Method and apparatus for ordering goods, services and content over an internetwork using a virtual payment account

• US 20050261984A1
• Filed: 07/14/2005
• Published: 11/24/2005
• Est. Priority Date: 06/18/1999
• Status: Active Grant

• Current Assignee: Stripe, Inc.
• Original Assignee: eCharge Corporation
• Inventors: Griffiths, David, Hutchison, Robin B., Begg, Iain M., Llewellyn, Robert J., Viljoen, Andre F., Birch, David
• Granted Patent: US 7,761,385 B2
• Time in Patent Office: Days
• US Class Current: 705/26
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/027 involving a payment switch or gateway
• CPC Class Codes: G06Q 20/085 involving remote charge determination or related payment systems
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• CPC Class Codes: G06Q 20/367 involving electronic purses or money safes
• CPC Class Codes: G06Q 20/3674 involving authentication
• CPC Class Codes: G06Q 20/3676 Balancing accounts
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 20/3821 Electronic credentials
• CPC Class Codes: G06Q 20/3829 involving key management
• CPC Class Codes: G06Q 20/385 using an alias or single-use codes
• 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 20/403 Solvency checks
• CPC Class Codes: G06Q 30/00 Commerce
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 30/0603 : Catalogue ordering
• CPC Class Codes: G06Q 30/0613 : Third-party assisted
• CPC Class Codes: G06Q 30/0617 : Representative agent
• CPC Class Codes: G06Q 40/03 : Credit; Loans; Processing thereof

Abstract

A virtual payment system for ordering and paying for goods, services and content over an internetwork is disclosed. The virtual payment system comprises a commerce gateway component (52) and a credit processing server component (53). The virtual payment system is a secure, closed system comprising registered sellers and buyers. A buyer becomes a registered participant by applying for a virtual payment account. Likewise, a seller becomes registered by applying for a seller account. A buyer can instantly open an account on-line. That is, the credit processing component (53) immediately evaluates the buyer'"'"'s virtual payment card application and assigns a credit limit to the account. Once an account is established, a digital certificate is stored on the registered participant'"'"'s computer. The buyer can then order a product, i.e., goods, services or content from a seller and charge it to the virtual payment account. When the product is shipped, the seller notifies the commerce gateway component (52), which in turn notifies the credit processing server that applies the charges to the buyer'"'"'s virtual payment account. The buyer can settle the charges using a prepaid account, a credit account, or by using reward points earned through use of the virtual payment card. A buyer may create sub-accounts

Claims

1. A computer-readable medium having an executable component for purchasing a product from a seller computer using a virtual payment account, wherein the executable component purchases a product by:

receiving a request from a buyer computer to purchase said product from said seller computer using said virtual payment account;

in response to said purchase request, determining whether said buyer computer is associated with said virtual payment account;

in response to determining that said buyer computer is associated with said virtual payment account, applying a cost of said product to said virtual payment account; and

providing said product to a buyer associated with said buyer computer.

2. The computer-readable medium of claim 1, wherein the executable component purchases a product by further determining whether said buyer computer is associated with said virtual payment account comprises:

retrieving a digital certificate from said secure token;

transmitting an authentication request including said digital certificate from said buyer computer to a commerce gateway;

determining at said commerce gateway whether said virtual payment account is valid;

determining at said commerce gateway whether said virtual payment account is associated with said buyer computer; and

transmitting an account identification container to said buyer computer in response to determining that said buyer computer is associated with a valid virtual payment account.

3. The computer-readable medium of claim 1, wherein the executable component purchases a product by further determining whether said buyer computer is associated with said virtual payment account comprises:

transmitting an alternate authentication request from said buyer computer to a commerce gateway;

sending an alternate authentication message from said commerce gateway to a buyer authentication device;

retrieving said alternate authentication message;

verifying said alternate authentication message with said commerce gateway; and

in response to verifying said alternate authentication message, determining that said buyer computer is associated with said virtual payment account.

4. The computer-readable medium of claim 1, wherein the executable component purchases a product by further applying a cost of said product to said virtual payment account comprises:

receiving said account identification container at said seller computer;

transmitting said account identification container and said cost of said product from said seller computer to said commerce gateway;

determining whether said virtual payment account may be charged for said cost of said product; and

in response to determining that said virtual payment account may be charged for said cost of said product, transmitting a valid transaction authorization from said commerce gateway to said seller computer.

5. A computer-readable medium having an executable component for purchasing a product from a seller computer using a virtual payment account associated with a buyer computer, wherein the executable component purchases a product by:

receiving a request from said buyer computer to purchase said product, said purchase request identifying said virtual payment account as a payment source for said product;

in response to said purchase request, transmitting an authentication request from said buyer computer to a commerce gateway;

determining at said commerce gateway whether said virtual payment account is associated with said buyer computer;

transmitting an account identification container to said buyer computer in response to determining that said buyer computer is associated with a valid virtual payment account;

transmitting said purchase request including said account identification container from said buyer computer to said seller computer;

transmitting said purchase request from said seller computer to said commerce gateway;

receiving said purchase request at said commerce gateway and determining whether said virtual payment account may be used to pay for said product;

in response to determining that said virtual payment account may be used to pay for said product, transmitting a valid transaction authorization from said commerce gateway to said seller computer and said buyer computer;

charging said virtual payment account for a cost associated with said product; and

providing said product to a buyer associated with said buyer computer.

6. A computer-readable medium having an executable component for creating a virtual payment account for a buyer which may be used to pay for products ordered over an internetwork, wherein the executable component creates a virtual payment account by:

receiving application data from said buyer;

determining a credit score for said buyer based upon said application data;

determining whether said credit score exceeds a threshold credit score;

in response to determining that said credit score exceeds said threshold credit score, establishing a virtual payment account associated with said buyer at a commerce gateway; and

installing a digital certificate on a buyer computer associated with said buyer that uniquely identifies said buyer as the registered holder of said virtual payment account.

7. The computer-readable medium of claim 6, wherein the executable component creates a virtual payment account by further receiving application data from said buyer and in response, determining an identify score for said buyer based upon said application data;

determining whether said identify score exceeds a threshold identity score; and

in response to determining that said identity score exceeds said threshold identity score, then proceeding to determining a credit score.

8. A computer-readable medium having an executable component for settling at least one virtual payment account transaction, wherein the executable component settles at least one virtual payment account by:

receiving at least one settlement transaction request from a seller computer;

determining that said at least one settlement transaction request is permissible;

in response to determining that said at least one settlement transaction request is permissible, processing said at least one settlement transaction request; and

in response to processing said at least one transaction request, adjust a seller account associated with said seller computer.