Method for allowing a user to customize use of a payment card that generates a different payment card number for multiple transactions

• US 6,609,654 B1
• Filed: 09/21/2000
• Issued: 08/26/2003
• Est. Priority Date: 05/15/2000
• Status: Active Grant

• Current Assignee: Privasys Incorporated
• Original Assignee: Privasys Incorporated
• Inventors: Wong, Jacob Y., Anderson, Roy L., Bryant, William R. Jr.
• Primary Examiner(s): Lee, Michael G.
• Assistant Examiner(s): PAIK, STEVEN SANGYUL
• Application Number:
  US09/667,161
• Time in Patent Office: 1,069 Days
• Field of Search: 235/379, 235/380, 705/39, 705/44, 705/26
• US Class Current: 235/379
• CPC Class Codes: G06K 19/06196 Constructional details
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/341 Active cards, i.e. cards including their own processing means, e.g. including an IC or chip
• CPC Class Codes: G06Q 20/3415 Cards acting autonomously as pay-media
• CPC Class Codes: G06Q 20/3576 Multiple memory zones on card
• CPC Class Codes: G06Q 20/4093 Monitoring of device authentication
• 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 user can customize use of a payment card, which can be an electronic card, by selecting either a first or a second user key as a selected user key. The selected user key is entered into a card number generator that uses it and a user sequence number to generate a user payment card number that differs for each transaction through use of an algorithm. Multiple payment card transactions can be handled differently depending upon which user key is chosen as the selected user key. Different user keys can be used for different accounts, different types of transactions, or to classify the transactions. A user can receive one bill, or multiple bills. Different levels of privacy can be accorded to transactions that use different user keys. A user may pay the issuer for increased security, or the user may be paid by the issuer to allow transaction data to be distributed to third parties.

Claims

1. A method for allowing a user to customize use of a payment card, comprising the steps of:

providing the user with a card number generator;

allowing the user to choose one of a plurality of user keys as a selected user key;

entering the selected user key into the card number generator;

generating a user payment card number from the card number generator in accordance with an algorithm that uses the selected user key and a user sequence number to generate the user payment card number; and

changing the user sequence number;

wherein the user payment card number is comprised of a set of fixed variables and a set of variable variables;

wherein the algorithm generates a first set of variable variables for a first user sequence number when the selected user key is a first key of the plurality of user keys and a second set of variable variables for the first user sequence number when the selected user key is a second key of the plurality of user keys; and

wherein the algorithm will generate a third set of variable variables for a second user sequence number when the selected user key is the first key of the plurality of user keys.

2. The method as recited in claim 1, wherein the set of fixed variables will be the same whether the algorithm uses the first key or the second key of the plurality of user keys.

3. The method as recited in claim 1, wherein the set of fixed variables will be different if the algorithm uses the second key instead of the first key of the plurality of user keys.

4. The method as recited in claim 1, wherein the user payment card number is further comprised of a check sum variable.

5. The method as recited in claim 4, wherein the user payment card number is a fixed number of digits.

6. The method as recited in claim 1, wherein the card number generator is included within an electronic payment card.

7. A method for implementing an anonymous face to face payment card transaction between a user and a merchant that allows the user to customize use of a payment card, comprising the steps of:

establishing a user account between a credit source and the user which is associated with a fictitious account name, a user account number, a first user key, a second user key and a user settlement mechanism through which the user can pay the credit source for charges and fees billed to the user account;

providing the user with an electronic card that is comprised of;

a card base;

a storage medium affixed to the card that can be read by a card reader;

a computer affixed to the card;

an input mechanism for providing input to the computer; and

a power source for supplying power to the computer;

wherein the electronic card has a fictitious account name stored in a memory device accessible by the computer, the computer is capable of causing data to be stored in the storage medium and the electronic card is sized such that a standard magnetic stripe reader can read the magnetic storage medium; and

completing a face to face credit card transaction between the user and the merchant in which the user is charged a monetary value by the merchant, comprising the following steps;

allowing the user to choose either the first user key or the second user key as the selected user key for the transaction;

entering the selected user key into the input mechanism;

executing an algorithm by the computer that uses the selected user key as an input variable to generate a valid personal charge number;

reading the valid personal charge number and the fictitious account name by the card reader;

sending the monetary value, the valid personal charge number and the fictitious account name to a credit approval center that verifies that the valid personal charge number is valid for the fictitious account name and approves the face to face credit card transaction;

sending an approval of the transaction from the credit approval center to the merchant; and

billing the user for the transaction through the user settlement mechanism.

8. The method as recited in claim 7, wherein the method of billing the user will vary depending upon whether the selected user key is the first user key or the second user key.

9. A method for implementing an anonymous Mail Order Telephone Order (“

MOTO”

) credit card transaction between a user and a merchant that allows the user to customize use of a payment card, comprising the steps of;

establishing a user account between a credit source and the user which is associated with a fictitious account name, a user account number, a first user key, a second user key and a user settlement mechanism through which the user can pay the credit source for charges and fees billed to the user account;

providing the user with an electronic card that is comprised of;

a card base;

a storage medium affixed to the card that can be read by a card reader;

a computer affixed to the card;

an input mechanism for providing input to the computer;

a display controlled by the computer; and

a power source for supplying power to the computer;

wherein the electronic card has a fictitious account name stored in a memory device accessible by the computer, the computer is capable of causing data to be stored in the storage medium and the electronic card is sized such that a standard magnetic stripe reader can read the magnetic storage medium;

completing a MOTO credit card transaction between the user and the merchant in which the user is charged a monetary value by the merchant, comprising the following steps;

allowing the user to selected either the first user key or the second user key as a selected user key;

entering the selected user key into the input mechanism;

executing an algorithm by the computer that uses the selected user key to generate a valid personal charge number;

visually reading the valid personal charge number from the display;

providing the valid personal charge number and the fictitious account name to the merchant;

sending the monetary value, the valid personal charge number and the fictitious account name to a credit approval center that verifies that the valid personal charge number is valid for the fictitious account name and approves the MOTO credit card transaction;

sending an approval of the transaction from the credit approval center to the merchant; and

billing the user for the transaction through the user settlement mechanism.

10. The method as recited in claim 9, wherein the method of billing the user will vary depending upon whether the selected user key is the first user key or the second user key.

11. A method for providing multiple secure transactions between a first entity and at least one additional entity, comprising the steps of:

(1) generating a customer one-time unique purchase order number (“

Coupon”

) for the first entity by the following steps;

(a) allowing a user to choose either a first user key or a second user key as a selected user key;

(b) combining the selected user key with a customer permutation variable that is correlated with a customer sequence number to form a customer permutated user key;

(c) using a customer random number generator to generate a customer user insertion key that is correlated with the customer sequence number; and

(d) generating a Coupon by inserting the permutated user key into a user account number in accordance with an algorithm that uses the customer user insertion key;

(2) transferring the Coupon and a first entity identifier to a second entity;

(3) transferring the Coupon and the first entity identifier from the second entity to a money source;

(4) creating a first sequential set of the money source having a first preselected number of money source Coupons for the first entity by the following steps;

(a) combining the first user key with a first money source permutation variable that is correlated with a first money source sequence number to form a first money source permutated user key;

(b) using a first money source random number generator to generate a first money source user insertion key that is correlated with the first money source sequence number;

(c) generating a first money source Coupon from the user account number by inserting the first money source permutated user key into the user account number in accordance with the algorithm that uses the money source user insertion key, wherein the first money source Coupon is correlated with the first money source sequence number and stored in the first sequential set, said first money source Coupon being identical to the Coupon when the customer permutation variable and the first money source permutation variable are identical and the selected key is the first user key;

(d) changing the first money source sequence number; and

(e) repeating steps (a) through (d) as needed so that the first sequential set has the first preselected number of money source Coupons;

(5) creating a second sequential set of the money source having a second preselected number of money source Coupons for the first entity by the following steps;

(a) combining the second user key with a second money source permutation variable that is correlated with a second money source sequence number to form a second money source permutated user key;

(b) using a second money source random number generator to generate a second money source user insertion key that is correlated with the second money source sequence number;

(c) generating a second money source Coupon from the user account number by inserting the second money source permutated user key into the user account number in accordance with the algorithm that uses the money source user insertion key, wherein the second money source Coupon is correlated with the second money source sequence number and stored in the second sequential set, said second money source Coupon being identical to the Coupon when the customer permutation variable and the second money source permutation variable are identical and the selected key is the second user key;

(d) changing the second money source sequence number; and

(e) repeating steps (a) through (d) as needed so that the second sequential set has the second preselected number of money source Coupons;

(6) verifying that the Coupon is valid for the first entity by

(a) either confirming that it is identical to a matching money source Coupon contained within the first or the second sequential set, or

(b) confirming that is identical to a first or a second matching money source Coupon contained in a recent history file that contains one or more first or second money source Coupons deleted from the sequential set;

(7) deleting the matching money source Coupon and, if the matching money source Coupon was contained in the first or the second sequential set, deleting all earlier created money source Coupons from the first and the second sequential sets;

(8) changing the customer sequence number; and

(9) repeating steps (2) through (8).

12. A method for generating customer one-time unique purchase order numbers (“

Coupons”

), comprising the steps of;

(1) allowing a user to select either a first user key or a second user key as a selected user key;

(2) combining the selected user key with a permutation variable that is correlated with a sequence number to form a permutated user key;

(3) using a random number generator to generate a user insertion key that is correlated with the sequence number;

(4) executing an algorithm that uses the permutated user key and the user insertion key as input variables to form a Coupon that is correlated with the sequence number;

(5) changing the sequence number; and

(6) repeating steps (1) through (5) at least once.

13. A method for conducting payment card transactions in which a user of the payment card can customize use of a payment card, comprising the steps of:

(1) establishing a first and a second handling option between a money source and the user;

(2) providing the user with a card number generator;

(3) completing a plurality of payment card transactions between the user and a second entity within a time period in accordance with the following steps;

(a) allowing the user to choose a first user key or a second user key as a selected user key;

(b) entering the selected user key into the card number generator;

(c) generating a user payment card number from the card number generator in accordance with an algorithm that uses the selected user key and a user sequence number to generate the user payment card number;

(d) transferring the user payment card number and a first entity identifier to the second entity; and

(e) transferring the user payment card number, the first entity identifier and a monetary value from the second entity to the money source that verifies that the payment card number is valid for the first entity identifier and approves the payment card transaction;

(f) changing the user sequence number; and

(g) repeating steps (a) through (f) at least once within the time period, each of the plurality of payment card transactions having a new user payment card number; and

(4) billing the user for the plurality of payment card transactions,

wherein the money source uses the first handling option for any of the plurality of payment card transactions in which the selected user key is the first user key and the second handling option for any of the plurality of payment card transactions in which the selected user key is the second user key.

14. The method as recited in claim 13, wherein each new user payment card number is comprised of a set of fixed variables and a set of variable variables;

wherein the algorithm will generate a first set of variable variables for a first user sequence number when the selected user key is the first user key and a second set of variable variables for the first user sequence number when the selected user key is the second user key; and

wherein the algorithm will generate a third set of variable variables for a second user sequence number when the selected user key is the first key.

15. The method as recited in claim 14, wherein the set of fixed variables will be the same whether the algorithm uses the first user key or the second user key.

16. The method as recited in claim 14, wherein the set of fixed variables will be different if the algorithm uses the second user key instead of the first user key.

17. The method as recited in claim 14, wherein the card number generator is included within an electronic payment card.

18. The method as recited in claim 17, wherein the electronic payment card is comprised of:

a card base;

a storage medium affixed to the card that can be read by a card reader;

a computer affixed to the card;

an input mechanism for providing input to the computer;

a display controlled by the computer; and

a power source for supplying power to the computer;

wherein the electronic card has an account name stored in a memory device accessible by the computer, the computer is capable of causing data to be stored in the storage medium and the electronic card is sized such that a standard magnetic stripe reader can read the magnetic storage medium.

19. The method as recited in claim 17, wherein the electronic payment card is comprised of:

a card base;

a computer affixed to the card;

a keypad for providing input to the computer, the keypad having ten numeric keys and at least one special function key that are touch-activated;

a magnetic storage medium affixed to the card that can be read by a standard magnetic stripe reader;

an encoder controlled by the computer for generating a data packet that is stored in a designated portion of the magnetic storage medium; and

a power source for supplying power to the computer and the encoder;

wherein the electronic card is sized such that the magnetic storage medium can be read by a standard magnetic stripe reader.

20. The method as recited in claim 13, wherein the first and the second handling options are mechanisms to bill two separate accounts.

21. The method as recited in claim 20, wherein the user is sent a single bill for charges to the two separate accounts.

22. The method as recited in claim 21, wherein one of the accounts is established with a first money source and the second account is established with a second money source that is different from the first money source.

23. The method as recited in claim 20, wherein one of the accounts is a credit account and the second account is a debit account.

24. The method as recited in claim 20, wherein the user is sent a first bill for the first account and a separate bill for the second account.

25. The method as recited in claim 13, wherein the first and the second handling options are a first and a second mechanism for dealing with distribution of information concerning the plurality of payment card transactions.

26. The method as recited in claim 25, wherein the first mechanism restricts the distribution from the money source to a third party of information relating to any payment card transaction in which the user payment card number was generated by use of the first user key.

27. The method as recited in claim 25, wherein the first mechanism restricts the distribution from the money source to the second entity of personal information of the user relating to any payment card transaction in which the user payment card number was generated by use of the first user key.

28. The method as recited in claim 26, wherein the user provides the money source with consideration for use of the first mechanism.

29. The method as recited in claim 25, wherein the second mechanism permits the distribution from the money source to a third party of information relating to any payment card transaction in which the user payment card number was generated by use of the second user key.

30. The method as recited in claim 29, wherein the second mechanism permits the distribution from the money source to the second entity of personal information of the user relating to any payment card transaction in which the user payment card number was generated by use of the second user key.

31. The method as recited in claim 29, wherein the money source provides the user with consideration for use of the second mechanism.

32. The method as recited in claim 13, wherein the first and the second handling options provide a mechanism for classifying the nature of the plurality of payment card transactions.

33. The method as recited in claim 32, wherein the first handling option is used for business transactions and the second handling option is used for personal transactions.

34. The method as recited in claim 13, wherein the first and the second handling options provide a mechanism for identifying either a first user or a second user as the user.

35. The method as recited in claim 34, wherein approval of a payment card transaction for the first user is subject to different restrictions than approval of a payment card transaction for the second user.

36. The method as recited in claim 13, wherein the first and the second handling options provide a mechanism for controlling what information is reported about the plurality of payment card transactions in a billing statement.