Method and apparatus for preauthorizing credit card type transactions

• US 6,052,675 A
• Filed: 04/21/1998
• Issued: 04/18/2000
• Est. Priority Date: 04/21/1998
• Status: Expired due to Term

• Current Assignee: Citicorp Holdings Incorporated (Citigroup Incorporated)
• Original Assignee: AT&T Corporation (AT&T, Inc.)
• Inventors: Checchio, Robert Anthony
• Primary Examiner(s): Stamber, Eric W.
• Application Number:
  US09/063,654
• Time in Patent Office: 728 Days
• Field of Search: 705/40, 705/44, 705/1, 705/16, 705/17, 705/18, 705/39, 705/42, 902/3, 902/4, 902/5
• 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 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• 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 20/403 Solvency checks
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02

Abstract

The method and apparatus for pre-authorizing transactions includes providing a communications device to a vendor and a credit card owner. The credit card owner initiates a credit card transaction by communicating to a credit card company data base, and storing therein, a distinguishing piece of information that characterizes a specific transaction to be made by an authorized user of the credit card at a later time. The information is accepted as "network data" in the data base only if a correct personal identification code (PIC) is used with the communication. The "network data" will serve to later authorize that specific transaction. The credit card owner or other authorized user can then only make that specific transaction with the credit card. Because the transaction is pre-authorized, the vendor does not need to see or transmit a PIC. In addition, if the credit card is lost or stolen, it cannot be used because all sales using the credit card must be pre-authorized using the confidential PIC.

Claims

1. A method for authorizing a transaction by an authorized user, comprising:

prior to initiating the transaction, storing a pre-set personal identification code for an authorized user in an evaluation system;

providing an authorized user with the pre-set personal identification code;

receiving, in the evaluation system, a first personal identification code which is transmitted to the evaluation system at the request of a person who may or may not be an authorized user;

preauthorizing the transaction when the first personal identification code corresponds to the pre-set personal identification code stored in the evaluation system; and

receiving and storing, in the evaluation system, authorized transaction information in a request;

receiving an identification from the authorized user at a vendor;

receiving a contact from the vendor based on the identification supplied to the vendor after preauthorization;

receiving, in the evaluation system, vendor transaction information of the vendor from the vendor via the contact; and

authorizing the transaction when the vendor transaction information corresponds to the authorized transaction information.

2. The method of claim 1, further comprising:

producing a billing statement when the vendor transaction information corresponds to the authorized transaction information.

3. The method of claim 1, further comprising:

transmitting, to a display device at the location of the vendor, information indicating that the transaction is authorized when the vendor transaction information corresponds to the authorized transaction information, and information indicating that the transaction is not authorized when the vendor transaction information does not correspond to the authorized transaction information.

4. The method of claim 1, further comprising:

transmitting, to an authorization device at the location of the vendor, authorization for the transaction when the vendor transaction information corresponds to the authorized transaction information.

5. The method of claim 1, further comprising:

transmitting, to a display device at the location of the vendor, authorization information when the vendor transaction information corresponds to the authorized transaction information.

6. The method of claim 1, wherein the transaction is a credit card purchase.

7. A method for conducting a transaction by an authorized user, comprising:

storing a pre-set personal identification code for a principal authorized user in an evaluation system;

providing the principal authorized user with the pre-set personal identification code;

receiving, in the evaluation system, a user personal identification;

comparing the user personal identification code with the pre-set personal identification code;

storing in the evaluation system, when the user personal identification code corresponds to the pre-set personal identification code, user transaction information;

receiving, in the evaluation system, at least one of a vendor transaction information and a consumer personal identification code;

receiving an identification from the authorized user at a vendor;

receiving a contact from the vendor based on the identification supplied to the vendor; and

conducting the transaction with the vendor when at least one of the user transaction information stored in the evaluation system or the pre-set personal identification code corresponds to at least one of the vendor transaction information and consumer personal identification code, respectively.

8. The method of claim 7, wherein the user transaction information includes at least one of a sales amount, a vendor identification, a date and a secondary user identification.

9. The method of claim 7, wherein the transaction is a credit card purchase.

10. The method of claim 7, further comprising:

producing a billing statement when at least one of the user transaction information stored in the evaluation system and the pre-set personal identification code corresponds to at least one of the vendor transaction information and consumer personal identification code, respectively.

11. The method of claim 7, further comprising:

transmitting, to a display device at the location of the vendor, information indicating that the transaction is authorized when at least one of the user transaction information stored in the evaluation system and the pre-set personal identification code corresponds to at least one of the vendor transaction information and consumer personal identification code, respectively; and

transmitting, to the display device, information indicating that the transaction is not authorized when at least one of the user transaction information stored in the evaluation system and the pre-set personal identification code does not correspond to at least one of the vendor transaction information and consumer personal identification code, respectively.

12. The method of claim 7, further comprising:

transmitting, to an authorization device at the location of the vendor, authorization for the transaction when at least one of the user transaction information stored in the evaluation system and the pre-set personal identification code corresponds to at least one of the vendor transaction information and consumer personal identification code, respectively.

13. The method of claim 7, wherein the evaluation system comprises a computer.

14. A method for permitting a transaction by an authorized user, comprising:

preauthorizing in an evaluation system a request for the transaction of the authorized user for a vendor;

supplying the vendor with an identification provided by the authorized user;

receiving in the evaluation system after preauthorization a contact from the vendor for authorization of the transaction based on the identification received by the vendor; and

authorizing in the evaluation system the transaction in a response to the vendor contact.

15. The method of claim 14, further comprising:

receiving first vendor information from the authorized user with the request; and

receiving second vendor information from the vendor when the vendor contacts the evaluation system.

16. The method of claim 15, further comprising:

transmitting to a display device, at a location of the vendor, authorization information when the second vendor information corresponds to the first vendor information.

17. The method of claim 15, further comprising:

transmitting to an authorization device at a location of the vendor, authorization for the transaction when the second vendor information corresponds to the first vendor information.

18. The method of claim 15, wherein the second vendor information includes at least one of a sales amount, vendor identification code, a vendor name, and a secondary user identification.

19. The method of claim 15, further comprising:

producing a billing statement when the second vendor information corresponds to the first vendor information.

20. The method of claim 15, further comprising:

storing a pre-set personal identification code for an authorized user in the evaluation system;

providing an authorized user with the pre-set personal identification code;

receiving, in the evaluation system, a user personal identification code;

preauthorizing the transaction when the user personal identification code corresponds to the pre-set personal identification code stored in the evaluation system; and

receiving and storing, in the evaluation system, the first vendor information when the user personal identification code corresponds to the pre-set personal identification code.

21. The method of claim 14, wherein the identification includes a credit card number.

22. The method of claim 14, wherein the evaluation system comprises a credit card company computer.

23. The method of claim 14, wherein the transaction is a credit card purchase.

24. An apparatus for authorizing a transaction by an authorized user comprising:

a memory; and

an evaluation system that includes the memory, the evaluation system preauthorizing a request of a principal authorized user for the transaction, receiving, after preauthorization, a contact from a vendor based on an identification received by the vendor from the authorized user, and authorizing the transaction in a response to the vendor contact.

25. The apparatus of claim 24, wherein the request includes a first vendor information and the evaluation system receives a second vendor information from the vendor via the contact.

26. The apparatus of claim 25 wherein the evaluation system transmits to an authorization device at a location of the vendor, authorization for the transaction when the second vendor information corresponds to the first vendor information.

27. The apparatus of claim 25, wherein the second vendor information includes at least one of a sales amount, a vendor identification code, a date, and a merchandise code.

28. The apparatus of claim 24, wherein the transaction is a credit card purchase.