Limited use PIN system and method

• US 7,472,827 B2
• Filed: 10/07/2004
• Issued: 01/06/2009
• 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:
  US10/711,827
• Publication Number:
  US 20060076400A1
• Time in Patent Office: 1,552 Days
• Field of Search: 235379-3825, 705/35, 705/39, 705/40, 705/44, 705/26, 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 facilitating a transaction, comprising:

identifying a primary account having an associated account number;

receiving from at least one of;

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

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

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 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 associated with one of the primary account and the limited use PIN are not satisfied.

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

3. The method of claim 2, further comprising associating the conditions-of-use parameters with the limited use PIN.

4. 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.

5. The method of claim 4, wherein said 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.

6. The method of claim 5, wherein the conditions of use parameters comprise a notification response, wherein the notification response comprise notifying a third party whenever the limited use PIN is used.

7. The method of claim 5, wherein said steps of determining if conditions of use associated with the primary account and limited use PIN are satisfied, comprises determining if at least one of the following conditions of use 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.

8. 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.

9. The method of claim 8, further comprising the steps of:

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.

10. The method of claim 9, 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.

11. The method of claim 10, further comprising the step of receiving from the second party a settlement request for payment of a transaction involving the limited use PIN wherein the second party is paid when the limited use PIN is valid.

12. A method of claim 11, 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 number and forwards the resulting accounts receivable file to an accounts receivable system to generate the first party billing statement.

13. A method for facilitating a transaction comprising the steps of

registering with a card provider to use a transaction system;

logging-in to the card provider'"'"'s transaction system by providing authenticating information, and causing said card provider to verify that a first party is a registered and authorized user;

designating a transaction account as a primary account, wherein said primary account is a non-currency based account and is associated with an account number;

causing at least one of;

an RFID transponder and a smartcard to generate a limited use PIN;

causing said limited use PIN to be sent to said card provider, wherein said card provider associates said limited use PIN with said designated primary account;

selecting conditions of use parameters to be associated with the limited use PIN;

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

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

receiving the limited use PIN from the card provider;

providing the account number and limited use PIN to a second party to facilitate a transaction.

14. The method of claim 13, further comprising the step of defining conditions of use parameters to be associated with the limited use PIN.

15. The method of claim 14, wherein the steps occur online.

16. The method of claim 15, wherein said primary account is associated with an electronic line of credit system.

17. The method of claim 16, further comprising the step of disputing a charge for a transaction involving a limited use PIN , and causing the card provider to charge back the charge to the second party.

18. The method of claim 17, wherein the step of generating the limited use PIN comprises

receiving a primary account number from the first party to initiate a transaction;

sending the primary account number to a card provider during a card authorization process, requesting that the card provider generate and return a limited use PIN that is associated with the primary account number; and

receiving from the card provider the limited use PIN associated with the primary account, wherein the limited use PIN is then used to facilitate a transaction settlement.

19. The method of claim 18, wherein the step of generating the limited use PIN comprises

receiving a primary account number from a first party to initiate a transaction;

sending the primary account number to a card provider, requesting that the card provider generate and return the limited use PIN that is associated with the primary account number;

receiving from the card provider the limited use PIN associated with the primary account, wherein the limited use PIN is then used to facilitate a transaction settlement; and

purging the primary account number from the second party'"'"'s records and replacing with the associated limited use PIN.

20. The method of claim 19, wherein the step of generating the limited use PIN comprises:

receiving a primary account number from a first party to initiate a transaction;

sending the primary account number to a card provider, requesting that the card provider generate and return information that is associated with the primary account number;

receiving from the card provider information associated with the primary account, wherein the information is then used to facilitate a transaction settlement; and

purging the primary account number from the second party'"'"'s records and replacing with the associated information.

21. The method of claim 20, wherein said primary account is a line of credit account.