(12) United States Patent
`Cohen
`
`111111111111111111111111111111111111111111111111111111111111111111111111111
`US006422462Bl
`US 6,422,462 BI
`Jui. 23, 2002
`
`(10) Patent No.:
`(45) Date of Patent:
`
`(54) APPARATUS AND METHODS FOR
`IMPROVED CREDIT CARDS AND CREDIT
`CARD TRANSACTIONS
`
`(76)
`
`Inventor: Morris E. Cohen, c/o 757 Third Ave.,
`Suite 2400, New York, NY (US) 10017
`
`( *) Notice:
`
`Subject to any disclaimer, the term of this
`patent is extended or adjusted under 35
`U.S.c. 154(b) by 0 days.
`
`(21) Appl. No.: 09/280,483
`
`(22) Filed:
`
`Mar. 30, 1999
`
`(60)
`
`Related U.S. Application Data
`Provisional application No. 60/079,884, filed on Mar. 30,
`1998.
`
`G06F 7/08
`Int. CI?
`(51)
`235/381; 235/380; 705/41
`(52) U.S. Cl.
`(58) Field of Search
`235/487, 382,
`235/380, 395, 492, 379; 705/35, 38, 39,
`1,20,26,41
`
`(56)
`
`References Cited
`
`U.S. PATENT DOCUMENTS
`5,293,424 A *
`
`3/1994 Holtey et al.
`
`5,696,965 A * 12/1997 Dedrick
`5,705,798 A *
`1/1998 Tarbox
`5,706,442 A *
`1/1998 Anderson et al.
`5,745,654 A *
`4/1998 Titan
`5,749,075 A *
`5/1998 Toader et al.
`5,963,643 A * 10/1999 Goreta et al.
`5,970,478 A * 10/1999 Walker et al.
`6,003,134 A * 12/1999 Kuo et al.
`6,014,645 A *
`1/2000 Cunningham
`6,145,741 A * 11/2000 Wisdom et al.
`
`395/610
`235/379
`395/227
`395/22
`705/14
`380/9
`705/35
`713/200
`705/38
`235/380
`
`* cited by examiner
`
`Primary Examiner-Thien M. Le
`
`(57)
`
`ABSTRACT
`
`Customized credit and debit cards for issuance by a person
`or main cardholder, the cards being limited to use in trans(cid:173)
`actions at selected vendors only. Thus, for example, a parent
`or corporation can issue a customized card to a person or
`group, wherein the card is only valid for use at restaurants,
`airlines, hotels, certain stores, or so forth.
`
`380/23
`
`25 Claims, 1 Drawing Sheet
`
`Credit card: normally in an "off' state
`
`1
`
`Card turned on by the cardholder for a limited
`time period, use, etc., preferably by a call to the
`company or using a computer to send information
`to the credit card company
`
`1
`
`time
`Card is on, and transactions during that
`period, or
`for
`that use, etc. are authorized/
`approved by the credit card company when the
`vendor requests an authorizationl approval
`
`1
`
`Time period elapses, use occurs, etc.
`
`1
`
`Card reverts to an "off' state, and no transactions
`will be authorized/approved
`
`1
`
`Process is repeated by the cardholder with the
`card as often as the cardholder desires
`
`1
`
`r
`
`1
`
`MasterCard, Exh. 1004, p. 1
`
`

`
`u.s. Patent
`
`Jut 23, 2002
`
`US 6,422,462 BI
`
`Figure 1
`
`Credit card: normally in an "off" state
`
`Card turned on by the cardholder for a limited
`time period, use, etc., preferably by a call to the
`company or using a computer to send information
`to the credit card company
`
`time
`Card is on, and transactions during that
`period, or
`for
`that use, etc. are authorized/
`approved by the credit card company when the
`vendor requests an authorization/ approval
`
`Time period elapses, use occurs, etc.
`
`Card reverts to an "off" state, and no transactions
`will be authorized/approved
`
`Process is repeated by the cardholder with the
`card as often as the cardholder desires
`
`MasterCard, Exh. 1004, p. 2
`
`

`
`US 6,422,462 Bl
`
`1
`APPARATUS AND METHODS FOR
`IMPROVED CREDIT CARDS AND CREDIT
`CARD TRANSACTIONS
`
`RELATED APPLICATIONS
`The present application claims all rights of priority to U.S.
`Provisional Application Ser. No. 60/079,884 filed Mar. 30,
`1998.
`
`5
`
`2
`It is also an object of the invention to provide methods and
`apparatus for transmission of credit card information over
`the Internet with a minimal risk of possible fraud or loss.
`In addition to the prevention and reduction of fraud, it is
`a further object of the invention to provide improved types
`of credit cards, and improved methods for credit card
`transactions.
`In accordance with the invention, a variety of new forms
`10 of credit cards and credit card methods are disclosed herein.
`In some of the disclosed embodiments, the cards and meth(cid:173)
`ods provide improved credit cards and methods providing
`for customization, limited use, single use (disposability), or
`15 so forth. Additionally or alternatively, in some of the dis(cid:173)
`closed embodiments, the cards and methods include new
`forms of credit cards designed to reduce or prevent fraud. In
`addition to, or as an alternative to the prevention of fraud, in
`some of the embodiments disclosed herein, new credit cards
`20 and associated methods are provided for the improvement of
`credit card transactions and/or
`for availability of an
`expanded array of financial products to consumers.
`
`BACKGROUND OF THE INVENTION
`Credit cards are currently a common financial tool. Yet,
`credit card fraud is a considerable concern for credit card
`companies. The problem occurs when an unscrupulous
`individual obtains a copy of a person's credit card
`information, and then uses that information to fraudulently
`charge purchases to the person's card until
`the theft
`is
`noticed and further use of the card is blocked. In addition to
`being a considerable problem for
`the card companies
`themselves, this illegal practice causes inconvenience and
`annoyance for the innocent user whose card has somehow
`been compromised.
`Such fraud is a potential problem in various contexts, but
`recently has become of significant concern in Internet trans- 25
`actions in particular. Transmission of credit card information
`over the Internet has long been suspect due to the risk of
`individuals monitoring traffic over the network and then
`using that information for their personal gain. While secure
`networks and connections have been increasingly available 30
`over the past several years, many are nonetheless unwilling
`to transmit any credit card information over the Internet, due
`to the possibility that valuable credit card information could
`be intercepted.
`In addition, monitoring, control and regulation of expen(cid:173)
`ditures and finances is a frequent concern of companies and
`individuals. It is always desirable to provide apparatus and
`methods which improve the apparatus and methods for such
`monitoring, control and regulation. Accordingly, there are 40
`numerous improvements which have been heretofore
`unknown in the art, which improve the effectiveness, value,
`and/or the efficiency of credit cards, either in general or
`certain types of financial transactions.
`
`BRIEF DESCRIPTION OF THE DRAWINGS
`
`FIG. 1 is a schematic illustration of the customization of
`a credit card in accordance with one embodiment of the
`present invention.
`
`DESCRIPTION OF THE INVENTION
`
`In accordance with the present invention, in one embodi(cid:173)
`ment of the present invention, to address the problem of
`credit card fraud, a new system of disposable credit card
`35 numbers is disclosed herein. These credit cards or credit card
`numbers are generated for a one time, single transaction
`basis, after which they are disposed of, or thrown away. The
`numbers can be used by a user over the Internet or any other
`communications system, whether open or secure, to effect a
`single transaction. After a one time use of the credit card
`number, the number is deactivated by the issuing credit card
`company such that it is no longer available for use. In this
`manner, a credit card company need not wait
`to learn
`45 whether a given credit card number has been intercepted,
`and one or more fraudulent purchases made (with the
`attendant possible loss of time, money and manpower inves(cid:173)
`tigating and resolving such matters) before dealing with the
`results of the potential theft. Rather, all numbers used over
`50 the network, or in a certain context, are assumed insecure,
`and once used for the first time, are no longer available for
`use. By doing so, the company, so to speak, "beats the thief
`to the punch," having already deactivated the number after
`55 a single use of the card, even before learning of the fraud.
`In other embodiments of the invention, customized or
`limited use credit cards are provided. These cards are
`customized, preferably by the user, to suit the user's desires
`or needs. As a result, they provide methods and apparatus
`60 which have been heretofore unknown in the art, but which
`provide benefits that improve the efficiency, ease and uses of
`payment for goods and services.
`Various embodiments of the inventions are possible con(cid:173)
`65 sistent with the inventions herein. Although reference is
`occasionally made to either
`the disposable credit card
`embodiment or the customized credit card embodiment
`
`SUMMARY OF THE INVENTION
`It
`is an object of the present
`invention to provide
`improved credit cards and methods for credit card transac(cid:173)
`tions.
`It is a further object of the present invention to provide for
`customized use credit cards.
`It is a further object of the present invention to provide for
`user-defined credit cards for use in financial transactions.
`It is a further object of the present invention to provide for
`disposable credit cards.
`It is a further object of the present invention to provide for
`limited use credit cards.
`It is a further object of the present invention to provide
`methods and apparatus for secure transmission of credit card
`information.
`It is a further object of the present invention to provide
`methods and apparatus for minimizing credit card fraud, and
`the amounts of loss that could occur should card information
`be intercepted.
`
`MasterCard, Exh. 1004, p. 3
`
`

`
`US 6,422,462 Bl
`
`5
`
`3
`herein, the features disclosed in association with one can
`likewise be applied to the other, as well.
`With respect to the credit card's number itself, in one
`preferred embodiment, for example, the credit card number
`is indistinguishable from permanent, ordinary credit card
`numbers. By making the customized credit card number
`indistinguishable from regular numbers both users and ven(cid:173)
`dors are encouraged to use the credit card in the same
`manner as regular credit cards.
`Similarly, by making the temporary disposable numbers
`(or likewise the customized credit card number) indistin(cid:173)
`guishable in appearance from regular credit card numbers, a
`potential thief is unable to tell in advance that a particular
`number is a disposable number, and already not valid. This
`may in turn enhance the potential of catching the thief by
`alerting the credit card company the first
`time someone
`attempts to illegally use the pilfered number.
`With respect to either the disposable or the customized
`credit card, relevant information (such as the expiration date
`etc.) can either be printed on the card or verbally transmitted
`to the user. Likewise, the limited use nature of the card
`(either in a general sense or the specific limitations), the
`disposability of the card, the range of dates or validity of the
`card, etc. may either be printed on the card or transmitted to 25
`the user, whether verbally or in writing.
`In another embodiment, the customized or the disposable
`number is the user's regular credit card number with a series
`of digits or alphanumeric characters either inserted therein,
`or tacked on at
`the end. This embodiment allows each
`customized or disposable card to be easily noted by the user
`to be a mere extension of his or her regular number.
`Many of the embodiments herein could be used in con(cid:173)
`junction with a policy by the credit card company (or by the
`main cardholder or the user) in which purchases from
`Internet transactions, for example (or purchases over unse(cid:173)
`cure networks), are only accepted if made in conjunction
`with a disposable or customized credit card number.
`The invention can be practiced according to a wide
`variety of embodiments. In one embodiment, for example, a
`user dials into her credit card company before making a
`transaction, and after providing the ordinary credit card
`number and verification data, is provided with a disposable 45
`or customized number and/or mailed, provided with, or
`allowed to activate a disposable or customized card for a
`single or a limited range use.
`In one embodiment of the invention, a user can indicate
`in advance of purchase, on the telephone call with the credit
`card company, what the single use or the customized credit
`card number is to be used for. This can be used to provide
`additional security and/or control
`the uses of the funds
`placed on that card.
`In another embodiment, a user could be provided, each
`month or each year, with a set of disposable, one time only,
`or customized, limited use, numbers and/or cards, which are
`printed on the credit card statement for use during the next
`month or year, or which are mailed to the user. With respect
`to the disposable card, the user is instructed that, after use of
`the number once, the number may not be used again. With
`respect to the customized card, the cards can either be preset
`for certain uses, or the cards can be ready and waiting in the
`user's office or home for setting to the desired use when the
`user is ready.
`
`4
`The user could also be provided with a set of paper (or
`thin plastic) credit cards (preferably with magnetic strips),
`whether along with the customer's monthly statement, with
`a credit card encoder, with an encoding device which
`attaches to the computer and/or the Internet, or otherwise.
`Each of these credit cards could be used once, or on a limited
`or customized basis, after which the credit card could be
`ripped up and discarded. The cards could further have
`printing or indicia on them to remind the user that they are
`10 for one time only or customized use.
`In a further variation on this approach, the paper cards
`and/or the provided numbers must be used in a specific
`required order, for additional security. These paper credit
`15 cards or provided numbers could be unusable until activated
`by the user, as is the practice with new credit cards that are
`sent out by mail.
`In another embodiment, instead of ripping the credit cards
`up, the cards could have a portion which the user writes on
`20 to record the type of transaction, and the amount of the
`transaction. Alternatively,
`the card could have a portion
`which the user signs upon receipt and a portion which is later
`countersigned at the vendor, to provide additional security.
`These credit cards could even have a portion which the
`user signs and provides to a vendor in a store. No vendor
`would ever, under one embodiment of the system, receive or
`have access to the user's permanent credit card number.
`Rather, the vendor (for example, a restaurant in which the
`30 user has just eaten) would receive a disposable credit card
`from the user's supply. The vendor could read the number
`off the disposable or customized card, could scan the number
`with a bar code scanner, could read a magnetic strip on the
`35 disposable card, or so forth. Upon being used once,
`the
`credit card can be marked, if desired, to show both that it has
`been processed to charge money to the person's account, and
`to show that it is no longer usable. This disposable card
`could be returned to the cardholder, saved as a receipt by
`40 either of the cardholder or the vendor, be returned to the
`credit card company, destroyed, or so forth. As noted above,
`signature could be provided once, or two signature lines
`could be provided, for the user to sign and countersign.
`As yet another example, a user could be provided with a
`"calculator" of sorts, of credit card like thickness, which
`stores a predetermined number of disposable numbers
`therein. After using a number once, the user has to go back
`to the calculator to get
`the next number
`for
`the next
`50 transaction. This calculator could also be provided with a
`PIN number to prevent a party from accessing the numbers
`should the user's wallet be stolen or lost.
`Alternatively, a card with multiple numbers stored
`55 thereon (which become activated in a predetermined
`sequence) can be provided, so that the actual credit card
`needs to be available (not just the credit card number) to
`determine the next available number in the sequence. In this
`way no single number alone is capable of compromising the
`60 user's account for more than one transaction, or of compro(cid:173)
`mising the main number in the user's account. This card
`could have an LED or some other visually readable means
`to display the next available card number (either automati-
`65 cally or upon activation of a PIN, if desired). As mentioned
`above, part of the number could be the fixed, base portion
`(which is a number or portion common to all of the numbers)
`
`MasterCard, Exh. 1004, p. 4
`
`

`
`US 6,422,462 Bl
`
`10
`
`5
`and part of the number could be the variable portion (a
`number or portion which varies). Alphanumeric sequences
`or any other symbol or series of symbols can be employed
`for either or both of these portions.
`In addition, since they are for use either on a one shot only 5
`or on a customized basis, the credit card or number could
`also be associated with a certain sublimit of the individual's
`or a corporation's credit limit. Thus, for example, a user with
`a $500 limit, for example, could call into the credit card
`company and obtain a disposable or a customized card
`which itself only has a $50 charge limit (for example, when
`the individual only intends to charge up to $50 in the next
`transaction, or to allow someone else to charge up to $50).
`This further limits the potential losses from a credit card 15
`fraud.
`The present invention could also be used to provide a
`disposable card for a single transaction to users in general
`(or a customized card for a limited use), including users who
`It could also be 20
`do not have a permanent credit card.
`provided to users on a debit basis, based in whole or in part
`upon some reserve or funds provided to the issuing company
`in advance. Alternatively, the user could even identify the
`general or specific type and amount of transaction in
`advance, if desired.
`The present invention, and the disposable embodiments in
`particular, is of additional value for use over the Internet. For
`example, the following system could be employed. Before a
`user makes a potential purchase over the Internet, he or she 30
`accesses one of his or her disposable credit cards or credit
`card numbers. As noted above, this could be accomplished
`by dialing into the credit card company, by removing one of
`a series of disposable cards from the user's monthly
`statement, or so forth. To effect the transaction over the 35
`Internet, the user transmits his or her credit card information
`to the vendor. That vendor then verifies the transaction and
`obtains an authorization code from the credit card company
`authorizing the purchase, as is currently standard practice
`with credit card transactions. To insure the integrity of the 40
`system, the vendor is required to verify the code immedi(cid:173)
`ately upon receipt. This prevents undue time from elapsing,
`which is undesirable from a security standpoint. Upon
`receiving the request for verification, the credit card com- 45
`pany notes the identity of the vendor, authorizes the trans(cid:173)
`action (if the credit card number is valid and the purchaser
`has sufficient funds available), and forwards the authoriza(cid:173)
`tion code to the vendor. At the same time, the credit card
`company also deactivates the credit card number from any 50
`further future use. Thus, if a thief intercepts the credit card
`information en route, when the thief later attempts to take
`that information and to use it in an illegal transaction, the
`transaction will be declined since the number has already 55
`been deactivated. After the number has legitimately been
`used once by the lawful owner,
`it no longer has any
`continuing validity.
`If desired, to remind the user the vendor can transmit a
`message indicating both that the credit card number has been 60
`accepted, and that
`it
`is no longer of validity, and can
`therefore be ripped up. However, if used, this method runs
`the risk of also alerting a thief who is monitoring the Internet
`traffic.
`The credit card company can also monitor all second
`requests for use of that credit card number which are
`
`6
`transmitted to the system. This monitoring can be used to
`attempt
`to catch the thief during his future attempt
`to
`illegally use the card
`As additional security, each of the disposable credit cards
`can be given an expiration date, e.g. the end of the month or
`the end of the billing cycle. Thus, if the credit card is not
`used within the time limit, it expires. (This expiration date
`could be printed on disposable paper credit cards). This
`approach has been used in a different application by credit
`card companies with respect to checks that are sent with the
`statement to the user with a given expiration date. As far as
`the present inventor is aware, that system has been used by
`credit card companies with satisfactory results in the past.
`The card company can also monitor the time of second
`requests. If the time of second request is extremely close to
`that of the first request, then the company can block both
`transactions on the grounds that a thief may be in the process
`of attempting to quickly intercept and use a credit card
`number en route before the user.
`To further add to the security of the system, a function can
`be built into Internet software, such as the popular Internet
`browsers, in which a server assigns a universal time and date
`stamp (based for example on Greenwich Mean Time) to
`25 each credit card transmission transmitted by a user over the
`Internet. Thus the authorized user's transaction will be
`assigned a time and date, such that the credit card company
`can determine, when the same disposable number is sent
`twice within a short time frame, which transaction corre(cid:173)
`sponds to the one in which the number was sent first. A
`function could also be provided in which the Internet
`address of the sender or some other password is encrypted
`and transmitted as well.
`For example, a password which modifies over time and
`which is coded to the time/date stamp can also be integrated
`into the browser. The password is individual to each user,
`with the data summarizing the algorithm used to encode the
`password being provided to the user and to the individual's
`credit card company ahead of time (as part of the security
`information associated with the account). When the trans-
`action is effected,
`the browser sends information to the
`internet provider's server, which sends back the universal
`time/date stamp. The browser then encodes the password
`and sends it back to the server with the credit card infor-
`mation to be transmitted to the vendor.
`The present invention is not limited to use over open
`systems. Rather, it is intended that it can also be used over
`secure systems to provide an additional added level of
`security. Similarly,
`the invention can be used for those
`individuals who own credit cards and wish to purchase items
`over the telephone, but who are reluctant to give out or
`release their credit card information over the phone.
`Likewise, although a variety of security procedures and
`methods are disclosed herein, any of the security procedures,
`protocols, encryption techniques, and so forth, used in the
`art, can be used in connection with the present disposable
`and/or customized credit cards.
`If the disposable credit cards are stolen or lost, the credit
`card company can, of course, minimize loss by simply
`deactivating them upon learning of the theft or loss from the
`65 user. In addition, the placement of sublimits on each of the
`cards, or on the group of cards as a whole, further minimizes
`potential loss.
`
`MasterCard, Exh. 1004, p. 5
`
`

`
`US 6,422,462 Bl
`
`7
`Although a disposable credit card number system is
`preferred, as described above, alternatively, a special, sepa(cid:173)
`rate (disposable or customized) credit card number could
`even be assigned specifically for use over the Internet,
`whose use is subject to higher security measures, whether
`usable one or more than once. For example, after use, the
`user would have to call into the credit card company to
`verify the transaction, or the credit card company would call
`the user at a predetermined number (e.g. the user's home
`number) to verify that the user made the transaction. This
`alternative system could be used for example, exclusively
`with Internet transactions on secure connections, to provide
`an additional
`level of comfort
`to those users who are
`uncomfortable with transmission of card information even 15
`over secure connections. In the event of problems,
`this
`separate Internet credit card number could be deactivated
`separately from the main credit card number associated with
`the account.
`In accordance with further embodiments of the invention,
`customized credit cards are also provided herein. These
`credit cards can be customized by the user such that they are
`only suitable or usable for particular subuses, for particular
`subframes of time, or so forth. This differs from the present
`practice in the art, which is to have credit card numbers
`which are valid for all uses, and for all periods of time until
`the card expires.
`In the current practice in the art, for example, employees
`frequently make payments which are later reimbursed by
`their corporation. In accordance with the present invention,
`their corporation can issue customized credit cards, or obtain
`customized credit cards from a credit card company, which
`can serve certain limited uses, functions or so forth. This
`card can be customized in any of numerous ways. For
`example, the customized card could be set to be valid for a
`certain limited number of dates or until a certain date. For
`example, if an employee is going on a business trip for two
`days (or some other amount of time), the card could be set
`to be valid on only those two days. Thus, the employee is
`authorized to use the card for charges on only that time that
`the employee is away on the business trip, but not for any
`other time. Thus, in accordance with these embodiments, the
`card can have a user customized range of dates or series of
`dates. In one embodiment this is a range of dates with a
`commencement date and expiration date. (This is useful, for
`example, if an employee is going on a business trip, one or
`more cards could be issued which are valid for the dates of
`the trip, with the card not being valid before the trip starts
`or after the trip ends). In another embodiment the card
`becomes valid at any specific time (even a time of day) and
`ceases to be valid at any other specific time. Likewise, the
`card could become valid for a series of ranges of dates, even
`dates which are non consecutive or non contiguous. For
`example, it could be valid for a specific day or series of date
`in March (for a first business trip), become deactivated once
`that trip is over, can be reactivated for a specific day or dates
`in June (for a second business trip), be deactivated once that
`trip is over, and so forth. It could also be valid for a specific
`predetermined amount of time. For example, it could be
`valid for anyone week period, beginning from when the user
`or subuser uses first uses it.
`The card can also be customized for only particular uses
`or groups of uses. In this manner, the main cardholder (e.g.
`
`8
`a corporation, a parent, etc.) can determine in advance what
`the card can or should be used for. For example, the card
`could be customized so that
`it
`is only good for airline
`reservations, such that if the employee tries to use it for any
`5 other type of charge, the charge will be declined, regardless
`of the amount of the transaction involved. Or the card could
`be customized so that it can only be used for airline and hotel
`charges. The types of uses which can be provided include
`any type of use that is currently charged or could in the
`10 future be charged on a credit card, or any combination of the
`same. Currently, charges which are placed on cards, include
`airline, hotel and car rental charges, restaurant bills, retail
`store purchases, and so forth.
`The card can also be customized for use only by a specific
`individual, by certain groups of individuals, or so forth. A
`parent could provide a customized use card which is for use
`by his or her son or daughter, a corporation could provide a
`customized use card which is for use by employees, an
`20 organization could provide a customized use card for use by
`employees and/or members and so forth. Different cards or
`customization parameters could be provided for officers,
`board members, executives, or so forth.
`As one example, an employee could be given authoriza-
`25 tion to purchase a new computer system. A customized
`credit card could be issued to the user which is only valid for
`use for that particular type of charge (computer hardware
`and software stores) and to the credit limit decided by the
`30 issuer or authorizing party at the corporation, such that if the
`employee tries to use it for anything else or for a charge in
`excess of that authorized, the charge will be declined. The
`card could even customized for use in a particular store itself
`or a particular chain of stores (such as a particular restaurant,
`35 or a particular chain of restaurants). Any of the features in
`the present application can also be combined -thus, the
`employee could be given a card for use in any computer
`store which is good for a total purchase of up to, for
`example, $2000 in value.
`As another example, a parent could give a teenage child
`a card to go out and make a specific purchase for the child
`or for the parent. The card could be valid only for purchase
`on that particular day, to a certain designated purchase limit,
`45 and even, if desired only in a certain store, or group of stores
`or types of stores (e.g. clothing stores), or types of purchases
`or items. The main account could have, for example, a $1500
`credit card limit, but the parent could set a $100 limit for use
`of the customized card on that particular day. Thus, if the
`50 card is lost or stolen, the card can not be used at stores other
`than the types chosen by the parent. Use in any other type
`of store or on any day other than that one day will cause the
`card to be declined. This minimizes the amount of credit
`55 card loss which can occur, and increases the chances of
`catching the thief. Likewise,
`the sublimit of $100 also
`minimizes the amount of loss which is possible.
`The card could also be customized to be valid only in a
`particular region. For example, if the employee is going on
`60 a business trip from New York to Florida and back, the card
`could be set to be valid only in the States of New York and
`Florida, and not
`to be valid for charges in any other
`locations. If the card were lost or stolen en route, e.g. in a
`65 stopover in Georgia, and the thief attempted to use the card
`in Georgia, the charge would be declined, irrespective of the
`amount involved.
`
`40
`
`MasterCard, Exh. 1004, p. 6
`
`

`
`US 6,422,462 Bl
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`5
`
`20
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`9
`The amount of credit on the card could be as high as the
`credit on the main account, or alternatively, could also be
`customized. The main cardholder (e.g. the corporation, the
`parent, etc.) can set how much credit is on the particular card
`for the subuser (e.g. the employee). This can be done in
`some fixed manner, on the basis of some formula, or so
`forth.
`Self transfer of funds and customization by the corpora(cid:173)
`tion or the user of the card is preferred. In other words, the
`corporation determines what uses and/or amounts are set on
`the credit card up to the corporation's total credit card limit.
`In one embodiment, with respect to customization, the
`user receives one or more credit cards, each of which is
`inactive. Each card has a blank amount of credit, and no 15
`predefined use, i.e. the card initially has no credit available
`on it at all and no use available to it. When the user receives
`the credit card, or when the user is ready to activate the card,
`the user determines how much of his or her available credit
`he or she wants to transfer onto that particular card and what
`particular uses or types of uses are desired (or even all uses,
`if desired). For example, the user may decide that he or she
`wants to go to a particular place or store that day and have
`a certain amount of money with himself or herself (or wants 25
`to send his or her employee with a certain amount). In
`addition to or in place of carrying cash, the user could carry
`a card having a predetermined amount on it, and could even,
`if desired, set the places or types of places where the card
`will be active.
`In another embodiment, a user can designate a single sum
`for use over a plurality of cards. This method overcomes a
`variety of problems present with the current methods of the
`art. For example, if a individual or couple wishes to go on 35
`vacation abroad, they often purchase traveller's cheques in
`any of a predetermined limited number of denominations
`twenty, fifty, one hundred dollars, etc.) When using
`(e.g.
`those cheques to convert money the couple often may not
`wish to convert