Centralized authorization and fraud-prevention system including virtual wallet for network-based transactions

• US 8,396,810 B1
• Filed: 12/31/2001
• Issued: 03/12/2013
• Est. Priority Date: 12/29/2000
• Status: Active Grant

• Current Assignee: Zix Corporation (Open Text Corporation)
• Original Assignee: Zixit Corporation
• Inventors: Cook, David P.
• Primary Examiner(s): Nigh, James D
• Application Number:
  US10/038,115
• Time in Patent Office: 4,089 Days
• Field of Search: 700/232, 705/41, 705 50- 79
• US Class Current: 705/67
• CPC Class Codes: G06Q 20/351 Virtual cards
• CPC Class Codes: G06Q 20/3572 Multiple accounts on card
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions

Abstract

A system and method for authorizing certain aspects of network based transactions between a customer and a merchant is disclosed.

Claims

1. A system for authorizing a transaction between a customer and an e-commerce merchant, the system comprising:

an electronic wallet maintained in a server including payment options, each payment option including personal payment information associated with a customer, one payment option being designated as a default payment option; and

a proxy device, in communication with the server and independent of the customer and a merchant, that includes a processor that is programmed to;

receive an authorization request from the merchant to process a transaction by the customer;

verify the authorization request including verifying the merchant;

create an authorization form that includes a prompt for a wallet identifier, an entry phrase, and for an indication to use the default payment option;

receive a response that includes a wallet identifier, an entry phrase, and an indication to use the default payment option;

verify the wallet identifier and entry phrase;

determine whether a default payment option has previously been designated by the customer in the wallet associated with the wallet identifier;

generate, in response to the authorization request, an approval request that includes the default payment option based on the received indication to use the default payment option;

forward the approval request including the default payment option designation to the customer for approval before completing the transaction; and

process the transaction on behalf of the merchant and the customer using the default payment option, the proxy device processing the transaction and returning to the merchant an approval code associated with the transaction without transferring any of the personal payment information associated with the customer to the merchant.

3. The system of claim 1, wherein the proxy device returns transaction information to the merchant, the transaction information including non-confidential information associated with the customer.

4. The system of claim 1, wherein the proxy device digitally signs and returns a self-validating transaction certificate including the approval code.

5. The system of claim 1, wherein the proxy device presents the payment options to the customer and receives the payment option designation from the customer.

6. The system of claim 5, wherein the proxy device presents the payment options to the customer, each payment option including an associated logo.

7. The system of claim 5, wherein the proxy device presents the payment options as a web page.

8. The system of claim 5, wherein the proxy device presents a logo associated with the merchant.

9. The system of claim 1, wherein the proxy device processes an e-mail associated with the transaction on behalf of the merchant, where the personal payment information includes an e-mail address.

18. The system of claim 1, wherein the proxy presents the wallet to the customer for selecting a payment option for the transaction if the proxy device determines that the customer has not designated the default payment option.

2. A method for authorizing a transaction between a customer and an e-commerce merchant, the method comprising:

providing a wallet including payment options, each payment option including personal payment information associated with a customer, one payment option being designated as a default payment option;

receiving, by a proxy device, independent of the customer and a merchant, an authorization request from the merchant to process a transaction by the customer;

verifying, by the proxy device, the authorization request including verifying the merchant;

creating, by the proxy device, an authorization form that includes a prompt for a wallet identifier, an entry phrase, and for an indication to use the default payment option;

receiving, by the proxy device, a response that includes a wallet identifier, an entry phrase, and indication to use the default payment option;

verifying, by the proxy device, the wallet identifier and entry phrase;

determining, by the proxy device, whether a default payment option has previously been designated by the customer in the wallet associated with the wallet identifier;

generating, by the proxy device and in response to the authorization request, an approval request that includes the default payment option based on the received indication to use the default payment option;

forwarding, by the proxy device, the approval request including the default payment option designation to the customer for approval before completing the transaction; and

processing the transaction by the proxy device on behalf of the merchant and the customer using the default payment option, the proxy device processing the transaction and returning to the merchant an approval code associated with the transaction without transferring any of the personal payment information associated with the customer to the merchant.

10. The method of claim 2, wherein processing further comprises returning transaction information to the merchant, the transaction information including non-confidential information associated with the customer.

11. The method of claim 2, wherein processing further comprises signing and returning a self-validating transaction certificate including the approval code.

12. The method of claim 2, wherein processing further comprises presenting the payment options to the customer and receiving the payment option designation from the customer.

13. The method of claim 12, wherein presenting further comprises presenting the payment options to the customer, each payment option including an associated logo.

14. The method of claim 12, wherein presenting further comprises presenting the payment options as a web page.

15. The method of claim 12, wherein presenting further comprises presenting a logo associated with the merchant.

16. The method of claim 2, further comprising processing an e-mail associated with the transaction on behalf of the merchant, where the personal information includes an e-mail address.

17. A non-transitory computer-readable medium operatively coupled to a processor and including instructions, which, when executed by the processor, causes the processor to perform operations comprising:

providing a wallet including payment options, each payment option including personal payment information associated with a customer, one payment option being designated as a default payment option;

receiving an authorization request from the merchant to process a transaction by the customer;

verifying the authorization including verifying the merchant;

creating an authorization form that includes a prompt for a wallet identifier, an entry phrase, and for an indication to use the default payment option;

receiving a response that includes a wallet identifier, an entry phrase, and an indication to use the default payment option;

verifying the wallet identifier and entry phrase;

determining whether a default payment option has previously been designated by the customer in the wallet associated with the wallet identifier;

generating, in response to the authorization request, an approval request that includes the default payment option based on the received indication to use the default payment option;

forwarding the approval request including the default payment option designation to the customer for approval before completing the transaction; and

processing the transaction on behalf of the merchant and the customer using the default payment option, and returning to the merchant an approval code associated with the transaction without transferring any of the personal payment information associated with the customer to the merchant.