Fraud prevention and replacement of credit/debit cards—lost, stolen, defective or fraudulently used

• US 8,805,736 B2
• Filed: 10/08/2009
• Issued: 08/12/2014
• Est. Priority Date: 03/08/2008
• Status: Expired due to Fees

• Current Assignee: Linda Malek-Aslanian, Stefan Melik-Aslanian
• Original Assignee: Linda Malek-Aslanian, Stefan Melik-Aslanian
• Inventors: Melik-Aslanian, Stefan, Malek-Aslanian, Linda
• Primary Examiner(s): Colbert, Ella
• Assistant Examiner(s): GREGG, MARY M
• Application Number:
  US12/575,692
• Publication Number:
  US 20100030677A1
• Time in Patent Office: 1,769 Days
• US Class Current: 705/38
• 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 20/24 Credit schemes, i.e. "pay after"
• CPC Class Codes: G06Q 20/341 Active cards, i.e. cards including their own processing means, e.g. including an IC or chip
• CPC Class Codes: G06Q 20/342 Cards defining paid or billed services or quantities
• CPC Class Codes: G06Q 20/347 Passive cards
• CPC Class Codes: G06Q 20/354 Card activation or deactivation
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G07F 7/025 by means, e.g. cards, providing billing information at the time of purchase, e.g. identification of seller or purchaser, quantity of goods delivered or to be delivered
• CPC Class Codes: G07F 7/12 Card verification

Abstract

A credit card security system method for preventing fraudulent use, comprising the steps of a credit card provider opening one account with two different card numbers, with a first “main credit card” and a second credit card for a spare. The main credit card is activated by the provider and the spare credit card remains “deactivated”. On a pre-set time basis the credit card provider will automatically upon notice to the customer, deactivate the main card and activate the spare card. If any suspicious or fraudulent transaction is detected by the credit card provider, the main credit card is deactivated. If the transaction is authorized, then the main credit card is re-activated. If the transaction is not authorized, the spare credit card is activated to be used as the main credit card. The credit card provider then replaces the deactivated credit card with a new number and sends a new credit card with the new credit card remaining deactivated.

Claims

1. A credit card use and security system method for use in preventing fraudulent use, the method comprising the steps of:

a) opening by a single individual a single account with a single financial institution, the single account with two different card numbers, with a first card number for a physical main credit card and a second card number for a physical spare credit card for the single individual, with both physical cards having pre-set expiration dates and being directly operatively linked to the single account and initially both are in a deactivated state;

b) the single individual receiving from the single financial institution credit card provider two deactivated physical credit cards with the pre-set expiration dates, the two physical credit cards comprising a first card designated as a main credit card, which is activated by the single financial institution credit card provider upon confirmation of receipt by the single individual and provided with a PIN to enable the main physical credit card, by entry of the PIN, to physically interact, with at least one of an ATM, for the disbursement of cash and a credit card reader for authorized payment, and a second card designated as a spare credit card, which remains deactivated, with the spare physical credit card being blocked from being activated for said interaction with the ATM, for cash disbursement, and credit card reader, for payment of a sales transaction, at all times while the main physical credit card is active for said interaction, whereby the main and spare physical credit cards are never able to be active at the same time;

c) the single financial institution credit card provider sends a notice to the single individual after a set period of time informing the single individual customer that the spare physical credit card will be activated and the physical main credit card will be deactivated at a set time period sufficient to give the single individual time to call the single financial institution card provider to confirm the physical spare card activation and physical main card deactivation;

d) when the single individual fails to call, both physical cards are deactivated until the single individual calls to confirm activation;

e) when the single individual calls the single financial institution credit card provider to confirm the activation and deactivation of the physical spare credit card and physical main credit card respectively as in paragraph c, the physical main credit card is deactivated, and optionally set as a new deactivated physical spare credit card and the original physical spare credit card, is activated, to become a new physical main credit card;

f) the single financial institution credit card provider repeats the process of paragraphs c through e until both physical cards expire at the respective pre-set expiration dates.

2. A credit card use and security system method comprising the steps of:

a) a single individual opening with a single financial institution credit card provider a single account with two different card numbers, with a first card number for a physical main credit card and a second card number for a physical spare credit card for the single individual and both physical cards being directly operatively linked to the single account and initially both are in a deactivated state;

b) the single financial institution credit card provider disbursing the physical card designated as a main credit card and the physical card designated as spare credit card, to the single individual, the physical main credit card is activated by the single financial institution credit card provider upon confirmation of receipt by the single individual and provided with a PIN to enable the physical main credit card, by entry of the PIN, to physically interact, with at least one of an ATM, for the disbursement of cash and a credit card reader for authorized payment, and the physical spare credit card remains deactivated, with the physical spare credit card being blocked from being activated for said interaction with the ATM, for cash disbursement, and credit card reader, for payment of a sales transaction, at all times while the physical main credit card is active for said interaction, whereby the physical main and spare credit cards are never able to be active at the same time;

c) when any suspicious or fraudulent transaction is detected by the single financial institution credit card provider, the physical main credit card is deactivated;

d) when the transaction is authorized by the single individual customer, then the physical main credit card is activated again;

e) when the transaction is not authorized by the single individual;

a. the physical spare credit card is activated to be used as the physical main credit card;

b. the single financial institution credit card provider then replaces the deactivated credit card as main credit card with a new number and sends a new credit card as new spare credit card to the single individual with the new credit card as new spare credit card remaining deactivated.

3. A credit card use and security system method comprising the steps of:

a) a single individual opening one account with two different card numbers with a single financial institution credit card provider, with a first card number for a physical main credit card and a second card number for a physical spare credit card for the single individual customer;

b) the single financial institution credit card provider disbursing a card designated as the physical main credit card and a card designated as the spare credit card, to the single individual, the physical main credit card is activated by the single financial institution credit card provider upon confirmation of receipt by the single individual and provided with a PIN to enable the physical main credit card, by entry of the PIN, to physically interact, with at least one of an ATM, for the disbursement of cash and a credit card reader for authorized payment, and the physical spare credit card remains deactivated, with the physical spare credit card being blocked from being activated for said interaction with the ATM, for cash disbursement, and credit card reader, for payment of a sales transaction, at all times while the physical main credit card is active for said interaction, whereby the physical main and spare credit cards are never able to be active at the same time;

c) when the physical main credit card is defective and cannot be used, the physical main credit card is deactivated and the physical spare credit card is activated to be used as the physical main credit card;

d) the single financial institution credit card provider then replaces the deactivated defective physical credit card as physical main credit card with a new number and sends a new physical credit card as new physical spare credit card to the single individual with the new physical credit card as new physical spare credit card remaining deactivated.