U.S. patent application number 13/354220 was filed with the patent office on 2012-05-10 for system and method for automatic reconciliation of transaction account spend.
This patent application is currently assigned to American Express Travel Related Services Company, Inc.. Invention is credited to Fred Bishop, Bradley Owen Matthews.
Application Number | 20120116933 13/354220 |
Document ID | / |
Family ID | 46150495 |
Filed Date | 2012-05-10 |
United States Patent
Application |
20120116933 |
Kind Code |
A1 |
Matthews; Bradley Owen ; et
al. |
May 10, 2012 |
SYSTEM AND METHOD FOR AUTOMATIC RECONCILIATION OF TRANSACTION
ACCOUNT SPEND
Abstract
A system and method for facilitating automatic reconciliation of
transaction card transactions is disclosed, wherein a user may
request single-use account codes via the Internet. The system
comprises various hardware and software systems to enable a card
member, program administrator, or any other designated third-party
to request one or more single-use account codes. The requestor may
further assign a descriptor for each of the one or more account
codes. After receiving a requested account code, the requestor may
communicate the account code to a merchant to facilitate a purchase
transaction. The system retrieves a list of transactions from the
card issuer at regular intervals, matches the account codes in the
list to an account code and associated descriptor, and records the
reconciled transaction within a database.
Inventors: |
Matthews; Bradley Owen; (Oak
Hill, VA) ; Bishop; Fred; (Glendale, AZ) |
Assignee: |
American Express Travel Related
Services Company, Inc.
New York
NY
|
Family ID: |
46150495 |
Appl. No.: |
13/354220 |
Filed: |
January 19, 2012 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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11611034 |
Dec 14, 2006 |
8121941 |
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13354220 |
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09800461 |
Mar 7, 2001 |
7627531 |
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11611034 |
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60187620 |
Mar 7, 2000 |
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60200625 |
Apr 28, 2000 |
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60213323 |
Jun 22, 2000 |
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Current U.S.
Class: |
705/30 |
Current CPC
Class: |
G06Q 30/04 20130101;
G06Q 20/10 20130101; G06Q 20/14 20130101; G06Q 20/00 20130101; G06Q
20/409 20130101; G06Q 30/0226 20130101; G06Q 30/0215 20130101; G06Q
40/12 20131203; G06Q 10/04 20130101; G06Q 20/385 20130101; G06Q
20/04 20130101 |
Class at
Publication: |
705/30 |
International
Class: |
G06Q 10/00 20120101
G06Q010/00 |
Claims
1. A method comprising: comparing, by a reconciliation computer,
transaction details of transactions with a transaction descriptor
of an account code record to verify said transactions;
categorizing, by said computer and based on said transaction
descriptor, said transactions into a grouping; and reconciling, by
said computer, said transactions to an accounting system based upon
said transaction descriptor.
2. The method of claim 1, wherein at least one of said groupings
and said transaction descriptor are user-defined.
3. The method of claim 1, wherein said transaction descriptor is
associated with at least one of a product category, a budget
category, and an entry in an accounting system.
4. The method of claim 1, wherein said account code record is
associated with a use constraint.
5. The method of claim 1, wherein said account code record is
associated with a use constraint, and wherein said use constraint
comprises at least one of a transaction amount limit, an expiration
date, a list of authorized service establishments, authorized
locations, authorized product types, authorized manufacturers,
authorized industry, and authorized transaction dates.
6. The method of claim 1, wherein said account code record is
associated with a use constraint, and wherein said use constraint
enables said account code to be used to facilitate a purchase
transaction with a service establishment according to at least one
of: manufacturer, industry, product type, and service type.
7. The method of claim 1, wherein said transaction descriptor is
associated with an account code to create an account code
record.
8. The method of claim 1, wherein a statement is produced and said
statement comprises at least one of said grouping and said
transaction descriptor.
9. The method of claim 1, wherein said account code record causes
at least one of a decline, a partial decline, a request to use
personal finds, a request to use another account, a request for
additional authentication credentials, a decline based upon a
status of said transaction account, a request to use loyalty
points, a request to charge at least a portion of said transaction
to another company, and a request to charge at least a portion of
said transaction to a vendor.
10. The method of claim 1, further comprising retrieving said
account code record from an account issuer.
11. The method of claim 1, wherein said account code record is
associated with an account code that is restricted to a certain
geographic area.
12. The method of claim 1, further comprising receiving request for
an account code record.
13. The method of claim 1, further comprising receiving said
transaction details from a transaction processor.
14. An article of manufacture including a non-transitory, tangible
computer readable medium having instructions stored thereon that,
in response to execution by a computer-based system for
reconciliation, cause the computer-based system to perform
operations comprising: comparing, by said computer-based system,
transaction details of transactions with a transaction descriptor
of an account code record to verify said transactions;
categorizing, by said computer-based system and based on said
transaction descriptor, said transactions into a grouping; and
reconciling, by said computer-based system, said transactions to an
accounting system based upon said transaction descriptor.
15. The article of claim 14, wherein at least one of said groupings
and said transaction descriptor are user-defined.
16. The article of claim 14, wherein said transaction descriptor is
associated with at least one of a product category, a budget
category, and an entry in an accounting system.
17. The article of claim 14, wherein said account code record is
associated with a use constraint.
18. The article of claim 14, wherein said account code record is
associated with a use constraint, and wherein said use constraint
comprises at least one of a transaction amount limit, an expiration
date, a list of authorized service establishments, authorized
locations, authorized product types, authorized manufacturers,
authorized industry, and authorized transaction dates.
19. The article of claim 14, wherein said account code record is
associated with a use constraint, and wherein said use constraint
enables said account code to be used to facilitate a purchase
transaction with a service establishment according to at least one
of: manufacturer, industry, product type, and service type.
20. A system comprising: a processor configured for reconciliation,
a. tangible, non-transitory memory configured to communicate with
the processor, the tangible, non-transitory memory having
instructions stored thereon that, in response to execution by the
processor, cause the processor to perform operations comprising:
comparing, by said processor, transaction details of transactions
with a transaction descriptor of an account code record to verify
said transactions; categorizing, by said processor and based on
said transaction descriptor, said transactions into a grouping; and
reconciling, by said processor, said transactions to an accounting
system based upon said transaction descriptor.
Description
REFERENCE TO RELATED APPLICATION
[0001] This application is a continuation of, and claims priority
to, U.S. Ser. No. 11/611,034 filed on Dec. 14, 2006 and entitled
"SYSTEM AND METHOD FOR AUTOMATIC RECONCILIATION OF TRANSACTION
ACCOUNT SPEND," The '034 application is a continuation-in-part of
U.S. Pat. No. 7,627,531 issued on Dec. 1, 2009 (aka U.S. Ser. No.
09/800,461, filed Mar. 7, 2001) and entitled "System for
Facilitating a Transaction." The 531 patent claims priority to U.S.
provisional applications: (1) Ser. No. 60/187,620, filed Mar. 7,
2000, (2) Ser. No. 60/200,625, filed Apr. 28, 2000, and (3) Ser.
No. 60/213,323, filed Jun. 22, 2000.
FIELD OF THE INVENTION
[0002] The invention generally relates to the automated
reconciliation of card member spend, and more particularly, to a
system and method for providing single-use account codes each
having a designation with a descriptor of a specific spend
transaction.
BACKGROUND OF THE INVENTION
[0003] Corporations often empower employees to execute purchase
transactions on behalf of the company in the course of day-to-day
operations. Such purchases may include, for example, office
supplies, client entertainment, travel expenses, and/or the like.
It is generally accepted among businesses that the most convenient
and safe manner for providing this empowerment is through opening a
corporate transaction card account. Through a centralized corporate
account, the employer may disperse any desired number of
transaction cards to its workforce. However, tracking spending and
reconciling accounting systems for a large number of corporate
transaction cards is most often a time consuming and error prone
task.
[0004] Traditionally, corporate accounting departments have relied
on spending disclosure among each card carrying employee.
Disclosure policies vary among corporations. For example, some may
require the employee to submit a receipt and description of the
charge following each purchase transaction. Others may require the
employee to turn in receipts and a spending report at the end of
each month. In either case, the accounting department is charged
with the task of matching each billing statement entry with a
corresponding receipt and/or entry in a spending report.
[0005] Regardless of policy, accounting departments regularly
assign descriptive elements to the transactions listed in a billing
statement in order to properly account for the purchases.
Presently, most of the details are added to the statement after the
purchase has been made and the transaction details are reviewed.
However, this can be unreliable and resource intensive, especially
in environments incurring a high level of transaction card spend.
As such, there is a need for a system and method for performing
highly reliable, pre-reconciliation of transactions by assigning an
appropriate descriptive element to a single-use account number
prior to its use. Such system may use preconfigured descriptive
elements to match charges appearing within a billing statement with
descriptive elements to present the corporation with a reconciled
transaction to the business.
SUMMARY OF THE INVENTION
[0006] The invention includes a system and method for automatically
describing and/or reconciling large volumes of transaction card
transactions. The system provides pre-reconciliation of
transactions in accordance with an assignment of appropriate
descriptive elements to an account number prior to use. The system
includes an interface wherein program administrator may request one
or more account numbers that are associated with a primary card
account number, add a transaction descriptor to each account
number, and specify constraints. Constraints may include, for
example, an account number expiration date, a transaction amount
limit, the type of spend the account number may be used for, and/or
the like. Each account number is limited to a single purchase
transaction, and as the charge posts to the account, the system
matches the descriptive element to the transaction details.
BRIEF DESCRIPTION OF THE DRAWINGS
[0007] A more complete understanding of the invention may be
derived by referring to the detailed description and claims when
considered in connection with the Figures, wherein like reference
numbers refer to similar elements throughout the Figures, and:
[0008] FIG. 1 is an overview of an exemplary system for
facilitating a transaction.
[0009] FIG. 2 is a flow diagram of exemplary processes of the
present invention;
[0010] FIG. 3 is a web page screen shot of a card provider's
exemplary splash page for a transaction system;
[0011] FIG. 4 is a web page screen shot of a card provider's
exemplary online registration page for a transaction system;
[0012] FIG. 5 is a web page screen shot of a card provider's
exemplary online log-in page for a transaction system;
[0013] FIG. 6 is a web page screen shot of a card provider's
exemplary online drop-down menu used to select a primary charge
card in the foreground and an online merchant's payment web page in
the background;
[0014] FIG. 7 is a web page screen shot, displaying in the
foreground, an exemplary secondary transaction number (e.g.,
Private Payments.TM. number) returned to the user; and in the
background, a merchant's payment web page;
[0015] FIG. 8 is a block diagram of exemplary components of the
present invention;
[0016] FIG. 9 is a block diagram of an example of some of the
exemplary data structure of the STN database of the present
invention;
[0017] FIG. 10 is a flow chart of an exemplary secondary
transaction number generation process of the present invention;
[0018] FIG. 11 is a flow diagram of an exemplary transaction
authorization phase of the present invention;
[0019] FIG. 12 is an screen shot of an exemplary transaction
history report of the present invention;
[0020] FIG. 13 is a flow diagram depicting an exemplary embodiment
of the present invention involving an electronic line of credit
system;
[0021] FIG. 14 is a flow diagram depicting one embodiment of an
exemplary transaction system of the present invention used to
facilitate a non-currency based membership rewards program;
[0022] FIG. 15 is a flow diagram depicting a second embodiment of
an exemplary transaction system of the present invention used to
facilitate a membership rewards program;
[0023] FIG. 16 is a block diagram illustrating the major exemplary
system components for automatically reconciling, according to an
embodiment of the present invention;
[0024] FIG. 17 is an exemplary overview process diagram for
automatic reconciliation of card transactions, according to an
embodiment of the present invention;
[0025] FIG. 18 is an exemplary process diagram for facilitating a
purchase transaction through a single-use account code, according
to an embodiment of the present invention;
[0026] FIG. 19 is an exemplary process diagram for facilitating a
daily reconciliation of card transactions, according to an
embodiment of the present invention;
[0027] FIG. 20 is an exemplary process diagram for facilitating a
monthly reconciliation of card transactions, according to an
embodiment of the present invention; and,
[0028] FIG. 21 is an exemplary database table for maintaining
single-use account codes, according to an embodiment of the present
invention.
DETAILED DESCRIPTION OF EXEMPLARY EMBODIMENTS
[0029] The detailed description of exemplary embodiments of the
invention herein makes reference to the accompanying drawings,
which show the exemplary embodiment by way of illustration and its
best mode. While these exemplary embodiments are described in
sufficient detail to enable those skilled in the art to practice
the invention, it should be understood that other embodiments may
be realized and that logical and mechanical changes may be made
without departing from the spirit and scope of the invention. Thus,
the detailed description herein is presented for purposes of
illustration only and not of limitation.
[0030] For the sake of brevity, conventional data networking,
application development and other functional aspects of the systems
(and components of the individual operating components of the
systems) may not be described in detail herein. Furthermore, the
connecting lines shown in the various figures contained herein are
intended to represent exemplary functional relationships and/or
physical couplings between the various elements. It should be noted
that many alternative or additional functional relationships or
physical connections may be present in a practical system.
[0031] In general, the invention includes a system and method for
automatically reconciling transaction card transactions through the
use of single-use account codes that are created for a specific
purchase transaction. While the invention contemplates the use of
one or multiple use account codes, the invention will be described
with respect to single-use account codes. For examples of
single-use account codes, see. Patent Application Publication No.
2006/0076400, "Limited Use PIN System and Method," filed on Oct. 7,
2004, and Patent Application Publication No. 2001/0034720, "System
for Facilitating a Transaction," filed on Mar. 7, 2001, both of
which are incorporated by reference. 2006/0076400 discloses a
system for facilitating transactions via a limited use PIN that is
associated with a primary account and/or PIN number, wherein the
limited use PIN is presented to the merchant to initiate a purchase
transaction. 2001/0034720 discloses a system for facilitating a
transaction using a secondary transaction number that is associated
with a cardholder's primary account. The cardholder may provide the
secondary transaction number, often with associated limited-use
conditions, to a merchant to facilitate a more secure and confident
transaction.
[0032] In one embodiment, the invention includes a unique system
for facilitating transactions that is easily and readily adaptable
to existing commercial transaction processing systems. While the
system may contemplate upgrades or reconfigurations of existing
processing systems, changes to cardholder or merchant systems are
not necessarily required by the present invention. For example, the
present system may contemplate, but does not require: downloading
of software modules; a digitally-based, non-physical commerce card;
activation or deactivation of the secondary transaction number; and
certain embodiments do not require the existing online customer to
separately register for the service. Moreover, the transaction
system herein described can be seamlessly integrated into current
electronic commerce processes with minimal to no changes to
existing systems used by cardholders or merchants.
[0033] As used herein, "transaction" or similar terms may include
any exchange of a monetary value for goods and/or service.
Specifically, with regard to the present invention, a transaction
takes place when a holder of a transaction account provides an
account code to a service establishment in order to facilitate a
transfer of funds from the transaction account to the service
establishment. A service establishment may comprise any merchant of
goods, services, information and/or other items.
[0034] An "account", "account number" or "account code", as used
herein, may include any device, code, number, letter, symbol,
digital certificate, smart chip, digital signal, analog signal,
biometric or other identifier/indicia suitably configured to allow
the consumer to access, interact with or communicate with the
system (e.g., one or more of an authorization/access code, personal
identification number (PIN), Internet code, other identification
code, and/or the like). The account number may optionally be
located on or associated with a rewards card, charge card, credit
card, debit card, prepaid card, telephone card, embossed card,
smart card, magnetic stripe card, bar code card, transponder, radio
frequency card or an associated account. The system may include or
interface with any of the foregoing cards or devices, or a fob
having a transponder and RFID reader in RF communication with the
fob. Although the system may include a fob embodiment, the
invention is not to be so limited, indeed, system may include any
device having a transponder which is configured to communicate with
RFID reader via RF communication. Typical devices may include, for
example, a key ring, tag, card, cell phone, wristwatch or any such
form capable of being presented for interrogation. Moreover, the
system, computing unit or device discussed herein may include a
"pervasive computing device," which may include a traditionally
non-computerized device that is embedded with a computing unit.
Examples can include watches, Internet enabled kitchen appliances,
restaurant tables embedded with RF readers, wallets or purses with
imbedded transponders, etc.
[0035] The account number may be distributed and stored in any form
of plastic, electronic, magnetic, radio frequency, wireless, audio
and/or optical device capable of transmitting or downloading data
from itself to a second device. A customer account number may be,
for example, a sixteen-digit credit card number, although each
credit provider has its own numbering system, such as the
fifteen-digit numbering system used by American Express. Each
company's credit card numbers comply with that company's
standardized format such that the company using a sixteen-digit
format will generally use four spaced sets of numbers, as
represented by the number "0000 0000 0000 0000". The first five to
seven digits are reserved for processing purposes and identify the
issuing bank, card type, etc. in this example, the last (sixteenth)
digit is used as a sum check for the sixteen-digit number. The
intermediary eight-to-ten digits are used to uniquely identify the
customer. A merchant account number may be, for example, any number
or alpha-numeric characters that identify a particular merchant for
purposes of card acceptance, account reconciliation, reporting, or
the like.
[0036] Referencing the computer networked aspect of a preferred
embodiment of this invention; each participant is equipped with a
computing system to facilitate online commerce transactions. The
computing units may be connected with each other via a data
communication network. The network is a public network and assumed
to be insecure and open to eavesdroppers. In the illustrated
implementation, the network is embodied as the internet. In this
context, the computers may or may not be connected to the internet
at all times. For instance, the cardholder computer may employ a
modem to occasionally connect to the internet, whereas the card
provider computing center might maintain a permanent connection to
the internet. It is noted that the network may be implemented as
other types of networks, such as an interactive television (ITV)
network.
[0037] The merchant computer and the card provider computer may be
interconnected via a second network, referred to as a payment
network. The payment network represents existing proprietary
networks that presently accommodate transactions for credit cards,
debit cards, and other types of financial/'banking cards. The
payment network is a closed network that is assumed to be secure
from eavesdroppers. Examples of the payment network include the
American Express.RTM., VisaNet.RTM. and the Veriphone.RTM.
network.
[0038] As depicted in FIG. 15, the present invention generally
relates to a transaction system where a first party to a
transaction ("cardholder 1") provides to a second party to a
transaction ("merchant 2") a secondary transaction number (STN) 15
that was generated by an issuer ("card provider 3"). In a preferred
embodiment, although not required, the STN 15 is immediately usable
by the cardholder 1 without need for activation and may have
associated therewith cardholder 1, card provider 3, or merchant 2
defined conditions or parameters of use restrictions which limit
use of the STN 15. A "transaction," as defined herein, includes,
inter alia, any exchange or delivery of value, exchange or delivery
of data, gifting of value or data, etc. The term "transaction" not
only contemplates an exchange of goods or services for value from
one party to another, but also the gifting of something from one
party to another. Additionally, transaction or charge card numbers
are account numbers that are used to facilitate any type of
transaction.
[0039] While an exemplary embodiment of the invention is described
in association with a transaction system, the invention
contemplates any type of networks or transaction systems,
including, for example, unsecure networks, public networks,
wireless networks, closed networks, open networks, intranets,
extranets, and/or the like.
[0040] The first party to the transaction (referred to herein as a
"cardholder 1") is any individual, business or other entity who
uses a STN 15 to facilitate any transaction. In a preferred
embodiment, the cardholder 1 establishes a new or has an existing
relationship or association with a card provider 3. For example, in
one embodiment, a cardholder 1 may be an American Express.RTM. card
member. In another embodiment, a cardholder 1 may be a participant
any suitable organization that provides transaction products or
services. Another embodiment contemplates the cardholder gifting a
secondary transaction number to a second party. The term cardholder
1 may also be referred to herein as "consumer," "card member,"
"user," "customer" or the like.
[0041] The second party to the transaction (referred to herein as a
"merchant 2") is any individual, business, or other entity who
receives a secondary transaction number, whether or not in exchange
for goods or services. For example, in one embodiment, a merchant 2
may be an online bookstore such as Amazon.com.RTM.. In another
embodiment, a merchant 2 may be a local plumber. In yet another
embodiment, a merchant 2 may be a local hardware store. In some
instances, the cardholder 1 and the merchant 2 may be the same. In
other situations, the merchant 2 and the card provider 3 are the
same. Although referred to herein as a "merchant," this term
contemplates situations where any second party receives a secondary
transaction number from the first party: such as, for example,
where a cardholder 1 gifts a secondary transaction number to
another individual (i.e., second party merchant).
[0042] The issuer ("card provider 3") includes any provider of
products and/or services that facilitates any type of transaction.
As contemplated by an exemplary embodiment of the present
invention, the card provider 3 establishes and maintains account
and/or transaction information for the cardholder 1. The card
provider 3 may issue products to the cardholder 1 and may also
provide both the cardholder 1 and the merchant 2 with the processes
to facilitate the transaction system of the present invention. The
card provider 3 includes banks; credit unions; credit, debit or
other transaction-related companies, telephone companies; or any
other type of card or account issuing institutions, such as
card-sponsoring companies, incentive rewards companies, or third
party providers under contract with financial institutions. Unless
otherwise specifically set forth herein, although referred to as
"card provider," this term should be understood to mean any entity
issuing any type of account to facilitate any transaction, exchange
or service; and should not be limited to companies possessing or
issuing physical cards. In an exemplary system, the card provider 3
may be any transaction facilitating company such as a charge card
provider like American Express.RTM., VISA.RTM., Mastercard.RTM.,
Discover.RTM., etc. In another embodiment, the card provider 3
could be any membership organization or union. In some instances,
the card provider 3 and the merchant 2 may be the same, for
example, where the STN 15 is issued by the same entity that
provides the product or service. A STN 15 phone card issued by a
telephone company, where the STN 15 phone card is tied to a primary
telephone account is one such occasion.
[0043] An exemplary STN 15 is any transaction number, code, symbol,
indicia, etc. that is associated with another number or account
that has been designated by the cardholder 1 or the card provider 3
as a primary charge card (PCC 20), i.e., primary account number. In
an exemplary embodiment, the STN 15 is a purchasing number that
acts as a charge card number and is associated with a PCC 20
account (e.g., a main charge card, credit, debit card or other
account number, such as a bank or brokerage account, reward program
account, etc.). In an exemplary embodiment, a PCC 20 account is not
identified by a STN 15. In certain embodiments, the PCC 20 account
may have some identifying elements related to the STN 15. The PCC
20 is defined herein to include any type of transaction card that
references any account, membership, affiliation or association.
When more than one cardholder 1 account exists, the PCC 20 is the
account that has been designated by the cardholder 1 or the card
provider 3 as the primary account. Alternatively, there may be a
hierarchy of accounts where the STN 15 is associated with one or
more PCCs 20 in a designated order. Additionally, as depicted in at
least one embodiment described herein, a STN 15 may be associated
with two or more accounts. For example, a STN 15 could be
associated with a non-currency based account and also a PCC 20
account.
[0044] As shown in FIG. 1, in a preferred embodiment, the STN 15
and the PCC 20 have the same format, although additional
embodiments may provide for account numbers with varying formats.
In an exemplary embodiment involving credit, debit or other banking
cards, the STN 15 has the same industry standard format that is
used for the regular banking cards (e.g., 15 or 16 digit numbers).
Preferably, the numbers are formatted such that one is unable to
tell the difference between a STN 15 and a regular physical charge
card. Alternatively, however, the card provider/product identifier
(e.g., BIN range, first 6 digits, etc.) numbers may be different so
as to differentiate the STNS from regular charge card numbers. In
referencing the STN 15 and the PCC 20 number, it should be
appreciated that the number may be, for example, a sixteen-digit
credit card number, although each card provider has its own
numbering system, such as the fifteen-digit numbering system used
by American Express. Each company's card numbers comply with that
company's standardized format such that a company using a
sixteen-digit format will generally use four spaced sets of
numbers, as represented by the number "0000 0000 0000 0000," The
first five to seven digits are reserved for processing purposes and
identify the issuing bank, card type etc. In this example, the last
sixteenth digit is used as a sum check for the sixteen-digit
number. The intermediary eight-to-ten digits are used to uniquely
identify the cardholder 1. The invention contemplates the use of
other numbers, indicia, codes or other security steps in addition
to the use of the STN 15, but in an exemplary embodiment, only the
STN 15 is provided to the merchant 2.
[0045] In a preferred embodiment, the STN 15 is randomly and
instantaneously generated by the card provider 3, usually upon a
cardholder's request, and can be distributed to the cardholder 1 by
a variety of methods (online, telephone, wireless, email, regular
mail, etc.) all of which should be secure and dependent upon
verification of the cardholder's identity. Unlike the temporary
transaction numbers disclosed in the prior art previously
discussed, in a preferred embodiment, although not required, the
STN 15 is immediately active (and usable) once it is associated
with the cardholder's designated PCC 20 and provided to the
cardholder 1. This feature minimizes the possibility that a
merchant 2 will obtain a transaction number that will be worthless
because it was not properly activated by the cardholder 1. While
the present invention may contemplate a previously allocated pool
of numbers that needs to be activated, an exemplary embodiment of
the present invention includes STNs 15 that are instantaneously and
randomly generated, and are usable upon receipt by the cardholder 1
without the need for separate activation.
[0046] In another preferred embodiment, the STN 15 may have
limited-use (or conditions-of-use) parameters placed upon it by the
cardholder 1, merchant 2, or the card provider 3 in order for the
numbers to be restricted for particular uses. Alternatively, the
cardholder 1 is able to choose system default parameters of use.
Parameters may include, for example: (i) use of the STN 15 is good
for a predetermined number of transactions; (ii)
cardholder-determined expiration dates (i.e., STN 15 will be
generated with expiration dates that are associated but unrelated
to the expiration date of the cardholder's PCC 20 number, other
than that it cannot exceed the expiration date of the PCC 20
account); (iii) limiting use of the STN 15 to a specified dollar
amount, dollar amount per transaction, total dollar amount for
pro-designated number of transactions, maximum dollar amount per
month, etc.; (iv) use of the STN 15 for a specified merchant only;
(v) restricting use to a specified user, other than primary
cardholder (e.g., child, spouse, gift recipient, etc.); or (vi) any
combination of these or similar features, for example, a number can
be used at a specified merchant only for a pro-designated number of
transactions and for a maximum dollar amount. In an exemplary
online embodiment, a cardholder 1 may desire to require all online
transactions (e.g., purchases) be performed using only STNS, or
alternatively, be performed only with specific merchants as
defined. If the cardholder (or another individual) uses a physical
charge card number for an online payment in violation of this
condition, the card provider 3 would decline the authorization.
[0047] These parameters not only provide increased security,
allowing a cardholder 1 to tailor the STN 15 to a particular use,
but an ancillary benefit is the ability of a cardholder to select
preferences to control spending for themselves or others who have
registered eligibility to use the card (e.g., spouse, children,
etc.). These preferences may include: Restrictions (cardholder 1
may choose to restrict use on certain sites or can pre-approve
spending at particular sites); date range (cardholder 1 can select
a period of time when transactions may occur); maximum budget
amount (cardholder 1 can pre-set spending limits within certain
periods of time or in certain categories (e.g. groceries, books,
clothing)); credit and balance availability (cardholder 1 can check
credit or demand deposit balance availability prior to
transacting); non-currency based accounts, such as Reward Points as
Currency (cardholder 1 can use reward points (e.g. Membership
Rewards.TM., Blue Loot.TM.) as currency to pay for purchases); and
Gift Products (cardholder 1 can use a STN 15 to fund gift products
to others for designated amounts).
[0048] As shown in FIG. 2, an exemplary embodiment of the present
invention includes steps for: (i) registering a cardholder 1 to use
the card provider's 3 transaction services (step 100); (ii)
receiving from a cardholder 1 a request for a STN 15 (step 105);
(iii) generating a STN 15, associating the STN 15 with a PCC 20,
applying limited-use conditions, if desired, and issuing the STN 15
to the cardholder 1 (step 110); (iv) processing a merchant's 2
authorization request involving the STN 15 to determine if use of
the STN is authorized (step 115); (v) processing a settlement
request, paying the merchant, and billing the cardholder 1 (step
120); and (vi) handling disputes and other customer service issues
from the merchant or cardholder relating to use of the STN 15 (step
125).
[0049] FIG. 8 depicts an overview of the components of an exemplary
transaction system. In general, the card provider's computer system
utilizes front end 13 and backend 14 processing systems. The front
end 13 system comprises, inter alia, a user interface system 4
(e.g., web server, IVR, etc), an application server 5, a STN
database 6, and a card authorization system (CAS) 7. The
application server 5 and STN database 6 may, at times, be referred
to collectively as the STN transaction system (or service) 18.
Referencing FIGS. 2 and 8, these front end 13 components facilitate
(i) cardholder registration (step 100), (ii) request for a STN 15
(step 105), (ii) generation and issuance of the STN 15 (step 110),
and (iv) the STN authorization process (step 115). The backend 14
system comprises, inter aria, a financial capture system 10, a
back-end application service 8, an accounts payable system 9 and an
accounts receivable system 11. Again referencing FIGS. 2 and 8, the
backend 14 components facilitate transaction settlement (step 120).
In an exemplary system, the dispute handling and customer service
processes (step 125) include, inter alia, in addition to the above
mentioned systems, a system for identifying a PCC 20 from a STN 15,
a letter generating system for sending dispute inquiries to
cardholders 1 and merchants 2, and a system that accepts incoming
communication from merchants 2 and converts the STN 15 received to
the PCC 20 for the purpose of facilitating the dispute handling
process. More specifically, as shown in FIG. 8, the card provider 3
user interface system 4 provides the cardholder 1 with access to
the card provider's transaction services, it is through this
interface that the cardholder 1 may register with the card provider
3, may request a STN 15, and, in response thereto, will receive
from the card provider 3 a STN 15 that is associated with his PCC
20. The front end 13 system also utilizes at least one application
server 5 that processes incoming information, applies the
appropriate business rules/condition sets as necessary, and
generates appropriate outgoing responses. The application server 5
is configured to support interaction with, inter alia, the user
interface system 4 and a STN database 6. An exemplary STN database
6 is a relational database comprising various tables for managing
and translating a variety of information, such as cardholder 1
profiles, charge card data, transaction data, merchant data,
conditions/rules set profiles, etc. FIG. 9 illustrates two examples
of exemplary tables within the STN database 6. STN table 166 may
contain a variety of database fields 170 relating to the
cardholder's STN account. These fields may contain, in addition to
general STN 15 and PCC 20 account information, the business
rule/condition set profiles associated with use of the STN 15, A
STN Transaction Information Table 168 contains database fields 172
for storing information relating to a particular transaction. As a
skilled programmer can appreciate, the processing mechanisms and
data structure methods can be structured in a variety of ways. In
short, the user interface system 4, application server 5, and the
STN database 6 are suitably connected to facilitate the generation
and issuance of a STN 15 and are further associated with a card
authorization system (CAS) 7, in order to process from the merchant
2 an authorization request involving a STN 15.
[0050] When processing a merchant's request for settlement, i.e.,
to be paid for a transaction, the financial capture (FINCAP) 10
system receives and captures the financial information (e.g.,
transaction amount, date, merchant identification (SE) number, STN
15, etc.). The back end application service 8 interfaces with the
STN transaction system 18, as necessary, to determine if the number
is a valid STN 15 (i.e., not a phony number). If the STN 15 is
valid, the AP system 9 pays the merchant 2. The STN database 6 is
updated to reflect the transaction information. The STN transaction
system 18 (or alternatively the backend application service 8)
substitutes the PCC 20 number for the STN 15 and forwards to the AR
system II for billing.
[0051] Although the present system for facilitating transactions
may exist within one card provider system, exemplary embodiments
contemplate use with other third party authorization and settlement
systems and networks. FIGS. 8 and II, for example, depict third
party authorization networks (FIG. II, 91 and 92) and settlement
networks (FIG. 8, 93-95) that may be integrated to form parts
and/or processes of the present invention. Exemplary processes of
the present invention are discussed in greater detail below.
[0052] Two exemplary screen shots relating to an exemplary
registration process are shown at FIGS. 3 and 4. FIG. 3 depicts a
splash page for an American Express.RTM. Private PaymentsSM
program. The Private PaymentsSM program is an exemplary embodiment
of the present invention. Here, a new user 23 may enroll to use the
program or an existing user may access a number of program features
25, e.g., review account, request a new STN 15 number or download
software. The cardholder 1 generally enters this site by entering
an appropriate card provider URL into her browser, by clicking on a
link provided by a merchant's website, or alternatively, by an
automatic pop-up feature that may appear upon recognizing
particular URL or HTML codes.
[0053] To enroll (or register), the cardholder 1 is linked to a
registration page (FIG. 4) and prompted for information.
Information may include the cardholders name 30, email address 31,
card account number 32 (e.g., PCC 20), last four digits of social
security number 33, cardholder's date of birth 34, etc. Any
suitable authenticating information will suffice. By selecting
"continue," the cardholder 1 is provided with a username and
password, or preferably, the cardholder is allowed to select her
own username and password. The user interface system 4 processes
this information and suitably interfaces with the STN transaction
system 18 (FIG. 8) to register the cardholder. As one of skill in
this art will appreciate, registration may take many forms and may
be accomplished in a variety of ways. For example, a card provider
3 may choose to automatically enroll all new charge card applicants
and return to the cardholder a username and password with the
physical credit card. Although FIGS. 3 and 4 show an online
registration process, it should be appreciated that this process
may take place via any suitable user interface system.
[0054] In one embodiment, during the registration process, the
cardholder 1 may choose to select or define various parameters,
preferences, and programs to tailor the transaction system to the
cardholder's particular needs. Additional embodiments allow the
cardholder 1 to select or define parameters, preferences or
programs at any point in the transaction process. In other words,
the cardholder 1 has the flexibility to select parameters each time
(e.g., during registration, log-in, upon STN request, etc.) a STN
15 is generated or may apply universal parameters to every STN 15
generated. With these selections, for example, the cardholder 1 may
(i) designate a specific credit card to function as the primary
charge card number; (ii) associate the transaction system with
other programs such as a non-currency based membership rewards
program, an online digital wallet, an online shopping gateway
(e.g., American Express's "ShopAMEX"), an online gift check program
(e.g. E-Gift), preferred buyer's programs, etc.; (iii) provide
password protected access to family members; (iv) activate a
smartcard feature allowing remote random generation of secondary
transaction numbers; (v) designate cell phone, email or pager
numbers to utilize with the voice or automated response secondary
transaction number generation feature; (vi) and other banking and
transaction features that may be apparent to those skilled in the
art. For more information on loyalty systems, transaction systems,
electronic commerce systems and digital wallet systems, see, for
example, the Shop AMEX.TM. system as disclosed in Ser. No.
60/230,190 filed Sep. 5, 2000; the MR as Currency.TM. System
disclosed in Ser. No. 60/200,492 filed Apr. 28, 2000 and Ser. No.
60/201,114 filed May 2, 2000; Wireless MR as disclosed in Ser. No.
60/192,197,296 filed on Apr. 14, 2000; a digital wallet system
disclosed in U.S. Ser. No. 09/652,899 filed Aug. 31, 2000; a stored
value card as disclosed in Ser. No. 09/241,188 filed on Feb. 1,
1999, all of which are herein incorporated by reference.
[0055] A registered cardholder 1 generally accesses the card
provider's transaction system by logging into the system via any
suitable user interface system 4. FIG. 5 depicts an exemplary
online log-in screen 130, where the cardholder 1 is prompted for
authenticating information such as a username 132 and password 134.
Alternative systems contemplate authentication via any suitable
user interface system. For example, an embodiment employing a
portable data device such as a smart card facilitates
authentication by swiping the smart card through a smart card
reader and providing the appropriate PIN. After entering the
appropriate authenticating information and clicking the log in
button 135, the information is routed through the user interface
system 4 (e.g., web server) to the application server 5, where, as
shown in FIG. 5, the application server 5 retrieves information
relating to the cardholder's account from the STN database 6. If
the cardholder 1 has registered multiple charge card accounts, in
one embodiment 136, as depicted in FIG. 6, the program prompts the
cardholder 1 to choose from a list of accounts from a pull-down
menu 138. The cardholder 1 then selects.about.least one account to
be the primary account or to be included in a primary group of
accounts (when it is desired for the STN 15 to be associated with
more than one account). In other embodiments, the user interface
system 4 (e.g., web server) will return additional options for the
cardholder 1, such as prompting the cardholder 1 to choose from
several condition fields such as those previously mentioned (e.g.,
restricting use to a particular merchant, amount, allowing use by
other recipients, etc.).
[0056] An exemplary online transaction process begins with a
cardholder 1 desiring to purchase products or services from an
online merchant's website. In this exemplary online system, the
cardholder 1 selects products from a merchant's online website 2,
is routed or clicks to the merchant's payment page 2a (FIG. 5). The
cardholder 1 is hyperlinked (manually or automatically) to a card
provider's web site to log in 130 (FIG. 5), which resides on and is
managed by the card provider's user interface system 4 (e.g., web
server), and, upon logging in, obtains a STN 15 that may then be
"cut and pasted," "dragged and dropped" (or alternatively,
automatically filled by the card provider 3 or downloaded from a
digital wallet) into the payment fields 144, 146, 148 (FIG. 7) on
the payment web page 2b (FIG. 7). In alternative embodiments, the
system includes one or more of the following: the card provider 3
sends the STN 15 directly to the merchant 2, the STN 15 is
encrypted or encoded, the cardholder 1 enters additional security
numbers or other indicia or a biometric sample is required from the
card provider 3. In an exemplary embodiment, the STN 15, as will be
discussed next, is generated by the card provider's application
server 5 and STN database 6.
[0057] After authenticating a cardholder 1 during the log-in
process, and receiving a request for a STN 15, the process begins
for generating a STN 15. The user interface system 4 prompts the
initiation of the number generation process in the STN transaction
system 18. In an exemplary random number generation process, the
STN 15 is generated (preferably immediately) and provided to the
cardholder 1 (preferably contemporaneous with the cardholder's
request). As previously noted, this allows the number to be usable
immediately upon receipt by the cardholder 1 without the need for
separate activation (although separate activation features are
contemplated by the present invention), while minimizing any
increased risk of theft or fraud.
[0058] An exemplary random number generation process is depicted in
FIG. 10. In this exemplary embodiment, each card provider 3 (FIG.
1) is generally identified by a range of numbers on the physical
card, typically called the bank identification number (BIN). Each
card possesses a product identifier (e.g., first 6 digits. BIN,
etc) that is not part of the random number generation process, but
in order to initiate the process, this number must first be
selected (step 40). It may be preferable for a card provider 3 to
set aside a set of product identification numbers relating to
secondary transaction numbers for specific use with the transaction
system. Alternatively, however, some card providers may find it
desirable to use the same BIN number designation for both STNS 15
and regular charge card numbers so that one cannot distinguish
between the two types of numbers. As depicted in HG. 10, a random
eight digit number is generated by the card provider's application
server 5 using an algorithmic process (step 41). The application
server 5 verifies that the randomly generated number is available
(i.e., it is not in use nor has it been used within a certain
period of time) (step 42). If the transaction number is free (i.e.,
not in use), a check digit and the selected product identification
number is appended to the number (step 43). This newly created STN
15 is then associated with the cardholder's PCC 20 and is provided
to the cardholder 1 (step 45), whereupon the STN database 6 is
updated to reflect that this particular STN 15 is in use and
associated with a PCC 20 account, if during step 42, it is
determined that the number is in use, the number generation process
is repeated up to a preset number of times (e.g., 3) (step 44).
After attempting and failing to generate a non-used random number
for a preset number of times, a non-used random number is
physically selected from the STN database 6 (step 46).
[0059] After the STN 15 is generated, conditions of use parameters
are applied, and are associated with the PCC 20, the STN 15 is then
distributed (i.e., issued) to a cardholder 1 for use in
facilitating a transaction. Communication of the STN 15 may occur
via a number of use interface systems 4. For example, FIG. 7
depicts an exemplary online interface where the STN 15 (Private
Payment number) is returned to the cardholder 1. This embodiment
shows how the card provider window 140 overlays a merchant's online
payment page 2b. The cardholder 1 selects the appropriate charge
card (e.g., American Express.RTM.) from the credit type filed 144.
The cardholder 1 is then able to "cut and paste" or "drag and drop"
the STN 15 (present in the STN field 142) into the credit card
field 146 on the webpage 2b. Finally, the cardholder 1 chooses the
appropriate expiration date 148 and completes the transaction by
selecting the "purchase now" button 150. Although this embodiment
describes linking to a card provider's web site to receive a STN
15, an additional embodiment configures the user interface 4 (e.g.,
web server) and STN transaction system 18 to seamlessly interact
with the merchant's website to eliminate the need to separately
link to the card provider 3. In this instance, the generation and
issuance of the STN 15 would use the merchant 2 as a gateway to the
card provider 3. Any number of interface systems 4 can be used to
facilitate the processes described above (FIG. 2 steps 100, 105,
110).
[0060] For example, as just described, distribution of the STN 15
may occur via a "server to desktop" arrangement where a connection
is established between the card provider's web-server 4 and the
cardholder's 1 desktop computer, using SSL 3.0. With this exemplary
system, the number is generated by the application server 5
(according to an algorithmic processing feature) utilizing a random
number generation process such as that previously described and
delivered to the web server 4. The number is then displayed on the
cardholder's 1 desktop. While pre-registration is not required, in
an exemplary embodiment, a cardholder 1 will have previously
registered at the card provider's 3 online web site providing all
required personal information, primary charge card account numbers,
and establishing a cardholder 1D and password (if not already
established). The cardholder 1D and password are then used for
verification of cardholder 1 identity when logging into the card
provider's web server 4.
[0061] Distribution of STNs 15 may also occur via a "server to IVR"
arrangement, where a cardholder 1 calls the card provider 3 in
order to obtain a STN 15. In this exemplary embodiment, a voice
response menu enables the cardholder 1 to choose the transaction
option, and allows the cardholder 1 to enter a main account number.
Once identity is verified, a link to the application server 5 is
established, prompting generation and delivery of a STN 15 over the
phone. In this embodiment, the cardholder 1 provides authenticating
information by providing date of birth (DOB), a PIN, etc. Once this
verification number is matched to customer's records, the STN 15 is
distributed. Of course, this process would also work with a live
operator arrangement.
[0062] Additional distribution embodiments include a number of
different delivery vehicles and/or portable data devices, such as
use of wireless devices, smart chip encoded devices, personal
digital assistants (PDAs), pagers, interactive IVs, etc. For
example, a "server to wireless device" is used where a wireless
phone with internet browser is able to access the card provider's
transaction site via the card provider's online service web site.
The STN 15 can be delivered via text or voice. Additionally, with
the use of encryption keys, the wireless device can be used as
payment vehicles (e.g., STN 15 is delivered from the cardholder 1
to merchant 2 or other customer with Blue Tooth or other beaming
technology). Again, verification of identity can be accomplished by
a variety of means, including cardholder ID and password, DOB, PIN
number, SIM cards in phones, etc.
[0063] Another exemplary embodiment of the transaction system,
utilizing one or more of the distribution arrangements above,
includes situations where a Point of Sale terminal (POS) is not
present (e.g., submitting a STN 15 to a merchant 2 such as, for
example, a plumber at home). In this exemplary embodiment, the
cardholder 1 may not have cash or may not want to provide her PCC
20 number to the vendor due to concerns about unauthorized re-use.
As such, the cardholder 1 calls the card provider 3 seeking to
obtain a STN 15 with either pre-defined conditions of use or
cardholder determined conditions of use. A voice recognition system
asks for a PCC 20 number, the amount she wants to authorize, a
merchant ID (e.g., SE number), or any other conditions of use. The
voice recognition system communicates with the application server 5
and, alternatively, also CAS 7, to generate the STN 15. The STN 15
is then transmitted to the cardholder 1 who in turn provides to the
merchant 2. Additionally, the merchant 2 can also receive, if
desired, an immediate call from the voice response unit to provide
an approval code. One skilled in the art will appreciate that this
system can be used in association with landline phones, cellular
phones, pagers, handheld computers or any other PDA devices.
[0064] Another exemplary embodiment of the present invention
utilizes a smart card system or similar portable data device to
generate and/or distribute a STN 15 to the card provider I or
merchant 2. The smart card may facilitate the generation of a STN
15 in a number of different ways. In one embodiment, the smart card
device itself generates the STN 15 from a self-contained processing
chip. In another embodiment, the smart card interfaces with the
card provider's user interface system 4 to cause the card provider
3 to generate a number. In another embodiment, the smart card
supports interaction with a merchant's transaction processing
system. "Smart card" is referred to herein to include any microchip
enabled transaction card that is capable of being read by a smart
card reader, and is also referred herein to generally refer to any
portable data device that is capable of processing information. In
an online embodiment, the cardholder 1 installs a smart card reader
and associated software to be used with the cardholder's computer
system that is capable of connecting to the internet. When desiring
to make an online purchase, the cardholder 1 swipes or inserts his
smart card through a card reader and enters an appropriate PIN.
Once properly authenticated, the card provider transaction system
generates and issues a STN 15 to the cardholder 1. In another
embodiment, the merchant 2 may have a smart card reader capable of
interfacing with the card holder's smart card. In this embodiment,
the cardholder 1 swipes or inserts the smart card through the
merchant's reader, a PIN is entered and the STN 15 is displayed to
the merchant 2. Additional information relating to smart card and
smart card reader payment technology is disclosed in Ser. No.
60/232,040, flied on Sep. 12, 2000, and U.S. Pat. Nos. 5,742,845;
5,898,838 and 5,905,908, owned by Datascape; which are hereby
incorporated by reference.
[0065] With an exemplary online smart card embodiment, the
cardholder 1 interfaces with the card provider's user interface
system 4 (e.g., website) and registers the smart card for use with
the transaction system option. The cardholder 1 downloads a program
and the program is stored on the cardholder's computer. A STN
transaction icon (e.g., Private PaymentsSM button) appears on the
cardholder's browser or an icon appears on the display (e.g.,
Microsoft Windows.RTM. system tray). This button, driven by a card
provider specific application (activator) that resides on the
cardholder's computer, appears each time the cardholder 1 launches
the browser (or alternatively the button appears at any
predetermined intervals, cycles or URLs).
[0066] The cardholder 1 suitably links to an online shopping site,
orders a product or service or fills a shopping cart and goes to
the payment page. The cardholder 1 clicks the STN payments button
on the browser or the icon on the display (or the activator
automatically launches the STN button) and a pop-up window appears,
asking the cardholder 1 to enter the smart card into the smart card
reader and, in a preferred embodiment, enter his PIN number. In an
alternative embodiment, a PIN may not be necessary. In another
embodiment, any other security data or functionality may be
included. Upon entering this information, the STN 15 will be
generated by the card provider's STN transaction system 18 (FIG.
8), or, in another embodiment (discussed below) will be generated
directly from the smart card chip; and a pop-up screen containing
the STN 15 number will be displayed on the computer. The cardholder
1 then "drags and drops" or "cuts and pastes" the randomly
generated STN 15 and other transaction information (e.g., card
type, expiration date) into the online order form and completes the
transaction. In an alternative embodiment, the STN 15 and other
transaction information are automatically filled into the web
shopping page by the card provider's web server.
[0067] Another exemplary embodiment of the present invention
integrates a smart card with an online merchant's website, which
may or may not be utilized by the cardholder 1. For example, in one
aspect of this embodiment the smart card cardholder goes to a
merchant website and a "smartchip" payments checkout button appears
on the credit card payments page. The card provider's transaction
system will be invoked if the card holder 1 checks out via the
smartchip payments button. In a preferred embodiment, the
transaction system option is "behind the scenes." The cardholder 1
goes to an online shopping site, orders a product or service or
fills a shopping cart and goes to checkout page. The cardholder 1
clicks the smartchip payments button on the browser and a pop-up
window appears, asking the cardholder 1 to enter the smart card
into the smart card reader and, optionally, enter his PIN number.
Upon entering this information, the system logs the cardholder 1
into smartchip payments checkout process. The cardholder 1 will hit
"check out" and the smartchip payments checkout process may
auto-generate and auto-fill the STN 15 and transaction information
into the appropriate payment field (an applet may be read off of
the smartcard to transfer number to merchant site.) In this
embodiment, the STN 15 will be auto-generated off the chip, where
the smart card chip may use the Java or Multos operating systems
and may use a random number generating algorithm. In one
embodiment, the smart card chip is able to access the card
provider's transaction system or, alternatively, contain a pool of
possible numbers (in order to avoid generating the same number
twice). The number is also need sent back to the STN transaction
system 18 in order to match the PPC 20 number with the STN 15.
[0068] In another embodiment using a smart card, a secure
electronic transaction (SET) protocol is used to avoid or minimize
system/server contact. In this embodiment, the PCC 20 number is on
the chip but is encoded. The SET protocol is preferably an
encryption algorithm on the chip where part of the initial data
would be the cardholder's PCC 20 number. The algorithm could be
decoded by the card provider 3 but not by the merchant 2 to come up
with the real account number. In one embodiment, the merchant 2
routes the authorization to the card provider via a BIN number
rather than the PCC 20 number. When the transaction is sent from
the merchant 2 to the card provider 3 for authorization, the CAS 7
preferably triggers the decode algorithm to complete the process,
linking the STN 15 to the PCC 20 account.
[0069] Another embodiment contemplates the use of the STN 15 with a
transponder system comprising a first means for generating or
storing a signal that includes an encoded STN 15 and a second means
for reading or receiving the signal. In an exemplary embodiment, a
cardholder 1 waves a small transponder unit in front of the
merchant's 2 receiving unit. The STN 15 information can be
sent/received by a number of known methods (e.g. optical, magnetic,
infrared, radio frequency, etc). The merchant 2 reader captures the
STN 15 and forwards the STN 15 (with the associated transaction
information) to the card provider's CAS 7 as previously described.
The transponder units may be set up in a number of ways. Each
transponder device may hold one STN 15 with certain predefined
parameters or each transponder device may have several STNs 15.
[0070] Referencing FIGS. I and II, after the secondary transaction
number (STN 15) is provided to the merchant 2, the merchant 2
submits an authorization request to the card provider 3, as it
would with any other credit card transaction. This request is
routed to a card authorization system (CAS) 7 for authorization
(step 80). The CAS 7 recognizes the transaction as involving a STN
15 and forwards the transaction information to the Authorization
Request Listener 77 program on the application server 5 (step 81).
The Authorization Request Listener 77 passes the transaction
information to a CAS Authentication Component 78 (step 82). The CAS
Authentication Component 78 determines if use of the STN 15 has
satisfied the previously defined conditions of use parameters. To
determine this, the CAS Authentication component 78 looks to the
STN database 6 for the conditions-of-use rules and the primary
Charge card number (PCC 20) that are associated with the particular
STN 15 (step 83). If the use of the STN 15 complies with the rules
of use, the CAS Authentication component 78 returns an
authorization message and the associated PCC 20 to CAS 7 (step 84).
CAS 7 then performs an authorization request for the PPC 20, as is
typically done with any physical charge card, to ensure that the
primary charge card conditions (e.g., credit limit, expiration
date, etc.) have been met.
[0071] If CAS 7 authorizes use of the PCC 20, the transaction
involving the STN 15 is approved and an approval code will be
generated. However, the PCC 20 must first be replaced with the STN
15 and the STN database 6 must be updated to reflect this
transaction data. This is accomplished by CAS 7 returning to the
CAS Authentication component 78 an approval message with the
transaction data (step 85) and CAS Authentication component 78
forwarding to a reversal processing engine 79 (step 86). The
reversal processing engine 79 interfaces with the STN database 6 to
re-substitute the STN 15 for the PCC 20 and also to update the STN
database 6 to reflect the transaction information (step 87). For
example, if the conditions of use parameters associated with the
STN 15 authorized two transactions, this step 87 updates the
cardholder account in the STN database 6 to reflect that only one
transaction remains. The reversal engine 79 substitutes the PCC 20
with the STN 15 and forwards to CAS 7 (step 88). CAS 7 then
provides the results to the merchant 2 (step 89). If the CAS
Authentication Component 78 does not authorize use under the STN 15
conditions or if CAS 7 does not authorize use under the PCC 20
conditions, the transaction will not be approved. When the use
conditions of both the primary charge card and the secondary
transaction numbers are satisfied, the transaction is approved. In
this preferred embodiment, however, the STN 15 is not deactivated
to prevent settlement. To the contrary, settlement may proceed (as
discussed next) even when an authorization was declined.
[0072] Additionally, use of other third party networks and systems
are contemplated by the present system. One exemplary system allows
a card provider 3 to associate STNs to third party accounts,
offering the same fraud reduction benefits to external card
issuers. Here, in this exemplary system for authorizing STN, a
merchant 2 submits an authorization request to a card provider 3,
CAS 7, recognizing the STN 15 forwards the request to application
server 5. The conditions of use are checked and the authorization
request is modified to substitute the STN 15 with the associated
primary account (PCC 20). In some cases a merchant identifier may
be included in the authorization request. Therefore a translation
may occur to substitute the card provider 3 merchant ID with the
corresponding third party card issuer merchant ID. The request is
then returned back to CAS 7 for a normal authorization. CAS 7 then
recognizes the account as originating from another issuer (third
party issuer 92), forwards the authorization request to a third
party issuer's network for processing (step 84a). The network 91
routes the request to the appropriate third party issuer 92 for an
authorization determination. The third party issuer 92 processes
the authorization request and returns the result to CAS 7 for
forwarding back to application server 5 (step 84b). Application
server 5 saves the authorization result (approval or denial) and
substitutes the PCC 20 with the STN 15 and returns to CAS 7 for
forwarding to the merchant 2.
[0073] The authorization and settlement processes may occur as
separate steps or as a single step. In one embodiment, referred to
herein as an electronic data capture (EDC) system, the merchant 2
sends an authorization request and if the authorization request is
approved, a receipt of charges is created and submitted for the
merchant 2. Separate sequences of file transmissions or messages
are therefore not required. Various embodiments, hybrids, and
modifications of these processes should be apparent to one skilled
in this art.
[0074] Prior art systems typically deactivate a temporary
transaction number during the authorization process if limited-use
conditions are not met. As previously explained, because of the
uncertainty and variability of the authorization processing, this
often results in a transaction numbers being unintentionally
deactivated, thereby bringing the transaction processing to a
sudden halt. An exemplary embodiment of the present invention
overcomes this problem by not "deactivating" the secondary
transaction number when predetermined conditions are not met. But
instead, allowing the transaction to proceed through settlement,
albeit without a valid approval code, where the merchant bears the
risk that the amount will later be charged hack by the card
provider 3 if the transaction is disputed by the cardholder 1.
[0075] An exemplary settlement process of this invention involves
the backend systems shown in FIG. 8. Specifically, referencing
FIGS. 1 and 8, the backend process utilizes a financial capture
system (FINCAP) 10 to capture the settlement information (e.g.,
receipt of charges "ROC" and summary of charges "SOC") from the
merchant 2, a backend application service 8 to ensure that proper
account information is processed, an accounts payable system 9 to
pay the merchant 2, and an accounts receivable system 11 to process
the account statement that is provided to the cardholder 1. An
exemplary embodiment of the settlement process involves a
settlement request being made by a merchant 2 for a transaction
involving a STN 15. All settlement requests are forwarded to the
card provider's back end system 14 for processing where the request
is initially sent to FINCAP 10. FINCAP 10 captures the ROC and SOC
data and identifies, via the card product identifier (or by any
other suitable means), the transaction as involving a STN 15. In
another embodiment, the product identifier (or BIN number) does not
differentiate between a STN 15 and a regular charge card number. In
that instance, it will be necessary for FINCAP 10 to call the
backend application service 8 (which interfaces with the STN
database 6) to identify the STN 15 from other charge numbers. After
the STN 15 is distinguished from the ordinary physical charge
cards, FINCAP 10 verifies that the number is valid (i.e., exists in
the STN database 6). If the STN 15 is a valid number, FINCAP 10
creates a payment (accounts payable) file including the transaction
data and sends a payment message to the AP system 9 instructing the
merchant 2 to be paid. In paying the merchant 2, the card provider
3 references only the STN 15 and does not release the PCC 20 or any
other regular charge card numbers.
[0076] The back-end system 14 processes the cardholder 1 STN
account information as follows. After capturing the transaction
information (ROC and SOC) from the merchant 2, FINCAP 10 creates a
cardholder account (accounts receivable) file and sends a message
to the back-end application service 8 to process the information
for cardholder billing. Recognizing that the transaction involves a
STN 15, the back-end application service 8 replaces the STN 15 with
the PCC 20, updates the cardholder STN account information in the
STN database 6 to reflect the appropriate transaction settlement
information, and processes the transaction as with any other
transaction. The backend application service 8 sends the
transaction details to the AR system 11, where the AR system 11
sends the proper statement to the cardholder 1, typically
referencing only the PCC 20 number. In another embodiment, the AR
system 11 may process the statement where the transactions are
further categorized and itemized by both the PCC 20 number and the
STN 15.
[0077] As previously noted, it may often be the case with prior art
systems that the temporary transaction number is inadvertently
deactivated during the authorization phase and completion of the
transaction is not possible, multiple payment purchases. The
present transaction system overcomes this problem by ensuring that
valid transaction numbers will be processed. If the
conditions-of-use parameters are not met, the cardholder 1 is,
under an exemplary embodiment of the present system, able to
dispute the transaction and have the transaction charged back to
the merchant 2 during the dispute handling process (discussed
next). During this dispute handling phase, the card provider 3 will
retrieve information from the STN database 6 to determine if the
disputed information was "authorized", i.e., has an associated
approval code. If the transaction was not "authorized" because the
conditions of use parameters were not satisfied, the amount will be
charged back to the merchant 2 according to predefined business
rules.
[0078] Another embodiment provides for checking the approval codes
and other conditions during settlement. Here, transaction
information (approval code, SE number, or other information) may be
checked during settlement. For example, the backend application
service 8 (or the application server 5) may compare transaction
information to a business rule or conditions set associated with a
cardholder 1 STN account. If conditions of use have not been met or
if a valid approval code is missing, the service 8 or server 5 may
cause a charge back to be issued to the merchant to offset the
previous merchant payment. In other words, in this alternative
embodiment, where an STN 15 transaction is processed through
settlement, the following events may occur in sequence. First, a
payment file is established once it is determined that the STN 15
is a valid number. Second, the merchant is paid. Third, the system
applies the business rules or conditions for the particular account
associated with the STN 15. Fourth, if it is determined that the
merchant 2 should not have been paid in the first instance because
the transaction conditions were not met or an approval code was not
present, the system will execute a charge back to the merchant 2.
This settlement processing may be transparent to the cardholder 1
since, before the AR system releases a cardholder billing
statement, the merchant is paid and then charged-back resulting in
no outstanding balance to the cardholder 1.
[0079] As shown in FIG. 8, the present invention contemplates the
interaction of clearing and settlement systems other than those of
the card provider 3. This exemplary system allows a card provider 3
to clear and settle STN transactions where an STN 15 is associated
to a third party account, meaning that the merchant 2 is paid and
the charge is billed to the cardholder 1. As such, an exemplary
embodiment of the present invention is configured to support
interaction with third party networks and systems. Here, the
backend application service 8, upon receiving a STN 15, recognizes
that the associated PCC 20 originated with another card issuer 92.
The backend service 8 separates the transaction into two
transactions (a clearing transaction and a settlement transaction).
A substitution occurs in the clearing transaction where the STN 15
is replaced by the associated PCC 20. Also, a translation may occur
to substitute the card provider 3 merchant ID with the
corresponding third party card issuer ID. The transactions are then
forwarded to a third party clearing and settlement network 93. The
third party clearing and settlement network 93 handles the routing,
as appropriate, to a merchant acquirer's accounts payable system 91
and an issuer's accounts receivable system 92. As noted above, the
accounts payable system ensures that all correspondence with the
merchant 2 references the STN 15.
[0080] The dispute handling process of the present invention
involves situations where a cardholder 1 or merchant 2 disputes
charge that is associated with a transaction involving a STN 15.
Generally, a cardholder 1 disputes a charge by contacting the
charge card provider 3 via phone, mail, or internet. As previously
noted, an exemplary AR system 11 typically bills the cardholder 1
with reference to only the PCC 20 number. The computer systems of
the present invention allow the card provider's customer service
representatives to lookup information based on, inter alia, the STN
15 or the PCC 20 number. FIG. 12 depicts an exemplary look-up
screen 175 for reviewing the primary charge card account 20 and the
transactions associated with the STNs 15.
[0081] With respect to a cardholder initiated dispute, the
representative initiates a dispute through a dispute handling
system (DHS) to obtain the case avoidance or case set rules for
cardholder disputed transactions. One of the case avoidance or case
set rules provides for a look up from the STN database 6 to verify
that the transaction was processed with an approval code. The rule
set may provide for, inter alia, an automatic charge back of the
transaction amount to the merchant if an STN 15 transaction is
submitted without an approval code. The DHS or the representative
initiates a cardholder 1 or merchant 2 contact (via phone, mail,
internet). Disputes involving STNs 15 may be automatically routed
to predefined STN queues based on industry type (i.e., airline, car
rental, etc). Contact letters may be automatically filled with
information retrieved from the STN database 6. The adjustment file
accesses the application server 5 (or backend application service
8) to substitute the PCC 20 number with the STN 15. A letter file
is then generated and an electronic transmission system routes
electronic contacts to and from various merchant interfaces.
[0082] In an exemplary system for handling disputes from merchant
2, a merchant 2 contacts the card provider 3 via normal channels.
The card provider's representative generally accesses a customer
service application that is used to service merchants. This
customer service application identifies the account by a STN 15 in
dispute. A case is set-up with the STN 15 and is managed via
adjustment management systems. The adjustment management system and
a letter generating system access the STN transaction system 18 for
the account number swap, where the PCC 20 number is replaced with
the STN 15 for financial adjustments intended for the cardholder 1.
The remaining inquiry is processed as with existing dispute
handling systems.
[0083] Although the previously described embodiments generally
relate to a cardholder's 1 request for a STN 15, the merchant 2 may
also find it desirable to request secondary transaction numbers
from the card provider 3 in order to limit exposure to credit card
fraud. In traditional transaction processes, upon completing a
transaction, the merchant 2 stores transaction information
(including the customer's credit card number) in a merchant
database. This database of information is subject to credit card
fraud in that a thief could hack into the merchant's computers to
steal its customer's credit card numbers. To limit exposure, the
merchant 2 may desire to replace those customer credit card numbers
with STNs 15 that are associated with the cardholder's primary
credit card number (e.g., PCC 20), i.e., the merchant may not want
its database filled with actual customer credit card numbers. In
this situation, only the card provider 3 maintains the actual
credit card number and the merchant 2 retains only the STN 15. In
an exemplary process, the merchant receives a regular credit card
number from a cardholder 1 to facilitate a transaction. The
merchant 2 submits the number to a card provider 3 for
authorization, requesting that the card provider 3 instead of
returning the regular credit card number, return a STN 15 (and
approval code) that is associated with the regular credit card. In
response, the card provider generates a STN 15, associates the
number to the regular credit card number (which becomes the primary
account (e.g., PCC 20)), checks to see if authorization is
appropriate and returns the authorization record (only referencing
the STN 15) to the merchant 2. The merchant 2 processes the
transaction through the normal settlement channels, referencing the
STN 15 instead of the regular credit card number. When retaining
transaction records, the merchant 2 replaces the primary credit
card number with the STN 15 and maintains the STN 15 in its
database.
[0084] in another embodiment, the merchant 2 accepts only STNs
15--not regular credit card numbers--from cardholders to complete
transactions. For the same reasons stated above, the merchant 2 may
desire to limit receipt of regular charge card numbers to limit
exposure to credit card fraud. In one exemplary embodiment, the
merchant 2 computer system differentiates between STNs and regular
charge card numbers and will not allow customers to use regular
charge card numbers to facilitate a transaction (i.e., will refuse
the transaction). As previously described, however, the STN 15 and
the regular charge card may be transparent to the merchant 2 making
it difficult for the merchant 2 to differentiate between the STN 15
and the regular charge card. In this situation, in an exemplary
embodiment, the STN 15 will be identified during the authorization
process by the card provider 3, where if the STN 15 does not meet
certain conditions defined by the merchant 2, the transaction will
not be authorized. For example, the merchant could require that all
customer transactions be completed with a STN 15 that has
limited-use conditions restricting use to the amount of the
transaction or restricting use to the particular merchant. During
the authorization process, the STN 15 is compared with the
merchant-defined conditions where if the conditions are not
satisfied, the authorization request will be denied. After
completion of the transaction, and upon satisfying the merchant 2
conditions, the STNs 15 have little to no value and would be of
minimal value to a potential thief. Several additional embodiments
of the transaction system are provided below.
[0085] In one embodiment, the STN database 6 is used to facilitate
the merging of a newly acquired cardholder base with an established
cardholder base. For example, when a bank or other institution
sells a cardholder base to a card provider 3, the card provider 3
creates new physical accounts for the acquired cardholders and does
not issue new cards. The STN database 6 is updated to associate the
acquired cardholder account numbers to the newly created accounts.
This allows the cardholders' existing physical cards to still be
used and processed appropriately. The card provider (BIN) routing
is modified for the acquired accounts so authorization requests and
settlements are sent to the card provider 3 instead of to the bank
or other institution. CAS 7 and FINCAP 10 recognize these acquired
accounts as STN 15 accounts and translate the numbers
appropriately. The end result is that charges made by the acquired
cardholders end up on a statement generated by the card provider
3.
[0086] In another exemplary embodiment of the transaction system, a
card provider 3 may provide a line of credit to a customer or to a
merchant 2 or group of merchants who can private label for use by
their customers. This allows the merchant 2 to provide a branded
line of credit with minimal or no changes to the credit card
authorization and settlement process. In one embodiment, the
merchant 2 approves a line of credit or asks the card provider 3 to
approve a line of credit for the customer. The card provider would
then issue a STN 15 to the customer via the merchant 2. This STN 15
is generally used with the merchants 2 who are issuing the line of
credit. When the customer wants to make a purchase using the
merchant's line of credit, the merchant forwards a standard credit
request to the card provider 3 with the STN 15 used as the credit
card number in the transaction protocol. The card provider 3
verifies that the line of credit is authorized and was submitted by
the merchant 2 issuing the line of credit associated with this STN
15. The card provider transaction system (via the STN transaction
system 18) is capable of denying usage of this line of credit at
another non-participating site. The card provider 3 may provide a
private label or co-branded web, site to apply for the line of
credit. The card provider's back end system 14 then bills the
customer and pays the merchant. The merchant 2 may keep the
electronic line of credit privately at their site, or provide it to
the customer, the authorization system would not authorize usage at
other sites.
[0087] FIG. 13 depicts an exemplary transaction process for use in
providing lines of credit to merchants 2. A cardholder 1 or
customer (who may or may not be an existing card member of the
participating card provider 3) applies for an electronic line of
credit (ELOC) with a merchant 2 (step 221), the merchant 2
redirects the cardholder 1 to the card provider's 3 website to till
out the ELOC application 30 (step 222). A fraud check 31 is
performed (step 223) and a credit inquiry is typically performed by
any credit bureau company 33 (step 224). If a card processing
system 32 determines that credit is acceptable, an account is set
up (step 225). A physical card 34 is not generated as with typical
processes and may need to be purged depending on the particular
system set-up (step 226). The account is sent to the account
management system 35 (step 227) and then forwarded to the STN
database 6 and the application server 5 (step 228). The cardholder
1 account is then related to a valid merchant identification number
such as the SE number 36 (step 229). An account is then set-up with
a ELOC profile 37 and at this point the secondary transaction ELOC
number is passed back to the cardholder 1 (step 230). The merchant
2 submits the ELOC payment request to CAS 7 (step 231), and CAS 7
routes the ELOC to the STN system (step 232), where the STN system
verifies that the SE number is approved for this particular ELOC
(step 233). The STN system translates the ELOC STN to the related
account in the account management system and returns the ELOC STN
to merchant (step 234). The merchant is then required to submit the
authorization code with the receipt of charges (ROC) and summary of
charges (SOC). The merchant submits the ROC and/or SOC to the card
provider's FINCAP 10 (step 235), whereupon FINCAP forwards the ELOC
to the STN system (step 236). The STN system verifies that (i) this
SE number is valid for the particular ELOC account (step 237) and
(ii) the particular transaction was authorized for the specific
ELOC account (step 238). The STN system then flips the card number,
returns it to FINCAP 10, whereupon, the number is forwarded to the
card provider's accounts receivable system 11 (step 239). FINCAP
forwards the ELOC STN and associated information to the Accounts
Payable system 9 (step 240) and pays the merchant 2 (step 241).
[0088] Another exemplary embodiment allows a cardholder to fund an
online digital wallet with the secondary transaction number. In
this embodiment, after generation and association with the primary
charge card, the secondary transaction number is provided to the
cardholder to use within a designated digital wallet. Which may
reside locally at the cardholder's computer or may be stored in an
online password protected account.
[0089] In yet another alternative embodiment, the secondary
transaction system may be used to facilitate programs involving
non-currency tender, such as the American Express.RTM. Membership
Rewards as Currency.TM. system that is detailed in U.S. Provisional
Application No, 60/200,492, filed on Apr. 28, 2000, and U.S.
Provisional Application No. 60/201,114, filed on May 2, 2000, which
are hereby incorporated by reference. One embodiment of this
system, depicted in FIG. 14, allows a cardholder 1 to create a STN
15 to be used to spend membership rewards points. In general, a
membership or incentive rewards program is a loyalty program that
rewards cardholders for using their charge card to make purchases.
Cardholders accumulate points by using a participating charge card
or by purchasing products at a participating merchant. These points
may then be converted to a monetary value and redeemed to purchase
merchandise.
[0090] As depicted in FIG. 14, a cardholder 1 accesses and logs
onto the card provider's services via a user interface system 4
(e.g., an internee connection) (step 251). The cardholder 1
proceeds (clicks on hyperlink) to the membership rewards (MR)
system 95, where she indicates that she would like to use her
membership reward points that are available in her MR account (step
252). The MR system 95 reports to the cardholder 1 how much the
available MR points are worth (step 253). The cardholder 1
indicates how many of the MR points (converted to monetary value)
should be loaded info an account that can be used for purchases
(step 254). In an exemplary embodiment, the STN 15 can be
associated with a MR account, i.e., a primary charge card account
that is funded with these MR points. Use of this MR account may be
limited by the card holder 1 or the card provider 3, or could be
further limited by the MR system rules of use that may have been
predefined by participating merchants (step 255). Once the MR
system 95 has approved the request and allocated the requested MR
points, the STN system 18 associates a STN 15 and establishes an
MR-STN 15 profile (256). The MR-STN profile contains the options
that will be applied and the amount that will be available to the
resulting STN 15. The STN system 18 returns the STN 15 (and other
account information) to the MR system 95 to provide to the
cardholder 1 for use in completing subsequent transactions (e.g.,
online purchases) (step 257).
[0091] When desiring to purchase products using the MR point-funded
STN 15, the cardholder 1 proceeds to a merchant site (e.g., online
website), selects goods and is requested by the merchant to provide
payment information (e.g., via an online payment web page). The
cardholder 1 chooses the appropriate card provider 3 as the form of
payment (e.g., American Express.RTM., Visa.RTM., etc.) and enters
the STN 15 (and other needed information) into the appropriate
payment fields (step 258). The merchant processes the STN 15
authorization as discussed above (step 259), where the card
provider CAS 7 recognizes the transaction as involving a STN 15,
and forwards the request to the STN system 18 containing, inter
alia, an application server (FIG. 8, number 5) and a STN database
(FIG. 8, number 6). It should be appreciated that profile
information may be stored in a MR database, STN database 6 or any
other suitable database (step 260). The STN system 18 recognizes
the account as a MR account, and verifies that optional conditions,
if any, are met. If the conditions are not met, an error is
returned to CAS 7 and then to the merchant (step 261). If the
conditions are met, the balance available on the MR-STN profile is
reduced by the purchase amount, a record of the purchase is
recorded in the MR-STN profile, and an approval code is returned to
the authorization system (step 262) and then to the merchant (step
263). Although additional CAS 7 processing is contemplated by this
embodiment, application of additional rules and validations--which
would typically be applied--are not required for this type of
account. The approved purchase is finalized by the merchant with
the STN 15 transaction being submitted through the merchant's
existing POS network for settlement (step 264). The STN 15
transaction is received by the card provider's financial capture
system (FINCAP) 10 (step 265). The FINCAP 10 forwards the STN
transaction to the appropriate AP system 9 (step 266). The AP
system 9 then pays the merchant according to the appropriate
settlement terms and conditions (step 267). The FINCAP 10, having
identified the transaction as involving an STN 15, sends the
transaction information to the STN system 18 (via a backend
application service 8) to identify the actual account number (i.e.
PCC 20) (step 268). The STN system 18 recognizes that the STN 15 is
associated with a MR account, searches for the MR-STN profile and
passes a credit request to the appropriate cardholder 1 MR account
to reduce the available MR points (step 269), and (ii) the
transaction record is used to build a credit against the actual
charge card account (e.g., PCC 20) that will offset the charged STN
15 transaction (step 269h). In the first instance (step 269), the
STN system 18 passes a request to the MR system 95 to deduct the
appropriate number of MR points. In the second instance (step
269b), both the original transaction and the credit are passed back
to FINCAP 10 with the actual charge card account number (e.g., PCC
20 number). The FINCAP 10 then forwards the charge and credit
transactions to the appropriate AR system 11 for normal billing
processing.
[0092] As shown, the embodiment depicted in FIG. 14 allows the
cardholder 1 to spend the MR points in at least two ways. First,
the membership reward points can be deducted at the time of the
transaction processing, or second, the transaction can be reflected
on the cardholder's bill along with an associated credit that
reflects the payment with reward points. It should also be
appreciated that a cardholder 1 may choose to use MR points on a
transaction by transaction basis, and preferably, is able to
combine variations of currency (e.g., credit, debit cards etc.) and
non-currency tender (MR points), as desired, to effectuate a
transaction. Additionally, both currency and non-currency tender
may be integrated into a STN gift, where a first party gifts to a
second party a secondary transaction number that has some currency
or non-currency value.
[0093] Another membership rewards embodiment is shown in FIG. 15.
Here, the cardholder 1 is able to choose to use membership reward
points when shopping at a merchant 2 site that supports the
membership rewards as a payment option. Referencing FIG. 15, the
cardholder 1 goes to a participating merchant's site (e.g., online
website) to shop for goods or services. The cardholder 1 selects
merchandise and continues to a payment site, where the card
provider's MR points is one of the payment options (step 301). When
the cardholder selects this option, a secure connection is
established with the card provider 3 that authenticates both the
cardholder 1 and the merchant 2 (step 302). The card provider 3
requests the cardholder's user ID and Password, either through a
pop up screen, a http redirect link, or an applet downloaded by the
merchant (step 303). The cardholder 1 supplies the User ID and
Password which is returned to the card provider with the purchase
amount (step 304). The card provider user interface 4 (e.g., online
services) causes the cardholder 1 to be authenticated, collects the
associated registered card accounts and invokes the MR system 95
(step 305). The MR system 95 uses these card accounts to identify
the cardholder's MR account (step 306). If none of the registered
accounts are related to a MR account, the cardholder 1 is not able
to use MR points to pay for her purchase and an error is returned
to the cardholder 1. After identifying the MR account, the MR
points available are converted to the corresponding cash equivalent
and compared to the purchase amount being requested. If the
purchase amount is greater than the MR cash equivalent, an error is
returned to the cardholder 1 (step 307). If the MR cash equivalent
is greater than the purchase amount, all card accounts
participating in the MR account are collected and returned to the
cardholder 1 (step 308). The cardholder 1 designates the card
account to be used to house all succeeding financial activity,
which is then returned to the card provider 3 (step 309). The card
provider 3 then triggers the STN system 18 to establish a STN 15
that is associated to the selected MR account number and a MR-STN
account profile is set-up (step 310). The STN system 18 returns the
STN 15 to the User Interface System 4 and then onto the cardholder
1 (step 311). The cardholder 1 cuts and pastes, drags and drops, or
auto-fills the STN 15 (and needed information) into the appropriate
merchant payment field (step 312).
[0094] As previously noted, the merchant uses the existing
authorization network to request authorization for the STN
transaction (step 313). The CAS 7 recognizes the transaction as one
involving a STN 15 and forwards to the STN system 18 (step 314).
The STN system 18 identifies the associated actual account number
(e.g., PCC 20 number) for the STN 15 (step 315) and also recognizes
the account as a MR account. At this point, although all MR
transactions would have been previously verified, the MR account
balance is again checked to minimize possible fraud (e.g., fraud
involving two requests using the same MR points). The cash
equivalent for the MR points for the actual account are then
retrieved from the MR system 95 and if the purchase amount is
greater than the available amount, a denial is returned to the
authorization system and to the merchant 2 (step 316). If the cash
equivalent value of the MR points exceeds the purchase amount, the
STN system records the purchase in the MR-STN profile and returns
the STN 15 to the CAS 7 (step 317). The CAS 7 then completes the
authorization for the actual account (e.g., ensuring that the
limits for the PCC 20 are complied with) (step 318), and returns
the results (e.g., approval code) to the merchant 2 (step 319).
[0095] The approved transaction is finalized by the merchant 2 with
the STN transaction being submitted through the existing point of
sale network for settlement (step 320). As before, the transaction
information is received by the card provider FINCAP 10 (step 321)
and then forwarded to the appropriate AP system 9 (step 322) for
payment (step 323). Since the transaction involves a STN 15, FINCAP
10 directs the transaction to the STN system 18 to identify the PCC
20 (step 324). The STN system 18 identifies the PCC 20 (step 325)
and also recognizes the STN 15 account is set up using MR points,
where the STN system 18 searches the MR-STN profile for the
associated purchase record (step 326). The STN system either (i)
passes a credit request to MR to reduce the MR points (step 326a),
or (ii) creates a credit against the billing transaction (step
326b). In step 326a, the STN system 18 passes a request to the MR
system 95 to deduct the appropriate number of MR points. Here it is
not necessary to return the AR transaction information to FINCAP
for forwarding to the AR system 11, but a reconciliation entry is
created to reconcile the AR for FINCAP 10. In step 326b, a
transaction record is used to build a credit against a real account
number (e.g., PCC 20) that will offset the charge transaction. The
STN system 18 forwards this credit to the FINCAP 10. The original
billing transaction is returned to the FINCAP to appear on the
cardholder's 1 statement. The FINCAP 10 then forwards the charge
transaction to the appropriate AR system for normal processing. The
FINCAP 10 forwards the credit issued by the MR system 95 to the
appropriate AR system 11 for normal billing processing.
Accordingly, the cardholder 1 will see on her statement a credit
reflecting the currency value of the MR points used and a charge in
the amount of the transaction.
[0096] Another embodiment provides for the generation of one or
more STNs that are subordinate to and associated with a main
secondary transaction number that, as described above, is
associated with the cardholder's PCC 20 account. As noted above,
these subordinate numbers may also be digitally stored in devices
such as wireless telephones, PDAs, handheld computers, and the
like. Providing multiple layers of secondary transaction number
provides the cardholder 1 with greater flexibility. For example, a
cardholder on vacation could structure the main STN 15 to be valid
for the duration of the vacation. The cardholder 1 is then able to
generate subordinate secondary transaction numbers (or tertiary
numbers) with varying preferences to take into account various
activities that may occur during the vacation. A cardholder 1 could
structure the main secondary transaction number to have a maximum
credit limit of $3,000 (this assumes that the associated primary
charge card credit limit is equal to or greater than $3,000) that
is good for the duration of the vacation. A subordinate secondary
transaction number may then be provided to the spouse with a $1,000
limit and additional secondary transaction numbers, restricted to
$500 limits, could be provided to the children. Each subordinate
card would be valid only for the duration of the vacation and would
only be valid for the maximum dollar amount specified.
[0097] With reference to FIG. 16, system 1600 facilitates
interaction between a user 1605 and the Translink System 1655
through, for example, a web client 1610 with a network connection
to an internet server 1620. Internet server 1620 may employ an
authentication server 1625 in order to validate and assign proper
permissions to authorized users of Translink System 1655. User
database 1630 stores user credentials and permissions specific to
each user. Internet server 1620 also employs an applications server
1635 to manage various applications and utilities that are utilized
by the system. Application server 1635 may be a stand-alone server
or may comprise software residing within intranet server 1620. ATPT
(automated transaction processing tool) utility 1645 is invoked by
application server 1635 to interact with account database 1650,
card issuer system 1660, and client backend systems 1675. ATPT
utility may further perform data conditioning and formatting for
presentation to user 1605 and for exchange between disparate
computing systems. Account database 1650 maintains data pertaining
to active account numbers. While not shown, application server 1635
may further interface with a report engine to create pre-configured
and; or ad-hoc reports as will be discussed herein.
[0098] In addition to the components described above, Translink
System 1655 may further include one or more of the following: a
host server or other computing systems including a processor for
processing digital data; a memory coupled to the processor for
storing digital data; an input digitizer coupled to the processor
for inputting digital data; an application program stored in the
memory and accessible by the processor for directing processing of
digital data by the processor; a display device coupled to the
processor and memory for displaying information derived from
digital data processed by the processor; and a plurality of
databases. Various databases used herein may include: user database
1630; account database 1650; CAS database 1670; AR (accounts
receivable)/AP (accounts payable) database 185, and/or like data
useful in the operation of system 1600.
[0099] As will be appreciated by one of ordinary skill in the art,
one or more of the components of system 1600 may be embodied as a
customization of an existing system, an add-on product, upgraded
software, a stand alone system (e.g., kiosk), a distributed system,
a method, a data processing system, a device for data processing,
and/or a computer program product. Accordingly, individual system
1600 components may take the form of an entirely software
embodiment, an entirely hardware embodiment, or an embodiment
combining aspects of both software and hardware. Furthermore,
individual system 1600 components may take the form of a computer
program product on a computer-readable storage medium having
computer-readable program code means embodied in the storage
medium. Any suitable computer-readable storage medium may be
utilized, including hard disks, CD-ROM, optical storage devices,
magnetic storage devices, and/or the like.
[0100] The invention contemplates uses in association with loyalty,
incentive or reward programs, web services, utility computing,
pervasive and individualized computing, security and identity
solutions, autonomic computing, commodity computing, mobility and
wireless solutions, open source, biometrics, grid computing and/or
mesh computing. For example, in an embodiment, the transaction
device, reader, and/or transaction device-reader system are
configured with a biometric security system that may be used for
providing biometrics as a secondary form of identification. The
biometric security system may include a transaction device and a
reader communicating with the system. The biometric security system
also may include a biometric sensor that detects biometric samples
and a device for verifying biometric samples. The biometric
security system may be configured with one or more biometric
scanners, processors and/or systems. A biometric system may include
one or more technologies, or any portion thereof, such as, for
example, recognition of a biometric. As used herein, a biometric
may include a user's voice, fingerprint, facial, ear, signature,
vascular patterns, DNA sampling, hand geometry, sound, olfactory,
keystroke/typing, iris, retinal or any other biometric relating to
recognition based upon any body part, function, system, attribute
and/or other characteristic, or any portion thereof. For an
explanation of systems and methods for providing a secondary form
of identification for transaction completion, please see U.S.
patent application Ser. No. 10/708,822, titled "SYSTEM FOR
BIOMETRIC SECURITY USING A FOB," filed Mar. 26, 2004; and U.S.
patent application Ser. No. 10/708,823, titled "METHOD FOR
BIOMETRIC SECURITY USING A TRANSPONDER," filed Mar. 26, 2004, which
are hereby incorporated by reference.
[0101] User 1605 may include any individual, business, entity,
government organization, software and/or hardware that interact
with system 1600 to request account numbers, assign descriptors to
account numbers, define account number constraints, and/or the
like. User 1605 may be, for example, a program manager who
interacts with system 1600 to request transaction account numbers
for specific use by an employee of the corporation. User 1605 may
interface with Internet server 1620 via any communication protocol,
device or method discussed herein, known in the art, or later
developed. In one embodiment, user 1600 may interact with Translink
System 1655 via an Internet browser at a web client 1610.
[0102] Web client 1610 comprises any hardware and/or software
suitably configured to facilitate input, receipt and/or review of
information relating to account numbers or any information
discussed herein. Web client 1610 includes any device (e.g.,
personal computer), which communicates (in any manner discussed
herein) with Translink System 1655 via any network discussed
herein. Such browser applications comprise Internet browsing
software installed within a computing unit or system to conduct
online transactions and communications. These computing units or
systems may take the form of a computer or set of computers,
although other types of computing units or systems may be used,
including laptops, notebooks, hand held computers, set-top boxes,
workstations, computer-servers, main frame computers,
mini-computers, PC servers, pervasive computers, network sets of
computers, and/or the like. Practitioners will appreciate that web
client 1610 may or may not be in direct contact with Translink
System 1655. For example, web client 1610 may access the services
of Translink System 1655 through another server, which may have a
direct or indirect connection to intranet server 1620.
[0103] As those skilled in the art will appreciate, web client 1610
includes an operating system (e.g., Windows NT, 95/98/2000, OS2,
UNIX, Linux, Solaris, MacOS, etc.) as well as various conventional
support software and drivers typically associated with computers.
Web client 1610 may include any suitable personal computer, network
computer, workstation, minicomputer, mainframe or the like. Web
client 1610 can be in a home or business environment with access to
a network. In an exemplary embodiment, access is through a network
or the Internet through a commercially available web-browser
software package.
[0104] Web client 1610 may be independently, separately or
collectively suitably coupled to the network via data links which
includes, for example, a connection to an Internet Service Provider
(ISP) over the local loop as is typically used in connection with
standard modem communication, cable modem, Dish networks, ISDN,
Digital Subscriber Line (DSL), or various wireless communication
methods, see, e.g., GILBERT HELD, UNDERSTANDING DATA COMMUNICATIONS
(1996), which is hereby incorporated by reference. It is noted that
the network may be implemented as other types of networks, such as
an interactive television (ITV) network.
[0105] Firewall 1615, as used herein, may comprise any hardware
and/or software suitably configured to protect Translink System
1655 components from users of other networks. Firewall 1615 may
reside in varying configurations including Stateful Inspection,
Proxy based and Packet Filtering among others. Firewall 1615 may be
integrated as software within intranet server 1620, any other
system components or may reside within another computing device or
may take the form of a standalone hardware component.
[0106] Internet server 1620 may include any hardware and/or
software suitably configured to facilitate communications between
web client 1610 and one or more Translink System 1655 components.
Further, Internet server 1620 may be configured to transmit data to
web client 1610 within markup language documents. As used herein,
"data" may include encompassing information such as commands,
queries, files, data for storage, and/or the like in digital or any
other form. Internet server 1620 may operate as a single entity in
a single geographic location or as separate computing components
located together or in separate geographic locations.
[0107] Internet server 1620 may provide a suitable web site or
other Internet-based graphical user interface, which is accessible
by users. In one embodiment, the Microsoft Internet Information
Server (IIS), Microsoft Transaction Server (MTS), and Microsoft SQL
Server, are used in conjunction with the Microsoft operating
system, Microsoft NT web server software, a Microsoft SQL Server
database system, and a Microsoft Commerce Server. Additionally,
components such as Access or Microsoft SQL Server, Oracle, Sybase,
Informix MySQL, InterBase, etc., may be used to provide an Active
Data Object (ADO) compliant database management system.
[0108] Any of the communications, inputs, storage, databases or
displays discussed herein may be facilitated through a web site
having web pages. The term "web page" as it is used herein is not
meant to limit the type of documents and applications that might be
used to interact with the user. For example, a typical web site
might include, in addition to standard HTML documents, various
forms, Java applets, JavaScript, active server pages (ASP), common
gateway, interface scripts (CGI), extensible markup language (XML),
dynamic HTML, cascading style sheets (CSS), helper applications,
plug-ins, and/or the like. A server may include a web service that
receives a request from a web server, the request including a URL
(http://yahoo.com/stockquotes/ge) and an IP address (123.56.789).
The web server retrieves the appropriate web pages and sends the
data or applications for the web pages to the IP address. Web
services are applications that are capable of interacting with
other applications over a communications means, such as the
Internet. Web services are typically based on standards or
protocols such as XML, SOAP, WSDL and UDDI. Web services methods
are well known in the art, and are covered in many standard texts.
See, e.g., ALEX NGHIEM, IT WEB SERVICES: A ROADMAP FOR THE
ENTERPRISE (2003), hereby incorporated by reference.
[0109] Application server 1635 may include any hardware and/or
software suitably configured to serve applications and data to a
connected web client 1610. Like Internet server 1620, application
server 1635 may communicate with any number of other servers,
databases and/or components through any means known in the art.
Further, application server 1635 may serve as a conduit between web
client 1610 and the various systems and components of the Translink
System 1655. Internet server 1620 may interface with application
server 1635 through any means known in the art including a LAN/WAN,
for example. Application server 1635 may further invoke ATPT
utility 1645, data management server 1640, and/or report engine
1665 in response to user 1605 requests.
[0110] ATPT utility 1645 may include any hardware and/or software
suitably configured to receive requests from web client 1610 via
Internet server 1620 and application server 1635. ATPT utility 1645
is further configured to process requests, construct database
queries, execute queries against account database 1650, as well as
exchange data with card issuer system 1660 and client backend
systems 1675 via middleware 1640. In one embodiment, ATPT utility
1645 may be configured to interact with other Translink System 1655
components to perform complex calculations, retrieve additional
data, format data into reports, create XML representations of data,
construct markup language documents, and/or the like. Moreover,
ATPT utility 1645 may reside as a standalone system or may be
incorporated with application server or any other Translink System
1655 component as program code.
[0111] Middleware 1640 may include any hardware and/or software
suitably configured to facilitate communications and/or process
transactions between disparate computing systems. Middleware
components are commercially available and known in the art.
Middleware 1640 may be implemented through commercially available
hardware and/or software, through custom hardware and/or software
components, or through a combination thereof. Middleware 1640 may
reside in a variety of configurations and may exist as a standalone
system or may be a software component residing within application
server 1635. Middleware 1640 may be configured to process
transactions between ATP utility 1645 and other systems and
components within Translink System 1655 and/or systems and
components residing in card issuer systems 1660 and client backend
systems 1675. In one embodiment, middleware 1640 may comprise web
services that are invoked to exchange data between the various
disclosed systems.
[0112] In order to control access to application server 1635 or any
other component of Translink System 1655, Internet server 1620 may
invoke an authentication server 1625 in response to user 1605
submissions of authentication credentials received at intranet
server 1620. Authentication server 1625 may include any hardware
and/or software suitably configured to receive authentication
credentials, encrypt and decrypt credentials, authenticate
credentials, and/or grant access rights according to pre-defined
privileges attached to the credentials. Authentication server 1625
may grant varying degrees of application and data level access to
users based on information stored within user database 1630. For
example, a program manager may be granted access to request account
numbers on behalf of an employee and enter descriptors, while the
employee may be limited to view account numbers.
[0113] User database 1630 may include any hardware and/or software
suitably configured to facilitate storing identification,
authentication credentials, and/or user permissions. Account
database 1650 stores data relating to account numbers, including
descriptors, lock status, cancellation date, transaction limits,
use parameters, and/or the like. One skilled in the art will
appreciate that system 1600 may employ any number of databases in
any number of configurations. Further, any databases discussed
herein may be any type of database, such as relational,
hierarchical, graphical, object-oriented, and/or other database
configurations. Common database products that may be used to
implement the databases include DB2 by IBM (White Plains, N.Y.),
various database products available from Oracle Corporation
(Redwood Shores, Calif.), Microsoft Access or Microsoft SQL Server
by Microsoft Corporation (Redmond, Wash.), or any other suitable
database product. Moreover, the databases may be organized in any
suitable manner, for example, as data tables or lookup tables. Each
record may be a single file, a series of files, a linked series of
data fields or any other data structure. Association of certain
data may be accomplished through an desired data association
technique such as those known or practiced in the art. For example,
the association may be accomplished either manually or
automatically. Automatic association techniques may include, for
example, a database search, a database merge, GREP, AGREP, SQL,
using a key field in the tables to speed searches, sequential
searches through all the tables and files, sorting records in the
file according to a known order to simplify lookup, and/or the
like. The association step may be accomplished by a database merge
function, for example, using a "key field" in pre-selected
databases or data sectors.
[0114] More particularly, a "key field" partitions the database
according to the high-level class of objects defined by the key
field. For example, certain types of data may be designated as a
key field in a plurality of related data tables and the data tables
may then be linked on the basis of the type of data in the key
field. The data corresponding to the key field in each of the
linked data tables is preferably the same or of the same type.
However, data tables having similar, though not identical, data in
the key fields may also be linked by using AGREP, for example. In
accordance with one aspect of the invention, any suitable data
storage technique may be utilized to store data without a standard
format. Data sets may be stored using any suitable technique,
including, for example, storing individual files using an ISO/IEC
7816-4 file structure; implementing a domain whereby a dedicated
file is selected that exposes one or more elementary files
containing one or more data sets; using data sets stored in
individual files using a hierarchical filing system; data sets
stored as records in a single file (including compression, SQL
accessible, hashed via one or more keys, numeric, alphabetical by
first tuple, etc.); Binary Large Object (BLOB); stored as ungrouped
data elements encoded using ISO/IEC 7816-6 data elements; stored as
ungrouped data elements encoded using ISO/IEC Abstract Syntax
Notation (ASN.1) as in ISO/IEC 8824 and 8825; and/or other
proprietary techniques that may include fractal compression
methods, image compression methods, etc.
[0115] In one exemplary embodiment, the ability to store a wide
variety of information in different formats is facilitated by
storing the information as a BLOB. Thus, any binary information can
be stored in a storage space associated with a data set. As
discussed above, the binary information may be stored on the
financial transaction instrument or external to but affiliated with
the financial transaction instrument. The BLOB method may store
data sets as ungrouped data elements formatted as a block of binary
via a fixed memory offset using either fixed storage allocation,
circular queue techniques, or best practices with respect to memory
management (e.g., paged memory, least recently used, etc.). By
using BLOB methods, the ability to store various data sets that
have different formats facilitates the storage of data associated
with the system by multiple and unrelated owners of the data sets.
For example, a first data set which may be stored may be provided
by a first party, a second data set which may be stored may be
provided by an unrelated second party, and yet a third data set
which may be stored, may be provided by an third party unrelated to
the first and second party. Each of these three exemplary data sets
may contain different information that is stored using different
data storage formats and/or techniques. Further, each data set may
contain subsets of data that also may be distinct from other
subsets.
[0116] As stated above, in various embodiments of system 1600, the
data can be stored without regard to a common format. However, in
one exemplary embodiment of the invention, the data set (e.g.,
BLOB) may be annotated in a standard manner when provided for
manipulating the data onto the financial transaction instrument.
The annotation may comprise a short header, trailer, or other
appropriate indicator related to each data set that is configured
to convey information useful in managing the various data sets. For
example, the annotation may be called a "condition header",
"header", "trailer", or "status", herein, and may comprise an
indication of the status of the data set or may include an
identifier correlated to a specific issuer or owner of the data. In
one example, the first three bytes of each data set BLOB may be
configured or configurable to indicate the status of that
particular data set; e.g., LOADED, INITIALIZED, READY, BLOCKED,
REMOVABLE, or DELETED. Subsequent bytes of data may be used to
indicate for example, the identity of the issuer, user,
transaction/membership account identifier or the like. Each of
these condition annotations are further discussed herein.
[0117] The data set annotation may also be used for other types of
status information as well as various other purposes. For example,
the data set annotation may include security information
establishing access levels. The access levels may, for example, be
configured to permit only certain individuals, levels of employees,
companies, or other entities to access data sets, or to permit
access to specific data sets based on the transaction, merchant,
issuer, user or the like. Furthermore, the security information may
restrict/permit only certain actions such as accessing, modifying,
and/or deleting data sets. In one example, the data set annotation
indicates that only the data set owner or the user are permitted to
delete a data set, various identified users may be permitted to
access the data set for reading, and others are altogether excluded
from accessing the data set. However, other access restriction
parameters may also be used allowing various entities to access a
data set with various permission levels as appropriate.
[0118] The data, including the header or trailer may be received by
a stand-alone interaction device configured to add, delete, modify,
or augment the data in accordance with the header or trailer. As
such, in one embodiment, the header or trailer is not stored on the
transaction device along with the associated issuer-owned data but
instead the appropriate action may be taken by providing to the
transaction instrument user at the stand-alone device, the
appropriate option for the action to be taken. System 1600
contemplates a data storage arrangement wherein the header or
trailer, or header or trailer history, of the data is stored on the
transaction instrument in relation to the appropriate data.
[0119] One skilled in the art will also appreciate that, for
security reasons, any databases, systems, devices, servers or other
components of system 1600 may consist of any combination thereof at
a single location or at multiple locations, wherein each database
or system includes any of various suitable security features, such
as firewalls, access codes, encryption, decryption; compression,
decompression, and/or the like.
[0120] The invention may be described herein in terms of functional
block components, screen shots, optional selections and various
processing steps. It should be appreciated that such functional
blocks may be realized by any number of hardware and/or software
components configured to perform the specified functions. For
example, system 1600 may employ various integrated circuit
components, e.g., memory elements, processing elements, logic
elements, look-up tables, and/or the like, which may carry out a
variety of functions under the control of one or more
microprocessors or other control devices. Similarly, the software
elements of system 90 may be implemented with any programming or
scripting language such as C, C++, Java, COBOL assembler, PERL,
Visual Basic, SQL Stored Procedures, extensible markup language
(XML), with the various algorithms being implemented with any
combination of data structures, objects, processes, routines or
other programming elements. Further, it should be noted that system
90 may employ any number of conventional techniques for data
transmission, signaling, data processing, network control, and/or
the like. Still further, system 90 could be used to detect or
prevent security issues with a client-side scripting language, such
as JavaScript, VBScript or the like. For a basic introduction of
cryptography and network security, see any of the following
references: (1) "Applied Cryptography: Protocols, Algorithms, And
Source Code In C," by Bruce Schreier, published by John Wiley &
Sons (second edition, 1995); (2) "Java Cryptography" by Jonathan
Knudson, published by O'Reilly & Associates (1998); (3)
"Cryptography &. Network Security: Principles & Practice"
by William Stallings, published by Prentice Hall; all of which are
hereby incorporated by reference.
[0121] These software elements may be loaded onto a general purpose
computer, special purpose computer, or other programmable data
processing apparatus to produce a machine, such that the
instructions that execute on the computer or other programmable
data processing apparatus create means for implementing the
functions specified in the flowchart block or blocks. These
computer program instructions may also be stored in a
computer-readable memory that can direct a computer or other
programmable data processing apparatus to function in a particular
manner, such that the instructions stored in the computer-readable
memory produce an article of manufacture including instruction
means which implement the function specified in the flowchart block
or blocks. The computer program instructions may also be loaded
onto a computer or other programmable data processing apparatus to
cause a series of operational steps to be performed on the computer
or other programmable apparatus to produce a computer-implemented
process such that the instructions which execute on the computer or
other programmable apparatus provide steps for implementing the
functions specified in the flowchart block or blocks.
[0122] Accordingly, functional blocks of the block diagrams and
flowchart illustrations support combinations of means for
performing the specified functions, combinations of steps for
performing the specified functions, and program instruction means
for performing the specified functions. It will also be understood
that each functional block of the block diagrams and flowchart
illustrations, and combinations of functional blocks in the block
diagrams and flowchart illustrations, can be implemented by either
special purpose hardware-based computer systems which perform the
specified functions or steps, or suitable combinations of special
purpose hardware and computer instructions. Further, illustrations
of the process flows and the descriptions thereof may make
reference to user windows, web pages, web sites, web forms,
prompts, etc. Practitioners will appreciate that the illustrated
steps described herein may comprise in any number of configurations
including the use of windows, web pages, web forms, popup windows,
prompts and/or the like. It should be further appreciated that the
multiple steps as illustrated and described may be combined into
single web pages and/or windows but have been expanded for the sake
of simplicity. In other cases, steps illustrated and described as
single process steps may be separated into multiple web pages
and/or windows but have been combined for simplicity.
[0123] Practitioners will appreciate that there are a number of
methods for displaying data within a browser-based document. Data
may be represented as standard text or within a fixed list,
scrollable list, drop-down list, editable text field, fixed text
field, pop-up window, and/or the like. Likewise, there are a number
of methods available for modifying data in a web page such as, for
example, free text entry using a keyboard, selection of menu items,
check boxes, option boxes, and/or the like.
[0124] FIG. 17 to 21 are process flow embodiments describing the
interaction between the various system components for the purposes
disclosed herein and are not intended to limit the scope of the
invention. For example, the steps recited in any of the method or
process descriptions may be executed in any order and are not
limited to the order presented. It will be appreciated that the
following description makes appropriate references not only to the
elements depicted in FIGS. 17 to 21, but also to the various system
components as described above with reference to FIG. 16 and the
account number table of FIG. 21.
[0125] As disclosed herein, system 1600 provides users the ability
request single-use account numbers, assign descriptors, define
cancellation dates, set transaction limits, assign use parameters,
and/or the like. In one embodiment, user 1605 establishes a
connection to Translink System 1655 via web client 1610 and is
presented a Translink home page that includes any number of links
to other web pages and web sites. The Translink home page is
accessed, for example, through a link within the card issuer's
official Internet web site. The Translink home page further
includes fields and/or links to facilitate collection of
authentication credentials via entry of a user identifier and
password, smartcard interfaced with a reader, RF tag interfaced
with an RF receiver, a biometric scan, or any other authentication
means known in the art or later developed. The Translink home page
includes a menu with links to web pages to enable user 1605 to
request account numbers, configure account numbers, view account
numbers including status, and/or request reports. Practitioners
will appreciate that the arrangement and distribution of the
functionality disclosed herein is presented for the purpose of
explanation and example only and does not limit the scope of the
invention.
[0126] After user 1605 has provided authentication credentials via
any of the means described above, the credentials are transmitted
to Internet server 1620. Intranet server 1620 invokes
authentication server 1625, which processes the credentials and
executes a query against user database 1630 to retrieve a record
corresponding to the authentication credentials. If corresponding
authentication credentials are not found, then a decline message is
transmitted to web client 1610 via Internet server 1620. If
corresponding authentication credentials are retrieved from user
database 1630, then access privileges are determined and a session
is started for user 1605.
[0127] The above is but one embodiment of an authentication system
that may be employed to limit access to Translink System 1655.
Practitioners will appreciate that system 1600 may implement any
known methods for preventing access from unauthorized users such as
requiring users to register and/or by assigning authentication
credentials to individual users. However, system 1600 anticipates
an authentication server 1625 which is employed to enforce security
policies by allowing varying levels of access to users based on
such policies. Internet security protocols including methods of
authentication and user management are well known in the art,
therefore system 1600 may employ any number of security
architectures and authentication processes which will not be
described a greater detail herein.
[0128] FIG. 16 is an exemplary process diagram for automatic
reconciliation of card transactions, according to an embodiment of
the present invention. After the establishment of a connection to
Translink System 1655 via web client 1610, an interface is provided
wherein user 1605 may request account numbers either singularly or
in bulk. In one embodiment, the account number request interface
provides fields to enable user 1605 to enter a transaction
descriptor in addition to account number parameters governing the
use and management of the account number. Practitioners will
appreciate that these fields may take the form of free-form text
entry fields dropdown menus, option boxes, date selection popup,
and/or the like. Moreover, system 1600 may be configured to make
some fields required while defining others as optional. For
example, entering a cancellation date may be optional, meaning that
if the field is left blank, the account number will not be removed
until it is used to facilitate a purchase transaction.
[0129] As previously mentioned, user 1605 may define account number
parameters to associate with a requested account number. Such
parameters may include, for example, a cancellation date, a
transaction limit, and a use limit. If user 1605 enters a
cancellation date, Translink system 1655 deletes the account number
from account database 1650 after reaching the defined date if the
account number has not been used. A transaction limit may be
defined to ensure that a purchase made using the associated account
number does not exceed a predetermined sum. For example, in
requesting, an account number for the purchase of a laptop
computer, user 1605 may determine, according to company policy,
that the purchases of laptop computers must not exceed $2,000.
Thus, if the account number is used in an attempt to purchase a
$2,100 laptop computer, the transaction would be declined, or the
system may request that the employee provide personal funds or
loyalty points, A USC limit defines how the account number must be
used. In another embodiment, the use limit may define a suggested
use of the account number, or various options for use of an account
number. The use limit may comprise a list of approved service
establishments, wherein if the account number is used to attempt to
facilitate a purchase transaction with a service establishment that
is not listed, the transaction is declined.
[0130] Practitioners will appreciate that a use limit may further
govern purchase transactions by manufacturer, service establishment
location, industry, product type, service type, date, and/or the
like. Moreover, the account number descriptor may also limit the
use of the account number. For example, if user 1605 enters an
"office supplies" descriptor, an attempted purchase of an airline
ticket may be declined. The invention also contemplates that
partial or complete use of the account number outside of the use
limits may result in a decline, a partial decline, a request to use
personal funds, a request to use another account, a request for
additional authentication credentials, a decline based upon the
card holder status, a request to use loyalty points, a request to
charge the transaction to another company or vendor and/or the
like.
[0131] When user 1605 configures an account number request, he may
select a link to add a second account number to the request or
select a link to submit the request (step 1720) to the ATPT utility
1705 for processing. If user 1605 wishes to include more than one
account number to the request, the above steps may be repeated any
number of times until the desired number of account numbers have
been configured and added to the request. In one embodiment, the
account number request interface includes an upload link to enable
user 1605 to upload a request file for a bulk account number
request. The bulk request file may comprise any file format
including, for example, a Microsoft Excel spreadsheet, Microsoft
Word document, an Adobe PDF file, and/or the like. The file may
contain a number of rows, each representing an account number, with
columns for defining a descriptor, a cancellation date, a
transaction limit, and a use limit. Thus, the bulk request file may
be prepared in advance and uploaded to system 1600 by selecting an
"Upload" link from the account number request interface, locating
the file in a "File Open" dialog, selecting the bulk request file,
and selecting an "Upload File" button. After the file has been
uploaded to system 1600, user 1605 may select a link to submit the
bulk request file (step 1720) to the ATPT utility 1705.
[0132] Whether the request is transmitted via a HTML stream
containing one or more account numbers or as a bulk request file,
the request is transmitted (step 1725) to IPM (Integrated Program
Management) 1710 where it is formatted, verified, and processed.
IPM 1710 is linked with an existing card issuance system via web
services, for example, to generate account numbers in accordance
with the request. Information accompanying the request may include
user credentials, a corporate account identifier, and any other
information that is required or desired for the processing of an
account number request.
[0133] Practitioners will appreciate that the request may utilize
an existing card issuer computing processes and architecture. For
example, card issuers such as American Express have existing
systems and processes in place for receiving a request to establish
a transaction account and issue a unique account identifier that is
used by the account holder and merchant to facilitate purchase
transactions. As such, ATPT 1705 may format the request in the
conventional manner. When the request is received by IPM 1710, it
is processed just as any other account request would be processed,
thereby requiring little or no modification to existing card issuer
systems.
[0134] After IPM 1710 has processed the request, one or more
assigned account numbers are transmitted (step 1730) to ATPT
utility 1705. The account numbers are stored with their associated
descriptor and parameters in account database 1650. Referring to
FIG. 21, the diagram illustrates an exemplary database table for
maintaining the single-use account numbers in accordance with an
embodiment of the present invention. The table includes an account
number column 2110 for maintaining the account numbers that were
generated and transmitted to ATPT 1705 in step 1730. Each is a
single-use account number that is locked after it is used for the
intended purchase transaction as shown at 2120. Further, the table
includes a descriptor column for storing the transaction descriptor
as entered by user 1605 when creating the account number
request.
[0135] Practitioners will appreciate that FIG. 21 is a very basic
representation of a database table that may be used to maintain
single-use account numbers and their associated descriptor. As
previously stated, the table may include columns for a cancellation
date, transaction limit, use limit, etc. Moreover, the table may
include primary and secondary keys to associate all of the account
numbers with user 1605, a corporate account identifier, a specific
corporate card account number, and/or the like.
[0136] At any time following the receipt and storage of the
requested one or more account numbers (step 1730), user 1605 may
establish a connection to Translink System 1655 to retrieve one or
more of the account numbers (step 1735). In one embodiment, ATPT
utility 1645 executes a query against account database 1650 to
locate the first available account number that is not locked.
Referring to FIG. 21, when an unlocked account number is located,
an indicator is added to the "locked" field 2120 indicating that
the account number is in use, thereby preventing the duplicate use
of the account number. The account number may be presented within
an interface enabling user 1605 to note or print the account
number. In another embodiment, one or more account numbers may be
transmitted to user 1605 via email, facsimile, text message, or by
any other means known in the art.
[0137] After retrieving the single-use account number, user 1605
may subsequently provide the account number to a service
establishment to facilitate payment for a good or service. The
service establishment may process the account number in the
conventional manner through input to a point of sale device or by
any other means. Moreover, because the account number represents a
true transaction card number, standard settlement systems and
processes may be employed via the card issuer 1660.
[0138] Following the end of each business day, or at any other
predetermined interval, issuer 1715 transmits transactional data
(step 1740) to ATPT 1705 for daily reconciliation. For each
transaction being processed, ATPT utility 1645 executes a query
against account database 1650 using the account number from the
transactional data. Referring again to FIG. 21, after locating a
record corresponding to the account number, the descriptor is
retrieved from the descriptor field 2130 and a record is created in
a reconciled transactions table that includes the account number of
the corresponding descriptor. The record may further include the
transaction date, transaction amount, service establishment
identifier, location, and/or the like.
[0139] After reconciling a transaction account number with an
account descriptor, ATPT 1705 transmits an account cancellation
request (step 1745) to IPM 1710. Because each account number is for
single-use, IPM 1710 is notified when the account number has been
used so that it can be cancelled, thereby eliminating any
possibility that the same account number will be used in a
subsequent transaction. Other events may also trigger a
cancellation of an account number such as, for example, reaching a
defined account number cancellation date prior to the account
number being used in a transaction, improper use of the account
number and/or the like. Defining a cancellation date may prevent
account database 1650 from accumulating a number of active, yet
unused account numbers.
[0140] FIG. 18 is an exemplary process diagram for facilitating a
purchase transaction through a single-use account number in
accordance with an embodiment of the present invention. When an
account number is required for payment to a vendor (step 1800),
determination is made whether the identified vendor is an existing
vendor (step 1805). If the identified vendor is not authorized to
accept the single-use account number for payment, then the
purchaser is notified (step 1830) in order to determine whether to
use an alternative payment method or select a different vendor. In
response to a request to obtain an account number, ATPT utility
1645 issues a query to account database 1650 to retrieve the first
account number that has not been locked, locks the retrieved
account number (step 1810), and communicates the account number to
the user (step 1815). ATPT utility 1645 queries a descriptor table
to retrieve the assigned descriptor corresponding to the account
number and add the descriptor to the account number record (step
1820) in account database 1660. User 1605 then communicates the
account number to the service establishment (e.g., vendor) to
facilitate a payment (step 1825). User 1605 may communicate the
account code to a service establishment by way of at least one of
verbal, telephone, facsimile, purchase order, email, sales
contract, web page, and personal digital assistant.
[0141] FIG. 19 is an exemplary process for facilitating a daily
reconciliation of card transactions in accordance with an
embodiment of the present invention. ATPT utility 1645 receives a
daily transaction file (step 1900) from card issuer 1660. The daily
transaction file contains details relating to any number of
purchase transactions over a defined period of time (e.g.,
twenty-four hours), ATPT utility 1645 processes the file by
extracting transaction details including an account number,
querying account database to retrieve a record corresponding to the
transaction account number, and/or creating a record in a
reconciled transactions table recording the transaction
authorization code, claim number, and/or other transaction details
(step 1910). ATPT utility 1645 frees the reconciled account number
(step 1920) by removing the account number from account database
1650 and transmitting an account number cancellation request to
IPM. In one embodiment, the account number is not canceled and the
lock is removed from account number record in account database
1650.
[0142] FIG. 20 is an exemplary process for facilitating a monthly
reconciliation of card transactions in accordance with an
embodiment of the present invention. To provide holistic reporting
for transactions performed both within and outside of Translink
System 1655. ATPT utility 1645 receives a monthly transaction file
(step 2000) from card issuer 1660. The monthly transaction file
contains details relating to any number of conventional and
single-use account purchase transactions over a previous month.
ATPT utility 1645 matches individual bills with each corresponding
record within the client's accounting system according to
authorization code (step 2010) and compiles a report detailing an
client's spend activity over the previous month (step 2020). In one
embodiment, user 1605 may interact with ATPT utility 1645 to
generate reports for other months as well. For example, user 1605
may select to view a reports summarizing the previous quarter on a
month-by-month basis.
[0143] While the steps outlined above represent a specific
embodiment of the invention, practitioners will appreciate that
there are any number of computing algorithms and user interfaces
that may be applied to create similar results. The steps are
presented for the sake of explanation only and are not intended to
limit the scope of the invention in any way.
[0144] Benefits, other advantages, and solutions to problems have
been described herein with regard to specific embodiments. However,
the benefits, advantages, solutions to problems, and any element(s)
that may cause any benefit, advantage, or solution to occur or
become more pronounced are not to be construed as critical,
required, or essential features or elements of any or all the
claims or the invention, it should be understood that the detailed
description and specific examples, indicating exemplary embodiments
of the invention, are given for purposes of illustration only and
not as limitations. Many changes and modifications within the scope
of the instant invention may be made without departing from the
spirit thereof, and the invention includes all such modifications.
Corresponding structures, materials, acts, and equivalents of all
elements in the claims below are intended to include any structure,
material, or acts for performing the functions in combination with
other claim elements as specifically claimed. The scope of the
invention should be determined by the appended claims and their
legal equivalents, rather than by the examples given above.
* * * * *
References