System and method for biometric authorization for financial transactions

• US 7,269,737 B2
• Filed: 09/20/2002
• Issued: 09/11/2007
• Est. Priority Date: 09/21/2001
• Status: Expired due to Fees

• Current Assignee: Open Invention Network LLC
• Original Assignee: Pay By Touch Checking Resources, Inc.
• Inventors: Robinson, Timothy
• Primary Examiner(s): Abdi, Kambiz
• Assistant Examiner(s): LE, NANCY LOAN T
• Application Number:
  US10/251,305
• Publication Number:
  US 20030061172A1
• Time in Patent Office: 1,817 Days
• Field of Search: 713/186, 713/200, 382/115, 702/179, 235/382, 705/64, 705/67, 340/5.52, 340/5.53, 340 582- 584
• US Class Current: 713/186
• CPC Class Codes: G06F 16/22 Indexing; Data structures therefor; Storage structures
• CPC Class Codes: G06F 21/32 using biometric data, e.g. fingerprints, iris scans or voiceprints
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/3674 involving authentication
• CPC Class Codes: G06Q 20/3678 e-cash details, e.g. blinded, divisible or detecting double spending
• CPC Class Codes: G06Q 20/3821 Electronic credentials
• CPC Class Codes: G06Q 20/4014 Identity check for transactions
• CPC Class Codes: G06Q 20/40145 Biometric identity checks
• CPC Class Codes: G07C 9/257 electronically G07C9/26 takes precedence
• CPC Class Codes: G07C 9/27 with central registration

Abstract

The present invention is a system and method of biometric-based identity verification for authorizing financial transactions between a consumer and a merchant, said system comprising distributed processing to facilitate biometric matching and various types of financial transactions to facilitate said system'"'"'s integration into current financial networks. System users register at least one biometric identifier, personal and/or business identity-verifying data, and financial account information. A user presents a biometric sample obtained from the user'"'"'s person and the user'"'"'s system ID number to conduct financial transactions. This data is used to authenticate the user'"'"'s identity and authorize transfer of funds from the user'"'"'s registered financial account to the designated recipient'"'"'s account by matching the presented transaction biometric with at least one registered biometric template and without the use of a man-made financial account token or identity token.

Claims

1. A method of using a transaction system to provide approval of a transaction between a payee and a payor, the transaction system having a central database that has stored therein registered biometric data associated with the payor through a payor identification code, and at least one approval station configured to access the central database, wherein the method comprises:

sampling, at the approval station, at a first location, a biometric characteristic of the payor via a biometric identification device;

receiving, at the approval station, an identification code proffered by the payor;

sending from the approval station to the central database, at a second location remote from the first location, the identification code proffered by the payor;

comparing, at the central database, the proffered identification code to payor identification codes stored in the central database;

determining, at the central database, whether the proffered identification code matches a payor identification code stored in the central database;

in the event the proffered identification code matches a payor identification code stored in the central database, selecting, at the central databases potential matching registered biometric data based on the proffered identification code;

receiving, at the approval station, the potential matching registered biometric data from the central database;

determining, at the approval station, whether a comparison of transaction biometric data based on the sampled biometric characteristic with the potential matching registered biometric data indicates a match; and

in the event that a match is indicated, approving, at the approval station, the transaction.

2. The method of using a transaction system as claimed in claim 1, wherein the payor identification code is unique.

3. The method of using a transaction system as claimed in claim 1, wherein the payor identification code is reasonably unique.

4. The method of using a transaction system as claimed in claim 1, wherein the payor identification code is not unique.

5. The method of using a transaction system as claimed in claim 1, wherein the biometric characteristic is a fingerprint of the payor.

6. The method of using a transaction system as claimed in claim 1, wherein the biometric characteristic is an iris of the payor.

7. The method of using a transaction system as claimed in claim 1, wherein the biometric characteristic is a face of the payor.

8. The method of using a transaction system as claimed in claim 1, wherein the biometric characteristic is a voice of the payor.

9. The method of using a transaction system as claimed in claim 1, wherein the biometric characteristic is a retinal of the payor.

10. The method of using a transaction system as claimed in claim 1, wherein the biometric characteristic is a hand architecture of the payor.

11. A method of using a transaction system to provide approval of a transaction between a payee and a payor, the transaction system having a central database that has stored therein registered biometric data associated with the payor through a payor identification code, and wherein the central database is configured to apply transaction rules, and at least one approval station configured to access the central database, wherein the method comprises:

sampling, at the approval station, at a first location, a biometric characteristic of the payor via a biometric identification device;

receiving, at the approval station, an identification code proffered by the payor;

assembling, at the approval station, transaction data;

sending from the approval station to the central database, at a second location remote from the first location, the identification code proffered by the payor and the transaction data;

comparing, at the central database, the proffered identification code to payor identification codes stored in the central database;

determining, at the central database, whether the proffered identification code matches a payor identification code stored in the central database;

determining, at the central database, whether the transaction data complies with the transaction rules;

selecting, at the central database, potential matching registered biometric data based on the payor identification code;

receiving, at the approval station, the potential matching registered biometric data from the central database;

determining, at the approval station, whether a comparison of transaction biometric data based on the sampled biometric characteristic with the potential matching registered biometric data indicates a match; and

in the event that a match is indicated and the transaction data complies with the transaction rules, approving, at the approval station, the transaction.

12. The method of using a transaction system as claimed in claim 11, wherein the transaction data comprises an amount to be paid by the payor to the payee.

13. The method of using a transaction system as claimed in claim 12, wherein the transaction data further comprises at least one account from which the amount is to be paid.

14. The method of using a transaction system as claimed in claim 11, wherein the transaction data comprises a terminal identification number associated with the approval station.

15. The method of using a transaction system as claimed in claim 11, wherein the transaction data comprises a transaction reference number associated with the transaction.

16. The method of using a transaction system as claimed in claim 11, wherein determining, at the central database, whether the transaction data complies with the transaction rules comprises determining that a transaction does not exceed a payment amount limit.

17. The method of using a transaction system as claimed in claim 11, wherein determining, at the central database, whether the transaction data complies with the transaction rules comprises determining whether a payor meets or exceeds a minimum credit rating.

18. The method of using a transaction system as claimed in claim 11, wherein determining, at the central database, whether the transaction data complies with the transaction rules comprise determining if the transaction amount exceeds a minimum balance in an account.

19. The method of using a transaction system as claimed in claim 11, wherein determining, at the central database, whether the transaction data complies with the transaction rules further comprise determining if the transaction complies with a parameter established by a payee or a payor.

20. A method of using a transaction system to provide approval of a transaction between a payee and a payor, the transaction system having a central database that has stored therein registered payor biometric data associated with the payor through a payor identification code and registered payee biometric data associated with the payee through a payee identification code, and at least one approval station configured to access the central database, wherein the method comprises:

sampling, at the approval station, at a first location, a payee biometric characteristic via a biometric identification device;

receiving at the approval station a payee identification code proffered by the payee;

sampling, at the approval station, a payor biometric characteristic via a biometric identification device;

receiving, at the approval station, a payor identification code proffered by the payor;

assembling, at the approval station, transaction data;

sending from the approval station to the central database, at a second location remote from the first location, the payee identification code proffered by the payee, the payor identification code proffered by the payor and the transaction data;

determining, at the central database, whether the proffered payee identification code matches a payee identification code stored in the central database;

determining, at the central database, whether the proffered payor identification code matches a payor identification code stored in the central database;

determining, at the central database, whether the transaction data complies with the transaction rules;

in the event that the proffered payee identification code matches a payee identification code stored in the central database, the proffered payor identification code matches a payor identification code stored in the central database, and the transaction data complies with the transaction rules, selecting, at the central database, potential matching registered payee biometric data based on the payee identification code and potential payor registered biometric data based on the payor identification code;

receiving, at the approval station, the potential matching registered payee biometric data from the central database and the potential matching registered payor biometric data from the central database;

determining, at the approval station, whether a comparison of transaction payee biometric data based on the sampled payee biometric characteristic with the potential matching registered payee biometric data received from the central database indicates a payee biometric match;

determining, at the approval station, whether a comparison of transaction payor biometric data based on the sampled payor biometric characteristic with the potential matching registered payor biometric data received from the central database indicates a payor biometric match; and

in the event that the payee biometric match and the payor biometric match are indicated, approving, at the approval station, the transaction.

21. A method of using a transaction system to provide approval of a transaction between a payee and a payor, the transaction system having a first database that has stored therein registered payor biometric data associated with the payor through a payor identification code, a second database that has stored therein registered payee biometric data associated with the payee through a payee identification code, and at least one approval station configured to access the first and second databases, wherein the method comprises:

sampling, at the approval station, at a first location, a payee biometric characteristic via a biometric identification device;

receiving at the approval station a payee identification code proffered by the payee;

sampling, at the approval station, a payor biometric characteristic via a biometric identification device;

receiving, at the approval station, a payor identification code proffered by the payor;

assembling, at the approval station, transaction data;

sending from the approval station to the first database, at a second location remote from the first location, the payor identification code proffered by the payor and the transaction data;

determining, at the approval station, whether the proffered payee identification code matches a payee identification code stored in the second database;

determining, at the first database, whether the proffered payor identification code matches a payor identification code stored in the first database;

determining, at the first database, whether the transaction data complies with the transaction rules;

in the event that the proffered payee identification code matches a payee identification code stored in the second database, the proffered payor identification code matches a payor identification code stored in the first database, and the transaction data complies with the transaction rules, selecting, at the first database, potential payor registered biometric data based on the payor identification code and selecting, at the second database, potential matching payee registered biometric data based on the payee identification code;

receiving, at the approval station, the potential matching registered payee biometric data from the second database;

receiving, at the approval station, the one or more potential matching payor biometric templates from the first database;

determining, at the approval station, whether a comparison of transaction payee biometric data based on the sampled payee biometric characteristic with the potential matching registered payee biometric data indicates a payee biometric match;

determining, at the approval station, whether a comparison of transaction payor biometric data based on the sampled payor biometric characteristic with the potential matching registered payor biometric data received from the first database indicates a payor biometric match;

in the event that the payee biometric match and the payor biometric match are indicated, approving, at the approval station, the transaction.