Tokenless biometric electronic check transactions

• US 6,581,042 B2
• Filed: 05/03/2001
• Issued: 06/17/2003
• Est. Priority Date: 11/28/1994
• Status: Expired due to Fees

• Current Assignee: YT Acquisition Corp.
• Original Assignee: Indivos Corporation (Solidus Networks Incorporated)
• Inventors: Lee, Jonathan Alexander, Pare, Jr., David Ferrin, Hoffman, Ned
• Primary Examiner(s): Stamber, Eric W.
• Assistant Examiner(s): Alvarez, Raquel
• Application Number:
  US09/848,867
• Publication Number:
  US 20010029493A1
• Time in Patent Office: 775 Days
• Field of Search: 705/39, 705/40, 705/26, 705/35, 705/44, 705/53, 705/75, 705/78, 380/24, 380/25, 380/23, 380/49, 380/229, 380/232
• US Class Current: 705/40
• CPC Class Codes: G01F 19/005 for semi-liquid, e.g. fat
• CPC Class Codes: G06F 18/28 Determining representative reference patterns, e.g. by averaging or distorting; Generating dictionaries
• CPC Class Codes: G06F 21/32 using biometric data, e.g. fingerprints, iris scans or voiceprints
• CPC Class Codes: G06F 21/554 involving event detection and direct action
• CPC Class Codes: G06F 21/83 input devices, e.g. keyboards, mice or controllers thereof
• CPC Class Codes: G06F 21/86 Secure or tamper-resistant housings
• CPC Class Codes: G06F 2211/008 Public Key, Asymmetric Key, Asymmetric Encryption
• CPC Class Codes: G06F 2221/2117 User registration
• 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 20/04 Payment circuits
• CPC Class Codes: G06Q 20/0425 the cheque being electronic only
• 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 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/18 involving self-service terminals [SST], vending machines, kiosks or multimedia terminals
• CPC Class Codes: G06Q 20/341 Active cards, i.e. cards including their own processing means, e.g. including an IC or chip
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• 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 20/4014 : Identity check for transactions
• CPC Class Codes: G06Q 20/40145 : Biometric identity checks
• CPC Class Codes: G06Q 20/4097 : using mutual authentication between devices and transaction partners
• CPC Class Codes: G06Q 30/02 : Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/08 : Auctions
• CPC Class Codes: G06Q 40/00 : Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06V 40/1365 : Matching; Classification
• CPC Class Codes: G07C 9/32 : in combination with an identity check
• CPC Class Codes: G07C 9/37 : using biometric data, e.g. fingerprints, iris scans or voice recognition
• CPC Class Codes: G07F 19/201 : Accessories of ATMs
• CPC Class Codes: G07F 19/207 : Surveillance aspects at ATMs
• CPC Class Codes: G07F 7/1008 : Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system
• 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 63/04 : for providing a confidential data exchange among entities communicating through data packet networks
• CPC Class Codes: H04L 63/0428 : wherein the data content is protected, e.g. by encrypting or encapsulating the payload
• CPC Class Codes: H04L 63/0823 : using certificates cryptographic mechanisms or cryptographic arrangements for entity authentication involving certificates H04L9/3263
• 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 63/0861 : using biometrical features, e.g. fingerprint, retina-scan cryptographic mechanisms or cryptographic arrangements for entity authentication using biological data H04L9/3231
• CPC Class Codes: H04L 63/123 : received data contents, e.g. message integrity

Abstract

A tokenless authorization of an electronic check between a payor and a payee using an electronic identicator and at least one payor bid biometric sample is described. The method comprises a payor registration step, wherein the payor registers with an electronic third party identicator at least one registration biometric sample, and at least one payor checking account data. An electronic financial transaction is formed between the payor and the payee, comprising at least one payor bid biometric sample, wherein the bid biometric sample is obtained from the payor'"'"'s person, in a transaction formation step. Preferably in one transmission step the payor bid biometric sample is electronically forwarded to the electronic identicator. A comparator engine or the identification module of the electronic identicator compares the bid biometric sample with at least one registered biometric sample for producing either a successful or failed identification of the payor. Once the electronic identicator successfully identifies the payor, the payor'"'"'s previously registered checking account data is retrieved, and a biometric-based authorization of an electronic check is authorized without the payor presenting any personalized man-made tokens such as paper checks or magnetic swipe cards.

Claims

1. A method for tokenless authorization of an electronic check between a payor and a payee using an electronic identicator and at least one payor bid biometric sample, said method comprising the steps of:

(a) a payor registration step, wherein the payor registers with an electronic identicator at least one registration biometric sample, and at least one payor checking account data;

(b) a transaction formation step, wherein an electronic financial transaction is formed between the payor and the payee, comprising at least one payor bid biometric sample, wherein the bid biometric sample is obtained from the payor'"'"'s person;

(c) at least one transmission step, wherein the payor bid biometric sample is electronically forwarded to the electronic identicator;

(d) a payor identification step, wherein the electronic identicator compares the payor bid biometric sample with at least one registered biometric sample for producing either a successful or failed identification of the payor;

(e) an account retrieval step, wherein the payor'"'"'s previously registered checking account data is retrieved;

wherein upon successful identification of the payor, a biometric-based authorization of an electronic check is authorized using the payor'"'"'s previously registered checking account data without the payor presenting any personalized man-made tokens including paper checks and magnetic swipe cards to transfer funds from the payor'"'"'s checking account to a payee financial account.

2. The method of claim 1 further comprising the inclusion of a transaction amount in the transaction formation step.

3. The method of claim 1 further comprising a display step, in which the payor'"'"'s previously registered checking account data is electronically displayed to the payor.

4. The method of claim 1 further comprising a forwarding step, in which the payor'"'"'s previously registered checking account data is electronically forwarded to a financial transaction processor.

5. The method of claim 1 wherein the electronic identicator is operated by a third party.

6. The method of claim 1 wherein the payor registration step further comprises registering a payor personal identification number with the electronic identicator.

7. The method of claim 1 further comprising a payor resource determination step, wherein it is determined if the payor'"'"'s checking account has sufficient resources to be debited for the transaction amount.

8. The method of claim 1 further comprising a payor account selection step, wherein after the payor has been successfully identified in the payor identification step, the tokenless authorization system presents at least one checking account which was registered by the payor with the tokenless authorization system for selection of one of the checking accounts by the payor for debiting.

9. The method of claim 1 further comprising a transaction payment step, wherein a transaction amount is debited from a payor'"'"'s checking account.

10. The method of claim 9, wherein the transaction amount is credited to a payee'"'"'s financial account.

11. The method of claim 1 wherein the registration step further comprises registering a payor private code with the electronic third party identicator, which is distinct from a personal identification number and not used in the payor identification step, wherein the private code is displayed to the payor to validate that the authentic electronic third party identicator has processes the transaction.

12. The method of claim 7 wherein the payor resource determination step further comprises the tokenless authorization system communicating with at least one external computer.

13. The method of claim 9 wherein the transaction payment step further comprises the tokenless authorization system communicating with at least one external computer.

14. The method of claim 2 wherein the transaction amount comprises price information, a list of goods and services, a payee name, a date or time, a location, or an invoice number.

15. The method of claim 1 further comprising a transaction acceptance step in which the payor approves the transaction.

16. The method of claim 15 wherein the transaction acceptance step further comprises the payor entering a new transaction amount, which is the sum of a cash back amount and the transaction amount, for the financial transaction.

17. The method of claim 9 wherein the transaction payment step further comprises the payor designating a future date on which the transaction amount is to be deducted from the payor'"'"'s checking account and credited to the payee'"'"'s financial account.

18. The method of claim 1 further comprising a payor re-registration step, wherein the user'"'"'s registration biometric samples are compared against previously designated biometric samples wherein if a match occurs, the computer system is alerted to the fact that the payor has re-registered with the tokenless authorization system.

19. The method of claim 1 wherein the biometric sample comprises of one of the following:

a fingerprint, a facial scan, a retinal image, an iris scan, and a voice print.

20. The method of claim 6 further comprising a biometric theft resolution step, wherein the payor'"'"'s personal identification number is changed whenever the payor'"'"'s biometric sample is determined to have been fraudulently duplicated.

21. The method of claim 9 further comprising a re-presentation step, wherein upon return of the electronic check, the electronic check is automatically re-presented for debiting the checking account of the payor.

22. The method of claim 1 wherein during the payor registration step, the payor registers at least one payor checking account and assigns an account index code to each payor checking account, and during an acceptance step the user adds the account index code to the financial transaction, wherein the account index code further comprises one or more alphanumeric characters.

23. A tokenless electronic check authorization device for transferring funds from a payor checking account to a payee financial account, said device comprising:

(a) a computer data processing center further comprising data bases wherein the payor registers a registration biometric sample;

(b) a party identification apparatus having a biometric sensor for input of a biometric sample;

(c) communication lines for transmission of a registration and bid biometric sample obtained by the party identification apparatus from the payor'"'"'s person to the data processing center;

(d) a comparator engine for comparing a bid biometric sample to at least one registration biometric sample; and

(e) an execution module for authorizing transfer of a transaction amount from the payor checking account to a payee financial account upon successful identification of the payor, wherein no man made memory devices such as a credit/debit card, smartcard or a paper check is used by the payor to conduct the financial transaction.

24. The authorization device of claim 23 wherein the payor registration biometric sample is associated with a personal identification number.

25. The authorization device of claim 23 wherein the execution module determines if the payor'"'"'s checking account has sufficient resources to be debited for the transaction amount.

26. The authorization device of claim 23 further comprising an account selector module, wherein after the payor has been successfully identified, the authorization device presents at least one checking account which was registered by the payor with the authorization device for selection of one of the checking accounts by the payor for debiting.

27. The authorization device of claim 23 wherein the execution module debits the transaction amount from a payor'"'"'s checking account.

28. The authorization device of claim 27, wherein the execution module credits the transaction amount to the payee'"'"'s financial account.

29. The authorization device of claim 23 further comprising an authorization device identification means wherein the payor registers a private code with the authorization device, which is distinct from a personal identification number and not used to identify the payor, wherein the private code is displayed to the payor to validate that the authentic authorization device has processed the financial transaction.

30. The authorization device of claim 23 wherein a subset of the payor registration biometric samples are stored in a payor re-registration database, which the comparator engine compares a payor'"'"'s registration biometric samples to, wherein if a match occurs, the authorization system is alerted to the fact that the payor has re-registered with the tokenless authorization system.

31. The authorization device of claim 23 further comprising a display means for displaying information to the payor.

32. The authorization device of claim 31 wherein the display means is a point-of-sale terminal.

33. The authorization device of claim 31 wherein the display means is a party identification apparatus.

34. The authorization device of claim 23 wherein the execution module is not co-located with the electronic identicator.

35. The authorization device of claim 23 wherein the execution module is operated by a third party and communicates with the electronic identicator via communication lines.

36. The authorization device of claim 23 wherein the execution module consists of communicating with a financial transaction processor.

37. The authorization device of claim 23 wherein the electronic identicator is operated by a third party.