Tokenless electronic transaction system

• US 6,594,376 B2
• Filed: 04/01/2002
• Issued: 07/15/2003
• 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, Hoffman, Ned, Pare, Jr., David Ferrin
• Primary Examiner(s): Patel, Jayanti K.
• Assistant Examiner(s): Azarian, Seyed
• Application Number:
  US10/114,587
• Publication Number:
  US 20020174067A1
• Time in Patent Office: 470 Days
• Field of Search: 382/115, 382/114, 382/116, 382/119, 382/123, 382/126, 382/138, 382/139, 382/135, 382/137, 382/140, 382/175, 382/100, 379/88.02, 379/127.01, 379/189, 713/186, 713/185, 705/39-40, 235/380, 340/5.86, 902/3-5, 902/7-12, 902/22-23
• US Class Current: 382/115
• 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 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• 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 20/26 Debit schemes, e.g. "pay now"
• 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 20/401 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 30/06 : Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/04 : Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06V 40/1365 : Matching; Classification
• CPC Class Codes: G07C 9/32 : in combination with an identity check
• CPC Class Codes: G07C 9/33 : by means of a password
• 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 63/0442 : wherein the sending and receiving network entities apply asymmetric encryption, i.e. different keys for encryption and decryption cryptographic mechanisms or cryptographic arrangements for public-key encryption H04L9/30
• 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 63/12 : Applying verification of the received information cryptographic mechanisms or cryptographic arrangements for data integrity or data verification H04L9/32

Abstract

The invention as described provides a method and system for tokenless authorization of commercial transactions between a buyer and a seller using a computer system. The method comprises the steps of registering a buyer, wherein the buyer registers with the computer system a PIN, at least one registration biometric sample, and at least one buyer financial account. The method also includes a seller registration step, wherein the seller registers with the computer system at least one seller financial account. In a proposal step, the seller offers a proposed commercial transaction to the buyer usually comprising price information. If the buyer accepts the seller'"'"'s proposal, in an acceptance step, the buyer signals his/her acceptance by adding to the proposed commercial transaction the buyer'"'"'s personal authentication information comprising a PIN and at least one bid biometric sample which is obtained from the buyer'"'"'s person. In a transmission step, the bid biometric sample and PIN are forwarded to the computer system. The computer system compares the bid biometric sample with registration biometric samples for producing either a successful or failed identification of the buyer in a buyer identification step. Upon determination of sufficient resources, a financial account of the buyer is debited and a financial account of the seller is credited, in a payment step. Therefore, a commercial transaction is conducted without the buyer having to use any portable man-made memory devices such as smartcards or swipe cards.

Claims

1. A tokenless authorization system for commercial transactions between a buyer and a seller using a computer system, comprising:

a. means for buyer registration, wherein the buyer registers with the computer system a PIN, at least one registration biometric sample, and at least one buyer financial account;

b. means for making a proposal, wherein the seller offers a proposed commercial transaction to the buyer, the proposed commercial transaction comprising price information;

c. means for acceptance, wherein the buyer signals acceptance of the seller'"'"'s proposed commercial transaction by adding to the proposed commercial transaction the buyer'"'"'s personal authentication information comprising a pin and at least one bid biometric sample, wherein the bid biometric sample is obtained from the buyer'"'"'s person;

d. means for transmission, wherein the bid biometric sample and pin are forwarded to the computer system;

e. means for buyer identification, wherein the computer system compares the bid biometric sample with registration biometric samples for producing either a successful or failed identification of the buyer; and

f. means for payment, wherein a financial account of the buyer is debited and a financial account of the seller is credited, wherein a commercial transaction is conducted without the buyer having to use any smartcards or swipe cards.

2. The device of claim 1 wherein the means for buyer identification is accomplished preferably in less than about 2 seconds, whereby the entire commercial transaction is completed within a commercially acceptable timeframe.

3. The device of claim 1 further comprising means for buyer resource determination, wherein after successful identification of the buyer, a determination is made if the buyer has sufficient resources to pay for the transaction.

4. The device of claim 3 wherein the means for buyer registration includes the buyer registering at least one buyer financial account and assigning an account index code to each buyer financial account, and the means for acceptance includes the buyer adding the account index code to the commercial transaction message, wherein the account index code further comprises one or more alphanumeric characters.

5. The device of claim 4 wherein the means for buyer resource determination includes the computer system using the account index code that was added to the commercial transaction message to select the corresponding buyer financial account.

6. The device of claim 5 wherein the means for registration further comprises means for assigning an account index name to an account index code.

7. The device of claim 6 further comprising means for account name display, wherein a list of accounts with their account index names can be retrieved and displayed to the buyer after a successful identification, wherein no transaction needs to take place if it is desired that the account index names be retrieved.

8. The device of claim 1 wherein the means for payment includes means for creating a credit authorization draft detailing an agreement to pay the seller from the buyer'"'"'s financial account up to an amount specified during the proposal step, whereby transactions can be conducted when the exact amount to be transferred is not known at the time of authorization or when a deposit is required but the account may not ever be debited.

9. The device of claim 3 wherein the means for resource determination and the means for payment include the computer system communicating with one or more external computer systems in order to perform any combination of the following steps:

a resource determination or construction of a credit authorization draft.

10. The device of claim 1 further comprising means for authentication, wherein a private code, distinct from the PIN and not used to gain access to the computer system, is gathered from the buyer during the buyer registration step and presented to only the buyer during the presentation step, whereby the buyer is assured that the authentic computer system was used to process the commercial transaction.

11. The device of claim 1 wherein the price information comprises any combination of the following:

a list of goods and services, a seller name, a date and time, a location, or an invoice number.

12. The device of claim 1 wherein the buyer is remote from the seller and communicates with the seller using a computer network.

13. The device of claim 12 wherein the computer network is any one of the group comprising the Internet, a private intranet, a telephone network, or a cable TV network.

14. The device of claim 1 wherein the means for acceptance further comprises means for the buyer to enter an amount that is the sum of a cash back value to the proposed transaction amount.

15. The device of claim 1 further comprising means for buyer re-registration checking, wherein the buyer'"'"'s registration biometric samples are compared against previously designated biometric samples of certain buyers wherein if a match occurs, the computer system is alerted to the fact that the buyer has re-registered, whereby buyers who perpetrate fraud on the system can be automatically identified from their biometrics alone if and when they re-register.

16. The device of claim 1 wherein the biometric sample comprises of one of the following:

a fingerprint, a retinal image, and a voice print.

17. The device of claim 1 further comprising means for biometric theft resolution, wherein the PIN of the buyer is changed whenever the buyer'"'"'s biometric sample is determined to have been stolen.

18. The device of claim 1 further comprising means for presentation, wherein any combination of the results of steps a) through g) are presented to the buyer or seller.

19. The device of claim 1 for storing in the computer system an identification for at least one seller financial account.

20. The device of claim 1 in which the computer system includes a memory organized to store multiple registration biometric samples in a plurality of biometric baskets, each basket associated with a different PIN, each basket being sized to contain registration biometric samples for more than one buyer.

21. A tokenless authorization system for commercial transactions between a buyer and a seller using a computer system, comprising:

a. means for buyer registration, wherein the buyer registers with the computer system a PIN, at least one registration biometric sample, and at least one buyer financial account;

b. means for registering in the computer system at least one seller financial account;

c. means for making a proposal, wherein the seller offers a proposed commercial transaction to the buyer, the proposed commercial transaction comprising price information, wherein the buyer is remote from the seller and communicates with the seller using a computer network;

d. means for acceptance, wherein the buyer signals acceptance of the seller'"'"'s proposed commercial transaction by adding to the proposed commercial transaction the buyer'"'"'s personal authentication information comprising a PIN and at least one bid biometric sample, wherein the bid biometric sample is obtained from the buyer'"'"'s person;

e. means for transmission, wherein the bid biometric sample and PIN are forwarded to the computer system;

f. means for buyer identification, wherein the computer system compares the bid biometric sample with registration biometric samples for producing either a successful or failed identification of the buyer; and

g. means for payment, wherein upon determination of sufficient resources, a financial account of the buyer is debited and a financial account of the seller is credited, wherein a commercial transaction is conducted without the buyer having to use any smartcards or swipe cards.

22. A tokenless authorization system for commercial transactions between a buyer and a seller using a computer system, comprising:

a. means for buyer registration, wherein the buyer registers with the computer system a PIN, at least one registration biometric sample, and at least one buyer financial account, wherein the buyer financial account is assigned an account index code;

b. means for storing in the computer system an identification of at least one seller financial account;

c. means for making a proposal, wherein the seller offers a proposed commercial transaction to the buyer, the proposed commercial transaction comprising price information;

d. means for acceptance, wherein the buyer signals acceptance of the seller'"'"'s proposed commercial transaction by adding to the proposed commercial transaction the buyer'"'"'s personal authentication information comprising a PIN and at least one bid biometric sample, wherein the bid biometric sample is obtained from the buyer'"'"'s person;

e. means for transmission, wherein the bid biometric sample and PIN are forwarded to the computer system;

f. means for buyer identification, wherein the computer system compares the bid biometric sample with registration biometric samples for producing either a successful or failed identification of the buyer; and

g. means for payment, wherein upon determination of sufficient resources, a financial account of the buyer is debited and a financial account of the seller is credited, wherein a commercial transaction is conducted without the buyer having to use any smartcards or swipe cards.