Method, apparatus, and system for processing payments using a proxy credential

• US 9,235,839 B2
• Filed: 06/12/2014
• Issued: 01/12/2016
• Est. Priority Date: 01/21/2005
• Status: Active Grant

• Current Assignee: Samsung Electronics Co. Ltd.
• Original Assignee: Equispan
• Inventors: Dua, Robin
• Primary Examiner(s): Iwarere, Seye
• Application Number:
  US14/302,511
• Publication Number:
  US 20140297438A1
• Time in Patent Office: 579 Days
• Field of Search: 705/21, 705/26.41
• US Class Current: 1/1
• CPC Class Codes: G06K 7/10297 arrangements for handling protocols designed for non-contact record carriers such as RFIDs NFCs, e.g. ISO/IEC 14443 and 18092 cryptographic protocols H04L9/00; network security protocols H04L63/00; real-time communication protocols in data switching networks H04L65/00; network protocols for data switching network services H04L67/00
• CPC Class Codes: G06K 7/10415 the interrogation device being fixed in its position, such as an access control device for reading wireless access cards, or a wireless ATM banking machines in general G07F19/00
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/32 using wireless devices
• CPC Class Codes: G06Q 20/322 Aspects of commerce using mobile devices [M-devices]
• CPC Class Codes: G06Q 20/3227 using secure elements embedded in M-devices
• CPC Class Codes: G06Q 20/325 using wireless networks
• CPC Class Codes: G06Q 20/327 Short range or proximity payments by means of M-devices
• CPC Class Codes: G06Q 20/3278 RFID or NFC payments by means of M-devices
• CPC Class Codes: G06Q 20/3674 involving authentication
• 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 20/385 using an alias or single-use codes
• 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 20/401 Transaction verification
• CPC Class Codes: G06Q 20/4012 Verifying personal identification numbers [PIN]
• CPC Class Codes: G06Q 20/40145 Biometric identity checks
• CPC Class Codes: G06Q 20/42 Confirmation, e.g. check or permission by the legal debtor of payment
• CPC Class Codes: H04B 5/77 for interrogation
• CPC Class Codes: H04L 2463/102 applying security measure for e-commerce
• CPC Class Codes: H04L 63/0428 : wherein the data content is protected, e.g. by encrypting or encapsulating the payload
• CPC Class Codes: H04L 63/08 : for authentication of entities cryptographic mechanisms or cryptographic arrangements for entity authentication H04L9/32
• CPC Class Codes: H04L 63/083 : using passwords cryptographic mechanisms or cryptographic arrangements for entity authentication using a predetermined code H04L9/3226
• CPC Class Codes: H04L 63/18 : using different networks or channels, e.g. using out of band channels cryptographic mechanisms or cryptographic arrangements for key distribution involving distinctive intermediate devices or communication paths H04L9/0827; cryptographic mechanisms or cryptographic arrangements for authentication using a plurality of channels H04L9/3215
• CPC Class Codes: H04W 12/02 : Protecting privacy or anonymity, e.g. protecting personally identifiable information [PII]
• CPC Class Codes: H04W 12/033 : of the user plane, e.g. user's traffic
• CPC Class Codes: H04W 12/06 : Authentication
• CPC Class Codes: H04W 12/068 : using credential vaults, e.g. password manager applications or one time password [OTP] applications

Abstract

A novel system and methodology for conducting financial and other transactions using a wireless device. Credentials may be selectively issued by issuers such as credit card companies, banks, and merchants to consumers permitting the specific consumer to conduct a transaction according to the authorization given as reflected by the credential or set of credentials. The preferred mechanism for controlling and distributing credentials according to the present invention is through one or more publicly accessible networks such as the Internet wherein the system design and operating characteristics are in conformance with the standards and other specific requirements of the chosen network or set of networks. Credentials are ultimately supplied to a handheld device such as a mobile telephone via a wireless network. The user holding the credential may then use the handheld device to conduct the authorized transaction or set of transactions via, for example, a short range wireless link with a point-of-sale terminal.

Claims

1. A method of processing electronic payment transactions, the method comprising:

transmitting a wallet account identifier from a user device to a point-of-sale system terminal to initiate a payment transaction;

receiving a first payment transaction authorization request that includes the wallet account identifier at a wallet service provider system associated with the wallet account identifier, wherein the first payment transaction authorization request is received while the wallet service provider system is not wirelessly connected to the user device;

selecting a payment account from a wallet account associated with the wallet account identifier;

transmitting a second payment transaction authorization request that includes the selected payment account from the wallet service provider system, wherein one of the wallet service provider system and an issuer account management system administers the selected payment account;

receiving authorization of a payment transaction against the selected payment account at the wallet service provider system in a response to the second payment transaction authorization request; and

transmitting from the wallet service provider system a response to the first payment transaction authorization request, the response to the first payment transaction authorization request indicating whether the payment transaction is authorized.

2. The method of claim 1, further comprising:

setting up the wallet account within the wallet service provider system;

linking the wallet account identifier to the wallet account; and

adding one or more payment accounts from at least one of a credit account, a debit account, an electronic checking account, and a stored value account to the wallet account in the wallet service provider system.

3. The method of claim 2, wherein the payment accounts are administered by one or more issuer account management systems.

4. The method of claim 1, wherein the wallet account identifier linked to a wallet account can be updated by the wallet service provider system.

5. The method of claim 1, further comprising:

transmitting the wallet account identifier from the wallet service provider system to a wireless device corresponding to the user device via at least one of a wireless network and the Internet, and storing the wallet account identifier in a memory module of the wireless device.

6. The method of claim 1, wherein:

one payment account of one or more payment accounts in the wallet account that are linked to the wallet account identifier is set as a default payment account within the wallet account to be automatically selected by the wallet service provider system for the payment transaction, and when no payment account has been previously set as the default payment account, prompting the user to make a selection of one payment account of the linked one or more payment accounts for use in the payment transaction.

7. The method of claim 6, wherein the prompting of the user for selection of the payment account comprises:

displaying on the user device a message from a wallet account provider in response to a first payment transaction authorization request being received by the wallet service provider system, where the message includes at least one payment account of the linked one or more payment accounts in the wallet account; and

receiving the selection of the at least one payment account to be used for the payment transaction.

8. The method of claim 7, wherein the selection of the at least one payment account is received from the user with at least one of a wireless device and a computer.

9. The method of claim 7, wherein the selection of the at least one payment account is received via at least one of a wireless network and the Internet.

10. The method of claim 7, wherein the selection of the at least one payment account comprises:

transmitting a request from the wallet service provider system to the user device for a personal identification number (PIN) in addition to a request for a selection of the at least one payment account; and

transmitting the PIN and the selected at least one payment account entered by the user from the user device to the wallet service provider system via at least one of a wireless network and the Internet.

11. The method of claim 10, wherein the transmitted request includes, for display on the user device, at least one of a merchant name, a merchant location, a date of the payment transaction, a time of the payment transaction, and a monetary amount of the payment transaction.

12. The method of claim 10, further comprising:

verifying the received PIN entered by the user against the user'"'"'s wallet account in the wallet service provider system; and

when the PIN is verified, transmitting the second payment transaction authorization request that includes the selected payment account from the wallet service provider system wherein the selected at least one payment account is authorized by the issuer account management system, and a response is received by the wallet service provider system; and

transmitting the confirmation of the authorization from the wallet service provider system to the point-of-sale system terminal.

13. The method of claim 7, further comprising:

the user device and the wallet service provider system communicate via at least one of a persistent connection and a stateless connection via at least one of a wireless network and the Internet.

14. The method of claim 1, wherein the wallet account identifier is a number in a Bank Identification Number (BIN) range.

15. The method of claim 14, wherein the number assigned to the wallet account in the BIN range identifies at least one of a payment network and a credential issuer.

16. The method of claim 1, further comprising:

transmitting the wallet account identifier from a wireless device corresponding to the user device to the point-of-sale system terminal for the payment transaction via at least one of a Near Field Communication, Bluetooth communication, and other short-range wireless protocols.

17. The method of claim 16, wherein the transmission of the wallet account identifier from the wireless device to the point-of-sale system terminal is in response to the wireless device being within a predetermined proximity to the point-of-sale system terminal.

18. The method of claim 17, further comprising:

transmitting an interrogation message from the point-of-sale system terminal to the wireless device in connection with the purchasing transaction; and

upon receipt of the interrogation message by the wireless device, transmitting the wallet account identifier from the wireless device to the point-of-sale system terminal.

19. The method of claim 16, wherein the transmission of the wallet account identifier from the wireless device to the point-of-sale system terminal is effectuated when a passcode that is at least one of a Personal Identification Number (PIN) and biometric identification (ID) is input in the wireless device by the user and positively matched against at least one of a passcode and a biometric characteristic previously registered and stored in the wireless device'"'"'s memory module.

20. The method of claim 19, wherein the biometric ID is a fingerprint captured by a fingerprint scanner of the wireless device.

21. The method of claim 1, wherein the transmitting an authorization comprises:

transmitting the first payment transaction authorization request from the point-of-sale system terminal to the wallet service provider system in response to a positioning of the user device with the wallet account identifier within a predetermined proximity of a reader of the point-of-sale system terminal, the reader sending an interrogation message, and the user device transmitting the wallet account identifier to the reader in response to the interrogation message;

when the first payment transaction authorization request has been received by the wallet service provider system, verifying that the wallet account identifier is associated with an open and valid wallet account, and transmitting the second payment transaction authorization request from the wallet service provider system;

when the issuer account management system has approved the selected payment account for the payment transaction, receiving at the wallet service provider system an authorization in a response to the second payment transaction authorization request; and

upon receipt of the transaction authorization approval of the selected payment account, transmitting an authorization in a response to the first payment transaction authorization request to the point-of-sale system terminal from the wallet service provider system to complete the transaction.

22. The method of claim 21, further comprising:

when the wallet service provider system determines that the received wallet account identifier is not associated with an open and valid account, transmitting a transaction decline message from the wallet service provider system to the point-of-sale system terminal in response to the first payment transaction authorization request.

23. The method of claim 21, further comprising:

when the wallet service provider system determines that the received wallet account identifier is associated with an open and valid wallet account, the wallet service provider system selects a default payment account set by the user to complete the payment transaction or if there is no default payment account set, prompts the user to select a payment account from the at least one payment account linked with the wallet account.

24. The method of claim 1, further comprising:

initiating the payment transaction with at least one of a magnetic-stripe card, a smart card, a wireless device, and a computer system that stores the wallet account identifier to be transmitted to the point-of-sale system terminal.

25. The method of claim 1, wherein the second payment transaction authorization request is received and processed by the wallet service provider system that administers the selected payment account or when the selected payment account is not administered by the wallet service provider system, the second payment transaction authorization request is transmitted from the wallet service provider system to the issuer account management system that administers the selected payment account, via an applicable payment network.

26. The method of claim 1, further comprising:

storing user settings associated with the wallet account, including at least one of a default payment account setting, a Personal Identification Number (PIN), a username, a password, and biometric data.

27. The method of claim 1, further comprising:

linking a wallet account with one or more payment accounts that are at least one of a credit account, a debit account, an electronic checking account, and a stored value account.

28. The method of claim 27, wherein the linked credit account, debit account, and stored value account have an associated account number in a Bank Identification Number (BIN) range.

29. The method of claim 28, wherein the linked payment account number in the BIN range identifies at least one of a payment network and a credential issuer.

82. The method of claim 10, wherein the request for the PIN is sent to the user device by establishing a connection between the wallet service provider system and the user device according to the received first payment transaction authorization request.

83. The method of claim 1, wherein the wallet account identifier is transmitted to the point-of-sale system terminal via an RF transceiver.

30. A system to process electronic payment transactions, the system comprising:

a software programmed user device to transmit a wallet account identifier to initiate a payment transaction, wherein the software activates automatically when a point-of-sale terminal is detected;

a wallet service provider system associated with the wallet account identifier, the wallet service provider system being configured;

to receive a first payment transaction authorization request that includes the wallet account identifier while the wallet service provider system is not wirelessly connected to the user device,

to select a payment account from a wallet account associated with the wallet account identifier,

to transmit a second payment transaction authorization request that includes the selected payment account, wherein the selected payment account is administered by one of the wallet service provider system and an issuer account management system, and

to receive an authorization of a payment transaction in a response to the second payment transaction authorization request.

31. The system of claim 30, wherein one or more payment accounts from at least one of a credit account, a debit account, an electronic checking account, and a stored value account are linked to the wallet account to permit a payment transaction between the wallet service provider system and the point-of-sale system terminal using the wallet account identifier.

32. The system of claim 31, wherein one or more of the payment accounts are administered by the issuer account management system.

33. The system of claim 30, wherein the wallet service provider system is configured to update the wallet account identifier linked to the wallet account.

34. The system of claim 30, wherein the user device comprises a wireless device,

wherein the wallet service provider system is configured to transmit the wallet account identifier to the wireless device via at least one of a wireless network and the Internet, and

wherein the wireless device is configured to store the wallet account identifier in a memory module of the wireless device.

35. The system of claim 30, wherein the wallet service provider system is configured to prompt the user to make a selection of one payment account of the linked one or more payment accounts for use in the payment transaction when no payment account has been previously set as the default payment account.

36. The system of claim 35, wherein:

the wallet service provider system is configured to prompt the user by displaying a message from a wallet account provider in response to the first payment transaction authorization request being received by the wallet service provider system, the message including at least one payment account of the linked one or more payment accounts in the wallet account; and

the wallet service provider system is configured to receive the selection of the at least one payment account to be used for the payment transaction.

37. The system of claim 36, wherein the selection of the at least one payment account is received from the user with at least one of a wireless device and a computer.

38. The system of claim 36, wherein the selection of the at least one payment account is received via at least one of a wireless network and the Internet.

39. The system of claim 36, wherein the selection of the at least one payment account comprises:

transmitting a request from the wallet service provider system to the user device for a personal identification number (PIN) in addition to a request for a selection of the at least one payment account; and

transmitting the PIN and the selected at least one payment account entered by the user from the user device to the wallet service provider system via at least one of a wireless network and the Internet.

40. The system of claim 39, wherein the transmitted request includes, for display on the user device, at least one of a merchant name, a merchant location, a date of the payment transaction, a time of the payment transaction, and a monetary amount of the payment transaction.

41. The system of claim 39, wherein the wallet service provider system is configured to verify the received PIN entered by the user against the user'"'"'s wallet account in the wallet service provider system, and

wherein the wallet service provider system is configured to transmit the second payment transaction authorization request to the issuer account management system when the PIN is verified.

42. The system of claim 36, wherein the wallet service provider system is configured to communicate with the user device via at least one of a persistent connection and a stateless connection via at least one of a wireless network and the Internet.

43. The system of claim 30, wherein the wallet account identifier is a number in a Bank Identification Number (BIN) range.

44. The system of claim 43, wherein the number assigned to the wallet account in the BIN range identifies at least one of a payment network and a credential issuer.

45. The system of claim 30, wherein the user device comprises a wireless device,

wherein the wallet service provider system is configured to transmit the wallet account identifier from the wireless device to the point-of-sale system terminal for the payment transaction via at least one of a Near Field Communication, Bluetooth communication, and other short-range wireless protocols.

46. The system of claim 45, wherein the transmission of the wallet account identifier from the wireless device to the point-of-sale system terminal is in response to the wireless device being within a predetermined proximity to the point-of-sale system terminal.

47. The system of claim 46, wherein:

the wireless device is configured to receive an interrogation message from the point-of-sale system terminal in connection with the purchasing transaction; and

the wireless device is configured to transmit the wallet account identifier to the point-of-sale system terminal upon receipt of the interrogation message.

48. The system of claim 45, wherein the transmission of the wallet account identifier from the wireless device to the point-of-sale system terminal is effectuated when a passcode that is at least one of a Personal Identification Number (PIN) and biometric identification (ID) is input in the wireless device by the user and positively matched against at least one of a passcode and a biometric characteristic previously registered and stored in the wireless device'"'"'s memory module.

49. The system of claim 48, wherein the biometric ID is a fingerprint captured by a fingerprint scanner of the wireless device.

50. The system of claim 30, wherein:

the point-of-sale system terminal is configured to transmit the first payment transaction authorization request to the wallet service provider system in response to positioning of the user device with the wallet account identifier within a predetermined proximity of a reader of the point-of-sale system terminal, the reader sending an interrogation message, and the user device transmitting the wallet account identifier to the reader in response to the interrogation message; and

the wallet service provider system is configured to verify that the wallet account identifier is associated with an open and valid wallet account, to transmit the second payment transaction authorization request, and to receive the authorization.

51. The system of claim 50, wherein the wallet service provider system is configured to transmit a transaction decline message to the point-of-sale system terminal when the wallet service provider system determines that the wallet account identifier received from the point-of-sale system terminal is not associated with an open and valid account.

52. The system of claim 50, wherein the wallet service provider system is configured to select a default payment account set by the user to complete the payment transaction when the wallet service provider system determines that the wallet account identifier received from the point-of-sale system terminal is associated with an open and valid wallet account.

53. The system of claim 30, wherein the wallet service provider system is configured to initiate the payment transaction with at least one of a magnetic-stripe card, a smart card, a wireless device, and a computer system that stores the wallet account identifier to be transmitted to the point-of-sale system terminal.

54. The system of claim 30, wherein the second payment transaction authorization request is received and processed by the wallet service provider system that administers the selected payment account.

55. The system of claim 30, wherein the wallet service provider system is configured to store user settings associated with the wallet account, including at least one of a default payment account setting, a Personal Identification Number (PIN), a username, a password, and biometric data.

56. The system of claim 30, wherein a wallet account is linked with one or more payment accounts that are at least one of a credit account, a debit account, an electronic checking account, and a stored value account.

57. The system of claim 56, wherein the linked credit account, debit account, and stored value account have an associated account number in a Bank Identification Number (BIN) range.

58. The system of claim 57, wherein the linked payment account number in the BIN range identifies at least one of a payment network and a credential issuer.

59. A computing device, comprising:

memory to store a plurality of wallet accounts and information regarding the plurality of wallet accounts; and

one or more processors configured

to receive from a point-of-sale system terminal a first payment transaction authorization request, wherein the first payment transaction authorization request includes a wallet account identifier associated with at least one of the plurality of wallet accounts while the computing device is not wirelessly connected to a user device which transmitted the wallet account identifier to the point-of-sale system terminal,

to select a linked payment account from a wallet account associated with the wallet account identifier,

to authorize the selected linked payment account,

and to transmit a response to the first payment transaction authorization request, the response to the first payment authorization request indicating whether the payment transaction is authorized.

60. The computing device of claim 59, wherein the one or more processors are configured to transmit a second payment transaction authorization request that includes the selected payment account to an issuer account management system that administers the selected payment account, to receive from the issuer account management system an authorization of the payment transaction in a response to the second payment transaction authorization request, and to confirm the authorization of the payment transaction to the point-of-sale system terminal upon receiving the response to the second payment transaction.

61. The computing device of claim 59, wherein the one or more wallet accounts are associated with one or more payment accounts, the one or more payment accounts including at least one of a credit account, a debit account, an electronic checking account, and a stored value account, the one or more payment accounts being linked to the wallet account to permit a payment transaction between the wallet service provider system and the point-of-sale system terminal using the wallet account identifier.

62. The computing device of claim 61, wherein one or more of the payment accounts are administered by the issuer account management system.

63. The computing device of claim 59, wherein the one or more processors are configured to update a wallet account identifier linked to the wallet account in the memory.

64. The computing device of claim 59, further comprising one or more transceivers to transmit the wallet account identifier to a wireless device via at least one of a wireless network and the Internet.

65. The computing device of claim 59, wherein the one or more processors are configured to prompt the user to make a selection of one payment account of the linked one or more payment accounts for use in the payment transaction when no payment account has been previously set as the default payment account.

66. The computing device of claim 65, wherein the one or more processors are configured to prompt the user to make the selection on a wireless device by displaying a message from a wallet account provider in response to the first payment transaction authorization request being received by the computing device, the message including at least one payment account of the linked one or more payment accounts in the wallet account.

67. The computing device of claim 65, wherein the one or more processors are configured to receive the selection of the at least one payment account from the user via at least one of a wireless device and a computer.

68. The computing device of claim 65, wherein the one or more processors are configured to receive the selection of the at least one payment account via at least one of a wireless network and the Internet.

69. The computing device of claim 65, wherein the one or more processors are configured to transmit a request to the user device for a personal identification number (PIN) in addition to a request for a selection of the at least one payment account, and to receive the PIN and the selected at least one payment account entered by the user from the user device via at least one of a wireless network and the Internet.

70. The computing device of claim 69, wherein the transmitted request includes, for display on the user device, at least one of a merchant name, a merchant location, a date of the payment transaction, a time of the payment transaction, and a monetary amount of the payment transaction.

71. The computing device of claim 70, wherein the one or more processors are configured to verify the received PIN entered by the user against the user'"'"'s wallet account in the wallet service provider system, and to transmit the second payment transaction authorization request that includes the selected payment account to an issuer account management system in response to verifying the PIN.

72. The computing device of claim 65, wherein the one or more processors are configured to communicate with the user device via at least one of a persistent connection and a stateless connection via at least one of a wireless network and the Internet.

73. The computing device of claim 59, wherein the wallet account identifier is a number in a Bank Identification Number (BIN) range.

74. The computing device of claim 73, wherein the number assigned to the wallet account identifier in the BIN range identifies at least one of a payment network and a credential issuer.

75. The computing device of claim 59, wherein the one or more processors are configured to verify that the wallet account identifier is associated with an open and valid wallet account, to transmit a second payment transaction authorization request to an issuer account management system that administers the selected payment account, to receive from the issuer account management system a transaction authorization approval, and to transmit an authorization to the point-of-sale system terminal via a payment network to complete the transaction in response to receipt of the transaction authorization approval from the issuer account management system.

76. The computing device of claim 75, wherein the one or more processors are configured to transmit a transaction decline message to the point-of-sale system terminal when the one or more processors determine that the wallet account identifier received from the point-of-sale system terminal is not associated with an open and valid account.

77. The computing device of claim 75, wherein the one or more processors are configured to prompt the user to select a payment account from the at least one payment account linked with the wallet account when the one or more processors determine that a default payment account is not set.

78. The computing device of claim 59, wherein the memory has stored therein user settings associated with the wallet account, including at least one of a default payment account setting, a Personal Identification Number (PIN), a username, a password, and biometric data.

79. The computing device of claim 59, wherein the wallet account is linked with one or more payment accounts including at least one of a credit account, a debit account, an electronic checking account, and a stored value account.

80. The computing device of claim 79, wherein the linked credit account, debit account, and stored value account have an associated account number in a Bank Identification Number (BIN) range.

81. The computing device of claim 80, wherein the linked payment account number in the BIN range identifies at least one of a payment network and a credential issuer.