Patent ID: 8751380

Claim:
A method for allowing a consumer to complete a payment transaction with a merchant at a merchant location, the method comprising: detecting a presence of the consumer at the merchant location by means of a mobile device associated with the consumer; verifying an identity of the consumer by a remote server using the mobile device; forming a virtual payment account number at the remote server, the virtual payment account number formed by merging a checkout code with a merchant code, wherein the checkout code is selected from a range of available numbers determined by the merchant code assigned to the merchant location, and wherein the checkout code sent to the consumer changes with each visit to the merchant location and is specific to the payment transaction, the virtual payment account number including a check value to verify that the virtual payment account number is a valid account number; sending the checkout code to the consumer using the mobile device; initiating the payment transaction at the request of the consumer; merging the checkout code with the merchant code, the merchant code provided to the merchant prior to the payment transaction, wherein the merged checkout code and merchant code form the virtual payment account number; processing the payment transaction using the virtual payment account number as a mechanism for payment using the merchant's existing payment processing system.