CA2167543A1 - Process for conducting secure electronic transactions over electronic media - Google Patents

Process for conducting secure electronic transactions over electronic media

Info

Publication number
CA2167543A1
CA2167543A1 CA002167543A CA2167543A CA2167543A1 CA 2167543 A1 CA2167543 A1 CA 2167543A1 CA 002167543 A CA002167543 A CA 002167543A CA 2167543 A CA2167543 A CA 2167543A CA 2167543 A1 CA2167543 A1 CA 2167543A1
Authority
CA
Canada
Prior art keywords
credit
long distance
debit card
electronic media
encrypted
Prior art date
Legal status (The legal status 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 status listed.)
Abandoned
Application number
CA002167543A
Other languages
French (fr)
Inventor
James Durward
Current Assignee (The listed assignees may be inaccurate. Google has not performed a legal analysis and makes no representation or warranty as to the accuracy of the list.)
Individual
Original Assignee
Individual
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 Individual filed Critical Individual
Priority to CA002167543A priority Critical patent/CA2167543A1/en
Publication of CA2167543A1 publication Critical patent/CA2167543A1/en
Abandoned legal-status Critical Current

Links

Classifications

    • HELECTRICITY
    • H04ELECTRIC COMMUNICATION TECHNIQUE
    • H04KSECRET COMMUNICATION; JAMMING OF COMMUNICATION
    • H04K1/00Secret communication
    • GPHYSICS
    • G06COMPUTING; CALCULATING OR COUNTING
    • G06QINFORMATION 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
    • G06Q20/00Payment architectures, schemes or protocols
    • G06Q20/04Payment circuits
    • GPHYSICS
    • G06COMPUTING; CALCULATING OR COUNTING
    • G06QINFORMATION 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
    • G06Q20/00Payment architectures, schemes or protocols
    • G06Q20/08Payment architectures
    • G06Q20/10Payment architectures specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
    • GPHYSICS
    • G06COMPUTING; CALCULATING OR COUNTING
    • G06QINFORMATION 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
    • G06Q20/00Payment architectures, schemes or protocols
    • G06Q20/08Payment architectures
    • G06Q20/12Payment architectures specially adapted for electronic shopping systems
    • GPHYSICS
    • G06COMPUTING; CALCULATING OR COUNTING
    • G06QINFORMATION 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
    • G06Q20/00Payment architectures, schemes or protocols
    • G06Q20/22Payment schemes or models
    • G06Q20/24Credit schemes, i.e. "pay after"
    • GPHYSICS
    • G06COMPUTING; CALCULATING OR COUNTING
    • G06QINFORMATION 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
    • G06Q30/00Commerce
    • G06Q30/02Marketing; Price estimation or determination; Fundraising
    • GPHYSICS
    • G06COMPUTING; CALCULATING OR COUNTING
    • G06QINFORMATION 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
    • G06Q30/00Commerce
    • G06Q30/06Buying, selling or leasing transactions

Landscapes

  • Business, Economics & Management (AREA)
  • Accounting & Taxation (AREA)
  • Engineering & Computer Science (AREA)
  • Strategic Management (AREA)
  • Finance (AREA)
  • General Physics & Mathematics (AREA)
  • Physics & Mathematics (AREA)
  • General Business, Economics & Management (AREA)
  • Theoretical Computer Science (AREA)
  • Development Economics (AREA)
  • Economics (AREA)
  • Marketing (AREA)
  • Entrepreneurship & Innovation (AREA)
  • Game Theory and Decision Science (AREA)
  • Computer Networks & Wireless Communication (AREA)
  • Signal Processing (AREA)
  • Financial Or Insurance-Related Operations Such As Payment And Settlement (AREA)

Abstract

The invention is a process for causing credits or debits to accumulate to a credit or debit card, over any long distance electronic medium, where the holder of the credit or debit card is not required to transmit the actual credit or debit card number, either in an encrypted or non-encrypted form, over the said long distance medium. In the foregoing and hereinafter, "long distance electronic medium" and "long distance electronic media"
are defined as any electronic connection that uses either a non-dedicated communications channel or is greater than 50 miles in length, such as, but not limited to, the Internet.

Description

Specification ~ S S~
This invention relates to an electronic payment process for making secure debit or credit transactions over various long distance electronic media such as, but not limited to, the Internet. The Internet is a rapidly-expanding world-wide computer network with over 20 million users which is expected to become a substantial purchasing forum over the coming years. In particular, a section of the Internet known as the World Wide Web ("WWW") is experiencing tremendous growth rates due to its graphical user interface and ease of use. Already there are significant numbers of users cont1~1cting business transactions and purchases on-line. Despite the tremendous commercial potential of the Internet, studies have clearly shown that users are very dissatisfied by a lack of security in their transactions due to the nature of the underlying networking technology employed by the Internet. This lack of security is by far the main concern of users wishing to conduct business on the Internet.
The primary security concern is that a credit and/or debit card number and Personal Identification Number ("PLN's") could be intercepted by any number of unauthorized persons on the erratic journey which the credit or debit card number makes on its way from the user to its destination. This security issue is a major fundamental obstacle in the drive to commercialize the Internet. There is currently a significant amoullt of energy being devoted to various encryption methods in order to secure the transfer of confidential data over the Internet and other electronic media. The idea behind encryption is that a users credit card or debit card number is turned into a code using a mathematical formula that acts like a lock. The user has a unique key to the lock so the credit or debit card number can be sent over the Internet and unlocked at the destination. Keys vary in complexity but so far, all keys except for top-secret military keys not available for use outside the USA, have proved vulnerable to unauthorized decoding. My invention uses a different and unique approach to transfer the value of the credit or debit card payment without the requirement of transferring the credit or debit card numbers themselves.

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2167~3 Previous methods for attempting to provide secure debits or credits over long distance electronic media are divided into two categories:
1. conventional transaction methods; and 2. new style transaction methods.
Conventional transaction methods include:
a) direct payment by credit or debit card over the Internet. This requires the user to transmit his actual credit or debit card number over the Internet;
b) selecting an item from a World Wide Web ("WWW") Page and then sending a cheque or money order for payment using physical delivery of the payment instrument; and c) selecting an item from the WWW, then going off-line to telephone the order in, again transmitting the actual credit or debit card number over electronic media.
In case "a", research has shown that users do not want to transmit their credit card information over the Internet and this creates a significant barrier to commerce. In cases "b" and "c", the user is subjected to significant inconvenience due to the fact that the ordering process is interrupted when the user goes off-line. This is also a significant barrier to on-line commerce, particularly with regard to impulse purchases.
New Style transaction methods include:
a) Digicash b) NetChex c) Ecash All of these systems have the disadvantage of either forcing the customer to open a special bank account at a distant, likely unknown, bank, or completing a complicated pre-registry process. In all cases the user is substantially inconvenienced. Currently, there is no dominant payment system for Internet commerce as the entire industry is in its formative stages.

The Inventive Idea I have found that these disadvantages may be overcome by establishing a manual or automated process wherein a third participant, and in some cases a fourth participant, other than the credit or debit card holder or the vendor, is introduced into the transaction loop. The transaction loop is defined as where a credit or debit card holder is purchasing something from a vendor, and that the third, and in some cases the fourth, participant's role is to collect up and transact debits or credits, as the case may be, on the credit or debit card holders debit or credit card, or the numbers thereon, that are held by the third participant, or in some cases the fourth participant, as a matter of business course. The introduction of a third, and in some cases a fourth, participant into the transaction loop allows the entire transaction to occur by l1tili7.ing the billing system that is currently resident, or can be established, with the third, or in some cases the fourth, participant without having to transmit, over long distance electronic media, the customers credit or debit card numbers. Since the actual credit or debit card numbers are never transferred over long distance electronic media, they cannot be accessed by unauthorized persons and the transaction is held secure to the threat of unauthorized usage due to breaches of security of the electronic media itself. The underlying basis of the invention is the understanding that in order for an entity to conduct transactions through, on, or over a long distance electronic medium, that entity must itself be operating through, on, or over that long distance electronic media and if the entity is operating through, on, or over the long distance electronic media, it is likely that a billing procedure has been previously established at the point of the entities entry onto the long distance electronic media in order to charge the entity for access to the long distance electronic media.

Description of the Invention Definitions:
1. The "Client" is a process that communicates information to the SERVER.
2. The "SERVER" is a process that automates the overall function of the invention.
3. "AP" means any entity, individual or corporate, which is the entry point to the long distance electronic media.
4. "long distance electronic media" means any electronic connection that uses either a non-dedicated communications channel or is greater than 50 miles in length.

The following is an explanation of the overall inventive process:
1. Customer notifies merchant of purchase request;
2. Merchant notifies customer of accepted request;
3. Merchant notifies the SERVER of the order, by Client, including, but not limited to, the following data:
a) Merchant #;
b) Customer Email address;
c) Invoice amount;
d) Merchant Invoice #;
e) last four digits of client credit card #;
4. The SERVER loads the request into its database;
5. The SERVER sends a Client message to the customer notifying him of an imminent charge to his credit card:
a) if the customer notifies the SERVER, by Client, that the order is fraudulent, or he wants to cancel the order, the SERVER informs the merchant Client to strike the order from the merchant books and the SERVER also deletes the order from its database; or b) if the customer does not notify the SERVER of a false order within 24 hours, then;
6. The SERVER sends the order to the AP, by Client, so the order can be billed to the customers charge card.
The following data is sent to the AP:
a) User Email Address;
b) Billing amount; and c) last 4 digits of the charge card # (not the whole number, just the last four digits) 7. When the AP receives the billing data via the Client, he matches the last four numbers of the customers credit card numbers with those on file;
a) if there is no match, or if the credit or debit request is rejected, the AP notifies the SERVER by Client, and the SERVER notifies the Merchant, by Client, and sends a message to the customer, by Client, notifying him of the problem; or b) if there is a match, the AP bills the customer credit card for the specified amount;
8. Within a specified time period, the AP sends, by a common delivery method, billed and paid proceeds to the SERVER bank account;
9. The AP notifies, by Client, the SERVER as to which customers bills have been paid;
10. Upon receipt of funds of the paid customer bills to its bank account, the SERVER
issues distribution instructions to its bank or other institution, using a Client, instructing distribution of the funds to the appropriate merchants;
11. The Charge or Debit card company bills the customer through traditional channels;
12. The merchant ships the merchandise.
The aforementioned steps comprise a process of allowing transactions to occur over long distance electronic media without transferring actual encrypted or non-encrypted credit or debit card numbers over the long distance electronic media. This improvement over the current methods of conducting transactions over long distance electronic media is my invention.

Claims (5)

1. A process, which may be, but is not necessarily, in the form of a computer program, for allowing secure long distance electronic media credit or debit card transactions, where "long distance electronic media" is defined as any electronic connection that uses either a non-dedicated communications channel or is greater than 50 miles in length.
2. A process as defined in Claim 1, wherein a purchasers credit or debit card information is deposited with a third, and in some cases a fourth, participant.
3. A process as defined in Claim 1 where charges or credits, as the case may be, are entered into a purchasers charge or debit account without requiring the transmittal of that purchasers encrypted or non-encrypted actual credit or debit card numbers over long distance electronic media.
4. A process as claimed in Claim 2 where the third, and fourth if applicable, participants are neither the purchaser nor the seller in a purchase-sale transaction involving a purchaser and a seller.
5. A process as claimed in Claim 2 where the purchasers actual credit or debit card numbers, encrypted or non-encrypted, are not sent over any long distance electronic media, as defined in Claim 1, in order to be deposited with the third, and in some cases the fourth, participant.
CA002167543A 1996-01-18 1996-01-18 Process for conducting secure electronic transactions over electronic media Abandoned CA2167543A1 (en)

Priority Applications (1)

Application Number Priority Date Filing Date Title
CA002167543A CA2167543A1 (en) 1996-01-18 1996-01-18 Process for conducting secure electronic transactions over electronic media

Applications Claiming Priority (1)

Application Number Priority Date Filing Date Title
CA002167543A CA2167543A1 (en) 1996-01-18 1996-01-18 Process for conducting secure electronic transactions over electronic media

Publications (1)

Publication Number Publication Date
CA2167543A1 true CA2167543A1 (en) 1997-07-19

Family

ID=4157379

Family Applications (1)

Application Number Title Priority Date Filing Date
CA002167543A Abandoned CA2167543A1 (en) 1996-01-18 1996-01-18 Process for conducting secure electronic transactions over electronic media

Country Status (1)

Country Link
CA (1) CA2167543A1 (en)

Cited By (10)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
EP1027661A1 (en) * 1998-09-04 2000-08-16 Impower, Inc. Electronic commerce with anonymous shopping and anonymous vendor shipping
WO2001090861A2 (en) * 2000-05-25 2001-11-29 Echarge Corporation Secure transaction protocol
US6467684B2 (en) 1999-03-02 2002-10-22 Netvisions, Inc. Pre-paid card system for purchasing products or services
WO2003036525A1 (en) * 2001-10-23 2003-05-01 Finestyle Holdings Pty Ltd Method and system for effecting payment for goods and/or services
US7840486B2 (en) 1999-01-15 2010-11-23 D Agostino John System and method for performing secure credit card purchases
US9864989B2 (en) 1999-06-18 2018-01-09 Cria Inc. Method and apparatus for ordering goods, services, and content over an internetwork using a virtual payment account
US11093623B2 (en) 2011-12-09 2021-08-17 Sertainty Corporation System and methods for using cipher objects to protect data
US11386409B2 (en) 2016-03-04 2022-07-12 Sertintyone Corporation Systems and methods for media codecs and containers
US11423400B1 (en) 1999-06-18 2022-08-23 Stripe, Inc. Method and apparatus for ordering goods, services and content over an internetwork using a virtual payment account
US12072989B2 (en) 2011-12-09 2024-08-27 Sertainty Corporation System and methods for using cipher objects to protect data

Cited By (16)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
EP1027661A1 (en) * 1998-09-04 2000-08-16 Impower, Inc. Electronic commerce with anonymous shopping and anonymous vendor shipping
EP1027661A4 (en) * 1998-09-04 2003-05-14 Impower Inc Electronic commerce with anonymous shopping and anonymous vendor shipping
US7840486B2 (en) 1999-01-15 2010-11-23 D Agostino John System and method for performing secure credit card purchases
US8036988B2 (en) 1999-01-15 2011-10-11 D Agostino John System and method for performing secure credit card transactions
US6467684B2 (en) 1999-03-02 2002-10-22 Netvisions, Inc. Pre-paid card system for purchasing products or services
US11423400B1 (en) 1999-06-18 2022-08-23 Stripe, Inc. Method and apparatus for ordering goods, services and content over an internetwork using a virtual payment account
US9864989B2 (en) 1999-06-18 2018-01-09 Cria Inc. Method and apparatus for ordering goods, services, and content over an internetwork using a virtual payment account
US9864990B2 (en) 1999-06-18 2018-01-09 Cria Inc. Method and apparatus for ordering goods, services and content over an internetwork using a virtual payment account
US9928509B2 (en) 1999-06-18 2018-03-27 Cria Inc. Method and apparatus for ordering goods, services and content over an internetwork using a virtual payment account
US11551211B1 (en) 1999-06-18 2023-01-10 Stripe, Inc. Method and apparatus for ordering goods, services and content over an internetwork using a virtual payment account
WO2001090861A2 (en) * 2000-05-25 2001-11-29 Echarge Corporation Secure transaction protocol
WO2001090861A3 (en) * 2000-05-25 2002-06-13 Echarge Corp Secure transaction protocol
WO2003036525A1 (en) * 2001-10-23 2003-05-01 Finestyle Holdings Pty Ltd Method and system for effecting payment for goods and/or services
US11093623B2 (en) 2011-12-09 2021-08-17 Sertainty Corporation System and methods for using cipher objects to protect data
US12072989B2 (en) 2011-12-09 2024-08-27 Sertainty Corporation System and methods for using cipher objects to protect data
US11386409B2 (en) 2016-03-04 2022-07-12 Sertintyone Corporation Systems and methods for media codecs and containers

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Legal Events

Date Code Title Description
FZDE Discontinued