Method and apparatus for ordering goods, services and content over an internetwork using a virtual payment account

• US 7,606,760 B2
• Filed: 09/24/2003
• Issued: 10/20/2009
• Est. Priority Date: 06/18/1999
• Status: Active Grant

• Current Assignee: Stripe, Inc.
• Original Assignee: eCharge Corporation
• Inventors: Chedalawada, Alan, Llewellyn, Robert, Griffiths, David, Birch, David, Hutchison, Robin B., Fleming, George A.
• Primary Examiner(s): CHEUNG, MARY DA ZHI WANG
• Application Number:
  US10/671,320
• Publication Number:
  US 20050192896A1
• Time in Patent Office: 2,218 Days
• Field of Search: 705/26, 705/36, 705 39- 44, 705 64- 68, 705 71- 79, 902 1- 11, 902/22, 902/24, 707 9- 10, 709223-226
• US Class Current: 705/39
• 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 20/401 Transaction verification
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]

Abstract

A virtual payment card system for ordering and paying for goods, services and content over an internetwork is disclosed. The virtual payment card system comprises a commerce gateway component (52) and a credit processing server component (53). The virtual payment card system is a secure closed system comprising registered merchants and consumers. A consumer becomes a registered participant by applying for a virtual payment card. Likewise, a merchant becomes registered by applying for a merchant account. A consumer can instantly open an account on-line. That is, the credit processing component (53) immediately evaluates the consumer'"'"'s virtual payment card application and assigns a credit limit to the account. Once an account is established, a digital certificate is stored on the registered participant'"'"'s computer. The consumer can then order a product, i.e., goods, services or content from a merchant and charge it to the virtual payment card. When the product is shipped, the merchant notifies the commerce gateway component (52), which in turn notifies the credit processing server which applies the charges to the consumer'"'"'s virtual card account. The consumer can settle the charges using a prepaid account, a credit card, or by using reward points earned through use of the virtual payment card. A consumer may create sub-account that have additional limitations imposed on the owner of the sub-account.

Claims

1. A method for purchasing a product from a merchant server using a virtual payment account, the merchant server storing a product database containing information regarding tangible items offered for sale, the method comprising:

in association with a merchant server receiving an order from a consumer computer to purchase a tangible product from the merchant server using a virtual payment account, transmitting an authentication request via a secure link to a commerce gateway that serves a plurality of merchant servers, including the merchant server;

in response to the commerce gateway receiving the authentication request, determining whether a valid virtual payment account maintained by the commerce gateway is associated with the consumer computer;

in response to the commerce gateway determining that a valid virtual payment account is associated with the consumer computer, returning an account identifier to the consumer computer;

in response to the merchant server receiving the order to purchase the tangible product and the account identifier from the consumer computer, obtaining a valid transaction authorization from the commerce gateway; and

in response to the merchant server receiving the valid transaction authorization, completing the purchase of the tangible product.

2. The method of claim 1, wherein determining whether a valid virtual payment account maintained by the commerce gateway is associated with the consumer computer comprises:

transmitting the authentication request from said consumer computer to the commerce gateway;

determining at said commerce gateway whether a valid virtual payment account is associated with said consumer computer; and

transmitting an account identification container to said consumer computer in response to determining that said consumer computer is associated with the valid virtual payment account.

3. The method of claim 2, wherein said authentication request comprises a digital certificate.

4. The method of claim 2, wherein applying a cost of said product to said virtual payment account comprises:

receiving said account identification container at said merchant server;

transmitting said account identification container and said cost of said product from said merchant server to said commerce gateway;

determining whether said virtual payment account may be charged for said cost of said product; and

in response to determining that said virtual payment account may be charged for said cost of said product, transmitting a valid transaction authorization from said commerce gateway to said merchant server.

5. The method of claim 2, wherein said virtual payment account comprises a main account and at least one sub-account.

6. The method of claim 5, wherein said sub-account is operative only to accept charges from a predetermined list of merchant servers.

7. The method of claim 5, wherein a spending limit may be set by said consumer for said sub-account.

8. A method for purchasing a product from a merchant server using a virtual payment account associated with a consumer computer, the merchant server storing a product database containing information regarding tangible items offered for sale, the method comprising:

in association with a merchant server receiving an order from said consumer computer to purchase a tangible product using a virtual payment account as the method of payment for said product, transmitting an authentication request via a secure link to a commerce gateway that serves a plurality of merchant servers, including the merchant server;

in response to the commerce gateway receiving said authentication request at said commerce gateway, determining whether a valid virtual payment account is associated with said consumer computer at said commerce gateway;

in response to the commerce gateway determining that a valid virtual payment account is associated with said consumer computer, transmitting an account identification container to said consumer computer;

transmitting a purchase request including said account identification container from said consumer computer to said merchant server;

transmitting said purchase request from said merchant server to said commerce gateway;

receiving said purchase request at said commerce gateway and determining whether said virtual payment account may be used to pay for said product;

in response to determining that said virtual payment account may be used to pay for said product, transmitting a valid transaction authorization from said commerce gateway to said merchant server and said consumer computer;

charging said virtual payment account for a cost associated with said product; and

providing said tangible product to a consumer associated with said consumer computer by shipping the tangible product to the consumer.

9. The method of claim 8, wherein said virtual payment account comprises a main account and at least one sub-account.

10. The method of claim 9, wherein charging said virtual payment account for a cost associated with said product comprises charging said sub-account for a cost associated with said product.

11. The method of claim 10, further comprising:

determining whether said sub-account is authorized to receive a charge from said merchant server; and

charging said sub-account for a cost associated with said product in response to determining that said sub-account is authorized to receive said charge from said merchant server.

12. The method of claim 9, wherein determining whether said virtual payment account may be used to pay for said product comprises determining whether a spending limit has been exceeded.

13. The method of claim 8, wherein said virtual payment account comprises a credit account.

14. The method of claim 8, wherein said virtual payment account comprises a pre-paid account.

15. The method of claim 8, wherein said authentication request comprises a digital certificate, and wherein said digital certificate is transmitted to said commerce gateway via a secure link.

16. The method of claim 15, wherein said digital certificate is created at said commerce gateway and is transmitted to said consumer computer at the time a virtual payment account associated with said consumer computer is created.

17. The method of claim 16, wherein said digital certificate is encrypted.

18. A computer-controlled apparatus for performing the method of claim 8.

19. A computer-readable medium containing instructions which, when executed by a computer, perform the method of claim 8.