METHOD AND SYSTEM OF PROCESSING PAYMENTS USING A PROXY CREDENTIAL

• US 20140297438A1
• Filed: 06/12/2014
• Published: 10/02/2014
• Est. Priority Date: 01/21/2005
• Status: Active Grant

• Current Assignee: Samsung Electronics Co. Ltd.
• Original Assignee: Robin Dua
• Inventors: DUA, Robin
• Granted Patent: US 9,235,839 B2
• Time in Patent Office: Days
• US Class Current: 705/21
• CPC Class Codes: G06K 7/10297 arrangements for handling protocols designed for non-contact record carriers such as RFIDs NFCs, e.g. ISO/IEC 14443 and 18092 cryptographic protocols H04L9/00; network security protocols H04L63/00; real-time communication protocols in data switching networks H04L65/00; network protocols for data switching network services H04L67/00
• CPC Class Codes: G06K 7/10415 the interrogation device being fixed in its position, such as an access control device for reading wireless access cards, or a wireless ATM banking machines in general G07F19/00
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/32 using wireless devices
• CPC Class Codes: G06Q 20/322 Aspects of commerce using mobile devices [M-devices]
• CPC Class Codes: G06Q 20/3227 using secure elements embedded in M-devices
• CPC Class Codes: G06Q 20/325 using wireless networks
• CPC Class Codes: G06Q 20/327 Short range or proximity payments by means of M-devices
• CPC Class Codes: G06Q 20/3278 RFID or NFC payments by means of M-devices
• CPC Class Codes: G06Q 20/3674 involving authentication
• CPC Class Codes: G06Q 20/3821 Electronic credentials
• CPC Class Codes: G06Q 20/38215 Use of certificates or encrypted proofs of transaction rights
• CPC Class Codes: G06Q 20/385 using an alias or single-use codes
• 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 20/401 Transaction verification
• CPC Class Codes: G06Q 20/4012 Verifying personal identification numbers [PIN]
• CPC Class Codes: G06Q 20/40145 Biometric identity checks
• CPC Class Codes: G06Q 20/42 Confirmation, e.g. check or permission by the legal debtor of payment
• CPC Class Codes: H04B 5/77 for interrogation
• CPC Class Codes: H04L 2463/102 applying security measure for e-commerce data processing systems or methods, specially adapted for e-commerce G06Q30/00
• CPC Class Codes: H04L 63/0428 : wherein the data content is protected, e.g. by encrypting or encapsulating the payload
• CPC Class Codes: H04L 63/08 : for authentication of entities cryptographic mechanisms or cryptographic arrangements for entity authentication H04L9/32
• CPC Class Codes: H04L 63/083 : using passwords cryptographic mechanisms or cryptographic arrangements for entity authentication using a predetermined code H04L9/3226
• CPC Class Codes: H04L 63/18 : using different networks or channels, e.g. using out of band channels cryptographic mechanisms or cryptographic arrangements for key distribution involving distinctive intermediate devices or communication paths H04L9/0827; cryptographic mechanisms or cryptographic arrangements for authentication using a plurality of channels H04L9/3215
• CPC Class Codes: H04W 12/02 : Protecting privacy or anonymity, e.g. protecting personally identifiable information [PII]
• CPC Class Codes: H04W 12/033 : of the user plane, e.g. user's traffic
• CPC Class Codes: H04W 12/06 : Authentication
• CPC Class Codes: H04W 12/068 : using credential vaults, e.g. password manager applications or one time password [OTP] applications

Abstract

A novel system and methodology for conducting financial and other transactions using a wireless device. Credentials may be selectively issued by issuers such as credit card companies, banks, and merchants to consumers permitting the specific consumer to conduct a transaction according to the authorization given as reflected by the credential or set of credentials. The preferred mechanism for controlling and distributing credentials according to the present invention is through one or more publicly accessible networks such as the Internet wherein the system design and operating characteristics are in conformance with the standards and other specific requirements of the chosen network or set of networks. Credentials are ultimately supplied to a handheld device such as a mobile telephone via a wireless network. The user holding the credential may then use the handheld device to conduct the authorized transaction or set of transactions via, for example, a short range wireless link with a point-of-sale terminal.

Claims

1. A method of processing electronic payment transactions, the method comprising:

transmitting a first payment transaction authorization request that includes a wallet account identifier from a point-of-sale system to a wallet service provider system associated with the wallet account identifier via a payment network;

upon receiving the first payment transaction authorization request at the wallet service provider system, selecting a payment account from a wallet account associated with the wallet identifier, and transmitting a second payment transaction authorization request that includes the selected payment account from the wallet service provider system to an issuer account management system that administers the selected payment account;

authorizing a payment transaction against the selected payment account within the issuer account management system and confirming the authorization of the payment transaction in a response to the second payment transaction authorization request to the wallet service provider system from the issuer account management system; and

upon receiving the response to the second payment transaction authorization request at the wallet service provider system, confirming the authorization of the payment transaction in a response to the first payment transaction authorization request to the point-of-sale system from the wallet service provider system via the payment network.

2. The method of claim 1, further comprising:

setting up the wallet account within the wallet service provider system,

linking a wallet account identifier to the wallet account, and

adding one or more payment accounts from at least one of a credit account, a debit account, an electronic checking account, and a stored value account to the wallet account in the wallet service provider system.

3. The method of claim 2, wherein the payment accounts are administered by one or more issuer account management systems.

4. The method of claim 1, wherein the wallet account identifier linked to a wallet account can be updated by the wallet service provider system.

5. The method of claim 1, further comprising:

transmitting the wallet account identifier from the wallet service provider system to a wireless device via at least one of a wireless network and the Internet, and storing the wallet account identifier in a memory module of the wireless device.

6. The method of claim 1, wherein

one payment account of one or more payment accounts in the wallet account that are linked to the wallet account identifier is set as a default payment account within the wallet account to be automatically selected by the wallet service provider system for the payment transaction, and when no payment account has been previously set as the default payment account, prompting the user to make a selection of one payment account of the linked one or more payment accounts for use in the payment transaction.

7. The method of claim 6, wherein the prompting of the user for selection of the payment account comprises:

displaying on the user'"'"'s device a message from the wallet account provider in response to a first payment transaction authorization request being received by the wallet service provider system, where the message includes at least one payment account of the linked one or more payment accounts in the wallet account; and

receiving the selection of the at least one payment account to be used for the payment transaction.

8. The method of claim 7, wherein the selection of the at least one payment account is received from a user with at least one of a wireless device and a computer.

9. The method of claim 7, wherein the selection of the at least one payment account is received via at least one of a wireless network and the Internet.

10. The method of claim 7, wherein the selection of the at least one payment account comprises:

transmitting a request from the wallet service provider system to a user device for a personal identification number (PIN) in addition to a request for a selection of the at least one payment account; and

transmitting the PIN and the selected at least one payment account entered by the user from the user device to the wallet service provider system via at least one of a wireless network and the Internet.

11. The method of claim 10, wherein the transmitted request includes, for display on the user device, at least one of a merchant name, a merchant location, a date of the payment transaction, a time of the payment transaction, and a monetary amount of the payment transaction.

12. The method of claim 10, further comprising:

verifying the received PIN entered by the user against the user'"'"'s wallet account in the wallet service provider system; and

when the PIN is verified, transmitting the second payment transaction authorization request that includes the selected payment account from the wallet service provider system to the issuer account management system, where the selected at least one payment account is authorized by the issuer account management system, and a response is received by the wallet service provider system; and

transmitting the confirming authorization from the wallet service provider system to the point-of-sale system.

13. The method of claim 7, further comprising:

the user device and the wallet service provider system communicate via at least one of a persistent connection and a stateless connection via at least one of a wireless network and the Internet.

14. The method of claim 1, wherein the wallet account identifier is a number in a Bank Identification Number (BIN) range.

15. The method of claim 14, wherein the number assigned to the wallet account in the BIN range identifies the payment network and a credential issuer.

16. The method of claim 1, further comprising:

transmitting the wallet account identifier from a wireless device to the point-of-sale system for the payment transaction via at least one of a Near Field Communication, Bluetooth communication, and other short-range wireless protocols.

17. The method of claim 16, wherein the transmission of the wallet account identifier from the wireless device to the point-of-sale system is in response to the wireless device being within a predetermined proximity to the point-of-sale system.

18. The method of claim 17, further comprising:

transmitting an interrogation message from the point-of-sale system to the wireless device in connection with the purchasing transaction; and

upon receipt of the interrogation message by the wireless device, transmitting the wallet account identifier from the wireless device to the point-of-sale system.

19. The method of claim 16, wherein the transmission of the wallet account identifier from the wireless device to the point-of-sale system is effectuated when a passcode that is at least one of a Personal Identification Number (PIN) and biometric identification (ID) is input in the wireless device by the user and positively matched against a passcode previously registered and stored in the wireless device'"'"'s memory module.

20. The method of claim 19, wherein the biometric ID is a fingerprint captured by a fingerprint scanner of the wireless device.

21. The method of claim 1, wherein the transmitting an authorization comprises:

transmitting the first payment transaction authorization request from the point-of-sale system to the wallet service provider system via the payment network in response to a positioning of a user device with the wallet account identifier within a predetermined proximity of a reader of the point-of-sale system, the reader sending an interrogation message, and the user device transmitting the wallet account identifier to the reader in response to the interrogation message;

when the first payment transaction authorization request has been received by the wallet service provider system, verifying that the wallet account identifier is associated with an open and valid wallet account, transmitting the second payment transaction authorization request from the wallet service provider system to the issuer account management system that administers the selected payment account from at least one payment account linked to the wallet account;

when the issuer account management system has approved the selected payment account for the payment transaction, transmitting an authorization in a response to the second payment transaction authorization request from the issuer account management system to the wallet service provider system; and

upon receipt of the transaction authorization approval of the selected payment account from the issuer account management system, transmitting an authorization in a response to the first payment transaction authorization request to the point-of-sale system from the wallet service provider system via the payment network to complete the transaction.

22. The method of claim 21, further comprising:

when the wallet service provider system determines that the wallet account identifier received from the point-of-sale system is not associated with an open and valid account, transmitting a transaction decline message from the wallet service provider system to the point-of-sale system in response to the first payment transaction authorization request.

23. The method of claim 21, further comprising:

when the wallet service provider system determines that the wallet account identifier received from the point-of-sale system is associated with an open and valid wallet account, the wallet service provider system selects a default payment account set by the user to complete the payment transaction or if there is no default payment account set, prompts the user to select a payment account from the at least one payment account linked with the wallet account.

24. The method of claim 1, further comprising:

initiating the payment transaction with at least one of a magnetic-stripe card, a smart card, a wireless device, and a computer system that stores the wallet account identifier to be transmitted to the point-of-sale system.

25. The method of claim 1, wherein the second payment transaction authorization request is received and processed by the wallet service provider system that administers the selected payment account or when the selected payment account is not administered by the wallet service provider system, the second payment transaction authorization request is transmitted from the wallet service provider system to the issuer account management system that administers the selected payment account, via the applicable payment network.

26. The method of claim 1, further comprising:

storing user settings associated with the wallet account, including at least one of a default payment account setting, a Personal Identification Number (PIN), a username, a password, and biometric data.

27. The method of claim 1, further comprising:

linking a wallet account with one or more payment accounts that are at least one of a credit account, a debit account, an electronic checking account, and a stored value account.

28. The method of claim 27, wherein the linked credit account, debit account, and stored value account have an associated account number in a Bank Identification Number (BIN) range.

29. The method of claim 28, wherein the linked payment account number in the BIN range identifies the payment network and a credential issuer.