Check based online payment and verification system and method

• US 7,069,250 B2
• Filed: 10/15/2001
• Issued: 06/27/2006
• Est. Priority Date: 10/15/2001
• Status: Expired

• Current Assignee: Cufer Asset Ltd LLC (Intellectual Ventures LLC)
• Original Assignee: Payformance Corporation (Zelis Healthcare, Inc.)
• Inventors: Meadow, William D., Gordie, Randall A. Jr., Ahuja, Sanjay P.
• Primary Examiner(s): Trammell, James P.
• Assistant Examiner(s): Winter, John M.
• Application Number:
  US09/976,056
• Publication Number:
  US 20030074327A1
• Time in Patent Office: 1,716 Days
• Field of Search: 705/75, 705/35, 705/1, 705/64, 705/62, 705/67, 380/54, 713/176, 713/168, 713/179
• US Class Current: 705/75
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/042 characterized in that the payment protocol involves at least one cheque
• CPC Class Codes: G06Q 20/3674 involving authentication
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 20/3827 Use of message hashing
• CPC Class Codes: G06Q 20/401 Transaction verification
• CPC Class Codes: G06Q 30/018 Certifying business or products

Abstract

A method and system for verifying a check that is being used for an on-line transaction, utilizes a hash code value either printed directly on the check, or obtained from an insert card provided by a check printer. To conduct an on-line transaction using a check, the customer enters in data obtained from a MICR line of the check, whereby the data includes a one-way hash value that is based on the data provided on the MICR line as well as private data not provided on the MICR line. A web server of an e-tailer for which the customer seeks to make the on-line transaction, receives the data entered by the customer. The web server of the e-tailer transmits, to a check verifier, the data entered by the customer. The check verifier verifies whether or not the check is valid, by comparing the hash code value entered in by the customer with a hash code value that is separately calculated by the check verifier, based on private data of the customer obtained by the check verifier from a database.

Claims

1. A method for verifying a check that is being used for an on-line transaction, comprising:

entering in by a customer using a computer, data obtained from a MICR line of the check, the data including a one-way hash value that is based on the data provided on the MICR line as well as private data not provided on a face of the check, the private data being a numerical value previously provided by the customer and that is stored in a database accessible by a check verifier;

receiving by a web server of a merchant for which the customer seeks to make the on-line transaction, the data entered by the customers the data being received by way of a computer network;

transmitting by the web server of the merchant to the check verifier by way of the computer network the data entered by the customer; and

verifying by the check verifier whether or not the check is valid wherein the verifying is performed by the check verifier computing a hash value based on the data entered by the customer and provided to it by the web server as well as private data of the customer that is obtained from the database accessible by the check verifier;

wherein the one-way hash value is included as an n-digit field at one end of the MICR line, n being an integer greater than one.

2. A method for verifying a check that is being used for an on-line transaction, comprising:

entering in by a customer using a computer, data obtained from a MICR line of the check, the data including a one-way hash value that is based on the data provided on the MICR line as well as private data not provided on a face of the check, the private data being a numerical value previously provided by the customer and that is stored in a database accessible by a check verifier;

receiving by a web server of a merchant for which the customer seeks to make the on-line transaction, the data entered by the customers the data being received by way of a computer network;

transmitting by the web server of the merchant to the check verifier by way of the computer network the data entered by the customer; and

verifying by the check verifier, whether or not the check is valid wherein the verifying is performed by the check verifier computing a hash value based on the data entered by the customer and provided to it by the web server, as well as private data of the customer that is obtained from the database accessible by the check verifier wherein the entering in step includes entering in the private data by the customer, wherein the check verifier verifies the check based on the computed hash value, and the check verifier authenticates the customer by comparing the private data entered by the customer with the private data obtained from the database, to determine if there is a match.

3. A system for verifying a check that is being used for an on-line transaction made over a computer network, comprising:

an input unit for receiving, from a customer, MICR data obtained from a MICR line of the check and private data of the customer, the MICR data including first MICR data that corresponds to bank account information and second MICR data that includes a one-way hash value that is computed based on the first MICR data and the private data of the customer that is not provided on a face of the check, the private data being a numerical value previously provided by the customer and that is stored in a database accessible by a check verifier;

a web server for receiving the MICR data and the private data from the input unit, as well as transaction data corresponding to a desired on-line transaction to be made by the customer, the MICR data and the private data and the transaction data being received by the web server by way of the computer network; and

the check verifier for receiving, by way of the computer network as output by the web server, the private data provided by the customer via the input unit and the MICR data provided by the customer via the input unit, wherein the check verifier verifies the check based on the computed hash value, and the check verifier authenticates the customer by comparing the private data entered by the customer via the input unit and provided to the check verifier by the web server, with the private data obtained by the check verifier directly from the database, to determine if there is a match.

4. The system according to claim 3, wherein the check verifier verifies the check when the hash value computed by the check verifier matches the second MICR data.