System and method for securing payment instruments

• US 20110270750A1
• Filed: 04/28/2010
• Published: 11/03/2011
• Est. Priority Date: 04/28/2010
• Status: Active Grant

• Current Assignee: Capital One Services LLC (Capital One Financial Corporation)
• Original Assignee: ING Direct FSB (Capital One Financial Corporation)
• Inventors: Sandler, Todd Adam, Abrams, William Pierce JR., Kelly, James John, Struble, Daniel Lloyd, Rowley, Robert Dean III, Wolfs, Rudolph Christian
• Granted Patent: US 8,626,656 B2
• Time in Patent Office: Days
• US Class Current: 705/41
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/042 characterized in that the payment protocol involves at least one cheque
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/354 Card activation or deactivation
• 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 30/0185 Product, service or business identity fraud

Abstract

A system and method for securing financial information in payment instruments including generating a pseudorandom number sequence, generating an activation code, including a unique pseudorandom number of the sequence with each payment instrument of a plurality of payment instruments and issuing the plurality of payment instruments with the activation code to a customer. The activation code is associated with customer identifying information and each unique pseudorandom number of the sequence included with each payment instrument of the plurality of payment instrument. The plurality of payment instruments is activated with the activation code. A received payment instrument of the plurality of payment instruments is authenticated if the customer and the unique pseudorandom number of the sequence included on the received payment instrument are authenticated and if the plurality of payment instruments are activated.

Claims

1. A method for securing financial information, comprising:

a) generating a pseudorandom number sequence;

b) generating an activation code;

c) including a unique pseudorandom number of the sequence with each payment instrument of a plurality of payment instruments; and

d) issuing the plurality of payment instruments with the activation code to a first party.

2. The method of claim 1, further comprising:

activating the plurality of payment instruments with the activation code.

3. The method of claim 2, further comprising:

verifying the authenticity of a payment instrument of the plurality of payment instruments using the activation code.

4. The method of claim 3, further comprising:

verifying the authenticity of a payment instrument of the plurality of payment instruments using the unique pseudorandom number of the sequence included with the payment instrument.

5. The method of claim 1, further comprising:

a) associating the activation code with each of the unique pseudorandom numbers of the pseudorandom number sequence included on each payment instrument of the plurality of payment instruments;

b) associating the activation code with information for identifying the first party; and

c) storing the activation code with each of the unique pseudorandom numbers of the pseudorandom number sequence included on each payment instrument of the plurality of payment instruments and the information for identifying the first party in a file of a second party.

6. The method of claim 5, further comprising:

a) transmitting at least a portion of the information for identifying the first party to the second party;

b) transmitting the activation code to the second party;

c) receiving the at least a portion of the information for identifying the first party;

d) receiving the activation code;

e) authenticating the first party using the received at least a portion of the information for identifying the first party and at least a portion of the stored information for identifying the first party;

f) authenticating the received activation code with the stored activation code; and

g) activating the plurality of payment instruments if the first party and the received activation code are authenticated.

7. The method of claim 6, further comprising:

a) receiving a payment instrument of the plurality of payment instruments having at least a portion of the information for identifying the first party and the unique pseudorandom number of the sequence included with the payment instrument;

b) determining a status of activating the plurality of payment instruments using the at least a portion of the information for identifying the first party on the received check, the stored activation code, and at least a portion of the stored information for identifying the first party;

c) authenticating the first party using the received at least a portion of the information for identifying the first party and at least a portion of the stored information for identifying the first party;

d) authenticating the unique pseudorandom number of the sequence included with the received payment instrument using the received at least a portion of the information for identifying the first party, at least a portion of the stored information for identifying the first party and the stored unique pseudorandom numbers of the pseudorandom number sequence; and

e) authenticating the received payment instrument of the plurality of payment instruments if the first party and the unique pseudorandom number of the sequence included with the received payment instrument are authenticated and if the plurality of payment instruments have been activated.

8. The method of claim 7, further comprising:

debiting an account of the first party if the received payment instrument of the plurality of payment instruments is authenticated.

9. The method of claim 8, further comprising:

displaying the status of the account of the first party to the first party.

10. The method of claim 6 wherein the transmitted at least a portion of the information for identifying the first party is selected from the group consisting of:

the first party'"'"'s name, the first party'"'"'s account number, the first party'"'"'s bank'"'"'s name, the first party'"'"'s bank identification number, the first party'"'"'s routing transit number, the first party'"'"'s user name and password for a website, and website login information assigned to the first party by the second party.

11. The method of claim 10, wherein the transmitted at least a portion of the information for identifying the first party includes website login information assigned to the first party by the second party.

12. The method of claim 1, further comprising:

a) displaying a status of activating the plurality of payment instruments with the activation code to the first party; and

b) displaying a status of each payment instrument of the plurality of payment instruments to the first party.

13. The method of claim 1, wherein the activation code is alphanumeric.

14. The method of claim 1, wherein the payment instrument is a check.

15. The method of claim 14, wherein the check is an paper check.

16. The method of claim 14, wherein the check is an electronic check.

17. A system for securing financial information, comprising:

a) a computer processor having a computer readable storage medium, the computer readable storage medium comprising instructions stored therein for executing on said processor, the instructions, when read and executed, for causing the processor to;

i. generate an activation code for a plurality of payment instruments;

ii. generate a pseudorandom number sequence;

iii. include a unique pseudorandom number of the sequence with each payment instrument of the plurality of payment instruments;

iv. associate the activation code with each of the unique pseudorandom numbers of the pseudorandom number sequence included with each payment instrument of the plurality of payment instruments;

v. associate the activation code with information for identifying the first party;

vi. store the activation code with each of the unique pseudorandom numbers of the pseudorandom number sequence included with each payment instrument of the plurality of payment instruments and the information for identifying the first party in a file of a second party; and

vii. activate the plurality of payment instruments with the activation code; and

b) a means for issuing the plurality of payment instruments with the activation code to a first party;

18. The system of claim 17, the computer readable storage medium further comprising computer-executable instructions stored therein for causing said processor to:

verify the authenticity of a payment instrument of the plurality of payment instruments using the activation code.

19. The system of claim 18, the computer readable storage medium further comprising computer-executable instructions stored therein for causing said processor to:

verify the authenticity of a payment instrument of the plurality of payment instruments using the unique pseudorandom number of the sequence included with the payment instrument.

20. The system of claim 17, further comprising:

a) a means for transmitting at least a portion of the information for identifying the first party to the second party;

b) a means for transmitting the activation code to the second party;

c) a means for receiving the at least a portion of the information for identifying the first party;

d) a means for receiving the activation code;

the computer readable storage medium further comprising computer-executable instructions stored therein for causing said processor to;

a) authenticate the first party using the received at least a portion of the information for identifying the first party and at least a portion of the stored information for identifying the first party;

b) authenticate the received activation code with the stored activation code; and

c) activate the plurality of payment instruments if the first party and the received activation code are authenticated.

21. The system of claim 20, further comprising:

a) a means for receiving a payment instrument of the plurality of payment instruments having at least a portion of the information for identifying the first party and the unique pseudorandom number of the sequence included with the payment instrument;

the computer readable storage medium further comprising computer-executable instructions stored therein for causing said processor to;

a) determine a status of activating the plurality of payment instruments using the at least a portion of the information for identifying the first party, the stored activation code, and at least a portion of the stored information for identifying the first party;

b) authenticate the first party using the received at least a portion of the information for identifying the first party and at least a portion of the stored information for identifying the first party;

c) authenticate the unique pseudorandom number of the sequence included with the received payment instrument using the received at least a portion of the information for identifying the first party, at least a portion of the stored information for identifying the first party and the stored unique pseudorandom numbers of the pseudorandom number sequence; and

d) authenticate the received payment instrument of the plurality of payment instruments if the first party and the unique pseudorandom number of the sequence included with the received payment instrument are authenticated and if the plurality of payment instruments have been activated.

22. The system of claim 21, further comprising:

a means for debiting an account of the first party if the received payment instrument of the plurality of payment instruments is authenticated.

23. The system of claim 22, further comprising:

a means for displaying the status of the account of the first party.

24. The system of claim 18, further comprising:

a) a means for displaying a status of activating the plurality of payment instruments with the activation code to the first party; and

b) a means for displaying a status of each payment instrument of the plurality of payment instruments to the first party.

25. The system of claim 17, wherein the activation code is alphanumeric.

26. The system of claim 17, wherein the payment instrument is a check.

27. A method for authenticating a check, comprising:

a) generating a pseudorandom number sequence;

b) generating an activation code;

c) including a unique pseudorandom number of the sequence with each check of a plurality of checks;

d) issuing the plurality of checks with the activation code to a first party;

e) associating the activation code with each unique pseudorandom number of the pseudorandom number sequence included with each check of the plurality of checks;

f) associating the activation code with information for identifying the first party;

g) storing the activation code with the pseudorandom number sequence and the information for identifying the first party in a file of a second party;

h) receiving a check of the plurality of checks having at least a portion of the information for identifying the first party and the unique pseudorandom number of the sequence included with the check;

i) determining a status of activating the plurality of checks using the at least a portion of the information for identifying the first party, the stored activation code, and at least a portion of the stored information for identifying the first party;

j) authenticating the first party with the received at least a portion of the information for identifying the first party and at least a portion of the stored information for identifying the first party;

k) authenticating the unique pseudorandom number of the sequence included with the check with the received at least a portion of the information for identifying the first party, the stored information for identifying the first party and the stored unique pseudorandom numbers of the pseudorandom number sequence; and

l) authenticating the received check of the plurality of checks if the first party and the unique pseudorandom number of the sequence included with the check are authenticated and if the plurality of checks have been activated.