METHOD AND SYSTEM FOR PREVENTING CREDIT CARD FRAUD

摘要

The present invention provides a method and system for the prevention of credit card fraud utilizing a communication network A credit cardholder, a Unique Identification Device (UID), a merchant, a credit card issuer and the generation of an approval code constitute the main components of the method and system. The method and system can be applied to both traditional credit card transactions and "card not present" credit card transactions. The invention does not require changes to be made to current authorization systems. It compliments current systems by providing a private channel of communication between the credit card issuer and the cardholder that is independent of the usual channel used to conduct a transaction.