Secure electronic payment system and methods

• US 8,200,575 B2
• Filed: 10/11/2005
• Issued: 06/12/2012
• Est. Priority Date: 10/11/2005
• Status: Active Grant

• Current Assignee: III Holdings 1, LLC
• Original Assignee: Jose Andres Mares Urrutia, Juan Carlos Sepulveda Gonzalez De Candamo, Raul Armando Cordero Torres
• Inventors: Cordero Torres, Raul Armando, Gonzalez de Candamo, Juan Carlos Sepulveda, Mares Urrutia, Jose Andres
• Primary Examiner(s): Poinvil, Frantzy
• Application Number:
  US11/246,304
• Publication Number:
  US 20070083464A1
• Time in Patent Office: 2,436 Days
• Field of Search: 705 10- 44
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments

Abstract

The invention provides a system and method for ensuring secure payment transactions. The invention provides for a chargeable and dischargeable security (CDS) system that allows users/account holders to have greater control over access to their accounts. The CDS-system may include a CDS-instrument, such as a credit or debit card that can be charged with funds located in a first account and then discharged either automatically or manually so that the potential for fraud and misuse are significantly reduced.

Claims

1. A method of facilitating secure financial or point of sale transactions between at least one payer and one payee, comprising executing non-transitory software on a computer having a processor to perform the steps of:

establishing a first account, the first account having an associated first pin number;

establishing a second account, the second account having an associated second pin number;

providing a payment instrument configured to be charged and discharged which is linked and associated only with the second account;

transferring funds from the first account to the second account using the first pin number, the payment instrument being charged by the step of transferring funds; and

discharging the second account at a predetermined time interval after the step of transferring funds, the step of discharging including returning the funds from the second account to the first account.

2. The method according to claim 1, further comprising the step of establishing access rules governing access to the second account.

3. The method according to claim 2, wherein the step of establishing access rules includes at least one of selecting an amount of funds to be transferred to the second account and selecting a time at which the second account will automatically be discharged.

4. The method in accordance with claim 3, wherein the payment instrument is at least one of a credit card, a debit card, a check card, a gift card, a telephone card and a card for facilitating remissions.

5. The method in accordance with claim 3, wherein the payment instrument is a single use instrument.

6. The method in accordance with claim 3, wherein the payment instrument can be used in at least one of point of sale retail transactions, commercial transactions, on-line transactions and on-line auctions.

7. The method in accordance with claim 3, wherein the payment instrument is configured to allow the making of payments during the time when the second account is funded and is configured to disallow the making of payments when the second account is discharged.

8. The method in accordance with claim 3, wherein the second account is discharged automatically based upon the access rules.

9. The method in accordance with claim 3, wherein the second account is discharged manually utilizing the second pin number.

10. The method in accordance with claim 3, wherein the second pin number is required at the point of sale in order to configure the payment instrument to allow the making of payments.

11. The method according to claim 2, wherein the step of discharging the second account occurs automatically based upon the access rules.

12. The method according to claim 1, wherein the step of establishing the first account includes accessing a financial institution'"'"'s server to access an account application.

13. The method in accordance with claim 12, wherein the access rules includes at least one of an amount of funds to be transferred to the second account and a time at which the second account will automatically be discharged.

14. The method according to claim 1, wherein the step of establishing the second account includes accessing a financial institution'"'"'s server to access an account application.

15. The method according to claim 1, wherein the payment instrument is at least one of a credit card, a debit card, a check card, a gift card, a telephone card and a card for facilitating remissions.

16. The method according to claim 1, wherein the payment instrument is a single use instrument.

17. The method according to claim 1, wherein payment instrument can be used in at least one of point of sale retail transactions, commercial transactions, on-line transactions and on-line auctions.

18. The method according to claim 1, wherein the payment instrument is configured to allow the making of payments during the time when the second account is funded and configured to disallow the making of payments when the second account is discharged.

19. The method according to claim 1, wherein the step of discharging the second account can be performed manually utilizing the second pin number.

20. The method according to claim 1, wherein the second pin number is required at the point of sale in order to configure the payment instrument to allow the making of payments.

21. The method of claim 1 comprising the step of providing a server having a memory for hosting the first or second account information.

22. The method of claim 21 comprising the step of accessing the first or second account information hosted by the server by using a web browser.

23. The method of claim 1, wherein neither the second pin nor the first pin are used at the point of sale.

24. The method of claim 1, comprising the step of using the second pin to transfer money from the second account to the first account.

25. A computer implemented system connected to a network, said system comprising one or more computers for facilitating secure financial or point of sale transactions between at least one payer and one payee, and further comprising non-transitory software for causing the one or more computers to host:

a first account holding a payer'"'"'s funds accessible via the network;

a second account for receiving funds transferred from the first account;

said second account accessible via the network;

a first pin number for facilitating the transfer of funds from the first account to the second account;

a second pin number for facilitating the return of funds from the second account to the first account; and

a payment instrument configured to be charged and discharged, which is linked and associated only with the second account;

said payment instrument being charged and configured to allow transfer of funds when the funds reside in the second account and is discharged and configured to disallow transfer of funds when the funds do not reside in the second account.

26. The system for facilitating secure financial transactions in accordance to claim 25, further comprising access rules governing access to the second account.

27. The system of claim 25 comprising a server having a memory for hosting the first or second account.

28. The system of claim 27 comprising a web browser for interfacing with the server for accessing the first or second account.

29. The system of claim 25, wherein neither the second pin nor the first pin are used at the point of sale.

30. The system of claim 25, wherein the second pin is used for transferring money from the second account to the first account.

31. A computer implemented system for facilitating secure financial or point of sale transactions between at least one payer and one payee, comprising:

a computer having a processor and being configured to execute instructions embodied as non-transitory software;

a plurality of non-transitory software portions, wherein one software portion is configured as a financial services application for managing a first account having a first associated pin number and a second account having a second associated pin number;

a payment instrument configured to be charged and discharged that is configured to allow a charge when the second account is funded and linked and associated only with the second account;

a card application that governs transactions made with the payment instrument; and

one of said software portions configured to transfer funds from the first account to the second account using the first pin number, the payment instrument being charged by the step of transferring funds.

32. The system in accordance with claim 31, wherein the financial services application manages access to data relating to the first and second accounts, including account balances, deposits and withdrawals.

33. The system of claim 31 comprising a server having a memory for hosting the first or second account.

34. The system of claim 33 comprising a web browser for interfacing with the server for accessing the first or second account.

35. The system of claim 31, wherein neither the second pin nor the first pin are used at the point of sale.

36. The system of claim 31, wherein the second pin is used for transferring money from the second account to the first account.

37. A non-transitory software program product for facilitating secure on-line or point of sale transactions, the non-transitory software program product executing the steps of:

a computer having a processor and being configured to execute instructions embodied as the software program product;

a plurality of software portions, wherein one software portion is configured for receiving a request for establishing a first account, the first account having an associated first pin number;

one of said software portions is configured for receiving a request for establishing a second account, the second account having an associated second pin number;

one of said software portions is configured for receiving a request for the transfer of funds from the first account to the second account using the first pin number, the second account charging a payment instrument configured to be charged and discharged;

said payment instrument linked and associated only with the second account; and

one of said software portions is configured for receiving a request to discharge the second account at a predetermined time interval.

38. The non-transitory software program product of claim 37 comprising the step of processing the request for establishing a first account, by utilizing a server having a memory.

39. The non-transitory software program product of claim 38 comprising the step of accessing the first or second account information hosted by the server by using a web browser.

40. The non-transitory software program product of claim 37, wherein neither the second pin nor the first pin are used at the point of sale.

41. The non-transitory software program product of claim 37, comprising the step of using the second pin to transfer money from the second account to the first account.