Dual transaction authorization system and method

• US 8,296,228 B1
• Filed: 11/16/2000
• Issued: 10/23/2012
• Est. Priority Date: 11/22/1999
• Status: Active Grant

• Current Assignee: Harry Thomas Kloor
• Original Assignee: Harry Thomas Kloor
• Inventors: Kloor, Harry Thomas
• Primary Examiner(s): Thein, M.
• Application Number:
  US09/714,018
• Time in Patent Office: 4,359 Days
• Field of Search: 705/44, 705/45, 705/26, 705/27, 705/75, 705/67, 705/38, 705/39, 705/40, 705/41, 705/42, 705/43
• 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 20/12 specially adapted for electronic shopping systems
• 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

Abstract

A general feature of the present invention is to provide a dual authorizing system and method to prevent fraudulent use of credit cards and E-signature. To do so, a third party verifier is provided to ensure that the rightful owner of the credit card or E-signature approves of the transaction before the purchase is completed between the merchant and the credit card user. This is accomplished by linking the owner'"'"'s Internet address or addresses or other communication device address to the credit card number, and storing this information with the third party verifier, such as an Authorization agent. Once the card is used to make a purchase, the Authorization agent is notified of the purchase. The Authorization agent then pulls the corresponding Internet address or communication address for the credit card number, then sends an approval request message to the owner at the owner'"'"'s Internet address or communication device. This way, only the owner who had previously registered the credit card number with the Authorization agent is notified of the pending purchase and can approve or deny the purchase and, thereby preventing unauthorized user from making purchase using the owner'"'"'s credit card.

Claims

1. A method for verifying that an authorized entity is using a credit card through an Internet, comprising:

entering a password that is known only to an authorized entity that can use a corresponding credit card;

monitoring a latest Internet address where the authorized entity is visiting through the Internet;

receiving a request to authorize a transaction from an Online business with a corresponding Internet address, wherein the request is received by an authorization agent, wherein the authorization agent is a bank that issued the credit card to the authorized entity, a credit card company, or an agent of the bank or the credit card company, and wherein the request includes a credit card number; and

comparing the latest Internet address with the corresponding Internet address from the Online business;

if the Internet addresses match, then sending from the authorization agent to the Online business an approval response to the request;

if the Internet addresses do not match, then sending from the authorization agent to the Online business a non-approval response to the request.

2. A method according to claim 1, further including:

monitoring whether the authorized entity is still log onto the Internet;

if the authorized entity has logged off the Internet, then not approving any request for authorizing the transaction.

3. A method for parties to authenticate a transaction, comprising:

acquiring a corresponding contact information for each parties involved in a transaction;

providing an authorization agent to acquire the corresponding contact information, wherein the authorization agent is a bank, a credit card company, or an agent of the bank or the credit card company; and

sending electronically an authorization request from the authorization agent to the corresponding contact information for each of the parties involved in the transaction, wherein;

approving the transaction if all of the parties to the transaction approve of the authorization request; and

disapproving the transaction if any of the parties to the transaction disapprove of the authorization request.

4. A method according to claim 3, wherein the corresponding contact information is an IP address.