WO2003027798A2 - Procede de paiement sans carte - Google Patents

Procede de paiement sans carte Download PDF

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Publication number
WO2003027798A2
WO2003027798A2 PCT/US2002/029649 US0229649W WO03027798A2 WO 2003027798 A2 WO2003027798 A2 WO 2003027798A2 US 0229649 W US0229649 W US 0229649W WO 03027798 A2 WO03027798 A2 WO 03027798A2
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WO
WIPO (PCT)
Prior art keywords
account
personal identification
holder
entry
transaction
Prior art date
Application number
PCT/US2002/029649
Other languages
English (en)
Other versions
WO2003027798A3 (fr
Inventor
William Frederick Mann, Iii
Jeffrey L. Hirka
Original Assignee
First Usa Bank, N.A.
Priority date (The priority date is an assumption and is not a legal conclusion. Google has not performed a legal analysis and makes no representation as to the accuracy of the date listed.)
Filing date
Publication date
Priority claimed from US09/957,505 external-priority patent/US7099850B1/en
Priority claimed from US09/956,997 external-priority patent/US7103576B2/en
Application filed by First Usa Bank, N.A. filed Critical First Usa Bank, N.A.
Priority to EP02775858A priority Critical patent/EP1440400A4/fr
Priority to CA002460886A priority patent/CA2460886A1/fr
Priority to AU2002341707A priority patent/AU2002341707A1/en
Publication of WO2003027798A2 publication Critical patent/WO2003027798A2/fr
Publication of WO2003027798A3 publication Critical patent/WO2003027798A3/fr

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Classifications

    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/04—Payment circuits
    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/08—Payment architectures
    • G06Q20/20—Point-of-sale [POS] network systems
    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/38—Payment protocols; Details thereof
    • G06Q20/385—Payment protocols; Details thereof using an alias or single-use codes

Definitions

  • the system and method of the invention relate generally to performing transactions related to an account, so as to eliminate the need for the physical presence of a transaction card during the transaction.
  • the disclosed method and system in accordance with embodiments of the invention provide a technique for allowing an account-holder to select an alias by which an account-holder may access and use a transaction account using convenient and/or easy to remember information. Further, the method and system in accordance with embodiments of the invention provide a technique for allowing an account- holder to select an alias, as well as a personal identification entry, by which an account-holder may access and use a transaction account using convenient and/or easy to remember information.
  • the present invention further provides a system and method for enabling an account-holder to use his or her transaction card or a transaction account without actually having a card present at the time of purchase. This is accomplished by cross- linking the account-holder's phone number, or other alias that is selected by the account-holder, to the transaction card number, such as a credit card number, and providing the customer with a corresponding "personal identification entry" (PIE) that can be changed immediately upon receipt so that it is a number that the account- holder can easily remember.
  • PIE personal identification entry
  • a PIE may take the form of a conventional Personal Identification Number (PIN).
  • PIE can also be selected by the account-holder from his or her home phone.
  • the bank can verify the identity of the caller by their phone number, if their phone number is chosen as the PIE, using an Automatic Number Identification ("ANI") system, which ensures a secure registration of the PIE.
  • ANI Automatic Number Identification
  • the customer can then self- select the PIE he or she wishes to use.
  • Fig. 1 is a flow chart showing a method of use according to one embodiment of the invention
  • Fig. 2 is a flow chart showing a transaction accordmg to one embodiment of the invention
  • Fig. 3 is a flow chart showing acceptance of an offer and set up of an account according to one embodiment of the invention
  • Fig. 4 is a flow chart showing acceptance of an offer and set up of an account according to one embodiment of the present invention
  • Fig. 5 is a block diagram showing a transaction system according to one embodiment of the present invention
  • Fig. 6 is a block diagram showing the merchant portion of Fig. 5 in further detail according to one embodiment of the present invention
  • Fig. 7 is a block diagram showing the customer portion of Fig. 5 in further detail according to one embodiment of the present invention.
  • Fig. 8 is a flow chart showing a method of use according to a further embodiment of the invention.
  • Fig. 9 is a flow chart showing the account-holder performs account-holder operations step of Fig. 8 in further detail according to one embodiment of the invention.
  • Fig. 10 is a flow chart showing the card controller operating portion processes PIE and responds to merchant over the Internet step of Fig. 8 in further detail according to one embodiment of the invention; and Fig. 11 is a flow chart showing the card controller operating portion processes
  • a "transaction card” means a credit card, debit card, stored value card, smart card, or any other type of card, electronic account, or payment vehicle that is used by a person or an entity and that allows that person or entity to perform any of a wide variety of transactions, which relate to an account, i.e., a "transaction account,” including electronically accessing funds, mutual funds, money market accounts, margin accounts, bank accounts, sweeps card accounts, a line of credit, stock information, electronically accessing information such as address information, or performing other transactions, for example.
  • a "transaction account” including electronically accessing funds, mutual funds, money market accounts, margin accounts, bank accounts, sweeps card accounts, a line of credit, stock information, electronically accessing information such as address information, or performing other transactions, for example.
  • the transaction card may be used by any of a variety of users characterized herein as "account-holders.”
  • an "account-holder” may be any of a variety of persons or users having an account or accounts including, for example, a cardholder, i.e., a person who possesses a card of some type, but who does not need to physically carry the card with them as a result of the systems and methods of the invention.
  • Fig. 1 shows one example of an account-holder transaction according to the method of the present invention.
  • a credit card purchase is commenced at any given "point of purchase” location in step 10.
  • a "point of purchase location” is any location where it is possible to make a purchase using a credit card.
  • any store that accepts credit cards would be a point of purchase location.
  • Any telephone can be considered a point of purchase location since it is possible to telephone a company, such as a catalog company, and place a credit card order over the phone.
  • the account-holder will enter a selected alias, such as the account-holder's ten-digit home telephone number, or alternatively a cellular number or personal communications service (PCS) number, for example, and the selected PIE, such as a home telephone number, into a device similar to the credit card readers in use today in step 12.
  • a selected alias such as the account-holder's ten-digit home telephone number, or alternatively a cellular number or personal communications service (PCS) number, for example
  • PCS personal communications service
  • the selected PIE such as a home telephone number
  • This device will connect to a database, perhaps the database already maintained by the telephone company in step 14, and it will check for authenticity.
  • the transaction card company may have their own database which includes all the appropriate information and can verify the account-holder and process the transaction with the appropriate card in step 16.
  • the validation process should be fairly quick and will then retrieve the credit card linked to the alias and PIE the account-holder has provided. After validation has succeeded, the credit card will be charged and the merchant will receive notice of this validation in step 18. The account-holder must then sign some sort of receipt or authorization slip and the transaction is complete in step 20.
  • a suitable "keypad" is used by customers so they can enter their alias and/or their PIE.
  • the arrangement of the keypad allows the customer to enter the required information discreetly.
  • the customer can provide the alias and PIE directly to the merchant either verbally or in writing, for example.
  • Fig. 2 shows a similar transaction between an account-holder and a merchant conducted over a telephone, or alternatively cellular phone or personal communications service (PCS), for example.
  • an account-holder initiates a transaction by calling a merchant over the telephone in step 22.
  • the account-holder authorizes his card to be charged by providing the representative with his alias, which in this case is his ten-digit telephone number.
  • the merchant may use an ANI to determine the telephone number of the caller in step 24, i.e., if the caller has designated their home phone number as the alias. This is useful in situations where the account-holder is calling from their home and provides an added measure of security to make sure the authorized account-holder is the one placing the order.
  • step 26 the account-holder provides the PIE to the merchant. This can be done by having the account-holder punch in the PIE on the telephone key pad or verbally indicating the PIE to the merchant, for example.
  • the ten-digit number, i.e., the alias, and PIE are verified by the merchant in step 30.
  • the verification process is similar to that used to verify original credit card numbers and expiration dates.
  • FIG. 3 shows the activation and assignment process for a current account- holder.
  • a current account-holder in this case a card member, is a person that already has a credit card account with the credit card company and is merely calling to select their alias, as well as selecting a PIE.
  • the process is initiated in step 36 when a current account-holder receives the offer from the credit card company to select an alias. This offer can be received by mail, e-mail, telephone, or any number of ways.
  • the account- holder calls the credit card company for activation in step 38 in accordance with one embodiment of the method of the invention.
  • the caller's telephone number is automatically identified by an ANI system in step 40.
  • the credit card company can determine the caller's identity and account number. This can be done by asking the caller for his account number or, preferably, by having a system, such as a voice recognition unit (VRU), obtain the account number from the caller and automatically retrieve the account-holder's account info ⁇ nation based on the telephone number as shown in step 42.
  • VRU voice recognition unit
  • step 43 the card member selects an alias. Then, the process passes to step 44.
  • step 44 the account-holder selects a PIE to be used with his telephone number alias.
  • the credit card company can assign a PIE, as well as multiple PIEs or multiple aliases, randomly.
  • the activation process is completed in step 46 when a credit card company assigns an alias and a PIE to the account-holder's account and updates the appropriate database record or records. This updating may of course be done automatically.
  • the activation process performed over the telephone can be totally automated as well.
  • a current account-holder would receive the offer in the mail including a telephone number for the account-holder to call for activation.
  • the account-holder would then call the designated number.
  • the credit card company could then automatically determine the account-holder's telephone number using an ANI and present the account-holder with a pre-recorded menu of options, such as by utilizing a voice recognition unit or system. By using these options the account-holder would be able to request selection of the alias and select a PIE using the telephone key pad. Registration is then completed by having the system automatically update the account-holder's account and records with the selected alias and the selected PIE.
  • the activation and registration process can also be utilized by a new account- holder.
  • a new member would receive a credit card offer with an option to select an alias for the new account in step 48.
  • the person can accept this offer and apply for the credit card and alias by calling a designated number for activation in step 50.
  • the credit card company can use an ANI to determine the caller's telephone number for verification.
  • a customer service representative can verbally obtain the information from the account-holder.
  • the system would receive a file containing the caller's financial information and pre-approval status. This information can be used by a customer service representative, or by the system automatically, to activate a new account for the caller.
  • a customer service representative would obtain additional financial information and confirm existing information thus providing the credit card company with a more thorough screening process. Approval for the new account can then be processed in step 56 and any updating can also be performed as well. At this time, the account-holder can select an alias and a PIE as shown in step 58. The registration and activation process is completed in step 60 when the system assigns the alias and the PIE to the account- holder's account and updates the account accordingly. At this point, the system can activate the account or hold it pending approval of subsequent credit checks as may be desired.
  • Consumers who have a plurality of transaction cards have the option of selecting multiple PIEs, each of which would correspond to a different transaction card, but be used with the same alias, in accordance with some embodiments of the invention .
  • the account-holder When making a purchase, the account-holder need only provide the selected alias and the PIE corresponding to the card he or she wishes to charge the purchase on.
  • Security measures for the cardless payment system in accordance with embodiments of the method of the invention, will be nearly the same as those used by credit cards. Credit cards themselves are not a secure system by definition. If a card is lost or stolen, misuse of the credit card is quite possible. The same systems used to handle fraud for credit cards may be used to handle the present invention.
  • the systems and methods of the invention provide convenience and ease-of-mind to the account-holder. That is, the account-holder may choose both an alias and a personal identification entry (PIE) that is easiest for him or her to remember, or alternatively, that is more closely tailored to the particular's account-holder's needs. For example, an account-holder may desire additional security than is normal. As a result, the account-holder might not use her home phone number as the alias, but rather some more obscure number. Additionally, in accordance with further embodiments of the invention, once consumers have entered their alias, they can select multiple payment methods.
  • PIE personal identification entry
  • an account-holder has two different credit cards and a debit card, with the same or multiple issuers, after entering their ten-digit alias number and PIE they can choose which card to use for payment through some sort of self-selection menu.
  • a single account-holder may have multiple PIEs representing different credit cards.
  • uses of the method of the invention include, but are not limited to, any "point of sale” where there is a suitable terminal at which point consumers can enter in a number.
  • the invention is also applicable to card not present situations including ordering a product by telephone or over the Internet, for example.
  • the systems and methods of the invention allow the consumer to buy something without giving their credit card information over the phone. That is, if the consumer's home phone number is selected as the alias, all that the consumer needs to do is enter the PIE, since the phone number is automatically detected over the phone by the merchant. This is added security since many people still do not like disclosing credit card numbers over the phone.
  • communication over the telephone may be utilized to select an account-holder's alias, as well as to select a PIE.
  • An offer to select an alias may be e-mailed from the credit card company to the account-holder or performed using a suitable web page or other world wide web technology, for example. If using e-mail, once the e-mail is received, the account-holder may then select the alias over the Internet via e-mail, as well as select a PIE. It should also be appreciated that other suitable forms of communication over the Internet, or other network, may also be utilized in implementation of the method of the invention other than e-mail.
  • the account-holder might physically go to an office of the transaction card company, for example. At the transaction card company office, the alias could be selected and the PIE selected through human interaction.
  • an account-holder might utilize an automated machine for selection of the alias and selection of a PIE, or alternatively to change the alias or PIE.
  • automated machines may be strategically geographically positioned in a manner similar to automated teller machines (ATM).
  • ATM automated teller machines
  • the processing and communications capabilities required to perform alias selection and PIE selection, as well as use may be combined with the technology utilized in conventional ATMs, i.e., combined within the same physical machine.
  • selection of an alias and a personal identification entry may not involve simply the selection of alphanumerics. That is, an account-holder may choose to select an alternative type of alias or personal identification entry.
  • alternative types may include fingerprint recognition, gene identification, DNA identification, use of biometrics, i.e., using biological parameters of a person, retina identification, or voice recognition, for example.
  • an account-holder selects a PIE that is used in conjunction with the alias for a particular transaction card, for example.
  • one alias may be used with multiple PIEs for one transaction card.
  • an account-holder might rotate through three different PIEs. That is, the account-holder would make a first purchase in the morning using her first PIE. Thereafter, the account-holder might make two additional purchases in the afternoon using her second and third PIE, respectively. Then, in the evening when making a fourth purchase of the day, the account-holder would again use her first PIE.
  • the account-holder must keep track of which PIE the account-holder is currently on, i.e., what PIE in the rotation the account-holder should use next. It should of course be appreciated that any number of PIEs might be utilized in the rotation. As the number of PIEs increases, the complexity of keeping track of which PIE to use will of course increase. Accordingly, it should be appreciated that the complexity of the transaction may be justified based on the desired level of security. In contrast, the complexity of keeping track of which PIE to use may not be justified by the required level of security, thus resulting in the potential for unnecessary confusion to the account-holder.
  • a prompt may be provided to the account-holder during a transaction.
  • the prompt may be displayed subsequent to the account-holder entering their alias.
  • the prompt might be in the form of "Currently on PIE rotation 2.”
  • the account-holder would then remember the PIE that corresponds with that particular rotation number.
  • the prompt might say "currently on PIE 2,” so as to provide the useful feedback to the account-holder.
  • a single account-holder may have multiple PIEs representing different credit cards, from the same or different issuers. That is, it is possible to assign one PIE to their VISA card and another PIE to their
  • the account-holder may be advised of the authentication and verification of the transaction, and the source from which the funds were debited, for example.
  • the use of the above PIE rotation process provides an additional level of security to the account-holder.
  • another customer behind the account- holder might note the PIE number entered by the account-holder into a keypad at a grocery store.
  • the additional customer might have heard, or be able to otherwise obtain the alias used by the account-holder, in particular if the alias is the account-holder's telephone number.
  • the additional customer attempts to use this information to perform a fraudulent transaction, the additional customer's chances of success will be substantially limited, depending on where the account- holder is in the PIE rotation.
  • the system and method of the invention are utilized in the context of using a credit card.
  • the invention is not limited to use with a credit card. Any of a variety of other transaction cards might also benefit from use of the alias and PIE described herein.
  • stored value cards or debit cards might be used in conjunction with the methods of the invention.
  • multiple PIEs might be used to control from which card requested funds are obtained.
  • an account-holder might possess a credit card, a debit card and a stored value card. Further, that account-holder may always prefer to use his credit card, but of course only if there is available credit thereon.
  • the particular PIE utilized by the account-holder may control the hierarchical ranking of which card is accessed first, second, third, and so forth.
  • one of a plurality of possible PIEs, which is entered by the account- holder may determine the hierarchical ranking of which of the plurality of possible funds accounts is accessed for withdrawal of funds.
  • a PIE "BG123” might access the credit card, debit card, and stored value card in order, obtaining the requested funds from the first card that is able to grant the request.
  • a different PIE may be utilized to change the hierarchical order. That is, the PIE "BG231 " might be used for the hierarchical order of looking first to the debit card, then to the credit card, and lastly, to the stored value card in order to obtain requested funds.
  • the alias and PIE may utilize numbers, such as for example a telephone number.
  • the method of the invention is not limited to use of numbers. That is, any of numbers, alphanumerics, names, phrases, or combinations of numbers, alphanumerics, names or phrases, for example, might be utilized for either the alias or the PIE.
  • alternative techniques of identification might be utilized for either the alias or the PIE, such as human characteristics. These further forms of identification might include fingerprint recognition, gene identification, DNA identification, use of biometrics, i.e., using biological parameters of a person, retina identification, or voice recognition, for example.
  • the person's phone number for example, might be used as a PIE.
  • the caller's phone number might be determined using an ANI system. This allows the caller's PIE to be immediately obtained and stored. Once the caller provides his alias, and the association is made with the corresponding account of the caller using the alias, the PIE may then be retrieved from memory for authentication or authorization of the desired transaction.
  • a person's signature might also be utilized as either the alias or the PIE.
  • a customer would initially be prompted to enter their alias, for example, their telephone number. Thereafter, the customer would be prompted to sign their name utilizing a digital signature pad. That is, the digital signature pad captures the signature digitally and stores the signature information in what might be characterized as a "new signature data file.”
  • the information in the new signature data file is then compared with an authorized signature, which is maintained at a central processing center of the bank or other entity, for example. That is, the new signature data file is compared with an authorized signature data file to determine the level of similarities. The comparison may be performed by comparing the data points of the new signature, i.e., an executed signature, with the data points of the authorized signature.
  • the new signature might be mapped on to the authorized signature. If the similarity of the new signature and the authorized signature achieves a predetermined threshold, then the new signature is approved. It should be appreciated that the predetermined threshold may be determined based on a variety of parameters including weighing concern over potential fraudulent transactions against chronic problems of an authorized customer's signature not being accepted.
  • an account-holder uses an alias and a PIE, or alternatively, multiple PIEs.
  • the account-holder routinely changes, i.e., updates, his or her PIE.
  • This updating of the PIE might be performed using the telephone, over the Internet, through a sales representative at an office, by mail, or using an automated machine located at a convenient location, for example.
  • a user selects an initial alias and PIE during activation. Also at activation, the account-holder selects the option of routinely changing her PIE number. As a result, after five transactions, for example, using the alias and first PIE, such first PIE then becomes invalid. As a result, the account-holder must contact the credit card company or other entity in order to obtain a new, i.e., a refreshed, PIE. Once this new PIE is obtained by the account-holder, then the account-holder uses this second PIE for the next five transactions. Thereafter, the second PIE becomes invalid.
  • Such periodic changing of the PIE based on the number of transactions provides an added level of security, which may be preferred to some account-holders, balanced against the inconvenience of renewing the PIE. It should be appreciated that rather than every five transactions, any suitable number of transactions might be utilized prior to a particular PIE becoming invalid. Upon activation, for example, the account-holder might choose how many transactions may be performed prior to a particular PIE becoming invalid. It should be appreciated that rather than the number of transactions determining when a particular PIE becomes invalid, other operating parameters may alternatively be utilized. For example, at the end of every month, or at some other predetermined time in each month or year, an account-holder might be required to renew her PIE.
  • a personal digital assistant might be utilized.
  • a customer wishing to check out of a store with her purchases may initially enter the alias into her PDA.
  • the PDA communicates the alias information to the processing system of the cashier. This communication may be performed utilizing suitable communication technology, such as infrared technology.
  • the cashier's processing system Upon receiving the alias, the cashier's processing system then prompts the customer for the customer's PIE. This prompting may be performed in any suitable manner.
  • the customer may then enter the PIE into her PDA, which is then communicated to the cashier's processing system.
  • a telephone number might be conveniently used as a PIE or as the alias.
  • a telephone number is easily obtained by other persons.
  • various other operating parameters might be utilized as the alias and/or the PIE. For example, when performing an on-line transaction, the user identification parameters of an account-holder's computer, which may be obtained by the credit card company upon login may be used.
  • an account-holder's user log-on information may be utilized in a manner similar to use of an automatic number identification (ANI) system, as described above.
  • ANI automatic number identification
  • user identification based on the user identification parameters of an account-holder's computer may be utilized as a level of security in addition, rather than in substitution, of an alias and/or a PIE.
  • the alias and/or the PIE may include both static portions as well as dynamic portions, i.e., changing portions.
  • the first ten digits of an account-holder's alias may be the account-holder's telephone number.
  • the last two digits change.
  • the change of the last two digits adds a further level of security. It should be appreciated, this further level of security may also add complexity to the transaction, which may not be desired or necessary.
  • the dynamic portion may be dependent upon the time of day, the month, or the geographic area in which the customer is effecting the purchase, for example. If dependent upon the time of day, the customer might enter her phone number as the first ten digits of the alias and "02" as the last two digits of the alias, assuming that the time is in the 2 o'clock hour, i.e., 2:45 p.m., for example. It should of course be appreciated that the dynamic portion of the alias and/or the PIE may be dependent upon a wide variety of parameters as is necessary or desired.
  • an account-holder may routinely use a particular alias and PIE, but in addition possess specialty PIEs.
  • the specialty PIEs are entered in lieu of the routine PIE to effect certain predetermined options.
  • a specialty PIE might be utilized to deactivate the account-holder's debit card permanently, or alternatively, for a predetermined time. This might be particularly useful in the situation where one misplaces her debit card but then finds the debit card two days later.
  • Other specialty PIEs might be utilized to provide a variety of options.
  • a specialty PIE might be utilized to adjust the available balance on the credit card utilized by a teenager under a parent's supervision.
  • the account-holder would enter the alias and specialty PIE number. Thereafter, the user interface would prompt the parent account-holder to enter the desired credit limit.
  • processing to effect authorization was performed upon the entry of the alias and PIE.
  • the method of the invention is not limited to such immediate processing. That is, a merchant operating in the setting of a fair, for example, may not have capabilities to communicate with a particular account-holder's banking institution. As a result, the merchant may accept the alias and PIE from a customer and perform the processing of the alias and PIE at some later time, i.e., at the end of the day. Such business operation is of course dependent upon the merchant's risk assessment, i.e., weighing the desire to make the sale against the possibility of a fraudulent purchase.
  • an account-holder may rotate through different PIEs for added security. Also, the account-holder may be prompted for a particular PIE, i.e., depending on where that account-holder is in the rotation of the PIEs.
  • considerations must be taken into account when utilizing multiple PIEs in conjunction with batch techniques of processing. For example, the above described merchant operating in the setting of a fair may well utilize batch type processing at the end of the day to submit acquired alias and PIE numbers. Also, merchants in other situations may well utilize batch techniques. Thus, an "out of sequence" situation may arise from such batch processing.
  • the account- holder may have provided their alias and appropriate PIE number, based on the rotation status, but that PIE has not yet been processed. As a result, if the account- holder attempts a second transaction of the day, the account-holder may be prompted yet again for the same PIE. This can cause problems with verification and authorization of such an out of sequence transaction.
  • the above out of sequence problem is addressed by accepting any PIE number coming from certain vendors on a particular day. That is, the generally required order sequence of the PIE will be disregarded.
  • the verification and authorization of the transaction may consider both the PIE number, as well as the time of the transaction. That is, each transaction is time-stamped. Thus, the time of each sequential transaction would progress in a manner corresponding with the particular PIE utilized.
  • a set of rules may be established to address specific situations. For example, a rule might indicate that if an alias and PIE are submitted utilizing batch processing techniques and no time of the transaction is provided, then that transaction will be authorized so long as the alias and PIE successfully fill a "slot" of the day. To explain, assume that PIE number 1 was used at one o'clock, PIE number 3 was used at three o'clock, and PIE number 1 was again used at five o'clock. Also assume that an untimed transaction was also submitted in that same day, and that the untimed transaction was done using the number 2 PIE. Then, in this case, the activities of the day match with the untimed PIE.
  • an account-holder may utilize the PIE and alias of the invention in a first transaction of the day and later perform a transaction using the same card in the conventional manner, i.e., utilizing the magnetic strip of the card followed by the common signature.
  • use of the alias and PIE may be highly desirable in some transactions.
  • the issuing bank of the card may impose a fee for this added convenience.
  • the fee may be triggered by any suitable processing step such as authorization of an alias and PIE. Further, suitable fees may be imposed based on various other parameters as is necessary or desired.
  • Fig. 5 illustrates an exemplary transaction system 100, which utilizes the method of the invention.
  • the transaction system 100 includes a customer 110, a merchant portion 120 and a card controller operating portion 130.
  • the customer 110, the merchant portion 120 and the card controller operating portion 130 perform a variety of activities utilizing the processes of the invention described above. That is, the customer 110 interacts with the merchant portion 120 utilizing a communication interface 142.
  • the communication interface 142 may be in the form of a network or over the Internet, for example. Alternatively, it should be appreciated, the communication interface 142 may simply be in the form of verbal communication between the customer 110 and the merchant portion 120.
  • the customer 110 and the merchant portion 120 interact utilizing the processes of the invention as described above. Accordingly, during the course of a transaction, the customer 110 provides both an alias and PIE to the merchant portion 120. In response, and at predetermined times during the transaction, the merchant portion 120 may communicate with the card controller operating portion 130. The communication between the merchant portion 120 and the card controller operating portion 130 may utilize a suitable communication interface 144 such as a network or the Internet 146, as shown in Fig. 5.
  • the merchant portion 120 may also be characterized as an "interface portion" in that it interfaces with the customer.
  • Fig. 6 is a block diagram showing further details of the merchant portion in accordance with embodiments of the methods and systems of the invention. Specifically, Fig. 6 shows the various components a merchant may utilize by which an account-holder may enter an alias or a PIE. That is, the merchant portion 120 of Fig. 6 includes a keypad 121, a finger print recognizer 122, a gene identifier 123, a DNA identifier 124, a retina identifier 125 and a voice recognizer 126. The merchant portion 120 may use one of such components or more than one, as is desired, to identify either the alias or the personal identification entry (PIE).
  • PIE personal identification entry
  • the merchant portion 120 may also include a digital signature pad, by which a customer's signature may be digitally obtained, as is described above.
  • the merchant portion 120 may also include a selection menu 128.
  • the selection menu 128 allows a user to enter various selections, as described above, such as which payment method might be utilized, for example.
  • Fig. 7 is a block diagram showing further details of the customer 110 in accordance with one embodiment of the methods and systems of the invention.
  • the customer 110 may include a personal digital assistant (PDA) 112.
  • PDA personal digital assistant
  • the PDA may be utilized in conjunction with a cashier, for example, as described above.
  • the invention is discussed in the context of a purchasing individual interacting with a business entity.
  • the method of the invention is not limited to such interaction.
  • the alias and PIE technique of the invention may also be utilized in conjunction with other transactions, such as business to business interactions, for example.
  • the methods of using an alias and PIE of the invention may also be applied to a situation where two or more approvals need to be provided prior to granting a transaction.
  • This might apply to a transaction of a more substantial nature, for example.
  • a major purchase by a company might require two approvals, or alternatively, a parent approving a major purchase of a teenager, for example.
  • multiple approvals are needed to execute the transaction.
  • the account-holder may be thought of as being two persons.
  • such multiple approvals may utilize what might be characterized as a "partial PIEs," or alternatively, the multiple approvals might be characterized as “double PIEs.”
  • the partial PIEs are submitted together, but probably at different times, so as to form a complete PIE.
  • the partial PIEs include a first partial PIE and a second partial PIE, for example.
  • the first partial PIE may be received and stored. Thereafter, in order to effect the transaction, the second partial PIE is required.
  • the second partial PIE might be received first and then the first partial PIE, i.e., the order of the receipt of the first and second partial PIEs does not matter.
  • the time limit placed on how much time can pass between receipt of the two partial PIEs. For example, when a first person submits her partial PIE, i.e., the first of two needed partial PIEs, she can specify the time limit or expiration period. To explain further, the elapsed time period between accepting entry of the first partial PIE and accepting entry of the second partial PIE is determined. If the elapsed time period is greater than a predetermined time period, for example the time period set by the first person, then the second partial personal identification entry is nulled, i.e., is made invalid. As a result, the transaction will not be authenticated nor performed.
  • a predetermined time period for example the time period set by the first person
  • college tuition is due for $5000.
  • a father tells his son that he will pay for the tuition.
  • the father calls in the alias, for the account from which the funds will be taken, and the father's partial PIE.
  • the father provides an expiration date of five days.
  • the son goes through the college finance department and sets up his courses.
  • the son determines that the courses cost $4200 and, after four days, submits this amount using the alias of his father, or some other password, as well as the son's partial PIE.
  • the transaction has both partial PIEs and is authorized accordingly.
  • a customer or business entity for example, utilizes an alias and PIE to perform a transaction.
  • Fig. 8 is a flowchart showing further aspects of the invention in accordance with one embodiment of the methods of the invention. It should be appreciated that the process of Fig. 8, as well as Figs. 9-11 may be performed using the system of Figs. 5-7, or another suitable system.
  • step 100 the process starts with step 100.
  • step 200 the account-holder performs account-holder operations, which are described in further detail below.
  • step 300 the card member submits an alias to a merchant.
  • step 400 the merchant submits the alias to a card controller operating portion over the Internet, or some other communications network, for example.
  • step 500 the process passes to step 500.
  • step 500 the card controller operating portion processes the alias, charges a fee and responds to the merchant over the Internet.
  • the merchant queries and accepts a PIE from the customer.
  • step 600 the process passes to step 700.
  • step 700 the merchant submits the PIE to the card controller operating portion over the Internet, private network, or wireless network, for example.
  • step 800 the card controller operating portion processes the PIE and responds to the merchant over the Internet, private network or wireless network, i.e., the merchant approves or denies the request.
  • step 900 the merchant proceeds based on the response from the card controller operating portion.
  • step 950 the process ends.
  • Fig. 9 shows further aspects of use of a specialty PIE.
  • this sub-process starts in step 200. Then, the process passes to step 210.
  • the account-holder changes the available balance on an account using specialty PIE number 1.
  • the process passes to step 220.
  • step 220 the account-holder deactivates an account using specialty PIE number 2. Further, in step 230 account-holder activates an account using specialty PIE number 3. It should be appreciated that such deactivation and activation may be performed on different accounts or may be performed at different times, for example.
  • step 230 the process passes to step 240.
  • step 240 the account-holder changes his or her personal identification entry (PIE) using specialty PIE number 4. Then, in step 250 the process returns to step 300.
  • PIE personal identification entry
  • Fig. 10 is a flowchart showing in further detail the "card controller operating portion processes PIE and responds to merchant over the Internet" step 800 of Fig. 8 in accordance with one embodiment of the methods and systems of the invention.
  • the process starts in step 800.
  • the card controller operating portion determines which account is selected by the entered PIE. That is, it should be appreciated that the account-holder may have multiple accounts which may be selected.
  • the process passes to step 810.
  • step 810 the card controller operating portion determines which of three PIEs in rotation is the current PIE to be used. That is, the account-holder is using a security measure in which the account-holder rotates through three different PIEs. Then, the process passes to step 820. In step 820 the card controller operating portion compares the current PIE to be used with the PIE entered by the account- holder. Then, in step 830 the process determines "is the PIE entered correct?" If the answer is "yes,” i.e., the entered PIE is correct, then the process passes to step 840. In step 840 the process determines whether the PIE has expired?, i.e., whether the PIE has been used too many times before renewing the PIE. If the subsequent determination is "No,” in step 840, then the processes passes to step 842.
  • step 842 the card controller operating portion approves the transaction, and may provide feedback information. Such feedback information may then be conveyed on to the customer, i.e., such as by printing on the customer's receipt. After step 842, the process passes to step 860.
  • the process may determine that the PIE has expired in step 840. Then, the process passes to step 844. In step 844 the transaction is denied. After step 844, the process passes to step 860. In step 830, if the entered PIE is determined to be incorrect, then the process passes to step 850, rather than step 840 as described above. In step 850, the card controller operating portion denies the transaction, but prompts the account-holder by providing the PIE rotation number. That is, for example, the card controller operating portion provides helpful feedback information to the account-holder which may assist the account-holder. After step 850, the process passes to step 860. In step 860, the process returns to step 900.
  • Fig. 11 is a flowchart showing the "card controller operating portion processes PIE and responds to merchant over the Internet" step 800 of Fig. 8 in accordance with a further embodiment of the methods and systems of the invention.
  • the process starts in step 800.
  • step 800 as shown in Fig. 11, the process passes to step 870.
  • step 870 the process recognizes that the PIE is actually the signature of a customer.
  • the card controller operating portion retrieves a verified signature from a database, for example.
  • the process passes to step 872.
  • the PIE i.e., the signature of the customer, is compared with the retrieved verified signature.
  • step 874 a determination is made as to whether a comparison between the PIE signature and verified signature is above a threshold. For example, the pixel data representing both the verified signature and the submitted signature may be compared. If the comparison is not above the threshold, then the process passes to step 876. In step 876, the transaction is denied. After step 876, the process passes to step 879.
  • step 874 the process passes to step 878.
  • step 878 the card controller operating portion approves the transaction requested.
  • step 879 the process returns to step 900.
  • embodiments of the system of the invention as shown above may be in the form of a computer or computer system.
  • the term "computer” or “computer system” is to be understood to include at least one processor utilizing a memory or memories.
  • the memory stores of the system of the invention retain at least portions of an executable program code at one time or another during operation of the processor portion of the computer.
  • the processor executes various instructions included in that executable program code.
  • An executable program code means a program in machine language that is able to run in a particular computer system in an environment to perform a particular task.
  • the executable program code processes data in response to commands by a user.
  • executable program code and the term “software” mean substantially the same thing for the purposes of the description as used herein.
  • processors and/or the memories used in the practice of the invention be physically located in the same place. That is, it should be appreciated that each of the processors and the memories may be located in geographically distinct locations and connected so as to communicate in any suitable manner, such as over a suitable network or the Internet, for example. Additionally, it should be appreciated that each of the processors and/or the memories may be composed of the same or different physical pieces of equipment. Accordingly, it is not necessary that the processor be one single piece of equipment in one location and that the memory be another single piece of equipment in another location. That is, it is contemplated that the particular processor may be two pieces of equipment in two different physical locations.
  • the two distinct pieces of equipment may be connected in any suitable manner.
  • a particular memory used in the invention may include two or more portions of memory in two or more physical locations. Further, the memory could include or utilize memory stores from the Internet, Intranet, Extranet, LAN, satellite interface or some other source or over some other network, as may be necessary or desired.
  • the method of the invention may illustratively be embodied in the form of a computer or computer operating system. It is to be appreciated that the software or programs that enable the computer operating system to perform the operations described above may be supplied on any of a wide variety of media to hold data. Further, it should be appreciated that the implementation and operation of the system and method of the invention may be in the fonn of computer code written in any suitable programming language or languages, which provide instructions to the computer by which the computer may manipulate data.
  • the software code or programming language that is utilized in a computer system to perform the above described invention may be provided in any of a wide variety of forms.
  • the software may be provided in the form of machine language, assembly code, target language, object code, source code or source language, as well as in other forms.
  • the software may be in the form of compressed or encrypted data utilizing a suitable compression or encryption algorithm.
  • the particular medium utilized to hold either the software used in conjunction with the invention or the data, which is manipulated by the software may take on any of a variety of physical forms.
  • the medium may be in the form of a compact disk, a DVD, an integrated circuit, a hard disk, a floppy diskette, a magnetic tape, a RAM, a ROM, or a remote transmission, as well as any other medium or source of information that may be read by a computer or other operating system.
  • the software of the method of the invention may be provided in the form of a hard disk or be transmitted in some form using a direct telephone connection, the Internet, an Intranet, or a satellite transmission, for example.
  • the programming language enabling the system and method of the invention as described above may be utilized on all of the foregoing and any other medium by which software or executable program code may be communicated to and utilized by a computer or other operating system.
  • the system and method of the invention may utilize an application program, a collection of separate application programs, a module or modules of a program, or a portion of a module of a program, for example.
  • the computer language used in the system and method of the invention may be any of a wide variety of programming languages. Further, as is also noted above, it is not necessary that a single programming language be utilized in conjunction with the operation of the system and method of the invention. Rather, any number of different programming languages may be utilized as is necessary or desirable.
  • a user interface may be in the form of a key pad, for example.
  • a user interface includes any software, hardware or combination of hardware and software used in an operating system that allows a user, or other person, to interact with the operating system.
  • a user interface may also include any of a touch screen, keyboard, mouse, voice recognition device, dialogue screen, menu box, a list, a checkbox, a toggle switch, a pushbutton or any other object that allows a user to receive information regarding the operation of the program and/or provide the operating system with information.
  • a user interface used in conjunction with the system and method of the invention may be any device or collection of devices that provides communication between a user, i.e., an account-holder for example, and a computer.
  • the information provided by the user to the computer through the user interface may be in the form of a command, a selection of data, or other input, for example.

Abstract

L'invention concerne un procédé et un système permettant d'utiliser un pseudonyme choisi et une entrée d'identification personnelle (PIE) choisie conjointement avec une carte de transaction, telle qu'une carte de crédit, une carte de débit ou une carte à valeur accumulée, par exemple. Un numéro ou un autre paramètre d'identification approprié est choisi par le titulaire du compte en tant que pseudonyme. Le titulaire du compte est ensuite invité à choisir une entrée d'identification personnelle pour des besoins de sécurité. Ce pseudonyme est lié au numéro de carte de crédit du titulaire du compte via une base de données. Lorsque le titulaire du compteur effectue une transaction avec un commerçant, la carte physique n'est pas nécessaire. Le titulaire du compte donne simplement son pseudonyme, puis son entrée d'identification personnelle. Ce mode de réalisation peut être mis en oeuvre à n'importe quel point de vente, en boutique, lors d'une vente par correspondance ou sur Internet. Le pseudonyme et l'entrée d'identification personnelle sont entrés, puis l'autorisation est renvoyée par la société émettrice de carte de crédit.
PCT/US2002/029649 2001-09-21 2002-09-20 Procede de paiement sans carte WO2003027798A2 (fr)

Priority Applications (3)

Application Number Priority Date Filing Date Title
EP02775858A EP1440400A4 (fr) 2001-09-21 2002-09-20 Procede de paiement sans carte
CA002460886A CA2460886A1 (fr) 2001-09-21 2002-09-20 Procede de paiement sans carte
AU2002341707A AU2002341707A1 (en) 2001-09-21 2002-09-20 Method for providing cardless payment

Applications Claiming Priority (4)

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US09/957,505 2001-09-21
US09/957,505 US7099850B1 (en) 2001-09-21 2001-09-21 Methods for providing cardless payment
US09/956,997 2001-09-21
US09/956,997 US7103576B2 (en) 2001-09-21 2001-09-21 System for providing cardless payment

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WO2003027798A3 WO2003027798A3 (fr) 2003-10-30

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AU (1) AU2002341707A1 (fr)
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WO2007050005A1 (fr) * 2005-10-25 2007-05-03 Udo Hinz Substitut de carte de credit
US9361611B2 (en) 2008-02-20 2016-06-07 Collective Dynamics LLC Method and system for secure mobile payment transactions
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WO2003027798A3 (fr) 2003-10-30
AU2002341707A1 (en) 2003-04-07
CA2460886A1 (fr) 2003-04-03
EP1440400A2 (fr) 2004-07-28
EP1440400A4 (fr) 2004-11-10

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