Methods and systems for making secure electronic payments

• US 20010039535A1
• Filed: 02/09/2001
• Published: 11/08/2001
• Est. Priority Date: 02/09/2000
• Status: Abandoned Application

• Current Assignee: Tolmi LLC
• Original Assignee: Tolmi LLC
• Inventors: Doherty, Charles, Tsiounis, Yiannis S.
• Application Number:
  US09/780,031
• Publication Number:
  US 20010039535A1
• Time in Patent Office: Days
• US Class Current: 705/71
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/06 Private payment circuits, e.g. involving electronic currency used among participants of a common payment scheme
• CPC Class Codes: G06Q 20/085 involving remote charge determination or related payment systems
• CPC Class Codes: G06Q 20/0855 involving a third party
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/18 involving self-service terminals [SST], vending machines, kiosks or multimedia terminals
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/202 Interconnection or interaction of plural electronic cash registers [ECR] or to host computer, e.g. network details, transfer of information from host to ECR or from ECR to ECR
• CPC Class Codes: G06Q 20/28 Pre-payment schemes, e.g. "pay before"
• CPC Class Codes: G06Q 20/29 characterised by micropayments
• CPC Class Codes: G06Q 20/363 with the personal data of a user
• CPC Class Codes: G06Q 20/3829 involving key management
• CPC Class Codes: G06Q 20/383 Anonymous user system
• CPC Class Codes: G06Q 20/4012 Verifying personal identification numbers [PIN]
• CPC Class Codes: G07F 7/0866 by active credit-cards adapted therefor G07F7/1008 takes precedence
• CPC Class Codes: H04L 2463/102 applying security measure for e-commerce
• CPC Class Codes: H04L 63/0407 wherein the identity of one or more communicating identities is hidden cryptographic mechanisms or cryptographic arrangements for anonymous credentials or for identity based cryptographic systems H04L9/00
• CPC Class Codes: H04L 63/0421 Anonymous communication, i.e. the party's identifiers are hidden from the other party or parties, e.g. using an anonymizer
• CPC Class Codes: H04L 63/0428 wherein the data content is protected, e.g. by encrypting or encapsulating the payload
• CPC Class Codes: H04L 63/0442 : wherein the sending and receiving network entities apply asymmetric encryption, i.e. different keys for encryption and decryption cryptographic mechanisms or cryptographic arrangements for public-key encryption H04L9/30
• CPC Class Codes: H04L 63/08 : for authentication of entities cryptographic mechanisms or cryptographic arrangements for entity authentication H04L9/32
• CPC Class Codes: H04L 63/126 : the source of the received data

Abstract

The present invention provides methods and systems for securing payment over a network from a customer to a merchant. A trusted party component receives an instruction from the customer to pay the merchant, the instruction including confidential payment information of the customer. The trusted party component creates payment authentication information based on the confidential payment information. Based on the payment authentication information, the trusted party component pays the merchant on behalf of the customer without the confidential payment information of the customer being disclosed to the merchant.

Claims

1. A method for securing payment over a network from a customer to a merchant, performed by a trusted party component, the method comprising:

receiving a request from the customer to pay the merchant, the request including a transaction information;

obtaining confidential payment information of the customer;

generating payment authentication information based on the confidential payment information; and

facilitating payment to the merchant without disclosing the confidential payment information of the customer to the merchant by transmitting instructions to pay the merchant on behalf of the customer and the payment authentication information to a payment component.

2. The method of

claim 1

, wherein the payment authentication information is generated based on the confidential payment information and the transaction information.

3. The method of

claim 1

, wherein the payment authentication information comprises a digital signature determined based on a secret key of the customer.

4. The method of

claim 1

, wherein the trusted party component is a computer program signed by a trusted third party, spawned by a first computer of the merchant, and executed on a second computer of the customer.

5. The method of

claim 1

, wherein the trusted party component is a computer program signed by a trusted third party, installed in a first computer of the customer, and invoked by a second computer of the merchant.

6. The method of

claim 1

, wherein the trusted party component executes on a computer of a trusted third party.

7. The method of

claim 1

, wherein the trusted party component is a computer program spawned by or downloaded from a first computer of a trusted third party and executed on a second computer of the customer.

8. The method of

claim 1

, further comprising:

verifying, by the payment component, the payment authentication information.

9. The method of

claim 8

, further comprising:

paying the merchant, if the payment authentication information is verified.

10. The method of

claim 9

, wherein the transaction information includes a transaction amount and paying comprises instructing at least one financial institution to pay the merchant at least part of the transaction price.

11. The method of

claim 1

, further comprising:

notifying the customer that the merchant has been paid.

12. The method of

claim 1

, further comprising:

providing the merchant with a transaction history report including the payment authentication information.

13. The method of

claim 1

, wherein the transaction information includes a transaction amount and the method further comprises:

requesting pre-authorization for the transaction amount from at least one financial institution; and

transmitting the pre-authorization to the payment component with the instructions to pay the merchant on behalf of the customer and the payment authentication information.

14. The method of

claim 1

, further comprising:

authenticating the confidential payment information as associated with the customer; and

storing the confidential payment information in a database accessible to the payment component.

15. The method of

claim 14

, the method further comprising:

obtaining the confidential payment information from the database; and

verifying, by the payment component, the payment authentication information and the confidential payment information.

16. The method of

claim 15

, further comprising:

paying the merchant, if the payment authentication information and the confidential payment are verified.

17. A method for securing payment from a customer to a merchant over a network, performed by a first trusted party component, the method comprising:

receiving a request from the customer to pay the merchant;

obtaining confidential payment information associated with the customer;

generating payment authentication information based on the confidential payment information;

transmitting the payment authentication information to the merchant;

receiving from the merchant the payment authentication information with a merchant signature;

verifying the merchant signature and the payment authentication information; and

paying the merchant on behalf of the customer.

18. The method of

claim 17

, wherein the payment authentication information is generated based on the confidential payment information and transaction information

19. The method of

claim 17

, wherein the payment authentication information comprises a digital signature of the confidential payment information and transaction information.

20. The method of

claim 19

, wherein the payment authentication information with merchant signature is received by a second trusted party component and the second trusted party component verifies the merchant signature and the payment authentication information.

21. The method of

claim 20

, further comprising:

paying the merchant, by the second trusted party component, on behalf of the customer.

22. The method of

claim 20

, further comprising:

generating, by the first trusted component, an encryption of the confidential payment information and transaction information;

transmitting the encryption to the second trusted party component, who uses the encryption to verify the merchant signature and the payment authentication information.

23. The method of

claim 22

, wherein transmitting the encryption to the second trusted party component is performed by saving the encryption in a database accessible to the first trusted party component and the second trusted party component.

24. A method for securing payment from a customer to a merchant over a network, performed by a trusted party component, the method comprising:

receiving an instruction from the customer to pay the merchant with a merchant signature;

obtaining confidential payment information of the customer;

verifying the merchant signature; and

,

paying the merchant based on the confidential payment information, if the merchant signature is verified.

25. The method of

claim 24

, further comprising:

generating payment authentication information based on the confidential payment information and transaction information; and

transmitting the payment authentication information with a third-party signature to the merchant.

26. The method of

claim 25

, wherein paying the merchant comprises transferring funds from an account related to the customer to an account related to the merchant.

27. A computer-readable medium containing instructions for causing a computer to perform a method for securing payment over a network from a customer to a merchant, the method comprising:

receiving a request from the customer to pay the merchant, the request including a transaction information;

obtaining confidential payment information of the customer;

generating payment authentication information based on the confidential payment information; and

facilitating payment to the merchant without disclosing the confidential payment information of the customer to the merchant by transmitting instructions to pay the merchant on behalf of the customer and the payment authentication information to a payment component.

28. The medium of

claim 27

, wherein the payment authentication information is generated based on the confidential payment information and the transaction information.

29. The medium of

claim 27

, wherein the payment authentication information comprises a digital signature determined based on a secret key of the customer.

30. The medium of

claim 27

, wherein the trusted party component is a computer program signed by a trusted third party, spawned by a first computer of the merchant, and executed on a second computer of the customer.

31. The medium of

claim 27

, wherein the trusted party component is a computer program signed by a trusted third party, installed in a first computer of the customer, and invoked by a second computer of the merchant.

32. The medium of

claim 27

, wherein the trusted party component executes on a computer of a trusted third party.

33. The medium of

claim 27

, wherein the trusted party component is a computer program spawned by or downloaded from a first computer of a trusted third party and executed on a second computer of the customer.

34. The medium of

claim 27

, further comprising:

verifying, by the payment component, the payment authentication information.

35. The medium of

claim 27

, further comprising:

paying the merchant, if the payment authentication information is verified.

36. The medium of

claim 27

, wherein the transaction information includes a transaction amount and paying comprises instructing at least one financial institution to pay the merchant at least part of the transaction price.

37. The medium of

claim 27

, further comprising:

notifying the customer that the merchant has been paid.

38. The medium of

claim 27

, further comprising:

providing the merchant with a transaction history report including the payment authentication information.

39. The medium of

claim 27

, wherein the transaction information includes a transaction amount and the method further comprises:

requesting pre-authorization for the transaction amount from at least one financial institution; and

transmitting the pre-authorization to the payment component with the instructions to pay the merchant on behalf of the customer and the payment authentication information.

40. The medium of

claim 27

, further comprising:

authenticating the confidential payment information as associated with the customer; and

storing the confidential payment information in a database accessible to the payment component.

41. The medium of

claim 40

, the method further comprising:

obtaining the confidential payment information from the database; and

verifying, by the payment component, the payment authentication information and the confidential payment information.

42. The medium of

claim 41

, further comprising:

paying the merchant, if the payment authentication information and the confidential payment are verified.

43. A computer-readable medium containing instructions for causing a computer to perform a method for securing payment over a network from a customer to a merchant, the method comprising:

receiving a request from the customer to pay the merchant;

obtaining confidential payment information associated with the customer;

generating payment authentication information based on the confidential payment information;

transmitting the payment authentication information to the merchant;

receiving from the merchant the payment authentication information with a merchant signature;

verifying the merchant signature and the payment authentication information; and

paying the merchant on behalf of the customer.

44. The medium of

claim 43

, wherein the payment authentication information is generated based on the confidential payment information and transaction information

45. The medium of

claim 43

, wherein the payment authentication information comprises a digital signature of the confidential payment information and transaction information.

46. The medium of

claim 43

, wherein the payment authentication information with merchant signature is received by a second trusted party component and the second trusted party component verifies the merchant signature and the payment authentication information.

47. The medium of

claim 46

, further comprising:

paying the merchant, by the second trusted party component, on behalf of the customer.

48. The medium of

claim 46

, the method further comprising:

generating, by the first trusted component, an encryption of the confidential payment information and transaction information;

transmitting the encryption to the second trusted party component, who uses the encryption to verify the merchant signature and the payment authentication information.

49. The medium of

claim 47

, wherein transmitting the encryption to the second trusted party component is performed by saving the encryption in a database accessible to the first trusted party component and the second trusted party component.

50. A computer-readable medium containing instructions for causing a computer to perform a method for securing payment over a network from a customer to a merchant, the method comprising:

receiving an instruction from the customer to pay the merchant with a merchant signature;

obtaining confidential payment information of the customer;

verifying the merchant signature; and

,

paying the merchant based on the confidential payment information, if the merchant signature is verified.

51. The medium of

claim 50

, the method further comprising:

generating payment authentication information based on the confidential payment information and transaction information; and

transmitting the payment authentication information with a third-party signature to the merchant.

52. The medium of

claim 50

, wherein paying the merchant comprises transferring funds from an account related to the customer to an account related to the merchant.

53. A apparatus for securing payment over a network from a customer to a merchant, the apparatus comprising:

a processing unit;

an input/output device coupled to the processing unit;

a storage device in communication with the processing unit, the storage device including,

program code for receiving an instruction from the customer to pay the merchant, the instruction including confidential payment information of the customer;

program code for generating payment authentication information based on the confidential payment information; and

program code for paying the merchant on behalf of the customer according to the payment authentication information, wherein the confidential payment information of the customer is not disclosed to the merchant.

54. The apparatus of

claim 53

, wherein the payment authentication information comprises a digital signature determined based on a secret key of the customer.

55. The apparatus of

claim 53

, the storage device further comprising:

stored confidential payment information.

56. A system comprising:

a trusted component capable of

receiving an instruction from a customer to pay a merchant;

obtaining confidential payment information associated with the customer,

generating payment authentication information based on the confidential payment information, and

transmitting the payment authentication information to a payment processor; and

the payment processor capable of

verifying the payment authentication information and

paying the merchant on behalf of the customer according to the payment authentication information, wherein the confidential payment information of the customer is not disclosed to the merchant.

57. The system of

claim 56

, wherein the payment authentication information comprises a digital signature determined based on a secret key of the customer.

58. The system of

claim 56

, further comprising:

a shared database operatively connected to the trusted component and the payment processor, and wherein the verifying is performed based on a secret key of the customer stored in the shared database.

59. The system of

claim 56

, further comprising:

a payment component operatively connected to the trusted component and capable of preauthorizing the confidential payment information.

60. The system of

claim 59

, wherein the trusted component transmits the payment authentication information to the payment processor with a preauthorization from the payment component.

61. The system of

claim 60

, wherein the payment component is operatively connected to the trusted component and the transaction processor and the transaction processor is further capable of authorizing payment to the merchant based on a preauthorization from the payment component.