Electronic balance checking and credit approval system for use in conducting electronic transactions

• US 20060229978A1
• Filed: 04/05/2006
• Published: 10/12/2006
• Est. Priority Date: 04/05/2005
• Status: Active Grant

• Current Assignee: DXStorm.com, Inc.
• Original Assignee: DXStorm.com, Inc.
• Inventors: Popovic, Zoran, Oprea, E. Marcel, Smashnuk, Steven
• Granted Patent: US 8,050,991 B2
• Time in Patent Office: Days
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/40 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 30/00 Commerce
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

An electronic balance checking and credit approval system includes consumer transaction accounts, tokens, input devices, authentication hardware and software, and output devices. The consumer transaction account is held in trust on behalf of a consumer by a credit extending company. The token is specific to and held by the consumer, and includes a consumer account identifier that is associated with the consumer transaction account. The input device receives the consumer account identifier concurrent with a consumer-initiated request for account balance information. The authentication hardware and software verifies the consumer-initiated request and the consumer account identifier and authorizes access to the consumer transaction account. The consumer interface apparatus provides the consumer with a real-time account balance datum that is currently associated with the consumer transaction account. The system also includes a system and method for securely and quickly approving credit card transactions by comparing generated checksums with stored historical transaction results.

Claims

1. A secure credit approval system for use by a vendor, a consumer, and a credit extending entity in conducting an electronic transaction over a communication network, said system comprising:

a) a consumer transaction account administered by the credit extending entity on behalf of the consumer;

b) a consumer specific token, held by the consumer, comprising one or more account data identifying said consumer transaction account;

c) an input device that ephemerally receives said account data from said consumer specific token;

d) checksum hardware and software electronically receiving said account data from said input device, with said checksum hardware and software comprising;

i) a checksum generating means for electronically generating, using a predetermined algorithmic model, an account checksum value for each set of said account data, with each said account checksum value being substantially unique to each said set of said account data; and

ii) a creditor querying means for sending said account data as part of a final approval request which is transmitted over the communication network, substantially remotely of said input device, to the credit extending entity;

wherein said checksum hardware and software discards said account data after generating said account checksum value and sending said final approval request;

e) a final result signal which is generated by the credit extending entity, in response to said final approval request, and transmitted over the communication network;

f) a point-of-sale subsystem, operated by the vendor, for concluding the electronic transaction, with said point-of-sale subsystem receiving said final result signal from the communication network;

g) a checksum database having a plurality of archived checksum values stored therein, with each respective one of said archived checksum values having at least one related archived payment history value that is likewise stored in said checksum database; and

h) a payment history analysis means for electronically generating, and sending to said point-of-sale subsystem, a preliminary approval signal on a substantially instantaneous basis when said account checksum value matches a corresponding one of said archived checksum values, provided that its said related archived payment history value complies with one or more predetermined approval criteria;

wherein, when said preliminary approval signal is received by said point-of-sale subsystem, said point-of-sale subsystem provides preliminary approval of the electronic transaction on a substantially instantaneous basis and substantially before receiving said final result signal.

2. A system according to claim 1, wherein each said account checksum value and each of said archived checksum values is substantially encrypted, by using said predetermined algorithmic model as aforesaid, such that said account data is substantially indecipherable therefrom.

3. A system according to claim 1, wherein, when said account checksum value differs from each of said archived checksum values, said point-of-sale subsystem awaits receipt of said final result signal before concluding the electronic transaction.

4. A system according to claim 3, wherein said final result signal comprises a signal selected, by the credit extending entity, from the group consisting of a final approval signal and a final refusal signal, and wherein, when said account checksum value differs from each of said archived checksum values, said point-of-sale subsystem provides final approval of the electronic transaction after receiving said final approval signal, and provides final refusal of the electronic transaction after receiving said final refusal signal.

5. A system according to claim 4, further comprising database storage means for, when said account checksum value differs from each of said archived checksum values, storing said account checksum value in said checksum database as one of said plurality of archived checksum values.

6. A system according to claim 5, wherein, for each said corresponding one of said archived checksum values, said database storage means additionally stores in said checksum database at least a last one said final result signal as at least a portion of its said related archived payment history value.

7. A system according to claim 6, wherein said payment history analysis means electronically generates said preliminary approval, signal, provided that said last one said final result signal, stored as at least said portion of said related archived payment history value of said corresponding one of said archived check sum values, comprises said final approval signal.

8. A system according to claim 1, wherein, when said preliminary approval signal is received by said point-of-sale subsystem, the point-of-sale subsystem substantially concludes the electronic transaction with the consumer substantially before receiving said final result signal.

9. A system according to claim 1, wherein said predetermined approval criteria comprise a predetermined set of instant approval parameters.

10. A system according to claim 9, wherein said instant approval parameters are selectively predetermined by the vendor.

11. A system according to claim 9, wherein said instant approval parameters comprise a range of approved dollar values for the electronic transaction.

12. A system according to claim 9, wherein said instant approval parameters comprise at least one range of approved date/time values for the electronic transaction.

13. A system according to claim 9, wherein said instant approval parameters comprise a listing of approved products/services for the electronic transaction.

14. A system according to claim 1, wherein, when said account checksum value differs from each of said archived checksum values, said creditor querying means transmits said final approval request to the credit extending entity on a substantially instantaneous basis.

15. A system according to claim 1, wherein said input device comprises a terminal provided substantially locally of said point-of-sale subsystem, with said terminal electronically receiving said account data from said consumer specific token.

16. A system according to claim 1, wherein said one or more account data comprise at least one datum selected from the group consisting of numeric, alphabetic, photographic and pictographic data.

17. A system according to claim 1, wherein said one or more account data comprise at least one datum selected from the group consisting of personal data specific to the consumer, and data specific to at least one of said consumer transaction account, said credit extending entity, and said consumer specific token.

18. A system according to claim 17, wherein said personal data specific to the consumer comprises at least one personal datum selected from the group consisting of name data, home address data, birthdate data, and biometric data.

19. A system according to claim 17, wherein said at least one datum is additionally selected from the group consisting of account password data, token expiry date data, and token type data sufficient to identify the general type of said consumer specific token.

20. A system according to claim 1, wherein said consumer specific token is a plastic card including a readable magnetic strip.

21. A system according to claim 1, wherein said account data comprise credit card account identifiers.

22. A system according to claim 1, wherein said credit extending entity is a credit card issuing bank.

23. A system according to claim 1, wherein said creditor querying means transmits said final approval request over the communication network, through an intermediary payment processing company, to the credit extending entity.

24. A system according to claim 1, further comprising token sorting means for ascertaining when said consumer specific token is a credit card.

25. A balance checking transaction system for use by a consumer, a transaction processing entity, a vendor, and one or more trust account chartered banks in conducting an electronic transaction over a communication network, said system comprising:

a) a first consumer account held by the transaction processing entity on behalf of the consumer;

b) a consumer specific token, held by the consumer, comprising a token data set that identifies said first consumer account;

c) an input device that receives said token data set from the consumer specific token and transmits said token data set along with an input device datum over the communication network;

d) authentication hardware and software, situated substantially remotely of said input device, that receives said token data set over the communication network and verifies said token data set and said input device datum against at least one database containing a plurality of archived data sets and input device data, so as to retrieve an account balance datum that is currently associated with said first consumer account, with said authentication hardware and software thereafter transmitting said account balance datum over the communication network on a substantially instantaneous basis; and

e) an output device, situated substantially locally to said input device, that receives said account balance datum over the communication network and provides said account balance datum to the consumer on said substantially instantaneous basis;

f) a point-of-sale subsystem, operated by the vendor, that electronically interfaces with said authentication hardware and software over the communication network, so as to enable the electronic transaction to be conducted substantially concurrent with provision of said account balance datum to the consumer as aforesaid; and

g) a transaction account held by a first one of the banks on behalf of the transaction processing entity, with said first one of the banks, responsive to a decrement request of the transaction processing entity, transferring an amount of funds from said transaction account to the vendor in respect of the electronic transaction.

26. A system according to claim 25, wherein said input device enables the consumer to '"'"'selectively conduct a balance query, such that said output device provides said account balance datum before enabling the electronic transaction to be conducted.

27. A system according to claim 25, wherein said input device enables the consumer to selectively conduct a purchase query, such that the electronic transaction is conducted immediately prior to provision of said account balance datum to the consumer, with said authentication hardware and software debiting a purchase amount to said first consumer account substantially immediately after the electronic transaction, such that said account balance provided by said output device to the consumer indicates said purchase amount having been debited from said first consumer account.

28. A system according to claim 25, wherein said input device enables the consumer to selectively send a recharge request to the authentication hardware and software in order to recharge said first consumer account, with said recharge request including a recharge amount which is credited by said authentication hardware and software to said first consumer account;

and wherein said system further comprises a second consumer account held by one of said first one of the banks and a second one of the banks on behalf of the consumer, with one of said first one of the banks and said second one of the banks, responsive to an increment request of the transaction processing entity, transferring an amount of funds from said second consumer account to said transaction account in respect of the recharge request.

29. A system according to claim 25, wherein said input device substantially encrypts said token data set along with said input device datum, as an encrypted block which is then transmitted over the communication network;

and wherein said authentication hardware and software decrypts said encrypted block into said token data and said input device datum, before verifying said token data set and said input device datum against said at least one database as aforesaid.

30. A system according to claim 25, wherein said input device and said output device are together provided within a single terminal.

31. A system according to claim 30, wherein said terminal is situated substantially adjacent to said point-of-sale subsystem, such as to enable the terminal to receive the token data set from the consumer specific token, held by the consumer, substantially adjacent to the point-of-sale subsystem.

32. A system according to claim 25, wherein said input device and said output device are situated substantially remotely of said point-of-sale subsystem.

33. A system according to claim 25, further comprising a plurality of supplemental input devices and supplemental output devices, with each respective one of said supplemental input devices having a supplemental input device datum, with each said supplemental input device datum being substantially unique to each said respective one of said supplemental input devices, so as to enable said account balance datum to be directed to a corresponding one of said supplemental output devices which is situated substantially locally to said respective one of said supplemental input devices.

34. A system according to claim 25, wherein said output device comprises a display screen that displays said account balance datum within view of the consumer.

35. A system according to claim 25, wherein said consumer specific token is a plastic card including a readable magnetic strip.

36. A system according to claim 25, wherein said consumer specific token generates a radio frequency identification signal.

37. A system according to claim 25, wherein said token data set comprises at least one datum selected from the group consisting of numeric, alphabetic, photographic and pictographic data.

38. A system according to claim 25, wherein said token data set comprises at least one datum selected from the group consisting of personal data specific to the consumer, and data specific to at least one of said first consumer account, said transaction processing entity, said second consumer account, said bank, and said consumer specific token.

39. A system according to claim 38, wherein said personal data specific to the consumer comprises at least one personal datum selected from the group consisting of name data, home address data, birthdate data, and biometric data.

40. A system according to claim 38, wherein said at least one datum is additionally selected from the group consisting of account password data, token expiry date data, and token type data sufficient to identify the general type of said consumer specific token.

41. A secure credit approval and balance checking system for use by a vendor, a consumer, a credit extending entity, a transaction processing entity, and a trust account chartered bank in conducting an electronic transaction over a communication network, said system comprising:

a) a first consumer account administered by the transaction processing entity on behalf of the consumer;

b) a second consumer account administered by the credit extending entity on behalf of the consumer;

c) a consumer specific token, held by the consumer, comprising a consumer data set, with said consumer data set comprising at least one data set selected from the group consisting of;

i) one or more account data identifying said second consumer account; and

ii) a token data set that identifies said first consumer account;

d) an input device that ephemerally receives said consumer data set from said consumer specific token;

e) token sorting means for ascertaining when said consumer data set identifies said first consumer account, and for ascertaining when said consumer data set identifies said second consumer account;

wherein, when said consumer data set identifies said first consumer account, said token sorting means transmits said token data set along with an input device datum over the communication network;

f) checksum hardware and software electronically receiving said account data from said input device when said consumer data set identifies said second consumer account, with said checksum hardware and software comprising;

i) a checksum generating means for electronically generating, using a predetermined algorithmic model, an account checksum value for each set of said account data, with each said account checksum value being substantially unique to each said set of said account data; and

ii) a creditor querying means for sending said account data as part of a final approval request which is transmitted over the communication network, substantially remotely of said input device, to the credit extending entity;

wherein said checksum hardware and software discards said account data after generating said account checksum value and sending said final approval request;

g) a final result signal which is generated by the credit extending entity, in response to said final approval request, and transmitted over the communication network;

h) authentication hardware and software, situated substantially remotely of said input device, that receives said token data set over the communication network when said consumer data set identifies said first consumer account, with said authentication hardware and software verifying said token data set and said input device datum against at least one database containing a plurality of archived data sets and input device data, so as to retrieve an account balance datum that is currently associated with said consumer transaction account, with said authentication hardware and software thereafter transmitting said account balance datum over the communication network on a substantially instantaneous basis;

i) an output device, situated substantially locally to said input device, that receives said account balance datum over the communication network and provides said account balance datum to the consumer on said substantially instantaneous basis when said consumer data set identifies said first consumer account;

j) a point-of-sale subsystem operated by the vendor;

wherein, when said consumer data set identifies said second consumer account as aforesaid, said point-of-sale subsystem is provided for concluding the electronic transaction, with said point-of-sale subsystem receiving said final result signal from the communication network; and

wherein, when said consumer data set identifies said first consumer account as aforesaid, said point-of-sale subsystem electronically interfaces with said authentication hardware and software over the communication network, so as to enable the electronic transaction to be conducted substantially concurrent with provision of said account balance datum to the consumer as aforesaid;

k) a transaction account which is administered by the bank on behalf of the transaction processing entity, such that, when said consumer data set identifies said first consumer account as aforesaid, the bank, responsive to a decrement request of the transaction processing entity, transfers an amount of funds from said transaction account to the vendor in respect of the electronic transaction;

l) a checksum database having a plurality of archived checksum values stored therein, with each respective one of said archived checksum values having at least one related archived payment history value that is likewise stored in said checksum database; and

m) a payment history analysis means for electronically generating, and sending to said point-of-sale subsystem, a preliminary approval signal on a substantially instantaneous basis when said account checksum value matches a corresponding one of said archived checksum values, provided that its said related archived payment history value complies with one or more predetermined approval criteria;

wherein, when said preliminary approval signal is received by said point-of-sale subsystem, said point-of-sale subsystem provides preliminary approval of the electronic transaction on a substantially instantaneous basis and substantially before receiving said final result signal.

42. A system according to claim 41, wherein the system is adapted for use over commodity packet switched networks in an online environment.

43. A system according to claim 41, further comprising strong security authentication subsystems to maximize the security and authenticity of the electronic transactions processed thereby.

44. A system according to claim 41, wherein, when said consumer data set identifies said first consumer account, said token data set is received by said input device substantially concurrently with a consumer-initiated request for said account balance information.