System and method for verifying commercial transactions

• US 8,380,628 B1
• Filed: 07/17/2000
• Issued: 02/19/2013
• Est. Priority Date: 07/17/2000
• Status: Active Grant

• Current Assignee: Harris Intellectual Property, L.P.
• Original Assignee: Harris Intellectual Property, L.P.
• Inventors: Harris, David N.
• Primary Examiner(s): Alvarez, Raquel
• Application Number:
  US09/617,361
• Time in Patent Office: 4,600 Days
• Field of Search: 705/26, 705/75, 705/44, 705/26.1, 705/26.35, 705/26.82, 705/444, 340/5.4, 340/5.41, 379/114.14, 455406-411
• US Class Current: 705/44
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/023 the neutral party being a clearing house
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• 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
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions

Abstract

A system and method is disclosed for verifying a commercial transaction between a card-holder, a merchant, and a credit card company. The card-holder makes a purchase with the merchant using a full credit card number. The merchant submits a transaction approval request for approval with the credit card company. The credit card company executes conventional credit approval of the transaction approval request, as well as verifies the transaction approval request with the card-holder. An approval is sent to the merchant only after the transaction approval request is both conventionally approved by the credit card company and verified by the card-holder. The card-holder, or the credit card company, may initiate verification of the transaction approval request.

Claims

1. In a computer system, a method for verifying a commercial transaction between a user with credit card data and a merchant, said method comprising:

receiving instructions from an account-holder associated with said credit card data to selectively disable a previously enabled verification function;

receiving a transaction approval request from said merchant;

transmitting an approval to said merchant without verifying said transaction approval request with said account-holder responsive to the selectively disabled verification function;

receiving instructions from said account-holder to selectively enable said verification function;

receiving a subsequent transaction approval request from another merchant;

electronically verifying said subsequent transaction approval request with said account-holder, responsive to the selectively enabled verification function, via a communication with said account-holder separate from said communication with said another merchant; and

transmitting an approval to said another merchant only if said subsequent transaction approval request is verified by said account-holder or if said verification function has again been disabled.

2. A method according to claim 1, wherein said step of verifying said subsequent transaction approval request with said account-holder includes prompting said account-holder to verify said transaction approval request.

3. A method according to claim 2, wherein said step of prompting said account-holder includes sending an electronic message to said account-holder.

4. A method according to claim 3, wherein said step of verifying said subsequent transaction approval request with said account-holder includes receiving a reply to said electronic message.

5. A method according to claim 2, wherein said step of prompting said account-holder includes placing an automated telephone call to said account-holder.

6. A method according to claim 5, wherein said step of placing an automated telephone call to said account-holder includes:

establishing a telephone connection with said account-holder;

reciting at least a portion of said subsequent transaction approval request to said account holder; and

receiving verification instructions from said account-holder with respect to said subsequent transaction approval request.

7. A method according to claim 6, wherein said step of placing an automated telephone call to said account-holder further includes receiving an authentication code from said account-holder prior to said step of reciting at least a portion of said subsequent transaction approval request to said account holder.

8. A method according to claim 1, wherein said step of electronically verifying said subsequent transaction approval request with said account-holder includes disabling any notification to said account-holder and waiting for said account-holder to initiate communication with said computer system.

9. A method according to claim 8, wherein said communication with said computer system is initiated by said account-holder via a network connection.

10. A method according to claim 8, wherein said step of electronically verifying said subsequent transaction approval request with said account-holder includes:

receiving a connection request from said account-holder via a network;

establishing a network connection with said account-holder;

authenticating said account-holder;

transmitting at least a portion of said subsequent transaction approval request to said account-holder; and

receiving verification instructions from said account-holder with respect to said subsequent transaction approval request.

11. A method according to claim 8, wherein said communication with said computer system is initiated by said account-holder via a telephone connection.

12. A method according to claim 8, wherein said step of electronically verifying said subsequent transaction approval request with said account-holder includes:

receiving a telephone call from said account-holder;

authenticating said account-holder;

reciting at least a portion of said subsequent transaction approval request to said account-holder; and

receiving verification instructions from said account-holder with respect to said transaction approval request.

13. A method according to claim 1, wherein said step of electronically verifying said subsequent transaction approval request with said account-holder includes automatically disclaiming said approval request if said subsequent transaction approval request is not verified by said account-holder within a predetermined time interval.

14. A method according to claim 13, further comprising transmitting notice to said account-holder when said subsequent transaction approval request is disclaimed.

15. A method according to claim 1, wherein said step of electronically verifying said subsequent transaction approval request with said account-holder includes:

transmitting a verification request identifying said subsequent transaction approval request to a third-party for verification of said subsequent transaction approval request with said account-holder; and

receiving indicia of verification from said third-party indicating whether said account-holder verified said subsequent transaction approval request.

16. A computer system for verifying a commercial transaction between a user with credit card data and a merchant, said computer system comprising:

a processing unit for processing data and code;

memory for storing said data and said code, said code including

a merchant communications module operative to facilitate a connection with said merchant for receiving a transaction approval request,

an account-holder communications module operative to facilitate a separate connection with an account-holder associated with said credit card data for said account-holder to verify said transaction approval request, and

an authorization module responsive to receipt of said transaction approval request and operative to transmit an approval to said merchant if said transaction approval request is verified, said authorization module being configurable to cooperate with said account-holder communication module for obtaining account-holder verification of said transaction approval request or to automatically verify said transaction approval request without obtaining verification from said account-holder, said authorization module including an interactive verification module operative to wait for said account-holder to initiate said connection with said account-holder communication module, any prior notification to said account-holder regarding said transaction being disabled.

17. In a computer system, a method for verifying a commercial transaction between a user with credit card data and a merchant, said method comprising:

receiving a transaction approval request from said merchant;

electronically verifying said transaction approval request with an account-holder associated with said credit card data via a communication with said account-holder separate from said communication with said merchant, said electronic verification including disabling any notification to said account-holder and waiting for said account-holder to initiate communication with said computer system;

enabling the account-holder to disable the step of electronically verifying;

automatically verifying the transaction approval request, if the account-holder has disabled the step of electronically verifying; and

transmitting an approval to said merchant if said transaction approval request is verified.

18. A computer-readable medium having code embodied therein for causing an electronic device to perform the method of claim 17.