Methods and apparatus for conducting electronic transactions

• US 20090076966A1
• Filed: 11/21/2008
• Published: 03/19/2009
• Est. Priority Date: 08/31/1999
• Status: Active Grant

• Current Assignee: Liberty Peak Ventures, LLC (Dominion Harbor Enterprises, LLC)
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Saunders, Peter D., Bishop, Fred A.
• Granted Patent: US 7,953,671 B2
• Time in Patent Office: Days
• US Class Current: 705/67
• CPC Class Codes: G06Q 20/027 involving a payment switch or gateway
• CPC Class Codes: G06Q 20/0855 involving a third party
• 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 20/363 with the personal data of a user
• CPC Class Codes: G06Q 20/367 involving electronic purses or money safes
• CPC Class Codes: G06Q 20/3674 involving authentication
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 20/3821 Electronic credentials
• CPC Class Codes: G06Q 20/4097 using mutual authentication between devices and transaction partners
• CPC Class Codes: G07F 7/0866 by active credit-cards adapted therefor G07F7/1008 takes precedence
• CPC Class Codes: G07F 7/1008 Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system

Abstract

A system and method for facilitating electronic transactions using an intelligent instrument is disclosed. An authorization server enables users to obtain authorization credentials through the use of the intelligent instrument by issuing a challenge to an intelligent token of the intelligent instrument. The intelligent token generates a challenge response and transmits the challenge response to the authorization server, which assembles credentials including a key for the electronic transaction upon validating the response. The authorization server sends the assembled credentials to the intelligent instrument and the intelligent instrument transmits the assembled credentials to the authorization server during a subsequent transaction. The authorization server validates the assembled credentials and provides authorization for the transaction in response to the validating the assembled credentials.

Claims

1. A method for conducting a transaction, the method comprising:

forwarding a challenge to an intelligent token of a client, wherein said intelligent token generates a challenge response;

receiving said challenge response;

assembling credentials for a transaction in response to verifying said challenge response, wherein said assembled credentials includes a key;

receiving a second request from said client, wherein said second request includes at least a portion of said assembled credentials provided to said client;

validating said portion of said assembled credentials with said key of said assembled credentials; and

,

providing access to a transaction service in response to said validating.

2. The method of claim 1, wherein said method is performed by a trusted third-party server.

3. The method of claim 1, wherein said second request includes a biometric sample received from said client.

4. The method of claim 3, further comprising:

receiving initial credentials, wherein said initial credentials are received from a biometric interface coupled to said client;

modifying said initial credentials using a first public key to create modified stored credentials;

adding a signature to said modified stored credentials by using a first private key;

transmitting said modified stored credentials, to a validation server, wherein said validation server validates said first signature, validates said modified stored credentials by using a second public key associated with said first public key, decrypts said modified credentials using a second private key, and stores said modified credentials;

receiving presented credentials from said client;

modifying said presented credentials to create modified received credentials;

performing a credential validation procedure to determine whether a credential match threshold is met by matching values of said modified received credentials and values of said modified stored credentials.

5. The method of claim 1, wherein said providing access to said transaction service in response to a limited use Personal Identification Number (PIN).

6. The method of claim 5 further comprising:

identifying a primary account having an associated account number;

receiving from an intelligent instrument a request for said limited use PIN;

associating said limited use PIN with said primary account;

issuing said limited use PIN to said intelligent instrument to facilitate said access to said transaction service;

receiving transaction information for authorization, wherein the transaction information includes said limited use PIN;

processing said transaction information to determine whether said transaction information includes said limited use PIN and interfacing with a limited use PIN system to determine whether authorization is appropriate, wherein authorization determination includes;

receiving account information associated with said account number; and

determining whether conditions-of-use parameters associated with said limited use PIN are satisfied, the conditions-of-use parameters defining at least a predetermined restriction on use of the limited use PIN;

issuing an appropriate approval code, in response to conditions of use parameters associated with the limited use PIN and the primary account being satisfied; and

declining the authorization request in response to the conditions associated with the primary account and the limited use PIN not being satisfied.

7. The method of claim 1, further comprising:

establishing a master account for said client;

assigning a pool of limited use account identifiers that correspond to said master account prior to a purchase by said client, said pool of limited use account identifiers including a plurality of limited use account identifiers each identifying a separate financial account at an issuer, each formatted for processing by payment card networks, and each issued without an associated with an intelligent device, each of said pool of limited use account identifiers being different from said master account identifier;

receiving, from said client, a request for a purchase of an item from a merchant;

identifying said pool of limited use account identifiers associated with said client; and

assigning one of said plurality of limited use account identifiers from said pool for use by said client to access said transaction service.

8. The method of claim 1, further comprising:

receiving an initial authorization request, said initial authorization request including transaction information identifying a transaction including merchant information, an account identifier corresponding to a financial account, and a transaction amount;

identifying a pre-authorization record associated with said account identifier;

determining that said transaction amount complies with authorization criteria including a pre-authorized amount in said pre-authorization record, wherein said pre-authorization record corresponds to a predetermined purchase transaction;

transmitting an authorization message to said merchant;

determining, based on said transaction information, that said transaction involves a partial shipment; and

,

at least one of;

updating said pre-authorization record or creating a new pre-authorization record in response to said transaction involving said partial shipment.

9. The method of claim 1, wherein said verifying said challenge response comprises processing said response to verify an intelligent instrument.

10. The method of claim 1, further comprising receiving a registration of a biometric sample, wherein said registration comprises a proffered biometric sample.

11. The method of claim 10, wherein said receiving said registration further comprises processing database information contained in at least one of:

an intelligent instrument, intelligent instrument reader, a biometric sensor, a remote server, or a merchant server.

12. The method of claim 11, wherein said comparing further comprises comparing said proffered biometric sample to said stored biometric sample by using at least one of a third-party security vendor device or a local CPU.

13. The method of claim 10, wherein said biometric sample comprises at least a portion of one of:

voiceprint, fingerprint, facial features, ear features, sound signature, handwriting signature, vascular patterns, DNA, hand geometry, smell, keystroke/typing features, iris, retina, and brainwaves.

14. The method of claim 10, wherein said biometric sample is primarily associated with first user information, wherein said first user information comprises personal information, charge card information, debit card information, savings account information, membership information, PayPal account information, Western Union Account information, electronic bill payment information, automatic bill payment information and loyalty point information, and wherein said biometric sample is secondarily associated with at least one of second user information, wherein said second information comprises personal information, credit card information, debit card information, savings account information, membership information, PayPal account information, Western Union Account information, electronic bill payment information, automatic bill payment information and loyalty point information, and wherein said second user information is different than said first user information.

15. The method of claim 1, further comprising issuing a secure token to said client based on said validating, wherein said secure token at least one of:

enables said transaction in accordance with rules associated with said secure token or enables authorization of said transaction independent of a transaction account issuer.

16. The method of claim 1, wherein said transaction service includes at least one of:

access to view electronic file, access to download an electronic file, or a purchase authorization.

17. A method for conducting a transaction, the method comprising:

receiving, at a first server, a transaction request from a client for a transaction at a merchant server; and

issuing a challenge to a second server, wherein said second server;

forwards said challenge to an intelligent token of said client, wherein said intelligent token generates a challenge response;

verifies said challenge response;

assembles credentials for said transaction, wherein said credentials include at least one key;

receives a second request from said client, wherein said second request includes at least a portion of said assembled credentials;

validates said portion of said assembled credentials with said key of said assembled credentials; and

provides access to a transaction service in response to said validation.

18. A method for conducting a transaction, the method comprising:

sending, from a client, a transaction request to a first server, wherein said first server issues a challenge to a second server, and wherein said second server;

forwards said challenge to an intelligent token of said client, wherein said intelligent token generates a challenge response;

verifies said challenge response;

assembles credentials for said transaction, wherein said credentials include at least one key;

receives a second request, wherein said second request includes at least a portion of said assembled credentials; and

validates said portion of said assembled credentials with said key of said assembled credentials; and

receiving access, from said second server, to a transaction service in response to said validation.