U.S. patent application number 09/757604 was filed with the patent office on 2001-05-17 for cardless payment system.
This patent application is currently assigned to First USA Bank, N.A.. Invention is credited to Campisano, Kurt M..
Application Number | 20010001204 09/757604 |
Document ID | / |
Family ID | 23190416 |
Filed Date | 2001-05-17 |
United States Patent
Application |
20010001204 |
Kind Code |
A1 |
Campisano, Kurt M. |
May 17, 2001 |
Cardless payment system
Abstract
A Credit Card holder's telephone number is assigned to his or
her credit card as an alias. The cardholder is then required to
choose a PIN for security purposes. The telephone number is linked
to the cardholder's credit card number via a database. When the
cardmember enters into a transaction with a merchant, the card need
not be present. The cardmember simply provides his or her telephone
number and then the PIN. This can be done at any point of sale such
as a store, catalog telephone order, or over the internet. The
telephone number and PIN are entered and authorization is returned
from the credit card company.
Inventors: |
Campisano, Kurt M.;
(Philadelphia, PA) |
Correspondence
Address: |
THOMAS J. SCOTT, JR., ESQ.
HUNTON & WILLIAMS
1900 K STREET, N.W.
WASHINGTON
DC
20006
US
|
Assignee: |
First USA Bank, N.A.
|
Family ID: |
23190416 |
Appl. No.: |
09/757604 |
Filed: |
January 11, 2001 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
|
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09757604 |
Jan 11, 2001 |
|
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09307597 |
May 10, 1999 |
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Current U.S.
Class: |
235/380 |
Current CPC
Class: |
G06Q 20/04 20130101;
G06Q 20/385 20130101; G06Q 20/305 20130101 |
Class at
Publication: |
235/380 |
International
Class: |
G06K 005/00 |
Claims
What is claimed is:
1. A method for using an alias to complete a transaction credit
card comprising the steps of: receiving an alias in the course of a
transaction; correlating said alias to a corresponding credit card
number; authenticating said alias; and performing said
transaction.
2. The method of claim 1 wherein said alias is a telephone
number.
3. The method of claim 1 further comprising the step of receiving a
personal identification number; and wherein said step of
authenticating includes authenticating said personal identification
number.
4. A method for assigning an alias to a credit account comprising
the steps of: creating a credit account; assigning a credit card
number to said credit account; and assigning an alias to said
credit account.
Description
FIELD OF THE INVENTION
1. This invention relates generally to a system and method for
assigning an alias, such as a phone number and a Personal
Identification Number ("PIN"), to a credit card so as to eliminate
the need for the physical presence of the card during a
transaction.
BACKGROUND OF THE INVENTION
2. There are literally thousands of different credit cards
available. Some provide frequent flier miles, others give you free
gas. Still other credit cards offer low interest rates and even
insurance for your purchases. Out of all the credit cards that
exist, none of them offer the ability to go to a store and make
purchases without the actual card. While it is possible to place an
order over the phone to a catalog company, it is still generally
required to have the card in your hand to read the card number to
the sales person and provide some additional information such as
the expiration date. Perhaps a trivial number of people have
memorized their credit card number and expiration date, but most
people have yet to commit these seldom used 20-digits to
memory.
3. Additionally, those with an active lifestyle will find it
burdensome to carry many credit cards with them during their
everyday lives. The risk of losing one's wallet or purse, or having
it stolen is an ongoing problem. The replacement process for most
credit cards is long and burdensome. If a credit card is stolen and
unauthorized charges are discovered on the account, the process to
rectify the situation is both time consuming and exhausting, often
involving sworn affidavits by the cardmember.
4. These and other drawbacks of current credit cards exist.
SUMMARY OF THE INVENTION
5. An object of the present invention is to overcome the drawbacks
of existing credit cards.
6. Another object of the present invention is to provide a system
for assigning an alias for a cardholder's credit card number using
an easy to remember number.
7. A further object of the present invention is a system and method
for enabling a cardholder to use his or her credit card without
actually having the card present at the time of purchase. This is
accomplished by cross-linking the cardholder's phone number to the
credit card number and providing the customer with a corresponding
PIN that can be changed immediately upon receipt so that it is a
number that the cardmember can easily remember. The PIN can also be
selected by the cardmember from his or her home phone. As one
method of authentication, the bank can verify the identity of the
caller by their phone number using an Automatic Number
Identification ("ANI") system which ensures a secure registration
of the PIN. The customer can then self-select the PIN he or she
wishes to use.
8. These and other objects and advantages of the invention will be
apparent from the detailed description of the preferred embodiments
which follows.
BRIEF DESCRIPTION OF THE DRAWINGS
9. FIG. 1 shows a flow charts for a method of use according to one
embodiment of the present invention according to one embodiment of
the invention.
10. FIG. 2A and 2B show a flow chart of one embodiment of the
present invention.
11. FIGS. 3A and 3B show a flow charts for the selection of a PIN
according to one embodiment of the present invention.
12. FIGS. 4A and 4B show a flow chart for the selection of a PIN
according to one embodiment of the present invention. Embodiments
of the invention may include some or all of the various components
as described below.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT
13. FIG. 1 shows one example of a cardholder transaction according
to the present invention. In FIG. 1, a credit card purchase is
commenced at any given point of purchase location, step 10. A point
of purchase location is any location where it is possible to make a
purchase using a credit card. For example, 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. Instead of providing the merchant
with the credit card for payment, or in the case of a telephone
order providing the card number and expiration date, the cardmember
will enter the cardmember's ten-digit home telephone number and PIN
into a device similar to the credit card readers in use today, step
12.
14. This device will connect to a database, perhaps the database
already maintained by the telephone company, step 14, and it will
check for authenticity. Alternatively, the credit card company may
have their own database which includes all the appropriate
information and can verify the cardholder and process the
transaction with the appropriate card, step 16.
15. The validation process should be fairly quick and will then
retrieve the credit card linked to the phone number and PIN the
cardmember has provided. After validation has succeeded, the credit
card will be charged and the merchant will receive notice of this
validation, step 18. The cardmember must then sign some sort of
receipt or authorization slip and the transaction is complete, step
20.
16. This entire process is very similar to current day credit card
transactions with the exception that instead of providing a plastic
card, the cardmember need only enter their ten-digit phone number
and PIN. The above embodiment requires a special "keypad" for use
by customers so they can enter their phone number and PIN
discreetly. Alternatively, the customer can provide the ten-digit
number and PIN directly to the merchant.
17. FIGS. 2A and 2B show a similar transaction between a cardmember
and a merchant conducted over a telephone. In FIG. 2A, a cardmember
initiates a transaction by calling a merchant over the telephone in
step 22. After identifying the item to be purchased, the cardmember
authorizes his card to be charged by providing the representative
with his ten-digit telephone number. Alternatively, the merchant
may use an ANI to determine the telephone number of the caller,
step 24. This is useful in situations where the cardmember is
calling from their home and provides an added measure of security
to make sure the authorized cardmember is the one placing the
order.
18. The transaction is continued and the card number received by
the merchant is verified using the cardmember's PIN. In step 26,
the cardmember provides the PIN to the merchant. This can be done
by having the cardmember punch in the PIN on the telephone key pad
or verbally indicating the PIN to the merchant. The ten-digit
number and PIN are verified by the merchant in step 30. The
verification process is similar to that used to verified original
credit card numbers and expiration dates. Once the number has been
verified, the merchant processes the transaction and the credit
card is charged in step 32. After the credit card has been charged,
the transaction is completed, step 34.
19. Assigning an alias and selecting a PIN are relatively easy
processes. FIGS. 3A and 3B show the activation and assignment
process for a current cardmember. A current cardmember is a person
that already has a credit card account with the credit card company
and is merely calling to activate their alias and select a PIN. The
activation process is initiated in step 26 when a current card
member receives the offer from the credit card company to activate
the alias. This offer can be received by mail, e-mail, telephone,
or any number of ways. If the offer was received by any means other
than a telephone call, the cardmember must call the credit card
company for activation, step 38. When the call is received by the
credit card company, the caller's telephone number is automatically
identified by an ANI system, step 40.
20. By determining the telephone number of the caller, 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 the system automatically retrieve
the cardmember's account information based on the telephone number
as shown in step 42. In step 44, the cardmember selects a PIN to be
used with his telephone number alias. Alternatively, the credit
card company can assign a PIN randomly. The activation process is
completed in step 46 when a credit card company mainly assigns a
PIN to the card member's account and updates a record or the system
performs this function automatically.
21. The activation process can be totally automated as well. For
example, a current cardmember would receive the offer in the mail
including a telephone number the cardmember to call for activation.
The cardmember would then call the designated number. The credit
card company could then automatically determine the cardmember's
telephone number using an ANI and present the cardmember with a
pre-recorded menu of options. By using these options the cardmember
would be able to request activation of the alias and select a PIN
number using the telephone key pad. Registration is then completed
by having the system automatically update the cardmember's account
and records with the alias and the selected PIN.
22. The activation and registration process can also be utilized by
a new cardmember. As shown in FIGS. 4A and 4B, a new member would
receive a credit card offer with an option to assign an alias to
the new account, step 48. The person can accept this offer and
apply for the credit card and alias by calling a designated number
for activation, step 50. In step 52, the credit card company can
use an ANI to determine the caller's telephone number.
Alternatively, a customer service representative can verbally
obtain the information from the card member. In step 54, 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. Preferably, 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.
23. 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
cardmember can also select a PIN as shown in step 58.
Alternatively, a PIN can be randomly assigned by the credit card
company to the new account. Registration and activation process is
completed in step 60 when the system assigns the PIN to the
cardmember'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.
24. Consumers who have a plurality of credit cards have the option
of selecting multiple PINs, each of which would correspond to a
different credit card. When making a purchase, the cardholder need
only provide the PIN corresponding to the card he or she wishes to
charge the purchase on.
25. Security measures for the Cardless Payment System 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 will be used to
handle the present invention. No new security issues exist with the
Cardless Payment System beyond the current ones faced by credit
cards today. In fact, perhaps even less security issues exist with
the Cardless Payment System due to the fact that no credit card is
being carried around by the cardmember and thus the chances of
having the credit card lost or stolen is significantly reduced. If
the cardmember decides to destroy the plastic card and rely solely
on the Cardless Payment System then the chances of the card being
lost or stolen are practically zero.
26. The registration process for the Cardless Payment System is
also unique. Using home phone numbers as the credit card alias, a
database will be used to store the matching information so as to
determine which phone numbers go with which credit cards. The
process involves keeping this data is a database such as the
telephone company's current database. Telephone companies already
have databases with consumer's phone numbers stored. Linking the
telephone number within the database to a credit card number would
allow for a seamless integration of the two.
27. Additionally, once consumers have entered this number they can
select multiple payment methods. For example, if a cardmember has
two different credit cards and a debit card, after entering their
ten-digit phone number and PIN they can choose which card to use
for payment through some sort of self-selection menu.
Alternatively, a single cardmember may have multiple PINs
representing different credit cards. It would be possible to assign
one PIN to their Visa card and another PIN to their Mastercard,
both on the same phone number.
28. Uses include point of sale wherever there is a terminal where
consumers can enter in a number. The invention is also applicable
to card not present situations ordering a product by telephone,
etc. This would allow the consumer to buy something without giving
their credit card information over the phone. All they need to do
is not in the PIN 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.
29. Other embodiments and uses of the invention will be apparent to
those skilled in the art from consideration of the specification
and practice of the invention disclosed herein. The specification
and examples should be considered exemplary only. The intended
scope of the invention is only limited by the claims appended
hereto.
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