Credit cards system and method having additional features

• US 8,676,707 B2
• Filed: 07/30/2008
• Issued: 03/18/2014
• 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: Flitcroft, Daniel Ian, Lyons, Garry
• Primary Examiner(s): Kalinowski, Alexander
• Assistant Examiner(s): CAMPBELL, KELLIE L
• Application Number:
  US12/219,952
• Publication Number:
  US 20090037333A1
• Time in Patent Office: 2,057 Days
• Field of Search: 705 35- 38
• US Class Current: 705/44
• 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. A method of implementing a transaction system using controlled payment numbers (CPNs), the method comprising:

assigning, by a central processing system of a CPN issuer comprising at least one processor, a unique CPN to a user, the CPN constituting a payment instrument for use in a financial transaction;

receiving an allocated monetary amount from a funding entity associated with the unique CPN, the funding entity being an individual or organization other than the user;

receiving, by the central processing system, limitations on use of the CPN established by the funding entity;

associating the unique CPN with a master account number of the user in a database of the CPN issuer, and associating the limitations on use of the CPN established by the funding entity with the unique CPN assigned to the user;

issuing the unique CPN to the user by the CPN issuer;

receiving an authorization request from a merchant for a transaction conducted with the CPN; and

facilitating the transaction so that it proceeds when the transaction complies with the limitations established by the funding entity.

2. The method of claim 1, wherein the limitations on use established by the funding entity include monetary restrictions to which the CPN is limited for conducting transactions with at least one merchant.

3. The method of claim 2, wherein the monetary restrictions are modifiable by the funding entity for each of the at least one merchant.

4. The method of claim 1, wherein the limitations on use include a combination of a present transaction amount limit and one of a merchant and merchant type.

5. The method of claim 1, wherein the CPN issued to the user constitutes a different number than the master account number of the user and functions as an authorized substitute for the account of the customer in a credit card transaction.

6. The method of claim 1, wherein said CPN is activated and limited to a predefined monetary amount as settlement of a claim by the user against the funding entity.

7. The method of claim 1, wherein the CPN is issued to the user by bearing indicia of the CPN on a financial transaction card.

8. The method of claim 1, wherein the CPN is issued to the user by transmitting the CPN to an electronic device of the user configured to connect the Internet.

9. The method of claim 1, further comprising establishing limitations on use of the CPN by the user.

14. The method of claim 1, further comprising:

transmitting transaction information of the CPN to a transaction processing device of the issuer for processing a credit card with the master account number associated with the CPN.

10. A method of implementing a transaction system using controlled payment numbers (CPNs), the method comprising:

associating, in a database of a CPN issuer, a unique CPN with a plurality of master account numbers of a user, the CPN constituting a payment instrument for use in a financial transaction and constituting an authorized substitute for the master account number of the user;

receiving, by a central processing system of the CPN issuer comprising at least one processor, allocated funds to be associated with at least one of the plurality of master account numbers;

issuing the unique CPN, by the central processing system of the CPN issuer, to the user for use in a transaction with a merchant when the merchant does not accept a master account number from the plurality of master account numbers of the user as a form of payment for transactions; and

communicating transaction information between the merchant and an issuer of the master account number.

11. A method of facilitating credit card transactions between a user and a merchant, the method comprising:

associating, in a database of a CPN issuer, a unique CPN with a plurality of master account numbers of a user, the CPN constituting a payment instrument for use in a financial transaction and constituting an authorized substitute for the master account number of the user;

receiving, by a central processing system of a CPN issuer comprising at least one processor, routing instructions from the user defining a respective one of the plurality of financial accounts of the user is to be processed based on at least one of a type of a transaction and a monetary amount of a transaction;

receiving an authorization request from a merchant for a transaction conducted with the issued CPN;

processing the transaction against the one of the plurality of financial accounts in the database of the user based on information contained in the authorization request;

facilitating, by the central processing system, the transaction so that it proceeds when the one of the plurality of financial accounts of the user is processed for the transaction; and

transmitting transaction information of the CPN to a transaction processing device of an issuer of a master account number associated with the CPN.

12. The method of claim 11, wherein the one of the plurality of financial accounts of the user is processed if the one account contains sufficient funds for the transaction.

13. The method of claim 11, wherein unique purchase order information is associated with the transaction and associated with the one of the plurality of financial accounts of the user against which the transaction was processed.