Credit card system and method

• US 9,881,298 B2
• Filed: 11/10/2008
• Issued: 01/30/2018
• 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 I., O'Donnell, Graham
• Primary Examiner(s): Akintola, Olabode
• Application Number:
  US12/268,063
• Publication Number:
  US 20090070260A1
• Time in Patent Office: 3,368 Days
• Field of Search: None
• 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 financial transaction system comprising:

a server configured to (i) receive a request from a merchant for authorization of a credit card transaction against a credit card account of a customer that has limitations on use established by an issuer of the credit card account, and (ii) receive information communicated by the customer to establish additional limitations on use of the credit card account that exceed the limitations on use established by the issuer of the credit card account,

a database device configured to store the additional limitations on use established by the customer in association with the credit card account of the customer; and

a customer interface configured to receive the information from the customer establishing the additional limitations on use of the credit card from the customer, and communicate the additional limitations on use of the credit card to the server,

wherein the server is configured to (i) compare an attempted use of the credit card account with the additional limitations on use established by the customer, (ii) based on said comparison, permit transactions which meet the additional limitations on use of the credit card established by the customer and deny other transactions, and (iii) transmit, via a transmitting unit, transaction information of the attempted use of the credit card to a transaction processing device of the issuer of the credit card account for processing of the associated credit card account when the attempted use is not contrary to the additional limitations on use established by the customer.

2. The financial transaction system according to claim 1, wherein the additional limitations on use of the credit card account include at least one of a transaction value limitation, a limitation on goods or services that may be purchased with the credit card account, a limitation on a total amount of charges over a predetermined period of time, a limitation on a number of transactions over a predetermined period of time, a geographical limitation identifying a predetermined geographical region in which the credit card account may be used, a limitation on at least one merchant with whom a transaction may be conducted, and a limitation on a type of merchant with whom a transaction may be conducted.

3. The financial transaction system according to claim 1, wherein the customer interface is integrated on a communication device of the customer configured to communicate with the server over a communication network, the communication device of the customer including at least one of a computer, a personal digital assistant (PDA), mobile telephone, and an automated transaction machine (ATM).

4. The financial transaction system according to claim 1, wherein the credit card account of the customer is an account for which the customer has been issued a physical credit card.

5. The financial transaction system according to claim 1, wherein the database is comprised in the server.

6. The financial transaction system according to claim 1, wherein the server is configured to transmit an authorization notification received from the issuer of the credit card account to the merchant, and transmit a denial notification to the merchant if the transaction does not meet the additional limitations on use established by the customer of the credit card account.

7. The financial transaction system according to claim 1, wherein the server is integrated with the transaction processing device of the issuer of the credit card account.

8. The financial transaction system according to claim 1, wherein the server is configured to communicate with the transaction processing device of the issuer of the credit card account by a secure communication established between the server and the transaction processing device.

21. The financial transaction system according to claim 1, wherein the server is further configured to compare the attempted use of the credit card with the limitations on use established by the issuer of the credit card.

22. The financial transaction system according to claim 1, wherein the server is further configured to transmit a notification of an authorized transaction from the transaction processing device of the issuer to the merchant upon receiving notification from the transaction processing device that the transaction has been authorized.

9. A server configured to communicate with an interface operable by a customer of a credit card account, and a transaction processing device of an issuer of the credit card account of the customer, the server comprising:

a receiving unit configured to receive a request from the customer of the credit card account via the interface to establish limitations on use of the credit card account of the customer;

an issuing unit configured to issue a limited use credit card number for use in a credit card transaction to the interface, the limited use credit card number having limitations on use that correspond to the requested limitations on use of the credit card account received from the interface, constituting a different number than the credit card account of the customer and functioning as an authorized substitute for the credit card account of the customer in a credit card transaction;

an associating unit configured to associate the limited use credit card number issued to the interface with the credit card account of the customer in a database device;

an authorization unit configured to (i) compare an attempted use of the limited use credit card number to the limitations on use established by the customer of the limited use credit card number and (ii), based on said comparison, permit transactions which meet the limitations on use established by the customer of the limited use credit card number and deny other transactions; and

a notification unit configured to transmit a notification of an authorized transaction conducted with the credit card account to the transaction processing device of the issuer of the credit card account for processing of the associated credit card account by an amount of the authorized transaction.

10. The server according to claim 9, wherein the limitations on use of the limited use credit card number include at least one of a transaction value limitation, a limitation on goods or services that may be purchased with the limited use credit card number, a limitation on a total amount of charges over a predetermined period of time, a limitation on a number of transactions over a predetermined period of time, a geographical limitation identifying a predetermined geographical region in which the credit card account may be used, a limitation on at least one merchant with whom a transaction may be conducted, and a limitation on a type of merchant with whom a transaction may be conducted.

11. The server according to claim 9, wherein the interface is integrated on a communication device of the customer configured to communicate with the server over a communication network, the communication device of the customer including at least one of a computer, a personal digital assistant (PDA), mobile telephone, and an automated transaction machine (ATM).

12. The server according to claim 9, wherein the credit card account of the customer is an account for which the customer has been issued a physical credit card.

13. The server according to claim 9, wherein the database device is comprised in the server.

14. The server according to claim 9, wherein the notification unit is configured to transmit an authorization notification received from the transaction processing device of the issuer of the credit card account to the merchant, and transmit a denial notification to the merchant if the transaction does not meet the limitations on use of the limited use credit card number.

15. The server according to claim 9, wherein the server is integrated with the transaction processing device of the issuer of the credit card account.

16. The server according to claim 9, wherein the server is configured to communicate with the transaction processing device of the issuer of the credit card account by a secure communication established between the server and the transaction processing device.

23. The server according to claim 9, wherein the authorization unit is further configured to compare the attempted use of the limited use credit card number to the limitations on use established by the issuer of the credit card.

17. A server configured to communicate with an interface operable by a customer of a credit card account, and a transaction processing device of an issuer of the credit card account of the customer, the server comprising:

a receiving unit configured to receive a request from the customer of the credit card account via the interface for issuance of a limited use credit card number, and to receive information communicated by the customer via the interface to establish limitations on use of the limited use credit card number before the limited use credit card number can be used in a transaction;

an issuing unit configured to issue a limited use credit card number for use in a credit card transaction to the interface, the limited use credit card number having limitations on use that correspond to the requested limitations on use received from the interface, constituting a different number than the credit card account of the customer and functioning as an authorized substitute for the credit card account of the customer in a credit card transaction;

an associating unit configured to associate the limited use credit card number issued to the interface with the credit card account of the customer in a database device;

an authorization unit configured to (i) compare an attempted use of the limited use credit card number to the limitations on use established by the customer of the limited use credit card number and (ii), based on said comparison, permit transactions which meet the limitations on use established by the customer of the limited use credit card number and deny other transactions; and

a notification unit configured to transmit a notification of an authorized transaction conducted with the credit card account to the transaction processing device of the issuer of the credit card account for processing of the associated credit card account by an amount of the authorized transaction.

18. The server according to claim 17, wherein the limitations on use of the limited use credit card number include at least one of a transaction value limitation, a limitation on goods or services that may be purchased with the limited use credit card number, a limitation on a total amount of charges over a predetermined period of time, a limitation on a number of transactions over a predetermined period of time, a geographical limitation identifying a predetermined geographical region in which the limited use credit card number may be used, a limitation on at least one merchant with whom a transaction may be conducted, and a limitation on a type of merchant with whom a transaction may be conducted.

19. The server according to claim 17, wherein the interface is integrated on a communication device of the customer configured to communicate with the server over a communication network, the communication device of the customer including at least one of a computer, a personal digital assistant (PDA), mobile telephone, and an automated transaction machine (ATM).

20. The server according to claim 17, wherein the notification unit is configured to transmit an authorization notification received from the transaction processing device of the issuer of the credit card account to the merchant, and transmit a denial notification to the merchant if the transaction does not meet the limitations on use of the limited use credit card number.

24. The server according to claim 17, wherein the authorization unit is further configured to compare the attempted use of the limited use credit card number to the limitations on use established by the issuer of the credit card.

25. A method for providing a payment cardholder with control over use of a payment card comprising:

configuring, by a central processing system, a set of use limitations for usage of the payment card;

receiving, via an interface device, a selection, by the payment cardholder, of one or more of said use limitations;

associating, in a database device, cardholder limitations with the payment card based on said selected usage limitations for determining acceptable transactions and unacceptable transactions for the payment card;

intercepting, by said central processing system, an authorization request, from a merchant, for each transaction of the payment card;

comparing, by said central processing system, said authorization for said each transaction of the payment card with the additional limitations on use established by the customer stored in said database device;

identifying, by said central processing system, based on said comparison, each said transaction as being one of said acceptable transactions and said unacceptable transactions;

when an acceptable transaction is identified, transmitting, by a transmitting unit of said central processing system, transaction information of the identified acceptable transaction to a transaction processing device of an issuer of the payment card for processing of an associated account of the payment card; and

notifying, by the central processing system, the payment cardholder, using a message, of at least one of said acceptable transactions and said unacceptable transactions.

26. The method of claim 25, further comprising declining said authorization for said transactions identified by said cardholder limitations as said unacceptable transactions.

27. The method of claim 26, wherein said declining includes obtaining verification from said central processing system prior to declining said authorization for each said unacceptable transaction.

28. The method of claim 25, wherein said set of usage limitations includes any combination of one or more characteristics selected from the group consisting of:

a limit on aggregate transaction amounts over a specified time period;

a limit on a single transaction amount;

a maximum number of transactions in a specific time period;

a maximum number of transactions for specific types of transactions;

a maximum number of each specific type of transactions;

a limit on geographic use of the card;

specific types of authorized transactions;

a limit on geographic use of the payment card based on transaction type;

a limit on days of a week when a payment card may be used; and

a limit on a time of day when a payment card may be used.

29. The method of claim 25, wherein said usage limitations are configured by a payment card issuer.

30. The method of claim 25, wherein said allowing the payment cardholder to select one or more of said usage limitations is conducted via said central processing system.

31. The method of claim 25, wherein delivery of said message includes any combination of one or more delivery methods selected from the group consisting of:

e-mail, wireless messaging, real-time communication channel, and near real-time communication channels.

32. A method for providing a payment cardholder with control over a payment card comprising:

configuring, by a central processing system, a set of use limitations for usage of the payment card;

receiving, via an interface device, a selection, by the payment cardholder, of one or more of said usage limitations;

storing, in a database device, cardholder limitations in association with the payment card based on said selected usage limitations for determining acceptable transactions and unacceptable transactions for the payment card;

intercepting, by said central processing system, an authorization request, from a merchant, for each transaction of the payment card;

comparing, by said central processing system, said authorization request for said each transaction of the payment card with the additional limitations on use established by the customer stored in said database device;

identifying, by said central processing system, based on said comparison, each said transaction as being one of said acceptable transactions and said unacceptable transactions;

declining, by said central processing system, through an automatic decline feature, at least one said authorization request for a transaction identified by said cardholder limitations as one of said unacceptable transactions; and

when at least one said authorization request is authorized for a transaction identified as an acceptable transaction, transmitting, by a transmitting unit, transaction information of the identified acceptable transaction to a transaction processing device of an issuer of the payment card for processing of an associated account of the payment card.

33. The method of claim 32, wherein said decline feature requires verification from said central processing system prior to declining said authorization for each said transaction.

34. The method of claim 32, wherein said set of usage limitations includes any combination of one or more characteristics selected from the group consisting of:

a limit on aggregate transaction amounts over a specified time period;

a limit on a single transaction amount;

a maximum number of transactions in a specific time period;

a maximum number of transactions for specific types of transactions;

a maximum number of each specific type of transactions;

a limit on geographic use of the card;

specific types of authorized transactions;

a limit on geographic use of the payment card based on transaction type;

a limit on days of a week when a payment card may be used; and

a limit on a time of day when a payment card may be used.

35. The method of claim 32, wherein said usage limitations are configured by a payment card issuer.

36. The method of claim 32, wherein said allowing the payment cardholder to select one or more of said usage limitations is conducted via said central processing system.

37. The method of claim 32 wherein delivery of said message includes selection based on any combination of one or more combination of delivery methods selected from the group consisting of:

e-mail, wireless messaging, and other real-time and near real-time communication channels.

38. A method for providing a payment cardholder with the ability to manage a payment card comprising:

configuring, by a central processing system, a set of use limitation for usage of the payment card;

receiving, via an interface device, a selection, by the payment cardholder of one or more of said use limitations;

storing, in a database device, cardholder limitations in association with the payment card based on said selected use limitations for determining acceptable transactions and unacceptable transactions for the payment card;

intercepting, by said central processing system, each transaction of the payment card;

comparing, by said central processing system, said each transaction of the payment card with the additional limitations on use established by the customer stored in said database device;

identifying, by said central processing system, based on said comparison, each said transaction as being one of said acceptable transactions or said unacceptable transactions;

displaying, via a user interface device, information regarding a set of selected transactions based on a set of all transactions for the payment card; and

when an acceptable transaction is identified, transmitting, by a transmitting unit, transaction information of the identified acceptable transaction to a transaction processing device of an issuer of the payment card for processing of an associated account of the payment card.

39. The method of claim 38, wherein said set of usage limitations includes any combination of one or more characteristics selected from the group consisting of:

a limit on aggregate transaction amounts over a specified time period;

a limit on a single transaction amount;

a maximum number of transactions in a specific time period;

a maximum number of transactions for specific types of transactions;

a maximum number of each specific type of transaction;

a limit on geographic use of the card;

specific types of authorized transactions;

a limit on geographic use of the payment card based on transaction type;

a limit on days of a week when a payment card may be used; and

a limit on a time of day when a payment card may be used.

40. The method of claim 38, wherein said use limitations are configured by a payment card issuer.

41. The method of claim 38, wherein said allowing the payment cardholder to select one or more of said usage limitations is conducted via said central processing system.

42. The method of claim 38, wherein said user interface provides a review of said selected transactions.

43. The method of claim 39, wherein said user interface provides a graphical display of said selected transactions.