Methods and systems for carrying out directory-authenticated electronic transactions including contingency-dependent payments via secure electronic bank drafts
First Claim
1. A computer-implemented method of carrying out an electronic transaction that includes a contingency-dependent payment via a secure electronic draft, comprising the steps of:
- establishing a secure computer site that is controlled by a bank and that is accessible only to authenticated parties to the transaction, the site being configured to provide a description of a contingency and to include an option to remove the contingency, the removal of the contingency being a precondition to the bank releasing payment on the draft to a payee of the draft;
authenticating each party to the draft requesting access to the computer site by encrypting at least a portion of an identification information provided by the requesting party over a secure channel and successfully matching the encrypted identification information with a stored encrypted identifier that is unique to the requesting party, and releasing payment on the draft to the payee only when a drawer of the draft is successfully authenticated by the bank and when the option to remove the contingency is timely exercised by an authenticated party that is authorized to remove the contingency.
3 Assignments
0 Petitions
Accused Products
Abstract
Disclosed herein are computer-implemented methods and systems for securely carrying out electronic transactions including electronic drafts, wherein payment on at least one of the drafts is contingent upon the removal of an associated contingency. The method may include steps of establishing a secure computer site accessible only by authenticated parties to the transaction and by any authenticated contingency approver. The site includes a representation of the transaction that includes a representation of each of the plurality of drafts and an option to remove any contingencies associated therewith. Parties and contingency approvers requesting access to the computer site are authenticated by encrypting identification information provided by the requesting party or contingency approver over a secure channel and successfully matching the encrypted identification information with an encrypted identifier that is stored by a bank, the encrypted identifier being unique to the requesting party or contingency approver. Payment on the constituent drafts of the transaction are released by the bank only when the option to remove each contingency associated with the draft is timely exercised by an authenticated party or authenticated contingency remover that is authorized to remove the contingency. Complex transactions may thereby be carried out securely, remotely and without compromising personal and/or financial information. The invention obviates the need to disseminate identification surrogates such as credit card numbers over public networks as well as the need to rely upon in-person holographic signatures on paper documents for authentication purposes.
278 Citations
45 Claims
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1. A computer-implemented method of carrying out an electronic transaction that includes a contingency-dependent payment via a secure electronic draft, comprising the steps of:
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establishing a secure computer site that is controlled by a bank and that is accessible only to authenticated parties to the transaction, the site being configured to provide a description of a contingency and to include an option to remove the contingency, the removal of the contingency being a precondition to the bank releasing payment on the draft to a payee of the draft;
authenticating each party to the draft requesting access to the computer site by encrypting at least a portion of an identification information provided by the requesting party over a secure channel and successfully matching the encrypted identification information with a stored encrypted identifier that is unique to the requesting party, and releasing payment on the draft to the payee only when a drawer of the draft is successfully authenticated by the bank and when the option to remove the contingency is timely exercised by an authenticated party that is authorized to remove the contingency. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10)
electronically notifying each party to the transaction of their requested participation in the transaction, and canceling the transaction unless each party to the transaction accesses the computer site, acknowledges receipt of the electronic notification, is authenticated and indicates their willingness to participate in the transaction.
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7. The method of claim 6, wherein a fee is assessed upon at least releasing payment and canceling the transaction.
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8. The method of claim 1, wherein each encrypted identifier includes an ID and encrypted password pair, the pair being stored in a data structure controlled by the bank and managed by Directory software.
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9. The method of claim 8, wherein the identification information for each party to the transaction includes an ID for that party and an identification of the bank in which the encrypted identifier for that party is stored.
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10. The method of claim 9, wherein the bank in which the encrypted identifier is stored carries out the steps of requesting a password corresponding to the provided identification information, encrypting the requested password and matching the ID and encrypted password with a stored encrypted identifier.
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11. A computer-implemented method of securely carrying out an electronic transaction including a plurality of electronic drafts, a payment on at least one of the drafts being contingent upon removal of an associated contingency, the method comprising the steps of:
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establishing a secure computer site that is controlled by a trusted entity and that is accessible only by authenticated parties to the transaction and by any authenticated contingency approver, the site being configured to provide a representation of each of the plurality of drafts and an option to remove any contingencies associated therewith;
authenticating parties and any contingency approver requesting access to the computer site by encrypting at least a portion of an identification information provided by the requesting party or contingency approver over a secure channel and successfully matching the encrypted identification information with a stored encrypted identifier, the stored encrypted identifier being unique to the requesting party or contingency approver, and releasing payment on a draft only when a drawer of the draft is authenticated and when the option to remove each contingency associated with the draft is timely exercised by an authenticated party or authenticated contingency remover that is authorized to remove the contingency. - View Dependent Claims (12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25)
electronically notifying each party to the transaction and each contingency approver of their requested participation in the transaction, and canceling the transaction unless each party to the transaction and each contingency approver acknowledges participation in the transaction by accessing the computer site, becomes authenticated and indicates their willingness to participate in the transaction.
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18. The method of claim 11, further comprising the step of canceling the transaction and returning at least a portion of each payment released on each of the plurality of drafts of the transaction if any contingency associated with the transaction is not timely removed by an authenticated party or by an authenticated contingency remover that is authorized to remove the contingency.
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19. The method of claim 11, wherein the trusted entity includes an entity having a financial and fiduciary relationship with at least one of the parties to the transaction.
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20. The method of claim 19, wherein the trusted entity is a bank.
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21. The method of claim 11, wherein the identification information is unrelated to data associated with a payment instrument.
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22. The method of claim 21, wherein the data associated with the payment instrument is a credit card number.
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23. The method of claim 11, wherein each encrypted identifier includes an ID and encrypted password pair, the pair being stored in data structure controlled by the trusted party and managed by Directory software.
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24. The method of claim 23, wherein the identification information for each party to the transaction and each contingency approver includes an ID and an identification of the trusted party in which the encrypted identifier for that party or contingency approver is stored.
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25. The method of claim 24, wherein the trusted party in which the encrypted identifier is stored carries out the steps of requesting a password corresponding to the provided identification information, encrypting the requested password and matching the ID and encrypted password with a stored encrypted identifier.
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26. A machine-readable medium having data stored thereon representing sequences of instructions which, when executed by one or more computers coupled to a secure network, causes at least one of said computers to perform the steps of:
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establishing a secure computer site that is controlled by a bank and that is remotely accessible only by authenticated parties to the transaction and by any authenticated contingency approver over the secure network, the site including a representation of the transaction that includes a representation of each of the plurality of drafts and an option to remove any contingencies associated therewith;
authenticating parties and any contingency approver requesting access to the computer site by encrypting at least a portion of an identification information provided by the requesting party or contingency approver over a secure channel and successfully matching the encrypted identification information with an encrypted identifier that is stored by a bank, the encrypted identifier being unique to the requesting party or contingency approver, and releasing payment on a draft of the transaction only when a drawer of the draft is authenticated and when the option to remove each contingency associated with the draft is timely exercised by an authenticated party or authenticated contingency remover that is authorized to remove the contingency. - View Dependent Claims (27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38)
electronically notifying each party to the transaction and each contingency approver of their requested participation in the transaction, and canceling the transaction with notice to each party unless each party to the transaction and each contingency approver acknowledges participation in the transaction by accessing the computer site, becomes authenticated and indicates their willingness to participate in the transaction.
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33. The medium of claim 26, further comprising the step of canceling the transaction with notice to each party and returning at least a portion of each payment released on each of the plurality of drafts of the transaction if any contingency associated with the transaction is not timely removed by an authenticated party or by an authenticated contingency remover that is authorized to remove the contingency.
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34. The medium of claim 26, wherein the identification information is unrelated to data associated with a payment instrument.
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35. The medium of claim 34, wherein the data associated with the payment instrument is a credit card number.
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36. The medium of claim 26, wherein each encrypted identifier includes an ID and encrypted password pair, the pair being stored in a data structure controlled by the bank and managed by Directory software.
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37. The medium of claim 36, wherein the identification information for each party to the transaction and each contingency approver includes an ID for that party and an identification of the bank in which the encrypted identifier for that party or contingency approver is stored.
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38. The medium of claim 37, wherein the bank in which the encrypted identifier is stored carried out the steps of requesting a password corresponding to the provided identification information, encrypting the requested password and matching the ID and encrypted password with a stored encrypted identifier.
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39. A method of carrying out secure electronic transactions over the Internet, comprising the steps of:
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establishing a secure network linking a plurality of participating banks;
storing an encrypted identifier for each participating account-holding customer in a customer'"'"'s home bank, the customer'"'"'s home bank being that bank of the plurality of banks in which the customer maintains an account;
linking each encrypted identifier to the customer'"'"'s account;
requiring that each customer having caused an electronic draft to be presented to one of the plurality of banks be authenticated prior to releasing payment on the draft, a customer being authenticated when identification information presented by the customer matches the encrypted identifier stored at the customer'"'"'s home bank, the encrypted identification information including an identification of the customer'"'"'s home bank. - View Dependent Claims (40, 41, 42, 43, 44, 45)
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Specification