DISTRIBUTED PAYMENT SYSTEM AND METHOD

• US 20150088673A1
• Filed: 12/01/2014
• Published: 03/26/2015
• Est. Priority Date: 03/07/2007
• Status: Active Grant

• Current Assignee: Andrew Magruder, Kevin L. Higgins Sr
• Original Assignee: Kevin L. Higgins Sr
• Inventors: Higgins, Kevin L. Sr., Magruder, Andrew
• Granted Patent: US 9,443,238 B2
• Time in Patent Office: Days
• US Class Current: 705/16
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• 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 20/322 Aspects of commerce using mobile devices [M-devices]
• CPC Class Codes: G06Q 20/3276 using a pictured code, e.g. barcode or QR-code, being read by the M-device
• CPC Class Codes: G06Q 20/3674 involving authentication
• CPC Class Codes: G06Q 20/3823 combining multiple encryption tools for a transaction
• CPC Class Codes: G06Q 20/385 using an alias or single-use codes
• CPC Class Codes: G06Q 20/387 Payment using discounts or coupons relating to marketing G06Q30/02
• 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 20/4014 Identity check for transactions
• CPC Class Codes: G06Q 20/425 using two different networks, one for transaction and one for security confirmation
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G07G 1/14 Systems including one or more distant stations co-operating with a central processing unit data transmission in general H04L; telemetry systems for selectively calling a substation from a main station H04Q9/00
• CPC Class Codes: H04L 2209/56 Financial cryptography, e.g. electronic payment or e-cash
• CPC Class Codes: H04L 2209/80 Wireless network architectures or network communication protocols for wireless network security H04W12/00
• CPC Class Codes: H04L 9/32 including means for verifying the identity or authority of a user of the system or for message authentication, e.g. authorization, entity authentication, data integrity or data verification, non-repudiation, key authentication or verification of credentials
• CPC Class Codes: H04L 9/3226 using a predetermined code, e.g. password, passphrase or PIN network architectures or network communication protocols for supporting authentication of entities using passwords in a packet data network H04L63/083

Abstract

The present invention provides a payment system that allows a mobile communications device (MCD) to interact with a merchant processing device (MPD) and a payment engine. A communications component associated with the payment engine can send requested barcodes to the MPD, receive barcodes or alphanumeric Universal Product Codes from customer MCDs, and handle payment authorizations and settlements. A barcode management component can generate and interpret barcodes based upon merchant offerings and client requests. A security algorithms component can employ an offset pair algorithm to convert each digit from a payment card information into an offset pair of digits to facilitate security in accordance with one embodiment of the present invention.

Claims

1-18. -18. (canceled)

19. A method for conducting an electronic transaction between a merchant and a customer, the method comprising a number of steps performed a server processor of a payment system, the number of steps including:

receiving, by the server processor of the payment system, a request for a machine readable code,

wherein the request for the machine readable code includes information of an item offered by a merchant and a transaction amount;

generating, by the server processor of the payment system, the requested machine readable code including the information of the item offered by the merchant and the transaction amount;

sending, by the server processor of the payment system, the requested machine readable code including the information of the item offered by the merchant and the transaction amount to a merchant device,

wherein the requested machine readable code including the information of the item offered by the merchant and the transaction amount is received and displayed by the merchant device, and is subsequently collected by a customer mobile communication device from the merchant device and then transmitted by the customer mobile communication device to the server processor of the payment system in an electronic message;

receiving, by the server processor of the payment system, the machine readable code from the customer mobile communication device;

determining, by the server processor of the payment system, that the customer has a payment account established with the payment system;

based on the determination that the customer has an account established with the payment system, receiving a personal identifier from the customer mobile communication device;

determining, by the server processor of the payment system, a customer payment account identifier;

conducting, by the server processor of the payment system, the transaction between the merchant and the customer using the customer payment account identifier and at least some of the information from the machine readable code; and

sending, by the server processor of the payment system, a payment notification to the merchant.

20. The method of claim 19 wherein the step of conducting the transaction includes sending an authorization request to an acquirer in communication with the merchant.

21. The method of claim 19 wherein the step of receiving the machine readable code from the customer mobile communication device includes using an unsecure network to receive the machine readable code.

22. The method of claim 19 wherein the merchant device is a POS terminal.

23. The method of claim 19 wherein the customer mobile communication device is a mobile phone.

24. The method of claim 19 wherein determining the customer payment account identifier comprises using the personal identifier to determine the customer payment account identifier.

25. The method of claim 19 further comprising:

sending a request for the personal identifier to the customer mobile communication device.

26. A payment system comprising:

a server processor; and

a computer readable medium, the computer readable medium comprising code, executable by the server processor, to implement a method including a number of steps, the number of steps including

receiving, by the server processor of the payment system, a request for a machine readable code,

wherein the request for the machine readable code includes information of an item offered by a merchant and a transaction amount,

generating, by the server processor of the payment system, the requested machine readable code including the information of the item offered by the merchant and the transaction amount,

sending, by the server processor of the payment system, the requested machine readable code including the information of the item offered by the merchant and the transaction amount to a merchant device,

wherein the requested machine readable code including the information of the item offered by the merchant and the transaction amount is received and displayed by the merchant device, and is subsequently collected by a customer mobile communication device from the merchant device and then transmitted by the customer mobile communication device to the server processor of the payment system in an electronic message,

receiving, by the server processor of the payment system, the machine readable code from the customer mobile communication device,

determining, by the server processor of the payment system, that the customer has a payment account established with the payment system,

based on the determination that the customer has an account established with the payment system, receiving a personal identifier from the customer mobile communication device,

determining, by the server processor of the payment system, a customer payment account identifier,

conducting, by the server processor of the payment system, the transaction between the merchant and the customer using the customer payment account identifier and at least some of the information from the machine readable code, and

sending, by the server processor of the payment system, a payment notification to the merchant.

27. The payment system of claim 26 wherein determining the customer payment account identifier includes deriving a customer payment account number using the personal identifier.

28. The payment system of claim 27 wherein the customer payment account number is derived using offset pairs and the personal identifier.

29. The payment system of claim 26 wherein the mobile communication device is a phone.

30. The payment system of claim 26 wherein the personal identifier is a PIN.

37. The method of claim 29 wherein the machine readable code is a barcode.

31. A computer-assisted method for operating a merchant processing device, the method including a number of steps performed by the merchant processing device, the number of steps including:

requesting a machine readable code from a payment system, wherein the machine readable code is associated with one or more products for purchase;

receiving the machine readable code from the payment system;

displaying the machine readable code to a mobile communications device operated by a customer, wherein the mobile communication device transmits the machine readable code to the payment system, and the payment system requests a personal identifier from the customer and verifies the personal identifier; and

receiving an authorization message from the payment system indicating that the customer is authorized to purchase the one or more products after the payment system verifies the personal identifier.

32. The method of claim 31 wherein the mobile communication device is a mobile phone.

33. The method of claim 31 wherein request for the machine readable code comprises a merchant identifier, identifies of the items purchased, a total transaction amount, sales tax being charged on the transaction, and a transaction identifier.

34. The method of claim 33 wherein the machine readable code encodes the merchant identifier, identifies of the items purchased, the total transaction amount, the sales tax being charged on the transaction, and the transaction identifier.

35. The method of claim 31 wherein the merchant processing device does not receive an identifier for the customer or a payment account number of the customer.

36. The method of claim 31 wherein the merchant processing device is a POS terminal.