System and method for conducting secure commercial order transactions

• US 20060106699A1
• Filed: 11/17/2004
• Published: 05/18/2006
• Est. Priority Date: 11/17/2004
• Status: Abandoned Application

• Current Assignee: BYZ TEK Incorporated
• Original Assignee: BYZ TEK Incorporated
• Inventors: Likterev, Michael, Hitalenko, Boris
• Application Number:
  US10/992,532
• Publication Number:
  US 20060106699A1
• Time in Patent Office: Days
• US Class Current: 705/35
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes

Abstract

The inventive system and method enable secure remote commercial order transactions between customers and merchants. The inventive system and method ensure that customer entire confidential financial data (CFD) is never transmitted to the merchant by keeping that CFD proprietary to the customer'"'"'s exiting financial service provider (FSP) with which the customer has established a financial account, and from which the merchant is authorized to receive payments. When an order is placed, the customer provides to the merchant a partial CFD (PCFD) sufficient, along with additional data, to identify the FSP to the merchant, and to identify the customer to the FSP. The merchant then provides the PCFD, along with at least partial order data, to the FSP, and order confirmation data (OCD) to the customer. Various embodiments of a novel order verification process are also provided that enable authorization, by the customer, of the order through contact between the customer and the FSP. In this manner, the complete CFD is kept absolutely secure as it never leaves the possession of the customer and the FSP. Optionally, the FSP is given the opportunity to offer additional services and/or products to the customer during order authentication, that are related or unrelated to the order. Advantageously, the inventive system and method function equally well for interactive electronic (e.g., online) orders, telephone orders, mobile commerce orders, facsimile orders, mail-order orders, and even in-person orders.

Claims

1. A data processing system for enabling a commercial order transaction between a customer and a merchant, the customer having a customer financial account with a financial service provider, the customer financial account having access to predefined funds, and having predefined customer confidential financial data, necessary to make payments therethrough, associated therewith, and the merchant having a predefined merchant financial account, and being authorized to receive payments from the financial service provider thereto;

comprising;

first communication means for enabling the customer to communicate purchase data to the merchant, said purchase data being representative of at least;

a desired order, customer data, and partial confidential financial data, representative of a portion of the predefined customer confidential financial data, that is sufficient, in conjunction with said customer data, to identify the customer to the financial service provider;

second communication means for providing, by the merchant to the financial service provider, order data, representative of;

said purchase data, merchant data sufficient to identify the merchant and the predefined merchant financial account to the financial service provider, and charge data representative of a payment required by the merchant for said merchant order;

third communication means for establishing direct communication between the customer and the financial service provider;

authentication means for verifying, by the financial service provider during said direct communication, that the customer actually placed said desired order with the merchant; and

first control means for, when said desired order placement by the customer is verified by said authentication means, transmitting said required payment for said desired order through the customer financial account to the predefined merchant financial account, thereby enabling the merchant to fulfill said desired order.

2. The data processing system of claim 1, wherein said first communication means comprise at least one of:

a customer interactive electronic system, a merchant interactive electronic system, and a communication link therebetween, operable in conjunction with one another, to enable the customer to electronically communicate said purchase data to the merchant.

3. The data processing system of claim 1, wherein said first communication means comprise at least one of:

a customer communication system, a merchant communication system, and a communication link therebetween, operable in conjunction with one another, to enable the customer to verbally communicate said purchase data to the merchant.

4. The data processing system of claim 1, wherein said first communication means comprise at least one of:

a written form representative of said purchase data and completed by the customer, a first form sending means, for sending said written form by the customer to the merchant, and a first form receiving means, for receiving said written form by the merchant from the customer.

5. The data processing system of claim 4, wherein said first form sending means comprise a customer facsimile system, wherein said first form receiving means comprise a merchant facsimile system, and wherein said customer facsimile system is operable to send said written form, and said merchant facsimile system is operable to receive said written form, as a facsimile transmission.

6. The data processing system of claim 1, further comprising means for enabling the customer to produce a written form representative of said purchase data, wherein said first communication means comprises one of the postal mail system, or a courier, and wherein during operation thereof, said written form is mailed by the customer to the merchant.

7. The data processing system of claim 6, further comprising form processing means for extracting said purchase data from said written form and for generating said order data for transmission to the financial service provider by said second communication means.

8. The data processing system of claim 1, wherein said authentication means further comprises fund verification means, for determining whether the predefined funds are sufficient to satisfy said required payment, and when the predefined funds are sufficient, causing said first control means to transfer a payment equal to said required payment amount through the customer financial account to the predefined merchant financial account, to enable the merchant to fulfill said desired order.

9. The data processing system of claim 8, wherein said authentication means further comprises denial means for rejecting, by the financial service provider, said required payment when the predefined funds are insufficient.

10. The data processing system of claim 9, wherein said authentication means further comprises first offer means, for offering during said direct communication, when the predefined funds are insufficient and prior to operation of said denial means, by the financial service provider to the customer, at least one assistance service configured such that acceptance of said at least one assistance service by the customer, results in said required payment being transmitted to the predefined merchant financial account, and refusal of said at least one assistance service by the customer, activates said denial means.

11. The data processing system of claim 1, wherein said authentication means further comprises second offer means, for offering during said direct communication, by the financial service provider to the customer, at least one service being marketed by the financial service provider or a business partner thereof.

12. The data processing system of claim 1, wherein said first and second communication means operate over the Internet, and wherein said third and fourth communication means operate over a telecommunication network.

13. The data processing system of claim 1, wherein during operation of said third communication means, said direct communication is initiated by the customer contacting the financial service provider.

14. The data processing system of claim 1, wherein during operation of said third communication means, said direct communication is initiated by financial service provider contacting the customer.

15. The data processing system of claim 1, wherein a configuration of said third communication means and said authentication means are predetermined by the financial service provider and the customer in conjunction with one another.

16. The data processing system of claim 1, wherein said third communication means comprises a customer communication device, and a financial service provider communication system, and wherein said customer communication device and said financial service provider communication system are operable to establish said direct communication, between the customer and the financial service provider, over a corresponding communication link.

17. The data processing system of claim 16, wherein said customer communication device is a telephone, wherein said financial service provider communication system is a telephone system, and wherein said corresponding communication link is a telecommunication network.

18. The data processing system of claim 1, wherein said authentication means further comprise identity verification means, for verifying the identity of the customer by the financial service provider during said direct communication, prior to verification of said desired order.

19. The data processing system of claim 1, wherein the merchant comprises a wireless service provider with which the customer has a predefined subscription account associated with a predefined mobile communication device, wherein said predefined subscription account includes the predefined customer confidential financial data previously submitted by the customer to said wireless service provider, and wherein said first communication means comprises said predefined mobile communication device, operable, by the customer, to send said purchase data to said wireless service provider in form of an electronic message.

20. The data processing system of claim 1, wherein the merchant comprises a mobile commerce-enabled merchant associated with a wireless service provider with which the customer has a predefined subscription account associated with a predefined mobile communication device, wherein said predefined subscription account includes the predefined customer confidential financial data previously submitted by the customer to said wireless service provider, wherein said first communication means comprises:

said predefined mobile communication device, operable, by the customer, to send said purchase data to said wireless service provider in form of an electronic message, and

forwarding means, for forwarding, by said wireless service provider to said mobile commerce-enabled merchant, said purchase data.

21. A data processing method for enabling a commercial order transaction between a customer and a merchant, the customer having a customer financial account with a financial service provider, the customer financial account having access to predefined funds, and having predefined customer confidential financial data, necessary to make payments therethrough, associated therewith, and the merchant having a predefined merchant financial account, and being authorized to receive payments from the financial service provider thereto, comprising the steps of:

(a) communicating, by the customer to the merchant, purchase data being representative of at least;

a desired order, customer data, and partial confidential financial data, representative of a portion of the predefined customer confidential financial data, that is sufficient, in conjunction with said customer data, to identify the customer to the financial service provider;

(b) providing, by the merchant to the financial service provider, order data, representative of;

said purchase data, merchant data sufficient to identify the merchant and the predefined merchant financial account to the financial service provider, and charge data representative of a payment required by the merchant for said merchant order;

(c) establishing direct communication between the customer and the financial service provider;

(d) verifying, by the financial service provider, during said direct communication, that the customer actually placed said desired order with the merchant; and

(e) when said desired order placement by the customer is verified at said step (d), transmitting said required payment for said desired order through the customer financial account to the predefined merchant financial account, thereby enabling the merchant to fulfill said desired order.

22. The data processing method of claim 21, further comprising the steps of:

(f) prior to said step (c), determining, by the financial service provider, whether the predefined funds are sufficient to satisfy said required payment; and

(g) when the predefined funds are sufficient, transmitting a preliminary order authorization to the merchant.

23. The data processing method of claim 22, further comprising the step of:

(h) when the predefined funds are not sufficient, transmitting a payment denial to at least one of;

the merchant and the customer.

24. The data processing method of claim 23, further comprising the step of:

(i) when said step (h) has been performed, canceling said steps (d) and (e).

25. The data processing method of claim 22, further comprising the steps of:

(j) when the predefined funds are not sufficient, proceeding to said step (d), and then offering, by the financial service provider to the customer during said direct communication, at least one assistance service to enable the desired order to be completed based on the customer'"'"'s acceptance thereof.

26. The data processing method of claim 25, further comprising the steps of:

(k) when the customer accepts said at least one assistance service, performing said at least one assistance service by the financial service provider, and proceeding to said step (e).

27. The data processing method of claim 25, further comprising the steps of:

(l) when the customer declines said at least one assistance service, transmitting a payment denial to at least one of;

the merchant and the customer, and canceling said step (e).

28. The data processing method of claim 21, further comprising the steps of:

(m) offering, during performance of said step (d), by the financial service provider to the customer, at least one service being marketed by the financial service provider or a business partner thereof.

29. The data processing method of claim 21, wherein said step (d) is initiated by the customer contacting the financial service provider.

30. The data processing method of claim 21, wherein said step (d) is initiated by the financial service provider contacting the customer.

31. The data processing method of claim 21, further comprising the step of:

(n) prior to said step (a), determining, by the financial service provider and the customer in conjunction with one another, the manner in which said step (d) is performed.

32. The data processing method of claim 21, wherein said step (d) further comprises the step of:

(o) at the beginning of said direct communication, verifying, by the financial service provider, the identity of the customer.

33. The data processing method of claim 32, further comprising the step of:

(p) when the identity of the customer is not verified at said step (o), initiating a fraud investigation of the desired order and transmitting a payment denial to at least one of;

the merchant and the customer.

34. The data processing method of claim 21, wherein the merchant comprises a wireless service provider with which the customer has a predefined subscription account associated with a predefined mobile communication device, wherein said predefined subscription account includes the predefined customer confidential financial data previously submitted by the customer to said wireless service provider, and wherein said step (a) comprises the step of:

(q) sending said purchase data, from said predefined mobile communication device to said wireless service provider, in form of an electronic message.

35. The data processing method of claim 34, further comprising the step of:

(t) at least partially performing said step (d), by the wireless service provider.

36. The data processing method of claim 21, wherein the merchant comprises a mobile commerce-enabled merchant associated with a wireless service provider with which the customer has a predefined subscription account for a predefined mobile communication device, wherein said predefined subscription account includes the predefined customer confidential financial data previously submitted by the customer to said wireless service provider, and wherein said step (a) comprises the steps of:

(r) sending said purchase data, from said predefined mobile communication device to said wireless service provider, in form of an electronic message; and

(s) forwarding said purchase data by said wireless service provider to said mobile commerce-enabled merchant.

37. The data processing method of claim 36, further comprising the step of:

(u) at least partially performing said step (d), by the wireless service provider.