Method for performing a transaction over a network

• US 7,171,694 B1
• Filed: 07/21/2000
• Issued: 01/30/2007
• Est. Priority Date: 07/21/1999
• Status: Expired

• Current Assignee: Advanced Transactions, LLC (IP Investments Group LLC)
• Original Assignee: E-Payments
• Inventors: Bruus, Kirsten, Jespersen, Torben
• Primary Examiner(s): Moazzami; Nasser
• Assistant Examiner(s): Parthasarathy; Pramila
• Application Number:
  US09/624,013
• Time in Patent Office: 2,384 Days
• Field of Search: 713/201, 713/155, 713/156, 713/157, 713/200, 713/202, 705/53, 705/67, 705/69, 705/75, 705/76, 705/78, 705/79, 705/26, 726/9, 726/10, 726/20, 726/27, 726/28, 726/8, 726/21
• US Class Current: 726/27
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/42 Confirmation, e.g. check or permission by the legal debtor of payment

Abstract

A method for performing a transaction between a legal entity A who has an approval to perform such transaction, and a legal entity B over a network, the transaction being initiated by the legal entity A, wherein the legal entity A, to verify the approval to the legal entity B, associates the transaction with a verification insignia, the verification insignia being a unique transitory insignia provided to the legal entity A by a legal entity C who thereby guarantees that the legal entity A has the approval, the provision of the unique transitory insignia to the legal entity A by the legal entity C being conditioned by the legal entity A providing to the legal entity C a secret identification code confirming the identity of the legal entity A to the legal entity C, the legal entity B validating the unique transitory insignia, and upon positive validation, and only then, accepts the transaction, and the transitory unique insignia being invalidated substantially immediately after the validation.

Claims

1. A method for performing a transaction between a legal entity A who has an approval to perform such transaction, and a legal entity B over a network, the transaction being initiated by the legal entity A,

comprising the steps of:

the legal entity A, associating the transaction with a digital verification insignia to verify the approval to the legal entity B,

the verification insignia being a unique transitory insignia valid for a single transaction and valid only for a prespecified time to complete a transaction provided to the legal entity A by a legal entity C who thereby guarantees that the legal entity A has the approval,

providing the unique transitory insignia to the legal entity A by the legal entity C for said single transaction before said transaction being conditioned by the legal entity A providing to the legal entity C a secret identification code confirming the identity of the legal entity A to the legal entity C,

the legal entity B validating through legal entity C the unique transitory insignia, and upon positive validation, and only then, accepts the transactions, and

the legal entity C invalidating the transitory unique insignia upon completion of the transaction.

2. A method according to claim 1, wherein the validation is guaranteed by the legal entity C and wherein the legal entity C upon the guaranteeing invalidates the unique transitory insignia.

3. A method according to claim 1, wherein a first timestamp is recorded by the legal entity C, the first timestamp comprising the date and time of the provision of the unique transitory insignia to the legal entity A by the legal entity C.

4. A method according to claim 3, wherein a second timestamp is recorded by the legal entity A, the second timestamp comprising the date and time when the legal entity A, to verify the approval to the legal entity B, associates the transaction with a verification insignia.

5. A method according to claim 4, wherein the unique transitory insignia comprises the first timestamp and/or the second timestamp.

6. A method according to claim 3, wherein the transitory unique insignia is invalidated by the legal entity C after a prespecified time T counted from the time recorded in the timestamp.

7. A method according to claim 6, wherein the prespecified time T equals a transmission time of the unique transitory insignia from legal entity C to legal entity A plus a processing and maximum handling time at legal entity A, plus a transmission time of the unique transitory insignia from legal entity A to legal entity B, plus a processing time at legal entity B, plus a transmission time of the unique transitory insignia from legal entity B to legal entity C plus a processing time at the legal entity C.

8. A method according to claim 1, wherein at least one of the following events is recorded by the legal entity C:

the provision of the unique transitory insignia,

the association of the transaction with the verification insignia,

the verifying of the correctness of the unique transitory insignia, and

the time when the transitory unique insignia is being invalidated.

9. A method according to claim 1, wherein the public network is the internet or any other public, semi-public, private or semi-private network.

10. A method according to claim 9, wherein the network uses a wireless application protocol.

11. A method according to claim 1, wherein the verification insignia is a provided to the legal entity A by the legal entity C over the Internet through a secure communication channel protected by the secret identification code.

12. A method according to claim 1, wherein the unique transitory insignia has a unique identification number.

13. A method according to claim 1, wherein the unique identification number is associated with a financial agreement between the legal entity A and a trusted partner of the legal entity C.

14. A method according to claim 13, wherein the financial agreement comprises the trusted partner of the legal entity C providing the legal partner A with a payment card.

15. A method according to claim 13, wherein the unique identification number comprises at least a first and a second identification component, the first identification component identifying the financial agreement and the second identification component identifying the legal entity C.

16. A method according to claim 15, wherein the second identification component is assigned to the legal entity C by a registration authority agreed between the legal entity C and a number of trusted partners of the legal entity C.

17. A method according claim 15, wherein there is an interdependency between the financial agreement and a disbursement account.

18. A method according to claim 1, wherein the legal entity C is requested a payment entity B, the request being associated with the unique transitory insignia.

19. A method according to claim 17, wherein the payment is withdrawn from the disbursement account.

20. A method according to claim 14, wherein the unique number is selected in accordance with a unique number of the payment card.

21. A method according to claim 14, wherein the unique number is selected in accordance with a unique issuer identification number of the legal entity C or in accordance with unique identification number of trusted partner(s) of the legal entity C.

22. A method according to claim 12, wherein the unique identification number is selected from a pool of numbers agreed between the legal entity C and the trusted partners of the legal entity C, and wherein the number is released after the transitory unique insignia has been invalidated.

23. A method according to claim 1, wherein the unique transitory insignia is comprised in a digital code.

24. A method according to claim 23, wherein the digital code is generated in a cellular phone, by means of a digital device provided by the legal entity C.

25. A method according to claim 23, wherein the digital code is encrypted.

26. The method according to claim 6, wherein the prespecified time is between 30 seconds and 4 minutes.

27. The method according to claim 6, wherein in the prespecified time is 2 minutes.

28. A method for securing an electronic transaction, comprising the steps of:

providing a computer based system for transmission of a transaction between a legal entity A who has an approval to perform a transaction and a legal entity B over an electronic communication network, the transaction being initiated by legal entity A;

legal entity A associating the transaction with a verification insignia to verify the approval to legal entity B, the verification insignia being a unique transitory insignia valid for a single transaction and valid only for a prespecified time to complete the transaction, the verification insignia including a unique digital code and optionally one or more of (1) a unique identification code which identifies the agreement between legal entity A and legal entity C, and (2) a time stamp identifying the exact date and time when the unique transitory insignia is assigned and transmitted by legal entity C to legal entity A;

providing the transitory insignia by legal entity C, who thereby guarantees that legal entity A has the approval, conditioned by legal entity A providing to legal entity C a secret identification code confirming the identity of legal entity A to legal entity C;

starting a timer when assigning the unique transitory insignia, legal entity C or a trusted partner of legal entity C transmitting the unique transitory insignia to legal entity A through a secure communication channel;

legal entity B validating through legal entity C the unique transitory insignia and upon positive validation and only then accepting the transaction; and

legal entity C invalidating the unique transitory insignia upon completion of the transaction;

so that the receiver of the transaction has the possibility to verify on-line, the sender'"'"'s legal rights to perform such a transaction.

29. The method according to claim 28, wherein the unique transitory insignia is invalidated by legal entity C when the unique transitory insignia is presented for validation or after a system dependent and prespecified time limit T as counted by the timer without the unique transitory insignia has been presented for legal entity C for validation.

30. A method for performing a transaction between a legal entity A who has an approval to perform such transaction, and a legal entity B over a network, the transaction being initiated by the legal entity A,

comprising the steps of:

the legal entity A, associating the transaction with a digital verification insignia to verify the approval to the legal entity B,

the verification insignia being a unique transitory insignia valid for a single transaction and valid only for a prespecified time to complete a transaction provided to the legal entity A by a legal entity C who thereby guarantees that the legal entity A has the approval,

providing the unique transitory insignia to the legal entity A by the legal entity C for said single transaction before said transaction being conditioned by the legal entity A providing to the legal entity C a secret identification code confirming the identity of the legal entity A to the legal entity C, the provision of the unique transitory insignia being transmitted through a different secure communication channel than the provision of the secret identification code,

the legal entity B validating through legal entity C the unique transitory insignia, and upon positive validation, and only then, accepts the transactions, and

the legal entity C invalidating the transitory unique insignia upon completion of the transaction.

31. A method for securing an electronic transaction, comprising the steps of:

providing a computer based system for transmission of a transaction between a legal entity A who has an approval to perform a transaction and a legal entity B over an electronic communication network, the transaction being initiated by legal entity A;

legal entity A associating the transaction with a verification insignia to verify the approval to legal entity B, the verification insignia being a unique transitory insignia valid for a single transaction and valid only for a prespecified time to complete the transaction, the verification insignia including a unique digital code and optionally one or more of (1) a unique identification code which identifies the agreement between legal entity A and legal entity C, and (2) a time stamp identifying the exact date and time when the unique transitory insignia is assigned and transmitted by legal entity C to legal entity A;

providing the transitory insignia by legal entity C, who thereby guarantees that legal entity A has the approval, conditioned by legal entity A providing to legal entity C a secret identification code confirming the identity of legal entity A to legal entity C, the provision of the unique transitory insignia being transmitted through a different secure communication channel than the provision of the secret identification code;

starting a timer when assigning the unique transitory insignia, legal entity C or a trusted partner of legal entity C transmitting the unique transitory insignia to legal entity A through a secure communication channel;

legal entity B validating through legal entity C the unique transitory insignia and upon positive validation and only then accepting the transaction; and

legal entity C invalidating the unique transitory insignia upon completion of the transaction;

so that the receiver of the transaction has the possibility to verify on-line, the sender'"'"'s legal fights to perform such a transaction.