Charge card and debit transactions using a variable charge number

• US 7,100,821 B2
• Filed: 05/13/2004
• Issued: 09/05/2006
• Est. Priority Date: 05/15/2003
• Status: Active Grant

• Current Assignee: Callahan Cellular LLC (Intellectual Ventures LLC)
• Original Assignee: Mehran Randall Rasti
• Inventors: Rasti, Mehran Randall
• Primary Examiner(s): Stcyr, Daniel
• Assistant Examiner(s): Hess, Daniel A.
• Application Number:
  US10/845,312
• Publication Number:
  US 20050252961A1
• Time in Patent Office: 845 Days
• Field of Search: 235/379, 235/380, 705/39, 705/40
• US Class Current: 235/380
• 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 20/385 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

Abstract

A system and method to improve on the security of credit cards when money needs to be charged or transferred by assigning a different charge number to every transaction. A charge number is a combination of the card number and a random number that is generated through a user initiated preauthorization phase. A temporary preauthorization number is issued for a maximum amount to be charged to a specific merchant. Preauthorization output is passed on to the merchant for verification and deposit purposes. A specially designed cellular phone or PDA can be used in lieu of a charge card, in which case the generated preauthorization number can either be stored in a removable memory, or be directly sent to the merchant'"'"'s charge machine. The card/charge-device does not contain all of the information required for a successful transaction, therefore security is maintained despite its loss or theft of numbers.

Claims

1. A method for completing a charge transaction on a charge account comprising the steps of:

a) providing a user with a charge account;

b) providing a user with a partial charge account number corresponding to the charge account which cannot by itself be used for a charge transaction;

c) enabling a user to obtain a personal identification number (PIN) corresponding to the charge account;

d) receiving an account request including

i. said partial charge account number

ii. said PIN number of user associated with said account

iii. a maximum amount to be charged

iv. a merchant number or vendor identification code

e) if said account request is valid and there are sufficient funds, sending in response a temporary preauthorized string of digits which together with the partial charge account number form a complete charge number which can be used for a charge transaction only in association with said merchant number/vendor identification code or otherwise sending in response a rejection communication.

2. The method of claim 1, wherein said complete charge number is temporary.

3. The method of claim 1, wherein an account file for said user stores said partial charge number but not said complete charge number.

4. The method of claim 1, wherein said response is sent through email.

5. The method of claim 1, wherein said response is printed on paper.

6. The method of claim 1, wherein said response is stored on removable memory.

7. The method of claim 1, wherein said response is sent via telephone.

8. The method of claim 1, wherein said receiving and response steps are carried out through a processing center.

9. The method of claim 1, wherein in response to a request from said merchant or vendor including

i. said partial charge account number

ii. said preauthorized string of digits

iii. a charge amount that is less than or equal to said maximum amount to be charged

iv. said merchant number or vendor identification code

said vendor or merchant is provided with confirmation or denial of receivable funds.

10. A system which enables the completion of a charge transaction on a charge account said system having means to

a) provide a user with a charge account;

b) provide a user with a partial charge account number corresponding to the charge account which cannot by itself be used for a charge transaction;

c) enable a user to obtain a personal identification number (PIN) corresponding to the charge account;

d) receive an account request including

i. said partial charge account number

ii. said PIN number of user associated with said account

iii. a maximum amount to be charged

iv. a merchant number or vendor identification code

e) if said account request is valid and there are sufficient funds, send in response a temporary preauthorized string of digits which together with the partial charge account number form a complete charge number which can be used for a charge transaction only in association with said merchant number/vendor identification code or otherwise send in response a rejection communication.

11. The system of claim 10, wherein said complete charge number is temporary.

12. The system of claim 10, wherein said response is sent through email.

13. The system of claim 10, wherein said response is printed on paper.

14. The system of claim 10, wherein said response is stored in removable memory.

15. The system of claim 10, wherein said account request is sent via telephone.