Method and system for securing a third party payment electronic transaction

• US 8,290,876 B1
• Filed: 01/12/2011
• Issued: 10/16/2012
• Est. Priority Date: 01/12/2011
• Status: Active Grant

• Current Assignee: SDP Development Incorporated
• Original Assignee: Steven Douglas Powell
• Inventors: Powell, Steven Douglas
• Primary Examiner(s): Hewitt, II, Calvin L
• Assistant Examiner(s): WEST, THOMAS C
• Application Number:
  US13/005,259
• Time in Patent Office: 643 Days
• Field of Search: 705 50- 79
• US Class Current: 705/64
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/223 based on the use of peer-to-peer networks
• CPC Class Codes: G06Q 20/325 using wireless networks
• CPC Class Codes: G06Q 20/3274 using a pictured code, e.g. barcode or QR-code, being displayed on the M-device
• CPC Class Codes: G06Q 20/3278 RFID or NFC payments by means of M-devices
• CPC Class Codes: G06Q 20/425 using two different networks, one for transaction and one for security confirmation

Abstract

A method and system are provided for securing a third-party payment electronic transaction, allowing a customer to seal a self-issued electronic voucher and thereby finalize a payment amount; such electronic voucher is then transmitted to a vendor and then forwarded to a payor for approval and payment or to a creditor in satisfaction of a debt.

Claims

1. A method for securing a third party payment electronic transaction comprising:

electronically maintaining a third party payment account between a payor device and a customer;

programmably configuring a customer transaction device, the customer transaction device communicating with a payee transaction device;

the payor device delivering an electronic transaction token from the payor to the customer transaction device;

the customer transaction device generating a first validation code based on customer-possessed information including at least;

the electronic transaction token and a first version of a transaction amount; and

, including the first validation code in a first portion of an electronic voucher and transmitting to the payee transaction device;

the payee transaction device adding a second version of the transaction amount in a second portion of the electronic voucher;

the payee transaction device transmitting the electronic voucher to the payor device;

the payor device receiving the electronic voucher and independently generating a second validation code for the customer based at least on the electronic transaction token and the second version of the transaction amount; and

,

validating by a processor a transaction amount for payment from the payor to the payee, the validation including comparing the second validation code with the first validation code.

2. The method as recited in claim 1, further comprising disbursing the payment amount from the payor to the payee responsive to a match between said first and second validation codes.

3. The method as recited in claim 1, wherein the generation of the first and second validation codes includes executing a hashing operation on a combination of at least the corresponding first or second version of the transaction amount, the electronic transaction token and a personal identification number (PIN).

4. The method as recited in claim 3, wherein the hashing operation utilizes Hash-based Message Authentication Codes (HMAC).

5. The method as recited in claim 1, wherein an electronic voucher is issued to the payee transaction device, the electronic voucher being redeemable for payment from the payor.

6. The method as recited in claim 1, wherein the payor delivers a plurality of electronic transaction tokens to the customer to be stored on the customer transaction device.

7. The method as recited in claim 1, wherein the customer transaction device transmits the first validation code to the payee transaction device via a transmission method selected from at least one of the following:

barcode, Bluetooth, Wi-Fi, zigbee, infrared modulation, visible LED modulation, haptic modulation, user spoken sequence, Radio Frequency IDentification (RFID), and Near Field Communication (NFC).

8. The method as recited in claim 1, wherein the payor transmits the electronic transaction tokens to the customer transaction device via a transmission method selected from one of the following:

Multimedia Messaging Service (MMS), Short Messaging Service (SMS), and secure SMS.

9. The method as recited in claim 1, wherein the payor provides the electronic transaction tokens to the customer transaction device via an independent transport provider.

10. The method as recited in claim 7, wherein the first validation code is truncated to conform to Electronic Data Interchange (EDI) standards.

11. A system for securing a third party payment electronic transaction comprising:

a payor unit including a processor, and a nontransitory computer readable medium storing executable instructions that when executed cause the payor processor to perform the steps of;

establishing a third party payment account between the payor and a customer, and delivering an electronic transaction token to a customer transaction device;

a programmably configured customer transaction device including a processor and a nontransitory computer readable medium having executable instructions that when executed cause the customer transaction device processor to perform the steps of;

generating a first validation code based on customer-possessed information including at least;

the electronic transaction token and a first version of a transaction amount; and

, including the first validation code in a first portion of an electronic voucher and causing transmission to the payee transaction device; and

,

a payee point of sale unit including a processor, and a nontransitory computer readable medium having executable instructions that when executed cause the payee point of sale processor to perform the steps of;

adding a second version of the transaction amount in a second portion of the electronic voucher; and

, causing transmission of the electronic voucher to the payor unit;

wherein the nontransitory computer readable medium of the payor unit further includes executable instructions that when executed cause the payor processor to perform the steps of;

receiving the electronic voucher and independently generating a second validation code for the customer based at least on the electronic transaction token and the second version of the transaction amount; and

, validating a transaction amount for payment from the payor to the payee, the validation including comparing the second validation code with the first validation code.

12. The system as recited in claim 11, wherein the nontransitory computer readable medium of the payor unit further includes executable instructions that when executed cause the payor processor to perform the step of:

disbursing the payment amount to the payee responsive to a match between said first and second validation codes.

13. The system as recited in claim 11, wherein the generation of the first and second validation codes by the customer transaction device and payor unit respectively include executing a hashing operation on a combination of at least the corresponding first or second version of the transaction amount, the electronic transaction token, and a personal identification number (PIN).

14. The system as recited in claim 11, wherein the electronic voucher is redeemable for payment from the payor.

15. The system as recited in claim 11, wherein the customer transaction device has a memory to maintain a plurality of electronic transaction tokens the payor unit provides to the customer transaction device.

16. The system as recited in claim 11, wherein the customer transaction device includes a transmission module transmitting the first validation code to the payee point of sale unit, the transmission module including at least one device selected from the following:

a screen of the customer transaction device, a Bluetooth transceiver, a Wi-Fi transceiver, a zigbee transceiver, an infrared light modulator, a visible light modulator, a haptic modulator, a Radio Frequency IDentification (RFID) transceiver, and a Near Field Communication transceiver (NFC).

17. The system as recited in claim 11, wherein the nontransitory computer readable medium of the payor unit further includes executable instructions that when executed cause the payor processor to perform the step of:

causing transmission of the transaction tokens to the customer transaction device via a transmission type selected from the following;

Multimedia Messaging Service (MMS), Short Message Service (SMS), and secure SMS.

18. The system as recited in claim 11, wherein the payor unit provides transaction tokens to the customer transaction device via an independent transport provider.

19. The system as recited in claim 13, wherein the hashing operation utilizes Hash-based Message Authentication Code (HMAC).

20. The system as recited in claim 16, wherein the first validation code is truncated to conform to Electronic Data Interchange (EDI) standards.