System and Method for Authorizing Financial Transactions with Online Merchants

• US 20090313168A1
• Filed: 06/12/2009
• Published: 12/17/2009
• Est. Priority Date: 06/16/2008
• Status: Active Grant

• Current Assignee: Visa USA, Inc. (Visa, Inc.)
• Original Assignee: Visa USA, Inc. (Visa, Inc.)
• Inventors: MANESSIS, Thomas
• Granted Patent: US 10,008,067 B2
• Time in Patent Office: Days
• US Class Current: 705/44
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• 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 20/40 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 20/4093 Monitoring of device authentication
• CPC Class Codes: G06Q 20/40975 using encryption therefor
• CPC Class Codes: G07F 7/1008 Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system
• CPC Class Codes: G07F 7/122 Online card verification

Abstract

A system for authorizing a financial transaction of a financial presentation device such as a credit or debit card being presented from a customer to an online merchant. The system includes a peripheral device having a processor configured to generate a dynamic verification value for the card which changes for each financial transaction, and to transmit the dynamic verification value to a user computer via an I/O interface during an online transaction. The system also includes an authentication computer having a memory for storing information used to generate a comparison verification value, a communication device for receiving the dynamic verification value originating from the peripheral device, a processor and an authentication module executable by the processor adapted to generate the comparison verification value using information stored in memory. The authentication computer determines whether to authorize the financial transaction based on whether the comparison verification value matches the received dynamic verification value.

Claims

1. A system for authorizing a financial transaction of a financial presentation device that is presentable to online merchants, comprising:

a peripheral device including;

a first memory for storing information used to generate a dynamic verification value for the financial presentation device;

an I/O interface adapted to be coupled to a user computer;

a first processor configured to generate a dynamic verification value for the financial transaction of the financial presentation device using the information stored in the first memory and to transmit the dynamic verification value to the user computer via the I/O interface;

an authentication computer including;

a communication device adapted to receive the dynamic verification value generated by the peripheral device;

a second memory for storing information used to generate a comparison verification value;

a second processor coupled to the second memory and the communication device; and

an authentication module executable by the processor and adapted to generate the comparison verification value using the information stored in the second memory and to determine whether to authorize the financial transaction of the financial presentation device based on a comparison between the comparison verification value and the received dynamic verification value.

2. The system of claim 1, wherein the first memory storing information used to generate the dynamic verification value includes a table of preset dynamic verification values.

3. The system of claim 2, wherein the first processor sequentially retrieves a preset value in the table for use as the dynamic verification value.

4. The system of claim 1, wherein the first memory storing information used to generate the dynamic verification value includes a transaction counter that increments or decrements each time a dynamic verification value is generated, and the first processor generates the dynamic verification value based on the transaction counter.

5. The system of claim 1, wherein the peripheral device is a universal serial bus (USB) device and is connectable to the user computer through a USB port.

6. The system of claim 5, wherein the first memory storing information used to generate the dynamic verification value includes a table of preset dynamic verification values.

7. The system of claim 6, wherein the first processor sequentially retrieves a preset value in the table for use as the dynamic verification value.

8. The system of claim 6, wherein the first memory storing information used to generate the dynamic verification value includes a transaction counter that increments or decrements each time a dynamic verification value is generated, and the first processor generates the dynamic verification value based on the transaction counter.

9. The system of claim 1, wherein the first processor is adapted to encode the dynamic verification value as keyboard input signals.

11. The method of claim 8, wherein the step of generating a dynamic verification value includes:

generating the dynamic verification value using a table of preset dynamic verification values stored in the peripheral device.

12. The method of claim 11, wherein the step of generating the dynamic verification value using a table of preset dynamic verification values includes extracting, in sequence, a preset value in the stored table.

10. A method for authorizing a financial transaction of a financial presentation device that is presentable to online merchants, comprising:

generating, by a peripheral device connectable to a user computer, a dynamic verification value for the financial transaction of the financial presentation device;

receiving, at an authentication computer, the dynamic verification value;

generating, at the authentication computer, a comparison verification value for the financial transaction of the financial presentation device;

determining, at the authentication computer, whether to authorize the financial transaction based on a comparison between the comparison verification value and the received dynamic verification value.

13. The method of claim 10, wherein the step of generating a dynamic verification value includes generating the dynamic verification value according to a transaction counter stored in a memory of the peripheral device which increments or decrements each time a dynamic verification value is generated.

14. The method of claim 10, wherein:

the peripheral device is a universal serial bus (USB) device connectable to the user computer through a USB port; and

the step of generating a dynamic verification value includes generating the dynamic verification value using the USB device.

15. The system of claim 14, wherein the step of generating a dynamic verification value includes generating the dynamic verification value using a table of preset dynamic verification values stored in a memory of the peripheral device.

16. The method of claim 15, wherein the step of generating the dynamic verification value using a table of preset dynamic verification values includes extracting, in sequence, a preset value in the stored table.

17. The method of claim 15, wherein the step of generating a dynamic verification value includes generating the dynamic verification value according to a transaction counter stored in a memory of the peripheral device which increments or decrements each time a dynamic verification value is generated.

18. The method of claim 10, further comprising encoding the dynamic verification value as keyboard input signals.