Secure and efficient payment processing system with account holder defined transaction limitations

• US 8,170,954 B2
• Filed: 11/13/2001
• Issued: 05/01/2012
• Est. Priority Date: 10/01/1999
• Status: Active Grant

• Current Assignee: CardinalCommerce Corporation (Visa, Inc.)
• Original Assignee: CardinalCommerce Corporation (Visa, Inc.)
• Inventors: Keresman, Michael A. III, Bhagavatula, Ravishankar, Balasubramanian, Chandra, Sherwin, Francis M.
• Primary Examiner(s): Patel, Jagdish
• Assistant Examiner(s): Hamilton, Sara
• Application Number:
  US10/011,690
• Publication Number:
  US 20020046169A1
• Time in Patent Office: 3,822 Days
• Field of Search: 705/35, 705/42, 705/44
• US Class Current: 705/44
• 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 for carrying out commercial transactions includes establishing a transaction processing system on an electronic communications network, and establishing an account within the transaction processing system for a corresponding account holder. One or more descriptions of acceptable future commercial transactions related to the account are obtained from the account holder. Commercial transactions carried out via the transaction processing system are administered, and it is verified that administered commercial transactions related to the account meet one or more of the descriptions obtained.

Claims

1. A method of processing commercial transactions carried out over the Internet between account holders and participating merchants, said method comprising the steps of:

(a) establishing account privileges defining boundaries outside of which transactions are not to be authorized for each account holder'"'"'s account, said privileges including merchant-specific virtual purchase orders selectively set up by the account holders via manipulation of the account privileges, wherein those transactions which fall under the virtual purchase orders are authorized;

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

(c) authenticating the buyer as an account holder in response to receiving the buyer'"'"'s purchase request, wherein the authenticating is performed by a processor;

(d) receiving transaction details from the participating merchant after authenticating the buyer, said transaction details including a cost for the selected items; and

,

(e) authorizing completion of the transaction when the transaction details do not violate established account privileges and the account holder'"'"'s account is full enough to cover the cost, wherein the authorizing is performed by a processor.

2. The method according to claim 1, wherein the boundaries defined by the account privileges preclude selected merchants from having transactions authorized for completion.

3. The method according to claim 1, wherein the boundaries defined by the account privileges preclude single transactions over a designated cost limit from being authorized for completion.

4. The method according to claim 1, wherein the boundaries defined by the account privileges preclude from being authorized for completion transactions within a determined time period having an aggregate cost over a designated cost limit.

5. The method according to claim 1, wherein the boundaries defined by the account privileges preclude from being authorized for completion transactions occurring outside a defined time frame.

6. The method according to claim 1, wherein the boundaries defined by the account privileges preclude from being authorized for completion transactions occurring at a rate faster than a defined frequency.

7. The method according to claim 1, further comprising the step of:

(f) notifying an account holder when transaction details are received that violate that account holder'"'"'s account privileges.

8. The method according to claim 7, further comprising the steps of:

(g) receiving from the account holder an override request in response to a notice that the transaction details violate the account holder'"'"'s account privileges; and

,

(h) authorizing completion of the transaction.

9. The method according to claim 1, wherein at least one of the virtual purchase orders persists for a plurality of matching transactions.

10. The method according to claim 1, wherein the account privileges are independent of account balance and/or account credit limit.

11. The method of claim 1, further comprising:

(f) communicating settlement information of the transaction to a funding source.

12. The method of claim 11, said communicating comprising:

establishing a transaction record for the transaction if the transaction is authorized for completion;

retrieving the settlement information from the participating merchant;

comparing the settlement information to the transaction record to confirm the authenticity of the settlement information;

communicating confirmed settlement information to the funding source.

13. The method of claim 11, wherein the funding source acts on the settlement information without independent confirmation.

14. The method of claim 1, wherein the authenticating includes providing an authentication page to the buyer and receiving authentication credentials from the buyer via the authentication page.

15. The method of claim 1, wherein the authenticating is conducted upon receiving the buyer'"'"'s purchase request.

16. The method of claim 1, said method further comprising:

providing transaction fulfillment data to the participating merchant, wherein the transaction fulfillment data is used by the participating merchant to complete the transaction.

17. The method of claim 16, wherein the transaction fulfillment data includes information from the buyer'"'"'s account.

18. The method of claim 1, wherein the method is carried out by a third party different than the participating merchant and buyer.