Electronic credit card with fraud protection
View Patent ↗A method for verifying permission to use a payment system such as an electronic credit card, using a hand held communication device such as a smart phone, where the customer presents the communication device to a merchant who extracts account information from the hand held device, and the hand held device generates a transaction code that is shared with the merchant and sent by both to a financial institution. The financial institution sends a new random code to the user and the merchant, which can be compared to verify the user's account and the financial institution's approval of the transaction.
1. A method for conducting a transaction between a customer and a merchant using a hand held communication device, comprising:
selecting an account on the hand held communication device by a user;
opening an application on the hand held device corresponding to the account;
generating a first random transaction code using the hand held device;
providing the first random transaction code to the merchant;
sending the first random transaction code to a financial institution associated with the account, using the smartphone and having the merchant send a second random transaction code to the financial institution;
having the financial institution match the first and second random transaction codes to link the merchant and the user, and assess a requested transaction for reliability;
upon approval, having the financial institution send the user and the merchant a new random code to the user's smartphone and a merchant's display;
comparing the new random code sent to the merchant with the new random code sent to the user, to verify the account;
scanning a portion of the user and sending the scan to the financial institution to verify identify of the user;
upon verifying the user's identification, sending a verification notice to the merchant; and
completing the transaction after the merchant receives the verification notice.
2. The method for conducting a transaction of claim 1 wherein the portion of the user scanned is a fingerprint.
3. The method for conducting a transaction of claim 1 wherein the hand held communication device is a smartphone.
4. The method for conducting a transaction of claim 1 wherein merchant and the user are face to face.
5. The method for conducting a transaction of claim 1 wherein merchant and the user are remotely located with respect to each other.
6. The method for conducting a transaction of claim 1 wherein the verification notice includes GPS data of the smartphone.
7. The method for conducting a transaction of claim 1 wherein verification notice includes information that can be found on the user's smartphone in connection with the account.