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Researchers Submit Patent Application, "Method and System for Conducting Secure Transactions with Credit Cards Using a Monitoring Device", for...

August 21, 2014

Researchers Submit Patent Application, "Method and System for Conducting Secure Transactions with Credit Cards Using a Monitoring Device", for Approval

By a News Reporter-Staff News Editor at Politics & Government Week -- From Washington, D.C., VerticalNews journalists report that a patent application by the inventor Narula, Mike (Sands Point, NY), filed on October 23, 2013, was made available online on August 7, 2014.

The patent's assignee is Reliance Communications, Llc.

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 the United States have been victims of some kind of fraud related to credit cards. While the banks, credit card companies, and police departments are aware of these activities, due to lack of man power and other factors, there is very little effort being made to prevent such activities. Typically, merchants may be reimbursed for loses due to credit card fraud by insurance companies, but are still negatively affected by such fraud because of the manpower required to handle credit card fraud, irate customers, loss to their reputation, etc.

"In addition, although the liability of customers is limited, at least in the United States by law, a customer who is victim of fraud is still inconvenienced by the paper work required to correct such matters, possible refusal of goods or services, especially if the customer is far from home, as well as injury to his/her reputation and possible negative effects on his credit scores.

"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 RFID. Preferably, the elements of the system include a biometric sensor for authenticating the customer associated with the payment member and the monitoring device. The communication device is used to exchange information during the transaction process with remote servers, such as a credit card server. The communication device can also suggest a fraud based on exchanged information either via a 3.sup.rd party application, break the communication link, or rewriting information on payment member via RFD. The system and method can be used to perform transactions in real stores or virtual stores over the Internet.

"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.


"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 October 23, 2013 and posted August 7, 2014. Patent URL:

Keywords for this news article include: Legal Issues, Reliance Communications Llc.

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Source: Politics & Government Week

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