Method and device for generating a single-use financial account number

• US 7,844,550 B2
• Filed: 01/24/2006
• Issued: 11/30/2010
• Est. Priority Date: 08/28/1997
• Status: Expired due to Fees

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: Walker Digital LLC (Walker Innovation Inc. (f/k/a Patent Properties, Inc.))
• Inventors: Walker, Jay S., Jindal, Sanjay K., Schneier, Bruce, Tedesco, Daniel E.
• Primary Examiner(s): Worjloh, Jalatee
• Application Number:
  US11/338,152
• Publication Number:
  US 20060122931A1
• Time in Patent Office: 1,771 Days
• Field of Search: 705 50- 80, 705/1, 705 35- 45, 713/150
• US Class Current: 705/74
• 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 20/24 Credit schemes, i.e. "pay after"
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 20/3823 combining multiple encryption tools for a transaction
• CPC Class Codes: G06Q 20/383 Anonymous user system
• 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 20/401 Transaction verification
• CPC Class Codes: G06Q 20/4014 Identity check for transactions

Abstract

A device for facilitating financial account transactions is described which includes a processing unit including a cryptographic processor. The device also includes an input unit, a display unit and a memory device connected to the processing unit. The memory device contains a private cryptographic key, a first data element and a second data element. The processing unit encrypts the first data element using the private cryptographic key and the second data element, modifies the second data element, combines the encrypted first data element and the second data element to generate a single-use financial account identifier, and displays the single-use financial account identifier. This identifier is then transmitted to a central processor for authorization of the transaction. The central processor extracts and decrypts data elements from the transmitted identifier using the private cryptographic key, compares those data elements with data elements stored in a memory, and verifies the single-use financial account identifier in accordance with the comparison.

Claims

1. A method for generating a single-use financial account identifier, the method comprising:

determining a first data element, specific to an account holder associated with an account number;

determining a second data element, specific to an account issuer;

generating a single-use financial account identifier for authorizing a purchase, the single-use financial account identifier having the same number of digits as the account number;

receiving, from a merchant by a central processor, the single-use financial account identifier having the same number of digits as the account number;

determining, by the central processor, that the single-use financial account identifier having the same number of digits as the account number is valid; and

identifying, by the central processor, the account number associated with the account holder based on the single-use financial account identifier having the same number of digits as the account number.

2. The method of claim 1, in which the single-use financial account identifier is a sixteen-digit number.

3. The method of claim 1, in which the second data element is the account number.

4. The method of claim 3, in which the account number comprises sixteen digits.

5. The method of claim 1, in which the first data element comprises a nonce.

6. The method of claim 1, in which the first data element comprises an initialization variable.

7. The method of claim 1, further comprising:

storing a plurality of single-use financial account identifiers in a memory, the plurality including the generated single-use financial account identifier.

8. The method of claim 7, further comprising:

for each single-use financial account identifier of the plurality, storing a respective associated status, the status indicating whether the single-use financial account identifier has already been used.

9. The method of claim 7, in which the memory is embodied in a card.

10. A computer readable memory device storing instructions configured to direct a processor to perform a method of:

determining a first data element, specific to an account holder associated with an account number;

determining a second data element, specific to an account issuer;

generating, by a central processor, a single-use financial account identifier for authorizing a purchase, the single-use financial account identifier having the same number of digits as the account number;

receiving, from a merchant by a central processor, the single-use financial account identifier having the same number of digits as the account number;

determining, by the central processor, that the single-use financial account identifier having the same number of digits as the account number is valid; and

identifying, by the central processor, the account number associated with the account holder based on the single-use financial account identifier having the same number of digits as the account number.

11. The computer readable memory device of claim 10, in which the single-use financial account identifier is a sixteen-digit number.

12. The computer readable memory device of claim 10, in which the second data element is the account number.

13. The computer readable memory device of claim 12, in which the account number comprises sixteen digits.

14. The computer readable memory device of claim 10, in which the first data element comprises a nonce.

15. The computer readable memory device of claim 10, in which the first data element comprises an initialization variable.

16. The computer readable memory device of claim 10, further comprising:

storing a plurality of single-use financial account identifiers in a memory device, the plurality including the generated single-use financial account identifier.

17. The computer readable memory device of claim 16, further comprising:

for each single-use financial account identifier of the plurality, storing a respective associated status, the status indicating whether the single-use financial account identifier has already been used.

18. The computer readable memory device of claim 16, in which the memory device is embodied in a card.

19. An apparatus comprising:

a processor; and

a storage device in communication with the processor, the storage device storing instructions configured to direct the processor to perform a method of;

determining a first data element, specific to an account holder associated with an account number;

determining a second data element, specific to an account issuer;

generating a single-use financial account identifier for authorizing a purchase, the single-use financial account identifier having the same number of digits as the account number;

receiving the single-use financial account identifier having the same number of digits as the account number;

determining that the single-use financial account identifier having the same number of digits as the account number is valid; and

identifying the account number associated with the account holder based on the single-use financial account identifier having the same number of digits as the account number.