Check based online payment and verification system and method

• US RE44,542 E1
• Filed: 06/27/2008
• Issued: 10/15/2013
• Est. Priority Date: 10/15/2001
• Status: Active Grant

• Current Assignee: Cufer Asset Ltd LLC (Intellectual Ventures LLC)
• Original Assignee: Pyfrm Holdings LLC (Intellectual Ventures LLC)
• Inventors: Meadow, William D., Gordie, Randall A. Jr., Ahuja, Sanjay P.
• Primary Examiner(s): Hewitt, II, Calvin L
• Assistant Examiner(s): Winter, John M
• Application Number:
  US12/163,641
• Time in Patent Office: 1,936 Days
• Field of Search: 705/64, 705/75, 705/500, 705/62, 705/87, 380/54, 713/168, 713/176, 713/179
• US Class Current: 705/75
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/042 characterized in that the payment protocol involves at least one cheque
• CPC Class Codes: G06Q 20/3674 involving authentication
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 20/3827 Use of message hashing
• CPC Class Codes: G06Q 20/401 Transaction verification
• CPC Class Codes: G06Q 30/018 Certifying business or products

Abstract

A method and system for verifying a check that is being used for an on-line transaction, utilizes a hash code value either printed directly on the check, or obtained from an insert card provided by a check printer. To conduct an on-line transaction using a check, the customer enters in data obtained from a MICR line of the check, whereby the data includes a one-way hash value that is based on the data provided on the MICR line as well as private data not provided on the MICR line. A web server of an e-tailer for which the customer seeks to make the on-line transaction, receives the data entered by the customer. The web server of the e-tailer transmits, to a check verifier, the data entered by the customer. The check verifier verifies whether or not the check is valid, by comparing the hash code value entered in by the customer with a hash code value that is separately calculated by the check verifier, based on private data of the customer obtained by the check verifier from a database.

Claims

1. A computer-implemented method for verifying a check that is being used for an on-line transaction, comprising:

entering in by a customerobtaining, using a computer, data obtained from a MICR line of the check, the data including a product code and a one-way hash value that is based on the data provided on the MICR line as well as private data not provided on a face of the check, the private data being a numerical value previously provided by the a customer and that is stored in a database accessible by a check verifier computer and the product code indicative of information related to the check or associated account and wherein the one-way hash value is included as an n-digit field at one end of the MICR line, n being an integer greater than one;

receiving, by a web server of a merchant for which the customer seeks to make the on-line transaction, the data entered by the customers, the data being received by way of a computer network;

transmitting, by the web server of the merchant to the check verifier computer, by way of the computer network, the data entered by the customer;

and

verifying by the check verifier whether or not the check is valid wherein the verifying is performed by the check verifier obtaining said private data of the customer and computing, by the check verifier computer, a hash value based on the data entered by the customer and provided to it by the web server as well as the obtained private data of the customer that is obtained from the database accessible by the check verifier;

and

wherein the one-way hash value is included as an n-digit field at one end of the MICR line, n being an integer greater than onedetermining, by the check verifier computer, that the computed hash value matches the one-way hash value and generating, by the check verifier computer, a verification result based in part on the data received from the web server, and the determination that the computed hash matches the one-way hash value;

retrieving a product code message associated with the product code;

sending the verification result and the product code message to the web server; and

accepting, by the web server, the check based on the verification result and the received product code message.

2. A computer-implemented method for verifying a check that is being used for an on-line transaction, comprising:

entering in by a customerobtaining, using a computer, data obtained from a MICR line of the check, the data including a product code and a one-way hash value that is based on the data provided on the MICR line as well as private data not provided on a face of the check, the private data being a numerical value previously provided by the a customer and that is stored in a database accessible by a check verifier computer;

receiving, by a web server of a merchant for which the customer seeks to make the on-line transaction, the one-way hash value, product code, and private data entered by the customers, the one-way hash value, product code, and private data being received by way of a computer network;

transmitting, by the web server of the merchant to the check verifier computer by way of the computer network, the one-way hash value, product code, and private data entered by the customer;

and

verifying by the check verifier, whether or not the check is valid wherein the verifying is performed by the check verifier computing, by the check verifier computer, a hash value based on the data entered by the customer and provided to it by the web server, as well as private data of the customer that is obtained from the database accessible by the check verifier wherein the entering in step includes entering in the private data by the customer, wherein the check verifier verifies computer; and

determining, by the check verifier computer, based in part on the data received from the web server, that the check is valid based on the computed hash value, the product code, and the check verifier authenticates authenticating the customer by comparing the obtained private data entered by the customer with the private data obtained from stored in the database, to determine if that there is a match, and generating, by the check verifier computer, a verification result based in part on the data received from the web server and the determination that the computed hash value matches the one-way hash value;

retrieving a product code message associated with the product code;

sending the verification result and the product code message to the web server; and

accepting, by the web server, the check based on the verification result and the received product code message.

3. A system for verifying a check that is being used for an on-line transaction made over a computer network, comprising:

an input unit for comprising a process and memory, the memory having stored thereon computer readable instructions that when executed by the processor, cause receiving, from a customer, MICR data obtained from a MICR line of the check and private data of the customer, the MICR data including first MICR data that corresponds to bank account information and, second MICR data that includes a one-way hash value that is computed based on the first MICR data and the private data of the customer that is not provided on a face of the check, and third MICR data including a product code, the private data being a numerical value previously provided by the customer and that is stored in a database accessible by a check verifier;

a web server for comprising a process and memory, the memory having stored thereon computer readable instructions that when executed by the processor, cause receiving the MICR data and the private data from the input unit, as well as transaction data corresponding to a desired on-line transaction to be made by the customer, the MICR data and the private data and the transaction data being received by the web server by way of the computer network; and

thea check verifier forcomputer comprising a process and memory, the memory having stored thereon computer readable instructions that when executed by the processor, cause;

receiving, by way of the computer network as output by the web server, the private data provided by the customer via the input unit and the MICR data provided received by the customer via the input unit,

wherein the check verifier verifies the check based on thecalculating a computed hash value, and the check verifier authenticates the customer by comparing

comparing the private data entered by the customer via the input unit and provided to the check verifier by the web server, with the private data obtained by the check verifier computer directly from the database, to determine if that there is a match,

generating a verification result based in part on the private data received from the web server and a determination that the computed hash value matches the one-way hash value,

retrieving a product code message associated with the product code, and

sending the verification result and the product code message to the web server,

wherein the computer readable instructions of the web server further comprises instructions for accepting the check based on the verification result and the received product code message.

4. The system according to claim 3, wherein the computer readable instructions of the check verifier verifies computer further comprises instructions for verifying the check when by determining that the hash value computed by the check verifier computer matches the second MICR data and the private data entered by the customer matches the private data obtained by the check verifier computer directly from the database.

5. A computer-implemented method for verifying a check, comprising:

receiving, from a web server of a merchant by a check verifier computer via a computer network, data comprising MICR data of the check including a product code and a first one-way hash value based on a portion of the MICR data of the check and private data of a customer not provided on a face of the check, the private data being a numerical value previously provided by the customer and stored in a database accessible by the computer, the data obtained by the web server from an input computer;

computing, by the check verifier computer, a second hash value based on the portion of the MICR data and the private data stored in the database and determining that the first and second hash values match;

generating, by the check verifier computer, a verification result based in part on the received data, the determination that the first and second hash values match, and authentication of a customer associated with the data by comparing the private data stored in the database with private data received in conjunction with the MICR data;

retrieving, by the check verifier computer, a product code message associated with the product code;

transmitting, by the check verifier computer, the verification result and the product code message to the web server; and

accepting, by the web server, the check based on the verification result and the received product code message.

6. A computer-implemented method for verifying a check using a check verifier service provider authorized to verify the check, comprising:

receiving, by a web server from an input computer, a representation of a sequence of digits comprising a product code, a first hash value, and checking account information, wherein the first hash value is based on the checking account information and private data not provided on a face of the check, the private data being a numerical value previously provided by a customer and stored in a database accessible by a check verifier computer associated with the check verifier service provider, wherein the first hash value is included as an n-digit field in a MICR line of the check, n being an integer greater than one;

sending data indicative of the representation and additional data provided by a presenter of the check to the check verifier computer, wherein the additional data corresponds to the private data;

computing, by the check verifier computer, a second hash value using the sequence of digits and the private data stored in the database;

comparing, by the check verifier computer, the first and second hash values;

generating, by the check verifier computer, a verification result based in part on the private data, a determination that the first and second hash values match, and authentication of the customer by comparing the private data stored in the database with the received private data;

retrieving, by the check verifier computer, a product code message associated with the product code;

returning, by the check verifier computer to the web server, the verification result and the product code message; and

accepting, by the web server, the check based on the verification result and the product code message.

7. The computer-implemented method of claim 6, wherein said checking account information comprises an ABA number of a bank, a checking account number or a check number.