A system and method to improve on the security of credit cards when money
needs to be charged or transferred by assigning a different charge number
to every transaction. A charge number is a combination of the card number
and a random number that is generated through a user initiated
preauthorization phase. A temporary preauthorization number is issued for
a maximum amount to be charged to a specific merchant. Preauthorization
output is passed on to the merchant for verification and deposit
purposes. A specially designed cellular phone or PDA can be used in lieu
of a charge card, in which case the generated preauthorization number can
either be stored in a removable memory, or be directly sent to the
merchant's charge machine. The card/charge-device does not contain all of
the information required for a successful transaction, therefore security
is maintained despite its loss or theft of numbers.