111111111111111111111111111111111111111111111111111111111111111111111111111
`US008036988B2
`
`(12) United States Patent
`D'Agostino
`
`(10) Patent No.:
`(45) Date of Patent:
`
`US 8,036,988 B2
`*Oct. 11, 2011
`
`(54) SYSTEM AND METHOD FOR PERFORMING
`SECURE CREDIT CARD TRANSACTIONS
`
`CA
`
`(76)
`
`Inventor:
`
`John D'Agostino, Sarasota, FL (US)
`
`FOREIGN PATENT DOCUMENTS
`2167543
`7/1997
`(Continued)
`
`OTHER PUBLICATIONS
`
`( *) Notice:
`
`Subject to any disclaimer, the term of this
`patent is extended or adjusted under 35
`U.S.c. l54(b) by 0 days.
`
`This patent is subject to a terminal dis(cid:173)
`claimer.
`
`(21) Appl. No.: 12/902,399
`
`(22)
`
`Filed:
`
`Oct. 12, 2010
`
`(65)
`
`Prior Publication Data
`
`US 201110071945 Al
`
`Mar. 24, 2011
`
`(63)
`
`(51)
`
`(52)
`(58)
`
`(56)
`
`Related U.S. Application Data
`
`Continuation of application No. 111252,009, filed on
`Oct. 17, 2005, now Pat. No. 7,840,486, which is a
`continuation of application No. 10/037,007, filed on
`Nov.
`9,
`2001,
`now abandoned, which
`is
`a
`continuation-in-part of application No. 09/231,745,
`filed on Jan. 15, 1999, now Pat. No. 6,324,526.
`
`Int. Cl.
`G06Q 40/00
`U.S. Cl.
`705/44
`Field of Classification Search .
`705/44
`See application file for complete search history.
`
`(2006.01)
`
`References Cited
`
`U.S. PATENT DOCUMENTS
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`3,938,091 A
`2/1976 Atalla et al.
`4/1977 McCune et al.
`4,016,405 A
`4,023,012 A
`5/1977 Ano et al.
`(Continued)
`
`Lee et al.: Evoluntionary business models for e-cash with smart
`cards, Korea Advanced Institute of Science and Technology, Korea,
`htp://koasas.kaist.ac.kr/bitstrearn/l0203/4774/1/2000-092.pdf , pp.
`352-358.*
`
`(Continued)
`
`Primary Examiner - Bijendra K Shrestha
`(74) Attorney, Agent, or Firm - Maxey Law Offices, PLLC;
`Stephen Lewellyn
`
`ABSTRACT
`(57)
`A method and system of performing secure credit card pur(cid:173)
`chases 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 pay(cid:173)
`ment categories which define the dollar amount for the pur(cid:173)
`chase and specific, predetermined time parameters within
`which authorization by the custodial authorizing entity will
`remain in effect. The custodial authorizing entity then gener(cid:173)
`ates a transaction code which is communicated exclusively to
`the customer wherein the customer in tum 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 desig(cid:173)
`nated one of the plurality of predetermined payment catego(cid:173)
`nes.
`
`38 Claims, 2 Drawing Sheets
`
`54
`
`60
`
`56
`
`Customer
`
`Merchant
`
`Compo
`
`44'
`
`62
`
`Authorizing Entity
`
`45'
`
`45'
`
`MasterCard, Exh. 1001, p. 1
`
`

`

`US 8,036,988 B2
`Page 2
`
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`......................... 705/39
`
`MasterCard, Exh. 1001, p. 2
`
`

`

`US 8,036,988 B2
`Page 3
`
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`OTHER PUBLICATIONS
`
`Jones, R.: Prepaid cards, an emerging internet payment mechanism,
`the Nuvantage Group, Jun. 2001, pp. 1-9.*
`Anne Finnigan. The Safe Way to Shop Online, Good Housekeeping,
`pp. 1-2 (Sep. 1998).
`Blake Ives & Michael Earl. Mondex International Reengineering
`Money, London Business School Article,
`isds.bus.lsu.edu/cases/
`mondex.html, Nov. 1,2001.
`Bob Woods. New Dell E-Commerce Guarantee Called 'Weak',
`Newsbytes News, pp. 1-2 (Sep. 1998).
`CITI.COM, Total Fraud Protection . .. Solutions for Your Safety and
`Peace ofMind (printout) CBSD002144-CBSD002153.
`
`Eran Gabber & Abraham Silberschatz. A Minimal Distributed Pro(cid:173)
`for Electronic Commerce, www.usenix.org/publications
`tocol
`(Article), Oakland, USAa, Nov. 18-21, 1996.
`GE Capital Financial Inc., GE Pre-Authorization System (GE's
`website printout).
`Jones, R. Prepaid Cards, An Emerging Internet Payment Mechanism,
`The Nuvantage Group, Jun. 2001, pp. 1-9.
`Keith Lamond. Credit Card Transactions Real World and Online,
`www.virtualschools.edu/mon/ElectronicProperty/klamond/credit_
`card.htm, Sep. 11,2001.
`Larry Chase. Taking Transactions Online, Target Marketing, pp. 1-4
`(Oct. 1998).
`Lee, et al. Evolutionary Business Models ofe-Cash with Smart Cards,
`Korea Advanced Institute of Science and Technology, Korea, http://
`koasas.kaist.ac.kr/bitstrearn/ 10203/4774/1/2000-092 .pdf,
`pp.
`352-358.
`Matt Barthel. Diebold Plans Major Push in Marketfor Debit-Card
`Point ofSale Terminals, American Banker, pp. 1-2 (Sep. 28, 1993).
`Netchex-A Short Brief, www.tml.hut.fi/Studies/Tik-ll0.50/1997/
`Ecomerce/netchex-5html (Article), Nov. 5, 2002.
`Owen Thomas. Money Changers, www.ecompany.com (Article),
`Oct. 2000.
`Paul Demery. Attaching the Smart Card Fortress, Credit Card Man(cid:173)
`agement, pp. 1-4 (Sep. 1998).
`Putting Risk in Perspective (Article), Internet Outlook (Jul. 20,
`1997), vol. 1, No.3, www.webreference.com.
`Re-examination of U.S. Patent No. 6,324,526 granted to John
`D' Agostino, assigned U.S. Appl. No. 90/007,481, filed Mar. 28,
`2005.
`Smart Card New Ltd's Information Gateway, www.smartcard.co.uk/
`articles/electronicmoney.html, Nov. 1,2001.
`Smart Cards, disc.cba.uh.edu (printout), Nov. 1, 2001.
`Steven P. Ketchpel & Andreas Paepcke. Shopping Models: A Flexible
`Architecturefor Information Commerce, dbpubs.stanford.edu:8090,
`Oct. 1, 2002 (Stanford, USA).
`Vincent Moscaritolo & Robert Hettinga. Digital Commerce for the
`Rest of Us Apple in a Geodesic Economy, www.shipwright.com/
`rants/ranLI5.html (Article), Sep. 4, 1996.
`Virtual Credit Card (VCe), www.geocities.com/Eureka/Park/5014/
`vcc.htm (printout). Jun. 28, 1999.
`* cited by examiner
`
`MasterCard, Exh. 1001, p. 3
`
`

`

`u.s. Patent
`
`Oct. 11, 2011
`
`Sheet 1 of2
`
`US 8,036,988 B2
`
`Contact
`Customer
`
`Terminate
`
`18'
`
`18
`
`Customer Retrieves
`Promotional
`Information
`
`Generate
`Transadion
`Code
`
`Transmit
`Transaction Code
`To Customer
`
`Customer Transmits
`Transaction Code
`To Merchant
`
`10
`
`12
`
`14
`
`16
`
`20
`
`22
`
`24
`
`Terminate
`Transaction
`
`Inform
`Customer
`
`30
`
`28
`
`26
`
`FIG. 1
`
`MasterCard, Exh. 1001, p. 4
`
`

`

`u.s. Patent
`
`Oct. 11,2011
`
`Sheet 2 of2
`
`US 8,036,988 B2
`
`54
`
`56
`
`o
`
`Customer
`
`Compo
`
`Tel.
`
`58
`
`42'
`
`66
`
`Merchant
`
`Tel.
`
`Compo
`
`56'
`
`44'
`
`Authorizing Entity
`
`64
`
`45'
`
`FIG.2
`
`60
`
`56
`
`Merchant
`
`Compo
`
`45'
`
`54
`
`Customer
`
`Compo
`
`Tel.
`
`42'
`
`66
`
`66'
`
`62
`
`66'
`
`56'
`
`44'
`
`Authorizing Entity
`
`45'
`
`64
`
`45'
`
`FIG. 3
`
`MasterCard, Exh. 1001, p. 5
`
`

`

`US 8,036,988 B2
`
`1
`SYSTEM AND METHOD FOR PERFORMING
`SECURE CREDIT CARD TRANSACTIONS
`
`CROSS-REFERENCE TO RELATED
`APPLICATIONS
`
`This application is a continuation of pending U.S. patent
`applicationSer. No. 11/252,009, filed on Oct. 17, 2005, which
`is a continuation of U.S. patent application Ser. No. 10/037,
`007, filed on Nov. 4, 2001, which is a continuation-in-part of
`U.S. patent application Ser. No. 09/231,745, filed on Jan. IS,
`1999 and now U.S. Pat. No. 6,324,526, issued on Nov. 27,
`2001, which the entirety of each are incorporated herein by
`reference.
`
`BACKGROUND OF THE INVENTION
`
`1. Field of the Invention
`This invention relates to a system and method of perform(cid:173)
`ing secure credit card purchases in connection with remote
`commercial transactions, wherein a credit card holder does
`not have to reveal their credit card number to a merchant or a
`mechanism controlled by the merchant in order to accomplish
`a purchase, and wherein the merchant is still assured of the
`necessary credit verifications and approvals prior to authoriz(cid:173)
`ing and/or completing a credit card transaction,
`thereby
`increasing overall security by minimizing any access to credit
`card numbers without having to substantially modifY or devi(cid:173)
`ate from existing, accepted credit card transaction practices.
`2. Description of the Related Art
`The utilization of credit and debit cards to conduct trans(cid:173)
`actions is ever increasing. This is especially the case with
`remote or "mail-order" transactions wherein merchants
`desire to be assured of a payment prior to shipping a product.
`For example, recent years have seen a substantial increase in
`the popularity of televised shopping networks to further
`supplement the popularity ofcatalogue type sales. Moreover,
`the increasing use and popularity of distributed computer
`networks such as the internet has also contributed to the
`dramatic increase in the number ofremote commercial trans(cid:173)
`actions conducted every day.
`One primary reason associated with the rapid growth of
`remote commercial transactions is the ability ofa merchant to
`reach an almost limitless number of potential customers at a
`substantially insignificant cost and with little or no operating
`overhead since an actual store is not required. Additionally,
`such sales techniques permit customers to view the products
`and services in a greatly expanded marketplace, representing
`a great number ofvendors, without extensive travel and with(cid:173)
`out foregoing the privacy and convenience of their home or
`other predetermined computer site in some cases. Simply put,
`a telephone or like commnnication avenue is all that is needed
`to place the consumer in contact with the merchant and com(cid:173)
`plete the transaction.
`The vast increase in popularity of remote commercial
`transactions conducted over the telephone or internet is fur(cid:173)
`ther facilitated by the relatively simple protocols and proce(cid:173)
`dures necessary to conduct such transactions. In particular, in
`order to complete a valid transaction, a merchant need not
`physically see the customer or the credit card, but must 60
`merely accept and enter a customer's credit card acconnt
`number and an expiration date thereofto obtain authorization.
`This same convenience, however, is the primary disadvantage
`and/or problem associated with conducting commerce in the
`manners set forth above. Specifically, there is a great reluc- 65
`tance on the part of the customer to transmit the credit card
`acconnt
`information,
`including the credit card number,
`
`2
`because of the proliferation of fraud, and a well recognized
`lack of security directed to the protection of such account
`information. Indeed, it has been established that security and
`privacy concerns are realistic due to the fact that credit card
`account data is easily readable or interceptable by unautho(cid:173)
`rized parties, and can be readily used for all types of remote
`transactions with minimal risk ofbeing physically caught. In
`fact, unscrupulous individuals have many ways of gaining
`access to a consumer's legitimate remote transactions and
`10 thereby obtaining the credit card information. This informa(cid:173)
`tion can be obtained from old credit card receipts or even from
`the unauthorized notation and use ofthe information by mer(cid:173)
`chants or their employees after a legitimate transaction is
`made. Naturally, the latter is the most difficult to prevent
`15 utilizing known methods and systems unless a consumer is
`willing to completely forego the use of a credit card for
`purchases.
`In the case of computerized remote transactions, as mes(cid:173)
`sages, including account data or other confidential informa-
`20 tion, move across the internet, they can easily pass through
`numerous computers, anyone of which can be utilized to
`copy such confidential information or data, thereby leading to
`a further risk of potential fraud when conducting such trans(cid:173)
`actions. Presently, some companies currently seek to address
`25 such security and privacy concerns by the employment of
`encryption programs and techniques. To this end there is an
`extensive facility associated with both public and private
`encryption schemes being deployed in order to guard the
`private or secured information being transmitted across the
`30 internet or like world wide networks. Unfortunately, however,
`even with such encryption techniques, the account informa(cid:173)
`tion must usually still ultimately be transmitted to a third
`party who did not previously have access to that information
`previously. Even some more sophisticated systems which
`35 seek to interpose a separate computer or encryption entity
`between the consumer and the merchant so as to obtain autho(cid:173)
`rization and forward it to the merchant, that information must
`still be made available to and/or transmitted to that third party,
`thereby leaving open an avenue for fraud or theft. Further,
`40 such encryption techniques, even if minimally effective for
`computerized remote transactions, are not truly useable for
`other conventional types ofremote transactions, or even nor(cid:173)
`mal in person transactions.
`Based on the above, there is an obvious need in the field of
`45 art associated with remote commercial transactions for a sys(cid:173)
`tem and method ofperforming secure credit card purchases of
`goods and services which truly reduces the risk of potential
`fraud and theft by eliminating outside access to a consumer's
`private credit card information without requiring complex
`50 encryption equipment or significantly altering the ease and
`convenience of current transaction techniques. Further, such
`a system and method should also be effective for use in
`conventional, "in person" transactions as well, thereby pro(cid:173)
`viding an added measure of security and minimizing the
`55 hazards associated with the passing on of account informa(cid:173)
`tion by unscrupulous merchants. Also, such a system should
`provide limits to potential loss or liability in a manner which
`does not impede the transaction.
`
`SUMMARY OF THE INVENTION
`
`The present invention is directed towards a system and
`method of performing secure credit card purchases, wherein
`payment for goods or services purchased is efficiently accom(cid:173)
`p ished while eliminating the necessity of disclosure or dis(cid:173)
`semination of a consumers specific credit card number or
`other account data which the customer or other individual
`
`MasterCard, Exh. 1001, p. 6
`
`

`

`US 8,036,988 B2
`
`10
`
`3
`may wish to maintain in confidence. The system and method
`of the present invention incorporates the advantage of con(cid:173)
`summating the purchase by the customer through the selec(cid:173)
`tion of anyone of a plurality of predetennined payment
`categories. Collectively, the payment categories represent a
`variety of methods for accomplishing payment for a fixed
`transaction, a multiple transaction and/or a repeating transac(cid:173)
`tion.
`One embodiment of the system and method of the present
`invention comprises a customer
`receiving infonnation,
`including specific data necessary for the purchase of any
`given product or service. This promotional information gen(cid:173)
`erated by the merchant can be received by any ofa plurality of
`conventional means including advertisements, catalogues,
`computer network connections, direct person to person cus- 15
`tomer and merchant contact,
`telephone solicitation, mail
`orders, etc. Once the customer has identified the product or
`services which he/she wishes to purchase, the customer con(cid:173)
`tacts and supplies a custodial authorizing entity with the
`requisite information concerning both the identification of a 20
`specific credit card or debit card account and a requested
`payment category. Additionally, security against unautho(cid:173)
`rized use of confidential account data may also preferably
`include information relating to the merchant's identification
`and/or location.
`The custodial authorizing entity is preferably defined as the
`entity which has or has been assigned the custodial responsi(cid:173)
`bility for the financial account data ofa customer's credit card
`account, including a previous knowledge of the credit card
`number and other information such as credit limits, payment 30
`history, available credit amounts and other information which
`will determine the status of a given credit card account in
`terms of authorizing a requested payment for a current pur(cid:173)
`chase.
`As part of the security system for accomplishing a com- 35
`mercial transaction utilizing credit card or debit card pay(cid:173)
`ment,
`the custodial authorizing entity includes sufficient
`facilities, preferably including a processing computer or like
`applicable hardware for the generation of an exclusive trans(cid:173)
`action code. The transaction code is to be used in substitution 40
`for the credit card number and when utilized as authorized,
`will issue the merchant a credit approval, and will accomplish
`payment for the goods or services desired in the nonnal
`fashion nonnally associated with a credit or debit card trans(cid:173)
`action, without the publication or dissemination of an identi- 45
`fying credit card number for a specific customer's account to
`any entity that is not already aware of that infonnation.
`Further, a feature of the transaction code is its ability to
`indicate anyone of preferably a plurality of predetermined
`payment categories which may be either requested by the 50
`customer or automatically chosen by the custodial authoriz(cid:173)
`ing entity based on the type ofaccount or the type ofpurchase
`or other commercial transaction involved. Each of the pay(cid:173)
`ment categories are reflective of a different type of payment
`desired or required to consummate the intended purchase. 55
`More specifically, the plurality of payment categories may
`include a single transaction involving a specific dollar amount
`for a purchase within a specific time period, such as twenty
`four hours, during which authorization of the purchase
`remains valid. Alternately, a single transaction may be 60
`involved wherein a maximum limit or a dollar amount is
`determined above which the purchase will become invali(cid:173)
`dated and further wherein a fixed period of time is preferably
`established for maintaining authorization of such purchase.
`Other alternatives would involve one or more of the catego- 65
`ries coded to define multiple transactions involving a maxi(cid:173)
`mum dollar amount for purchases, as well as a fixed period of
`
`4
`time for authorization of such purchases, and/or a repeating
`transaction wherein payments may be automatically accessed
`by a merchant over a predetennined or unspecified time inter(cid:173)
`val (such as every thirty days) for a specific dollar amount or
`a maximum dollar amount limit. Also, limits solely as to a
`specific merchant or a given time period can be effectively
`established for which the transaction code is valid.
`A further feature ofthe present invention to be described in
`greater details hereinafter, is the requirement that the trans(cid:173)
`action code, once received by the customer is transmitted to
`the merchant by the customer or a person specifically autho(cid:173)
`rized by the customer. Only minimal contact by the merchant
`and the custodial authorizing entity is provided for purposes
`ofthe merchant verifYing the validity of the transaction code
`utilizing a conventional process electronically or otherwise
`similar to the verification of a credit card number nonnally
`offered to a merchant for the purchase of goods or services.
`There is, therefore, no disclosure, publication or other dis(cid:173)
`semination of the specific credit card number of a given
`customer account beyond those entities who already know the
`information, and the transaction code is transmitted exclu(cid:173)
`sively to the customer by the custodial authorizing entity who
`has the ability to better identifY whether the customer is
`25 properly authorized to use the account. Moreover, the trans(cid:173)
`action code, once given out by the customer, only has a
`limited usefulness, thereby limiting the risk of misuse and
`minimizing the potential losses to be experienced by the
`credit card company and/or the account holder.
`Accordingly, it is an object of the present invention to
`provide a system and attendant method for perfonning
`remote commercial transactions utilizing credit cards, which
`maximizes the security of the transaction and limits the
`potential liability to be experienced from a fraudulent trans(cid:173)
`action.
`Yet another object of the present invention is to provide a
`secure system and method for establishing credit card pur(cid:173)
`chases which eliminate the disclosure or dissemination ofthe
`actual credit card number to anyone other than a custodial
`authorizing entity which normally has custodial responsibili(cid:173)
`ties for account infonnation including the previously estab-
`lished credit card number.
`It is another object of the present invention to provide a
`system and method of establishing secure credit card pur(cid:173)
`chases through the generation of a transaction code which
`renders it extremely difficult or impossible to access or infil(cid:173)
`trate a customer's credit card account by unauthorized means.
`It is yet another object ofthe present invention to provide a
`secure method of completing a remote commercial transac(cid:173)
`tion which eliminates the need to convey actual account infor(cid:173)
`mation to a merchant, but which allows the merchant to
`conduct a nonnal verification of infonnation needed to con-
`summate a given purchase.
`It is also an object of the present invention to provide a
`system and attendant method of accomplishing secure credit
`card purchases which eliminates the need to disclose or dis(cid:173)
`seminate a given credit card number while providing the
`customer with the versatility of choosing anyone of a plural(cid:173)
`ity of predetermined payment categories.
`It is yet another feature of the present invention to provide
`a system and method of accomplishing secure credit card
`payments having the versatility of allowing the customer to
`select anyone of a plurality ofpayment categories which are
`indicative ofa variance in the amount of a purchase as well as
`the time in which authorization for such payment is valid.
`
`MasterCard, Exh. 1001, p. 7
`
`

`

`US 8,036,988 B2
`
`5
`These and other objects, features and advantages of the
`present invention will become more clear when the drawings
`as well as the detailed description are taken into consider(cid:173)
`ation.
`
`BRIEF DESCRIPTION OF THE DRAWINGS
`
`For a fuller understanding of the nature of the present
`invention, reference should be had to the following detailed
`description taken in connection with the accompanying draw(cid:173)
`ings in which:
`FIG. 1 is a schematic representation of a flow chart show(cid:173)
`ing various steps involved in the performance of the system
`and method ofthe present invention for the secure credit card
`purchasing;
`FIG. 2 is a schematic representation similar to that of FIG.
`1 wherein customer to merchant contact is accomplished by
`conventional facilities such as television; and
`FIG. 3 is a schematic representation similar that of FIG. 2
`wherein customer to merchant contact is established either by
`phone or in person.
`Like reference numerals refer to like parts throughout the
`several views of the drawings.
`
`DETAILED DESCRIPTION OF THE PREFERRED
`EMBODIMENT
`
`As shown in the accompanying Figures, the present inven(cid:173)
`tion is directed towards a system and method for accomplish(cid:173)
`ing secure credit card purchases. Moreover, these purchases
`can be "in person", but preferably include remote commercial
`transactions such as mail order, purchases over the intemet,
`television solicitations, telephone solicitations, etc. Security
`is establish by virtue ofthe elimination ofthe need to disclose
`an active credit card number and expiration date to the mer(cid:173)
`chant or any other party other than the original credit card
`company, issuing bank or like financial institution which
`already has custodial responsibilities for the financial or
`account data associated with a given customer's credit card
`account.
`More specifically and with reference to FIG. 1 the system
`as well as an attendant method is preferably instigated by the
`customer viewing a product, identifYing a desired amount for
`a transaction and/or receiving promotional information as at
`10, either in person or by any of the electronic or more
`conventional techniques which will be described in greater
`detail with reference to FIGS. 2 through 3. Once the customer
`reviews the product or promotional information and has suf(cid:173)
`ficient information, such as including price, product or ser(cid:173)
`vice identification, payment requirement, etc., regarding the
`remote commercial transaction to be conducted, the customer
`contacts, either by computer, telephone or in person, a custo(cid:173)
`dial authorizing entity as at 12. The custodial authorizing
`entity may herein be defined as comprising that entity or
`institution which has or has been designated by the entity
`which has custodial responsibility for the financial data and
`security of a given credit card account of a customer. As set
`forth above such custodial authorizing entity can be repre(cid:173)
`sented by the credit card company issuing a credit card to a
`given customer or alternately can be represented by a bank or
`other financial institution serving to sponsor a credit card or
`debit card to the extent of processing the debits and credit
`associated therewith. The authorizing entity's custodial
`responsibilities of course includes the previous knowledge
`and/or storage ofthe credit card number serving to identify a
`specific customer's credit card account. Once contacted, the
`customer then supplies appropriate identification data to
`
`6
`inform the custodial authorizing entity of a specific custom(cid:173)
`er's credit card account as at 14. In addition, the customer will
`supply the custodial authorizing entity with additional
`required information needed to consummate the purchase as
`well as ensure the security of the account in order to prevent
`its unauthorized use. Such additional information may pref(cid:173)
`erably include the identification ofthe merchant or merchants
`involved, when such information is deemed necessary, and a
`requested one of a plurality of predetermined payment cat-
`10 egories to facilitate consummation of the purchase of the
`products or services desired. Such predetermined plurality of
`payment categories will be discussed in greater detail here(cid:173)
`inafter.
`Once the appropriate information has been received from
`15 the customer as indicated at 16, the custodial authorizing
`entity verifies the credit card status and account identification
`of the customer to determine the viability of the account in
`terms of dollar amount limits, payment history, available
`credit balance, etc. Ifthe accessed credit card account is not in
`20 good standing, the custodial authorizing entity will perma(cid:173)
`nently or temporarily terminate the transaction as at 18 and/or
`communicate to the customer directly as at 18' by any appli(cid:173)
`cable means for purposes of informing the customer of the
`unacceptable status ofthe accessed credit card account. Ift