US20090099857A1 - Method and system for verifying use of a financial instrument - Google Patents
Method and system for verifying use of a financial instrument Download PDFInfo
- Publication number
- US20090099857A1 US20090099857A1 US11/871,870 US87187007A US2009099857A1 US 20090099857 A1 US20090099857 A1 US 20090099857A1 US 87187007 A US87187007 A US 87187007A US 2009099857 A1 US2009099857 A1 US 2009099857A1
- Authority
- US
- United States
- Prior art keywords
- dispute
- amounts
- payment instrument
- registrant
- specified
- 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.)
- Granted
Links
Images
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
- G06Q20/08—Payment architectures
- G06Q20/10—Payment architectures specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking 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
- G06Q20/30—Payment architectures, schemes or protocols characterised by the use of specific devices or networks
- G06Q20/32—Payment architectures, schemes or protocols characterised by the use of specific devices or networks using wireless devices
- G06Q20/322—Aspects of commerce using mobile devices [M-devices]
- G06Q20/3223—Realising banking transactions through M-devices
-
- 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
- G06Q20/40—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
-
- 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
- G06Q20/40—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
- G06Q20/401—Transaction verification
- G06Q20/4014—Identity check for transactions
-
- 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
- G06Q20/42—Confirmation, e.g. check or permission by the legal debtor of payment
-
- 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
- G06Q30/00—Commerce
- G06Q30/018—Certifying business or products
-
- 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
- G06Q30/00—Commerce
- G06Q30/06—Buying, selling or leasing transactions
- G06Q30/0601—Electronic shopping [e-shopping]
- G06Q30/0609—Buyer or seller confidence or verification
-
- 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
- G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
- G06Q40/12—Accounting
Landscapes
- Business, Economics & Management (AREA)
- Accounting & Taxation (AREA)
- Engineering & Computer Science (AREA)
- Finance (AREA)
- Theoretical Computer Science (AREA)
- Physics & Mathematics (AREA)
- General Business, Economics & Management (AREA)
- General Physics & Mathematics (AREA)
- Strategic Management (AREA)
- Development Economics (AREA)
- Economics (AREA)
- Computer Security & Cryptography (AREA)
- Marketing (AREA)
- Computer Networks & Wireless Communication (AREA)
- Technology Law (AREA)
- Entrepreneurship & Innovation (AREA)
- Financial Or Insurance-Related Operations Such As Payment And Settlement (AREA)
Abstract
Description
- In the modern world, payment instruments are more and more taking the place of cash in commercial transactions. Additionally, an increasing percentage of commerce and commercial transactions is taking place at a distance, over untrusted networks such as the Internet.
- While the use of such payment instruments and such networks makes it increasingly convenient to engage in commerce at any place and time, these instruments are subject to theft and fraudulent use. A thief may, by obtaining physical access to a payment instrument such as a credit card or cancelled check, often obtain sufficient information so as to allow him or her to engage in fraudulent transactions. It is often possible for a thief to engage in such fraudulent transactions before the rightful owner of the payment instrument is even aware that the instrument has been compromised.
- One method known in the art to reduce these risks is to require the use of a secondary verification method, such as a password or “PIN” known only to the rightful instrument holder, with every transaction. This is inconvenient, however, as a particular instrument holder may have to remember multiple PINs for multiple payment instruments. It may also require payment systems to be redesigned.
- Another method known in the art is for the desired target of a payment instrument transaction to initiate a verifying transaction using the instrument, for example, a de minimis deposit or debit of unpredictable amount. Only by contacting the financial or other institution associated with the payment instrument and authenticating one's identity can one learn the nature and amount of the “test” transaction. The user of the payment instrument submits this information back to the desired target of the payment instrument transaction, who then can be certain that other party is authorized to use the payment instrument. One problem with this method is that an actual transfer of value may take place, or multiple transactions may be required. This method may require financial institutions to perform systems integration, process changes, and retraining of customer service staff. Another problem is that, in theory, the amount of the transaction or transactions could be guessed or otherwise predicted.
- It would be desirable to have methods and systems for verifying a party's authority to use a payment instrument or financial account.
- The present disclosure is directed to solving or overcoming one or more of the problems described above in the context of remote transactions, though much of the distinct functionality of the described methods and systems also has unique value in face-to-face transactions.
- Before the present methods are described, it is to be understood that this invention is not limited to the particular methodologies or protocols described, as these may vary. It is also to be understood that the terminology used herein is for the purpose of describing particular embodiments only, and is not intended to limit the scope of the present disclosure, which will be limited only by the appended claims.
- It must be noted that as used herein and in the appended claims, the singular forms “a,” “an,” and “the” include plural reference unless the context clearly dictates otherwise. Thus, for example, reference to a “transaction” is a reference to one or more transactions and equivalents thereof known to those skilled in the art, and so forth. Unless defined otherwise, all technical and scientific terms used herein have the same meanings as commonly understood by one of ordinary skill in the art. Although any methods and materials similar or equivalent to those described herein can be used in the practice or testing of the present invention, the preferred methods, devices, and materials are now described. All publications mentioned herein are incorporated herein by reference. Nothing herein is to be construed as an admission that the invention is not entitled to antedate such disclosure by virtue of prior invention.
- In an embodiment, a registering party which verifies the authority of a registrant party to use a particular payment instrument or financial account may debit or credit the instrument or account. The claimed instrument holder then may dispute the transaction with the relevant financial institution, which may notify the registering party that the registrant is authorized to use the instrument.
- Aspects, features, benefits and advantages of the present invention will be apparent with regard to the following description and accompanying drawing, of which:
-
FIG. 1 depicts a dataflow diagram for exemplary participants in a verification transaction according to an embodiment. - A payment instrument is a financial instrument or account which can be used for financial transactions. For example, and without limitation, a payment instrument may be a credit card, a bank account, or an electronic check.
- A registrant is a party claiming to have authority to engage in financial transactions using a payment instrument. For example, and without limitation, a registrant may be a customer.
- A registering service is a party to whom the registrant represents that the registrant has authority to use the payment instrument. The registering service is interested in verifying that the registrant has authority to use the payment instrument. For example, and without limitation, a registering service may be a payment service provider.
- A financial institution is the issuer or verifying authority associated with a particular payment instrument. For example, and without limitation, a financial institution may be a bank.
-
FIG. 1 depicts a dataflow diagram for exemplary participants in a transaction according to an embodiment. As shown inFIG. 1 , the verification system may include aregistrant 100, aregistration service 110, and afinancial institution 120. The registrant desires to use a particular payment instrument in transactions with the registering service. In order to facilitate such future transactions, the registrant may submit to the registering service information relating to the desired payment instrument. This information may be, for example and without limitation, an account number, credit card number, or the like. This information may be transmitted, for example and without limitation, in person, over a network such as the Internet, or via telephone, cellular phone, or other device or network. - Upon receiving the account information, the registering service may proceed to debit or credit the payment instrument by performing one or more transactions. These transactions may be performed, for example, over a payment network or using other appropriate means.
- The registrant may then be instructed to contact his or her financial institution to dispute the one or more transactions. The disputed amount may be either the full amount, or the registering service may request that the registrant dispute a specified fraction of the transaction. The registrant may contact the financial institution using a website, phone, in person, or by any other means permitted by the particular financial institution. The financial institution may perform authentication of the registrant prior to processing the transaction dispute, using whatever methods it normally uses for processing transaction disputes.
- In processing the dispute, the financial institution may reverse or partially reverse the one or more transactions, according to the disputed amount. The registering service may be notified of this reversal, or of the request for reversal, by the financial institution or by the payment network. If the registering service receives notification that the one or more transactions have been fully or partially reversed, or that a request has been made to fully or partially reverse the transaction by the appropriate amount, the registering service may permit the user to use the payment instrument.
- It will be appreciated that various of the above-disclosed and other features and functions, or alternatives thereof, may be desirably combined into many other different systems or applications. It will also be appreciated that various presently unforeseen or unanticipated alternatives, modifications, variations or improvements therein may be subsequently made by those skilled in the art which are also intended to be encompassed by the disclosed embodiments.
Claims (18)
Priority Applications (2)
Application Number | Priority Date | Filing Date | Title |
---|---|---|---|
US11/871,870 US7519557B1 (en) | 2007-10-12 | 2007-10-12 | Method and system for verifying use of a financial instrument |
US12/249,315 US7827107B2 (en) | 2007-10-12 | 2008-10-10 | Method and system for verifying use of a financial instrument |
Applications Claiming Priority (1)
Application Number | Priority Date | Filing Date | Title |
---|---|---|---|
US11/871,870 US7519557B1 (en) | 2007-10-12 | 2007-10-12 | Method and system for verifying use of a financial instrument |
Related Child Applications (1)
Application Number | Title | Priority Date | Filing Date |
---|---|---|---|
US12/249,315 Continuation-In-Part US7827107B2 (en) | 2007-10-12 | 2008-10-10 | Method and system for verifying use of a financial instrument |
Publications (2)
Publication Number | Publication Date |
---|---|
US7519557B1 US7519557B1 (en) | 2009-04-14 |
US20090099857A1 true US20090099857A1 (en) | 2009-04-16 |
Family
ID=40525206
Family Applications (1)
Application Number | Title | Priority Date | Filing Date |
---|---|---|---|
US11/871,870 Expired - Fee Related US7519557B1 (en) | 2007-10-12 | 2007-10-12 | Method and system for verifying use of a financial instrument |
Country Status (1)
Country | Link |
---|---|
US (1) | US7519557B1 (en) |
Families Citing this family (3)
Publication number | Priority date | Publication date | Assignee | Title |
---|---|---|---|---|
US8167200B2 (en) * | 2009-07-09 | 2012-05-01 | Kenichi Uchikura | Authorization verification system |
CN102999810B (en) * | 2012-11-12 | 2016-01-13 | 中国建设银行股份有限公司 | A kind of bank application system management platform and authority control method |
US9875468B2 (en) | 2014-11-26 | 2018-01-23 | Buy It Mobility Networks Inc. | Intelligent authentication process |
Citations (2)
Publication number | Priority date | Publication date | Assignee | Title |
---|---|---|---|---|
US20010051917A1 (en) * | 1998-08-26 | 2001-12-13 | American Management Systems, Inc. | System integrating credit card transactions into a financial management system |
US20070051795A1 (en) * | 2005-09-07 | 2007-03-08 | Ty Shipman | Method and apparatus for verifying the legitamacy of a financial instrument |
Family Cites Families (1)
Publication number | Priority date | Publication date | Assignee | Title |
---|---|---|---|---|
US7430537B2 (en) | 2000-07-10 | 2008-09-30 | Paypal, Inc. | System and method for verifying a financial instrument |
-
2007
- 2007-10-12 US US11/871,870 patent/US7519557B1/en not_active Expired - Fee Related
Patent Citations (2)
Publication number | Priority date | Publication date | Assignee | Title |
---|---|---|---|---|
US20010051917A1 (en) * | 1998-08-26 | 2001-12-13 | American Management Systems, Inc. | System integrating credit card transactions into a financial management system |
US20070051795A1 (en) * | 2005-09-07 | 2007-03-08 | Ty Shipman | Method and apparatus for verifying the legitamacy of a financial instrument |
Also Published As
Publication number | Publication date |
---|---|
US7519557B1 (en) | 2009-04-14 |
Similar Documents
Publication | Publication Date | Title |
---|---|---|
US9569775B2 (en) | Methods and systems for performing authentication in consumer transactions | |
US10402824B2 (en) | Systems and methods for verifying identities in transactions | |
US8484709B2 (en) | Multi-mode credential authentication | |
US8825548B2 (en) | Secure authentication between multiple parties | |
US20060173776A1 (en) | A Method of Authentication | |
JP4397827B2 (en) | Authentication system for portable terminal device having electronic money function | |
US20120191615A1 (en) | Secure Credit Transactions | |
US20060131390A1 (en) | Method and system for providing transaction notification and mobile reply authorization | |
US20070291995A1 (en) | System, Method, and Apparatus for Preventing Identity Fraud Associated With Payment and Identity Cards | |
US20120144461A1 (en) | Mobile pin pad | |
US8572398B1 (en) | Systems and methods for identifying biometric information as trusted and authenticating persons using trusted biometric information | |
US11348093B2 (en) | System and method for merchant and personal transactions using mobile identification credential | |
US7389269B1 (en) | System and method for activating financial cards via biometric recognition | |
WO2010140876A1 (en) | Method, system and secure server for multi-factor transaction authentication | |
WO2010141573A2 (en) | System and method for providing authentication for card not present transactions using mobile device | |
US11392949B2 (en) | Use of mobile identification credential in know your customer assessment | |
US20140279522A1 (en) | Means of authenticating a consumer using demand deposit account data | |
WO2018217950A2 (en) | Biometric secure transaction system | |
US20210359856A1 (en) | Cloud token provisioning of multiple tokens | |
US7519557B1 (en) | Method and system for verifying use of a financial instrument | |
US20220318803A1 (en) | Identity authentication systems and methods | |
JP5164544B2 (en) | Account management apparatus and account management method | |
KR20170141930A (en) | System for providing financial service and method for transfer thereof | |
JP2002229956A (en) | Biometrics certification system, biometrics certification autority, service provision server, biometrics certification method and program, and service provision method and program | |
US7827107B2 (en) | Method and system for verifying use of a financial instrument |
Legal Events
Date | Code | Title | Description |
---|---|---|---|
AS | Assignment |
Owner name: VISA INTERNATIONAL SERVICE ASSOCIATION, CALIFORNIA Free format text: ASSIGNMENT OF ASSIGNORS INTEREST;ASSIGNOR:LEE, TIMOTHY M.;REEL/FRAME:019958/0034 Effective date: 20071005 |
|
STCF | Information on status: patent grant |
Free format text: PATENTED CASE |
|
FPAY | Fee payment |
Year of fee payment: 4 |
|
FPAY | Fee payment |
Year of fee payment: 8 |
|
FEPP | Fee payment procedure |
Free format text: MAINTENANCE FEE REMINDER MAILED (ORIGINAL EVENT CODE: REM.); ENTITY STATUS OF PATENT OWNER: LARGE ENTITY |
|
LAPS | Lapse for failure to pay maintenance fees |
Free format text: PATENT EXPIRED FOR FAILURE TO PAY MAINTENANCE FEES (ORIGINAL EVENT CODE: EXP.); ENTITY STATUS OF PATENT OWNER: LARGE ENTITY |
|
STCH | Information on status: patent discontinuation |
Free format text: PATENT EXPIRED DUE TO NONPAYMENT OF MAINTENANCE FEES UNDER 37 CFR 1.362 |
|
FP | Lapsed due to failure to pay maintenance fee |
Effective date: 20210414 |