Systems and methods for credit card protection

A method for validating a purchase transaction comprising the steps of:

• a) using an electronic device to institute a purchase transaction transferring funds from an issuing bank account to an acquiring bank account, said electronic device having a unique hardware identification number associated therewith, and said issuing account having a unique account identification number;
• b) electronically transmitting said hardware identification number to said merchant computer;
• c) electronically transmitting said hardware identification number and said account identification number from a merchant computer to a verification computer, said verification computer having a database with a plurality of tables in a memory associated therewith;
• d) setting a first verification data to one of the group consisting of (i) a first state if at least one table entry in said database comprises each said hardware identification number and said account identification number, (ii) a second state if at least one table entry in said database comprises said hardware identification number and not said account identification number, and (iii) a third state if at least one table entry in said database comprises said account identification number and not said hardware identification number;
• and
• e) electronically transmitting said first verification data from said verification computer to said merchant computer.