System and method for securing a recurrent billing transaction

• US 7,650,314 B1
• Filed: 11/30/2005
• Issued: 01/19/2010
• Est. Priority Date: 05/25/2001
• Status: Expired due to Fees

• Current Assignee: Liberty Peak Ventures, LLC (Dominion Harbor Enterprises, LLC)
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Saunders, Peter
• Primary Examiner(s): Hewitt, II, Calvin L
• Assistant Examiner(s): Qayyum, Zeshan
• Application Number:
  US11/164,609
• Time in Patent Office: 1,511 Days
• Field of Search: 705/64, 705/39, 705/44
• US Class Current: 705/64
• 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 20/04 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 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/14 specially adapted for billing systems
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• CPC Class Codes: G06Q 20/327 Short range or proximity payments by means of M-devices
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• 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: G07C 9/28 the pass enabling tracking or indicating presence
• CPC Class Codes: G07C 9/29 the pass containing active electronic elements, e.g. smartcards

Abstract

A system and method for securing a recurrent billing transaction using a marked proxy code is disclosed. The marked proxy code includes a merchant system marker which is assigned to the merchant and a proxy code assigned to a consumer. An account issuer assigns the proxy code to the consumer and assigns the merchant system marker to one or more merchants. During system operation, a merchant provides an account issuer with a request to establish a recurrent billing account and the account issuer returns to the merchant a marked proxy code including a merchant system marker and the proxy code provided by the merchant. If a merchant requests satisfaction of a transaction, the merchant transaction request includes the marked proxy account number. The account issuer receives the marked account number and validates the merchant system marker and the proxy code prior to validating the merchant'"'"'s transaction request.

Claims

1. An account issuer system comprising:

a processor;

a network interface communicating with the processor;

a memory connected to said processor;

the memory storing instructions that, when executed, cause the processor to perform the steps of;

receiving, from a merchant system, a request to establish a recurrent billing account, said request including a proxy code associated with a primary account number associated with a transaction account wherein said merchant receives a request from a customer to set up said recurring billing account funded by said transaction account;

assigning a merchant system marker to said merchant system to identify said merchant system;

creating a marked proxy code by appending said merchant system marker to said proxy code;

storing said marked proxy code correlative with said merchant system in said memory;

sending said marked proxy code to said merchant system;

receiving, from said merchant system, a merchant transaction request including said marked proxy code; and

validating said marked proxy code prior to authorizing satisfaction of said merchant transaction request.

2. The system of claim 1, wherein said merchant system marker is associated with a plurality of merchant systems.

3. The system of claim 1, wherein said merchant system marker is associated with said merchant system.

4. The system of claim 1, wherein said proxy account number is in magnetic stripe ISO/IEC 7813 format.

5. The system of claim 1, wherein said account issuer program is configured to append said merchant system marker to said proxy account number to form said marked proxy account number.

6. The system of claim 1, wherein said account issuer program appends said merchant system marker to said proxy account number using at least a portion of a magnetic stripe format.

7. The system of claim 1, wherein said merchant system marker is a digital signature.

8. The system of claim 1, wherein said memory is configured to store a decryption key for use in decrypting a digital signature during validation of said merchant system marker.

9. The system of claim 1, wherein said merchant system is configured to send a merchant transaction request, comprising said marked proxy account number, to said account issuer system, and said account issuer program is configured to retrieve a decryption key for use in validating said merchant system marker.

10. The system of claim 1, wherein said account issuer program is configured to validate said marked proxy account number provided by said merchant system, said account issuer program configured to retrieve said marked proxy account number stored in said memory and to compare said marked proxy account number provided by said merchant system to said marked proxy account number stored in said account issuer database to determine if a match exists.

11. A method for securing recurrent billing transactions comprising:

receiving, by an account issuer computer and from a merchant system, a request to establish a recurrent billing account, said request including a proxy code associated with a primary account number associated with a transaction account, wherein said merchant receives a request from a customer to set up said recurring billing account funded by said transaction account;

assigning, by said account issuer computer, a merchant system marker to said merchant system to identify said merchant system;

creating, by said account issuer computer, a marked proxy code by appending said merchant system marker to said proxy code;

storing, by said account issuer computer, said marked proxy code correlative with said merchant system in a database;

sending, by said account issuer computer, said marked proxy code to said merchant system;

receiving, by said account issuer computer and from said merchant system, a merchant transaction request including said marked proxy code; and

validating, by said account issuer computer, said marked proxy code prior to authorizing satisfaction of said merchant transaction request.

12. The method of claim 11, wherein said validating said marked proxy code comprises:

retrieving said merchant system marker stored in said database;

determining a second merchant system marker based upon said marked proxy code included in said merchant transaction request;

comparing said merchant system marker retrieved from said database to said second merchant system marker; and

validating said merchant transaction request if said merchant system marker retrieved from said database corresponds to said second merchant system marker.

13. The method of claim 12, wherein said retrieving said merchant system marker stored in said database includes recalculating said merchant system marker using a secret key.

14. The method of claim 11, wherein said assigning said merchant system marker to said merchant system includes assigning said merchant system marker comprising a digital signature, said digital signature created by deriving a secret key.

15. The method of claim 14, wherein said deriving said secret key includes calculating said secret key from a merchant identification number using an encryption algorithm for secure key creation.

16. The method of claim 14, wherein said deriving said secret key includes using a Security Access Module.

17. The method of claim 11, wherein said storing said marked proxy code includes storing said marked proxy code on said database wherein said database is further configured to store a merchant system marker decryption key corresponding to said merchant system marker.

18. The method of claim 17, wherein said validating said merchant system transaction request comprises:

retrieving said merchant system marker decryption key from said database;

decrypting said merchant system marker received in said merchant transaction request using said merchant system marker decryption key to form a decrypted merchant system marker;

verifying said decrypted merchant system marker using at least one of said merchant marker decryption key, said proxy code, a merchant identification number and data elements that are included in said digital signature;

comparing said decrypted merchant system marker to said merchant system marker stored in said database; and

validating said merchant transaction request if said decrypted merchant system marker corresponds to said merchant system marker stored in said database.