Method and device for making secure transactions

• US 20030195842A1
• Filed: 04/15/2003
• Published: 10/16/2003
• Est. Priority Date: 04/15/2002
• Status: Abandoned Application

• Current Assignee: Kenneth Reece
• Original Assignee: Kenneth Reece
• Inventors: Reece, Kenneth
• Application Number:
  US10/413,847
• Publication Number:
  US 20030195842A1
• Time in Patent Office: Days
• 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 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• 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 20/385 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 20/40145 Biometric identity checks
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G07F 7/1008 Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system

Abstract

A system and device is described, that allows a user to use the existing credit card processing infrastructure to make a secure stored value transaction over a network. A data storage media read/write device is used to deduct stored value from a user'"'"'s data storage media and optionally transfer said stored value over a network to a financial institution, a service provider or a transaction processor. After the deduction of stored value has been completed a limited-use credit card number is provided to the user for use over a network such as the Internet. The limited-use credit card number is complying with the industry standards for credit card numbers and it has a limited life span and/or a limited spending limit corresponding to the amount of the stored value transaction optionally less a transaction fee. Because the limited-use credit card number is only good for the purchase that it was intended for when the user requested to make a secure payment, the risk of credit card fraud is greatly reduced. The financial institution can optionally allow the limited-use credit card number to be used for more than one purchase over a longer period of time than a few minutes. The present invention, while not limited to electronic commerce transactions using a stored value card, is especially suited for smart card payments over communication networks, without requiring payees to invest in smart card processing infrastructure or signing up for smart card payment processing services.

Claims

1. A method for making electronic transactions comprising the steps of:

deducting stored value from a data storage media;

providing a limited-use credit card number

2. A method according to claim 1 further comprising:

transferring said deducted stored value over a network to a service provider

3. A method according to claim 1 wherein said transaction is conducted over a network.

4. A method according to claim 3 wherein said network is selected from a group comprising:

Internet;

Cable TV networks;

Satellite networks;

Telephone networks;

Cell phone networks;

Wireless networks;

AOL;

Compuserve;

Corporate intranets;

Other proprietary networks;

Other public networks;

5. A method according to claim 3 wherein said data storage media is selected from a group comprising:

Bar code card;

CD-ROM;

Citizen card;

Compact Disc;

Compact Flash card;

Contact smart card;

Contact-less smart card;

DVD;

Floppy disks;

Hard disks;

IC cards;

Loyalty program card;

Magnetic stripe card;

Memory chip;

Memory module;

Memory stick;

Mini disk;

Payment card;

PC cards;

Phone card;

RAM module;

SIM card;

Micro SIM card;

Smart Media card;

Stored value card;

Tapes;

Zip disks;

Access cards;

Election cards;

Electronic books;

Identification cards;

USB dongle

Token devices

Cell phones

6. A method according to claim 1 wherein said data storage media is selected from a group comprising:

Bar code card;

CD-ROM;

Citizen card;

Compact Disc;

Compact Flash card;

Contact smart card;

Contact-less smart card;

DVD;

Floppy disks;

Hard disks;

IC cards;

Loyalty program card;

Magnetic stripe card;

Memory chip;

Memory module;

Memory stick;

Mini disk;

Payment card;

PC cards;

Phone card;

RAM module;

SIM card;

Micro SIM card;

Smart Media card;

Stored value card;

Tapes;

Zip disks;

Access cards;

Election cards;

Electronic books;

Identification cards;

USB dongle

Token devices

Cell phones

7. A method according to claim 1 wherein said limited-use credit card number is provided by means selected from a group comprising:

transferring said limited-use credit card number over a communication network;

providing means for generating said limited-use credit card number at the user end;

releasing a limited-use credit card number that is stored in a data storage media;

releasing a limited-use credit card number that is stored in a data storage media read/write device;

8. A device for making stored value transactions which comprises:

means for writing/reading information to/from data storage media;

means for deducting a stored value from a data storage media;

means for receiving a limited-use credit card number;

means for providing said limited-use credit card number to a third party;

9. A device according to claim 8 further comprising

means for transferring said deducted stored value to a payee;

10. A device according to claim 8 wherein said data storage media is selected from a group comprising:

Bar code card;

CD-ROM;

Citizen card;

Compact Disc;

Compact Flash card;

Contact smart card;

Contact-less smart card;

DVD;

Floppy disks;

Hard disks;

IC cards;

Loyalty program card;

Magnetic stripe card;

Memory chip;

Memory module;

Memory stick;

Mini disk;

Payment card;

PC cards;

Phone card;

RAM module;

SIM card;

Micro SIM card;

Smart Media card;

Stored value card;

Tapes;

Zip disks;

Access cards;

Election cards;

Electronic books;

Identification cards;

USB dongle

Token devices

Cell phones