Method for validating an electronic payment by a credit/debit card

• US 7,769,697 B2
• Filed: 09/11/2006
• Issued: 08/03/2010
• Est. Priority Date: 07/13/2000
• Status: Active Grant

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: International Business Machines Corporation
• Inventors: Fieschi, Jacques, Roy, Pascal, Le Pennec, Jean-Francois, Michel, Patrick
• Primary Examiner(s): Worjloh; Jalatee
• Application Number:
  US11/530,736
• Publication Number:
  US 20070005514A1
• Time in Patent Office: 1,422 Days
• Field of Search: 705 64- 79, 705 35- 44, 713/156
• US Class Current: 705/72
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/085 involving remote charge determination or related payment systems
• CPC Class Codes: G06Q 20/0855 involving a third party
• CPC Class Codes: G06Q 20/347 Passive cards
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 20/401 Transaction verification
• 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 20/4037 Remote solvency checks
• CPC Class Codes: G06Q 20/425 using two different networks, one for transaction and one for security confirmation
• CPC Class Codes: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02
• CPC Class Codes: G07F 7/10 together with a coded signal , e.g. in the form of personal identification information, like personal identification number [PIN] or biometric data
• CPC Class Codes: G07F 7/1075 PIN is checked remotely

Abstract

A method for validating an electronic payment by a credit/debit card in a transaction system. The method includes registering a purchase of an article by a buyer using a credit/debit card associated with at least one PIN code, checking that the at least one PIN code is associated with the number of said credit/debit card provided by said buyer to said seller terminal, checking, by said electronic payment center, whether or not said at least one PIN code is valid, and one of: after the at least one PIN code is found to be valid, checking, by said electronic payment center, whether the electronic payment center has received a pre-validation from a third party; after the at least one PIN code is found to be valid, contacting a third party via a communication network and requesting that the third party validate the purchase; and after the at least one PIN code is found to be valid, contacting a third party via a communication network and requesting said at least one PIN code from the third party. The third party is a prime owner of the credit/debit card.

Claims

1. A method for validating an electronic payment by a credit/debit card in a transaction system, comprising:

registering a purchase of at least one article by a buyer using a credit/debit card associated with at least one PIN code at a seller terminal connected to an electronic payment center by a communication network;

receiving, at the electronic payment center, information associated with the purchase from the buyer;

checking, by the electronic payment center, that the at least one PIN code which has been received by said electronic payment center from said buyer is associated with the number of said credit/debit card provided by said buyer to said seller terminal;

checking, by said electronic payment center, whether or not said at least one PIN code is valid; and

after the at least one PIN code is found to be valid, contacting a third party via a communication network and requesting said at least one PIN code from the third party,

wherein the third party is a prime owner of the credit/debit card.

2. The method according to claim 1, wherein said buyer has a terminal which is connected to the communication network and said terminal is configured to transmit the number of the credit/debit card.

3. The method according to claim 1, wherein the credit/debit card number and the at least one PIN code which have been provided to said seller terminal by said buyer are transmitted to said electronic payment center to check whether the at least one PIN code is associated with said credit/debit card number.

4. The method according to claim 3, wherein said electronic payment center checks in at least one profile table whether said PIN code is associated with the credit/debit card number.

5. A system for validating an electronic payment by a credit/debit card comprising a system adapted for carrying out the steps of the method according to claim 1.

6. The method of claim 1, wherein each PIN code of the at least one PIN code is used only once and a different PIN code of the at least one PIN code is used for a later transaction.

7. The method of claim 1, wherein the at least one PIN code is associated with two or more members of a group and the group is associated with the number of the credit/debit card.

8. The method of claim 7, wherein the at least one PIN code is different for different members of the group, and wherein the at least one PIN code authorizes a different purchasing amount for the different members of the group.

9. The method of claim 7, wherein the third party is a member of the group and the third party limits a transaction involving the credit/debit card to a pre-determined purchasing amount.

10. The method of claim 1, further comprising checking, by said electronic payment center, whether the electronic payment center has received a pre-validation from the third party.

21. The method according to claim 1, wherein the receiving information comprises receiving an encrypted message at the electronic payment center.

22. The method according to claim 21, wherein the electronic payment center receives the pre-validation from the third party in the form of the at least one PIN code from the third party.

23. The method according to claim 21, wherein, when the electronic payment center does not receive the pre-validation from the third party, the electronic payment center contacts the third party and obtains the at least one PIN code from the third party in order to compare it to the at least one PIN code provided by said buyer.

24. The method according to claim 1, wherein the information comprises the at least one PIN code.

25. The method of claim 24, wherein the information includes an identification of the purchase and a date and time of the purchase.

26. The method of claim 25, wherein the information is sent at a same time that the buyer sends an order through the network to the seller terminal.

27. The method of claim 26, wherein the information is encrypted.

11. A method for validating an electronic payment by a credit/debit card in a transaction system, comprising:

registering a purchase of at least one article by a buyer using a credit/debit card associated with at least one PIN code at a seller terminal connected to an electronic payment center by a communication network;

receiving, at the electronic payment center, information associated with the purchase from the buyer;

checking, by the electronic payment center, that the at least one PIN code which has been received by said electronic payment center from said buyer is associated with the number of said credit/debit card provided by said buyer to said seller terminal;

checking, by said electronic payment center, whether or not said at least one PIN code is valid; and

after the at least one PIN code is found to be valid, contacting a third party via a communication network and requesting said at least one PIN code from the third party, wherein the third party is a prime owner of the credit/debit card.

12. A system for validating an electronic payment by a credit/debit card comprising a system adapted for carrying out the steps of the method according to claim 11.

13. The method according to claim 11, wherein each PIN code of the at least one PIN code is used only once and a different PIN code of the at least one PIN code is used for a later transaction.

14. The method according to claim 11, wherein the at least one PIN code is associated with two or more members of a group and the group is associated with the number of the credit/debit card.

15. A method for validating an electronic payment by a credit/debit card in a transaction system, comprising:

registering a purchase of an article by a buyer using a credit/debit card associated with at least one PIN code at a seller terminal connected to an electronic payment center by a communication network;

receiving, at the electronic payment center, information associated with the purchase from the buyer;

checking, by the electronic payment center, that the at least one PIN code which has been received by said electronic payment center from said buyer is associated with a number of said credit/debit card provided by said buyer to said seller terminal;

checking, by said electronic payment center, whether or not said at least one PIN code is valid; and

after the at least one PIN code is found to be valid, performing each of;

checking, by said electronic payment center, whether the electronic payment center has received a pre-validation from a third party; and

contacting a third party via a communication network and requesting that the third party validate the purchase using at least one PIN code from the third party, wherein the third party is a prime owner of the credit/debit card.

16. The method according to claim 15, further comprising transmitting, with the seller terminal, the number of the credit/debit card.

17. The method according to claim 15, further comprising checking, by the electronic payment center, whether the at least one PIN code is associated with the credit/debit card number in at least one profile table.

18. A system for validating an electronic payment by a credit/debit card comprising a system adapted for carrying out the steps of the method according to claim 15.

19. The method according to claim 15, wherein each PIN code of the at least one PIN code is used only once and a different PIN code of the at least one PIN code is used for a later transaction.

20. The method according to claim 15, wherein the at least one PIN code is associated with two or more members of a group and the group is associated with the number of the credit/debit card.