System for facilitating a transaction

• US 7,835,960 B2
• Filed: 06/10/2004
• Issued: 11/16/2010
• Est. Priority Date: 03/07/2000
• 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: Bishop, Fred, Armes, David, Zoob, Jessica, Nambiar, Anant, Glazer, Elliot, Chow, Christina, Salow, Glen, Belt, Jan Nunney, Johnstone, David, Schwarz, William, Cunningham, Katie, Wittwer, Martin, Breck, Lydia
• Primary Examiner(s): Kramer, James A
• Assistant Examiner(s): Vezeris, James A
• Application Number:
  US10/709,978
• Publication Number:
  US 20040210449A1
• Time in Patent Office: 2,350 Days
• Field of Search: 705/35, 705/26, 705/39, 705/40, 705/64, 705/74
• US Class Current: 705/35
• CPC Class Codes: G06Q 10/04 Forecasting or optimisation specially adapted for administrative or management purposes, e.g. linear programming or "cutting stock problem" market predictions or forecasting for commercial activities G06Q30/0202
• CPC Class Codes: G06Q 20/00 Payment architectures, schemes or protocols apparatus for performing or posting payment transactions G07F7/08, G07F19/00; electronic cash registers G07G1/12
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/0855 involving a third party
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/14 specially adapted for billing systems
• CPC Class Codes: G06Q 20/327 Short range or proximity payments by means of M-devices
• CPC Class Codes: G06Q 20/346 Cards serving only as information carrier of service
• CPC Class Codes: G06Q 20/367 involving electronic purses or money safes
• CPC Class Codes: G06Q 20/3672 initialising or reloading thereof
• CPC Class Codes: G06Q 20/383 Anonymous user system
• 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: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G07C 9/28 the pass enabling tracking or indicating presence
• CPC Class Codes: G07C 9/29 the pass containing active electronic elements, e.g. smartcards
• CPC Class Codes: G07F 7/1008 Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system

Abstract

The present invention provides a system and method for facilitating a transaction using a secondary transaction number that is associated with a cardholder'"'"'s primary account. The cardholder provides the secondary transaction number, often with limited-use conditions associated therewith, to a merchant to facilitate a more secure and confident transaction.

Claims

1. A method for processing a transaction, the method comprising:

receiving, by a merchant and via a processor, an account number of a user;

submitting, by the merchant and via the processor, the account number to a provider of the account number and requesting authorization of the transaction;

requesting, by the merchant and via the processor, that the provider return a secondary transaction number (STN) in lieu of returning the account number;

receiving, from the provider and via the processor, an authorization record referencing the STN;

issuing, via the processor, a settlement request associated with the transaction, wherein the settlement request includes the STN and does not include the account number;

maintaining, by the merchant and via the processor, a record of the transaction; and

replacing the account number with the STN, wherein the record of the transaction includes the STN and the record of the transaction does not include the account number.

5. The method of claim 1, wherein in response to the authorization of the transaction, the secondary transaction number (STN) is automatically requested, by the merchant via the processor.

6. The method of claim 1, wherein the account number is a non-currency based account.

7. The method of claim 1, wherein the account number is associated with an electronic line-of-credit system.

8. The method of claim 1, further comprising the step of receiving a dispute of a charge associated with the transaction and causing the charge to be charged back to the merchant.

2. A method for processing a transaction, the method comprising:

receiving, from a merchant and via a processor, a transaction authorization request for the transaction, the authorization request comprising a primary account number associated with a primary account;

generating, via the processor, a secondary account number (STN) and associating the STN with the primary account, wherein the primary account number and STN are different;

receiving, from the merchant and via the processor, a request that a provider of the primary account return the STN in lieu of returning the primary account number;

sending, via the processor, to the merchant an authorization record referencing the STN, wherein the authorization record does not include the primary account number;

processing, via the processor, a settlement request associated with the transaction, wherein the settlement request includes the STN and does not include the primary account number;

receiving, from a first party and via the processor, a transaction dispute identifying the primary account number and relating to the transaction involving the STN;

retrieving, via the processor, transaction information from a database using the primary account number; and

initiating, via the processor, an inquiry, with a second party, that includes the STN, wherein the inquiry does not include the primary account number, and wherein the second party does not maintain a record of the primary account number.

3. The method of claim 2, further comprising the steps of:

determining if a valid approval code is associated with the STN; and

charging back to the second party an amount of the transaction, if a valid approval code is not associated with the STN.

4. The method of claim 2, further comprising the step of routing the transaction dispute to a predefined STN queue based at least in part on an industry type associated with the transaction.

9. The method of claim 2, wherein in response to authorization of the transaction, a STN is automatically generated, via the processor.

10. The method of claim 2, wherein the primary account number is a non-currency based account.

11. The method of claim 2, wherein the primary account number is associated with an electronic line-of-credit system.

12. A tangible computer-readable medium having stored thereon computer-executable instructions that, if executed by a processor, causes the processor to perform operations comprising:

receiving, by a merchant and via the processor, an account number of a user;

submitting, by the merchant and via the processor, the account number to a provider of the account number and requesting authorization of the transaction;

requesting, by the merchant and via the processor, that the provider return a secondary transaction number (STN) in lieu of returning the account number;

receiving, from the provider and via the processor, an authorization record referencing the STN;

issuing, via the processor, a settlement request associated with the transaction, wherein the settlement request includes the STN and does not include the account number;

maintaining, by the merchant and via the processor, a record of the transaction; and

replacing the account number with the STN, wherein the record of the transaction includes the STN and the record of the transaction does not include the account number.