Payment system clearing for transactions

• US 7,827,101 B2
• Filed: 01/10/2003
• Issued: 11/02/2010
• Est. Priority Date: 01/10/2003
• Status: Active Grant

• Current Assignee: First Data Corporation (Fiserv Incorporated), Western Union
• Original Assignee: First Data Corporation (Fiserv Incorporated), Western Union
• Inventors: Mascavage, John Joseph III
• Primary Examiner(s): Weisberger; Richard C
• Application Number:
  US10/340,570
• Publication Number:
  US 20040139008A1
• Time in Patent Office: 2,853 Days
• Field of Search: 705/40, 705/65, 705/39
• US Class Current: 705/39
• 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 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/14 specially adapted for billing systems
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions

Abstract

According to the invention, a method for a payor paying a merchant using a payment system is disclosed. In one step, account information is received that can be used for receiving funds using a money handler. The account information identifies an account of the payor. A token is generated that correlates to the account information. The token is sent to the merchant that uniquely identifies the payor and the merchant. The token, which corresponds to a payment, is received. It is authenticated that the token was presented by the merchant. The payment is transferred from the payor to the merchant with the payment system.

Claims

1. A method for a payor paying a merchant using a payment system, the method comprising:

using a payment enabler having a computer processor and a database to receive account information that is usable to receive funds from a money handler in order to pay for the purchase an item from a merchant, the account information received from the payor, wherein the account information identifies an account of the payor, wherein the account information includes an account number of the payor;

generating a token using the processor of the payment enabler, wherein the token comprises an electronic data file having a user identifier that identifies the payor but does not include the account number, and a merchant identifier that identifies the merchant;

the payment enabler issuing the token to the merchant;

the payment enabler receiving the token back from the merchant when the payor confirms that the item is to be purchased from the merchant;

the payment enabler authenticating that the token was presented by the merchant by using the processor to check that the merchant identifier from the received token is the same as that previously transmitted from the payment enabler to the merchant; and

transferring the payment from the payor to the merchant with the payment system.

2. The method for the payor paying the merchant using the payment system as recited in claim 1, further comprising a step of determining if the token has violated one or more of the rules associated with the token.

3. The method for the payor paying the merchant using the payment system as recited in claim 1, wherein the token comprises one or more rules that regulate use of the token.

4. The method for the payor paying the merchant using the payment system as recited in claim 1, wherein the token comprises a code that can be analyzed by the computer processor of the payment enabler to determine if information in the token has been modified.

5. The method for the payor paying the merchant using the payment system as recited in claim 1, further comprising receiving at the payment enabler a request from the payor to revoke the token.

6. The method for the payor paying the merchant using the payment system as recited in claim 1, wherein the token is retained by the merchant for use in future transactions between the payor and the merchant.

7. The method for the payor paying the merchant using the payment system as recited in claim 1, wherein the token can only be used by the merchant to the exclusion of other merchants.

8. The method for the payor paying the merchant using the payment system as recited in claim 1, further comprising the payor selecting the item from a web site of the merchant prior to contacting the payment enabler.

9. The method for the payor paying the merchant using the payment system as recited in claim 8, further comprising the payor proceeding to a check out display screen, wherein the display screen includes login information to access the payment enabler.

10. The method for the payor paying the merchant using the payment system as recited in claim 9, wherein the login information includes fields for entering a user name and password, and further comprising receiving at the payment enabler the user name and password and authenticating the payor based on the user name and password.

11. The method for the payor paying the merchant using the payment system as recited in claim 1, further comprising the payment enabler comparing the token from the merchant with a list of revoked tokens stored in the database.

12. The method for the payor paying the merchant using the payment system as recited in claim 1, further comprising the payment enabler transmitting confirmation information to the payor that payment has been effectuated.