Secure authentication and payment system

• US 7,742,984 B2
• Filed: 07/06/2001
• Issued: 06/22/2010
• Est. Priority Date: 07/06/2001
• Status: Active Grant

• Current Assignee: Aliaswire, Inc.
• Original Assignee: Hossein Mohsenzadeh
• Inventors: Mohsenzadeh, Hossein
• Primary Examiner(s): Hamilton; Lalita M
• Application Number:
  US09/899,905
• Publication Number:
  US 20040049455A1
• Time in Patent Office: 3,273 Days
• Field of Search: 705/35, 705/36.R, 705/37
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/00 Payment architectures, schemes or protocols apparatus for performing or posting payment transactions G07F7/08, G07F19/00; electronic cash registers G07G1/12
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/305 using wired telephone networks
• 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 20/4014 Identity check for transactions
• CPC Class Codes: G06Q 30/0241 Advertisements
• 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

Abstract

A transaction and payment and processing system securely conducts transactions over the public telephone network. The transactions may be between and among entities of any type such as individuals, merchants, utilities, banks, etc. Nothing more than access to a telephone is required after initial registration of a user.

Claims

1. A method of securely conducting a transaction over a network, comprising:

A. receiving, at a server, a telephone call over the telephone network that seeks to initiate the transaction with a target;

B. obtaining, at the server, at least a telephone number defining the telephone from which the call is being placed;

C. authenticating, at the server, the call by checking at least the telephone number associated with the call against telephone numbers in a database of registrants'"'"' telephone numbers; and

D. in response to at least said telephone number matching that of an entity registered in said database, performing instantly, at the sever, the transaction by transferring funds from a first financial account to a second financial account.

2. The method of claim 1 in which said database contains data uniquely identifying call initiators that are registered to undertake transactions on the system.

3. The method of claim 2 in which a transaction is completed only after authentication of both the call initiator and the target.

4. The method of claim 1 in which the steps of debiting and crediting said financial accounts in connection with completion of the transaction are performed by the target entity.

5. The method of claim 1 in which said transaction is completed by the target.

6. The method of claim 1 which includes the steps of:

(1) obtaining from the call initiator a secondary identifier; and

(2) using said secondary identifier in connection with authenticating the call initiator.

7. The method of claim 1 in which said database includes information concerning one or more desired payment mechanisms, and said payment mechanisms are linked to said telephone number.

8. The method of claim 1 in which said database includes information concerning one or more desired payment mechanisms and shipping preferences, and in which said information is retrieved by means of the telephone number and used in processing a transaction.

9. The method of claim 1 which includes the step of verifying to the sender of said call the identity of the designated target before completing said transaction.

10. The method of claim 9 in which said verification is performed by checking the given telephone number against information obtained from the telephone company.

11. The method of claim 1 wherein the first financial account is selected from a group consisting of a bank account, a credit card account, a debit card account and a prepaid card account.

12. The method of claim 1 wherein the transaction is cleared through an entity selected from a group consisting of an Electronic Funds Transfer network, a credit card network and an Automated Clearing House network.

13. The method of claim 1 wherein the second financial account is selected from a group consisting of a bank account, a credit card account, a debit card account and a prepaid card account.

14. A method of securely conducting transactions over a network, comprising:

A. receiving, at a second location on a server, in a first network, a message placed at a first location on the first network and identifying a transaction to be undertaken;

B. at the server at the second location on the first network, obtaining, from a source other than the initiator of said message, at least a telephone number defining the telephone from which the message was initiated;

C. authenticating the message by checking at least the telephone number associated with the message against telephone numbers in a database of authorized telephone numbers; and

D. in response to at least said telephone number matching an entity that is contained in said database, instantly completing the transaction by performing a transfer of funds from a first financial account to a second financial account using a second network.

15. The method of claim 14 in which said second location includes a facilitator entity which performs said authentication.

16. The method of claim 15 in which said facilitator transmits authentication to a telephone station at a third location for completion of said transaction.

17. The method of claim 14 in which said facilitator completes said transaction only on authorization from the target of said transaction.

18. The method of claim 14 in which said message is placed by an entity which initiates a payment to another.

19. The method of claim 14 in which said message is placed by an entity which is a target of payment.

20. The method of claim 19 in which said transaction is completed only upon approval by the entity which is to make said payment.

21. The method of claim 14 wherein the first financial account is selected from a group consisting of a bank account, a credit card account, a debit card account and a prepaid card account.

22. The method of claim 14 wherein the transaction is cleared through an entity selected from a group consisting of an Electronic Funds Transfer network, a credit card network and an Automated Clearing House network.

23. The method of claim 14 the first financial account is selected from a group consisting of a bank account, a credit card account, a debit card account and a prepaid card account.

24. The method of claim 14 wherein the second financial account is selected from a group consisting of a bank account, a credit card account, a debit card account and a prepaid card account.

25. The method of claim 14 wherein the database comprises information concerning one or more desired payment mechanisms and wherein said payment mechanisms are linked to said telephone number.

26. The method of claim 14 wherein the database comprises information concerning one or more desired payment mechanisms and wherein said information is retrieved using the telephone for use in processing the transaction.

27. Apparatus for facilitating transactions initiated over a telephone network, comprising:

A. a data store for storing a database of at least authorized transaction initiators, said database containing, for each entity authorized to instantly engage in said transactions, at least a primary identifier identifying telephone instruments that are authorized for use in said transactions and a secondary identifier;

B. a stored program data processor for processing transactions directed to it, said apparatus being connected to store data in said database and to retrieve it therefrom;

C. one or more interfaces between said telephone network and said processor for receiving and transmitting data between said network and said processor;

D. said processor programmed to;

(1) receive said primary and said secondary identifiers from said telephone network via said one or more interfaces and to authenticate said identifiers against said database; and

(2) in response to authentication of said identifiers against said database, performing instantly the transaction by transferring funds from a first account to a second account.

28. Apparatus according to claim 27 in which said processor is programmed to receive said primary and secondary identifiers from different sources.

29. Apparatus according to claim 28 in which said processor is programmed to authenticate said transaction only if said primary and secondary identifiers are associated with each other on said database.

30. The apparatus of claim 27 wherein the telephone network comprises a wireless telephone network.

31. The apparatus of claim 27 wherein the first financial account is selected from a group consisting of a bank account, a credit card account, a debit card account and a prepaid card account.

32. The system of claim 27 wherein the transaction is cleared through an entity selected from a group consisting of an Electronic Funds Transfer network, a credit card network and an Automated Clearing House network.

33. The apparatus of claim 27 wherein the second financial account is selected from a group consisting of a bank account, a credit card account, a debit card account and a prepaid card account.

34. The apparatus of claim 27 wherein the database comprises information concerning one or more desired payment mechanisms and wherein said payment mechanisms are linked to said telephone number.

35. The apparatus of claim 27 wherein the database comprises information concerning one or more desired payment mechanisms and wherein said information is retrieved using the telephone for use in processing the transaction.

36. A method of securely conducting transactions over a network, comprising:

A. initiating, in response to receipt of a text message seeking to initiate a transaction, a telephone call over the telephone network;

B. obtaining, at a server, from the party to which the text message was initiated, an identifier unique to the party to which the telephone call was directed;

C. communicating, by the server, said identifier to an entity that is enabled to authenticate the identifier by checking said identifier against a database of authorized users; and

D. if at least said identifier matches that of an entity that is registered in said database, performing instantly the transaction by transferring funds from a first financial account to a second financial account using a second network.

37. The method of claim 36 in which said identifier is one that has been assigned by said entity to a device on which said call is being made.

38. The method of claim 36 wherein the first financial account is selected from a group consisting of a bank account, a credit card account, a debit card account and a prepaid card account.

39. The method of claim 36 wherein the transaction is cleared through an entity selected from a group consisting of an Electronic Funds Transfer network, a credit card network and an Automated Clearing House network.

40. The method of claim 36 wherein the second financial account is selected from a group consisting of a bank account, a credit card account, a debit card account and a prepaid card account.

41. The method of claim 36 wherein the database comprises information concerning one or more desired payment mechanisms and wherein said payment mechanisms are linked to said telephone number.

42. The method of claim 36 wherein the database comprises information concerning one or more desired payment mechanisms and wherein said information is retrieved using the telephone for use in processing the transaction.