Method and apparatus for executing cryptographically-enabled letters of credit

• US 6,477,513 B1
• Filed: 04/03/1997
• Issued: 11/05/2002
• Est. Priority Date: 04/03/1997
• Status: Expired due to Term

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: Walker Digital LLC (Walker Innovation Inc. (f/k/a Patent Properties, Inc.))
• Inventors: Schneier, Bruce, Walker, Jay S.
• Primary Examiner(s): Trammell, James P.
• Assistant Examiner(s): Hayes, John W.
• Application Number:
  US08/832,832
• Time in Patent Office: 2,042 Days
• Field of Search: 705/1, 705/35, 705/39, 705/50, 705/53, 705/51, 705/67, 705/74, 705/76, 705/78, 705/38, 705/44, 380/1-59, 380/200-287, 713/155-157, 713/170, 713/175
• US Class Current: 705/76
• 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 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/0855 involving a third party
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• 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 20/401 Transaction verification

Abstract

A method and apparatus for executing electronic transactions using cryptographically-enabled accounts stores cryptographically-enabled account information and instructions, receives a cryptographically-encoded permission certificate, and processes the received permission certificate to execute the transactions.

Claims

1. A method for executing an electronic transaction, comprising:

transmitting a verification authority permission certificate from a trusted agent to a verification authority;

signing the transmitted verification authority permission certificate;

transmitting the signed verification authority permission certificate from the verification authority to the trusted agent to verify that a seller has performed conditions of a contract;

transmitting a withdrawal permission certificate from the trusted agent to the seller in response to receipt of the signed verification authority permission certificate;

transmitting the withdrawal permission certificate from the seller to a bank; and

transmitting funds from the bank to the seller in response to the bank receiving the withdrawal certificate.