Importance

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Abstract

A system and device is described, that allows a user to use the existing credit card processing infrastructure to make a secure stored value transaction over a network. A data storage media read/write device is used to deduct stored value from a user's data storage media and optionally transfer said stored value over a network to a financial institution, a service provider or a transaction processor. After the deduction of stored value has been completed a limited-use credit card number is provided to the user for use over a network such as the Internet. The limited-use credit card number is complying with the industry standards for credit card numbers and it has a limited life span and/or a limited spending limit corresponding to the amount of the stored value transaction optionally less a transaction fee. Because the limited-use credit card number is only good for the purchase that it was intended for when the user requested to make a secure payment, the risk of credit card fraud is greatly reduced. The financial institution can optionally allow the limited-use credit card number to be used for more than one purchase over a longer period of time than a few minutes. The present invention, while not limited to electronic commerce transactions using a stored value card, is especially suited for smart card payments over communication networks, without requiring payees to invest in smart card processing infrastructure or signing up for smart card payment processing services.

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First Claim