SECURE AND EFFICIENT PAYMENT PROCESSING SYSTEM

• US 20100241570A1
• Filed: 06/08/2010
• Published: 09/23/2010
• Est. Priority Date: 10/01/1999
• Status: Active Grant

• Current Assignee: CardinalCommerce Corporation (Visa, Inc.)
• Original Assignee: CardinalCommerce Corporation (Visa, Inc.)
• Inventors: Bhagavatula, Ravishankar, Balasubramanian, Chandra, Sherwin, Francis M., Keresman, Michael A. III
• Granted Patent: US 8,676,694 B2
• Time in Patent Office: Days
• US Class Current: 705/67
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/3674 involving authentication
• CPC Class Codes: G06Q 20/3821 Electronic credentials
• 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 30/04 Billing or invoicing
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A method of processing commercial transactions carried out over the Internet (50) between account holders (30) and participating merchants (20) includes receiving a purchase request (352) of a buyer from a participating merchant (20) indicating that the buyer desires to carry out a transaction with the merchant (20). The transaction includes the buyer purchasing one or more selected items (340) from the merchant (20). The buyer is authenticated (310) as an account holder (30) and transaction fulfillment data (362) is established. The transaction fulfillment data (362) indicates a delivery destination for the selected items. In turn, the transaction fulfillment data (362) is communicated to the participating merchant (20), and transaction details (384) from the participating merchant (20) are received. The transaction details (384) include a cost for the selected items. Thereafter, completion of the transaction is authorized (390) and an authorization code (392) established therefor is communicated to the participating merchant (20).

Claims

1. A method of processing a transaction carried out over a network between a financial account holder and a participating entity, the method comprising:

(a) receiving a purchase request of a buyer from the participating entity indicating that the buyer desires to carry out a transaction with the entity, the transaction including the buyer purchasing one or more selected items;

(b) authenticating the buyer as the financial account holder via a processor;

(d) receiving transaction details from the participating entity, the transaction details including a cost for the selected items;

(e) authorizing completion of the transaction and establishing an authorization code therefor; and

,

(f) communicating the authorization code for the transaction to the participating entity.

2. The method according to claim 2, wherein the transactions are at least partially carried out over a public network.

3. A method of processing transactions carried out over a network between account holders and participating entities, the method comprising:

(a) receiving a purchase request of a buyer from a participating entity indicating that the buyer desires to carry out a transaction with the participating entity, the transaction including the buyer purchasing one or more selected items;

(b) authenticating the buyer as an account holder via a processor;

(c) receiving transaction details including one or more terms for the purchasing the selected items;

(d) authorizing completion of the transaction and establishing an authorization code therefor;

(e) communicating the authorization code for the transaction to the participating merchant;

(f) obtaining settlement information from the participating entity, the settlement information including the authorization code and transaction details for the completed transaction;

(g) confirming that the transaction details corresponding to the authorization code received with the settlement information are within a desired tolerance; and

,

(h) communicating the confirmed settlement information to a funding source to effect reimbursement of the participating entity and billing of the account holder.

4. The method according to claim 3, wherein obtaining the settlement information includes automatically capturing the settlement information from the participating entity upon an indication of delivery of the selected items.

5. The method according to claim 4, wherein authenticating the buyer as an account holder includes:

synchronizing a token with a periodically changing non-predictable code;

providing the account holder with the token, the token displaying the periodically changing non-predictable code;

receiving a code communicated by the buyer; and

,

comparing the received code with the periodically changing non-predictable code to authenticate the buyer as the account holder when the received code matches the periodically changing non-predictable code.

7. The method according to claim 3, wherein authenticating the buyer as an account holder includes:

synchronizing a token with a periodically changing non-predictable code;

providing the account holder with the token, the token displaying the periodically changing non-predictable code;

receiving a code communicated by the buyer; and

,

comparing the received code with the periodically changing non-predictable code to authenticate the buyer as the account holder when the received code matches the periodically changing non-predictable code.

8. The method according to claim 3, wherein step (b) precedes step (a).

9. The method according to claim 3, wherein the transactions are at least partially carried out over a public network.

10. A system for processing a transaction between a financial account holder and a seller over a network, the system comprising:

a coordinator server that receives a purchase request of a buyer from the seller indicating that the buyer desires to carry out a transaction with the seller, the transaction including the buyer purchasing one or more selected items;

authenticates the buyer as the financial account holder;

receives transaction details from the seller, the transaction details including a cost for the selected items;

authorizes completion of the transaction and establishing an authorization code therefor; and

communicates the authorization code for the transaction to the seller; and

a coordinator database that stores data relating to the transaction.

11. The system according to claim 10, wherein the transactions are at least partially carried out over a public network.