==f!ltase type a plus sign (+) inside this
`
`C2=2
`.... =•
`~ gROVISIONAL APPLICATION FOR PATENT COVER SHEET (Small Entity)
`~ m
`This is a request for filing a PROVISIONAL APPLICATION FOR PATENT under 37 CFR 1.53 (c).
`
`~Given Name (first and middle [if anyJ)
`
`INVENTOR(S)IAPPLICANT(S)
`
`Family Name or Surname
`
`Residence (City and either State or Foreign Country)
`
`----· ~~
`
`Morris E.
`
`Cohen
`
`Brooklyn, New York
`
`] Additional inventors are being named on page 2 attached hereto
`TITLE OF THE INVENTION (280 characters max)
`
`Apparatus and Methods for Improved Credit Cards and Credit Card Transactions
`
`Direct all correspondence to:
`
`CORRESPONDENCE ADDRESS
`
`0 Customer Number I
`t8J Firm or
`Morris E. Cohen, Esq.
`lndivic:i_~~! Name --·----
`,
`Address
`Levisohn, Lerner, Berger & Langsam
`,.
`------ - - - - - · ·
`757 Third Avenue, Suite 2400
`, i~ddress
`-·----1------ -----·
`New York
`------·
`- - -
`us
`
`I
`
`Place Customer Number
`Bar Code Label here
`
`···---·
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`·----
`
`----··
`
`---····
`
`- - - ·
`_. .. _____
`State
`New York
`Telephone 212-486-7272
`
`· · - , - - - · - - ·---·
`10017
`ZIP
`··-1-··
`Fax
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`···-
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`
`A check or money order is enclosed to cover the filing fees
`
`~
`D The Commissioner is hereby authorized to charge filing fees or
`J
`I
`credit any overpayment to Deposit Account Number:
`The invention was made by an agency of the United States Government or under a contract with an agency of the United States Government
`181 No.
`D Yes, the name of the U.S. Government agency and the Government contract number are:
`
`~
`
`Respectfully submitted,
`
`• SIGNATURE ~ie~A~t~,' a/_~:::::=:::::::::::::_ ___ ~----
`
`TYPED or PRINTED NAME Morris E. Cohen
`
`TELEPHONE
`
`212-486-7272
`
`Date
`
`03/30/1998
`j
`L-------------------------~
`REGISTRATION NO.
`(if appropriate)
`
`39,947
`
`USE ONLY FOR FILING A PROVISIONAL APPLICATION FOR PATENT
`SEND TO: Box Provisional Application, Assistant Commissioner for Patents, Washington, DC 20231
`I
`
`(Page 1 of 1
`
`P19SMALUREV04
`
`:OR
`
`;
`
`'City
`-----·--
`Country
`
`:~ Specification
`' -~
`
`Drawing(s)
`
`..
`
`,.
`
`Numb" of Pages ffi ~ Small Entity Statement
`
`ENCLOSED APPLICATION PARTS (check all that apply)
`
`Number of Sheets
`
`1
`
`Other (specify)
`
`D
`
`I
`METHOD OF PAYMENT OF FILING FEES FOR THIS PROVISIONAL APPLICATION FOR PATENT (check one)
`FILING FEE
`AMOUNT
`
`MasterCard, Exh. 1016, p. 1
`
`

`
`Apparatus and Methods for Improved Credit Cards
`and Credit Card Transactions
`
`Inventor:
`
`Morris E. Cohen
`
`Brooklyn, New York
`
`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 infonnation, and then uses that
`
`infonnation 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 transactions in particular. Transmission of credit card
`
`infonnation over the Internet has long been suspect due to the risk of individuals monitoring
`
`traffic over the network and then using that infonnation for their personal gain. While
`
`secure networks and connections have been increasingly available 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 infonnation could be intercepted.
`
`In addition, monitoring, control and regulation of expenditures 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
`
`1
`
`MasterCard, Exh. 1016, p. 2
`
`

`
`regulation. Accordingly, there are 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.
`
`Summary of the Invention
`
`It is an object of the present invention to provide improved credit cards and methods
`
`for credit card transactions.
`
`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.
`
`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
`
`2
`
`MasterCard, Exh. 1016, p. 3
`
`

`
`transactions.
`
`In accordance with the invention, a variety of new forms of credit cards and credit
`
`card methods are disclosed herein. In some of the disclosed embodiments, the cards and
`
`methods provide improved credit cards and methods providing for customization, limited use,
`
`single use (disposability), or so forth. Additionally or alternatively, in some of the disclosed
`
`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 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.
`
`Brief Description of the Drawings
`
`Figure 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 embodiment of the present invention,
`
`to address the problem of credit card fraud, a new system of disposable credit card 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
`
`3
`
`MasterCard, Exh. 1016, p. 4
`
`

`
`•
`
`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 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 investigating and resolving such
`
`matters) before dealing with the results of the potential theft. Rather, all numbers used over
`
`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 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 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 consistent with the inventions
`
`herein. Although reference is occasionally made to either the disposable credit card
`
`embodiment or the customized credit card embodiment 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 indistinguisable from permanent, ordinary credit card
`
`numbers. By making the customized credit card number indistinguishable from regular
`
`numbers both users and vendors are encouraged to use the credit card in the same manner as
`
`4
`
`MasterCard, Exh. 1016, p. 5
`
`

`
`regular credit cards.
`
`Similarly, by making the temporary disposable numbers (or likewise the customized
`
`credit card number) indistinguishable 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 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 conjunction 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 unsecure 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
`
`5
`
`MasterCard, Exh. 1016, p. 6
`
`

`
`•
`
`•
`
`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 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.
`
`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 for one time
`
`only or customized use.
`
`6
`
`MasterCard, Exh. 1016, p. 7
`
`

`
`•
`
`•
`
`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 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 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 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 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 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
`
`7
`
`MasterCard, Exh. 1016, p. 8
`
`

`
`•
`
`•
`
`therein. After using a number once, the user has to go back to the calculator to get the next
`
`number for the next 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 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 user's account
`
`for more than one transaction, or of compromising 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 automatically 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) 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 or on a customized basis,
`
`the credit card or number could also be associated with a certain sub limit 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 fraud.
`
`The present invention could also be used to provide a disposable card for a single
`
`8
`
`MasterCard, Exh. 1016, p. 9
`
`

`
`•
`
`•
`
`transaction to users in general (or a customized card for a limited use), including users who
`
`do not have a permanent credit card. It could also be 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 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 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 system, the vendor is required to verify the code
`
`immediately upon receipt. This prevents undue time from elapsing, which is undesirable
`
`from a security standpoint. Upon receiving the request for verification, the credit card
`
`company notes the identity of the vendor, authorizes the transaction (if the credit card
`
`number is valid and the purchaser has sufficient funds available), and forwards the
`
`authorization code to the vendor. At the same time, the credit card company also deactivates
`
`the credit card number from any 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
`
`9
`
`MasterCard, Exh. 1016, p. 10
`
`

`
`•
`
`illegal transaction, the transaction will be declined since the number has already 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 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 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
`
`10
`
`MasterCard, Exh. 1016, p. 11
`
`

`
`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 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
`
`corresponds 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 transaction 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 information 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,
`
`11
`
`MasterCard, Exh. 1016, p. 12
`
`

`
`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
`
`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.
`
`Although a disposable credit card number system is preferred, as described above,
`
`alternatively, a special, separate (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
`
`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
`
`12
`
`MasterCard, Exh. 1016, p. 13
`
`

`
`•
`
`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 any
`
`13
`
`MasterCard, Exh. 1016, p. 14
`
`

`
`one 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. 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 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 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 organization could provide a customized use card for use
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`by employees and/or members and so forth. Different cards or customization parameters
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`could be provided for officers, board members, executives, or so forth.
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`As one example, an employee could be given authorization to purchase a new
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`computer system. A customized credit card could be issued to the user which is only valid
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`for use for that particular type of charge (computer hardware and software stores) and to the
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`credit limit decided by the issuer or authorizing party at the corporation, such that if the
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`employee tries to use it for anything else or for a charge in excess of that authorized, the
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`MasterCard, Exh. 1016, p. 15
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`charge will be declined. The card could even customized for use in a particular store itself
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`or a particular chain of stores (such as a particular restaurant, or a particular chain of
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`restaurants). Any of the features in the present application can also be combined -- thus, the
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`employee could be given a card for use in any computer store which is good for a total
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`purchase of up to, for example, $2000 in value.
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`As another example, a parent could give a teenage child a card to go out and make a
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`specific purchase for the child or for the parent. The card could be valid only for purchase
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`on that particular day, to a certain designated purchase limit, and even, if desired only in a
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`certain store, or group of stores or types of stores (e.g. clothing stores), or types of
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`purchases or items. The main account could have, for example, a $1500 credit card limit,
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`but the parent could set a $100 limit for use of the customized card on that particular day.
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`Thus, if the card is lost or stolen, the card can not be used at stores other than the types
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`chosen by the parent. Use in any other type of store or on any day other than that one day
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`will cause the card to be declined. This minimizes the amount of credit card loss which can
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`occur, and increases the chances of catching the thief. Likewise, the sublimit of $100 also
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`minimizes the amount of loss which is possible.
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`The card could also be customized to be valid only in a particular region. For
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`example, if the employee is going on a business trip from New York to Florida and back, the
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`card could be set to be valid only in the States of New York and Florida, and not to be valid
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`for charges in any other locations. If the card were lost or stolen en route, e.g. in a stopover
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`in Georgia, and the thief attempted to use the card in Georgia, the charge would be declined,
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`irrespective of the amount involved.
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`MasterCard, Exh. 1016, p. 16
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`The amount of credit on the card could be as high as the credit on the main account,
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`or alternatively, could also be customized. The main cardholder (e.g. the corporation, the
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`parent, etc.) can set how much credit is on the particular card for the subuser (e.g. the
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`employee). This can be done in some fixed manner, on the basis of some formula, or so
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`forth.
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`Self transfer of funds and customization by the corporation or the user of the card is
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`preferred. In other words, the corporation determines what uses and/or amounts are set on
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`the credit card up to the corporation's total credit card limit.
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`In one embodiment, with respect to customization, the user receives one or more
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`credit cards, each of which is inactive. Each card has a blank amount of credit, and no
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`predefined use, i.e. the card initially has no credit available on it at all and no use available
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`to it. When the user receives the credit card, or when the user is ready to activate the card,
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`the user determines how much of his or her available credit he or she wants to transfer onto
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`that particular card and what particular uses or types of uses are desired (or even all uses, if
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`desired). For example, the user may decide that he or she wants to go to a particular place
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`or store that day and have a certain amount of money with himself or herself (or wants to
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`send his or her employee with a certain amount). In addition to or in place of carrying cash,
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`the user could carry a card having a predetermined amount on it, and could even, if desired,
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`set the places or types of places where the card will be active.
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`In another embodiment, a user can designate a single sum for use over a plurality of
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`cards. This method overcomes a variety of problems present with the current methods of the
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`art. For example, if a individual or couple wishes to go on vacation abroad, they often
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`MasterCard, Exh. 1016, p. 17
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`purchase traveller's cheques in any of a predetermined limited number of denominations (e.g.
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`twenty, fifty, one hundred dollars, etc.) When using those cheques to convert money the
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`couple often may not wish to convert the full sum (e.g. the full fifty dollars) at that one time,
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`in