Method and system to prevent fraudulent payment in credit/debit card transactions, and terminals therefor

• US 20050242173A1
• Filed: 05/24/2005
• Published: 11/03/2005
• Est. Priority Date: 03/14/2001
• Status: Active Grant

• Current Assignee: Maxell, Ltd.
• Original Assignee: Hitachi, Ltd.
• Inventors: Suzuki, Koji
• Granted Patent: US 7,104,444 B2
• Time in Patent Office: Days
• US Class Current: 235/380
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/023 the neutral party being a clearing house
• 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 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• CPC Class Codes: G06Q 20/322 Aspects of commerce using mobile devices [M-devices]
• CPC Class Codes: G06Q 20/3227 using secure elements embedded in M-devices
• 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 20/363 with the personal data of a user
• 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 20/4014 Identity check for transactions
• CPC Class Codes: G06Q 20/403 Solvency checks
• CPC Class Codes: G06Q 20/4037 Remote solvency checks
• CPC Class Codes: G06Q 20/425 using two different networks, one for transaction and one for security confirmation
• CPC Class Codes: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02
• CPC Class Codes: G07F 7/0866 by active credit-cards adapted therefor G07F7/1008 takes precedence
• CPC Class Codes: G07F 7/0886 the card reader being portable for interacting with a POS or ECR in realizing a payment transaction
• CPC Class Codes: G07F 7/1008 Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system
• CPC Class Codes: H04W 12/08 Access security
• CPC Class Codes: H04W 12/126 : Anti-theft arrangements, e.g. protection against subscriber identity module [SIM] cloning
• CPC Class Codes: H04W 4/02 : Services making use of location information
• CPC Class Codes: H04W 4/029 : Location-based management or tracking services

Abstract

The present invention enables secure, valid card payments in credit transactions to be performed, preventing fraudulent card use even in cases of loss or theft of a card or of information theft. During a transaction authorization process using a transaction terminal disposed in a credit transaction member store and connected with a host computer, user validation or credit administration is carried out by using a portable communication terminal to input to the host computer identity information which has been previously registered in the portable communication terminal and/or location information for the portable communication terminal.

Claims

1. A transaction authorization computer for processing credit card transactions, comprising:

a memory which stores information related to credit cards and identity-related information of portable communication terminals;

a receiver operable to receive an identification number of a credit card and identity-related information of a portable communication terminal transmitted by the portable communication terminal; and

a transaction processor which determines whether credit card use is allowable,

wherein the transaction processor determines credit card use is not allowable when identity-related information corresponding to the identity-related information received by the receiver is not stored in the memory or the receiver does not receive identity-related information even though the receiver received the identification number.

2. The transaction authorization computer according to claim 1, wherein the identity-related information is a telephone number of the portable communication terminal.

3. The transaction authorization computer according to claim 1, wherein the receiver receives location information relating to a current location of the portable communication terminal.

4. The transaction authorization computer according to claim 3, wherein the transaction processor determines whether credit card use is allowable based on the location information.

5. A portable communication terminal available for a validation of a credit card user comprising:

an input part which inputs an identification number of a credit card;

a memory which stores identity-related information of the portable communication terminal;

a transmitter which transmits the identification number inputted by the input part and the identity-related information stored in the memory to a transaction authorization computer; and

a receiver which receives a result of the validation from the transaction authorization computer.

6. The portable communication terminal according to claim 5, wherein the memory is a removable memory.

7. The portable communication terminal according to claim 5, wherein the identity-related information is a telephone number of the portable communication terminal.