Method and system for securing payment transactions

• US 9,159,061 B2
• Filed: 09/24/2013
• Issued: 10/13/2015
• Est. Priority Date: 02/20/2008
• Status: Active Grant

• Current Assignee: Stripe, Inc.
• Original Assignee: Collective Dynamics LLC
• Inventors: Bacastow, Steven V.
• Primary Examiner(s): Glass, Shay S
• Application Number:
  US14/035,160
• Publication Number:
  US 20140025580A1
• Time in Patent Office: 749 Days
• Field of Search: 705/28
• US Class Current: 1/1
• CPC Class Codes: G06Q 20/027 involving a payment switch or gateway
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/203 Inventory monitoring
• CPC Class Codes: G06Q 20/204 comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit
• CPC Class Codes: G06Q 20/26 Debit schemes, e.g. "pay now"
• CPC Class Codes: G06Q 20/322 Aspects of commerce using mobile devices [M-devices]
• CPC Class Codes: G06Q 20/327 Short range or proximity payments by means of M-devices
• CPC Class Codes: G06Q 20/356 Aspects of software for card payments
• CPC Class Codes: G06Q 20/36 using electronic wallets or electronic money safes
• 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 20/4012 Verifying personal identification numbers [PIN]
• CPC Class Codes: G06Q 20/425 using two different networks, one for transaction and one for security confirmation

Abstract

A method for facilitating the widespread use of the PIN-Debit payment method for Internet “eCommerce” and mobile payments sales which requires little or no change for the cardholders, merchants, debit networks and card issuers based primarily on the introduction of a layer of middleware and wherein the Debit Networks and Issuing Banks may customize the implementation of the services based on individual strategy and cardholder preferences.

Claims

1. A method for processing a secure payment transaction conducted at a location operated by a merchant comprising the steps of:

receiving from a consumer in connection with a registration event that is completed prior to the secure payment transaction, a mobile PIN and a card number associated therewith, the mobile PIN and the card number received at a secure payment service computing device;

in association with the registration event, receiving, at the secure payment service computing device from an issuer bank, an issuer PIN associated with the card number;

in connection with the secure payment transaction, which is initiated after the registration event, receiving payment data at a payment acquirer computing device, the payment data received from a device at the location operated by the merchant, the payment data comprising the card number;

in association with the secure payment transaction, analyzing the payment data with the payment acquirer computing device to identify the payment data as requiring the mobile PIN;

upon identifying the payment data as requiring the mobile PIN, forwarding the payment data from the payment acquirer computing device to the secure payment service computing device, the secure payment service computing device;

communicating an approval request to a mobile telephone of the consumer;

after receiving an approval response from the consumer'"'"'s mobile telephone, the secure payment service computing device adding the issuer PIN to the payment data, and transmitting the payment data and the issuer PIN to a secure payment network for processing; and

after transmitting the payment data and the issuer PIN to the secure payment network for processing, the secure payment service computing device transmitting a payment confirmation to the merchant.

2. The method of claim 1, wherein the location is one of an ecommerce site or a retail point of sale.

3. The method of claim 1, wherein the card number is associated with one of a credit card, a debit card, or a gift card.

4. The method of claim 1, wherein the secure payment network is one of a debit network, a credit card network, or an alternative payment network.

5. The method of claim 1, wherein the issuer PIN is one of an alternate PIN, a physical PIN, or a partial PIN.

6. The method of claim 5, wherein the partial PIN comprises one of a blank, a zero, or a null value.

7. The method of claim 1, wherein the device at the location operated by the merchant is one of a POS device, a mobile telephone, or a hosting computer.

8. A system for processing a secure payment transaction, the system comprising:

a rule database, the rule database comprising configuration settings whereby the configuration settings are used to determine the criteria to be used to authorize the secure payment transaction;

a secure payment service computing device in communication with the rule database and with one or more payment networks, the secure payment service computing device comprising computer-readable instructions that when executed by one or more processors are configured to;

receive the configuration settings from one or more of a consumer, an issuer entity, a payment network, and a merchant;

store the configuration settings in the rule database;

receive from a first consumer in connection with a registration event that is completed prior to the secure payment transaction, a mobile PIN and a first payment account identifier associated therewith, the mobile PIN and the payment account identifier stored in the rule database and associated with the configuration settings;

in connection with the secure payment transaction, which is initiated after the registration event, receive payment data at the secure payment service computing device, the payment data received from a first merchant, the payment data comprising the first payment account identifier;

analyzing the payment data with the secure payment service computing device to identify the payment data as requiring the mobile PIN;

upon identifying the payment data as requiring the mobile PIN, the secure payment service computing device further configured to;

communicate an approval request to a mobile telephone of the first consumer;

after receiving an approval response from the first consumer'"'"'s mobile telephone, transmitting the payment data to a first payment network for processing; and

after receiving an approval response from the first payment network,

transmitting a payment confirmation to the merchant.

9. The system of claim 8, wherein the payment data received from the first merchant is received from one of a retail point of sale, a mobile telephone, or an ecommerce site.

10. The system of claim 8, wherein the first payment account identifier is associated with one of a credit card, a debit card, or a gift card.

11. The system of claim 8, wherein the first payment network is one of a debit network, a credit card network, or an alternative payment network.

12. The system of claim 8, wherein the approval response is communicated by entry into the first consumer'"'"'s mobile telephone of a biometric factor of the consumer which is one of a finger print, a voice print, or a geometric facial scan.

13. The system of claim 8, wherein the approval response is transmitted in the form of a token released from the first consumer'"'"'s mobile telephone to the secure payment service computing device.