SYSTEM AND METHOD FOR PERFORMING SECURE CREDIT CARD TRANSATIONS

• US 20110071945A1
• Filed: 10/12/2010
• Published: 03/24/2011
• Est. Priority Date: 01/15/1999
• Status: Active Grant

• Current Assignee: John D’Agostino
• Original Assignee: John D’Agostino
• Inventors: D'AGOSTINO, JOHN
• Granted Patent: US 8,036,988 B2
• Time in Patent Office: Days
• US Class Current: 705/44
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/0855 involving a third party
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• 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 30/0241 Advertisements

Abstract

A method and system of performing secure credit card purchases in the context of a remote commercial transaction, such as over the telephone, wherein only the customer, once generally deciding upon a product or service to be purchased, communicates with a custodial authorizing entity, such as a credit card company or issuing bank wherein such entity has previous knowledge of the credit card number as well as custodial control of other account parameters such as interest rate, payment history, available credit limit etc. The customer supplies the custodial authorizing entity with the account identification data such as the credit card number and a requested one of a possible plurality of predetermined payment categories which define the dollar amount for the purchase and specific, predetermined time parameters within which authorization by the custodial authorizing entity will remain in effect. The custodial authorizing entity then generates a transaction code which is communicated exclusively to the customer wherein the customer in turn communicates only the transaction code to the merchant instead of a credit card number. The transaction code is indicative of merchant identification, credit card account identification and a designated one of the plurality of predetermined payment categories.

Claims

1. A method of performing secure credit card purchases, said method comprising:

a) contacting a custodial authorizing entity having custodial responsibility of account parameters of a customer'"'"'s account that is used to make credit card purchases;

b) supplying said custodial authorizing entity with at least account identification data of said customer'"'"'s account;

c) defining at least one payment category to include at least limiting a number of transactions to one or more merchants, said one or more merchants limitation being included in said payment category prior to any particular merchant being identified as one of said one or more merchants;

d) designating a payment category

e) generating a transaction code by a processing computer of said custodial authorizing entity, said transaction code reflecting at least the limits of said designated payment category to make a purchase within said designated payment category;

f) communicating said transaction code to a merchant to consummate a purchase with defined purchase parameters;

g) verifying that said defined purchase parameters are within said designated payment category; and

h) providing authorization for said purchase so as to confirm at least that said defined purchase parameters are within said designated payment category and to authorize payment required to complete the purchase.

2. The method of claim 1 further comprising the step of designating at least one of said one or more merchants subsequent to generating said transaction code.

3. The method of claim 1 wherein said step of communicating the transaction code to a merchant to consummate said purchase within defined purchase parameters further comprises designation of said merchant as one of said one or more merchants.

4. The method of claim 1 wherein said step of generating said transaction code further comprises said customer obtaining said transaction code.

5. The method of claim 1 further comprising generating a transaction code which reflects at least one of a plurality of said payment categories.

6. The method of claim 1 further comprising defining at least one payment category to include amount parameters for a cost of one or more purchases.

7. The method of claim 1 further comprising defining at least one payment category to include time parameters during which the purchase can be completed.

8. The method of claim 1 further comprising defining at least one payment category to include limiting said transaction code to a single transaction for a purchase within a predetermined period of time.

9. The method of claim 1 further comprising defining at least one payment category to include limiting purchases to a single transaction at a maximum amount for purchase within a predetermined period of time.

10. The method of claim 1 further comprising defining at least one payment category to include limiting purchases to at least two purchases at a maximum total amount for items purchased within a predetermined time period.

11. The method of claim 1 further comprising defining at least one payment category to include using said transaction code for at least two purchases for a repeating transaction at a fixed amount payable at each of a fixed number of time intervals.

12. The method of claim 11 further comprising defining at least one payment category to include limiting purchases to said repeating transaction at said fixed amount payable at each of said fixed number of time intervals.

13. The method of claim 1 further comprising defining at least one payment category to include using said transaction code for a repeating transaction at a fixed amount payable at each of an unspecified number of time intervals.

14. The method of claim 1 further comprising defining at least one payment category to include limiting a repeating transaction to a maximum dollar amount.

15. The method of claim 1 further comprising defining at least one payment category to include limiting purchases to a limited time interval during which a purchase is permitted.

16. The method of claim 1 further comprising communicating said transaction code to the customer at the location of the merchant for use in person.

17. A method of performing secure credit card purchases, said method comprising:

a) identifying a pre-established account that is used to make credit card purchases;

b) selecting a predetermined payment category which limits a nature, of a series of subsequent purchases to one or more merchants, said one or more merchants limitation being included in said payment category prior to any particular merchant being identified as one of said one or more merchants;

c) generating a transaction code by a processing computer of a custodial authorizing entity of said pre-established account, said transaction code associated with at least said pre-established account and the limits of said selected payment category and different from said pre-established account;

d) communicating said transaction code to a merchant to consummate a purchase within defined purchase parameters;

e) verifying that said defined purchase parameters correspond to said selected payment category;

f) providing authorization for said purchase so as to confirm at least that said defined purchase parameters are within said selected payment category and to authorize payment required to complete the purchase; and

g) associating the purchase with said pre-established account.

18. The method of claim 17 wherein said step of verifying that said defined purchase parameters correspond to said selected payment category further identifies said merchant as one of said one or more merchants.

19. A method of performing secure credit card purchases, said method comprising the steps of:

a) identifying a pre-established account that is used to make credit card purchases;

b) selecting a pre-determined payment category which limits a nature of a subsequent purchase to one or more merchants, said one or more merchants limitation being included in said payment category prior to any particular merchant being identified as one of said one or more merchants;

c) generating a transaction code by a processing computer of a custodial authorizing entity of said pre-established account, said transaction code associated with at least said pre-established account and the limits of said selected payment category, and different from said pre-established account;

d) designating a merchant as one of said one or more merchants;

e) communicating said transaction code to said merchant to consummate a purchase within defined purchase parameters;

f) verifying that said defined purchase parameters correspond to said selected payment category;

g) providing authorization for said purchase so as to confirm at least that said defined purchase parameters are within said selected payment category and to authorize payment required to complete the purchase; and

h) associating the purchase with said pre-established account.

20. The method of claim 19 wherein said step of verifying that said defined purchase parameters correspond to said selected payment category further identifies said merchant as one of said one or more merchants.

21. A method for implementing a system for performing secure credit card purchases, the method comprising:

a) receiving account information from an account holder identifying an account that is used to make credit card purchases;

b) receiving a request from said account holder for a transaction code to make a purchase within a payment category that at least limits transactions to a single merchant, said single merchant limitation being included in said payment category prior to any particular merchant being identified as said single merchant;

c) generating a transaction code utilizing a processing computer of a custodial authorizing entity, said transaction code associated with said account and reflecting at least the limits of said payment category, to make a purchase within said payment category;

d) communicating said transaction code to said account holder;

e) receiving a request to authorize payment for a purchase using said transaction code;

f) authorizing payment for said purchase if said purchase is within said payment category.

22. A method for implementing a system for performing secure credit card purchases, the method comprising:

a) receiving account information from an account holder identifying an account that is used to make credit card purchases;

b) receiving a request from said account holder for a transaction code to make a purchase within a payment category that at least limits transactions to one or more merchants, said one or more merchants limitation being included in said payment category prior to any particular merchant being identified as one of said one or more merchants;

c) generating a transaction code utilizing a processing computer of a custodial authorizing entity, said transaction code associated with said account and reflecting at least the limits of said payment category, to make a purchase within said payment category;

d) communicating said transaction code to said account holder;

e) receiving a request to authorize payment for a purchase using said transaction code;

f) authorizing payment for said purchase if said purchase is within said payment category.