Method and system to prevent fraudulent payment in credit/debit card transactions, and terminals therefor

Abstract

The present invention enables secure, valid card payments in credit transactions to be performed, preventing fraudulent card use even in cases of loss or theft of a card or of information theft. During a transaction authorization process using a transaction terminal disposed in a credit transaction member store and connected with a host computer, user validation or credit administration is carried out by using a portable communication terminal to input to the host computer identity information which has been previously registered in the portable communication terminal and/or location information for the portable communication terminal.

1 . A method for making payments using a portable communication terminal, comprising the steps of: 
 detecting a current location of the portable communication terminal;    storing location information indicating the current location of the portable communication terminal;    receiving card information related to an identity of a credit card user from a transaction terminal in a credit card member store; and    transmitting the location information to a host computer.    
     
     
         2 . The method according to  claim 1  further comprising the steps of: 
 receiving information whether card user is allowed after transmission of the location information.    
     
     
         3 . The method according to  claim 1  wherein the credit card user is recognized as an authentic cardholder when the current location is within a predetermined range from a location of the transaction terminal.  
     
     
         4 . The method according to  claim 1  wherein the credit card user is recognized as an authentic cardholder when the current location is within a predetermined range from a location of the transaction terminal, and the portable communication terminal receives information whether card user is allowed.  
     
     
         5 . The method according to  claim 1  wherein the host computer is capable of accessing a database storing the location of the transaction terminal.  
     
     
         6 . The method according to  claim 1  wherein the location information includes latitude and longitude information.