Method and apparatus to provide secure purchase transactions over a computer network

• US 6,839,692 B2
• Filed: 12/01/2000
• Issued: 01/04/2005
• Est. Priority Date: 12/01/2000
• Status: Active Grant

• Current Assignee: Benedor LLC
• Original Assignee: Benedor LLC
• Inventors: Pheir, Hirshol H., Carrott, Richard F.
• Primary Examiner(s): Hayes, John W.
• Application Number:
  US09/726,304
• Publication Number:
  US 20020069177A1
• Time in Patent Office: 1,495 Days
• Field of Search: 705/64, 705/65, 705/74, 705/75, 705/76, 705/38, 705/39, 705/44, 235/380, 235/382
• US Class Current: 705/64
• 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 20/383 Anonymous user system
• 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 30/06 Buying, selling or leasing transactions

Abstract

A method and structure for providing secure credit facility transactions for purchasing goods and services over a computer network such as the Internet that stores user'"'"'s privileged information and other transactional data on the user'"'"'s own computer. The method includes encryption of all information before or during its storage to the user'"'"'s hard drive. The method and system includes the ability for the user to complete electronic commerce (e-commerce) transactions without revealing certain of the encrypted information, such as credit card numbers, to the merchant. The method and system creates and controls sub-accounts on a single credit facility, such as a credit card, with unique user reporting and corresponding password identifiers. The method and system sets and control sub-accounts spending amounts and replenishment periods. The method enables the user to create and control recurring debit accounts on a single credit facility, such as a credit card, over varying transactional periods.

Claims

1. A method of securing transactions over a computer network comprising:

encrypting customer information as customer codes on a storage device on a customer computer, said customer computer being connected to said computer network, wherein said customer codes include encrypted identifiers including a customer shipping address, and wherein said customer shipping address comprises one of a plurality of valid shipping addresses that depend upon which customer code is supplied to said merchant;

selecting one of a plurality of stored customer codes having one of said plurality of valid shipping addresses;

supplying said selected customer code to said merchant in a transaction over said computer network;

forwarding said customer code to a financial institution over said computer network;

decrypting said customer code at said financial institution;

comparing, at said financial institution, said customer shipping address with an authorized address of said customer maintained by said financial institution; and

returning an authorization decision from said financial institution to said merchant over said computer network, wherein said authorization decision is approved only if said customer shipping address and said authorized address are consistent.

2. The method in claim 1, wherein said customer code is stored on said storage device only in encrypted form.

3. The method in claim 1, wherein said customer code includes encrypted credit card information.

4. The method in claim 1, further comprising passing said customer code through an intermediate code confirmation site on said computer network prior to forwarding said customer code to said financial institution over said computer network, said intermediate confirmation site confirming whether said customer code has a proper encryption format.

5. The method in claim 1, further comprising encrypting a plurality of said customer codes on said storage device, wherein each of said customer codes includes a unique payment method.

6. The method in claim 1, further comprising encrypting a plurality of said customer codes on said storage device, wherein a group of said customer codes identifies a single credit organization for payment, wherein each customer code in said group includes a different user name, and wherein each customer code in said group includes a unique credit limit.

7. The method in claim 1, wherein said supplying includes entering a password on said customer computer to unlock said customer code.

8. The method in claim 1, wherein entry of said password allows rules to be established for each transaction, wherein limits on transactional amounts and payment time frames may be established.

9. A method of securing transactions over the Internet comprising:

encrypting customer credit card information as customer codes on a storage device on a customer computer, said customer computer being connected to said Internet, wherein said customer codes include encrypted identifiers including a customer shipping address, and wherein said customer shipping address comprises one of a plurality of valid shipping addresses that depend upon which customer code is supplied to a merchant;

selecting one of a plurality of stored customer codes having one of said plurality of valid shipping addresses;

supplying said selected customer code to said merchant in a transaction over said Internet;

forwarding said customer code to a financial institution over said Internet;

decrypting said customer code at said financial institution;

comparing, at said financial institution, said customer shipping address with an authorized address of said customer maintained by said financial institution; and

returning an authorization decision from said financial institution to said merchant over said Internet, wherein said authorization decision is approved only if said customer shipping address and said authorized address are consistent.

10. The method in claim 9, wherein said customer code is stored on said storage device only in encrypted form.

11. The method in claim 9, further comprising passing said customer code through an intermediate code confirmation site on said Internet prior to forwarding said customer code to said financial institution over said Internet, said intermediate confirmation site confirming whether said customer code has a proper encryption format.

12. The method in claim 9, further comprising encrypting a plurality of said customer codes on said storage device, wherein each of said customer codes includes a different credit card number.

13. The method in claim 9, further comprising encrypting a plurality of said customer codes on said storage device,

wherein a group of said customer codes identify a single credit card for payment,

wherein each customer code in said group includes a different user name, and

wherein each customer code in said group includes a unique credit limit.

14. The method in claim 13, wherein said unique credit limits include unique recurring periodic spending limits.

15. The method in claim 9, wherein said supplying includes entering a password on said customer computer to unlock said customer code.

16. A system for securing transactions over a computer network, said system operating on a customer computer, said system comprising:

an encrypter adapted to encrypt customer information as customer codes on a storage device on said customer computer, wherein said customer codes include encrypted identifiers including a customer shipping address, and wherein said customer shipping address comprises one of a plurality of valid shipping addresses that depend upon which customer code is supplied to a merchant;

a graphical user interface adapted to select one of a plurality of stored customer codes having one of said plurality of valid shipping addresses;

a populator adapted to supply said selected customer code to said merchant in a transaction over said computer network;

wherein said merchant includes a network connection adapted to forward said customer code to a financial institution over said computer network;

wherein said financial institution decrypts said customer code;

wherein said financial institution includes a comparator adapted to compare said customer shipping address with an authorized address of said customer maintained by said financial institution;

wherein said financial institution returns an authorization decision to said merchant over said computer network, and

wherein said authorization decision is approved only if said customer shipping address and said authorized address are consistent.

17. The system in claim 16, wherein said customer code is stored on said storage device only in encrypted form.

18. The method in claim 16, wherein said financial institution corrects errors in said customer shipping address and returns a corrected address to said merchant.

19. The system in claim 16, wherein said customer code includes encrypted credit card information.

20. The system in claim 16, further comprising an intermediate code confirmation site external to said customer computer and connected to said computer network, said intermediate code confirmation she being adapted to receive said customer code prior to forwarding said customer code to said financial institution over said computer network, said intermediate confirmation site being further adapted to confirm whether said customer code has a proper encryption format.

21. The system in claim 16, wherein said encrypter is further adapted to encrypt a plurality of said customer codes on said storage device, wherein each of said customer codes includes a unique payment system.

22. The system in claim 16, wherein said encrypter is further adapted to encrypt a plurality of said customer codes on said storage device, wherein a group of said customer codes identify a single credit organization for payment, wherein each customer code in said group includes a different user name, and wherein each customer code in said group includes a unique credit limit.

23. The method in claim 22, wherein said unique credit limit include unique recurring periodic spending limits.

24. The system in claim 16, further comprising a graphic user interface adapted to receive a password on said customer computer to unlock said customer code.

25. A method of securing transactions over a computer network comprising:

encrypting customer information as customer codes on a storage device on a customer computer, said customer computer being connected to said computer network, wherein said customer codes include encrypted identifiers including a customer shipping address, and wherein said customer shipping address comprises one of a plurality of valid shipping addresses that depend upon which customer code is supplied to a merchant;

selecting one of a plurality of stored customer codes having one of said plurality of valid shipping addresses;

supplying said selected customer code to said merchant in a transaction over said computer network;

forwarding said customer code to a financial institution over said computer network;

decrypting said customer code at said financial institution;

comparing, at said financial institution, said customer shipping address with an authorized address of said customer maintained by said financial institution; and

returning a customer name, a customer shipping address, and an authorization decision from said financial institution to said merchant over said computer network, wherein said authorization decision is approved only if said customer shipping address and said authorized address are consistent.

26. The method in claim 25, wherein said customer shipping address is previously established with, and stored at said financial institution by the customer.

27. A method of securing transactions over the Internet comprising:

encrypting customer credit card information as customer codes on a storage device on a customer computer, said customer computer being connected to said Internet, wherein said customer codes include encrypted identifiers including a customer shipping address, and wherein said customer shipping address comprises one of a plurality of valid shipping addresses that depend upon which customer code is supplied to a merchant;

selecting one of a plurality of stored customer codes having one of said plurality of valid shipping addresses;

supplying said selected customer code to said merchant in a transaction over said Internet;

forwarding said customer code to a financial institution over said Internet;

decrypting said customer code at said financial institution;

comparing, at said financial institution, said customer shipping address with an authorized address of said customer maintained by said financial institution; and

returning a customer name, a customer shipping address, and an authorization decision from said financial institution to said merchant over said Internet, wherein said authorization decision is approved only if said customer shipping address and said authorized address are consistent.

28. The method in claim 27, wherein said customer shipping address is previously established with, and stored at said financial institution by the customer.

29. A system for securing transactions over a computer network, said system operating on a customer computer, said system comprising:

an encrypter adapted to encrypt customer information as customer codes on a storage device on said customer computer, wherein said customer codes include encrypted identifiers including a customer shipping address, and wherein said customer shipping address comprises one of a plurality of valid shipping addresses that depend upon which customer code is supplied to a merchant;

a graphical user interface adapted to select one of a plurality of stored customer codes having one of said plurality of valid shipping addresses;

a populator adapted to supply said selected customer code to said merchant in a transaction over said computer network;

wherein said merchant includes a network connection adapted to forward said customer code to a financial institution over said computer network;

wherein said financial institution decrypts said customer code;

wherein said financial institution includes a comparator adapted to compare said customer shipping address with an authorized address of said customer maintained by said financial institution;

wherein said financial institution returns a customer name, a customer shipping address, and an authorization decision to said merchant over said computer network, and

wherein said authorization decision is approved only if said customer shipping address and said authorized address are consistent.

30. The system in claim 29, wherein said customer shipping address is previously established with, and stored at said financial institution by the customer.