Secure and efficient payment processing system

• US 7,742,967 B1
• Filed: 01/20/2000
• Issued: 06/22/2010
• Est. Priority Date: 10/01/1999
• Status: Expired due to Fees

• Current Assignee: CardinalCommerce Corporation (Visa, Inc.)
• Original Assignee: CardinalCommerce Corporation (Visa, Inc.)
• Inventors: Balasubramanian, Chandra, Sherwin, Francis M., Keresman, Michael A. III, Bhagavatula, Ravishankar
• Primary Examiner(s): Akintola; Olabode
• Application Number:
  US09/488,297
• Time in Patent Office: 3,806 Days
• Field of Search: 705/41, 705/52, 705/57, 705/58, 705/65, 705/67, 705/72, 705/75, 705/44, 705 26- 40
• US Class Current: 705/37
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/3674 involving authentication
• CPC Class Codes: G06Q 20/3821 Electronic credentials
• CPC Class Codes: G06Q 20/385 using an alias or single-use codes
• 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 30/04 Billing or invoicing
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A method of processing commercial transactions carried out over the Internet (50) between account holders (30) and participating merchants (20) includes receiving a purchase request (352) of a buyer from a participating merchant (20) indicating that the buyer desires to carry out a transaction with the merchant (20). The transaction includes the buyer purchasing one or more selected items (340) from the merchant (20). The buyer is authenticated (310) as an account holder (30) and transaction fulfillment data (362) is established. The transaction fulfillment data (362) indicates a delivery destination for the selected items. In turn, the transaction fulfillment data (362) is communicated to the participating merchant (20), and transaction details (384) from the participating merchant (20) are received. The transaction details (384) include a cost for the selected items. Thereafter, completion of the transaction is authorized (390) and an authorization code (392) established therefor is communicated to the participating merchant (20).

Claims

1. A method of processing a transaction carried out over a network between a financial account holder and a participating entity, said method comprising the steps of:

(a) receiving a purchase request of a buyer from the participating entity indicating that the buyer desires to carry out a transaction with the entity, said transaction including the buyer purchasing one or more selected items;

(b) authenticating the buyer as the financial account holder;

(c) establishing transaction fulfillment data, said transaction fulfillment data indicating a delivery destination for the selected items, wherein establishing the transaction fulfillment data includes using a previously obtained destination as the delivery destination for the selected items when an alternate destination is not obtained;

(d) communicating the transaction fulfillment data to the participating entity;

(e) receiving transaction details from the participating entity, said transaction details including a cost for the selected items;

(f) authorizing, via a processor, completion of the transaction and establishing an authorization code therefor; and

,

(g) communicating the authorization code for the transaction to the participating entity.

2. The method according to claim 1, wherein establishing the fulfillment data further includes:

obtaining an alternate destination from the buyer, said alternate destination being different from the previously obtained destination;

transmitting a security question to the buyer;

receiving a response to the security question from the buyer; and

,

using the alternate destination as the delivery destination for the selected items when the response to the security question is accurate.

3. The method according to claim 1, wherein the transactions are at least partially carried out over a public network.

4. A method of processing transactions carried out over a network between account holders and participating entities, said method comprising the steps of:

(a) obtaining restriction instructions from account holders;

(b) receiving a purchase request of a buyer from a participating entity indicating that the buyer desires to carry out a transaction with the entity, said transaction including the buyer purchasing one or more selected items;

(c) authenticating the buyer as an account holder;

(d) receiving transaction details from the participating entity, said transaction details including one or more terms for the purchase;

(e) authorizing completion of the transaction and establishing an authorization code therefor; and

,

(f) communicating the authorization code for the transaction to the participating entity.

5. The method according to claim 4, wherein said restriction instructions block authorizing the completion of transactions with participating entities identified in the restriction instructions.

6. The method according to claim 4, wherein said restriction instructions block authorizing the completion of recurring transactions which are not separately participated in by the account holder from whom the restriction instructions were obtained.

7. The method according to claim 4, wherein authorizing completion of the transaction includes comparing a cost of the selected items to a threshold such that if the cost is less than or equal to the threshold authorization is given and if the cost if greater than the threshold authorization is denied.

8. The method according to claim 7, wherein the threshold represents an amount selected from a group consisting of funds on deposit for the account holder, credit available to the account holder, and a value set via the obtained restriction instructions.

9. The method according to claim 4, wherein the transactions are at least partially carried out over a public network.

10. A method of processing transactions carried out over a network between account holders and participating entities, said method comprising the steps of:

(a) receiving a purchase request of a buyer from a participating entity indicating that the buyer desires to carry out a transaction with the entity, said transaction including the buyer purchasing one or more selected items;

(b) authenticating the buyer as an account holder;

(c) receiving transaction details from the participating entity, said transaction details including a cost for the purchase;

(d) authorizing, via a processor, completion of the transaction and establishing an authorization code therefor, wherein authorizing completion of the transaction and establishing an authorization code therefor includes;

transmitting the transaction details of the authenticated account holder directly to a funding source which determines if the account holder has one of sufficient funds on deposit with the funding source or sufficient credit available through the funding source to cover the cost of the purchase; and

,

receiving the authorization code from the funding source;

and,

(e) communicating the authorization code for the transaction to the participating entity.

11. The method according to claim 10, wherein the transactions are at least partially carried out over a public network.