Method and apparatus for executing cryptographically-enabled letters of credit

• US 8,355,991 B2
• Filed: 08/02/2011
• Issued: 01/15/2013
• Est. Priority Date: 04/03/1997
• Status: Expired due to Term

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: Walker Digital LLC (Walker Innovation Inc. (f/k/a Patent Properties, Inc.))
• Inventors: Walker, Jay S., Schneier, Bruce
• Primary Examiner(s): Augustin, Evens J
• Application Number:
  US13/196,546
• Publication Number:
  US 20110289005A1
• Time in Patent Office: 532 Days
• Field of Search: 705/51, 705/79
• US Class Current: 705/53
• CPC Class Codes: G06Q 20/00 Payment architectures, schemes or protocols apparatus for performing or posting payment transactions G07F7/08, G07F19/00; electronic cash registers G07G1/12
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/0855 involving a third party
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 20/3821 Electronic credentials
• CPC Class Codes: G06Q 20/38215 Use of certificates or encrypted proofs of transaction rights
• CPC Class Codes: G06Q 20/401 Transaction verification

Abstract

A method and apparatus for executing electronic transactions using cryptographically-enabled accounts stores cryptographically-enabled account information and instructions, receives a cryptographically-encoded permission certificate, and processes the received permission certificate to execute the transactions.

Claims

1. A method comprising:

receiving, by a trusted agent controller comprising at least one processor, an indication of at least one condition of a transaction between a buyer and a seller, the transaction comprising an exchange of at least one good for an amount of funds;

transmitting, by the trusted agent controller to a buyer terminal, a first digital permission certificate;

receiving, by the trusted agent controller from the buyer terminal, the first digital permission certificate,

in which the received first digital permission certificate is signed by the buyer terminal;

determining, by the trusted agent controller, that the at least one condition of the transaction has been satisfied;

after determining that the at least one condition of the transaction has been satisfied, authorizing, by the trusted agent controller, the seller to acquire the amount of funds; and

transmitting, by the trusted agent controller, a second digital permission certificate to a seller terminal.

2. The method of claim 1, in which the at least one condition of the transaction comprises at least one of:

a description of a good,

the amount of funds, and

information about delivery of the at least one good.

3. The method of claim 1, further comprising:

verifying payment by the buyer of the amount of funds.

4. The method of claim 1, further comprising:

transmitting an indication of the at least one condition to a verification authority.

5. The method of claim 1, further comprising:

verifying delivery of the at least one good to the buyer.

6. The method of claim 1, further comprising:

after determining that the at least one condition of the transaction has been satisfied, releasing, by the trusted agent controller, the amount of funds to the seller.

7. The method of claim 1, in which the first digital permission certification comprises a public key and a private key.

8. The method of claim 1, in which the trusted agent controller is operated on behalf of a bank.

9. The method of claim 1, further comprising:

transmitting the amount of funds from a trusted agent to the seller.

10. The method of claim 1, further comprising:

receiving the second digital permission certificate from the seller, in which the second permission certificate is signed.

11. The method of claim 1, in which the second digital permission certificate is for providing by the seller to a bank, the bank maintaining a cryptographically-enabled account that is associated with the transaction.

12. The method of claim 1, further comprising:

storing, by the trusted agent controller, information about the transaction in a database.

13. An apparatus comprising:

a processor; and

a computer readable storage device in communication with the processor, the computer readable storage device storing instructions that when executed by the processor are configured to direct the processor to perform;

receiving an indication of at least one condition of a transaction between a buyer and a seller, the transaction comprising an exchange of at least one good for an amount of funds;

transmitting to a buyer terminal a first digital permission certificate;

receiving from the buyer terminal, the first digital permission certificate,

in which the received first digital permission certificate is signed by the buyer terminal;

determining that the at least one condition of the transaction has been satisfied;

after determining that the at least one condition of the transaction has been satisfied, authorizing the seller to acquire the amount of funds; and

transmitting a second digital permission certificate to a seller terminal.

14. The apparatus of claim 13, in which the at least one condition of the transaction comprises at least one of:

a description of a good,

the amount of funds, and

information about delivery of the at least one good.

15. The apparatus of claim 13, the instructions being further configured to direct the processor to perform:

verifying payment by the buyer of the amount of funds.

16. The apparatus of claim 13, the instructions being further configured to direct the processor to perform:

transmitting an indication of the at least one condition to a verification authority.

17. The apparatus of claim 13, the instructions being further configured to direct the processor to perform:

verifying delivery of the at least one good to the buyer.

18. The apparatus of claim 13, the instructions being further configured to direct the processor to perform:

after determining that the at least one condition of the transaction has been satisfied, releasing the amount of funds to the seller.

19. The apparatus of claim 13, in which the first digital permission certification comprises a public key and a private key.

20. The apparatus of claim 13, the instructions being further configured to direct the processor to perform:

transmitting the amount of funds from a trusted agent to the seller.