Disposable payment account

A method of processing a transaction between a consumer and a merchant with a disposable financial account, the method comprising:

• maintaining the disposable financial account at a financial institution on behalf of the consumer;
• funding the disposable financial account with funds identified by the consumer;
• receiving an authorization request for the transaction from the merchant over a financial processing network, the authorization request including information identifying the disposable financial account and a transaction amount;
• verifying that the transaction amount is no greater than a balance of the disposable financial account;
• returning an approval for the authorization request to the merchant over the financial processing network;
• transferring funds from the disposable financial account corresponding to the transaction amount to control of the merchant;
• and
• automatically closing the disposable financial account after approval of a predetermined number of transactions.

A method of processing a transaction between a consumer and a merchant with a disposable financial account, the method comprising:

• receiving a request from the consumer through an Internet interface at the financial institution to create the disposable financial account, the request including an identification of a second financial account and a funding amount;
• automatically opening the disposable financial account at the financial institution upon receipt of the request;
• transferring the finding amount from the second financial account into the disposable financial account;
• providing the consumer with an account number identifying the disposable financial account;
• establishing a personal identification number (“PIN”) for the consumer associated with the disposable financial account;
• receiving an authorization request for the transaction from the merchant over a financial processing network, the authorization request including the account number, the PIN, and a transaction amount;
• verifying that the transaction amount is no greater than the funding amount;
• returning an approval for the authorization request to the merchant over the financial processing network;
• transferring funds from the disposable financial account corresponding to the transaction amount to control of the merchant;
• and
• automatically closing the disposable financial account after returning the approval for the authorization request, whereby the disposable financial account can be used only exactly once in support of a transaction.