System and method for authorizing financial transactions with online merchants

• US 10,008,067 B2
• Filed: 06/12/2009
• Issued: 06/26/2018
• Est. Priority Date: 06/16/2008
• Status: Active Grant

• Current Assignee: Visa USA, Inc. (Visa, Inc.)
• Original Assignee: Visa USA, Inc. (Visa, Inc.)
• Inventors: Manessis, Thomas
• Primary Examiner(s): Shaikh, Mohammad Z
• Application Number:
  US12/483,419
• Publication Number:
  US 20090313168A1
• Time in Patent Office: 3,301 Days
• Field of Search: 705 35, 705 39, 705 40, 705 51, 705 52, 705 44, 705 37, 713172, 715224
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/341 Active cards, i.e. cards including their own processing means, e.g. including an IC or chip
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 20/4093 Monitoring of device authentication
• CPC Class Codes: G06Q 20/40975 using encryption therefor
• CPC Class Codes: G07F 7/1008 Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system
• CPC Class Codes: G07F 7/122 Online card verification

Abstract

A system for authorizing a financial transaction of a financial presentation device such as a credit or debit card being presented from a customer to an online merchant. The system includes a peripheral device having a processor configured to generate a dynamic verification value for the card which changes for each financial transaction, and to transmit the dynamic verification value to a user computer via an I/O interface during an online transaction. The system also includes an authentication computer having a memory for storing information used to generate a comparison verification value, a communication device for receiving the dynamic verification value originating from the peripheral device, a processor and an authentication module executable by the processor adapted to generate the comparison verification value using information stored in memory. The authentication computer determines whether to authorize the financial transaction based on whether the comparison verification value matches the received dynamic verification value.

Claims

1. A system comprising:

a financial presentation device associated with a payment account;

a user computer distinct from the financial presentation device; and

a peripheral device communicatively coupled with the user computer, the peripheral device being distinct from both the user computer and the financial presentation device as well as uniquely corresponding to the financial presentation device, the peripheral device comprising a first memory configured to store information used to generate a dynamic verification value for the financial presentation device, an I/O interface communicatively coupled with the user computer, and a first processor configured at least to;

maintain, by the peripheral device communicatively coupled with a user computer, variable data that changes for each of a plurality of financial transactions;

receive, by the peripheral device, from the user computer, a request to provide the dynamic verification value, the request including data from a financial presentation device associated with a payment account;

responsive to receiving the request to provide the dynamic verification value, generate, by the peripheral device, the dynamic verification value uniquely for a financial transaction conducted with the uniquely corresponding financial presentation device using the information stored in the first memory, the dynamic verification value being based at least in part on the data from the financial presentation device and the variable data that changes for each of the plurality of financial transactions, the variable data that changes for each of the plurality of financial transactions being a time-based number;

responsive to generating the dynamic verification value, updating the variable data such that the variable data changes for each of the plurality of financial transactions; and

responsive to generating the dynamic verification value, providing, by the peripheral device, the generated dynamic value to the user computer thereby at least in part causing transmission, by the peripheral device, the generated dynamic verification value to the user computer via the I/O interface,

wherein, as part of the financial transaction, the user computer is further configured to transmit the dynamic verification value to an authentication computer, the authentication computer comprising a communication device configured to receive the dynamic verification value generated by the peripheral device, a second memory for storing information used to generate a comparison verification value, a second processor coupled to the second memory and the communication device, and an authentication module executable with the second processor and configured to generate, in response to receiving the dynamic verification value from the user computer, the comparison verification value using the information stored in the second memory and to determine whether to authorize the financial transaction of the financial presentation device based at least in part on a comparison between the comparison verification value and the received dynamic verification value.

2. The system of claim 1, wherein the first memory includes a table of preset dynamic verification values.

3. The system of claim 2, wherein the first processor is further configured to sequentially retrieve a preset value in the table for use as the dynamic verification value.

4. The system of claim 1, wherein the first memory includes a transaction counter that increments or decrements each time a dynamic verification value is generated, and the first processor generates the dynamic verification value based on the transaction counter.

5. The system of claim 1, wherein the peripheral device is USB device and is connectable to the user computer through a USB port.

6. The system of claim 5, wherein the first memory includes a table of preset dynamic verification values.

7. The system of claim 6, wherein the first processor is further configured to sequentially retrieve a preset value in the table for use as the dynamic verification value.

8. The system of claim 7, wherein the user computer is further configured to automatically fill in a checkout page on a display of the user computer with the dynamic verification value received in response to the request to provide the dynamic verification value.

9. The system of claim 1, wherein the peripheral device is configured to include dynamic verification data that uniquely corresponds to the distinct financial presentation device.

10. The system of claim 1, wherein the peripheral device provides the dynamic verification value for the financial transaction independent of user prompting.

11. The system of claim 10, wherein the payment form comprises computer-executable instructions that, when executed by the user computer, causes the user computer to request the dynamic verification value from the peripheral device and enter the provided dynamic verification value for the financial transaction in a corresponding field of a payment form.

12. A method comprising:

maintaining, by a peripheral device communicatively coupled with a user computer, variable data that changes for each of a plurality of financial transactions;

receiving, by the peripheral device coupled with a user computer, a request from the user computer to provide a dynamic verification value, the request including data from a financial presentation device associated with a payment account, the peripheral device being distinct from both the user computer and the financial presentation device as well as uniquely corresponding to the financial presentation device;

responsive to receiving the request, generating, by the peripheral device coupled to the user computer, a dynamic verification value uniquely for a financial transaction conducted with the uniquely corresponding financial presentation device, the dynamic verification value being based at least in part on the data from the financial presentation device and the variable data that changes for each of the plurality of financial transactions, the variable data that changes for each of the plurality of financial transactions being a time-based number;

responsive to generating the dynamic verification value, updating the variable data such that the variable data changes for each of the plurality of financial transactions; and

responsive to generating the dynamic verification value, providing, by the peripheral device, the generated dynamic value to the user computer thereby at least in part causing transmission, by the user computer, as part of the financial transaction, the generated dynamic verification value to an authentication computer,

wherein the authentication computer verifies the dynamic verification value by comparing the dynamic verification value to a comparison authentication value that is generated in response to receiving the generated dynamic verification value from the user computer and determines whether to authorize the financial transaction of the financial presentation device based at least in part on the comparison between the comparison authentication value and the dynamic verification value.

13. The method of claim 12, wherein the step of generating the dynamic verification value includes:

generating the dynamic verification value using a table of preset dynamic verification values stored in the peripheral device.

14. The method of claim 13, wherein the step of generating the dynamic verification value using a table of preset dynamic verification values includes extracting, in sequence, a preset value in the stored table.

15. The method of claim 14, wherein the step of generating the dynamic verification value includes generating the dynamic verification value according to a transaction counter stored in a memory of the peripheral device which increments or decrements each time a dynamic verification value is generated.

16. The method of claim 15, wherein the peripheral device is a USB device connectable to the user computer through a USB port;

and the step of generating a dynamic verification value includes generating the dynamic verification value using the USB device.

17. The method of claim 12, wherein the time-based number is based at least in part on a time window with respect to the financial transaction.

18. One or more non-transitory computer-readable media collectively storing thereon computer-executable instructions that, when executed with one or more processors, at least:

maintain, by a peripheral device communicatively coupled with a user computer, variable data that changes for each of a plurality of financial transactions;

receive, by the peripheral device coupled with a user computer, a request from the user computer to provide a dynamic verification value, the request including data from a financial presentation device associated with a payment account, the peripheral device being distinct from both the user computer and the financial presentation device as well as uniquely corresponding to the financial presentation device;

responsive to receiving the request, generate, by the peripheral device coupled to the user computer, a dynamic verification value uniquely for a financial transaction conducted with the uniquely corresponding financial presentation device, the dynamic verification value being based at least in part on the data from the financial presentation device and the variable data that changes for each of the plurality of financial transactions, the variable data that changes for each of the plurality of financial transactions being a time-based number;

responsive to generating the dynamic verification value, update the variable data such that the variable data changes for each of the plurality of financial transactions; and

responsive to generating the dynamic verification value, provide, by the peripheral device, the generated dynamic value to the user computer thereby at least in part causing transmission, by the user computer, as part of the financial transaction, the generated dynamic verification value to an authentication computer,

wherein the authentication computer verifies the dynamic verification value by comparing the dynamic verification value to a comparison authentication value that is generated in response to receiving the generated dynamic verification value from the user computer and determines whether to authorize the financial transaction of the financial presentation device based at least in part on the comparison between the comparison authentication value and the dynamic verification value.