Providing verification information for a transaction

• US 5,826,245 A
• Filed: 03/20/1995
• Issued: 10/20/1998
• Est. Priority Date: 03/20/1995
• Status: Expired due to Term

• Current Assignee: EctoLink, LLC (Brian Yates)
• Original Assignee: Erik Sandberg-Diment
• Inventors: Sandberg-Diment, Erik
• Primary Examiner(s): Hayes, Gail O.
• Assistant Examiner(s): Tkacs, Stephen R.
• Application Number:
  US08/407,503
• Time in Patent Office: 1,310 Days
• Field of Search: 304/401 R, 304/406, 304/408, 380/25, 380/23, 380/33, 380/24, 380/49, 235/379, 235/380, 235/382, 235/382.5, 395/186, 395/187.01, 395/226, 395/235, 395/238, 395/239, 395/242, 395/244, 902/2, 902/27, 902/4, 902/5, 902/39, 902/40, 340/825.33, 340/825.34, 379/91
• US Class Current: 705/44
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/1085 involving automatic teller machines [ATMs]
• 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

Abstract

Verification information is provided with respect to a transaction between an initiating party and a verification-seeking party, the verification information being given by a third, verifying party, based on confidential information in the possession of the initiating party. On behalf of the initiating party, first and second tokens are generated, each of which represents some but not all of the confidential information. The first token is sent electronically via a nonsecure communication network from the initiating party to the verification-seeking party. The second token is sent electronically via a nonsecure communication network from the initiating party to the verifying party. Verification information is sent electronically via a nonsecure communication network from the verifying party to the verification-seeking party. The invention is useful, for example, in obtaining authorization of credit card transactions made via a nonsecure communication network, such as the INTERNET, while reducing the chance for credit card fraud.

Claims

1. A method for giving verification information for a transaction between an initiating party and a verification-seeking party, the verification information being given by a third, verifying party, based on confidential information in the possession of the initiating party, the method comprising:

on behalf of the initiating party, generating first and second tokens each of which represents some but not all of the confidential information,

sending the first token electronically via a nonsecure communication network from the initiating party to the verification-seeking party,

sending the second token electronically via a nonsecure communication network from the initiating party to the verifying party,

sending the first token electronically via a nonsecure communication network from the verification-seeking party to the verifying party,

verifying the confidential information at the verifying party based on the first and second tokens, and sending the verification information electronically via a nonsecure communication network from the verifying party to the verification-seeking party.

2. The method of claim 1 further comprising

storing, at the verifying party, at least some of the confidential information, and wherein

the verifying is done at the verifying party by comparing the information represented by the first and second tokens with at least some of the stored confidential information.

3. The method of claim 1 wherein the first and second tokens together represent all of the confidential information.

4. The method of claim 1 wherein the first and second tokens include tags identifying the first and second tokens as being related.

5. The method of claim 4 wherein the tags in the two tokens are identical.

6. The method of claim 4 further comprising generating the tags randomly.

7. The method of claim 4 wherein the verifying comprises associating the first and second tokens with each other based on the tags.

8. The method of claim 1 wherein the tokens include

pieces of the confidential information, and

an indication of the order of the two pieces in the confidential information.

9. The method of claim 1 wherein the two tokens are of essentially equal size.

10. The method of claim 1 wherein the first token and the second token are not sent from the initiating party one immediately after the other.

11. The method of claim 1 wherein the confidential information comprises an identification number.

12. The method of claim 1 wherein the confidential information comprises a credit card number.

13. The method of claim 12 further comprising sending additional non-confidential information related to the transaction from the initiating party to the verification-seeking party.

14. The method of claim 13 wherein the additional information comprises an expiration date of a credit card.

15. The method of claim 13 wherein the additional information comprises a purchase order.

16. The method of claim 1 wherein the transaction comprises a purchase, the initiating party is a consumer, the verifying party is a verification agent of a credit card company, and the verification-seeking party is a merchant.

17. The method of claim 1 further comprising sending additional non-confidential information related to the transaction from the initiating party to the verification-seeking party.

18. The method of claim 17 wherein the additional information comprises an expiration date of a credit card.

19. The method of claim 17 wherein the additional information comprises a purchase order.

20. A method for enabling a consumer to conduct a credit card transaction with a merchant via an nonsecure communication medium comprising:

sending a first token electronically via the communication medium from the consumer to the merchant, the first token including a piece of a credit number of the consumer and a tag that identifies the first token,

sending a second token electronically via the communication medium from the consumer to a verification agent, the second token including a piece of the consumer'"'"'s credit number and a tag that identifies the second token,

the pieces of the consumer'"'"'s credit number together incorporating all of the credit number,

the tags indicating an association of the two tokens with one another,

storing the consumer'"'"'s credit number at the verification agent,

sending the first token electronically via the communication medium from the merchant to the verification agent, and

at the verification agent;

associating the first and second tokens based on the tags,

deriving the credit number from the tokens, and

sending verification information from the verification agent to the merchant.

21. A method for giving verification information for a transaction between an initiating party and a responding party, the verification being given by a third, authorizing party, based on confidential information in the possession of the initiating party, the method comprising:

on behalf of the initiating party, generating first and second tokens each of which represents some but not all of the confidential information,

sending the first token electronically via a nonsecure communication network from the initiating party to the responding party,

sending the second token electronically via a nonsecure communication network from the initiating party to the authorizing party,

sending the first token electronically via a nonsecure network from the responding party to the authorizing party,

verifying the confidential information at the verifying party based on the first and second tokens, and sending the verification information electronically via a nonsecure communication network from the verifying party to the verification-seeking party.

22. A method for use in relation to providing verification information for a transaction between an initiating party and a verification-seeking party, the verification information being given by a third, verifying party, based on confidential information in the possession of the initiating party, the method comprising:

on behalf of the initiating party, generating first and second tokens each of which represents some but not all of the confidential information,

on behalf of the initiating party, sending the first and second tokens electronically via a nonsecure communication network,

collecting the first and second tokens at the verifying party,

verifying the confidential information at the verifying party based on comparing the first and second tokens, and

sending the verification information electronically via a nonsecure communication network from the verifying party to the verification-seeking party.

23. A method for providing a portion of confidential information from an initiating party to a receiving party comprising:

on behalf of the initiating party, generating first and second tokens each of which represents some but not all of the confidential information,

sending the first token electronically via a nonsecure communication network from the initiating party to the receiving party,

sending the second token electronically via a nonsecure communication network to a remote destination which is not related to the initiating party and the receiving party,

sending the second token electronically via a nonsecure communication network from the remote destination to the receiving party, and

recovering the confidential information at the receiving party based on comparing the first and second tokens.

24. A method for use in relation to providing verification information for a transaction, the verification information being based on confidential information, the method comprising:

on behalf of an initiating party, generating first and second tokens each of which represents some but not all of the confidential information,

sending the first token electronically via a communication network from the initiating party to a verification-seeking party,

sending the second token electronically via a communication network from the initiating party to a verifying party, and

sending the verification information electronically via a communication network from the verifying party to the verification-seeking party.