Method for utilizing a portable electronic authorization device to approve transactions between a user and an electronic transaction system

• US 7,089,214 B2
• Filed: 01/25/2002
• Issued: 08/08/2006
• Est. Priority Date: 04/27/1998
• Status: Expired due to Term

• Current Assignee: Esignx Corporation, ServStor Technologies, LLC (IP Investments Group LLC)
• Original Assignee: Esignx Corporation
• Inventors: Wang, Ynjiun P.
• Primary Examiner(s): NGUYEN, CUONG H
• Application Number:
  US10/057,465
• Publication Number:
  US 20030004827A1
• Time in Patent Office: 1,656 Days
• Field of Search: 713/171, 713/169, 713/184, 713/168, 713/150, 713/161, 380/259, 380/277, 380/281, 380/283, 705 35- 44
• US Class Current: 705/64
• CPC Class Codes: G06F 21/606 by securing the transmission between two devices or processes
• 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 20/12 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 20/32 using wireless devices
• CPC Class Codes: G06Q 20/322 Aspects of commerce using mobile devices [M-devices]
• CPC Class Codes: G06Q 20/3223 Realising banking transactions through M-devices
• CPC Class Codes: G06Q 20/327 Short range or proximity payments by means of M-devices
• 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 20/3415 Cards acting autonomously as pay-media
• CPC Class Codes: G06Q 20/363 with the personal data of a user
• CPC Class Codes: G06Q 20/3674 involving authentication
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 20/3823 combining multiple encryption tools for a transaction
• 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 20/40145 Biometric identity checks
• CPC Class Codes: G06Q 20/40975 using encryption therefor
• CPC Class Codes: G06Q 20/42 Confirmation, e.g. check or permission by the legal debtor of payment
• CPC Class Codes: G07F 19/20 : Automatic teller machines [ATMs]
• CPC Class Codes: G07F 7/0866 : by active credit-cards adapted therefor G07F7/1008 takes precedence
• CPC Class Codes: G07F 7/0886 : the card reader being portable for interacting with a POS or ECR in realizing a payment transaction
• 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: G07F 7/1025 : Identification of user by a PIN code
• CPC Class Codes: H04L 2463/102 : applying security measure for e-commerce
• 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 63/0853 : using an additional device, e.g. smartcard, SIM or a different communication terminal cryptographic mechanisms or cryptographic arrangements for entity authentication involving additional secure or trusted devices H04L9/3234
• CPC Class Codes: H04L 63/123 : received data contents, e.g. message integrity

Abstract

A method permits a user to conduct a charged transaction utilizing a charge terminal of an electronic transaction system, the charge card terminal being configured to interface with a charge card for the purpose of conducting the charge card transaction. A merchant card is provided to a merchant where the charge card transaction is to be conducted. A charge card terminal at the merchant accepts the merchant card and a pin number or cellular phone number from the user conducting the charge card transaction. The phone number or pin number of the customer causes a call to be placed to a cellular phone of a person required to authorize the charge card transaction.

Claims

1. A method for permitting a user to conduct a charged transaction utilizing a charge terminal of an electronic transaction system, the charge card terminal being configured to interface with a charge card for the purpose of conducting the charge card transaction, providing a merchant where the charge card transaction is to be conducted, comprising

accepting at a charge card terminal for the merchant where the charge card transaction is to be conducted to accept the merchant card and a pin number or cellular phone number from the user conducting the charge card transaction,

detecting the use of the merchant card at a central processing payment server,

the payment server using the transaction associated phone number or pin number as an index to a database which stores a cellular phone number for the person required to authorize the transaction,

the database further stores a record of whether the authorizers cellular phone has an imbedded portable electronic authorizing action device (PEAD),

in response to said detection step, utilizing the phone number or pin number to cause a call to be placed to a cellular phone of a person required to authorize the charge card transaction, sending a report of the users charge card transaction to the cellular phone, and authorizing approval of the charge card transaction back to the merchant'"'"'s charge card terminal only upon approval by the authorized persons,

the authorizing person approving the transaction by entering a pin number at the cellular phone into the PEAD.

2. A method as claimed in claim 1 wherein the merchant further enters the amount to be charged.

3. A method as claimed in claim 1 wherein the merchant further enters an identification of the type transaction being conducted.

4. A method as claimed in claim 1 wherein the merchant card is assigned a valid credit card number, the valid credit card number of the merchant being detected to initiate the step of calling the authorizing persons cellular phone.

5. A method as claimed in claim 1 comprising the further step of filtering all credit card transactions from the charge card terminal of the merchant through a central processing server, and in response to that filtering step,

If the card number received from the merchant is not a unique merchant assigned number, then the server does nothing,

Else if the card number is a unique merchant assigned number, then look up information in the database in the payment server using the phone number or pin number as the index.

6. A method as claimed in claim 1 wherein if the database lockup indicates that the authorizing person'"'"'s cellular phone is a touchtone phone, then the server will send a message to the authorizing person'"'"'s cellular phone requesting a dial tone pin for approval.

7. A method as claimed in claim 1 or claim 5, wherein the party controlling the payment server is the issuer of the merchant card.

8. A method as claimed in claim 1 wherein upon determining that the authorizing person'"'"'s cellular phone has the PEAD, the server sends a transaction message to the authorizing to the authorizing person'"'"'s phone for approval using the PEAD imbedded in the phone.

9. A method as claimed in claim 6, wherein upon the authorizing person authorizing/approving the transaction, a settlement is made to the authorizing person'"'"'s account utilizing an account selected from the group comprising a credit card, an ATM, a bank account or a debit card.

10. A method as claimed in claim 6 wherein the database server utilizes an interactive voice response system to convey the transaction information to the authorizing person'"'"'s cellular phone.