Method for preventing unauthorized use of credit cards in remote payments and an optional supplemental-code card for use therein

The present invention generally relates to a method for preventing unauthorized use of credit cards in remote payments, and an optional supplemental-code card for use in said method. More specifically, according to the method of the present invention each remote payment is secured by a unique code (for only one time use) which is known only to the credit card owner and to the credit company. According to one preferred embodiment of the present invention, lists of the unique codes are supplied to the credit card owners through automatic-teller machines (hereinafter called also A.T.M). According to another preferred embodiment, the unique codes are supplied to the credit card owners printed on supplemental-code cards, which supply lists of codes confidentially and help the credit card owners to find out the valid code for each particular remote payment. According to another preferred embodiment, the unique codes are supplied to the credit card owners by any electronic media such as Internet, e-mail, etc. A method for preventing unauthorized use of credit cards in remote payments and a supplemental-code card for therein is disclosed. A unique code list is provided by the credit company to the credit card owner for use with the credit card. The codes are distributed in a variety of possible ways, including through A.T.M. machines, stores, e-mail or faxes. A copy of each code list is associated at the credit card company with the owner of the credit card. Each code is only for a single use. For every remote payment, the credit card owner transmits one of the codes to the creditor, along with conventional credit card data. The credit card company verifies the transmitted information and accepts or rejects the transaction. The codes may be provided on a supplemental-code card with some mechanism to ensure that each code is used only once.