Credit card system and method

• US 7,567,934 B2
• Filed: 06/04/2002
• Issued: 07/28/2009
• Est. Priority Date: 03/25/1998
• Status: Expired due to Fees

• Current Assignee: Orbis Patents Limited (Orbis Technology)
• Original Assignee: Orbis Patents Limited (Orbis Technology)
• Inventors: O'Donnell, Graham, Flitcroft, Daniel I.
• Primary Examiner(s): Poinvil; Frantzy
• Assistant Examiner(s): GRAHAM, CLEMENT B
• Application Number:
  US10/160,178
• Publication Number:
  US 20030028481A1
• Time in Patent Office: 2,611 Days
• Field of Search: 700/232, 705/38, 705/36, 705/37, 705/44, 705/34, 705/35, 235/380, 235/379, 364/479, 380/25
• US Class Current: 705/37
• 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. In a financial transaction system for use with at least one limited use credit card number, which is limited in use by a limited use credit card number issuer, by a customer of the limited use credit card number issuer, and by a user of the limited use credit card number, and which is associated with an account of the customer, a method of controlling the authorization for use of the limited use credit card number comprising the steps of:

issuing a limited use credit card number for use by a user in a limited use credit card number transaction, the limited use credit card number constituting a different number than the account of the customer and functioning as an authorized substitute for the account of the customer in a credit card transaction;

receiving information communicated by the customer to the limited use credit card number issuer to establish limitations on the use of the limited use credit card number before the limited use credit card number can be used in a transaction by said user;

authorizing transactions which meet said established limitations and denying other transactions by comparing an attempted use of the limited use credit card number to the limitations on use established by the customer and with the associated account as limited by the card issuer; and

debiting said associated account of the customer by an amount of an authorized transaction of the user using the limited use credit card number.

2. The method of claim 1, wherein said use limitations include a combination of a pre-set transaction amount limit and one of:

a merchant and merchant type.

3. The method of claim 1, wherein transactions are reported to the customer at one of:

a time of transaction and at a time of said customer'"'"'s initiation.

4. The method of claim 1, wherein said limited use credit card number is activated upon receipt by said customer of commercially valuable information from the user of said limited use credit card number.

6. The method of claim 1, wherein said limited use credit card number is activated as a reward for activities of the user of said limited use credit card number.

7. The method of claim 1, wherein the limited use credit card number is activated when the user is traveling and is limited in use to travel related expenses.

8. The method of claim 1, wherein said limitations on use are established by the customer receiving a specific request for a specific use by the user, and the limitations reflect the content of the specific request.

9. The method of claim 8, wherein said limitations reflecting the content of the specific request are established using a Web Access Protocol enabled radio communication device.

10. The method of claim 8, wherein said limitations reflecting the content of the specific request are established via a non-PC web access enabled device.

11. The method of claim 1, wherein said limited use credit card number is placed on a non-embossed card.

12. The method of claim 1, wherein the step of authorizing comprises:

receiving a transaction message pertaining to a transaction containing said limited use credit card number;

transmitting to an authorizer a modified version of the transaction message in which an account number of the customer'"'"'s account is substituted for said limited use credit card number;

receiving an authorization message pertaining to the modified transaction message; and

transmitting an authorization transaction message containing said limited use credit card number remapped from said account number.

13. The method of claim 1, wherein the user is a child of the customer.

18. The method of claim 1, wherein said limitations on use are established using a computer interface or a mobile phone.

22. The method of claim 1, wherein the account of the customer is not limited to the limitations on use of the limited use credit card number established by the customer.

23. The method of claim 1, wherein the step of issuing the limited use credit card number comprises randomly selecting the limited use credit card number from a plurality of available limited use credit card numbers.

24. The method of claim 1, wherein the account of the customer is not revealed to a merchant when the limited use credit card number is used in a transaction by the user.

31. The method of claim 1, wherein the customer and the user are different members of a family.

32. The method of claim 1, wherein the limited use credit card number is formatted as a credit card number for processing by a merchant to whom the limited use credit card number is presented in a transaction by the user.

33. The method of claim 32, wherein the user presents the limited use credit card number directly to the merchant in person or via a communication network through which a communication device of the user and a communication device of the merchant are communicatively linked.

34. The method of claim 1, wherein the step of issuing the limited use credit card number comprises bearing indicia of the limited use credit card number on a financial transaction card, and providing the financial transaction card to the user.

5. In a financial transaction system for use with at least one limited use credit card number, which is limited in use by a limited use credit card number issuer, by a customer of the limited use credit card number issuer, and by a user of the limited use credit card number, and which is associated with an account of the customer, a method of controlling the authorization for use of the limited use credit card number comprising the steps of:

issuing a limited use credit card number for use by a user in a limited use credit card number transaction, the limited use credit card number constituting a different number than the account of the customer and functioning as an authorized substitute for the account of the customer in a credit card transaction;

receiving information communicated by the customer to the limited use credit card number issuer to establish limitations on the use of the limited use credit card number before the limited use credit card number can be used in a transaction by said user;

authorizing transactions which meet said established limitations and denying other transactions by comparing an attempted use of the limited use credit card number to the limitations on use established by the customer and with the associated account as limited by the card issuer; and

debiting said account of the customer by an amount of an authorized transaction of the user using the limited use credit card number, wherein said limited use credit card number is activated and limited to a predefined monetary amount as settlement of a claim by said user of said limited use credit card number against said customer that provided said limited use credit card number to said user.

14. The method of claim 5, wherein said use limitations include a combination of a pre-set transaction amount limit and one of:

a merchant and merchant type.

15. The method of claim 5, wherein transactions are reported to a supervising authority other than a user at one of:

a time of transaction and at a time of said supervising authority'"'"'s initiation.

16. The method of claim 5, wherein said limited use credit card number is activated upon receipt by said customer of commercially valuable information from the user of said limited use credit card number.

17. The method of claim 5, wherein said limitations on use are established by a supervising authority receiving a specific request for a specific use by a supervised user, and the limitations reflect the content of the specific request.

19. The method of claim 5, wherein said limitations on use are established using a computer interface or a mobile phone.

20. The method of claim 5, wherein the step of authorizing comprises:

receiving a transaction message pertaining to a transaction containing said limited use credit card number;

transmitting to an authorizer a modified version of the transaction message in which an account number of the customer'"'"'s account is substituted for said limited use credit card number;

receiving an authorization message pertaining to the modified transaction message; and

transmitting an authorization transaction message containing said limited use credit card number remapped from said account number.

25. The method of claim 5, wherein the account of the customer is not limited to the limitations on use of the limited use credit card number established by the customer.

26. The method of claim 5, wherein the step of issuing the limited use credit card number comprises randomly selecting the limited use credit card number from a plurality of available limited use credit card numbers.

27. The method of claim 5, wherein the account of the customer is not revealed to a merchant when the limited use credit card number is used in a transaction by the user.

35. The method of claim 5, wherein the limited use credit card number is formatted as a credit card number for processing by a merchant to whom the limited use credit card number is presented in a transaction by the user.

36. The method of claim 35, wherein the user presents the limited use credit card number directly to the merchant in person or via a communication network through which a communication device of the user and a communication device of the merchant are communicatively linked.

37. The method of claim 5, wherein the step of issuing the limited use credit card number comprises bearing indicia of the limited use credit card number on a financial transaction card, and providing the financial transaction card to the user.

21. A computer implemented method of controlling an authorization for use of a limited use credit card number comprising the steps of:

issuing, to a first user by a credit card number issuer, a limited use credit card number that is electronically associated with a master account number of a second user, the limited use credit card number constituting a different number than the master account number of the second user, and functioning as an authorized substitute for the master account number in a credit card transaction;

receiving information communicated electronically by the second user to the credit card number issuer to establish limitations on the use of the limited use credit card number before the limited use credit card number can be used in a transaction by the first user;

electronically authorizing one or more transactions which meet said limitations established by the second user and the credit card number issuer for at least the master account number and denying other transactions by comparing an attempted use of the limited use credit card number to the established limitations on use of the limited use credit card number, and in which the master account number is substituted for the limited use credit card number; and

electronically debiting an account having the master account number for an amount of an authorized transaction of the first user using the limited use credit card number.

28. The method of claim 21, wherein the step of issuing the limited use credit card number comprises randomly selecting the limited use credit card number from a plurality of available use limited use credit card numbers.

29. The method of claim 21, wherein the master account number of the second user is not revealed to a merchant when the limited use credit card number is used in a transaction by the first user.

30. The method of claim 21, wherein the master account number of the second user is not limited to the limitations on use of the limited use credit card number established by the second user.

38. The method of claim 21, wherein the limited use credit card number is formatted as a credit card number for processing by a merchant to whom the limited use credit card number is presented in a transaction by the first user.

39. The method of claim 38, wherein the first user presents the limited use credit card number directly to the merchant in person or via a communication network through which a communication device of the first user and a communication device of the merchant are communicatively linked.

40. The method of claim 21, wherein the step of issuing the limited use credit card number comprises bearing indicia of the limited use credit card number on a financial transaction card, and providing the financial transaction card to the first user.