System and method for performing secure credit card purchases

Abstract

A method and system of performing secure credit card purchases in the context of a remote commercial transaction, such as over the telephone, wherein only the customer, once generally deciding upon a product or service to be purchased, communicates with a custodial authorizing entity, such as a credit card company or issuing bank wherein such entity has previous knowledge of the credit card number as well as custodial control of other account parameters such as interest rate, payment history, available credit limit etc. The customer supplies the custodial authorizing entity with the account identification data such as the credit card number and a requested one of a possible plurality of predetermined payment categories which define the dollar amount for the purchase and specific, predetermined time parameters within which authorization by the custodial authorizing entity will remain in effect. The custodial authorizing entity then generates a transaction code which is communicated exclusively to the customer wherein the customer in turn communicates only the transaction code to the merchant instead of a credit card number. The transaction code is indicative of merchant identification, credit card account identification and a designated one of the plurality of predetermined payment categories.

1 . A method for implementing a system for performing secure credit card purchases, the method comprising the steps:
 a) receiving account information from an account holder identifying an account that is used to make credit card purchases;   b) receiving a request from said account holder for a transaction code to make a purchase within a pre-determined payment category that limits transactions, said payment category including at least one parameter which further limits transactions subsequent to said payment category being predetermined;   c) generating a transaction code utilizing a processing computer of a custodial authorizing entity, said transaction code associated with said account and reflecting at least the limits of said payment category, to make a purchase within said payment category;   d) communicating said transaction code to said account holder;   e) receiving a request to authorize payment for a purchase using said transaction code; and   f) authorizing payment for said purchase if said purchase is within said payment category.   
     
     
         2 . The method of  claim 1 , wherein the step of receiving account information from an account holder identifying an account that is used to make credit card purchases further comprises receiving information identifying a credit card account. 
     
     
         3 . The method of  claim 1 , wherein the step of generating a transaction code utilizing a processing computer of said custodial authorizing entity further comprises generating a transaction code which reflects at least one of a plurality of said payment categories. 
     
     
         4 . The method of  claim 1 , wherein the step of receiving a request from said account holder for a transaction code to make a purchase within a predetermined payment category that limits transactions further comprises receiving a request from said account holder for a transaction code to make a purchase within a payment category that is automatically chosen by a custodial authorizing entity. 
     
     
         5 . The method of  claim 1 , wherein the step of receiving a request from said account holder for a transaction code to make a purchase within a predetermined payment category that limits transactions further comprises receiving a request from said account holder for a transaction code to make a purchase within a payment category that includes time parameters during which the purchase can be completed. 
     
     
         6 . The method of  claim 1 , wherein the step of receiving a request from said account holder for a transaction code to make a purchase within a predetermined payment category that limits transactions further comprises receiving a request from said account holder for a transaction code to make a purchase within a payment category that includes limiting said transaction code to a single transaction for a purchase within a predetermined period of time. 
     
     
         7 . The method of  claim 1 , wherein the step of receiving a request from said account holder for a transaction code to make a purchase within a predetermined payment category that limits transactions further comprises receiving a request from said account holder for a transaction code to make a purchase within a payment category that includes limiting purchases to a single transaction at a maximum amount for purchase within a predetermined period of time. 
     
     
         8 . The method of  claim 1 , wherein the step of receiving a request from said account holder for a transaction code to make a purchase within a predetermined payment category that limits transactions further comprises receiving a request from said account holder for a transaction code to make a purchase within a payment category that includes limiting purchases to at least two purchases at a maximum total amount for items purchased within a predetermined time period. 
     
     
         9 . The method of  claim 1 , wherein the step of receiving a request from said account holder for a transaction code to make a purchase within a predetermined payment category that limits transactions further comprises receiving a request from said account holder for a transaction code to make a purchase within a payment category that includes limiting purchases to a repeating transaction at a fixed amount payable at each of a fixed number of time intervals. 
     
     
         10 . The method of  claim 1 , wherein the step of receiving a request from said account holder for a transaction code to make a purchase within a predetermined payment category that limits transactions further comprises receiving a request from said account holder for a transaction code to make a purchase within a payment category that includes limiting a repeating transaction to a maximum dollar amount. 
     
     
         11 . The method of  claim 1 , wherein the step of receiving a request from said account holder for a transaction code to make a purchase within a predetermined payment category that limits transactions further comprises receiving a request from said account holder for a transaction code to make a purchase within a payment category that includes limiting purchases to a minimum time interval after which a subsequent purchase is permitted. 
     
     
         12 . The method of  claim 1 , wherein the step of communicating said transaction code to said account holder further comprises communicating said transaction code to said account holder at the location of the merchant for use in person. 
     
     
         13 . The method of  claim 1 , wherein the step of receiving a request from said account holder for a transaction code to make a purchase within a predetermined payment category that limits transactions further comprises receiving a request from said account holder for a transaction code to make a purchase within a predetermined payment category that is further limited in accordance with transaction details provided by said account holder. 
     
     
         14 . A method for implementing a system for performing secure credit card transactions, the method comprising:
 a) receiving information identifying an account that is used for credit card transactions;   b) receiving a request to authorize a transaction using a transaction code associated with said account and reflecting at least the limits of a pre-determined payment category that limits transactions, said payment category including at least one parameter which further limits transactions subsequent to said payment category being pre-determined, said transaction code generated and issued by a processing device adapted by a custodial authorizing entity to generate and issue said transaction code;   c) receiving a request to authorize a transaction using said transaction code; and   d) authorizing said transaction if said transaction is within the parameters of said payment category.   
     
     
         15 . A method of  claim 14  wherein said payment category includes a parameter that limits one or more transactions based on the location of one or more merchants. 
     
     
         16 . A method of  claim 14  wherein said payment category includes a parameter that limits one or more transactions based on the identity of one or more merchants. 
     
     
         17 . A method of  claim 14  wherein said payment category includes a parameter that limits one or more transactions based on the amount of at least one transaction. 
     
     
         18 . A method of  claim 14  wherein said payment category includes a parameter that limits one or more transactions based on a time interval that has elapsed since a previous transaction was made using said transaction code. 
     
     
         19 . A method of  claim 14  wherein said payment category includes a parameter that limits one or more transactions based on the time interval that has elapsed since said transaction code has been generated. 
     
     
         20 . A method of  claim 14  wherein said payment category includes a parameter that limits one or more transactions based on the number of transactions. 
     
     
         21 . A method of  claim 14  wherein said payment category includes a parameter that limits one or more transactions based on the number of merchants. 
     
     
         22 . The method of  claim 14  wherein the step of receiving account information from an account holder identifying an account that is used for credit card transactions further comprises receiving information identifying a credit card account. 
     
     
         23 . A method for implementing a system for performing secure credit card transactions, the method comprising:
 a) receiving information identifying an account that is used for credit card transactions;   b) receiving a request to authorize a transaction using a transaction code associated with said account and reflecting at least the limits of a payment category that limits transactions, said payment category including at least one parameter which limits transactions based on information pertaining to a specific transaction, said transaction specific information being provided from the location of a merchant, said transaction code generated and issued by a processing device adapted by a custodial authorizing entity to generate and issue said transaction code;   c) receiving a request to authorize a transaction using said transaction code; and   d) authorizing said transaction if said transaction is within the parameters of said payment category.   
     
     
         24 . A method of  claim 23  wherein said payment category includes a parameter that limits one or more transactions based on the identity of one or more merchants. 
     
     
         25 . A method of  claim 23  wherein said payment category includes a parameter that limits one or more transactions based on the amount of at least one transaction. 
     
     
         26 . A method of  claim 23  wherein said payment category includes a parameter that limits one or more transactions based on a time interval that has elapsed since a previous transaction was made using said transaction code. 
     
     
         27 . A method of  claim 23  wherein said payment category includes a parameter that limits one or more transactions based on the time interval that has elapsed since said transaction code has been generated. 
     
     
         28 . A method of  claim 23  wherein said payment category includes a parameter that limits one or more transactions based on the number of transactions. 
     
     
         29 . The method of  claim 23  wherein the step of receiving account information from an account holder identifying an account that is used for credit card transactions further comprises receiving information identifying a credit card account.