System for Secure Purchases Made by Scanning Barcode Using a Registered Mobile Phone Application Linked to a Consumer-Merchant Closed Loop Financial Proxy Account System

• US 20130262315A1
• Filed: 03/30/2012
• Published: 10/03/2013
• Est. Priority Date: 03/30/2012
• Status: Abandoned Application

• Current Assignee: Hruska, John
• Original Assignee: Hruska, John
• Inventors: Hruska, John
• Application Number:
  US13/436,549
• Publication Number:
  US 20130262315A1
• Time in Patent Office: Days
• US Class Current: 705/67
• CPC Class Codes: G06Q 20/227 characterised in that multiple accounts are available, e.g. to the payer
• CPC Class Codes: G06Q 20/3276 using a pictured code, e.g. barcode or QR-code, being read by the M-device
• CPC Class Codes: G06Q 20/3572 Multiple accounts on card

Abstract

A secure product purchasing system and method are disclosed to allow for online purchase of goods or services by means of a proprietary graphical or barcode-represented printed or on-line digital product code and details to be either sent to or discovered by a customer, so as to be scanned then paid for using a secure financial closed-loop proxy account and a pre-registered personal handheld mobile device where all funds within the account remain in an “inactive” non-usable state until activated and allocated only by the customer through the mobile handheld device, wherein the merchant is registered to the secure financial closed-loop proxy account.

Claims

1. A system on a computer based network for a secure purchase of a product by a customer from a merchant by means of the customer'"'"'s pre-registered personal mobile device, comprising:

a registration protocol for the personal mobile device;

a point of purchase mobile application installed on the personal mobile device, which provides a mechanism for the customer to log in and be authenticated, and which utilizes a scanning device on the personal mobile device to scan and decode a product advertisement, information and price expressed as a graphical image, which is received by the customer from a variety of digital and print media to identify the merchant and the product subject matter;

an activation protocol for identifying the account'"'"'s registered mobile device, using a unique authentication identification number specific to the personal mobile device, the mobile application installed on that device, and the customer, in order to make the account and funds active to purchase a specific product by the customer from a specific merchant;

a secure financial proxy account such as an online wallet, established for the purpose of holding unused dormant funds of the customer pooled together with funds of the merchant or financial institution until the customer activates and allocates their funds by means of their registered personal mobile device and mobile application;

a product detail and pricing generating system which is registered with and identifies the product and merchant to the mobile application;

a transactional and authentication server which stores and authenticates data sent from the customer'"'"'s personal mobile device and mobile application over a telecommunications network;

a first proprietary application resident on the transactional and authentication server using customer-based information to validate the specific customer and device, the specific merchant, and the specific product that the customer wishes to purchase from that merchant; and

a second proprietary application resident on the transactional and authentication server which creates a unique customer and device specific, time-sensitive, single-use encrypted digital transactional alphanumeric token which is specific to the personal mobile device, its location, and the customer'"'"'s personal identification information, the specific product and the specific merchant.

2. The system of claim 1, further comprising:

a proprietary merchant product integration application which reads merchant proprietarily formatted product information scanned and decoded from the graphical image and validated by the first proprietary application and then places this in a format compatible with the second proprietary application, and wherein the digital and print media is from the group comprising emails, websites, social media, banners, newspaper and magazine ads, posters, and billboards.

3. The system of claim 1, wherein the a product advertisement, information and price may be simultaneously scanned and decoded from the graphical image at the customer'"'"'s or the merchant'"'"'s end to identify the subject matter for the invoice and thus ensure data redundancy, integrity and security.

4. The system of claim 1, incorporating logical rules to set an alarm for the customer and merchant if the product price exceeds the available funds in the proxy account so that the customer may replenish funds.

5. The system of claim 1, wherein the data is sent from the customer'"'"'s personal mobile device and mobile application to the transactional and authentication server over a telecommunications network by means of an ssl or other secure protocol.

6. The system of claim 1, wherein the unique customer and device specific, time-sensitive, single-use encrypted digital transactional alphanumeric token is created by the transactional and authentication server as soon as the customer authorizes a credit and redeemed by the merchant as soon as the product is shipped to the customer, where a credit to the merchant'"'"'s secure financial proxy account, and a debit to the customer'"'"'s secure financial proxy account occur simultaneously.

7. The system of claim 1, wherein a transactional history is recorded for accounts of the customer and merchant.

8. The system of claim 1, wherein the customer receives a product advertisement, information and price from a merchant via mail/email with a unique bar code, and a complex symbol to be used to settle the amount due for purchase of the product.

9. The system of claim 1, wherein the customer ensures secure purchases of a given a product at a known price on a separate dedicated system created account purely for the purpose of the purchase and replenishes funds in this account at intervals based on anticipated regular purchases.

10. The system of claim 1, compatible with the strong encryption standards of existing financial systems, and wherein the unique customer and device specific, time-sensitive, single-use encrypted digital transactional alphanumeric token is never duplicated and contains no permanent account information of the customer.

11. A method for network for secure purchase by a customer of a product from a merchant by means of the customer'"'"'s personal mobile device, comprising the steps of:

establishing a secure financial proxy account such as an online wallet, for the purpose of holding unused dormant funds of the customer pooled together with funds of the merchant, until such time that the customer activates and allocates the unused dormant funds by means of a registered personal mobile device of the customer and a mobile application installed on the personal mobile device;

linking the secure financial proxy account to a transactional and authentication server, upon which resides an application to effectuate secure purchase of the product by the customer from the merchant;

scanning a product advertisement, information and price, which was received by the customer from a variety of digital and print media expressed as a graphical image, by means of a scanning device on the personal mobile device;

validating the customer by allowing the customer to log in to their mobile application installed on their personal mobile device, then comparing to information for the customer stored on a database of the merchant;

passing customer and merchant information retrieved at the time of validating to the transactional and authentication server along with the scanned product advertisement, information and price;

decoding the scanned product advertisement, information and price by means of the mobile application installed on the personal mobile device in order to identify the merchant and product;

generating a unique customer and device specific, time-sensitive, single-use encrypted digital transactional alphanumeric token by the transactional and authentication server using the unique identifier of the specific personal mobile device, the unique identifier of the mobile application installed on the personal mobile device, the customer'"'"'s personal identification information, the customer'"'"'s specific product advertisement, information and price, and the specific merchant, for the purpose of making payment for the paying the particular product to the specific merchant;

transmitting over a telecommunication network the customer'"'"'s information and the unique user and device specific, time-sensitive, single-use encrypted digital transactional alphanumeric token by a secure protocol over a telecommunications network from the transactional and authentication server to the merchant;

verifying by the merchant of the customer'"'"'s information, the product advertisement, information and price, and the unique user and device specific, time-sensitive, single-use encrypted digital transactional alphanumeric token;

shipping of the product to the customer by the merchant;

redeeming, upon shipping of the product to the customer by the merchant of the unique customer and device specific, time-sensitive, single-use encrypted digital transactional alphanumeric token, upon verifying the token and the customer'"'"'s information, in order to transfer the customer'"'"'s activated funds to the account of the merchant.

12. The system of claim 11, further comprising the step of:

reading at the transactional and authentication server, by means of an integration application, merchant proprietarily formatted product advertisement, information and price scanned decoded and validated from the graphical image; and

placing this product advertisement, information and price in a format compatible with the second proprietary application; and

(let'"'"'s discuss)

wherein the digital and print media is from the group comprising emails, websites, social media, banners, newspaper and magazine ads, posters, and billboards.

13. The method of claim 11, wherein the steps of scanning the product advertisement, information and price expressed as a graphical image and the step of decoding the scanned product advertisement, information and price to identify the merchant and product are carried out simultaneously at the customer'"'"'s and the merchant'"'"'s end to ensure data redundancy, integrity and security.

14. The method of claim 11, further comprising the steps of:

logically checking if the product price exceeds the available funds in the proxy account so that the customer may replenish funds; and

generating an alarm for the customer if the product price exceeds the available funds in the proxy account so that the customer may replenish funds.

15. The method of claim 11, wherein the secure protocol in the transmitting step is an ssl.

16. The method of claim 11, wherein the step of generating the unique customer and device specific, time-sensitive, single-use encrypted digital transactional alphanumeric token is created by the transactional and authentication server occurs as soon as the customer authorizes a credit and the step of redeeming of the unique customer and device specific, time-sensitive, single-use encrypted digital transactional alphanumeric token by the merchant immediately after the step of shipping the product to the customer, where a credit to the merchant'"'"'s secure financial proxy account, and a debit to the customer'"'"'s secure financial proxy account occur simultaneously

17. The method of claim 11, further comprising the step of recording a transactional history for the accounts of the customer and merchant.

18. The method of claim 11, wherein the customer receives a product advertisement, information and price from a merchant via mail or email and the graphical image consists of a unique bar code, and a complex symbol to be used to settle the amount due for the product purchase price.

19. The method of claim 11, wherein the customer ensures the secure payment for a product on a separate dedicated system account created purely for the purpose of the payment, and replenishes funds in this account at intervals and by increments based on anticipated regular purchases.

20. The method of claim 11, compatible with the strong encryption standards of existing financial systems, and wherein the unique customer and device specific, time-sensitive, single-use encrypted digital transactional alphanumeric token is never duplicated and contains no permanent account information of the customer.