CREDIT CARD SYSTEM AND METHOD HAVING ADDITIONAL FEATURES

• US 20140122340A1
• Filed: 01/08/2014
• Published: 05/01/2014
• Est. Priority Date: 03/25/1998
• Status: Abandoned Application

• Current Assignee: Orbis Patents Limited (Orbis Technology)
• Original Assignee: Orbis Patents Limited (Orbis Technology)
• Inventors: FLITCROFT, Daniel Ian, LYONS, Garry
• Application Number:
  US14/150,231
• Publication Number:
  US 20140122340A1
• Time in Patent Office: Days
• US Class Current: 705/44
• 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 20/04 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 20/16 Payments settled via telecommunication systems
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• CPC Class Codes: G06Q 20/28 Pre-payment schemes, e.g. "pay before"
• CPC Class Codes: G06Q 20/34 using cards, e.g. integrated circuit [IC] cards or magnetic cards
• CPC Class Codes: G06Q 20/342 Cards defining paid or billed services or quantities
• CPC Class Codes: G06Q 20/354 Card activation or deactivation
• CPC Class Codes: G06Q 20/3552 Downloading or loading of personalisation data
• CPC Class Codes: G06Q 20/357 Cards having a plurality of specified features
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• 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 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G07F 19/00 Complete banking systems; Coded card-freed arrangements adapted for dispensing or receiving monies or the like and posting such transactions to existing accounts, e.g. automatic teller machines data processing equipment for bank accounting G06Q40/02
• CPC Class Codes: G07F 19/2055 : Anti-skimming aspects at ATMs
• 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 7/08 : by coded identity card or credit card or other personal identification means without personal verification means G07F7/02
• 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: G07F 7/12 : Card verification
• CPC Class Codes: G07F 7/122 : Online card verification

Abstract

A credit card system is provided which has the added feature of providing additional limited use credit card numbers and/or cards. These numbers and/or cards can be used for a single or limited use transaction, thereby reducing the potential for fraudulent reuse of these numbers and/or cards. The credit card system finds application to “card remote” transactions such as by phone or Internet. Additionally, when a single use or limited use credit card is used for “card present” transactions, so called “skimming” fraud is eliminated. Various other features enhance the credit card system, which will allow secure trade without the use of elaborate encryption techniques. Methods for limiting, distributing and using a limited use card number, controlling the validity of a limited use credit card number, conducting a limited use credit card number transaction and providing remote access devices for accessing a limited use credit card number are also provided.

Claims

1. A method of implementing a transaction system using controlled payment numbers, the method comprising:

assigning, in a central processing system of a control payment number (CPN) issuer, a unique CPN to a user, the CPN constituting a payment instrument for a user in a financial transaction for at least one of goods and services;

receiving, from at least one funding entity, (i) identification of a plurality of pre-authorized merchants with which transactions using said CPN are permitted and (ii) a predefined allocated monetary amount;

associating each predefined allocation with a pre-authorized merchant such that each pre-authorized merchant is linked to a respective maximum monetary spending value;

issuing, by the central processing system of the CPN issuer, the unique CPN to the user;

receiving an authorization request from a merchant for a transaction conducted with the CPN, said authorization request including a transaction amount;

determining if the merchant is a pre-authorized merchant associated with the CPN;

when the merchant is a pre-authorized merchant, determining (i) if the transaction amount is within the maximum monetary spending value linked to the pre-authorized merchant and (ii) if the transaction complies with other CPN controls, where applicable; and

permitting the transaction process or denying said transaction based on said determination.

2. The method according to claim 1 wherein the other CPN controls include at least one of a CPN effective date and a CPN expiration date.

3. The method according to claim 1 wherein the maximum monetary spending value associated with one pre-authorized merchant differs from that of another pre-authorized merchant.

4. The method of claim 1, wherein the central processing system (i) receives predefined allocated monetary amounts from a plurality of funding entities and (ii) associates the predefined allocations from each of the plurality of funding entities with merchants having been pre-authorized by respective funding entities.

5. The method of claim 1, wherein when the central processing system receives predefined allocated monetary amounts from a plurality of funding entities, the method further comprises:

partitioning the CPN across multiple sets of controls, wherein each CPN partition is linked to a funding entity from the plurality of funding entities and has separate and distinct controls.

6. The method of claim 1, wherein the at least one funding entity is separate and distinct from the card user and the card issuer.

7. The method of claim 1, further comprising receiving limitations on use of the CPN from the user.

8. The method of claim 1 further comprising;

receiving, from the at least one funding entity, a reserve monetary amount that is not associated with any one pre-authorized merchant, wherein said reserve monetary amount accommodates overspill when a user exceeds a maximum spending value associated with a pre-authorized merchant.

9. The method of claim 1, wherein the allocated monetary amount may be modified by the at least one funding entity prior to an expiration date of the CPN.

10. The method of claim 1, wherein the CPN is issued to the user by at least one of (1) a financial transaction card bearing indicia of the CPN and (2) transmitting the CPN to an electronic device of the user.

11. The method of claim 1, further comprising linking, in a database of the CPN issuer, the unique CPN issued to the user with a master account number, wherein when a transaction amount exceeds the monetary spending value linked to a pre-authorized merchant, the monetary amount exceeding the maximum spending value is applied to the master account number linked to the CPN.

12. The method of claim 1 wherein when the transaction is authorized, a unique purchase order information is associated with the transaction and with the CPN.

13. The method of claim 1, wherein when the transaction is permitted to process, the method further comprises:

transmitting transaction information of the CPN to the issuer of the CPN for processing a master account number associated with the CPN.

14. A method of facilitating financial transactions between a user, using a controlled payment number, and at least one merchant, the method comprising:

assigning, in a central processing system of a control payment number (CPN) issuer, a unique CPN to a user;

associating the unique CPN to at least one master account number;

associating, by the central processing system, (i) a plurality of merchants, having been pre-authorized by a funding entity, with the CPN of the user and (ii) allocated funds, received from the funding entity, with each of the plurality of pre-authorized merchants, wherein each of the plurality of merchants is associated with a respective maximum spending amount;

receiving an authorization request from a merchant for a transaction conducted with the CPN, said authorization request including a transaction amount;

determining if the merchant is a merchant pre-authorized by the funding entity;

when the merchant is a pre-authorized merchant, and the transaction complies with other CPN controls, deducting the transaction amount from the maximum spending amount associated with the merchant while maintaining monetary balances associated with other pre-authorized merchants linked to the CPN.

15. The method of claim 14 wherein (i) the at least one master account number includes a master account number of the user and (ii) when the transaction amount exceeds the maximum spending amount associated with the merchant, the excess amount is processed against the master account number of the user associated with the CPN.

16. The method of claim 14 further comprising:

receiving, from the funding entity, a reserve monetary amount that is not associated with any one pre-authorized merchant, wherein when said transaction amount at a pre-authorized merchant exceeds the maximum spending amount associated therewith, the excess amount is deducted from said reserve monetary amount.

17. The method of claim 14, wherein the central processing system associates allocated funds, received from a plurality of different funding entities, with merchants pre-authorized by those different funding entities thereby enabling the user to use a single CPN for the allocated funds from the plurality of different funding entities.

18. The method of claim 14, further comprising receiving limitations on use of the CPN by the user.

19. The method of claim 14, wherein the CPN is issued to the user by at least one of (1) a financial transaction card bearing indicia of the CPN and (2) transmitting the CPN to an electronic device of the user.

20. A transaction system using controlled payment numbers comprising:

a database configured to store (i) a plurality of control payment numbers (CPNs) and (ii) information on users associated with the CPNs;

a receiving device configured to receive, from a plurality of funding entities, (i) identification of a plurality of pre-authorized merchants and (ii) a predefined allocated monetary amounts;

a processing device configured to;

associate, in the database, a CPN from the plurality of CPNs with (i) a plurality of pre-authorized merchants, as identified by the at least one funding entity, with which transactions using said CPN are permitted, and (ii) a predefined allocated monetary amount, wherein one pre-authorized merchant associated with the CPN is linked to a monetary spending value that is separate and distinct from that of another pre-authorized merchant associated with the CPN;

determine, upon receipt of an authorization request from a merchant for a transaction conducted with the CPN, if the merchant is one of the pre-authorized merchants associated with the CPN;

determine, when the merchant is a pre-authorized merchant, (i) if the transaction amount is within the maximum monetary spending value linked to the pre-authorized merchant and (ii) if the transaction complies with other CPN controls; and

permit the transaction process or deny the transaction.