Patent ID: 8676707

Claim:
A method of implementing a transaction system using controlled payment numbers (CPNs), the method comprising: assigning, by a central processing system of a CPN issuer comprising at least one processor, a unique CPN to a user, the CPN constituting a payment instrument for use in a financial transaction; receiving an allocated monetary amount from a funding entity associated with the unique CPN, the funding entity being an individual or organization other than the user; receiving, by the central processing system, limitations on use of the CPN established by the funding entity; associating the unique CPN with a master account number of the user in a database of the CPN issuer, and associating the limitations on use of the CPN established by the funding entity with the unique CPN assigned to the user; issuing the unique CPN to the user by the CPN issuer; receiving an authorization request from a merchant for a transaction conducted with the CPN; and facilitating the transaction so that it proceeds when the transaction complies with the limitations established by the funding entity.