U.S. patent application number 10/225893 was filed with the patent office on 2003-01-02 for method and system for providing temporary credit authorizations.
This patent application is currently assigned to Qwest Communications International Inc.. Invention is credited to Demoff, Jeff S., Reeves, Brad, Wolff, Alan Scott.
Application Number | 20030004879 10/225893 |
Document ID | / |
Family ID | 23252692 |
Filed Date | 2003-01-02 |
United States Patent
Application |
20030004879 |
Kind Code |
A1 |
Demoff, Jeff S. ; et
al. |
January 2, 2003 |
Method and system for providing temporary credit authorizations
Abstract
A method and system are provided for issuing credit as payment
in a consumer transaction which eliminates the need for a
traditional credit card while also minimizing any potential for
fraud or theft. The present invention responds to a request for
issuing a credit transaction number that is made concurrent with a
particular transaction. The credit transaction number is then
randomly generated and made valid only for the requested
transaction, and automatically ages a short period of time after
the request. The credit transaction numbers are continually
recycled for subsequent requests irrespective of the customer
identity. The request can be made from a mobile communication
device such as PCS telephone, or from a personal computer using an
electronic commerce program. Transactions between customers and
registered or known vendors can be automatically carried out by a
centralized service provider without generating the unique,
temporary number, or without the need for the customer or vendor to
exchange personal information.
Inventors: |
Demoff, Jeff S.; (Erie,
CO) ; Reeves, Brad; (Berthoud, CO) ; Wolff,
Alan Scott; (Louisville, CO) |
Correspondence
Address: |
QWEST COMMUNICATIONS INTERNATIONAL INC
LAW DEPT INTELLECTUAL PROPERTY GROUP
1801 CALIFORNIA STREET, SUITE 3800
DENVER
CO
80202
US
|
Assignee: |
Qwest Communications International
Inc.
Denver
CO
|
Family ID: |
23252692 |
Appl. No.: |
10/225893 |
Filed: |
August 22, 2002 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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10225893 |
Aug 22, 2002 |
|
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|
09321934 |
May 28, 1999 |
|
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6456984 |
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Current U.S.
Class: |
705/44 |
Current CPC
Class: |
G06Q 20/10 20130101;
G06Q 20/105 20130101; G06Q 20/108 20130101; G06Q 20/40 20130101;
G06Q 20/02 20130101; G06Q 20/102 20130101; G06Q 20/042 20130101;
G06Q 40/025 20130101; G06Q 20/385 20130101; G06Q 20/04 20130101;
G06Q 20/1085 20130101; G06Q 20/12 20130101 |
Class at
Publication: |
705/44 |
International
Class: |
G06F 017/60 |
Claims
What is claimed is:
1. A method for issuing credit as payment in a consumer transaction
comprising: requesting issuance of a credit transaction number
concurrent with the consumer transaction, the request comprising
supplying information regarding the transaction amount, and
identification of the customer and vendor; determining if the
request is acceptable; randomly generating a unique credit
transaction number if the request is acceptable, the unique
transaction number being valid only for a predetermined period of
time and for the requested transaction; and sending the generated
unique credit transaction number for completion of the consumer
transaction.
2. The method of claim 1 wherein the generated unique credit
transaction number is sent to the customer.
3. The method of claim 1 wherein the generated unique credit
transaction number is sent to the vendor.
4. The method of claim 1 further comprising determining that the
identified vendor is registered, automatically debiting a customer
account and making payment to the vendor without generating a
unique credit transaction number.
5. The method of claim 1 wherein requesting the credit transaction
number is performed using a mobile communication device.
6. The method of claim 1 wherein requesting the credit transaction
number is performed using a PCS telephone.
7. The method of claim 6 wherein the unique credit transaction
number is sent to the PCS telephone for display, and the vendor
manually enters the displayed number into a credit verification
system for approval.
8. The method of claim 6 wherein the unique credit transaction
number is sent to the PCS telephone, and the PCS telephone is used
as an input device for entering the generated unique credit
transaction number into a vendor credit verification system for
approval.
9. The method of claim 1 wherein requesting the credit transaction
number is performed using a personal computer.
10. A system for issuing credit as payment in a consumer
transaction involving a consumer and a vendor comprising: a
transaction processing subsystem located at a service provider; and
a consumer credit request input device capable of communicating
with the transaction processing subsystem, the input device
arranged to generate a request for issuance of a credit transaction
number concurrent with the consumer transaction and sending the
request to the transaction processing subsystem, wherein the
transaction processing subsystem is arranged to randomly generate a
unique credit transaction number if the request is acceptable, said
unique transaction number being valid only for a predetermined
period of time and for the requested transaction.
11. The system of claim 10 wherein the transaction processing
subsystem is arranged to send the generated unique credit
transaction number to the consumer credit request input device.
12. The system of claim 10 wherein the transaction processing
subsystem is arranged to send the generated unique credit
transaction number to the vendor.
13. The system of claim 10 wherein the transaction processing
subsystem is arranged to determine that the vendor is registered,
and automatically debit a customer account and pay the vendor
without generating a unique credit transaction number.
14. The system of claim 10 wherein the credit request input device
comprises a mobile communication device.
15. The system of claim 10 wherein the credit request input device
comprises a PCS telephone.
16. The system of claim 15 wherein the PCS telephone comprises a
display, and the unique credit transaction number is sent to the
PCS telephone for output on the display, wherein the vendor
manually enters the displayed number into a credit verification
system for approval.
17. The system of claim 15 wherein the transaction processing
subsystem is arranged to send the generated unique credit
transaction number to the PCS telephone, and the PCS telephone
comprises a proximity output device for entering the received
number into a vendor credit verification system for approval.
18. The system of claim 10 method of claim 1 wherein the credit
request input device comprises a personal computer.
19. A method for automatic processing and payment of a transaction
between a customer and a vendor comprising: establishing a
centralized service provider through which electronic commerce may
flow, said centralized service provider being able to identify both
the customer and the vendor of the transaction; receiving a
purchase request from the customer at the centralized service
provider; determining if the request is acceptable; and
automatically debiting a customer account established with the
centralized service provider, and paying the vendor.
Description
CROSS-REFERENCE TO RELATED APPLICATIONS
[0001] This application is a continuation of U.S. application Ser.
No. 09/321,934 filed May 28, 1999.
TECHNICAL FIELD
[0002] The present invention generally relates to consumer credit
arrangements used when purchasing goods or services, and more
particularly to a method and system for issuing credit that
minimizes potential credit card fraud or theft when consumers are
purchasing goods or services.
Background Art
[0003] Electronic commerce is a rapidly growing way of conducting
business. This growth is further fueled by use of the Internet.
Notwithstanding this growth in electronic commerce, products and
services are still purchased in person at established retail
locations. Most people pay for these endeavors by using an
assortment of credit cards, cash, and checks. Currently, the best
commerce tool available for bridging the gap between on-line and
off-line worlds of commerce is a credit card. Credit cards allow
the same payment mechanism in both worlds, primarily because they
offer fast and remote authorization. However, credit cards also
suffer the drawbacks of providing a lack of anonymity, fraud
potential (especially on-line), and expensive fees.
[0004] One solution is to use so-called "smart cards" which are
designed to be just as flexible and safe as cash, yet offer the
electronic benefits of credit and debit cards. Though achieving
some success in Europe, the use of such smart cards has not been
generally accepted in the US, partly due to the public's reluctance
to give up their loyalty and incentive credit card programs while
finding room for another card in their already crowded pocketbook.
Vendors and banks balk at the high cost of creating the
infrastructure to support smart card applications. Furthermore,
since traditional credit cards are the current method of electronic
commerce, use of smart cards would reduce the overall cost of
central transaction authentication, which otherwise forms a
significant profit source for traditional credit card issuers.
[0005] Credit card companies currently have centrality in the
burgeoning hybrid electronic/off-line commerce world, and the fees
they collect from merchants for transactions and from consumers in
debt financing are substantial. However, the customer no longer
seeks prestige with traditional credit cards, but rather
convenience, safety, and worthwhile incentives among their infinite
choices in the competitive marketplace. Therefore a need exists for
an alternative manner of conducting payment in commercial
transactions which is as convenient as a credit card, but safer and
more cost effective.
DISCLOSURE OF INVENTION
[0006] It is therefore an object of the present invention to
provide a system and method for issuing credit in a consumer
transaction which eliminates the need for the consumer to carry a
credit card.
[0007] It is another object of the present invention to provide a
system and method for issuing credit in a consumer transaction
which minimizes the potential for theft or fraudulent use of the
credit.
[0008] It is yet another object of the present invention to provide
a system and method for issuing credit in a consumer transaction
which maximizes convenience to the consumer without requiring a
credit card.
[0009] It is still another object of the present invention to
provide a system and method for issuing credit in a consumer
transaction which minimizes the potential for theft or fraudulent
use of the credit by generating temporary, single transaction
credit card numbers.
[0010] It is yet another object of the present invention to provide
a system and method for issuing credit in a consumer transaction
which utilizes a mobile phone or a personal computer (PC) as a way
of generating credit card numbers that are valid for only a single
transaction.
[0011] In accordance with these and other objects, the present
invention provides a method for issuing credit as payment in a
consumer transaction between a consumer and a vendor that includes
initially making a request for issuance of a credit transaction
number concurrent with the consumer transaction, where the request
includes information regarding the transaction amount, and
identification of the customer and vendor. In response to the
request, a unique credit transaction number is randomly generated
if the request is acceptable, where the unique transaction number
is only valid for a predetermined period of time and for the
requested transaction. The generated credit transaction number is
then sent either to the requesting consumer, or the identified
vendor to allow completion of the transaction.
[0012] In accordance with another aspect of the present invention,
a system is provided for issuing credit as payment in a consumer
transaction involving a consumer and a vendor that includes a
transaction processing subsystem located at a service provider, and
a consumer credit request input device capable of communicating
with the transaction processing subsystem. The input device is
arranged to generate a request for issuance of a credit transaction
number concurrent with the consumer transaction, and send the
request to the transaction processing subsystem. The transaction
processing subsystem is arranged to randomly generate a unique
credit transaction number if the request is acceptable, where the
unique transaction number is valid only for a predetermined period
of time and for the requested transaction.
[0013] In accordance with other features, the request is made using
a mobile communication device such as PCs telephone, or a personal
computer. The generated number can be sent either to the requesting
device for manual input into a vendor credit verification system,
or directly to the vendor.
[0014] In accordance with still another aspect of the present
invention, a method is provided for automatic processing and
payment of a transaction between a customer and a vendor which
includes the steps of establishing a centralized service provider
through which electronic commerce may flow, and the centralized
service provider is arranged to identify both the customer and the
vendor of the transaction. A purchase request is received from the
customer at the centralized service provider; and a determination
of acceptability of the transaction is made. If acceptable, a
customer account established with the centralized service provider
is automatically debited, and the vendor is automatically paid.
[0015] The above objects and other objects, features, and
advantages of the present invention are readily apparent from the
following detailed description of the best mode for carrying out
the invention when taken in connection with the accompanying
drawings.
BRIEF DESCRIPTION OF DRAWINGS
[0016] FIG. 1 is a block diagram of a credit management/issuance
system in accordance with an exemplary embodiment of the present
invention;
[0017] FIG. 2 is a representation of an initial P.C. screen on-line
embodiment of the present invention which allows a customer to
restrict access to the credit issuance application;
[0018] FIG. 3 is a representation of a screen presentation which is
used to initiate the credit issuance process of the present
invention;
[0019] FIG. 4 is a representation of an account summary screen
where customers can view and manage their purchases;
[0020] FIG. 5 is a representation of a summary and transaction list
for an incentive reward program of the present invention;
[0021] FIG. 6 is a management console for the incentive program of
FIG. 5;
[0022] FIG. 7 is a story board illustrating an on-line purchase
transaction between a customer and a registered vendor; and
[0023] FIG. 8 is a flow chart illustrating the overall process for
issuing a temporary credit transaction number in accordance with
the present invention.
BEST MODE FOR CARRYING OUT THE INVENTION
[0024] FIG. 1 provides a block diagram for a credit
management/issuance system 10 in accordance with an exemplary
embodiment of the present invention. The basic components of system
10 include a service provider 12 connected to a cellular and/or PCS
mobile telephone network 14, and a wireline telephone network 16.
As described in more detail below, mobile telephone network 14 is
used to provide communication with at least one wireless customer
18, while wireline network 16 is used to facilitate communication
with PC customer(s) 20 such as via an Internet server 22, as well
as registered businesses 24 and non-registered businesses 26.
Service provider 12 includes a suitable administrative and
transaction processing subsystem 28, accounting subsystem 30, and
system database 32.
[0025] When a customer wishes to purchase from a unregistered
vendor an item traditionally handled using a credit card, a request
is sent to the service provider for issuance of a credit
transaction number. Processing subsystem 28 is configured with
suitable hardware and programming to randomly generate unique,
temporary credit transaction numbers that are valid only for a
single purchase transaction and a very short period of time. The
temporary credit number takes the place of a permanently assigned
number issued in connection with a traditional credit card. In
response to receipt of the request, administrative and processing
subsystem 28 accesses database 32 to determine credit status of the
requesting customer, and generates a unique, temporary credit
transaction number valid only for the requested transaction and
transaction amount. In other words, for each transaction, a new
number is given which is authorized only for a specific date and
time, for a specific amount, and from a unique personal ID. The
unique ID can be derived from either a secure log-on session ID or
a PCS/cellular telephone unique ID number.
[0026] The customer account in database 32 is subsequently updated
to note the transaction information as well as the number assigned.
To the unregistered business/vendor, the assigned temporary "credit
card" number is simply processed and validated using the same
traditional channels as conventional credit card providers. In this
manner, the present invention is able to dramatically reduce the
potential for fraud because even if a temporarily assigned number
were stolen, the number is only valid or useable with a
specifically identified transaction and for a very limited period
of time.
[0027] In further accordance with the present invention, overall
service is improved by allowing businesses to register (as
represented by businesses 24 in FIG. 1) for receipt of vendor or
individual IDs. When a customer wants to purchase products and
services from a business which has registered, the service provider
acts as a centralized broker for the transaction because it would
already possess the requisite personal information for both the
customer and the registered vendor. Thus, once the specific
transaction information is received, there is no need for the
service provider to actually generate a temporary credit
transaction number as described above because the appropriate
accounts can be automatically debited/paid without further action
by either the customer or vendor. More specifically, registration
allows the service provider to store appropriate payment, address,
and shipping information in a business/vendor file as well as the
customer database. The customer can be automatically billed for
example through a telephone account, while the vendor can be paid
electronically for the transaction.
[0028] In accordance with one embodiment of the present invention,
the temporary credit transaction number is requested using a PCS or
cellular telephone unit 34. In this embodiment, the temporary
transaction number can be generated, assigned, and sent back to the
requesting mobile telephone unit for storage in a memory.
Alternatively the credit transaction number can be sent directly to
the identified business for processing like a conventional credit
card. Thus, the present invention advantageously eliminates the
need for a traditional plastic credit card by adapting a mobile
telephone unit to function as a "smart" card based on transferred
data specific to the transaction at hand.
[0029] In an on-line embodiment of the present invention, the user
launches an E-commerce credit request program from their PC 20.
FIGS. 2 through 5 illustrate examples of PC screens provided by the
program. More specifically, FIG. 2 is a representation of an
initial PC screen which requires input of a PIN number to restrict
access to launching the credit issuance application. FIG. 3 is a
representation of a screen used to initiate the credit issuance
process of the present invention.
[0030] As shown, the customer enters a purchase amount in a field
100, and a vendor name/address if the vendor is not registered in a
field 102. The purchaser then launches the request using a purchase
request field 104. If the request is approved, processing subsystem
28 responds by sending the temporary credit transaction number
assigned to this transaction which is displayed in a field 106. A
mock or faux expiration date for the temporary credit transaction
number is also displayed in a field 108 to allow completion of the
transaction. This faux expiration date is not to be confused with
the period of authorization for the generated credit transaction
number, which is set to a short period of time, such as one minute.
At the end of this period, the temporary number is no longer valid.
The actual look and feel of this screen could be altered as needed
for use with any information appliance such as PDA, PCS, or screen
phone.
[0031] FIG. 4 is a representation of an account summary screen
where customers can view and manage their purchases. As shown, the
account summary is presented in a spread sheet format and provides
cumulative transaction and account balance information, as well as
itemized details regarding each transaction. In addition, the
screen is preferably customizable to allow the user to sort
transactions by category, month, or other available options. The
application program is also preferably arranged to format the
account information for import into a separate accounting/book
keeping program loaded on the customer's PC.
[0032] In accordance with another aspect of the present invention,
an award incentive program can be included and managed using
screens as represented in FIGS. 5 and 6. More specifically, for
each dollar spent using the credit issuance process of the present
invention, a customer can be rewarded with phantom dollars which
can be used to purchase other goods or services offered by the
service provider.
[0033] Several scenarios are described below to provide a better
understanding of the various aspects and advantages of the present
invention. In a first scenario represented in FIG. 7, a customer
decides to purchase certain goods in an on-line electronic commerce
transaction. If the vendor is registered with a vendor ID, a direct
link 200 can be provided to the service provider such that the
customer only has to agree to the purchase and the service provider
will automatically debit and credit the customer and vendor
accounts accordingly. An alternative embodiment could still have
the service provide create a temporary credit transaction number
and automatically send it through to a registered vendor's normal
credit authentication system. However, the direct link and
automatically processing arrangement is preferred because of
improved security, lower system cost, and faster processing turn
around. Verification of the purchase request and acknowledgment of
processing completion are noted respectively at blocks 202 and 204.
Also, other relevant information can be transmitted to the vendor
such as customer shipping and address information. The charge could
then be billed separately to the customer such as part of their
phone bill, and the vendor would be credited in the same manner as
any other credit card purchase. Thus, the present invention
eliminates both the potential for credit card fraud, and the need
for a customer to repeat entry of shipping and address
information.
[0034] One way of providing a direct link from a registered vendor
is to embed an HTML information link to the service provider from
inside a vendor's web page. A vendor who chooses to provide this
direct link would by default also choose to be a registered vendor.
This process of registering would consist of setting up a method of
recording valid transactions with any given vendor to determine the
information needed by the vendor to receive payment and ship the
product, as well as providing the vendor with a unique link to
embed in their pages that would notify the customer of the vendor's
unique Vendor ID.
[0035] Thus, while the E-commerce program can be arranged to work
in conjunction with a registered vendor as described above, a
preferred embodiment of the present invention carries out the
credit transaction process directly with registered vendors. The
randomly generated or unique credit transaction number would be
sent to the customer only if the vendor is not registered . For
example, any current web site which accepts credit card payments
would fall into this category.
[0036] For such an unregistered vendor, the customer would access
the E-commerce program as described above. After entering the
purchase price, the temporary credit transaction number is
generated for that particular transaction and is authorized only
for that session ID, at that date and time (i.e., a limited time
interval thereafter), and for the specific amount of the purchase.
Since the credit transaction number is temporary, the numbers are
continuously recycled by the service provider irrespective of the
assigned customer.
[0037] For example, a customer purchases books from an unregistered
vendor. The transaction proceeds by selecting the books and ringing
them up at a point-of-sale or checkout. When the vendor asks for
the customer's credit card information, the customer merely enters
the total purchase price into the electronic commerce applet, and a
temporary credit transaction number is generated by the service
provider which can be pasted to the vendor's form. The customer
would still have to send other information such as a shipping
address, but the credit card number would be fraud proof because
authorization extends only to the transaction amount of the
transaction occurring at that specific date and time, and by that
particular customer. In other words, the service provider would
have already authenticated the customer such as through receipt of
a unique session ID assigned. Such a unique session ID is either
automatically generated at the time of log-on to the Internet, or
via a specific request if the Internet connection is a public or
continual type connection. Thus, the temporary credit number could
not be subsequently used by anybody else for fraudulent purchases.
The vendor simply process the number through a conventional
verification system like any other credit card number for
appropriate authorization.
[0038] In a second scenario, a PCS telephone allows a similar
arrangement for off-line commerce. More specifically, a customer
walks into a retail location. After selecting the desired goods,
the customer goes to a checkout counter and receives a total. Using
a PCS phone as a smart card, the customer can dial a vendor ID
number on the phone, identify and key-in a checkout line or
point-of-sale designator, actuate a pound key, verify the purchase
amount, and the clerk would receive authorization . If the
particular vendor is not a registered vendor, the credit
transaction number would be returned to the PCS phone, which could
be used at any vendor who normally accepts credit cards. Again the
temporary credit transaction number would have the same safeguards
as noted above, i.e., is valid only for the transaction amount at
the specified date and time, and from the requesting mobile
telephone.
[0039] More specifically, in one embodiment involving an
unregistered vendor, the customer could verbally give the
temporarily assigned credit card information to a point-of-sale
clerk. This information would appear on a customer's information
device and provide a generated number as previously discussed.
Alternatively, a suitable proximity device could be incorporated
into the mobile telephone device to allow the mobile telephone to
generate an output signal corresponding to the temporary credit
transaction number which could be received by a receiving device
connected to the point-of-sale system. The transmission of the
output signal could be controlled via a user actuated key.
[0040] In an alternative embodiment involving registered vendors,
the service provider would automatically process the transaction
and debit and credit the appropriate accounts. Alternatively, the
service provider could electronically send the temporary credit
transaction number or similar transaction information directly to a
vendor cash register system to cause registering of the
transaction. For example, after a customer enters a registered
supermarket and obtains the desired items, the customer can either
dial an ID code assigned to the store into the customer's PCS
device, or pre-store the store code into memory for "speed
dialing." The customer further dials a number identifying the
point-of-sale or check-out terminal, and then sends the call for
transaction initiation. The service provider responds by sending
the authorization and temporarily assigned credit transaction
number to the point-of-sale terminal via a secure Internet or other
online connection to complete the purchase transaction.
[0041] It is to be understood that other communication devices
could be used in the same manner as a PCS telephone. For example,
the request could come from a landline phone, palm PC type device,
Web phone, or screen phone. However, the device preferably includes
a display for visual display of information so as to keep
transaction verification simple. A landline ID could be determined
if a customer were calling from their own phone or business phone
based on the same technology used for Caller ID. For landline
access from pay-phones or various extensions in a home or business
in which many people have access, a user PIN number would need to
be previously assigned.
[0042] Referring now to FIG. 8, a flow chart shows the overall
process for issuing a temporary credit transaction number in
accordance with the present invention. More specifically, at block
300 a request is received for generating a temporary credit
transaction number. The request includes information regarding the
transaction, such as purchase amount, date and time of purchase,
customer identification, and vendor identification. As indicated at
block 302, if the request is approved, the process determines if
the identified vendor is registered as indicated at block 304. If
the request was not approved, a denial message is sent at block
306. As indicated at block 308, if the vendor is registered, the
service provider automatically processes the transaction and debits
and pays the appropriate accounts. An acknowledgment is sent at
block 310 to confirm completion of the transaction.
[0043] However, if the vendor is not registered, a unique,
temporary credit transaction number is randomly generated at block
312. The temporary credit transaction number is only validated for
a limited period of time and for the requested transaction. The
process also looks for input of additional information such a
mailing address at block 314. Then, the generated credit
transaction number is sent at block 316 to either the requesting
customer, or the vendor for verification and finalization of the
transaction.
[0044] It is to be further noted that the credit
authorization/payment and commerce arrangement for registered
vendors can be readily applied to other paradigms where a
particular entity has a position of centrality through which
electronic commerce may flow, while also being able to identify the
respective end points (i.e., buyer and seller) of the transaction.
An satellite system program provider provides one example of such a
centralized entity. More specifically, the system permits a
customer to order pay-per-view programming using a remote control,
with such selections appearing on a periodic billing statement. In
such a situation, a satellite customer could watch a shopping
channel, and select items for purchase using the remote control.
The programming provider can then broker the transaction by
automatically processing the purchase request, and debit and pay
the respective customer and shopping channel accordingly. The goods
could then be shipped to the customer with the charge appearing on
the periodic monthly statement.
[0045] Because the programming provider can identify both the
customer and the vendor, the transaction can be brokered between
the two parties without the use of a traditional credit card.
[0046] While embodiments of the invention have been illustrated and
described, it is not intended that these embodiments illustrate and
describe all possible forms of the invention. Rather, the words
used in the specification are words of description rather than
limitation, and it is understood that various changes may be made
without departing from the spirit and scope of the invention.
* * * * *