METHOD AND APPARATUS FOR MAKING SECURE TRANSACTIONS USING AN INTERNET ACCESSIBLE DEVICE AND APPLICATION

• US 20110208659A1
• Filed: 05/05/2011
• Published: 08/25/2011
• Est. Priority Date: 08/15/2006
• Status: Abandoned Application

• Current Assignee: Signature Systems LLC
• Original Assignee: Last Mile Technologies LLC
• Inventors: Mason, Clifford, Easterly, Frank
• Application Number:
  US13/101,317
• Publication Number:
  US 20110208659A1
• Time in Patent Office: Days
• US Class Current: 705/79
• CPC Class Codes: G06Q 20/027 involving a payment switch or gateway
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/306 using TV related infrastructures external card used for payment with client device H04N21/4185
• CPC Class Codes: G06Q 20/3274 using a pictured code, e.g. barcode or QR-code, being displayed on the M-device
• CPC Class Codes: G06Q 20/425 using two different networks, one for transaction and one for security confirmation

Abstract

A method for making financial transactions uses a proprietary server and network in communication with a merchant'"'"'s point of sale (POS) terminal and a customer'"'"'s smart phone. The smart phone runs an application that generates or downloads from the server a two dimensional barcode containing encrypted information. The barcode display is scanned at the POS, and transaction information is returned to the proprietary server for processing as an ACH or a conventional transaction.

Claims

1. A system for facilitating transactions between a customer, a merchant, and a source from which the transaction will be financed comprising:

a point of sale (POS) terminal comprising a barcode scanner, a server having a processor and storage, a smart phone capable of executing mobile applications, a source of funding a transaction, encryption and decryption means, and a network connecting said server,

said smart phone, said POS terminal, said source of funding, and the Internet, said storage receiving and storing customer information as a value profile associated with

said customer and said smart phone,

said storage receiving and storing said customer'"'"'s purchasing history;

said encryption means encrypting said value profile and said purchasing history;

said processor creating a 2-D barcode comprising said encrypted value profile and purchasing history;

smart phone associated with said customer being pair with said server;

said server sending said 2-D barcode to said smart phone;

said smart phone displaying said 2-D barcode on a display;

said POS scanning said 2-D barcode;

said POS receiving additional information related to a transaction;

said POS transmitting said 2-D barcode and said additional information to said server;

said encryption and decryption means decrypting said 2-D barcode to retrieve said value profile;

said server authenticating the customer as authorized to conduct said transaction;

said server routing information regarding said transaction to said source of funding;

said server notifying said customer and said POS that said transaction has been settled.

2. A system for facilitating transactions between a customer and a merchant, comprising:

a network comprising a point of sale (POS) terminal having a barcode scanner, a server, a smart phone, and a connection between said server, said smart phone, said POS terminal, and the Internet;

said smart phone accessing information regarding a customer and authenticating said information with said server;

said smart phone accessing a primary barcode associated with said customer;

said smart phone accessing an extension barcode associated with a merchant;

said smart phone combining said primary barcode and said extension barcode into a 2-D combined barcode;

said smart phone displaying said combined barcode;

said POS barcode scanner scanning said display of said combined barcode in a single pass;

said POS sending said scanned combined barcode to said server via the Internet;

said server authenticating, authorizing, clearing and settling said transaction.

3. On a network comprising a point of sale (POS) terminal, a proprietary server, a smart phone, and a connection between said proprietary server, said smart phone, said POS terminal, and the Internet, a method of making a financial transaction comprising the steps of:

enrolling a customer, receiving said customer'"'"'s information, and storing said customer'"'"'s information as a value profile on a proprietary server;

compiling information regarding said customer'"'"'s purchasing history;

encrypting said value profile and said customer'"'"'s purchasing history and creating a 2-D barcode containing said encrypted value profile and purchasing history;

pairing a smart phone associated with said customer with said proprietary server;

sending said barcode to said smart phone;

displaying said 2-D barcode on a display of said smart phone;

scanning said 2-D barcode at said POS;

transmitting said 2-D barcode to said proprietary server;

decrypting said 2-D barcode to retrieve said value profile and said purchasing history;

associating said value profile with a financial transaction;

routing information regarding said financial transaction to a source of funding;

authorizing said financial transaction;

settling, clearing, and closing said financial transaction.

4. On a network comprising a point of sale (POS) terminal, a proprietary server, a smart phone, and a connection between said proprietary server, said smart phone, said POS terminal, and the Internet, a method of making a financial transaction comprising the steps of:

accessing information regarding a customer and authenticating said information via the Internet;

creating a primary barcode and associating said primary barcode with said customer;

creating a extension barcode and associating said primary barcode with a merchant;

combining said primary barcode and said extension barcode into a 2-D combined barcode;

displaying said combined barcode on a smart phone display;

scanning said display of said combined barcode at said POS in a single pass;

sending said scanned combined barcode to said proprietary server via the Internet;

authenticating, authorizing, clearing and settling a retail transaction of exchange of one or more of credit, debit, prepaid account, reward, loyalty points, and coupons.

5. On a network comprising a point of sale (POS) terminal, a proprietary server, a customer'"'"'s value profile maintained on said proprietary server, a smart phone associated with said customer'"'"'s value profile, said smart phone having global satellite positioning information, and a connection between said proprietary server, said smart phone, said POS terminal, and the Internet, a method of distributing coupons comprising the steps of:

determining and storing a GPS location of a POS terminals in a first merchant'"'"'s store;

conducting a first financial transaction at one of said POS terminals in said first merchant'"'"'s store;

determining the GPS location of said first financial transaction during an authorization phase of said transaction;

accessing said value profile associated with a customer;

displaying on said smart phone a time-limited coupon for a purchasing an item at a second merchant'"'"'s store where said second merchant'"'"'s store is in proximity to said determined GPS location and wherein said first time-limited coupon is selected based upon said customer'"'"'s value profile;

conducting a second financial transaction at said second merchant'"'"'s store, said second financial transaction comprising purchasing said item, said purchase comprising redeeming said time-limited coupon and paying any additional amount owing through an ACH transaction.

6. On a network comprising a point of sale (POS) terminal, a proprietary server, a smart phone having global satellite positioning information, and a connection between said proprietary server, said smart phone, said POS terminal, and the Internet, a method of making a financial transaction comprising the steps of:

creating a secure encrypted token that partially formats an ACH transaction on a customer'"'"'s smart phone;

pairing said smart phone to said proprietary server through the eCache application and;

scanning said pre formatted and fulfilled ACH data fields to a retailer'"'"'s POS as a 2D barcode where information associated with a retail transaction is loaded into said pre formatted ACH data fields;

transmitting said formatted ACH to said proprietary server;

forwarding said formatted ACH to an Originating Depositary Financial Institution (ODFI) for processing said ACH.