Two factor authentications for financial transactions

• US 7,600,676 B1
• Filed: 12/26/2006
• Issued: 10/13/2009
• Est. Priority Date: 12/26/2006
• Status: Active Grant

• Current Assignee: Cellco Partnership, Inc. (Verizon Communications Inc.)
• Original Assignee: Cellco Partnership, Inc. (Verizon Communications Inc.)
• Inventors: Murray, David, Rados, Steven Roy, Dossal, Hasan, Germansky, Jess, Delatorre, Renato, Werden, Steven
• Primary Examiner(s): Le; Thien M.
• Assistant Examiner(s): JOHNSON, SONJI N
• Application Number:
  US11/644,947
• Time in Patent Office: 1,022 Days
• Field of Search: 235/380, 235/383, 235/382, 235/379, 235/382.5, 235/377, 705/44, 705/64, 705/75, 455/406, 455/410, 455/407
• US Class Current: 235/380
• 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
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

The present invention relates to a method for authenticating financial transactions by using an additional factor which is not present on a physical card, and which is not used in sequential transactions. In one example, a purchaser provides card information to a merchant; the merchant transmits the card information and transaction information to an issuer; the issuer authenticates the card information, and transmits verification indicia to a target address associated with the card information. The purchaser target address may be the telephone number of a mobile telephone of the purchaser or a third party (e.g. parent). The purchaser or third party provides the verification indicia to a merchant; and the merchant transmits the verification indicia back to the issuer. The issuer authenticates that the received verification indicia relative to that sent to the target address, and thus the purchaser is the genuine or authentic person authorized to use card information; and the issuer approves the transaction.

Claims

1. A method for pre-approving a financial transaction, wherein an issuer computer performs steps comprising:

a) receiving a request for pre-approval of a financial transaction from a purchaser, prior to initiation of the financial transaction, wherein the request includes card information and at least one restriction;

b) determining whether the card information is authentic and sufficient funds are available;

c) upon determining that the card information is authentic and sufficient funds are available, transmitting a first verification indicia to a target address associated with the purchaser;

d) subsequently, receiving financial transaction information and a second verification indicia from a merchant involved in the financial transaction;

e) determining whether the second verification indicia is authentic based upon whether at least a portion of the second verification indicia matches at least a portion of the first verification indicia;

f) determining whether the at least one restriction is satisfied by the received financial transaction information; and

g) transmitting approval of the financial transaction to the merchant in response to successful authentication of the second verification indicia and the satisfaction of the at least one restriction.

2. The method of claim 1, wherein transmitting the first verification indicia to the target address associated with the purchaser comprises transmitting a first text message to a mobile phone associated with the purchaser.

3. The method of claim 1, wherein the at least one restriction is selected from a group consisting of:

an amount, a merchant, a geographic location, and a time period.

4. The method of claim 1, wherein the first verification indicia comprises at least one of the following:

a one-time four digit PIN, a one-time three digit verification number, a one-time five digit number, or a one-time full set of card information.

5. A method for authenticating a financial transaction, wherein an issuer computer performs steps comprising:

a) receiving card information and financial transaction information from a merchant;

b) determining whether the card information is authentic and sufficient funds are available for the financial transaction;

c) determining whether conditions associated with the card information trigger a required second authentication;

d) responsive to determining the card information is authentic, sufficient funds are available and the conditions trigger a second authentication, transmitting a first verification indicia to a target address of a purchaser associated with the card information, and transmitting a false denial to the merchant;

e) receiving a second verification indicia from the merchant, responsive to the false denial, wherein the second verification indicia was submitted from the purchaser to the merchant in response to the first verification indicia;

f) determining whether the second verification indicia is authentic; and

g) transmitting approval of the financial transaction to the merchant in response to successful authentication of the second verification indicia.

6. The method of claim 5, wherein:

the first verification indicia comprises at least one of the following;

a one-time four digit PIN, a one-time three digit verification number, a one-time five digit number, or a one-time full set of card information;

the false denial to a merchant comprises a code or a communication indicating that at least a portion of the card information is not correct;

receiving the second verification indicia from the merchant comprises receiving at least one of the following;

the one-time four digit PIN, the one-time three digit verification number, the one-time five digit number, or the one-time full set of card information; and

authenticating the second verification indicia comprises matching the one-time four digit PIN, the one-time three digit verification number, the one-time five digit number, or the one-time full set of card information from the first verification indicia against the one-time four digit PIN, the one-time three digit verification number, the one-time five digit number, or the one-time full set of card information from the second verification indicia.

7. A method for authenticating a financial transaction, wherein a merchant point-of-sale terminal performs steps comprising:

a) receiving card information at the terminal from a purchaser, and generating transaction information regarding the financial transaction;

b) transmitting the card information and the transaction information to an issuer in a first transaction message to the issuer;

c) receiving a false denial from the issuer;

d) after the purchaser receives a first verification indicia directly from the issuer in response to the transmitted card information and transaction information, receiving a second verification indicia from the purchaser;

e) transmitting the second verification indicia to the issuer in a second transaction message to the issuer, responsive to the false denial from the issuer;

f) receiving approval from the issuer in response to the issuer successfully authenticating the second verification indicia against the first verification indicia; and

g) completing the financial transaction in response to receipt of said approval.

8. A method for authenticating a financial transaction, wherein an issuer computer performs steps comprising:

a) receiving card information and financial transaction information from a merchant;

b) determining whether the card information is authentic and sufficient funds are available with respect to an account identified by the card information;

c) determining from the financial transaction information, whether or not the financial transaction can be approved without requiring a second authentication;

d) upon determining the card information is authentic and sufficient funds are available and determining that the financial transaction can not be approved without requiring a second authentication, using a target address associated with the card information to transmit a first verification indicia through a mobile network to a mobile phone;

e) receiving a second verification indicia via the merchant, following delivery of the first verification indicia to the mobile phone, indicating delivery of the second verification indicia to the merchant from the mobile phone or from a user of the mobile phone;

f) determining whether the second verification indicia is authentic; and

g) transmitting approval of the financial transaction to the merchant in response to successful authentication of the second verification indicia.

9. The method of claim 8, wherein the step (c) is responsive to at least one parameter of the transaction from the group consisting of:

a transaction amount, a merchant identity, a geographic location, and a period of time.

10. The method of claim 8, wherein the first verification indicia comprises at least one of the following:

a one-time four digit PIN, a one-time three digit verification number, a one-time five digit number, or a one-time full set of card information.

11. The method of claim 8, wherein the first verification indicia comprises a one-time four digit personal identification number.

12. The method of claim 8, wherein transmitting the first verification indicia to the target address comprises transmitting a text message to a mobile phone number associated with an authorized user of the card information.

13. The method of claim 8, wherein step (f) determines the second verification indicia is authentic upon determining that the second verification indicia received via the merchant matches the first verification indicia transmitted to the mobile phone.