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`Approved for use through 01/31/98. OMB 0651rQ037 ::::=
`Patent and Trademark Office; U.S. DEPARTMENT OF COMMIiR.CE _
`Clot:::)
`PROVISIONAL APPLICATION FOR PATENT COVER SHEET
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`Docket
`Number
`
`032376-003
`
`Type a plus sign (+)
`inside this box
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`-r"'(cid:173)
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`This is a request for filing a PROVISIONAL APPLICATION FOR PATENT under 37 CFR 1.53(c).
`--w.
`~
`c:::;:)
`- - . ; j I_ 0
`
`a _.
`~ =.
`t - c :
`
`LAST NAME
`
`FIRST NAME
`
`MIDDLE INITIAL
`
`INVENTOR(s)/APPLICANT(s)
`
`RESIDENCE (CITY A.'l/D EITHER STATE OR FOREIG:'lI
`COUl\'TRY)
`
`'t:l
`__ '"i
`~~ft
`
`O'Donnell
`
`A CREDIT CARD SYSTEM
`
`.i,,
`
`Daniel
`
`Graham
`
`1.
`
`Dublin, Ireland
`
`Dublin, Ireland
`
`TITLE OF THE INVENTION (280 characters max)
`
`CORRESPOr\'DENCE ADDRESS
`
`-
`:Ronald L. Grudziecki
`-BuRNS, DOANE, SWECKER & MATillS, L.L.P.
`.P.O. Box 1404
`~'Alexandria,
`
`,.STATE
`
`. .-
`
`I Virginia
`
`I ZIP CODE
`
`I 22313-1404
`
`I COUNTRY
`
`I United States of America
`
`ENCLOSED APPLICATION PARTS (check all that apply)
`
`~
`
`.
`
`~
`
`Specification
`
`-IRJ
`~-D Drawing(s)
`I
`
`Number of Pages
`
`28
`
`Number of Sheets
`
`D
`Small Entity Statement
`I]] Other (specify) Claims 1-63, 14 pages;
`Abstract, 1 page
`
`METHOD OF PAYMENT OF FILING FEES FOR THIS PROVISIONAL APPLICATION FOR PATENT (check one)
`$ 0 $75.00
`$ ~ $150.00
`
`rn A check or money order is enclosed to cover the Provisional filing fees
`rn
`
`The Commissioner is hereby authorized to charge any deficiency
`in filing fees or credit any overpayment to Deposit Account Number
`02-4800. This paper is submitted in triplicate.
`
`PROVISIONAL
`FILING FEE
`AMOUNT(S)
`
`• The invention was made by an agency of the United States Government or under a contract with an agency of the United States Government.
`[8]
`o Yes, the name of the u.S. Government agency and the Government contract number are:
`
`No.
`
`TYPED or PRINTE NAME Ronald L. G ziecki
`Registration No. _2:=.4..:.JlL::.9..:..7~0
`(if appropriate)
`D Additional inventors are being named on separately numbered sheets attached hereto
`
`Date
`
`July 13 , 1998
`
`_
`
`(10197)
`
`MasterCard, Exh. 1019, p. 1
`
`

`
`-
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`1 -
`
`orA Credit Card System"
`
`BACKGROUND OF THE INVENTION
`
`Field of the In~ention
`
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`inventi.on relates to a. credi't card system and in
`This
`particular
`to the security of credit cards
`and more
`particularly to remote credit card use that
`is to say
`where the credit card ~s not necessarily physically used
`in the transaction.
`The present invention however is not
`l~ited to such remote credit card use. Generally such
`credit card systems comprise:
`
`least one master credit
`at
`account;
`
`card for
`
`a
`
`customer
`
`a master credit card number allocated to the master
`credit card; and
`
`payment clearance means for a proposed transaction by
`reference primarily to the master credit card number
`and often to other additional
`information.
`
`In this sFecification the term "master credit card number"
`and "master credit card" refer to the credit card number
`and the credit card a~ generally understood namely that
`which i.s allocated by t:.he credit. card provider
`to the
`customer for his or her account.
`It will be appreciated
`that an account may have many master credit cards in the
`sense of ~his specification.
`For example a corporation
`may provide many of its employees with credit cards but
`essentially each of these employees holds a master credit
`card even if there is only one customer accounts. Each of
`these master credit cards will have a unique master credit
`card number which set of master credit card numbers will
`
`MasterCard, Exh. 1019, p. 2
`
`

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`-
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`2 -
`
`be linked to the account. Similarly in families, various
`members of the family may hold a master credit card all of
`which are paid for out of the one customer account.
`
`Background Information
`
`The development of retail electroniC commerce has been
`relatively slow in spits of the perceived demand for such
`trade.
`The single greatest deterrent to the expansion of
`retail electronic commerce is the potential
`for
`fraud.
`This potential for fraud has been a major concern for the
`credit card companies and financial
`institutions as well
`as
`the cust-omers
`and the providers of
`the goods
`and
`services.
`
`fraud, because
`The former are seriously concerned about
`essentially in the long run the financial
`institutions
`have to bear the cost of the fraud. Additionally,
`the
`credit card companies have a very efficient credit card
`system which is working extremely well
`for face to face
`i.e.
`transactions,
`transactions where the credit card is
`physically presented to a trader and the trader can obtain
`the master credit card number, compare signatures and in
`many cases
`photographs before
`accepting a particular
`credit card.
`
`The latter are equally concerned about fraud, being well
`aware that ultimately the user must pay for the service.
`However,
`there are particular personal concerns for the
`consumer in that the fraudulent use of the credit card by
`misuse of the master credit card number by a
`third party
`may not become apparent for some time.
`This can happen
`even if the card is still
`in his or her possessi.on.
`Further when fraud does occur the consumer has the task of
`persuading the credit card provider that fraud did indeed
`occur.
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`MasterCard, Exh. 1019, p. 3
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`3 -
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`There is also the additional fear of being overcharged on
`a credit card. There are thus particular risks for those
`credit card holders who have relatively high spending
`limits,
`in that
`if fraud should occur,
`it may be some
`considerable time before it is detected.
`One particular
`form of
`fraud referred to as
`"skimming"
`is particularly
`difficult
`to control.
`What happens
`is that
`the card
`holder proffers his or her card at an establishment
`to
`make
`a
`transaction
`the
`relevant
`information
`is
`electronically and/or physically copied from the card and
`the card is subsequently reproduced.
`This
`can be
`a
`particular problem with travellers particularly during an
`extensive period of travel as the fraudulent card may turn
`up in other places and it may be some considerable time
`before the fraud is detected.
`
`the credit card holder has to
`For remote credit card use,
`provide details of name, master credit card number, expiry
`date
`and
`address
`and
`often many
`other
`pieces
`of
`information for verification:
`the storing and updating of
`the information is expensive but:. necessary.
`This of
`itself is a considerable security risk as anybody will
`appreciate
`that
`this
`information
`could
`be
`used
`to
`fraudulently charge
`goods
`and
`services
`to the
`card
`holder's credit card account.
`Such fraudulent use is no~
`to
`limited
`to
`those
`people
`whom the
`credit
`card
`information has been given legicimately, anybody who can
`~lle9itirnately obtain such details can conduct such fraud.
`A major problem in relation to this form of fraud is that
`the credit card may still be in t:.he possession of
`the
`legitimate holder as
`these fraudulent
`transactions are
`taki.ng place.
`This is often referred to as "compromised
`numbers ,.
`fraud.
`Indeed all
`this
`fraud needs
`is one
`di.shonest staff member
`for example in a
`shop, hotel or
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`MasterCard, Exh. 1019, p. 4
`
`

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`- 4 -
`
`to record the credit card number.
`restaurant
`not the same as card theft.
`
`It i.s thus
`
`problem,
`to this
`proposed
`been
`have
`solutions
`Many
`them allow the use of e~isting credit
`however, none of
`cards.
`Ideally the solution would be
`to obtain the
`functionality of
`a credit card, while never
`in fact
`revealing the master credit card number. Unfortunately,
`the only way to ensure that master credit card numbers
`cannot. be used fraudulently i.s
`to never
`transmi'C the
`master credit card number by any direct route i.e. phone,
`mail, Internet or even to print out the master credit card
`number during the transaction such as is commonly the case
`at present.
`I~ is thus impossible.
`
`to the limiting of credit card
`The current approaches
`fraud are dependent firstly on the theft of a card being
`reported and
`secondly elaborate verificati.on systems
`whereby altered patterns of use initiate some enqui~ from
`the credit card company. All users of credit cards have
`no doubt received tele~hone calls, when their use of the
`card has been exceptional, or otherwise unusual
`in the
`eyes of
`the organisation providing the verification
`services.
`
`to
`there have been many developments in an effort
`Thus,
`overcome this fundamental problem of fraud, firstly in the
`general area of fraud for ordinary use of credit cards and
`then for
`the particular problems associated with such
`remot.e use.
`
`One of the developments has been the provision of smart
`cards which are credit card devices containing embedded
`electronic circuitry that can either store information or
`perform computations. Generally speaking they contribute
`to credit card security systems by using some encryption
`
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`MasterCard, Exh. 1019, p. 5
`
`

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`- 5 -
`
`system.
`disclosed
`(Vizcaino) .
`
`A
`in
`
`typical
`U.S.
`
`example
`Patent
`
`smart
`such a
`of
`SpecLfication No.
`
`card is
`531i636
`
`Another method used is the Secure Electronic Transaction
`(SET) protocol which represents the collaboration between
`many
`leading computer
`companies
`and
`the credit
`card
`industry which
`is particularly rel~ted to electronic
`transmission of credit card details and in particular via
`the
`Internet.
`It provides
`a detailed protocol
`for
`encryption of credit card details and verification of
`participants in an elec'tronic transaction I
`
`There are then specLfic electronic transaction systems
`such as
`"Cyber Cash",
`"Check Free" and "First Virtual".
`Unfortunately,
`there are serious problems with what has
`been proposed to date. Firstly, any form of reliance on
`encryption is a challenge to those who will
`then try to
`break it.
`The manner in which access has been gained to
`extremely sensitive information Ln Government premises,
`would make even the most foolhardy wary of any reliance on
`an encryption system.
`A further problem is that some of
`the most secure forms of encryption system are not widely
`available
`due
`to
`government
`and
`other
`security
`requirements. Limiting the electronic trading systems and
`security systems for use to the Internet is of relatively
`little use. While it is perceived to be an area of high
`risk,
`in practice to date it is not.
`
`One of the problems with all these systems is that there
`are many competing technologies and therefore there is a
`multiplicity of
`incompatible
`formats whi.ch will be
`a
`deterrent to both traders and consumers. Similarly, many
`of these systems require modifications of the technology
`used at the point of sale, which will require considerable
`investment and further limit the uptake of the systems.
`
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`MasterCard, Exh. 1019, p. 6
`
`

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`6 -
`
`Objects
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`invention is di~ected towards improving the
`The present
`existing credit card system by providing a more secure way
`of using existing credit cards
`and in particular
`to
`providing an improved way of using existing credit cards
`in remote credit card transactions. The present invention
`is .further directed towards providing a more secure way of
`using existing credit cards generally which will not
`require any major modifications to existing credit card
`systems.
`It
`is further directed towards providing an
`improved credit
`card system that will
`be more user
`friendly and will
`provide
`customers with a
`greater
`confidence in the security of Lhe system.
`
`the invention is directed towards providing an
`Further
`improved credit card system that will not necessarily
`require the use of expensive encryption systems.
`The
`present
`invention is also dlrected towards providing an
`improved credit card system which will enable a user to
`obtain the functionality of
`a credit card while never
`revealing the master credit card number.
`
`Further the invention is directed towards overcoming as
`far as possible the incidence of skimming and compromise
`numbers frauds.
`
`Summary of the Invention
`
`25
`
`According to the invention,
`card system comprising:
`
`there is provided a credit
`
`least one master credit card for
`at
`account;
`
`a
`
`customer
`
`MasterCard, Exh. 1019, p. 7
`
`

`
`- 7 -
`
`a master credit card number allocated to the master
`credit card;
`
`payment clearance means for a proposed transaction by
`reference to the master credit card number;
`
`means for generating an additional single use credit
`card number;
`
`for allocating the additional credit card
`means
`number to the master credit card as a further credit
`card number for optional use instead of
`the mas~er
`credit card number;
`
`means for providing the customer with access to the
`additional credit card number; and
`
`a proposed
`for
`additional payment clearance means
`transaction using the additional credit card number
`and for cancellation of
`the credit card nwnber on
`completion of the transaction_
`
`The advantage of this system and the advantage of all the
`systems described in this specification is that the credit
`card holder obtains the functionality of
`a credit card
`without ever
`in fact
`revealing the master credit card
`number in the course of a transaction. Further, as it is
`a
`si.ngle use credit card nunlber,
`the possibility of
`compromised
`numbers
`credi.t
`card
`fraud
`di.sappears.
`Additionally,
`in t.he credit. card system,
`a preset credit
`limit, etc.
`is allocated.
`Irrespective of how the trader
`behaves for ex~nple fraudulently overcharges or provides
`additional goods,
`the total risk to the credit card holder
`is directly related to the preset credit limit.
`
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`MasterCard, Exh. 1019, p. 8
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`

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`-
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`8 -
`
`The credit card number may be cancelled after a preset
`a preset time after issue or if acknowledgement of
`date,
`receipt is not received from the customer after a preset
`time.
`The advantage of this is that if numbers are not
`used
`quick enough or
`if
`there
`appears
`to be
`some
`inordinate delay,
`that
`they are not
`lying around to be
`used at some future date. Similarly, by ensuring that the
`credi.t card number
`is cancelled if acknowledgement of
`receipt is no~ received from the customer after a preset
`time,
`there is little possibility of c~edit card numbers
`falling into the wrong person's hands.
`
`the
`In one particular way of carrying out the invention,
`additional credit card number is provided by sending the
`additional credit card number
`through the post and in
`which the additional credit card number is activated by an
`acknowledgement containing customer account
`information
`not
`transmitted with the additional credit card number.
`This
`is an additional
`securiC.y comfort
`factor
`for
`the
`customer who could possibly be worried that additional
`credit card numbers had been sent in the post and have not
`been received.
`The credit card number can be sent in the
`form of
`a
`computer program,
`actlvated by means of
`a
`separately sent activating password Or may be downloaded
`to a mobile phone and only activated on confirmation of
`receipt by ret.urn of
`a unique confirmation confirming
`message.
`The additional credit card number could be
`provided by an ATM machine or,
`for example, downloaded
`through a smart card. The ways in which the number can be
`provided are almost
`limil.:.less.
`It wi~l be appreciated
`that it is relatively easy for
`the service provider to
`give the customer the correct number.
`
`for allocating the additional credit
`the means
`Ideally,
`card number comprises:
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`MasterCard, Exh. 1019, p. 9
`
`

`
`- 9 -
`
`generating a separate list of random numbers without
`any mathematical relationship with the master credit
`card number; and
`
`allocating the required additional number
`list to the credit card.
`
`from the
`
`It will be appreciated that since there is no mathematical
`relationship with the master credit card number and that
`the list of numbers will be at
`least pseudo random and
`further any number or set of numbers that is allocated to
`a customer is in effect allocated after a random queue has
`been
`formed.
`This
`random queue occurs
`because
`the
`requests for a number or a plurality of numbers will, of
`necessity,
`lead to randomness since it would be impossible
`to predict which customers are looking for numbers at any
`time or how they will be allocated.
`
`the additional credit
`In one embodiment of the invention,
`card numbers are allocated automatically as soon as the
`credit card holder uses more
`than a preset
`amount of
`additional credit card numbers.
`The advantage of this is
`that
`the master credit card holder does not have
`to
`request
`the credit
`card numbers
`each time
`they are
`required.
`
`the invention provides
`Further,
`comprising:-
`
`a credit card system
`
`least one master credit. card for
`at
`account;
`
`a
`
`customer
`
`a master credit card number allocated to the master
`credit card;
`
`payment clearance means for a proposed transaction by
`reference to the master credit card number;
`
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`MasterCard, Exh. 1019, p. 10
`
`

`
`- 10 -
`
`tor generating an additional mUltiple use
`means
`credit card numberj
`
`allocating a preset aggregate credit
`additional credit card number;
`
`limit
`
`to the
`
`card
`additional credit
`for allocating the
`means
`number to the master credi~ card a5 a further credit
`card number
`for optional use instead of the master
`credit card number;
`
`means for providing the customer with access to the
`additional credit card number; and
`
`a proposed
`for
`additional payment clearance means
`transaction using the additional credit card number
`and for cancellation of the credit card number on a
`request for payment of a transaction that would cause
`the preset aggregate credit limit to be exceeded.
`
`Many credit card holders will want a credit card number
`for remote transactions and they are quite willing to use
`the same number
`for
`a
`large number of
`transactions and
`thus take the risk of some possibility of some compromised
`numbers
`fraud taking place but what
`they do not want
`to
`happen is to have a compromised numbers fraud take place
`that would cause the total charge on their account
`to
`exceed a preset
`limit.
`Thus, by providing a preset
`aggregate credit
`limit,
`this possibility of loss due to
`fraud is overcome.
`One can well
`imaging the situation
`where a customer would be quite willing to have the risk
`of
`a
`compromised numbers
`fraud where he or
`she is a
`regular purchaser of a commodity of service, for example,
`theatre tickets where t.he aggregate preset credit
`limit
`was not more than ten times the amount of trade that they
`
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`MasterCard, Exh. 1019, p. 11
`
`

`
`- 11 -
`
`would do by way of remote credit card use over a period,
`for example, of
`two to three months.
`Further,
`it is
`is allocated the
`envisaged that
`a preset credit
`limit
`additional credit card number for each transaction with
`this credit card system.
`The advantage of this is that,
`as well as a preset aggregate credit limit,
`there is also
`a
`limit on each transaction.
`SLffiilarly,
`the additional
`credit card number as heretofore rn~y be cancelled after a
`prese~ date, if acknowledgement of receip~ is not received
`and so on. Again, all ,the ways
`in which the addi~ional
`credit card number is provided for this credit card number
`with a preset aggregate credit limit will be the same as
`for the system as previously described.
`
`5
`
`10
`
`the invention provides
`Further,
`comprising:-
`
`15
`
`a
`
`credi.t card system
`
`20
`
`25
`
`at
`
`least one master credit card for
`
`a
`
`customer
`
`account~
`
`a roaster credit card number allocated to the master
`credit cardi
`
`payment clearance means for a proposed transaction by
`reference to the master credit card numberi
`
`means for generating an additional single use credit
`card for delivery to the customer;
`
`means for allocating an additional credit card number
`to the additional credit card; and
`
`a proposed
`for
`additional payment clearance means
`transaction by reference to the additional credit
`card number and for cancellation of the credit card
`on completion of the ~ransactlon.
`
`MasterCard, Exh. 1019, p. 12
`
`

`
`- 12 -
`
`5
`
`The great advantage of. this present system is that it
`overcomes the problem in relation to compromised numbers
`and remote credit card use fraud but also allows a credit
`card
`to
`be
`proffered in establishment without
`the
`possibility of any skimming fraud occurring. The features
`of the other credit card systems as hereinbefore described
`may be used with the single use credit card.
`Ob~iouslYr
`ATM machines
`are
`a particularly advantageous way of
`providing such a disposable credit card.
`
`10
`
`invention fur~her provides
`The
`cornprising:-
`
`a credit card system
`
`least one master credit card for
`at
`account;
`
`a
`
`customer
`
`a master credit card number allocated to the master
`credit card;
`
`payment clearance means for a proposed transaction by
`reference to the master credit card number;
`
`for generating an additional credit card for
`means
`delivery to the customer;
`
`means for allocatiJ'\g an additional credit card number
`to the additional credit card~
`
`allocating a preset aggregate credit
`additional credit card; and
`
`limit
`
`to the
`
`a proposed
`for
`additional payment clearance means
`transaction by reference to the additional credit
`card number and for cancellation of the credit card
`
`15
`
`20
`
`25
`
`MasterCard, Exh. 1019, p. 13
`
`

`
`- 13 -
`
`on a request for payment of a transaction that would
`cause the preset aggregate limit to be exceeded.
`
`Many a credit card holder would be quite willing to have
`a credit card that can be
`u.sed for
`a certain limited
`length of
`time,
`a certain limited aggregate number of
`transactions or the like.
`This is also provided by this
`invention.
`
`the
`Further,
`comprising:-
`
`invention provides
`
`a credit card system
`
`least one master credit card for
`at
`account;
`
`a
`
`customer
`
`a master credit card number allocated to the master
`credit card;
`
`payment clearance means for a proposed transaction by
`reference to the master credit card number;
`
`for generating an additional credit card for
`means
`delivery to the customer;
`
`means for allocating an additional credit card number
`to the additional credit card;
`
`allocating a preset transaction credit limit to the
`additional credit card for each use; and
`
`a proposed
`for
`additional payment clearance means
`transaction by reference to the additional credit
`card number and for cancellation of the credit card
`on
`a
`request
`for
`clearing
`for
`payment
`of
`a
`transaction that would cause the preset
`transaction
`credit limit to be exceeded.
`
`5
`
`10
`
`15
`
`20
`
`25
`
`MasterCard, Exh. 1019, p. 14
`
`

`
`- 14 -
`
`5
`
`10
`
`15
`
`20
`
`In summary, all of the above systems, depending on various
`features, can ensure that customers are not overcharged
`for goods and services, skimming cannot occur, compromised
`number fraud is almost totally reduced and that there is
`no need for elaborate encryption and other
`systems
`to
`provide the credit card numbers.
`Further,
`for
`traders,
`they have the added advantage, particularly when using
`single use credit card numbers that they know,
`that even
`if it is a fraudulent trade which would be very remote, no
`other trader will also suffer the same fraud as the credit
`card number and/or credit card will be destroyed after a
`single use.
`One of
`the major victims of compromised
`numbers fraud are traders rather than the actual customers
`and thus for the providers of the goods and services, such
`a system is particularly advantageous.
`
`the inventi.on provides
`Further I
`comprising:-
`
`a credit card system
`
`means for generating a single use credit card number;
`
`for allocating a preset credit
`means
`credit card number;
`
`limit
`
`to the
`
`for providing a customer with access to the
`means
`single use credit card number; and
`
`a proposed transaction
`for
`payment clearance means
`using the single use disposable credit card number.
`
`25
`
`Additi.onally,
`comprising:-
`
`there is provided a credit card system
`
`means for generating a single use credit card;
`
`MasterCard, Exh. 1019, p. 15
`
`

`
`- 15 -
`
`for allocatj.ng a preset credi.t
`means
`credit card;
`
`limit.
`
`to the
`
`means for providing a customer access to the single
`use credit card; and
`
`a proposed transaction
`for
`payment clearance means
`using the single use disposable credit card.
`
`the latter two credit card systems is
`The advantage of
`that
`they can be used by either existing customers of a
`credit card prov ider or indeed any third party who does
`not at the time of wishing to use the service possess a
`master credit card or indeed an account with the credit
`card provider.
`Such systems would be particularly useful
`for provision through an ATM machine but could also be
`provided to existing customers through their own accounts.
`
`5
`
`10
`
`15
`
`Description of the Preferred Embodiments
`
`There are essentially two different ways of carrying out
`the present invention.
`In summary they are the allocation
`of additional credit card numbers
`for
`remote trade and
`secondly the provision of what are effectively disposable
`credit cards
`for
`remote and card present
`trade both of
`which have the feature of in the case of single use or in
`the case of multiple use I protecting against
`the wors t
`effects of compromise nwnbers
`fraud or sk.imming.
`In a
`refinement of the invention it is possible to control the
`manner in which an actual transaction is carried out as a
`further protection against unscrupulous prOViders of goods
`and services. Essentially there are certain matters that
`need to be considered in relation to this invention. They
`are firstly the operational or functional features in so
`far
`as
`they effect customers
`and then there are the
`technical features, namely how the invention is carried
`
`20
`
`25
`
`30
`
`MasterCard, Exh. 1019, p. 16
`
`

`
`- 16 -
`
`out ~hen how is the invention provided to the customers
`and finally, how is the invention handled by the providers
`of goods and servi.ces and the processors of
`the credit
`cards i.e. the financial institutions and/or their service
`providers.
`
`functional
`operational or
`the
`firstly with
`Dealing
`foJ:Itl
`is an
`features of
`this invention in its simplest
`added feature to a standard credit card system as defined
`above.
`
`Some accounts may have more t ..han one maste:c credit card in
`that there is more than one credit card prOVided for each
`user however all of these master credit cards generally
`have a different coding or nwnber 50 that
`the vari.ous
`users
`can be
`identified to ensure
`that
`the customer
`account can be correctly debited and then controlled by
`the customer.
`
`The essential feature of the invention is to provide in a
`credi.t card system such that each master credit card
`holder could be provided with one of the following:
`
`additional single use credit card numbers for remote
`transactions;
`
`multiple
`use
`transactions;
`
`credit
`
`card
`
`numbers
`
`for
`
`remote
`
`single use additional credit cards
`card present transactions; and
`
`for
`
`remote and
`
`multiple use credit cards for remote and card present
`transactions.
`
`5
`
`10
`
`15
`
`20
`
`25
`
`MasterCard, Exh. 1019, p. 17
`
`

`
`- 17 -
`
`envisaged that
`a150
`aside
`an
`AS
`in certa~n
`is
`it
`situations credit cards can be provided to people who do
`not have an account with a credit card company.
`Thi.s
`latter feature ~ill be described in more detail below.
`Further various other
`features may be provided in the
`above situations which will further improve the security
`of credit card transactions.
`
`Dealing firstly with the situation where a master credit
`card holder has an additional credit card number allocated
`to him or her for a single use it will be appreciated that
`since the number can only be used for one single remote
`transaction the fact that that number is in anybody else's
`hands is irrelevant as the master credit card number
`is
`not revealed to the third party. Various other features
`may be added to such single use credit card numbers for
`example the value o£ the transaction can be limited thus
`the master credit card holder can have a plurality of
`single use credit card numbers of differing values.
`For
`example, when a
`remote trade is carried out
`the master
`credit card holder will use a credit card number which has
`a credit card limit only marginally above or equal Co that
`of the value of the transaction.
`This would prevent any
`unscrupulous trader using the credit card number to supply
`additional goods or services over
`those ordered or
`to
`increase the agreed charge.
`
`The second embodiment of the invention provides the master
`credit card holder with an additional credit card number
`for use in remote trade which credit card number could
`have as in the previous example of the invention a credit
`limit for each specific transaction or a credit limit such
`that when the aggregate amount of a series of transactions
`specifi.c credit
`the credit card
`exceeded a
`limit
`that
`number would be cancelled,
`invali.dated or in some other
`way deactivated.
`Similarly the multiple use credit card
`
`5
`
`10
`
`15
`
`20
`
`25
`
`30
`
`MasterCard, Exh. 1019, p. 18
`
`

`
`- 18 -
`
`number could be limited to, for example, five uses with a
`credit limit not exceeding $100 in each transaction and an
`aggregate credit
`limit not exceeding S400.
`Similarly a
`time use could be put on such a credit card number in that
`it would be deactivated if it was used more, for example,
`than once a week.
`It will be appreciaced that the limits
`that can be placed on the use of
`a single use credit
`number or a multiple use credit card number are almost
`limitless and anybody can immediately consider other ways
`in which the use of
`the credit card number could be
`limited whether it be by time, by amount, by geographical
`region, or by purpose or use such as limited to Internet
`trade and so on.
`
`The third way in which the invention could be carried out
`is by providing additional single use credit cards each of
`which would have a unique additional credit card number.
`Such additional single use credit cards could then be used
`both for remote trade by using the additional credit card
`number on it or
`for card present
`trade where the card
`would be "swiped" in the normal manner.
`Such a disposable
`credit card would be probably made
`from a
`relatively
`inexpensive material such as cardboard with the relevant
`information entered into it in magnetic form as is already
`the case with many forms of
`tickets for use in public
`transport and the like.
`Again,
`substantial.ly the same
`features as with the credi~ card number could be provided
`thus I
`for example,
`the disposable credit card could be
`limited to use geographically,
`to amount,
`to an expiry
`date and so on. Again,
`the features are lLmitless,
`
`Finally the other major way of carrying out the invention
`is to provide a master credit card holder with a multip~e
`use additional credit card which additional credit card
`which have again any features that are desired.
`
`5
`
`10
`
`15
`
`20
`
`2S
`
`30
`
`MasterCard, Exh. 1019, p. 19
`
`

`
`- 19 -
`
`Ideally, irrespective of the manner in which the invention
`is carried out,
`the master c~edit ca~d holder would be
`provLded with either a plurality of single use additional
`credit card numbers or mUltiple use credit card numbers or
`sLngle and multiple use credits cards.
`
`It will be appreciated that generally with either single
`use credit card nurobers,
`single use additional credit
`cards
`it is possible to eliminate entirely compromise
`numbers
`fraud and that further, depending on the credit
`limit
`imparted to the particula~ credit card number or
`additional credit card nwnber or single use additional
`credit
`card
`it
`is
`possible
`to
`further
`limit
`the
`possibilities of fraud in any remote transaction and that
`with the use of a disposable single use credit card it is
`possible to limit totally the possibilities of skimming.
`
`and
`With multiple use additional credit card numbers
`multiple use additional credit cards this is not totally
`elintinated, however,
`in certai.n circumstances credit card
`users may prefer
`to have,
`for
`example,
`an additional
`credit card number for remote trade with a specific credit
`limit that they use all ths time and are willing to take
`the risk of compromise numbers
`fraud in the sense that
`they can control possibly the severity of it. This would
`be particularly the case whe~e some of the various credit
`limits or use limits suggested above are used with the
`additional credit card number.
`Substantially the same
`criteria would apply to an additional multiple use credit
`card.
`
`invention solves the problem by
`the present
`Effectively,
`obtaining the functionality of a credit card while never
`in fact
`revealing the master credit card number as the
`master credit card number need never be given in a remote
`
`5
`
`10
`
`15
`
`20
`
`25
`
`30
`
`MasterCard, Exh. 1019, p. 20
`
`

`
`- 20 -
`
`the
`in certain ci.rcumstances
`transacti.on and furt.he'r,
`master credit card itself need never be given to a trader.
`
`is
`invention it
`the
`embodiment of
`in one
`Finally,
`envisaged that people who do not hold master credit cards
`could purchase disposable credit cards which would have a
`credit limit for the total purchases thereon equal to the
`amount
`for which the credit card was purchased.
`These
`could then be used for both card present and card remote
`trade,
`the only proviso being that if the credi