Credit authorization system and method

• US 7,752,135 B2
• Filed: 01/16/2002
• Issued: 07/06/2010
• Est. Priority Date: 01/16/2002
• Status: Active Grant

• Current Assignee: Toshiba Global Commerce Solutions Holdings Corporation (Toshiba Corporation)
• Original Assignee: International Business Machines Corporation
• Inventors: Dutta, Rabindranath, Paolini, Michael A., Brown, Michael Wayne, Smith, Newton James Jr.
• Primary Examiner(s): Patel; Jagdish N
• Assistant Examiner(s): Bartley; Kenneth
• Application Number:
  US10/046,997
• Publication Number:
  US 20030135463A1
• Time in Patent Office: 3,093 Days
• Field of Search: 705/16, 705/17, 705/35, 705/39, 705/44, 705/67, 902/22, 379/207.12, 379/207.13, 726/4, 726/5, 726/26, 726/27, 726/30
• US Class Current: 705/44
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/322 Aspects of commerce using mobile devices [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 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 20/425 using two different networks, one for transaction and one for security confirmation

Abstract

A system and method for preventing credit card fraud by comparing the location of a given transaction with the location of a predetermined communication device is provided.

Claims

1. A computer implemented method for authorizing transactions against an account for a transaction occurring over an Internet, the computer implemented method comprising:

associating an account holder with a set of communication devices;

storing, in a database by a central computer, a set of identification numbers corresponding to the set of communication devices for the account holder, wherein each communication device from the stored set of communication devices is adapted to determine and transmit a physical location of the each communication device;

determining, by at least one communication device of the set of communication devices, a physical location of the at least one communication device, wherein the physical location is based on a location of the account holder;

transmitting the physical location of the at least one communication device to the central computer;

receiving, by the central computer, a transaction request, wherein the transaction occurs on the Internet, and wherein the transaction request comprises an account number associated with the account holder and a merchant associated with the transaction;

responsive to receiving the transaction request, obtaining, by the central computer, a location of the merchant;

receiving, from the account holder, a unique character string associated with the account holder, wherein the unique character string is changeable at random by the account holder;

responsive to receiving the unique character string from the account holder, changing, by the central computer, the merchant location to the location of the account holder to form a changed merchant location;

comparing, by the central computer, the location of the at least one communication device with the changed merchant location to form an outcome; and

based on the outcome, authorizing the transaction request.

2. The computer-implemented method of claim 1, wherein comparing the location of the at least one communication device with the changed merchant location is performed by an account service provider.

3. The computer-implemented method of claim 1, wherein the each communication device from the set of communication devices comprise a global positioning system device.

4. The computer-implemented method of claim 1 wherein the set of corresponding identification numbers comprise a telephone number associated with each communication device.

5. The computer-implemented method of claim 1, wherein the single communication device is a mobile phone.

6. The computer-implemented method of claim 1, further comprising:

determining whether the transaction is within a predefined credit limit.

7. The computer-implemented method of claim 1, wherein the transaction occurring on the Internet is for goods or services.

8. A data processing system for authorizing transactions against an account for a transaction occurring over an Internet, the data processing system comprising:

a set of communication devices;

a central computer, the central computer comprising;

a memory; and

a processing unit;

a communication system linking the set of communication devices and the central computer, the data processing system adapted to;

associate an account holder with a set of communication devices;

store, in a database by the central computer, a set of identification numbers corresponding to the set of communication devices for the account holder, wherein each communication device from the stored set of communication devices is adapted to determine and transmit a physical location of the each communication device;

determine, by at least one communication device of the set of communication devices, a physical location of the at least one communication device, wherein the physical location is based on a location of the account holder;

transmit the physical location of the at least one communication device to the central computer;

receive, by the central computer, a transaction request, wherein the transaction occurs on the Internet, and wherein the transaction request comprises an account number associated with the account holder and a merchant associated with the transaction;

responsive to receiving the transaction request, obtain, by the central computer, a location of the merchant;

receive, from the account holder, a unique character string associated with the account holder, wherein the unique character string is changeable at random by the account holder;

responsive to receiving the unique character string from the account holder, change, by the central computer, the merchant location to the location of the account holder to form a changed merchant location;

compare, by the central computer, the location of the at least one communication device with the changed merchant location to form an outcome; and

based on the outcome, authorize the transaction request.

9. The data processing system of claim 8, wherein comparing the location of the at least one communication device with the changed merchant location is performed by an account service provider.

10. The data processing system of claim 8, wherein the each communication device from the set of communication devices comprise a global positioning system device.

11. The data processing system of claim 8, wherein the set of corresponding identification numbers comprises a telephone number associated with each communication device.

12. The data processing system of claim 8, wherein the single communication device is a mobile phone.

13. The data processing system of claim 8, further comprising:

determining whether the transaction is within a predefined credit limit.