Researchers Submit Patent Application, "Method and System for Conducting Secure Transactions with Credit Cards Using a Monitoring Device", for Approval
The patent's assignee is
News editors obtained the following quote from the background information supplied by the inventors: "A. Field of Invention
"This invention pertains to a method and system for performing secure transactions either in a regular or virtual store. Before a transaction for a product or service is approved, a check is performed to determine if a payment instrument (that could be a credit card or a portable device) is in close physical proximity to a monitoring device and otherwise the transaction is not permitted.
"B. Description of the Prior Art
"The present invention involves a method and system for conducting transactions, e.g., buying products or services, with a credit card, mobile device, or other similar means. The term 'credit card' is used generically to cover various different cards that can be used to make payments, including cash cards, debit cards, and so on.
"Credit cards have become so convenient, widely available and accepted that many people use them almost exclusively to pay for goods and services. Of course, online stores can only accept some kind of credit card as a payment mean.
"Unfortunately, fraudulent transactions involving credit cards have also become very common. It has been estimated in recent years that 10% if the customers in
"In addition, although the liability of customers is limited, at least in
"Thus, there is a need for a system and device to eliminate or at least reduce the incidence of fraudulent credit card activities. Such a system would not only be helpful to customers but also to the merchants providing goods or services to the customers as well as the banks and credit card companies that issue the credit cards to the customers."
As a supplement to the background information on this patent application, VerticalNews correspondents also obtained the inventor's summary information for this patent application: "Briefly, the present system in one embodiment includes a payment member such as a payment card for paying for a transaction, a monitoring device and a communication device. Before transactions are completed, the monitoring device checks if the payment member and communication device are physical close to the monitoring device or not. Preferably this is accomplished by using a limited communication link using for example but not limited to, a Bluetooth communication protocol (including BT 4.0, Bluetooth Low Energy, iBeacon etc.), NFC, or
"Once a transaction is authorized, it may be completed using conventional techniques, e.g., by scanning the payment member, or using an NFC protocol.
"In an alternate embodiments of the invention, either the payment member or the monitoring device may be incorporated into the communication device.
BRIEF DESCRIPTION OF THE DRAWINGS
"FIG. 1 shows schematically a system for effectuating transactions in accordance with this invention;
"FIG. 2 shows a somewhat diagrammatic illustration of a network in which the system of FIG. 1 is used by a customer to obtain goods or services from participating real or virtual stores;
"FIGS. 3A and 3B show a flow chart illustrating the operation of the system of FIGS. 1 and 2;
"FIG. 4 shows an alternate embodiment in which the communication device includes an NFC module;
"FIG. 5 shows an alternate embodiment in which the payment member, e.g., the credit card is omitted and the communication device performs the functions of the payment device;
"FIG. 6 shows another alternate embodiment in which the monitoring device is incorporated into the communication device; and
"FIG. 7 shows another alternate embodiment in which the monitoring device acts as the payment member, the credit card being omitted."
For additional information on this patent application, see: Narula, Mike. Method and System for Conducting Secure Transactions with Credit Cards Using a Monitoring Device. Filed
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