Secure networked transaction system

• US 7,853,523 B2
• Filed: 01/21/2009
• Issued: 12/14/2010
• Est. Priority Date: 12/16/1999
• Status: Expired due to Fees

• Current Assignee: Kioba Processing, LLC (IP Investments Group LLC)
• Original Assignee: Ucetrans KG LLC (Intellectual Ventures LLC)
• Inventors: Krueger, Scott, Goodman, Daniel
• Primary Examiner(s): Abdi; Kambiz
• Assistant Examiner(s): Rosen; Elizabeth H
• Application Number:
  US12/356,868
• Publication Number:
  US 20090125430A1
• Time in Patent Office: 692 Days
• Field of Search: 705/44
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• 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 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• CPC Class Codes: G06Q 20/3674 involving authentication
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 20/383 Anonymous user system
• 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 20/401 Transaction verification
• CPC Class Codes: G06Q 20/4012 Verifying personal identification numbers [PIN]
• CPC Class Codes: G06Q 20/403 Solvency checks
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

A method and system for approving a transaction between a customer and a merchant including the steps of transmitting a transaction request from a customer to a merchant; transmitting a verification request from the merchant to a verification entity, the verification request comprising first data; the customer device transmitting second data to the verification entity; and the verification entity performing a verification step by using the first data and the second data to verify if the transaction should be approved.

Claims

1. A method of approving a transaction between a customer and a merchant, the method comprising:

receiving, by a verification computing system, a verification request for a transaction from a merchant device, the verification request comprising first data indicating a first portion of payment account information;

transmitting, by the verification computing system, a first verification string to the merchant device;

receiving, by the verification computing system, second data indicating a second portion of payment account information from a customer device;

determining a payment account number based at least on the first portion and the second portion of payment account information;

initiating approval of the transaction using the payment account number; and

upon determining that the transaction is approved, transmitting, by the verification computing system, a second verification string to the customer device, wherein the transaction is verified and/or completed by the merchant device in response to the merchant device receiving the second verification string from the customer device and the merchant device matching the first and the second verification strings.

2. The method of claim 1, wherein the first data comprises at least part of a debit card account number and the second data comprises at least part of a PIN number associated with the debit card account number.

3. The method of claim 1, wherein the first data comprises at least part of a credit card account number and the second data comprises at least part of a card security code associated with the credit card account number.

4. The method of claim 1, further comprising:

transmitting a transaction identifier to the merchant device; and

receiving a copy of the transaction identifier from the customer device.

5. The method of claim 1, wherein initiating approval of the transaction using the payment account number comprises:

transmitting the payment account number to a gateway device of a debit and/or credit card processing network; and

receiving an indicator of approval from the gateway device.

6. A system for approving a transaction between a customer and a merchant, the system comprising:

a computer readable medium; and

one or more processors configured to cause one or more computing devices to;

receive a verification request for a transaction from a merchant device, the verification request comprising first data indicating a first portion of payment account information;

initiate storage of the first data in the computer readable medium;

transmit a first verification string to the merchant device;

receive second data indicating a second portion of payment account information from a customer device;

initiate storage of the second data in the computer readable medium;

determine a payment account number based at least on the first portion and the second portion of payment account information;

initiate approval of the transaction using the payment account number; and

upon determining that the transaction is approved, transmit a second verification string to the customer device, wherein the transaction is verified and/or completed by the merchant device in response to the merchant device receiving the second verification string from the customer device and the merchant device matching the first and the second verification strings.

7. The system of claim 6, wherein the first data comprises at least part of a debit card account number and the second data comprises at least part of a PIN number associated with the debit card account number.

8. The system of claim 6, wherein the first data comprises at least part of a credit card account number and the second data comprises at least part of a card security code associated with the credit card account number.

9. The system of claim 6, wherein initiating approval of the transaction using the payment account number comprises:

transmitting the payment account number to a gateway device of a debit and/or credit card processing network; and

receiving an indicator of approval from the gateway device.

10. A tangible computer readable storage medium having computer-executable instructions stored thereon, the computer-executable instructions readable by a computing system comprising one or more computing devices, wherein the computer-executable instructions are executable on the computing system in order to cause the computing system to perform operations comprising:

receiving a verification request for a transaction from a merchant device, the verification request comprising first data indicating a first portion of payment account information;

storing the first data in a computer readable medium;

transmitting a first verification string to the merchant device;

receiving second data indicating a second portion of payment account information from a customer device;

storing the second data in a computer readable medium;

determining a payment account number based at least on the first portion and the second portion of payment account information;

initiating approval of the transaction using the payment account number; and

upon determining that the transaction is approved, transmitting a second verification string to the customer device, wherein the transaction is verified and/or completed by the merchant device in response to the merchant device receiving the second verification string from the customer device and the merchant device matching the first and the second verification strings.

11. The tangible computer readable storage medium of claim 10, wherein initiating approval of the transaction using the payment account number comprises:

transmitting the payment account number to a gateway device of a debit and/or credit card processing network; and

receiving an indicator of approval from the gateway device.

12. The tangible computer readable storage medium of claim 10, wherein the operations further comprise:

transmitting a transaction identifier to the merchant device; and

receiving a copy of the transaction identifier from the customer device.