Method and apparatus for executing cryptographically-enabled letters of credit

• US 6,904,418 B2
• Filed: 09/24/2002
• Issued: 06/07/2005
• Est. Priority Date: 04/03/1997
• Status: Expired due to Term

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: Walker Digital LLC (Walker Innovation Inc. (f/k/a Patent Properties, Inc.))
• Inventors: Walker, Jay S., Schneier, Bruce
• Primary Examiner(s): Hayes, John W.
• Application Number:
  US10/253,192
• Publication Number:
  US 20030033259A1
• Time in Patent Office: 987 Days
• Field of Search: 705/50, 705/51, 705/53, 705/67, 705/74, 705/76, 705/78, 705/35, 705/38, 705/39, 705/44, 380 1- 59, 380200-287, 713/155, 713/156, 713/157, 713/170, 713/175
• US Class Current: 705/76
• 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 20/0855 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 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 20/3821 Electronic credentials
• CPC Class Codes: G06Q 20/38215 Use of certificates or encrypted proofs of transaction rights
• CPC Class Codes: G06Q 20/401 Transaction verification

Abstract

A method and apparatus for executing electronic transactions using cryptographically-enabled accounts stores cryptographically-enabled account information and instructions, receives a cryptographically-encoded permission certificate, and processes the received permission certificate to execute the transactions.

Claims

1. A method comprising:

transmitting a verification authority permission certificate from a trusted agent to a verification authority;

signing the transmitted verification authority permission certificate;

transmitting the signed verification authority permission certificate from the verification authority to the trusted agent to verify that a seller has performed conditions of a contract;

electronically transmitting a withdrawal permission certificate from the trusted agent to the seller in response to receipt of the signed verification authority permission certificate,

thereby permitting the seller to withdraw an amount of funds from a bank; and

transmitting the withdrawal permission certificate from the seller to the bank.

2. A computer readable medium storing instructions configured to direct a processor to perform the method of:

transmitting a verification authority permission certificate from a trusted agent to a verification authority;

signing the transmitted verification authority permission certificate;

transmitting the signed verification authority permission certificate from the verification authority to the trusted agent to verify that a seller has performed conditions of a contract;

transmitting a withdrawal permission certificate from the trusted agent to the seller in response to receipt of the signed verification authority permission certificate,

thereby permitting the seller to withdraw an amount of funds from a bank; and

transmitting the withdrawal permission certificate from the seller to the bank.

3. An apparatus comprising:

a processor; and

a computer readable medium in communication with the processor,

the computer readable medium storing instructions configured to direct the processor to perform the method of;

transmitting a verification authority permission certificate from a trusted agent to a verification authority;

signing the transmitted verification authority permission certificate;

transmitting the signed verification authority permission certificate from the verification authority to the trusted agent to verify that a seller has performed conditions of a contract;

transmitting a withdrawal permission certificate from the trusted agent to the seller in response to receipt of the signed verification authority permission certificates,

thereby permitting the seller to withdraw an amount of funds from a bank; and

transmitting the withdrawal permission certificate from the seller to the bank.

4. A method comprising:

transmitting a verification authority permission certificate from a trusted agent to a verification authority;

receiving the verification authority permission certificate from the verification authority,

in which the verification authority permission certificate is signed by the verification authority, and

in which the received signed verification authority permission certificate verifies that a seller has performed conditions of a contract; and

electronically transmitting a withdrawal permission certificate from the trusted agent to the seller in response to receipt of the signed verification authority permission certificate,

thereby permitting the seller to withdraw an amount of funds from a bank,

in which the withdrawal permission certificate is for transmitting from the seller to the bank.

5. The method of claim 4, in which the bank is the trusted agent.

6. The method of claim 4, further comprising:

providing to the bank a contract that has been digitally signed by the seller, a buyer and the trusted agent; and

storing the transmitted contract in a contract terms database at the bank.

7. The method of claim 4, further comprising:

establishing at the bank a cryptographically-enabled account that corresponds to the stored contract.

8. The method of claim 7, further comprising:

depositing funds in the cryptographically-enabled account.

9. The method of claim 8, further comprising:

placing a cryptographic lock on the cryptographically-enable account.

10. The method of claim 4, further comprising:

using a permission certificate calculation program to generate the verification authority permission certificate and the withdrawal permission certificate.

11. The method of claim 4, further comprising transmitting funds from the bank to the seller in response to the bank receiving the withdrawal permission certificate.

12. A computer readable medium storing instructions configured to direct a processor to perform the method of claim 4.

13. An apparatus comprising:

a processor; and

the computer readable medium of claim 12 in communication with the processor.