E-commerce system and method of operation enabling a user to conduct transactions with multiple retailers without certification and/or trusted electronic paths

• US 6,701,303 B1
• Filed: 12/23/1999
• Issued: 03/02/2004
• Est. Priority Date: 12/23/1999
• Status: Expired due to Term

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: International Business Machines Corporation
• Inventors: Stern, Edith H., Willner, Barry E., Dunn, James M.
• Primary Examiner(s): Trammell, James P.
• Assistant Examiner(s): HEWITT II, CALVIN L
• Application Number:
  US09/471,361
• Time in Patent Office: 1,531 Days
• Field of Search: 705/1, 705/50, 705/51, 705/52, 705/53, 705/64, 705/67, 705/80, 705/26, 705/39, 705/75
• US Class Current: 705/75
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/023 the neutral party being a clearing house
• 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 20/3674 involving authentication
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 20/401 Transaction verification
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 30/0633 Lists, e.g. purchase orders, compilation or processing

Abstract

An E-commerce system enables a user to conduct transactions with a retailer via a network, typically the Internet without certification or trusted paths. The user is a customer of a financial institution coupled to the network. The institution serves as an intermediary in electronic transactions conducted between end user and retailer. End user and retailer initiate transactions in an Internet session. User selects as one payment option a “check” or data messages as an intent to pay for the purchases without authentication of one another. Retailer prepares and submits a request for payment directly to the financial institution. After the retailer and financial institution exchange digital certificates, the financial institution records the transactions in the user'"'"'s account as authorized for payment. The user is provided a list of authorized transactions for approval or rejection. Upon approval by the user, payment is made to the retailer by the institution.

Claims

1. An E-commerce system for conducting electronic transactions comprising:

at least one end user coupled to open distributed information network or Internet for conducting electronic transactions;

at least one retailer coupled to the Internet for conducting electronic transactions with multiple users through a server on the Internet;

a financial institution coupled to the network and serving as an independent intermediary in electronic transactions conducted between the end user and the retailer;

means for conducting end user authorized electronic transactions for purchases made by the end user from the retailer via an Internet session and selecting as one option a “

check”

or data messages as an intent to pay for the purchases by the user the end user or the retailer authenticating one another;

means for preparing a request for payment by the retailer for the purchases made by the end user and submitting the request directly to the financial institution; and

means providing the end user a list of the end user authorized transactions for approval or rejection whereby approval of the authorized transaction authorizes payment to the retailer and rejection erases the transaction from the list.

2. The Ecommerce system of claim 1 further comprising:

means for providing the user with a financial institution UBID as an account designation for conducting an electronic transaction with a retailer via a an Internet session.

3. The Ecommerce system of claim 2 further comprising:

means for providing the UBID and purchase information to the financial institution as a request for payment in behalf of the retailer for purchases selected for delivery to the end user.

4. The Ecommerce system of claim 1 further comprising:

means for storing the list for payments in the financial institution until approved by the end user.

5. The Ecommerce system of claim 4 farther comprising:

means for approving or rejecting the list for payment by the user at the financial institution.

6. The Ecommerce system of claim 4 further comprising:

a retailer financial institution serving the retailer as an intermediary between the financial institution and the retailer for end user authorized electronic transactions conducted between the end user and the retailer for purchases made by the end user from the retailer using data messages in an Internet session.

7. The Ecommerce system of claim 1 further comprising:

at least one certificate authority coupled to the distributed information system for providing digital certificates to the financial institution and the retailer.

8. The Ecommerce system of claim 7 further comprising:

means for exchanging digital certificates solely between the financial institution and the retailer prior to or as a part of conducting electronic transactions between the end user and the retailer for purchases made by the end user from the retailer using a digital message or check via an Internet session.

9. The Ecommerce system of claim 8 further comprising:

means for issuing data messages by the end user for the purchases made by the end user from the retailer via an Internet session.

10. The Ecommerce system of claim 9 further comprising:

means for presenting the data messages to the financial institution by the retailer as request for payments for the purchases made by the end user from the retailer via an Internet session.

11. The Ecommerce system of claim 10 further comprising:

means for storing the request of checks for payments in the financial institution for approval or rejection by the end user before payment is made to the retailer by the financial institution.

12. The Ecommerce system of claim 1 further comprising:

means providing immediate authorization of payment by the financial institution to the retailer for purchases made by the user from the retailer, after the financial institution and the retailer exchange digital certificates and approval by the end user.

13. The Ecommerce system of claim 1 wherein the network is the Internet.

14. The Ecommerce system of claim 1 wherein the server is a web server.

15. The Ecommerce system of claims 1 wherein the end user is coupled to the network through a browser.

16. In an Ecommerce system including at least one end user coupled to at least one retailer and a financial institution serving as an intermediary for the retailer and the end user through an open distributed information network or Internet, a method for conducting secure electronic transactions between the end user and the retailer without digital certificates and/or secure communication paths, comprising the steps of:

providing the user with a financial institution UBID conducting an electronic transaction with a retailer via a network session;

providing the UBID and end user authorized electronic transactions for purchases made by the end user to the financial institution as a request for payment in behalf of the retailer; and

providing the end user a list of the end user authorized electronic transactions for approval or rejection whereby approval of the authorized electronic transaction authorizes payment to the retailer and rejection erases the transaction from the list.

17. The method of claim 16 further comprising the step of:

establishing a retailer financial institution serving the retailer as an intermediary between the financial institution and the retailer for the end user authorized electronic transactions conducted between the end user and the retailer for purchases made by the end user from the retailer.

18. The method of claim 16 further comprising the step of:

establishing at least one certificate authority coupled to the distributed information system for providing digital certificates to the financial institution and the retailer.

19. The method of claim 18 further comprising the step of:

exchanging digital certificates solely between the financial institution and the retailer prior to or as a part of conducting electronic transactions between the end user and the retailer for purchases made by the end user from the retailer.

20. The method of claim 16 further comprising the step of:

issuing data messages by the end user for the purchases made by the end user from the retailer.

21. The method of claim 16 further comprising the step of:

presenting data messages to the financial institution as requests for payments by the retailer for the purchases made by the end user from the retailer.

22. The method of claim 21 further comprising the step of:

storing the request for payments in the financial institution for approval or rejection by the end user before payment is made to the retailer.

23. The method of claim 16 further comprising the step of:

providing immediate authorization of payment by the financial institution to the retailer for purchases made by the user from the retailer after the financial institution and the retailer exchange digital certificates and approval by the end user.

24. The method of claim 16 wherein the network is the Internet.

25. The method of claim 16 wherein the server is a web server.

26. The method of claim 16 wherein the end user is coupled to the network through a browser.

27. An article of manufacturing comprising:

a program medium, executable in a computer system, for conducting secure electronic transactions between an end user and a retailer without digital certificates and/or secure communication paths in an Ecommerce system including at least one end user coupled to at least one retailer and a financial institution through a server in an open distributed information network or Internet, comprising;

program instructions in the program medium for providing the user with a financial institution UBID for authenticating the user in conducting an electronic transaction with a retailer;

program instructions in the program medium for providing the UBID and end user authorized electronic transactions purchases made by the end user to the financial institution as a request for payment in behalf of the retailer; and

program instruction in the medium providing the end user a list of the end user authorized electronic transactions for approval or rejection whereby approval of the authorized electronic transaction authorizes payment to the retailer and rejection erases the transaction from the list.

28. The article of manufacture of claim 27 further comprising:

program instructions in the program medium for establishing a retailer financial institution serving the retailer as an intermediary between the financial institution and the retailer for the end user authorized electronic transactions conducted between the end user and the retailer for purchases made by the end user from the retailer.

29. The article of manufacture of claim 27 further comprising:

program instructions in the program medium for issuing data messages by the end user for the purchases made by the end user from the retailer.

30. The article of manufacture of claim 27 further comprising:

program instructions in the program medium for presenting data messages to the financial institution as requests for payments by the retailer for the purchases made by the end user from the retailer.

31. The article of manufacture of method of claim 27 further comprising:

program instruction in the program medium for storing the request for payments in the financial institution for approval or rejection by the end user before payment is made to the retailer.

32. The article of manufacture of claim 27 further comprising:

program instructions in the program medium for providing authorization of payment by the financial institution to the retailer for purchases made by the user from the retailer.