ELECTRONIC SETTLEMENT METHOD USING CREDIT CARD WITH CARDHOLDER'S SUBSIDIARY CREDIT ACCOUNTS

Abstract: An electronic settlement method using a credit card with a plurality of cardholder's subsidiary credit accounts, comprising the steps of: a) allowing a cardholder to connect to a credit card company using a computer and partition credit provided from said card company to create the plurality of subsidiary credit accounts in conjunction with his original credit card number; b) allowing said cardholder performs credit line transaction using a desired one of said subsidiary credit accounts to purchase goods or service from an electronic commerce site via a communication network; and c) settling said desired subsidiary credit account for the payment for the purchasing goods or service through a verification process between said credit card company and a vendor managing said electronic commerce site, is provided for preventing the credit card from being illegally misused and enhancing the security of the credit card in use.

Description: ELECTRONIC SETTLEMENT METHOD USING CREDIT CARD WITH CARDHOLDER'S SUBSIDIARY CREDIT ACCOUNTS BACKGROUND OF THE INVENTION Field of the Invention The present invention relates in general to an electronic settlement method using a credit card with cardholder's subsidiary credit accounts, and more particularly to such a method in which a cardholder assigns to his credit card a plurality of subsidiary credit accounts with different conditions and amount limits for use according to his intention and selectively uses the assigned subsidiary credit accounts according to using purposes, thereby preventing the credit card from being illegally misused and enhancing the security of the credit card in use. Description of the Prior Art Recently, the use of credit cards is on a rapidly increasing trend throughout the world rather than general currency such as cash, and such credit cards may be, for example, A ex, Visa, Master, Diners, etc. Worldwide circulating credit cards usually involve a service based on a contract among three parties, or a credit card company 1, vendor 2 and cardholder 3, as shown in Fig. 1. This kind of contract has lasted for several decades without any significant change, because the cardholder 3 has a convenience such as pre-purchase and post-payment, the vendor 2 is assured to withdraw an amount of purchasing goods and the credit card company 1 has commission and interest incomes . Further, credit cards have mainly been used even in electronic commerce with the improvement of the electronic commerce based on a computer communication network. However, it is the reality that a variety of problems occur in the course of the electronic transaction of credit through electronic commerce. For example, there is no way for the cardholder 3 as a consumer to participate in managing his own credit according to his intention, and the cardholder 3 is merely allowed to use only a single credit card number and single credit account provided from the credit card company 1 within the range of credit limit to purchase desired goods through the electronic commerce. As a result, in the case where the credit card number is hacked and fraudulently misused, such a situation is difficult to be recognized by the cardholder 3 and thus inflicts tremendous economical and mental damage to the cardholder 3. In other words, in an electronic commerce system using a computer communication network where transactions are established only with credit card numbers, in the course of electronic transaction and settlement over Internet or telephone, credit card numbers of cardholders may be hacked and fraudulently misused by unauthorized persons such as hackers, thereby causing the cardholders uneasiness, resulting in relatively less utilization of the electronic commerce and an obstacle to the promotion of the electronic commerce. Further, a conventional verification process is performed only between a credit card company and a vendor. As a result, a cardholder' s credit card may be illegally misused up to the maximum limit of a granted amount with no recognition of a cardholder, resulting in damage to the cardholder . SUMMARY OF THE INVENTION Therefore, the present invention has been made in view of the above problems, and it is an object of the present invention to provide an electronic settlement method using a credit card with a plurality of cardholder's subsidiary credit accounts, in which a cardholder assigns the plurality of subsidiary credit accounts to his credit card in conjunction with his original credit card number and account, determines conditions for use associated with the assigned subsidiary credit accounts, respectively, and uses the subsidiary credit accounts for a variety of purchasing purposes such as electronic commerce under the determined conditions, thereby resolving uneasiness in the card use. It is another object of the present invention to provide an electronic settlement method using a credit card with a plurality of cardholder's subsidiary credit accounts, in which self-verification by a cardholder for payment can be made at each time of electronic commerce, thereby enhancing the security of payment by the credit card. In accordance with the present invention, the above and other objects can be accomplished by a provision of an electronic settlement method using a credit card with a plurality of cardholder's subsidiary credit accounts, comprising the first step of allowing a cardholder to connect to a credit card company using a computer and partition credit provided from the card company to create the plurality of subsidiary credit accounts in conjunction with his original credit card number; the second step of allowing the cardholder to perform credit line transaction using a desired one of the subsidiary credit accounts to purchase goods or service from an electronic commerce site via a communication network; and the third step of settling the desired subsidiary credit account for the payment for the purchasing goods or service through a verification process between the credit card company and a vendor managing the electronic commerce site. Preferably, the above first step includes the step of allowing the cardholder to assign using conditions to each of the subsidiary credit accounts, the using conditions including the number of using times, the limit of using amount and the terms of payment. Preferably, the above third step includes the step of, after the verification process is performed between the credit card company and the vendor, performing a self- verification operation where the credit card company requests the cardholder to confirm the contents used by him. BRIEF DESCRIPTION OF THE DRAWINGS The above and other objects, features and advantages of the present invention will be more clearly understood from the following detailed description taken in conjunction with the accompanying drawings, in which: Fig. 1 is a view illustrating a procedure of using a general credit card; Fig. 2 is a flowchart illustrating an electronic settlement method using a credit card with a plurality of cardholder' s subsidiary credit accounts in accordance with the present invention; Fig. 3 is a view showing the appearance of a credit card in accordance with the present invention; Fig. 4 is a view showing an architecture for creating a plurality of cardholder' s subsidiary credit accounts in accordance with the present invention; Fig. 5 is a flowchart illustrating the step of creating a plurality of cardholder' s subsidiary credit accounts in accordance with the present invention; Fig. 6 is a flowchart illustrating the operation of a cardholder' s subsidiary credit account assigned for a single payment in accordance with the present invention; Fig. 7 is a flowchart illustrating the operation of a cardholder' s subsidiary credit account with the maximum limit assigned by a cardholder in accordance with the present invention; Fig. 8 is a flowchart illustrating the operation of a cardholder' s subsidiary credit account with the issuance of a second credit card in accordance with the present invention; and Fig. 9 is a flowchart illustrating a self-verification process in accordance with the present invention. DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS A description will hereinafter be given of electronic commerce as an example with reference to Figs. 1 and 2, wherein Fig. 1 is a view illustrating a procedure of using a general credit card and Fig. 2 is a flowchart illustrating an electronic settlement method using a credit card with a plurality of cardholder' s subsidiary credit accounts in accordance with the present invention. In the present invention, cardholder' s subsidiary credit accounts can be assigned with various conditions for use according to using purposes. For example, a cardholder' s subsidiary credit account may be designated with an amount limit matched with a price of goods to be purchased, so that it can be used only once. Such a cardholder' s subsidiary credit account may be recharged to the amount limit so that it can be used several times . In this case, such a cardholder' s subsidiary credit account may be assigned with an associated credit number for use in electronic commerce or a new card with such a subsidiary credit account can be issued to a junior or senior to transfer that credit account thereto. Now, a procedure of creating and using cardholder' s subsidiary credit accounts in accordance with the present invention will be mentioned with reference to Fig . 2. It is common that electronic commerce occurs through personal computers in homes. A consumer, or cardholder, 3 is first issued with a credit card from a credit card company 1 at step SI and then connects and logs on to the card company 1 through an Internet homepage, online service, telephone, etc. using his own personal computer. After logging on through password and security processes, the cardholder 3 partitions credit provided from the credit card company 1 to create a plurality of subsidiary credit accounts in conjunction with his original credit card number at step S2. At this time, each of the cardholder's subsidiary credit accounts may be provided with a plurality of slave accounts . At the above step S2 of creating the subsidiary credit accounts by partitioning the original credit, the cardholder 3 can create the subsidiary credit accounts at a desired time using his own personal computer after being issued with the credit card from the credit card company 1. Alternatively, the cardholder 3 may create the subsidiary credit accounts at the initial step of being issued with the credit card from the credit card company 1. In the case where the cardholder' s subsidiary credit accounts are created at the initial credit card issuing step in this manner, as shown in Fig. 3, credit numbers assigned thereto are marked on a detachable label on the credit card in addition to that the original credit card number is embossed on the credit card. After creating the subsidiary credit accounts using the personal computer as mentioned above, the cardholder 3 assigns using conditions such as the number of using times, the limit of using amount and the terms of payment to each of the created subsidiary credit accounts at step S3. For example, in the case where the cardholder 3 intends to purchase specific goods through electronic commerce, he may limit the number of times to use a newly created specific subsidiary credit account to once and assign only an amount needed for the goods purchase to the specific subsidiary credit account. Further, the cardholder 3 may change the using conditions assigned to the specific subsidiary credit account if necessary. The cardholder 3 may preferably recharge the specific subsidiary credit account to reuse its number when it has been used to the assigned amount limit by the limited number of times. This has the effect of solving the trouble of repeating the creation of a new number. Thereafter, if the cardholder 3 moves to an electronic commerce site of a vendor 2 and selects desired goods with the specific subsidiary credit account at step S4, then the vendor 2 connects to the credit card company 1 to perform a verification process for that subsidiary credit account at step S5. At this time, if the amount limit assigned to the specific subsidiary credit account is less than a price of the goods to be purchased, then the credit card company 1 notifies the cardholder 3 of such a situation. Then, the credit card company 1 checks whether the cardholder 3 will modify the amount limit of the specific subsidiary credit account and allows the cardholder 3 to resume the electronic commerce with the specific subsidiary credit account in accordance with the checked result. While the verification process is performed at the above step S5, a self-verification step can be introduced where the credit card company 1 allows the cardholder 3 to check whether used items of the specific subsidiary credit account are correct. At this time, if any of the used items are not correct, the cardholder 3 requests the card company 1 to suspend the use and settlement of the specific subsidiary credit account. If the verification process is completed, then the credit card company 1 settles the specific subsidiary credit account with the vendor 2 and demands payment for that account from the cardholder 3 at step S6. In the above manner, the cardholder 3 can purchase desired goods with the subsidiary credit accounts through the electronic commerce without offering his original credit card number, and the subsidiary credit accounts cannot be misused by unauthorized persons due to their using conditions even if they are hacked. Even though the subsidiary credit accounts can be misused by unauthorized persons, the useable amount is limited to such a tolerable amount for the cardholder 3 as to minimize mental and material damage to the cardholder 3. Consequently, the cardholder 3 has nothing to worry about damage due to the hacking of his original credit card number, resulting in the promotion of the electronic commerce being activated. Although the cardholder' s subsidiary credit accounts have been disclosed to be applied to the electronic commerce as an example, they may be used in direct connection with vendors similarly to general cards . Further, the cardholder 3 may issue a new card with such a subsidiary credit account to a junior or senior. In this case, the junior or senior can use the issued card freely within the range of a given amount limit. Moreover, the present credit card may be used as a traffic card for urban buses or subway. In this case, because the present credit card is frequently used with worry to be lost, it is preferable to repeatedly charge and use the credit card with small amounts of credit. Further in this case, the original credit card number may not be marked on the present credit card so that it can be prevented from outflow. Consequently, the present invention can minimize the illegal misuse of credit cards on the electronic commerce and resolve the uneasiness of cardholders. Further, new subcards with the above-mentioned subsidiary credit accounts can be issued to serve as debit cards or electronic currency. Moreover, credit cards with the above-mentioned subsidiary credit accounts can be issued even to juniors or seniors. In this case, protectors can check the contents used by the juniors or seniors. Next, a more detailed description will be given of the above procedure of creating and using the cardholder' s subsidiary credit accounts in accordance with the present invention with reference to Figs. 4 to 9. Fig. 4 is a view showing an architecture for creating a plurality of cardholder' s subsidiary credit accounts (CSCAs) in accordance with the present invention. In this drawing, the reference numeral ® denotes a control credit account (CCA) which is offered from the credit card company 1 to the cardholder 3 and © denotes a plurality of CSCAs. The cardholder 3 transfers a portion of credit from the CCA within the range of credit limit to each of the CSCAs. The CCA and CSCAs are calculated in terms of amounts and the total credit of the CSCAs cannot exceed the credit limit of the CCA. Such credit line transaction of transferring portions of credit from the CCA respectively to the CSCAs can be made through Internet or telephone as indicated by the reference numeral (3). The cardholder 3 can order purchasing goods or service from the vendor 2 directly with the conventional credit card number as indicated by the reference numeral ® or with a CSCA number through the electronic commerce as indicated by the reference numeral (D. A verification process is performed through a payment gate/value added network as indicated by the reference numeral (6) after the credit line transaction is made as mentioned above. In the case of purchasing goods or service through an Internet electronic commerce site or other online networks, the cardholder 3 can use a CSCA number and verify settlement by himself through a self-verification process by Internet or telephone as indicated by the reference numeral ©. The reference numerals ®, @, ® and @ indicate examples of CSCAs creatable in the present invention. The reference numeral ® indicates a first CSCA Subl used for a single electronic payment, (D indicates a second CSCA Sub2 used for multiple payments with a limited amount, indicates a third CSCA Sub3 used for issuing a second credit card to a junior or senior and © indicates the third CSCA Sub3 used for electronic currency such as cybermoney. Fig. 5 is a flowchart illustrating the step of creating a plurality of cardholder' s subsidiary credit accounts (CSCAs) in accordance with the present invention. First, the cardholder 3 connects and logs on to the credit card company 1 through an Internet homepage, online service, telephone, etc. At this time, the logging-on operation is performed through password and security processes. Then, the cardholder 3 is newly issued with a CSCA from the credit card company 1 and performs user registration to the card company 1 when the issued CSCA is an initial one. Subsequently, the cardholder 3 determines whether a number of the initial CSCA was previously issued from the credit card company 1. If the initial CSCA number was not previously issued from the credit card company 1, then the cardholder 3 informs the card company 1 to issue the initial CSCA number. Noticeably, one or more CSCAs can be issued. The cardholder 3 can assign passwords respectively to numbers of the issued CSCAs, select a desired one of the CSCA numbers and log on with the selected CSCA number. After performing the user registration, the cardholder 3 first initiates a user log-on process and then a CSCA logon process. In the case where an issued CSCA number is an initial one, the cardholder 3 determines what type of a CSCA to be used and then uses the CSCA number as it is or discards it and creates a new CSCA number. For the creation of a new CSCA, the cardholder 3 can select a variety of options such as automatic payment and new creation of a second card. After creating a new CSCA, the cardholder 3 logs on with the created CSCA and creates additional CSCAs or transfers a portion of credit from the CCA to the new CSCA. Fig. 6 is a flowchart illustrating the operation of the first CSCA Subl assigned for a single payment in accordance with the present invention. The first CSCA Subl is an account to which a portion of credit is transferred from the CCA at each purchasing activity. Practically, the cardholder 3 transfers the same amount as a price of purchasing goods or service to the first CSCA Subl and no balance thus remains in the first CSCA Subl after each purchasing activity. As a result, no settlement can be made if hackers intrude and attempt to use the first CSCA Subl number. The cardholder 3 can confirm the previously used contents from a database associated with the first CSCA Subl and pay a proper amount on the first CSCA Subl at each purchasing activity. Alternatively, settlements can offer payments with time conditions . When vendors do not withdraw within a certain period of time-dates, the amount of credit allocated to the CSCA Sub 1 will be transferred to the CCA. Fig. 7 is a flowchart illustrating the operation of the second CSCA Sub2 with the maximum limit assigned by the cardholder 3 in accordance with the present invention. First, the cardholder 3 determines whether the maximum limit has been assigned to the second CSCA Sub 2. If the maximum limit has not been assigned to the second CSCA Sub 2, the cardholder 3 newly assigns the maximum limit thereto. In the case where the maximum limit has been assigned to the second CSCA Sub 2, the cardholder 3 retrieves the contents of transactions and balance from a database associated with the second CSCA Sub2. The cardholder 3 can designate a new limit if necessary. When a small amount of balance is present in the second CSCA Sub2, a portion of credit can be transferred from the CCA to the second CSCA Sub2 so that an additional amount can be recharged to the limit. The assigned maximum limit is set to an amount tolerable by the cardholder 3 even though the second CSCA Sub2 could possibly be misused. Fig. 8 is a flowchart illustrating the operation of the third CSCA Sub3 with the issuance of the second credit card in accordance with the present invention. In Fig. 8, the second credit card with the third CSCA Sub3 is shown to be issued to a junior or senior. This second credit card can be used in the same manner as conventional credit cards . A small amount of credit is transferred from the CCA to the third CSCA Sub3, and it is considered to be an amount tolerable by the cardholder 3 even though the third CSCA Sub3 could possibly be misused. The management of an account record and the recharge are made in the same manner as in Fig . 7. Fig. 9 is a flowchart illustrating the self- verification process in accordance with the present invention. The cardholder 3 can select a variety of options for payments using the CSCAs whenever the electronic commerce occurs. In the case of using the first CSCA Subl, automatic payment will be made when vendors request exact amounts . In the case of using the second CSCA Sub2, when the balance is less than the amounts requested for payment by vendors, settlements will be refused. In this situation, the cardholder 3 can inquire about the balance in the second CSCA Sub2 and transfer a portion of credit from the CCA to the second CSCA Sub2 to recharge it with a deficit. Further, payment can be made in a lump sum or divided on a monthly basis. As apparent from the above description, according to the present invention, a cardholder assigns a plurality of subsidiary credit accounts to his credit card in conjunction with his original credit card number and account and determines conditions for use associated with the assigned subsidiary credit accounts, respectively. Then, the cardholder uses the subsidiary credit accounts for a variety of purchasing purposes such as electronic commerce under the determined conditions, thereby resolving uneasiness in the card use. Further, self-verification by the cardholder for payment can be made at each time of electronic commerce, thereby enhancing the security of payment by the credit card. Therefore, the present invention can contribute to the greater development of the credit card industry. Although the preferred embodiments of the present invention have been disclosed for illustrative purposes, those skilled in the art will appreciate that various modifications, additions and substitutions are possible, without departing from the scope and spirit of the invention as disclosed in the accompanying claims.

Claims: WHAT IS CLAIMED IS: 1. An electronic settlement method using a credit card with a plurality of cardholder's subsidiary credit accounts, comprising the steps of: a) allowing a cardholder to connect to a credit card company using a computer and partition credit provided from said card company to create the plurality of subsidiary credit accounts in conjunction with his original credit card number; b) allowing said cardholder to perform credit line transaction using a desired one of said subsidiary credit accounts to purchase goods or service from an electronic commerce, site via a communication network; and c) settling said desired subsidiary credit account for the payment for the purchasing goods or service through a verification process between said credit card company and a vendor managing said electronic commerce site. 2. The electronic settlement method as set forth in Claim 1, wherein said step a) includes the step of allowing said cardholder to assign using conditions to each of said subsidiary credit accounts, said using conditions including the number of using times, the limit of using amount and the terms of payment. 3. The electronic settlement method as set forth in Claim 1, wherein said step c) includes the step of, after said verification process is performed between said credit card company and said vendor, performing a self-verification operation where said credit card company requests said cardholder to confirm the contents used by him. 1/9 FIGURES FIG. 1 2/9 3/9 FIG. 3 4/9 4 Cardholder 5/9 FIG, 6/9 6 7/9 FIG. 7 8/9 FIG. 8 9/9 FIG,

Applicants: BIOHERB CO LTD, BIOHERB CO. LTD.
Application year: 2001
Main classification: G06F17
IPC codes: G06Q20