Credit card system and method

• US 6,636,833 B1
• Filed: 01/22/1999
• Issued: 10/21/2003
• Est. Priority Date: 03/25/1998
• Status: Expired due to Term

• Current Assignee: Orbis Patents Limited (Orbis Technology)
• Original Assignee: OBIS Patents Limited
• Inventors: Flitcroft, Daniel I., OʼDonnell, Graham
• Primary Examiner(s): Kemper, M.
• Application Number:
  US09/235,836
• Time in Patent Office: 1,733 Days
• Field of Search: 705/1, 705/35, 705/38, 705/39, 705/41, 705/26, 705/44, 235/379, 235/380
• US Class Current: 705/64
• 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 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 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.

Claims

1. A credit card system, comprising:

means for maintaining a pool of credit card numbers which share identical formatting;

means for assigning at least one credit card number from said pool of credit card numbers to be a master credit card number;

means for assigning at least one credit card number from said pool of credit card numbers to be a limited-use credit card number which is deactivated upon a use-triggered condition which occurs subsequent to assignment of said at least one credit card number;

means for associating said master credit card number with said limited-use credit card number, while ensuring that said master credit card number cannot be discovered on the basis of said limited-use credit card number;

means for determining whether to deactivate the limited-use credit card number when said limited-use credit card number was used to perform a transaction, and for generating a deactivation command in response thereto, wherein said means for determining whether to deactivate the limited-use credit card number determines whether a limited-use event pertaining to the use of the limited-use credit card number has occurred, and if so, generates said deactivation command when said limited-use event has occurred; and

means for deactivating the limited-use credit card number based on the deactivation command wherein said limited-use credit card number is valid for a predetermined number of payments for a transaction with a single merchant.

2. The credit system of claim 1, wherein use of the limited-use credit card number is valid for transactions with a specific merchant as determined by a first use.

18. The credit card system of claim 2, wherein means for issuing the limited-use credit card number comprises:

means for printing out an indication of the limited-use credit card number for delivery to a user.

3. A credit card system for performing a credit card transaction based on a limited-use credit card number, wherein said limited-use credit card number includes identical formatting to a master credit card number and is associated with said master credit card number, said system comprising:

transaction means for entering a transaction on the basis of said limited-use credit card number to generate a transaction message; and

processing means for receiving said transaction message and processing said transaction, including;

means for authorizing or denying said transaction;

means for determining whether to deactivate the limited-use credit card number when said limited-use credit card number was used to perform the transaction, and for generating a deactivation command in response thereto, wherein said means for determining whether to deactivate the limited-use credit card number determines whether a limited-use event pertaining to the use of the limited-use credit card number has occurred, and if so, generates said deactivation command when said limited-use event has occurred; and

means for deactivating the limited-use credit card number based on the deactivation command wherein said limited-use credit card number is valid for a predetermined number of payments for a transaction with a single merchant.

4. The credit system of claim 3, wherein use of the limited-use credit card number is valid for transactions with a specific merchant as determined by a first use.

5. A method for implementing a credit card system, the method comprising:

maintaining a pool of credit card numbers which share identical formatting;

assigning at least one credit card number from the pool of credit card numbers to be a limited-use credit card number which is deactivated upon a use-triggered condition which occurs subsequent to assignment of the at least one credit card number;

associating a master account number with the limited-use credit card number, while ensuring that the master account number cannot be discovered on the basis of the limited-use credit card number;

determining whether to deactivate the limited-use credit card number when the limited-use credit card number was used to perform a transaction, and for generating a deactivation command in response thereto, wherein the determining step of whether to deactivate the limited-use credit card number determines whether a limited-use event pertaining to the use of the limited-use credit card number has occurred, and if so, generates the deactivation command when the limited-use event has occurred; and

deactivating the limited-use credit card number based on the deactivation command wherein the limited-use credit card number is valid for a number of payments for a transaction with a single merchant.

6. The method of claim 5, wherein use of the limited-use credit card number is valid for transactions with a specific merchant as determined by a first use.

7. A method for performing a credit card transaction based on a limited-use credit card number, wherein the limited-use credit card number includes identical formatting to a master credit card number and is associated with the master credit card number, the system comprising:

entering into a transaction on the basis of the limited-use credit card number to generate a transaction message;

receiving the transaction message; and

processing the transaction, wherein the processing step comprises;

authorizing or denying the transaction;

determining whether to deactivate the limited-use credit card number when the limited-use credit card number was used to perform the transaction;

generating a deactivation command in response thereto, wherein determining whether to deactivate the limited-use credit card number determines whether a limited-use event pertaining to the use of the limited-use credit card number has occurred, and if so, generates the deactivation command when the limited-use event has occurred; and

deactivating the limited-use credit card number based on the deactivation command,

wherein the limited-use credit card number is valid for a number of payments for a transaction with a single merchant.

8. The method of claim 7, wherein use of the limited-use credit card number is valid for transactions with a specific merchant as determined by a first use.

9. A credit card system comprising:

means for allocating a limited-use credit card number from a pool of credit card numbers which share identical formatting;

means for associating the limited-use credit card number with a customer account number and a set of conditions, wherein the means for associating prevents the customer account number from being discovered from the limited-use credit card number;

means for issuing the limited-use credit card number;

means for detecting a transaction using the limited-use credit card number, wherein use of the limited-use credit card number is valid for transactions with a specific merchant as determined by a first use; and

means for processing the transaction in accordance with the set of conditions associated with limited-use credit card number.

10. The credit card system of claim 9, wherein the means for processing the transaction comprises:

means for authorizing or denying the transaction by comparing the transaction to the set of conditions associated with the limited-use credit card number; and

means for deactivating the limited-use credit card number based on the limited-use transaction and the set of conditions associated with limited-use credit card number.

11. The credit card system of claim 9, wherein the means for issuing the limited-use credit card number comprises:

means for downloading the limited-use credit card number to a user.

12. The credit card system of claim 11, wherein the limited-use credit card number is encrypted prior to downloading.

13. The credit card system of claim 9, wherein the merchant is selected from a predetermined list of merchants and/or category of merchants.

14. The credit card system of claim 9, wherein the set of conditions is defined by a user of the limited-use credit card.

15. The credit card system of claim 9, the set of conditions limits the use of the limited-use credit card number to a predefined user limit.

16. The credit card system of claim 9, wherein the set of conditions comprise at least one of the group consisting of transaction value conditions, time of transaction conditions, number of transactions conditions, frequency of transactions conditions, purpose of transaction conditions, merchant type conditions, and geographical conditions.

17. The credit card system of claim 9, wherein means for issuing the limited-use credit card number is an automated teller machine that dispenses the limited-use credit card.

19. A credit card system, comprising:

means for assigning at least one credit card number to be a master credit card number;

means for assigning at least one credit card number to be a limited-use credit card number which is deactivated upon a use-triggered condition which occurs subsequent to assignment of said at least one credit card number and which shares identical formatting to said master credit card number;

means for associating said master credit card number with said limited-use credit card number, while ensuring that said master credit card number cannot be discovered on the basis of said limited-use credit card number;

means for determining whether to deactivate the limited-use credit card number when said limited-use credit card number was used to perform a transaction, and for generating a deactivation command in response thereto, wherein said means for determining whether to deactivate the limited-use credit card number determines whether a limited-use event pertaining to the use of the limited-use credit card number has occurred, and if so, generates said deactivation command when said limited-use event has occurred; and

means for deactivating the limited-use credit card number based on the deactivation command,

wherein said limited-use credit card number is valid for a predetermined number of payments for a transaction with a single merchant.

20. A credit card system comprising:

means for allocating a limited-use credit card number which share identical formatting as a non-limited-use credit card number;

means for associating the limited-use credit card number with a customer account number and a set of conditions neither specific to the merchant nor the transaction, wherein the means for associating prevents the customer account number from being discovered from the limited-use credit card number;

means for issuing the limited-use credit card number;

means for detecting a transaction using the limited-use credit card number, wherein use of the limited-use credit card number is valid for transactions with a specific merchant as determined by a first use; and

means for processing the transaction in accordance with the set of conditions associated with limited-use credit card number.

21. The credit card system of claim 20, wherein the means for processing the transaction comprises:

means for authorizing or denying the transaction by comparing the transaction to the set of conditions associated with the limited-use credit card number; and

means for deactivating the limited-use credit card number based on the limited-use transaction and the set of conditions associated with limited-use credit card number.

22. The credit card system of claim 20, wherein the set of conditions is defined by a user of the limited-use credit card.

23. The credit card system of claim 20, wherein the set of conditions limits the use of the limited-use credit card number to a predefined user defined limit.

24. The credit card system of claim 20, wherein the set of conditions comprise at least of the group consisting of transaction value conditions not specific to a particular transaction, time of transaction conditions, number of transactions conditions, frequency of transactions conditions, purpose of transaction conditions, merchant type conditions, and geographical conditions.