A system and method for securing a recurrent billing transaction using a
marked proxy code is disclosed. The marked proxy code includes a merchant
system marker which is assigned to the merchant and a proxy code assigned
to a consumer. An account issuer assigns the proxy code to the consumer
and assigns the merchant system marker to one or more merchants. During
system operation, a merchant provides an account issuer with a request to
establish a recurrent billing account and the account issuer returns to
the merchant a marked proxy code including a merchant system marker and
the proxy code provided by the merchant. If a merchant requests
satisfaction of a transaction, the merchant transaction request includes
the marked proxy account number. The account issuer receives the marked
account number and validates the merchant system marker and the proxy
code prior to validating the merchant's transaction request.