use parameters associated with the primary account and the limited use PIN are not satisfied.

18. A device for generating a limited use Personal Identification Number (PIN) for facilitating a transaction, said device configured to:

generate the limited use PIN associated with a primary account having an associated

account number, wherein said device is at least one of;

an RFID transponder and a smartcard;

transmit said limited use PIN to a host system, wherein said host system;

associates the limited use PIN with the primary account;

associates 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;

associates 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;

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

receives transaction information from the second party for authorization,

wherein the transaction information includes the limited use PIN;

processes the transaction information by determining whether the transaction information includes the limited use PIN and interfacing 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; and

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

returns 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

declines the authorization request if either the conditions of use parameters associated with the primary account and the limited use PIN are not satisfied.