WO2001084454A1 - Procede electronique de paiement sur reduisant les possibilites de fraude et les couts de transaction - Google Patents

Procede electronique de paiement sur reduisant les possibilites de fraude et les couts de transaction Download PDF

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Publication number
WO2001084454A1
WO2001084454A1 PCT/US2001/003767 US0103767W WO0184454A1 WO 2001084454 A1 WO2001084454 A1 WO 2001084454A1 US 0103767 W US0103767 W US 0103767W WO 0184454 A1 WO0184454 A1 WO 0184454A1
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WO
WIPO (PCT)
Prior art keywords
user
payment
vendor
purchase
order
Prior art date
Application number
PCT/US2001/003767
Other languages
English (en)
Inventor
Thomas A. Cocotis
Timothy A. Von Kaenel
Original Assignee
Cma Business Credit Services
Priority date (The priority date is an assumption and is not a legal conclusion. Google has not performed a legal analysis and makes no representation as to the accuracy of the date listed.)
Filing date
Publication date
Application filed by Cma Business Credit Services filed Critical Cma Business Credit Services
Priority to AU2001241451A priority Critical patent/AU2001241451A1/en
Publication of WO2001084454A1 publication Critical patent/WO2001084454A1/fr

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Classifications

    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/02—Payment architectures, schemes or protocols involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/04—Payment circuits
    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/08—Payment architectures
    • G06Q20/12—Payment architectures specially adapted for electronic shopping systems
    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/38—Payment protocols; Details thereof
    • G06Q20/385—Payment protocols; Details thereof using an alias or single-use codes

Definitions

  • the present invention pertains in general to electronic payment systems and in particular to the prevention of fraudulent transactions
  • AVS address verification services
  • a selected embodiment of the present invention is a method for secure payment for purchases made through a computer network such as the Internet.
  • a user must initially establish a secure and trusted relationship with a transaction service company to ensure that the user is correctly identified and that a secure communication channel can be established between the user and the transaction service company.
  • the user establishes a financial account with a financial institution or with the transaction service company and the user provides all information necessary for the transaction service company to transfer funds from the user account.
  • the user connects to a vendor through a computer network and selects goods or services for purchase from the vendor. After the selection of goods or services, the user selects the transaction service company as the method for payment.
  • the vendor provides the user with a purchase confirmation number corresponding to the transaction.
  • the vendor also provides the purchase confirmation number and a request for payment, including the payment amount and an identification of the goods/services, to the transaction service company.
  • the vendor information can be sent to the transaction service company via the user.
  • the user establishes the secure communication channel with the transaction service company and supplies the purchase confirmation number to the transaction service company.
  • a comparison is made by the transaction service company between the purchase confirmation numbers received from the user and the vendor to detect a match. If such a match is made, the transaction service company determines if the user's account has sufficient credit for the purchase. If this is confirmed, the vendor is advised by the transaction service company that the transaction is approved.
  • the vendor releases the goods/services to the user.
  • the vendor then makes a request for funds transfer for the purchase to the transaction service company.
  • the transaction service company submits a funds transfer request to the user financial institution that maintains the user account. This institution transfers the appropriate funds from the user account to an account for the vendor.
  • the user account can be with a institution separate from the service company, such as a bank issuing a credit card or debit card, may be established with a financial institution affiliated with the transaction service company or may be established at an account maintained by the transaction service company itself.
  • a institution separate from the service company such as a bank issuing a credit card or debit card
  • the process of authorization approval and funds transfer is performed by the transaction service company itself.
  • Fig. 1 is a schematic illustration of a conventional credit card payment network
  • Fig. 2 is a state diagram illustrating the operation of a prior art payment network as shown in Fig. 1
  • Fig. 3 is a schematic illustration of a verification and payment network in accordance with the present invention
  • Fig. 4 is a state diagram illustrating a payment system in accordance with the present invention in which funds payment is done through authorization with a user's financial institution
  • Fig. 5 is a state diagram representing an embodiment of the present invention in which funds transfer is performed through a service company bank affiliated with a transaction service company,
  • Fig. 6 is a state diagram illustrating a further embodiment of the present invention utilizing a line of credit of the user by the transaction service company
  • Fig. 7 is a state diagram illustrating a further embodiment of the present invention utilizing a credit line of the user and a bank associated with the transaction service company for funds transfer,
  • Fig. 8 is a state diagram of a still further embodiment of the present invention utilizing a line of credit of the user and an affiliated bank of the transaction service company for funds transfer,
  • Fig. 9 is a screen display for a vendor website illustrating a payment option selection in accordance with the present invention.
  • Fig. 10 is a screen display illustrating user verification of payment through a secure channel with a transaction service company by submission of a purchase confirmation number.
  • a network 20 utilizes Internet 22 for providing communications with a user 24 and vendor 26.
  • a network credit card interface 30 receives credit card information from Internet vendors and converts this information into a format which can be used by a credit card processor 32 for the conventional processing of credit card bills and payments between an issuing bank 34 associated with the user 24 and the vendor's bank 36 which associated with the vendor 26.
  • the establishment of an account together with the subsequent selection of a product and the processing of the payment is illustrated by the state diagram in Figure 2 through the following sequential steps
  • Request Autho ⁇ zation - Upon receiving the user's credit card information, the vendor 26 sends the credit card information and the amount of the purchase for an autho ⁇ zation to the network credit card interface 30 4 Request Authorization - The network credit card interface 30 then transmits the information after appropriate format translation to a credit card processor 32
  • the credit processor card 32 transmits a request for authorization for the purchase to the credit card issuing bank 34
  • the issuing bank 34 evaluates the credit card request and makes a determination such for the validity of the credit card and the availability of sufficient credit If the credit request is approved, the issuing bank 34 transmits an authorization approval back to the credit card processor 32
  • the credit card processor 32 transmits an authorization for that particular purchase back to the vendor 26 8 Deliver Goods/Services - Upon receiving the authorization, the vendor 26 delivers the goods/services to the user 24
  • Capture Funds The vendor 26 typically groups a number of purchases from users in a batch and transmits this batch in a request to capture funds to the credit card processor 32
  • Request For Payment - Credit card processor 32 processes its credit card information received from a wide variety of vendors and separates the request for each of the issuing banks and transfers a request for payment to the issuing bank
  • the issuing bank 34 accumulates all charges to a particular account and sends a bill to the user 24
  • Figures 1 and 2 is that it is subject to fraud
  • Each vendor in this system maintains a record of its customer credit card information
  • These records are subject to disclosure through break-in or inadvertence If an unauthorized party is able to obtain the credit card number, name and expiration date for a user, it is likely that this person can make a fraudulent purchase.
  • some methods of fraud prevention and security are provided, such as address verification service (AVS), but this likewise can be defeated by the wide availability of such information via the Internet
  • AVS address verification service
  • the incidence of fraud in commercial transactions on the Internet raises a serious problem that inhibits the development of Internet commerce.
  • the present invention is directed to the reduction of such fraud and a simplification of processing to lower the expenses incurred in making purchases through the Internet
  • the present invention provides a configuration and process that can substantially reduce the incidence of fraud in the payment of transactions through a network, such as the Internet, and further can reduce the number of processing steps thereby lowering the fees incurred in such payment processing.
  • a network 50 that illustrates the interaction of the entities and systems involved in an embodiment of the present invention.
  • the primary communication between the entities is provided by an Internet 52 communications network.
  • a user 54 such as an individual consumer, is connected to communicate through the Internet 52.
  • the user 54 can be connected to any one of multiple vendors such as 56 and 58.
  • a transaction service company 60 which is described below in greater detail, provides fraud protection and potentially more efficient processing for purchases made by the user 54 with any of the vendors 56 or 58
  • the user 54 establishes a line of credit with a user financial institution 62 such as by use of a credit card, debit card, cash deposit or other credit line
  • a user financial institution 62 such as by use of a credit card, debit card, cash deposit or other credit line
  • the vendor A(56) and B(58) have corresponding vendor A bank 64 and vendor B bank 66
  • the transaction service company 60 works with an affiliated service company bank 68
  • the user 54 initially establishes a trusted and secure relationship with the transaction service company 60 and provides the service company 60 with his financial information, such as credit card, debit card or line of credit such that the service company 60 can authorize payment from the user account to the vendor banks
  • the vendors 56 and 58 are set up with the transaction service company 60 to offer the service company 60 as an alternative for payment of goods and services in place of conventional credit or debit cards (see Fig 9)
  • the user 54 connects through the Internet 52 to a vendor, such as 56
  • the user 54 selects specific goods and/or services and then designates the transaction services company 60 for payment
  • the vendor 56 next sends a purchase confirmation number to the user 54
  • the user 54 then initiates a transfer connection to the service company 60, or is automatically transferred by the selection of the service company for payment
  • User 54 sets up a secure link by entering his user name, password and any other required security information
  • the purchase confirmation number received from the vendor 56 is provided to the service company 60
  • the purchase confirmation number is stored in the user's computer by the vendor and is automatically provided to the service company after the user has set up the secure communication channel to the service company
  • the purchase confirmation number can be sent to the service company Concurrently, the vendor 56 transmits the purchase confirmation number together with the purchase information, such as identification of the merchandise and
  • a state diagram 82 which includes a user 84, a user financial institution 86, a vendor 88, a vendor bank 90, and a transaction service company 92
  • the sequence of operations performed in this state diagram are as follows 1.
  • Initialize Account Debit/Credit Line The user 84 must first establish credit or funds available in some manner with the user financial institution 86 This can be the establishment of a credit card, a debit card account, a cash balance or any other type of credit line with the institution.
  • Initialize Service Company Account The user establishes a secure communication line and a trusted account with the transaction service company 92 This setup is done through one or more methods to establish a very high level of confidence that the user is indeed the person he is represented to be and not a fraudulent registrant This level of security is accomplished in a manner that is much more stringent than used for each typical transaction for a purchase through the Internet There are numerous methods available to ensure a very high level of security for this initialization.
  • Such secure setup techniques include:
  • the user 84 further provides account information at the user financial institution 86 to company 92 and authorizes the transaction service company 92 to perform fund transfers on behalf of the user 84
  • the user can further provide a shared secret, such as the name of a relative, as a backup to the password Company 92 can ask the shared secret question if the user 84 cannot remember his password
  • the information that is established during the initial account setup typically includes (a) User Legal Name,
  • the vendor 88 Upon completion of the selection of merchandise services by the user 84, the vendor 88 provides the user 84 with a purchase confirmation number corresponding to the transaction made between the user 84 and vendor 88.
  • the purchase confirmation number is stored in the user's computer
  • the vendor 88 sends the purchase confirmation number and a request for payment, which includes the amount of the purchase and any other information necessary for credit approval and payment, to the transaction service company 92
  • the vendor 88 can provide the same information to the service company 92 by transmission through the user 84.
  • the information can be secured with a digital signature of the vendor so that the validity and source of the information can be confirmed at the service company 92
  • the user is transferred to a web page of the transaction service company 92, as shown in Figure 10.
  • the user enters security information including the user's name and password
  • the user 84 may alternatively leave this field blank and be presented with a query as to his previously entered shared secret
  • the process continues for the processing of the payment
  • the secure channel is set up, the purchase confirmation number stored in the user's computer is automatically sent to the service company 92
  • Request Authorization - Upon receipt of the purchase confirmation number and request for payment information from the vendor 88 and matching this with the purchase confirmation number received through the secure communication with the user 84, the transaction service company 92 submits a request authorization for payment to the user financial institution 86 This includes all of the necessary information such as credit card, expiration date, amount of purchase and type of merchandise 8.
  • Authorization Approval - Upon evaluation of material received from the transaction service company 92, the user financial institution 86 determines if the request can be approved. If so, such approval is sent to the transaction service company 92
  • Request Funds Transfer The vendor 88 requests either singly or through batch processing a request for funds to pay for the transaction(s). This is sent to the transaction service company 92. 12 Request Funds Transfer - Upon receipt for a request for funds from the vendor 88, the transaction service company sends the request, either singly or in batch processing, to the user financial institution 86. This institution may be a bank, or it could represent a complete credit card processing system, such as described in reference to Figures 1 and 2 13 Transfer Funds - After receiving the request for a funds transfer from the transaction service company 92, the institution 86 effects a funds transfer to the vendor bank 90 Thus, the vendor 88 is paid for the goods or services purchased by the user 84
  • the user in making the purchase by the user 84 at the vendor 88 web site, the user does not need to enter his credit card, address and other information as is typically required for a purchase from a vendor through the Internet Thus, substantial time is saved by both the user and the vendor However, the requirement that both parties (user and vendor) send the purchase confirmation number to the transaction service company 92 substantially reduces the possibility of fraud
  • the user 54 has been extensively screened in advance and a secure communication channel can be established between the user 84 and the transaction service company 92 If a secure link is not established between these parties and the correct purchase confirmation number supplied by the user 84, the transaction is terminated for both delivery of goods/services and payment.
  • a fraudulent party would not only have to steal the credit card information and identify for the user 84, but would also have to obtain the user ID and password of that user in order to effect a fraudulent transaction
  • This user information can be retained by the user and need not ever be sent over a non-secure channel, such as normally done with credit card information. Thus, the security of the transaction is substantially increased.
  • a major security aspect of the present invention is that user's credit card information is not provided to the vendor when a purchase is made, Therefore, this information cannot be compromised by a security breach at the vendor. This is in sharp contrast to the existing systems in which each vendor maintains a file of credit card information for all of its customers
  • a still further important security aspect of the present invention is that the security codes applied by the user to set up the secure channel to the service company are never transmitted in an open context, as with credit card information and are thus much less subject to loss or compromise.
  • a further embodiment of the present invention is shown in a state diagram 110 in Figure 5. This diagram includes a user 112, a user financial institution 1 14, a vendor 116, a vendor bank 1 18, a transaction service company 120, and an affiliated service company bank 122. The sequential steps performed in this state diagram example are as follows. 1.
  • Initialize Account Debit/Credit Line - A financial relationship is set up for a debit, credit, cash deposit or other means with the user financial institution 114, which as noted, may be a bank issuing a credit card together with the processing entities required for that credit card or debit card processing, or a stand alone banking institution.
  • step number 4 the vendor 116 sends the purchase confirmation number and a request for payment, including at least the amount and identity of the merchandise/services to the transaction service company 120.
  • this information can be sent to the service company 120 via the user 112.
  • Purchase Confirmation Number The user 112 logs onto the transaction service company 120 website and provides identification and passwords to establish a highly secure communication channel with the service company 120 and through this channel sends the purchase confirmation number received from the vendor 1 16 for the purchase order.
  • Request Authorization The transaction service company 120 compares the purchase confirmation number received through the secure channel from the user 112 with the purchase confirmation number and request for payment received from the vendor 116. If these match, a request authorization is sent to the user financial institution (which may be a credit card processing network) 114 with the necessary information such as the amount of purchase, the merchandise, the user and vendor identification.
  • the user financial institution which may be a credit card processing network
  • Authorization Approval - The user financial institution 114 evaluates the received information from the transaction service company and determines if the user 1 12 has credit, cash on account, or other financial resources for payment of the requested funds If so, an authorization approval is transmitted to the transaction service company 120 9
  • Authorization Approval - Upon receipt of the authorization approval from the user financial institution 1 14, the transaction service company 120 sends an authorization approval for the goods/services to the vendor 1 16
  • the transaction service company 120 forwards the request for funds transferred to the user financial institution 114 13.
  • Transfer Funds After processing the request for funds transfer received from the transaction service company 120, there is a transfer of funds to the service company bank 122.
  • the bank 122 is affiliated with the transaction service company 120.
  • the service company bank 122 may accumulate the funds transferred over a period of time, or until a particular dollar amount is reached, or other predetermined conditions are met, before taking any further actions. Thus, the service company bank 122 may hold funds over a period of time
  • state diagram 110 can establish that the user financial institution 114 is a specific bank, financial institution or entity, such as American Express Blue Card, that has established an account with the user 112 specifically for the purchase of merchandise via the Internet
  • the timing of the funds transfers in steps 12, 13 and 14 above can be done in such a manner as to provide an accumulation of charges over a period of time such that less processing is required through these entities or a holding of funds over a predetermined time so that interest is accrued on these funds
  • a state diagram 140 is shown in a state diagram 140 in
  • This state diagram includes a user 142, user financial institution 144, vendor 146, vendor bank 148, and a transaction service company 150 The sequential steps shown in this state diagram are as follows
  • Purchase Confirmation Number Upon receipt of the order from the user 142 and the selection of the transaction service company 150 for payment, the vendor 146 sends a purchase confirmation number to the user 142 7 Purchase Confirmation Number and Request For Payment - The vendor 46 sends the purchase confirmation number for the particular order, together with a request for payment including the amount of the order and identification of the merchandise, to the transaction service company 150 As an optional procedure, the vendor can send this information via the user 142 as a digital signal file to the service company 150
  • Request Funds Transfer The transaction service company 150 then issues a request for funds transfer, either singly or through batch processing, to the user financial institution 144. Concurrently, the transaction service company reduces the amount of available funds for the user 142 by this amount.
  • Transfer Funds - Upon receipt of the request for funds transfer, the user financial institution 144 transfers the appropriate funds, either singly or in batch transfer mode, to the vendor bank 148 and into the account of the vendor 146
  • the authorization for approval can be done promptly by the transaction service company 150 without reference to any other party.
  • the transaction service company 150 can accumulate transactions, such as micropayment transactions, before a request for funds transfer (13) is made to the institution 144. This can eliminate the per item transaction processing charges, therefore making the widespread use of micro-purchasing financially viable. Further, the reduction in the number of transaction processing steps can reduce the overall fees incurred for the processing operation.
  • a further embodiment of the present invention is represented as state diagram 160 in Figure 7.
  • This state diagram includes a user 162, user financial institution 164, vendor A
  • a transaction service company 180 provides secure and rapid funds authorization and payment. Company 180 works in conjunction with a service company bank 182. The sequential steps performed for this process are as follows. 1. Initialize Account Debit/Credit Line - This is the establishment of a credit, debit or other account by the user with the user financial institution 164. One example is the establishment of a credit card and another example is the establishment of a debit account.
  • Select Item For Purchase - User 162 logs onto the vendor A 168 web site and selects one or more items of goods or services for purchase and further specifies that the method of payment shall be through the transaction service company 180, such as shown in Figure 9.
  • Purchase Confirmation Number After completion of the order by the user 162 and the designation of the transaction service company 180 for payment, the vendor A 168 transmit a purchase confirmation number corresponding to the order transaction made by the user 162 7 Purchase Confirmation Number and Request For Payment - Concurrently or shortly after step 6, the vendor A 168 transmits the purchase confirmation number together with a request for payment, including amount and type of merchandise, to the transaction service company 180.
  • this information can be sent in a secure manner to the service company 180 via the user 162 without a direct connection to the service company 8 Purchase Confirmation Number -
  • the user 162 logs onto the transaction service company 180, either independently or through a transfer from the vendor A 168 web site, and establishes a secure communication channel, as previously described, with the transaction service company 180. This is initiated , for example, as shown in Figure 10
  • the purchase confirmation number stored at the user's computer is then sent to the transaction service company 180.
  • the vendor A 168 delivers the goods/services to the user 162.
  • Request Funds Transfer After release of the goods/services, the vendor A 168 makes a request for funds transfer to pay for the transaction This is made to the transaction service company 180.
  • the transaction service company 180 can either make a single request for funds transfer to the user financial institution 164 or can accumulate a series of charges from multiple vendors to the account of user 162 and then make a funds request This can be done by reaching a dollar amount, such as $50 00 increments, or can be done on a periodic time basis, such as weekly or monthly
  • the transaction service company 180 and service company bank 182 are affiliated and operate in conjunction with each other
  • the bank 182 can accumulate funds for multiple transfers and make ultimate payments on a periodic basis or when a predetermined funds level is reached
  • the transaction service company 180 can accumulate funds requests likewise on an amount or time basis and make a request for funds transfer, as required by pre-established rules, to the service company bank 182
  • the service company bank 182 Upon reaching a predetermined period of time or amount, the service company bank 182 makes a transfer of funds to the appropriate bank and account, in this case to the account of vendor A 168 to the vendor A bank 174 For other vendors, transfers can be made to other corresponding accounts at the same bank or to accounts at other banks
  • a still further embodiment of the present invention is shown in Figure 8 as state diagram 190. This includes a user 192, vendor 194, vendor bank 196, transaction service company 198, and service company bank 200 The sequential steps in the state diagram are as follows
  • the vendor 194 Upon completion of the purchase transaction, the vendor 194 generates a purchase confirmation number for the transaction and sends it to the user 192
  • the vendor 194 After providing the purchase confirmation number to the user 192, the vendor 194 also sends the purchase confirmation number together with a request for payment, including an amount and identity of merchandise, to the transaction service company 198 As an alternative, this information can be sent via user 192 to the transaction service company 198, preferably by use of a digital signature 7 Purchase Confirmation Number -
  • the user 192 log onto the transaction service company 198, or he is automatically transferred to this site from the vendor's site 194, and enters the appropriate security codes for establishing a secure channel between the user 192 and the transaction service company 198
  • the user 192 then sends the purchase confirmation number for the particular transaction if the user 192 desires to complete that transaction and make the payment for it This process is shown in Figure 10
  • Request Funds Transfer The transaction service company can accumulate transactions charged to the account of the user 192 over a period of time, thus allowing for microtransactions, and then make a funds transfer request to the service company bank 200.
  • Transfer Funds Upon receipt of funds transfer request for individual users, the service company bank 200 can transfer funds either individually, or through batch processing, to the vendor account at the vendor bank 196. This transfer can be done when a fixed dollar amount is reached or can be done on a period time basis.
  • the process for payment shown in Figure 8 has the fraud reduction aspect of the invention as well as reduced fee transaction charges because the user establishes funds at an account affiliated with the transaction service company and the service company can immediately verify the availability of funds. Further, the interaction of the transaction service company 198 with the service company bank 200 permits the accumulation of transactions without incurring transaction fees until a single unit transaction, for example, a $50.00 charge, is reached.
  • the user 192 may be requested periodically to transfer funds (see step 2) in increments, such as $100.00, to maintain an ongoing fund for the purchase of goods and services.
  • the service company bank 200 can maintain this account and draw interest. The process of providing greater security through the reduction of fraud benefits both the user and the vendor, and can also make possible the use of micropayments for small charges by multiple vendors.
  • a purchase order screen 220 as used in conjunction with the present invention is illustrated in Figure 9. This is for a vendor 222 which is illustrated as "Vendor XYZ.”
  • the merchandise 224 is a Model 750 Computer system.
  • the price 226 is $600.00 with a shipping fee 228 of $40.00.
  • the total charge 230 is $640.00.
  • the user is requested to select a method of payment, which for example may be credit card 232 for VISA, credit card 234 for MasterCard, or a transaction service company 236 such as EncrypTix If the data is acceptable to the user, he then confirms the purchase with a selection 240, in this example by marking the box Yes, to transmit the page to the vendor XYZ
  • Figure 10 represents a screen 260 generated by a transaction service company web site for a previously registered user
  • the transaction service company 262 in this example is EncrypTix where the user has previously undergone a high level security verification for establishing an account.
  • the user After making a purchase, the user either logs onto the transaction service company 262 web site to get the page 260, or it is automatically transferred when the transaction service company is selected, such as shown in Figure 9
  • the screen 260 is displayed, the user enters the user name 264, a password 266, and then, for the specific transaction, enters a purchase confirmation number 268, which was previously received from a vendor. If this information is correct, and the user wishes to proceed with the payment of the transaction, he enters a selection in the confirm payment 270, in this example, marking a check in the box Yes, and the screen 260 is then transmitted to the transaction service company 262
  • the present invention comprises a process with a combination of entities that provides substantially reduced fraud for the payment of merchandise through a computer network, such as the Internet, and further provides processes and structure for funding payment of the transaction such that the fees can be reduced and the number of transaction steps can be reduced so that the overall cost, complexity and security of the process is substantially improved.

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Abstract

L'invention porte sur un procédé de paiement de transactions utilisant un réseau informatique et offrant une réduction substantielle des possibilités de fraude, des coûts de transaction et de la complexité. L'utilisateur (84) ouvre un compte dans une société de services de transaction (92) et soumet des preuves rigoureuses d'identité et d'existence de comptes financiers, tandis qu'un canal sûr de communication est établi entre l'utilisateur et la société de services de transaction. L'utilisateur ouvre par ailleurs un compte de débit, crédit ou autre dans une institution financière (86) et fournit des informations sur le compte à la société de services de transaction. Lorsque l'utilisateur achète des marchandises dans un site de vente (88), il indique la société de services de transaction comme procédé de paiement. Le vendeur transmet un numéro de confirmation d'achat à l'utilisateur qu'il envoie, ainsi que la quantité correspondant à l'achat, à la société de services de transaction. L'utilisateur communique alors par le canal sûr le numéro de confirmation d'achat à la société de services de transaction qui vérifie la disponibilité des fonds et autorise la transaction.
PCT/US2001/003767 2000-05-02 2001-02-05 Procede electronique de paiement sur reduisant les possibilites de fraude et les couts de transaction WO2001084454A1 (fr)

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AU2001241451A AU2001241451A1 (en) 2000-05-02 2001-02-05 Secure electronic payment method for fraud reduction and reduced transaction costs

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US56394500A 2000-05-02 2000-05-02
US09/563,945 2000-05-02

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Cited By (4)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
FR2837952A1 (fr) * 2002-03-29 2003-10-03 Michel Mestrallet Procede de paiement en ligne
EP1763786A2 (fr) * 2004-04-13 2007-03-21 eBay, Inc. Systeme pour paiements engage par des commerçants
CN107103463A (zh) * 2017-05-23 2017-08-29 微鲸科技有限公司 支付方法及装置
CN107924512A (zh) * 2015-07-01 2018-04-17 万事达卡国际股份有限公司 电子增量支付

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FR2837952A1 (fr) * 2002-03-29 2003-10-03 Michel Mestrallet Procede de paiement en ligne
EP1763786A2 (fr) * 2004-04-13 2007-03-21 eBay, Inc. Systeme pour paiements engage par des commerçants
EP1763786A4 (fr) * 2004-04-13 2009-04-15 Ebay Inc Systeme pour paiements engage par des commerçants
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US9317841B2 (en) 2004-04-13 2016-04-19 Paypal, Inc. Method and system for facilitating online payments based on an established payment agreement
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CN107924512A (zh) * 2015-07-01 2018-04-17 万事达卡国际股份有限公司 电子增量支付
CN107924512B (zh) * 2015-07-01 2022-05-24 万事达卡国际股份有限公司 电子增量支付
CN107103463A (zh) * 2017-05-23 2017-08-29 微鲸科技有限公司 支付方法及装置

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