Method for performing a transaction over a network

• US RE43,440 E1
• Filed: 01/30/2009
• Issued: 05/29/2012
• Est. Priority Date: 07/21/1999
• Status: Expired due to Term

• Current Assignee: Advanced Transactions, LLC (IP Investments Group LLC)
• Original Assignee: Wispo Software LLC (Intellectual Ventures LLC)
• Inventors: Jespersen, Torben, Bruus, Kirsten
• Primary Examiner(s): Parthasarathy, Pramila
• Application Number:
  US12/362,953
• Time in Patent Office: 1,215 Days
• Field of Search: None
• US Class Current: 726/27
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/42 Confirmation, e.g. check or permission by the legal debtor of payment

Abstract

A method for performing a transaction between a legal entity A who has an approval to perform such transaction, and a legal entity B over a network, the transaction being initiated by the legal entity A, wherein the legal entity A, to verify the approval to the legal entity B, associates the transaction with a verification insignia, the verification insignia being a unique transitory insignia provided to the legal entity A by a legal entity C who thereby guarantees that the legal entity A has the approval, the provision of the unique transitory insignia to the legal entity A by the legal entity C being conditioned by the legal entity A providing to the legal entity C a secret identification code confirming the identity of the legal entity A to the legal entity C, the legal entity B validating the unique transitory insignia, and upon positive validation, and only then, accepts the transaction, and the transitory unique insignia being invalidated substantially immediately after the validation.

Claims

1. A method for performing a secure transaction between a legal entity A who has an approval to perform such transaction, and a legal entity B over a network, the transaction being initiated by the legal entity A, wherein the method is implemented in a computing system, the method comprising the steps of:

the legal entity A, associating the transaction with a digital verification insignia to verify the approval to the legal entity B,

the verification insignia being a unique transitory insignia valid for a single transaction and valid only for a prespecified time to complete a transaction provided to the legal entity A by a legal entity C who thereby guarantees that the legal entity A has the approval,

providing the unique transitory insignia to the legal entity A by the legal entity C for said single transaction before said transaction being conditioned by the legal entity A providing to the legal entity C a secret identification code confirming the identity of the legal entity A to the legal entity C,

the legal entity B validating through legal entity C the unique transitory insignia, and upon positive validation, and only then, accepts the transactions, and

the legal entity C invalidating the transitory unique insignia upon completion of the transaction.

2. A method according to claim 1, wherein the validation is guaranteed by the legal entity C and wherein the legal entity C upon the guaranteeing invalidates the unique transitory insignia.

3. A method according to claim 1, wherein a first timestamp is recorded by the legal entity C, the first timestamp comprising the date and time of the provision of the unique transitory insignia to the legal entity A by the legal entity C.

4. A method according to claim 3, wherein a second timestamp is recorded by the legal entity A, the second timestamp comprising the date and time when the legal entity A, to verify the approval to the legal entity B, associates the transaction with a verification insignia.

5. A method according to claim 4, wherein the unique transitory insignia comprises the first timestamp and/or the second timestamp.

6. A method according to claim 3, wherein the transitory unique insignia is invalidated by the legal entity C after a prespecified time T counted from the time recorded in the timestamp.

7. A method according to claim 6, wherein the prespecified time T equals a transmission time of the unique transitory insignia from legal entity C to legal entity A plus a processing and maximum handling time at legal entity A, plus a transmission time of the unique transitory insignia from legal entity A to legal entity B, plus a processing time at legal entity B, plus a transmission time of the unique transitory insignia from legal entity B to legal entity C plus a processing time at the legal entity C.

8. A method according to claim 1, wherein at least one of the following events is recorded by the legal entity C:

the provision of the unique transitory insignia,

the association of the transaction with the verification insignia,

the verifying of the correctness of the unique transitory insignia, and

the time when the transitory unique insignia is being invalidated.

9. A method according to claim 1, wherein the public network is the internet or any other public, semi-public, private or semi-private network.

10. A method according to claim 9, wherein the network uses a wireless application protocol.

11. A method according to claim 1, wherein the verification insignia is a provided to the legal entity A by the legal entity C over the Internet through a secure communication channel protected by the secret identification code.

12. A method according to claim 1, wherein the unique transitory insignia has a unique identification number.

13. A method according to claim 1, wherein the unique identification number is associated with a financial agreement between the legal entity A and a trusted partner of the legal entity C.

14. A method according to claim 13, wherein the financial agreement comprises the trusted partner of the legal entity C providing the legal partner A with a payment card.

15. A method according to claim 13, wherein the unique identification number comprises at least a first and a second identification component, the first identification component identifying the financial agreement and the second identification component identifying the legal entity C.

16. A method according to claim 15, wherein the second identification component is assigned to the legal entity C by a registration authority agreed between the legal entity C and a number of trusted partners of the legal entity C.

17. A method according claim 15, wherein there is an interdependency between the financial agreement and a disbursement account.

18. A method according to claim 1, wherein the legal entity B requests payment from the legal entity Cis requested a payment entity B, the request being associated with the unique transitory insignia.

19. A method according to claim 17, wherein the payment is withdrawn from the disbursement account.

20. A method according to claim 14, wherein the unique number is selected in accordance with a unique number of the payment card.

21. A method according to claim 14, wherein the unique number is selected in accordance with a unique issuer identification number of the legal entity C or in accordance with unique identification number of trusted partner(s) of the legal entity C.

22. A method according to claim 12, wherein the unique identification number is selected from a pool of numbers agreed between the legal entity C and the trusted partners of the legal entity C, and wherein the number is released after the transitory unique insignia has been invalidated.

23. A method according to claim 1, wherein the unique transitory insignia is comprised in a digital code.

24. A method according to claim 23, wherein the digital code is generated in a cellular phone, by means of a digital device provided by the legal entity C.

25. A method according to claim 23, wherein the digital code is encrypted.

26. The method according to claim 6, wherein the prespecified time is between 30 seconds and 4 minutes.

27. The method according to claim 6, wherein in the prespecified time is 2 minutes.

28. A method for securing an electronic transaction, comprising the steps of:

providing a computer based system for transmission of a transaction between a legal entity A who has an approval to perform a transaction and a legal entity B over an electronic communication network, the transaction being initiated by legal entity A;

legal entity A associating the transaction with a verification insignia to verify the approval to legal entity B, the verification insignia being a unique transitory insignia valid for a single transaction and valid only for a prespecified time to complete the transaction, the verification insignia including a unique digital code and optionally one or more of (1) a unique identification code which identifies the agreement between legal entity A and legal entity C, and (2) a time stamp identifying the exact date and time when the unique transitory insignia is assigned and transmitted by legal entity C to legal entity A;

providing the transitory insignia by legal entity C, who thereby guarantees that legal entity A has the approval, conditioned by legal entity A providing to legal entity C a secret identification code confirming the identity of legal entity A to legal entity C;

starting a timer when assigning the unique transitory insignia, legal entity C or a trusted partner of legal entity C transmitting the unique transitory insignia to legal entity A through a secure communication channel;

legal entity B validating through legal entity C the unique transitory insignia and upon positive validation and only then accepting the transaction; and

legal entity C invalidating the unique transitory insignia upon completion of the transaction;

so that the receiver of the transaction has the possibility to verify on-line, the sender'"'"'s legal rights to perform such a transaction.

29. The method according to claim 28, wherein the unique transitory insignia is invalidated by legal entity C when the unique transitory insignia is presented for validation or after a system dependent and prespecified time limit T as counted by the timer without the unique transitory insignia has been presented for legal entity C for validation.

30. A method for performing a secure transaction between a legal entity A who has an approval to perform such transaction, and a legal entity B over a network, the transaction being initiated by the legal entity A, where the method is implemented in a computing system, the method comprising the steps of:

the legal entity A, associating the transaction with a digital verification insignia to verify the approval to the legal entity B,

the verification insignia being a unique transitory insignia valid for a single transaction and valid only for a prespecified time to complete a transaction provided to the legal entity A by a legal entity C who thereby guarantees that the legal entity A has the approval,

providing the unique transitory insignia to the legal entity A by the legal entity C for said single transaction before said transaction being conditioned by the legal entity A providing to the legal entity C a secret identification code confirming the identity of the legal entity A to the legal entity C, the provision of the unique transitory insignia being transmitted through a different secure communication channel than the provision of the secret identification code,

the legal entity B validating through legal entity C the unique transitory insignia, and upon positive validation, and only then, accepts the transactions, and

the legal entity C invalidating the transitory unique insignia upon completion of the transaction.

31. A method for securing an electronic transaction, comprising the steps of:

providing a computer based system for transmission of a transaction between a legal entity A who has an approval to perform a transaction and a legal entity B over an electronic communication network, the transaction being initiated by legal entity A;

legal entity A associating the transaction with a verification insignia to verify the approval to legal entity B, the verification insignia being a unique transitory insignia valid for a single transaction and valid only for a prespecified time to complete the transaction, the verification insignia including a unique digital code and optionally one or more of (1) a unique identification code which identifies the agreement between legal entity A and legal entity C, and (2) a time stamp identifying the exact date and time when the unique transitory insignia is assigned and transmitted by legal entity C to legal entity A;

providing the transitory insignia by legal entity C, who thereby guarantees that legal entity A has the approval, conditioned by legal entity A providing to legal entity C a secret identification code confirming the identity of legal entity A to legal entity C, the provision of the unique transitory insignia being transmitted through a different secure communication channel than the provision of the secret identification code;

starting a timer when assigning the unique transitory insignia, legal entity C or a trusted partner of legal entity C transmitting the unique transitory insignia to legal entity A through a secure communication channel;

legal entity B validating through legal entity C the unique transitory insignia and upon positive validation and only then accepting the transaction; and

legal entity C invalidating the unique transitory insignia upon completion of the transaction;

so that the receiver of the transaction has the possibility to verify on-line, the sender'"'"'s legal fights to perform such a transaction.

32. A method implemented in a computing system having a communications device, the method comprising:

with the communications device, transmitting a secret identification code to a confirming entity effective to confirm an identity of a transmitting entity that transmitted the secret identification code;

responsive to transmitting the secret identification code, receiving, from the confirming entity, a time-limited unique transitory insignia that is valid for a single transaction;

enabling initiation of a transaction with a transaction entity;

receiving an association of the transaction with the time-limited unique transitory insignia, the time-limited unique transitory insignia being configured to verify approval of the transaction to the transaction entity;

transmitting the time-limited unique transitory insignia to the transaction entity effective to enable transacting the transaction; and

causing the unique transitory insignia to be invalidated upon completion of the transaction.

33. The method of claim 32, wherein the time-limited unique transitory insignia comprises one or more time stamps.

34. The method of claim 32, wherein the time-limited unique transitory insignia comprises a unique identification number that is associated with a financial agreement.

35. The method of claim 34, wherein the financial agreement is related to a bank account or a disbursement account.

36. The method of claim 32, wherein the time-limited unique transitory insignia comprises a unique identification number having at least a first and a second identification component, the first identification component identifying a financial agreement, the second identification component identifying an entity other than the transmitting entity.

37. The method of claim 36, wherein the entity other than the transmitting entity comprises the confirming entity.

38. The method of claim 36, wherein the entity other than the transmitting entity comprises a trusted partner of the confirming entity.

39. The method of claim 32 further comprising invalidating the time-limited unique transitory insignia.

40. The method of claim 32 further comprising invalidating the time-limited unique transitory insignia responsive to receiving a confirmation from the transaction entity.

41. The method of claim 32, wherein at least one of transmitting the secret identification code or transmitting the time-limited unique transitory insignia is performed using a wireless network.

42. The method of claim 32, wherein at least one of transmitting the secret identification code or transmitting the time-limited unique transitory insignia is performed using the Internet.

43. The method of claim 32, wherein at least one of transmitting the secret identification code or transmitting the time-limited unique transitory insignia is performed using a mobile phone.

44. A computer storage device having instructions stored thereon that, if executed by a computing device, cause the computing device to perform a method comprising:

transmitting a secret identification code to a confirming entity effective to confirm an identity of a transmitting entity that transmitted the secret identification code;

responsive to transmitting the secret identification code, receiving, from the confirming entity, a time-limited unique transitory insignia that is valid for a single transaction;

enabling initiation of a transaction with a transection entity;

receiving an association of the transaction with the time-limited unique transitory insignia, the time-limited unique transitory insignia being configured to verify approval of the transaction to the transaction entity;

transmitting the time-limited unique transitory insignia to the transaction entity effective to enable transacting the transaction; and

causing the unique transitory insignia to be invalidated upon completion of the transaction.

45. The computer storage device of claim 44, wherein the time-limited unique transitory insignia comprises one or more time stamps.

46. The computer storage device of claim 44, wherein the time-limited unique transitory insignia comprises a unique identification number that is associated with a financial agreement.

47. The computer storage device of claim 44, wherein the time-limited unique transitory insignia comprises a unique identification number having at least a first and a second identification component, the first identification component identifying a financial agreement, the second identification component identifying an entity other than the transmitting entity.

48. The computer storage device of claim 44, wherein at least one of transmitting the secret identification code or transmitting the time-limited unique transitory insignia is performed using a wireless network.

49. The computer storage device of claim 44, wherein at least one of transmitting the secret identification code or transmitting the time-limited unique transitory insignia is performed using the Internet.

50. The computer storage device of claim 44, wherein at least one of transmitting the secret identification code or transmitting the time-limited unique transitory insignia is performed using a mobile phone.

51. A method implemented in a computing system having a communications device, the method comprising:

receiving, from a customer, an initiation of a transaction;

receiving, as part of the transaction, a virtual payment card number, the virtual payment card number being time-limited and valid for a single transaction;

with the communications device, transmitting the virtual payment card number to a confirming entity;

responsive to validation of the virtual payment card number by the confirming entity, enabling completion of the transaction; and

causing the virtual payment card number to be invalidated upon completion of the transaction.

52. The method of claim 51, wherein the receiving the initiation of the transaction, receiving the virtual payment card number, transmitting the virtual payment card number, and enabling completion of the transaction are performed, at least in part, on behalf of a service provider.

53. A method implemented in a computing system having a communications device, the method comprising:

receiving a secret identification code associated with a customer;

verifying the customer using the secret identification code;

responsive to verifying the customer, with the communications device, transmitting a time-limited unique transitory insignia to the customer, the time-limited unique transitory insignia being valid for a single transaction;

receiving a request to validate the time-limited unique transitory insignia in connection with a customer transaction;

transmitting an indication that the time-limited unique transitory insignia is valid to an entity from which the request to validate was received; and

invalidating the time-limited unique transitory insignia upon completion of the transaction.

54. The method of claim 53, wherein the invalidating is performed using one or more time stamps associated with the time-limited unique transitory insignia.

55. The method of claim 53, wherein the invalidating is performed responsive to completion of the customer transaction.

56. The method of claim 53, wherein the time-limited unique transitory insignia comprises a unique identification number that is associated with a financial agreement.

57. The method of claim 56, wherein the financial agreement is related to a bank account or a disbursement account.

58. The method of claim 53, wherein the time-limited unique transitory insignia comprises a unique identification number having at least a first and a second identification component, the first identification component identifying a financial agreement, the second identification component identifying an entity other than the customer.

59. The method of claim 53, wherein the receiving the secret identification code, verifying the customer, transmitting the time-limited unique transitory insignia, receiving the request, transmitting the indication, and invalidating the time-limited unique transitory insignia are performed on behalf of one or more companies administering payment cards.

60. A computer storage device having instructions stored thereon that, if executed by a computing device, cause the computing device to perform a method comprising:

receiving a secret identification code associated with a customer;

verifying the customer using the secret identification code;

responsive to verifying the customer, transmitting a time-limited unique transitory insignia to the customer, the time-limited unique transitory insignia being valid for a single transaction;

receiving a request to validate the time-limited unique transitory insignia in connection with a customer transaction;

transmitting an indication that the time-limited unique transitory insignia is valid to an entity from which the request to validate was received; and

invalidating the time-limited unique transitory insignia upon completion of the transaction.

61. The computer storage device of claim 60, wherein the invalidating is performed using one or more time stamps associated with the time-limited unique transitory insignia.

62. The computer storage device of claim 60, wherein the invalidating is performed responsive to completion of the customer transaction.

63. The computer storage device of claim 60, wherein the time-limited unique transitory insignia comprises a unique identification number that is associated with a financial agreement.

64. The computer storage device of claim 63, wherein the financial agreement is related to a bank account or a disbursement account.

65. The computer storage device of claim 60, wherein the time-limited unique transitory insignia comprises a unique identification number having at least a first and a second identification component, the first identification component identifying a financial agreement, the second identification component identifying an entity other than the customer.

66. The computer storage device of claim 60, wherein the receiving the secret identification code, verifying the customer, transmitting the time-limited unique transitory insignia, receiving the request, transmitting the indication, and invalidating the time-limited unique transitory insignia are performed on behalf of one or more companies administering payment cards.

67. A method implemented in a computing system having a communications device, the method comprising:

with the communications device, transmitting a request for an Internet payment tool to an entity from which the Internet payment tool can be received; and

responsive to transmitting the request, receiving a virtual payment card number having an expiration date, wherein the virtual payment card number is configured to be invalidated at least;

after use of the virtual payment card number by a customer, or

after a first shop has tried to validate the virtual payment card number.

68. The method of claim 67 further comprising transmitting the virtual payment card number to an Internet shop as part of a transaction.

69. A computer storage device having instructions stored thereon that, if executed by a computing device, cause the computing device to perform a method comprising:

transmitting a request for an Internet payment tool to an entity from which the Internet payment tool can be received; and

responsive to transmitting the request, receiving a virtual payment card number having an expiration date, wherein the virtual payment card number is configured to be invalidated at least;

after use of the virtual payment card number by a customer, or

after a first shop has tried to validate the virtual payment card number.

70. The computer storage device of claim 69, wherein the instructions, if executed by the computing device, cause the computing device to perform a method further comprising transmitting the virtual payment card number to an Internet shop as part of a transaction.

71. A method implemented in a computing system having a processor, the method comprising:

receiving a request for an Internet payment tool from a customer, wherein the customer has an existing relationship with an entity that receives the request;

with the processor, allocating a virtual payment card to the customer;

causing information associated with the virtual payment card to be logged in a file;

marking the virtual payment card as being in use by the customer;

activating a timer associated with the virtual payment card;

returning the virtual payment card to the customer; and

causing the virtual payment card to be invalidated upon expiration of the activated timer.

72. The method of claim 71, wherein the existing relationship pertains to an existing physical payment card issued to the customer.

73. The method of claim 72 further comprising maintaining a database system that provides an association between an existing physical payment card issued to the customer and one or more virtual payment cards issued to the customer.

74. The method of claim 71, wherein the virtual payment card is valid either for a certain time period associated with the timer or until a transaction associated with the virtual payment card has taken place.

75. The method of claim 71 further comprising:

receiving a request from an Internet-based goods or services provider for verification of the virtual payment card;

validating the virtual payment card; and

returning a confirmation to an entity from which the request for verification was received.

76. The method of claim 71 further comprising:

receiving a request from an Internet-based goods or services provider for verification of the virtual payment card;

validating the virtual payment card;

returning a confirmation to an entity from which we request for verification was received; and

responsive to validating the virtual payment card, disabling use of the virtual payment card for one or more transactions beyond a transaction associated with the request for verification.

77. The method of claim 71 further comprising responsive to a settlement transaction taking place with respect to the virtual payment card, deleting an association between the virtual payment card and the customer.

78. The method of claim 71 further comprising:

responsive to a settlement transaction taking place with respect to the virtual payment card, deleting an association between the virtual payment card and the customer; and

in connection with deleting the association, allocating the virtual payment card for another transaction associated with another customer.

79. A computer storage device including a non-transitory computer-readable medium having instructions stored thereon that, if executed by a computing device, cause the computing device to perform a method comprising:

receiving a request for an Internet payment tool from a customer, wherein the customer has an existing relationship with an entity that receives the request;

allocating a virtual payment card to the customer;

causing information associated with the virtual payment card to be logged in a file;

marking the virtual payment card as being in use by the customer;

activating a timer associated with the virtual payment card;

returning the virtual payment card to the customer; and

causing the virtual payment card to be invalidated upon expiration of the activated timer.

80. The computer storage device of claim 79, wherein the existing relationship pertains to an existing physical payment card issued to the customer.

81. The computer storage device of claim 80, wherein the instructions, if executed by the computing device, cause the computing device to perform a method further comprising maintaining a database system that provides an association between an existing physical payment card issued to the customer and one or more virtual payment cards issued to the customer.

82. The computer storage device of claim 79, wherein the virtual payment card is valid either for a certain time period associated with the timer or until a transaction has taken place for the virtual payment card.

83. The computer storage device of claim 79, wherein the instructions, it executed by the computing device, cause the computing device to perform a method further comprising receiving a request from an Internet-based goods or services provider for verification of the virtual payment card.

84. The computer storage device of claim 79, wherein the instructions, if executed by the computing device, cause the computing device to perform a method further comprising:

receiving a request from an Internet-based goods or services provider for verification of the virtual payment card;

validating the virtual payment card; and

returning a confirmation to an entity from which the request for verification was received.

85. The computer storage device of claim 79, wherein the instructions, if executed by the computing device, cause the computing device to perform a method further comprising:

receiving a request from an Internet-based goods or services provider for verification of the virtual payment card;

validating the virtual payment card;

returning a confirmation to an entity from which the request for verification was received; and

responsive to validating the virtual payment card, disabling use of the virtual payment card for one or more transactions beyond a transaction associated with the request for verification.

86. The computer storage device of claim 79 wherein the instructions, if executed by the computing device, cause the computing device to perform a method further comprising responsive to a settlement transaction taking place with respect to the virtual payment card, deleting an association between the virtual payment card and the customer.

87. The computer storage device of claim 79 wherein the instructions, if executed by the computing device, cause the computing device to perform a method further comprising:

responsive to a settlement transaction taking place with respect to the virtual payment card, deleting an association between the virtual payment card and the customer; and

responsive to deleting the association, allocating the virtual payment card for an other transaction associated with an other customer.