Methods and apparatus for internet based financial transactions with evidence of payment

• US 6,233,565 B1
• Filed: 02/13/1998
• Issued: 05/15/2001
• Est. Priority Date: 02/13/1998
• Status: Expired due to Term

• Current Assignee: Saranac Software Incorporated
• Original Assignee: Saranac Software Incorporated
• Inventors: Lewis, Richard, Han, Donald, Abdelsadek, Mohammed, Dwyer, Tara, Parks, Louis, Rogoff, Jonathon
• Primary Examiner(s): Trammell, James P.
• Assistant Examiner(s): Nguyen, Cuong H.
• Application Number:
  US09/023,724
• Time in Patent Office: 1,187 Days
• Field of Search: 705/26, 705/35, 705/39-40, 705/42, 705/44, 380/23-25, 380/30, 380/37, 380/49
• US Class Current: 705/35
• CPC Class Codes: G06Q 20/00 Payment architectures, schemes or protocols apparatus for performing or posting payment transactions G07F7/08, G07F19/00; electronic cash registers G07G1/12
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/3674 involving authentication
• 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 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: H04L 2463/102 applying security measure for e-commerce data processing systems or methods, specially adapted for e-commerce G06Q30/00
• CPC Class Codes: H04L 63/0442 wherein the sending and receiving network entities apply asymmetric encryption, i.e. different keys for encryption and decryption cryptographic mechanisms or cryptographic arrangements for public-key encryption H04L9/30
• CPC Class Codes: H04L 63/0823 using certificates cryptographic mechanisms or cryptographic arrangements for entity authentication involving certificates H04L9/3263
• CPC Class Codes: H04L 63/083 using passwords cryptographic mechanisms or cryptographic arrangements for entity authentication using a predetermined code H04L9/3226

Abstract

A system and methods for conducting Internet based financial transactions between a client and a server. The client has a processor, a printer, a client authentication module, a module for issuing a transaction request, and a unique digital signature. The server has a network including a transaction server, a transaction database, a server authentication module, and a receipt generation module. An internet connection is used between the client and the server network. The transaction execution system includes authentication, wherein the client authentication module and the server authentication modules communicate via the internet connection and are authenticated to each other. A transaction module is included wherein, in response to the client and server being authenticated, the client issues a transaction request to the server and the transaction server, in response to a client transaction request, executes an electronic payment transaction at the server and records the transaction in the transaction database. The server receipt generation module, in response to an executed electronic payment, then generates a receipt and transmits the receipt to the client. The receipt includes the client digital signature and a data set uniquely identifying the executed transaction and is printable by the client printer. The printed receipt is an evidence of payment for the executed transaction. In addition, a third party seller having a processor and a database can be connected via a communication channel to the server, wherein the client further obtains a registration certificate representative of being a consumer registered with said third party seller. A third party credit facility also may be connected via a communication link to the server, for implementing credit card transactions. The transaction execution system may be to purchase an amount of postage, to purchase a ticket for air travel or to an entertainment complex or the like.

Claims

1. A system for conducting Internet based financial transactions comprising:

a client having a processor, a printer, a client authentication module, a module for issuing a transaction request, and a unique digital signature;

a server having a network including a transaction server, a transaction database, a server authentication module, and a receipt generation module; and

an internet connection between the client and the server network;

wherein the transaction execution system further comprises;

an authentication module, wherein the client authentication module and the server authentication modules communicate via the internet connection and are authenticated to each other;

a transaction module wherein, in response to the client and server being authenticated, the client issues a transaction request to the server and the transaction server, in response to a client transaction request, executes an electronic payment transaction at the server and records the transaction in the transaction database, and wherein the server receipt generation module, in response to an executed electronic payment, generates a receipt and transmits said receipt to the client, said receipt comprising the client digital signature and a data set uniquely identifying the executed transaction; and

wherein the receipt is printable by the client printer and the printed receipt is an evidence of payment for the executed transaction.

2. The system of claim 1 wherein the module for issuing a transaction request further comprises means for providing the transaction request with the client digital signature.

3. The system of claim 2 wherein the server further comprises a unique digital signature and the receipt further comprises the server digital signature.

4. The system of claim 1 wherein the server further comprises a first server, a firewall and a single TCP/IP port, the first server is connected to the interact connection, the firewall is interposed between the server first server and transaction server so that the transaction server is connected to the network through the single TCP/IP port and the firewall comprises a communication module that operates to limit communications between the internet and the transaction server to client transaction requests identifying the single TCP/IP port.

5. The system of claim 1 further comprising:

a third party seller having a processor and a database; and

a communication channel between the third party seller and the server,

wherein the client further comprises a registration certificate representative of being a consumer registered with said third party seller.

6. The system of claim 5 further comprising a transaction module wherein said third party seller database is updated by said server transaction database.

7. The system of claim 1 further comprising a third party credit facility and a communication link between the third party credit facility and the server, wherein the server further comprises a credit module wherein, in response to a client transaction request, a credit card payment request is made by the server to the third party credit facility, the third party credit facility authorizes the credit card payment and issues an authorization code to the server, and the server transaction database is updated.

8. The system of claim 1 wherein the transaction request further comprises a request to purchase an amount of postage, an addressee data set, and wherein the server transaction database further comprises a pool of postage prepaid by said server, and an account register associated with said client, wherein the client transaction request operates to transfer the requested amount of postage from said pool to said client account register.

9. The system of claim 1 wherein the client further comprises a client public key, a client private key, and a client identification password, a hash module for performing a hash algorithm based on an input data, a hash of at least one of the client public key, private key and identification password, and an encryption/decryption module for encrypting and decrypting at least one of the client private key and client public key based on said hash;

wherein the server further comprises a server public key, a server private key, and a server identification password, a hash module for performing a hash algorithm based on an input data, a hash of at least one of the server public key, private key and identification password, and an encryption/decryption module for encrypting and decrypting at least one of the server private key and server public key based on said hash; and

wherein said authentication module utilizes said public and private keys of said client and server to perform the authentication.

10. A method for conducting Internet based financial transactions comprising:

providing a client having a processor, a printer, a client authentication module, a module for issuing a transaction request, and a unique digital signature;

providing a server having a network including a transaction server, a transaction database, a server authentication module, and a receipt generation module;

connecting the client to the server network via an internet connection;

authenticating the client and the server to each other;

issuing a transaction request from the client to the server;

in response to a client transaction request, executing an electronic payment transaction at the transaction server and recording the transaction in the transaction database, generating a receipt at the server receipt generation module, providing said receipt with the client digital signature and a data set uniquely identifying the executed transaction, and transmitting said receipt to the client; and

printing said receipt using the client printer, wherein the printed receipt is an evidence of payment for the executed transaction.

11. The method of claim 10 wherein issuing a transaction request further comprises providing the transaction request with the client digital signature.

12. The method of claim 11 further comprising providing the server with a unique digital signature and providing the receipt further comprises providing the server digital signature as a part of the receipt.

13. The method of claim 10 wherein providing the server further comprises providing a single TCP/IP port connecting the first server to the internet connection with said client and limiting communications between the internet and the transaction server to client transaction requests identifying the single TCP/IP port.

14. The method of claim 10 further comprising providing a third party seller, connecting the third party seller and the server via a communication channel and providing the client with a registration certificate representative of being a consumer registered with said third party seller.

15. The method of claim 14 further comprising providing the third party seller with a transaction database and updating said third party seller transaction database by said server.

16. The method of claim 10 further comprising providing a third party credit facility, connecting the third party credit facility and the server via a communication link and in response to a client transaction request, issuing a credit card payment request by the server to the third party credit facility, authorizing the credit card payment by the third party credit facility and issuing an authorization code to the server, and updating the server transaction database.

17. The system of claim 10 wherein issuing the transaction request further comprises issuing a request to purchase an amount of postage, an addressee data set, and wherein the server transaction database further comprises a pool of postage prepaid by said server, and an account register associated with said client, wherein issuing the client transaction request further comprises transferring the requested amount of postage from said pool to said client account register.

18. The system of claim 10 wherein authenticating the client and the server further comprises providing the client with a client public key, a client private key, a client identification password, a hash module for performing a hash algorithm based on an input data, a hash of at least one of the client public key, private key and identification password, and an encryption/decryption module for encrypting and decrypting at least one of the client private key and client public key based on said hash;

providing the server a server public key, a server private key, a server identification password, a hash module for performing a hash algorithm based on an input data, a hash of at least one of the server public key, private key and identification password, and an encryption/decryption module for encrypting and decrypting at least one of the server private key and server public key based on said hash; and

using said public and private keys of said client and server to perform the authentication.