System and method for secure presentment and payment over open networks

• US 6,081,790 A
• Filed: 03/20/1998
• Issued: 06/27/2000
• Est. Priority Date: 03/20/1998
• Status: Expired due to Term

• Current Assignee: Citibank (South Dakota) NA (Citigroup Incorporated)
• Original Assignee: Citibank (South Dakota) NA (Citigroup Incorporated)
• Inventors: Rosen, Sholom S.
• Primary Examiner(s): Peeso, Thomas R.
• Application Number:
  US09/045,244
• Time in Patent Office: 830 Days
• Field of Search: 705/44, 705/30, 705/34, 705/35, 705/39, 705/40, 380/21
• US Class Current: 705/40
• CPC Class Codes: G06Q 20/00 Payment architectures, schemes or protocols apparatus for performing or posting payment transactions G07F7/08, G07F19/00; electronic cash registers G07G1/12
• 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 20/367 involving electronic purses or money safes
• CPC Class Codes: G06Q 20/3821 Electronic credentials
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

A system for secure presentment and payment having a first electronic processing device and a second electronic processing device. The first processing device creates a presentment ticket from stored invoice data, and securely transmits the presentment ticket and the invoice data to the second processing device. The second processing device determines which invoices are to be paid and creates a corresponding remittance advice which it securely transmits to said first processing device. The first processing device creates a commercial payment ticket corresponding to the remittance advice and securely transmits it to the second processing device. The second processing device then securely transmits electronic money to the first processing device in an amount corresponding to that specified in the remittance advice.

Claims

1. A system for secure presentment and payment, comprising:

a merchant electronic processing device having at least one data processor, memory, and cryptographic means;

a customer electronic processing device having at least one data processor, memory, and cryptographic means;

wherein said merchant electronic processing device creates a presentment ticket from stored invoice data, and securely transmits said presentment ticket and said invoice data to said customer electronic processing device;

wherein said customer electronic processing device determines which invoices are to be paid and creates a corresponding remittance advice which it securely transmits to said merchant electronic processing device;

wherein said merchant electronic processing device creates a commercial payment ticket corresponding to said remittance advice and securely transmits said commercial payment ticket to said customer electronic processing device;

where said customer electronic processing device securely transmits electronic money to said merchant electronic processing device in an amount corresponding to that specified in said remittance advice.

2. The system of claim 1, wherein said invoice data includes at least one current invoice data and/or at least one past due notice data.

3. The system of claim 2, wherein said invoice data is provided to said merchant electronic processing device by an automated invoicing system.

4. The system of claim 1, wherein a digital signature is created from said invoice data and included in said presentment ticket.

5. The system of claim 4, where said digital signature is a group signature.

6. The system of claim 5, where said customer electronic processing device verifies the received presentment ticket and said digital signature.

7. The system of claim 1, where said merchant and customer electronic processing devices perform interim log updates after said customer electronic processing device receives said presentment ticket.

8. The system of claim 7, wherein said interim log updates record transaction data including data derived from said invoice data.

9. The system of claim 8, wherein said data derived from said invoice data is data in said presentment ticket.

10. The system of claim 7, where said merchant and customer electronic processing devices perform final log updates after said customer electronic processing device transmits said electronic money to said merchant electronic processing device.

11. The system of claim 1, wherein said customer processing device initiates a request to an automated accounts payable system to check if any invoice indicated in said invoice data has already been paid.

12. The system of claim 11, wherein when said accounts payable system identifies remittance data in its database corresponding to an invoice indicated in said invoice data, said corresponding remittance data and its corresponding commercial payment ticket are sent to said merchant electronic processing device for verification.

13. The system of claim 1, wherein said customer electronic processing device queries a programmed cash management function to determine which invoices are to be paid.

14. The system of claim 1, wherein said customer transaction device checks for sufficient electronic money to make a full payment and, when sufficient funds are not available, selects a subset of the presented invoices for payment.

15. The system of claim 14, wherein said selection is based on priorization information from a programmed cash management function.

16. The system of claim 1, wherein said remittance advice includes data from invoices selected to be paid.

17. The system of claim 16, wherein said merchant electronic processing device validates said remittance advice by comparisons to said invoice data.

18. The system of claim 1, wherein said commercial payment ticket includes a digital signature created from said remittance advice.

19. The system of claim 1, wherein said commercial payment ticket and said remittance advice are sent to an automated accounts payable system as proof of payment.

20. The system of claim 19, wherein said commercial payment ticket and said remittance advice are sent to an automated accounts receivable system to match outstanding invoices.

21. The system of claim 20, wherein unpaid invoice data is sent to said accounts payable system for setup.

22. The system of claim 21, wherein said presentment ticket is sent to said accounts receivable system for presentment verification.

23. A system for secure presentment and payment, comprising:

a merchant electronic transaction device including;

a first host having at least one processor and memory, and a first trusted agent and first money module having at least one processor and memory;

a customer electronic transaction device including;

a second host having at least one processor and memory, and a second trusted agent and second money module having at least one processor and memory;

wherein said first host sends invoice data to said first trusted agent;

wherein said first trusted agent creates a presentment ticket corresponding to said invoice data, and sends said presentment ticket to said second trusted agent;

wherein said second trusted agent verifies said presentment ticket, and sends a remittance advice, corresponding to said invoice data, to said first trusted agent;

wherein said first trusted agent verifies said remittance advice, creates a commercial payment ticket, and sends said commercial payment ticket to said second trusted agent; and

wherein said second money module sends electronic money to said first money module.

24. The system of claim 23, wherein said first and second trusted agents and said first and second money modules are fabricated as separate tamper-proof devices each having a microprocessor.

25. The system of claim 23, wherein said first trusted agent and said first money module are fabricated as a single tamper-proof device sharing a microprocessor and wherein said second trusted agent and said second money module are fabricated as a single tamper-proof device sharing a microprocessor.

26. The system of claim 25, wherein said first and second trusted agents and said first and second money modules communicate via cryptographically secure sessions.

27. The system of claim 23, wherein said second host creates said remittance advice and sends said remittance advice to said second trusted agent.

29. The method of claim 27, further comprising the steps of:

said merchant electronic processing device creating and sending a commercial payment ticket to said customer electronic processing device; and

said customer electronic processing device sending electronic money to said merchant electronic processing device.

28. A method for secure presentment, comprising the steps of:

a merchant electronic processing device receiving invoice data;

said merchant electronic processing device creating a presentment ticket based on said invoice data, and securely sending said presentment ticket to a customer electronic processing device; and

said customer electronic processing device verifying the validity of said presentment ticket and determining if any invoice is to be paid;

said customer electronic processing device creating a remittance advice based on the result of said determining step, and securely sending said remittance advice to said merchant electronic processing device; and

said merchant electronic processing device validating said remittance advice.