WO2000067178A2 - Anonymous on-line payment system and method - Google Patents

Abstract

An anonymous method for purchasing goods or services on the Internet wherein a consumer opens an on-line debit account at a physical retail location. The on-line debit account is used to purchase goods or services from on-line vendors anonymously. The account, which is maintained on an on-line broker computer, is represented by an account number printed on a paper or plastic card that the consumer purchases at the store for the amount displayed on the card. The method is anonymous because no financial data, personal data, user preferences, or user setup is associated with the account number.

Description

ANONYMOUS ON-LINE PAYMENT SYSTEM AND METHOD RELATED APPLICATIONS

Provisional U.S. Patent Application No. 60/132,385, entitled "ANONYMOUS ON-LINE PAYMENT SYSTEM AND METHOD," filed May 4, 1999, is relied upon and is incorporated by reference in its entirety in this application.

FIELD OF THE INVENTION

This invention relates generally to data processing systems and, more particularly, to a financial transaction system.

BACKGROUND OF THE INVENTION

Shopping on the World Wide Web (Web) is an activity that brought on-line retailers approximately $7.8 Billion of revenue in 1998. The amount and type of products and services on the web is staggering. You can buy books, purchase songs, or refinance your car payments. The percentage of the market for goods and services that can be purchased for under $ 100 is 34% according to a survey by Ernst and Young. This segment of e-commerce is very interesting because of the growth of offering in this price range. Despite the growth of e-commerce there is a large segment of the world that is "on-line" but has never purchased anything. The number one reason for not taking this next step is fear of sending credit card data over the Internet.

Electronic spending over the Internet is a rapidly growing industry fueled by the consumers attraction to its speed, convenience, entertainment value, low prices, and selection. The industry, however, has not grown as fast as expected because the existing on-line spending options do not offer solutions to a large group of potential and existing on-line spenders needs. Examples of known on-line spending business models are described below. CyberCash

CyberCash (www.cvbercash.com) makes software for secure financial exchanges via the Internet. CyberCash acts as a gatekeeper linking the Internet to bank networks using security based on encryption. The user sends CyberCash their credit-card number or bank account information, and CyberCash gives them an "electronic wallet" that records their transactions over the Internet, encrypts the payment, and sends it to the vendor. In the "Instabug" model, the consumer establishes a pre-paid Instabug account. Buyers hit the "pay" button on the instabug web page to transfer the funds from their accounts to the vendor's CyberCoin cash register. DigiCash

DigiCash's (www.digicash.com) electronic cash, called eCash, is paperless money that can be transferred on the Internet. A user may withdraw eCash electronically from a bank that also subscribes to the system. The "digital dollars" are stored on the user's hard drive and then can be used in a transaction with an on-line vendor who accepts eCash. E-cash

E-cash is used in conjunction with the Mark Twain Bank to allow "authentication" of digital cash withdrawals from bank accounts. A software program enables storing the withdrawn digital cash on the PC's hard disk. This stored "cash" can then be transferred to a seller's machine. In this scheme, participants must set up a World Currency Access account provided by the Mark Twain Bank. First Virtual Holdings

To use the First Virtual Holdings system the customer opens an account and is given an Identification (ID) number which is sent to the vendor via e-mail. The vendor forwards the e-mail to First Virtual to verify the customer's ID number. First Virtual then sends an e-mail message to the customer to verify the transaction. First Virtual performs the actual transfers over a private off-line network using Electronic Data Systems (EDS). NetBill

NetBill is an alliance between Carnegie Mellon University and Visa designed to allow information to be bought and sold over the Internet. Customers deposit money into a NetBill account which is drawn upon by NetBill when purchases are made. Millicent

Millicent, offered by the Digital Equipment Corporation, is electronic "scrip" in the form of a signed message carrying a serial number and an expiration date. An authorized broker will buy Millicent scrip from one or more vendors at a volume discount and then sell it to customers, who will receive and then spend it using their modems. eCHARGE

A user chooses a product at a web page where eCHARGE is available, free eCHARGE software automatically downloads and connects the customer's computer to a 1-900 number. Charges for the product later appear on the monthly local telephone bill. iBill

Similar to eCHARGE, customers can bill one-time charges with iBill's Web900 service for access and services directly to their phone bill. The Web900 instruction page at the vendors web site tells customers how to dial an appropriate iBill 900 telephone number to pay for their purchase. When the customer dials the 900 number, iBill's automated voice system reads out a series of numbers. The customer then returns to the vendors site and enters these numbers in order to redeem their purchase. Smart Cards/Stored Value Cards

Many prior art schemes involve the use of smart cards and stored value cards at a user's computer via a personal swipe or chip reading hardware that would read the value of the stored currency on the cards embedded computer chip, and transfer purchasing information on-line to an accepting vendor. The same system can be applied to credit cards and bank issued debit cards. Other electronic spending systems also exist and are variations of the above.

The systems described above have received a lower than anticipated acceptance level among consumers for the following reasons:

Prior art schemes like DigiCash, Cybercash, E-cash, First Virtual Holdings, NetBill, and Millicent require two or more of the following items: (1) A bank account; (2) A credit card; (3) A customer has to set up an account with the service provider via their existing bank account or credit card which often involves a setup fee; and (4) Software download onto the users computer hard drive.

The disadvantages of the above requirements are numerous to the consumer. 25% of US households do not have bank accounts. This demographic group is therefore completely unable to use aspects of the above described systems in order to spend on-line. They represent a large segment of the population that would benefit greatly if given the chance to access low priced vendors on line due to the fact that typically they have lower incomes.

The same can be said of the above system's requirement for a credit card in order to spend on-line. According to the most recent "Statistical Abstract of the United States," 44% of families do not use credit cards. Children or teenagers do not use them as well. They too represent a substantial demographic group that the above described systems do not cater to or offer limited services to.

The above system's requirements for users to set up an account which often involves paying a fee and downloading software has offered an enormous obstacle to widespread acceptance. User's apprehension to paying a set up fee for a possible one time on-line purchase and the possibility of their computer hard drive crashing and thus losing their account information and or downloaded e-cash have proven to be disastrous to the above schemes. DigiCash's demise, CyberCash's cancellation of their CyberCoin model, and Millicents on-line scarcity, all can be attributed to these complicated requirements for use. eCHARGE and ibill systems have disadvantages similar in that they bill a users purchase to their local phone bill. These systems are not readily useable by those that do not have telephones and or access the Internet from alternative points of access such as libraries, friends houses, youth centers, and churches. Since they are accessing the Internet from a phone line that is not their own, charging their purchases to that line is impossible or impractical.

The above described systems involving smart cards and stored value cards will often be attached to existing financial institutions such as banks, and credit card companies. They ignore the demographic group not involved with these institutions. They will also require smart-card readers, which are not presently standard hardware on PCs. Smart cards and chip based stored value cards are not yet in widespread use.

Potential on-line consumers may not use the above described system because: have Internet access. Spending on-line using the above described systems is limited to those few who have a personal Internet access account.

2. According to a recent Ernst and Young survey, 97% of the on-line households that did not purchase products or services on-line last year did not do so because they were "uncomfortable sending credit card data on-line." It can be assumed that the same can be said about the sending of any personal financial or billing information over the Internet. All the current prior art on-line spending schemes are related to or require some form of existing personal financial or billing information in order to use their services. Even those who qualify for the use of these services are wary of fraud, theft, or collection of personal information.

3. Many of the above described systems are based on or claim anonymity. They achieve their version of anonymity by obscuring or hiding the on-line spender's true identity from the vendor. However in order to use the service, the user must give the service provider their personal financial information thus revealing their identity in the first stages of the transaction. Therefore, the above described systems are truly not anonymous and are apt to keep consumers who seek to avoid the collection and possible sale of their personal information from spending on-line and using their services.

4. The above described systems do not present their on-line spending services in physical form at a trusted off-line environment such as retail stores, vending machines, check cashing locations, grocery stores, gas stations, etc. These systems are presented on-line assuming that their users are Internet and electronically savvy enough to trust and use payment schemes for which they do not directly pay for in the off-line world. More specifically, customers who use these systems witness billing in an electronic form and are thus removed from the traditional trusted "cash out of hand" transaction that is simpler to follow, and more prevalent in the present day culture.

SUMMARY OF THE INVENTION Methods, systems, and articles of manufacture consistent with the present invention overcome the shortcomings of existing financial transactional systems by providing consumers the ability to spend on-line easily, safely, anonymously, in small or large increments with no personal attachment to Internet service providers, billing, credit card, or banking institutions. That is, the present invention creates an opportunity for consumers to purchase goods or services over the Internet anonymously. With this invention there is no means of tracing commerce transactions to a name or address without that name or address being expressly entered on the transaction by the consumer.

Another object of this invention is to bring to consumers the ability to effect a transaction on the Internet without the need for special software (other than a standard web browser), special hardware, credit cards, bank accounts, home telephone, email address, personal bills (such as a telephone or ISP bill), or a billing address.

Still another object of the present invention is to provide consumers and vendors with a simple method of billing which is still secure and anonymous.

Another object of the present invention is a transaction method which can be used by a large number of existing and potential Internet consumers without requiring any changes to their current PC setup or changes to the way in which consumers customarily behave and conduct business transactions.

BRIEF DESCRIPTIONS OF THE DRAWINGS

The accompanying drawings, which are incorporated in and constitute a part of this specification, illustrate an implementation of the invention and, together with the description, serve to explain the advantages and principles of the invention. In the drawings,

Figure 1A is a block diagram representation of a brokered anonymous Internet payment system according to the present invention;

Figure IB depicts a more detailed diagram of various computers depicted in Figure 1A;

Figures 2A, 2B, and 2C are exemplary account cards consistent with the principles of the present invention;

Figure 3 depicts an account opening method using a card display stand consistent with the principles of the present invention; Figure 4 depicts an account opening method where the consumer interacts directly with the cashier consistent with the principles of the present invention;

Figure 5 depicts an account opening method using a automatic kiosk or ATM machine consistent with the principles of the present invention;

Figure 6 depicts an account opening method using a device to access the Internet consistent with the principles of the present invention;

Figure 7 depicts an account opening method using a telephone consistent with the principles of the present invention;

Figure 8 is a flowchart of a routine for activating an open account consistent with the principles of the present invention;

Figure 9 is a flowchart of a routine for purchasing goods or services over a network using an account consistent with the principles of the present invention;

Figure 10 is a flowchart of the account opening process according to the method of Figure 3;

Figure 11 is a flowchart of the account opening process according to the method of Figure 4; and

Figure 12 is the flowchart of the account opening process according to the method of Figure 5.

DETAILED DESCRIPTION

The following detailed description of the invention refers to the accompanying drawings. Although the description includes exemplary implementations, other implementations are possible, and changes may be made to the implementations described without departing from the spirit and scope of the invention. The following detailed description does not limit the invention. Instead, the scope of the invention is defined by the appended claims. Wherever possible, the same reference numbers will be used throughout the drawings and the following description to refer to the same or like parts. Overview

Systems consistent with the present invention provide a financial transaction system that enables consumers to spend online anonymously. Using an off-line distribution of prepaid on-line purchasing account numbers connected to an on-line brokerage house, consumers can purchase items without providing their personal financial information, thus revealing their identity.

The financial transaction system enables consumers to effect transactions on the Internet without any special software other than a standard Web browser or hardware to verify the transaction. Consumers can purchase items from various vendors in a secure manner without requiring any changes to their computer or changes to the way in which the consumers customarily behave and conduct business transactions. System Components

Figure 1 A depicts a financial transaction system 100 suitable for practicing methods and systems consistent with the present invention. A plurality of consumers, vendors, and account opening points are all connected to a central broker computer 10. Financial transaction system 100 has been simplified to show only one consumer 22, one vendor 14, and one account opening location 20. The boxes in financial transaction system 100 represent the elements of the computer systems of the parties involved. Referred to hereafter as a computer, each box represents, for example, a system of computers that may perform many different functions.

Figure IB depicts a more detailed diagram a computer 2, 4, 6, 10, 12, or 18, which contains a memory 120, a secondary storage device 130, a central processing unit (CPU) 140, an input device 150, a video display 160, and an output device 170. Memory 120 contains software system 122 that interacts with other computers. Although specific components and software of the computers are described, one skilled in the art will appreciate that they may contain additional or different components, systems, or programs.

The account opening service's bank and computer 2 is, for example, the bank where the account opening service keeps their cash account and from which money is transferred to other banks utilizing an "interbank electronic funds transfer system." The broker's bank and computer 4 is the bank where the cash is held that is represented in the accounting system on broker computer 10. The vendor's bank and computer 6 is the place where the vendor keeps its cash account and where deposits for goods or services sold are deposited.

In one illustrative embodiment, broker computer 10 comprises an accounting software that maintains multiple consumer and vendor accounts, web server software, such as the APACHE (www.apache.org) web server software, for serving web pages over network 11 and/or 40, such as the Internet, a secure server software that can interact with consumer computer 18 or vendor computer 12 using any well-known encryption technique, such as the Secure Socket Layer (SSL) technique and a software system that can link up to a banking network (e.g., a debit network or credit network), such as the Automatic Clearing House, for funds transfer between banks. Vendor computer 12 may contain web server software to send web pages to consumer computer system 18, an e-commerce server software capable of communicating with consumer computer 18 or broker computer 10 using any well-known encryption method. A vendor 14 uses vendor computer 12, for example, to sell goods or services to consumers over network 11. Card production facility 16 represents the production plant where the cards are produced in accordance with the first account opening method (described below).

Consumer computer 18 comprises browser software that has the ability to access the Internet. This could be, for example, a standard web browser such at the Microsoft Explorer or Netscape Navigator but could also include any device that can access the Internet and interact with web servers in a secure fashion, such as a television top box, a hand held mobile device, a web enabled telephone).

Account opening point 20 may be, depending on account opening method, a cashier at a retail or convenience store, an ATM, or an automatic kiosk. A consumer 22 may be an on-line user who accesses the a network 11 at home, office, public library, or other point of access. Example of a Card

Figures 2 A, 2B and 2C depict an exemplary card 23 in a preferred embodiment of the invention. Card 23 has front and back printed sides 21a and 21b as shown respectively in Figures 2A and 2B. The term "card" and "account" is used interchangeable throughout this specification. The front side of card 23 displays marketing images and text to attract the consumers attention. The front side may also display advertisements for on-line vendors that accept card 23 or retailers that distribute card 23. The card face value 24 is the cost to the consumer to purchase the card. This value equates to the opening balance on broker computer 10 for a corresponding account number 26. The back 21b of card 23 displays instructions on how to activate an account corresponding to card 23 after a purchase. An activation web site address 25 is the web site consumer 22 accesses to activate the account. Activation web site address 25 is specific to account number 26. Account number 26 represents the account on broker computer 10 which has a balance of card face value 24. A check number 27 is a number that represents how and where the account was opened. For example, the number may be a batch number for a batch of preprinted cards 23 created at card production facility 16. In another example, the number may be the specific kiosk number where consumer 22 purchased card 23. The activation web site address 25, account number 26, and batch number 27 all correspond to each other on broker computer 10. This is a security feature that makes it difficult for someone to try and activate an account that they did not pay for.

Another security feature is the blocking by a mechanism 28 of the numbers from view before purchase. This can be done in many different ways. One example would be to package card 23 so that back side 21b of the card was not visible until after the card was purchased and the packaging was removed. Another example as seen in Fig 2C would be to cover the important information on the cards with a scratch away material 28 that would be removed after the card was purchased. These and other security features will be further explained in the account activation procedure.

One skilled in the art will appreciate that card 23 may also be printed on paper automatically either by a kiosk or by a terminal located at the cashier of a store. Additionally, card 23 may be a web page or email sent securely over network 11 to consumer computer 18, or face value 24, account activation web site 25, account number 26, and check number 27 could be read to consumer 22 over a telephone by a computer system in a recorded voice. Preprinted Card Production

In one embodiment of this invention, cards may be preprinted at a card production facility 16 and printed cards 23 may be distributed to retail locations for sale to a consumer 22. On broker computer 10, a program may run that creates check number 27 and then creates multiple account numbers 26 associated with that check number 27. The new account number then becomes accounts on the broker accounting system. These accounts are then created with debit balances specified in the program. For example the program operator may decide that of the batch of accounts: 20% should be for $100, 50% should be for $20, and 30% should be for $10. The program associates with the account number 26 an account value (card face value 24) and an activation web site address 25 both of which is used for account creation and card production.

Accounts are opened or created by a program as "dead" accounts, which means although the account has been created it cannot be used by a consumer until after the account is opened and an activation step has taken place. Once the account creation program is finished running on broker computer 10, account numbers 26, their associated value (card face value 24), check number 27, activation web site address 25, and other production and distribution data is sent electronically from the broker computer 10 through a secure link 13 to card production facility 16 for card production. At card production facility 16 plastic or paper cards 23 are produced that display account number 26, check number 27, activation web site address 25, and card face value 24. Card 23 also have some type of machine readable data strip (not shown) that stores account identifier 26, check number 27, and card denomination 24. Once produced, cards 23 are packaged in such a way as to conceal from view, until the packaging is removed, account number 26, check number 27 and activation web site address 25. One example of number concealment is shown in Figure 2C. The batch of cards, along with display materials, is then be sent to an account opening point 20, such as a retail sales location for sale to consumers.

Because the account identifiers are shipped "dead" to the retailers, they have no value until they have been opened (by purchasing a card or other method) and then activated on-line (described below). This eliminates the possibility of account number theft by adding a timing element to account number 26. The accounts can only be activated after they are paid for.

Account Opening Method 1

The term account opening, in this invention, refers to the exchange of currency (cash, credit card, check, etc.) for one account number 26, account activation web site address 25, and check number 27. Therefore, by purchasing a card 23 with this information printed on it, consumer 22 is considered to be opening an account on broker computer 10. Because the card displays all of the information to use an account, the term card and account are sometimes used interchangeably in this description.

Figure 3 is a depiction of one exemplary account opening method. In Figure 1A, consumer 22 goes to account opening point 20, such as a retail location, where a card display stand 30 is located fully accessible to consumer 22. Stand 30 displays a choice of card face values 24. The face values could be, for example, $5 up to $100. After examining the choices of card face values 24, consumer 22 takes a chosen card from the display to a cashier 34 for payment. Cashier 34 asks consumer 22 how the card will be paid for. Consumer 22 may pay with cash, check, credit card, debit card, etc. If consumer 22 pays in cash he gives cashier 34 an amount of cash equal to the face value of the card and that cash is inserted into register 36. If consumer 22 pays using credit, the credit card is first verified through a credit card verification system before the account opening step takes place.

Once payment is verified at point of purchase 20, cashier 34 opens the account using a point of purchase activation system terminal 38. The point of purchase activation system terminal 38 is a device that can read the account information off of the card's bar code or magnetic strip and transmit account number 26, and other data, securely through a network 40 to broker computer 10. Only account number 26, date and time information, and store information is sent to broker computer 10. This is a security feature because if someone intercepted account number 26 they could not activate the account without other numbers 25 and 27 on card 23. An example of a point of purchase activation system terminal is the verification terminals from Verifone (www.verifone.com). When broker computer 10 receives account number 26 from point of purchase activation system terminal 38 at account opening point 20, broker computer 10 sets the account to an open status. Accounts that have an open status are not used for purchases until they have been activated on-line by consumer 22. This is a security step to further cut down on the possibility of stolen account numbers. Data transmission is done illustratively in "an encrypted form when sent over network 40.

Account opening method 1 as described above is explained in a flowchart in Figure 10. Cards 23 is displayed in a retail location fully accessible to consumer 22. First, consumer 22 goes to a retail location and finds the card display (step 118). Next, consumer 22 chooses a card 23 in the preferred denomination (denominations could, for example, range from $5 to $100) (step 120). Consumer 22 goes to the cashier and is asked how he/she would like to pay for card 23 (step 122). Consumer 22 may decide to pay in cash or credit (step 124). If cash is chosen, consumer 22 gives the cashier an amount of cash equal to the face value of the card (step 126) If consumer 22 pays using credit the credit card charge must first be verified (step 128). If the charge was accepted (step 130) or if consumer 22 paid with cash, card 23 is activated be cashier 34 (step 132). Otherwise, consumer 22 is asked for another form of payment (step 122). An example of cashier 34 activating the card may be swiping card 23 through a card reader at the point of sale terminal (cash register). Once cashier 34 swipes card 23, the card data is sent over a network to broker computer 10 and broker computer 10 activates the account, (step 134). Consumer 22 can now proceed to the second account activation step represented by step 136 (described below). Account Opening Method 2

The second method for opening an account does not involve a terminal (e.g., kiosk) or preprinted cards. In this method, consumer 22 opens an account at cashier 34 located in a convenience store. Figure 4 depicts an exemplary account opening method where consumer 22 goes to cashier 34 and tells cashier 34 to open an on-line cash account. Consumer 22 might call the account by it advertised name such as, for example, a "Coolcard" account. Cashier 34 asks consumer 22 how much they would like to use to open the account. These choices might be, for example, in $5 intervals up to a specific maximum amount. Next cashier 34 asks for payment in the form of, for example, cash or credit card. Cashier 34 opens the account by interacting with activation system terminal 38a (e.g., Verifone activation terminal). Using the number pad on activation system terminal 38a cashier 34 enters the opening amount and the payment type. If consumer 22 pays in cash, cashier 34 accepts the cash and deposits it in register 36 and inputs cash as the payment method on activation system terminal 38a. Activation system terminal 38a then sends a message through network 40 to broker computer 10 requesting account opening information (e.g., account number 26, a check number 27, an activation web site address 25) for account denomination 24 chosen by consumer 22. At this point broker computer 10 may create the account opening information and send it to activation system terminal 38a.

If consumer 22 chooses to pay with a credit, check card or other method, cashier 34 first verifies that the payment is valid through traditional verification methods. If payment method is deemed valid, cashier 34 goes through the above detailed process of requesting account opening information using activation system terminal 38a.

Once the activation system terminal 38a receives the account opening information through network 40, the terminal prints the account opening information for consumer 22 on, for example, paper, cardboard, or plastic. To prevent a cashier 34 from stealing the account opening information and activating the account, a security measure may be used, such as a PIN number entered secretly during the account opening process on activation system terminal 38a. Another example of security may be a printer that prints out the received account information accessible only to consumer 22. Still another example would be to use a special printer that prints the information and then conceals the printed information in some way until the consumer removes the concealment. In this method an example of activation system terminal 38a would be the Verifone terminal, such as the Omni line or Tranz line that retailers uses to verify credit cards and debit cards.

Account opening method 2 as described above is explained in a flowchart in Figure 11. First, consumer 22 tells cashier 34 to open an on-line cash account (step 138). Cashier 34 asks consumer 22 how much money they would like to use to open the account (step 140). This amount could be, for example, in $5 intervals up to a specific maximum amount. Cashier 34 starts the account opening process by entering the opening amount into a point of sale terminal (step 142). Cashier 34 may also ask consumer 22 for a preferred method of payment (step 144). If the consumer's decision is cash (step 146) consumer 22 gives cashier 34 an amount of cash equal to the account opening amount (step 148). Cashier 34 then inputs cash as the payment method on point of sale terminal 38a (step 150). If, however, consumer 22 had chosen to pay with another payment method such as a credit card (step 146), cashier 34 may perform a credit charge verification (step 152). If the payment method is with a debit card, consumer 22 may be prompted to enter a pin number (step 154). The charge will be verified by the retailers verification service and if the charge is valid (step 156) point of sale terminal 38a sends to broker computer 10 the account opening information and broker computer 10 sends back the account identification data (step 158). Regardless of the method used to pay cashier 34, the account identifying information may be printed on paper or a plastic card for consumer 22 (Step 160). Consumer 22 can now proceed to the second account activation step represented by box 162 (described below). Account Opening Method 3

The third method for opening an account uses an activation system terminal (kiosk). In this method, consumer 22 opens an account using a terminal 38b located, for example, in a convenience store. Figure 5 depicts an exemplary account opening method where consumer 22 goes to terminal 38b to open an account on broker computer 10. In this illustrative embodiment, activation system terminal 38b is very similar to an ATM machine except that terminal 38b contains an opening for inserting currency into the machine as well as a system for reading and verifying the inserted currency. In this method consumer 22 approaches terminal 38b and chooses between the options of. for example, withdrawing funds or opening an on-line account. For this invention consumer 22 chooses the option to open an account on broker computer 10. Terminal 38b then prompts consumer 22 for a payment method. The options may comprise cash, credit card, and checking account debit card. If consumer 22 chooses cash the consumer is asked to select an account opening amount. The choices may be dependant on what bills the machine may accept. The most likely choices are in multiples of $5. Once a choice is made terminal 38b prompts consumer 22 to insert an amount of cash equivalent to the chosen opening amount. The cash is read by terminal 38b for quantity and then counterfeit checked. In the case that the cash quantity is invalid or the currency is invalid, consumer 22 is asked to try again. If the cash is determined to be valid, terminal 38b sends a request over a network 40 to broker computer 10 for account opening information. Broker computer 10 assigns account opening information based upon the opening amount chosen by consumer 22 and sends that account information to terminal 38b through network 40.

If consumer 22 chooses credit or debit, the consumer is asked to select an opening amount. This opening amount is either shown as an option or manually entered by consumer 22. Consumer 22 then inserts a payment card into terminal 38b. Terminal 38b next prompts consumer 22 to enter the associated PIN number. This data is then sent through network 40 to a payment verification service. Once credit payment is verified, terminal 38b queries broker computer 10 for account opening information. Broker computer 10 assigns account opening information based upon the opening amount chosen by consumer 22 and sends that account opening information to the terminal 38b through network 40.

Once terminal 38b receives the account opening information from broker computer 10 it may print a card 23 for consumer 22. On card 23 will be printed the account opening information. For example this information may include: 1) account number 26; 2) a kiosk identification number 27; 3) an activation web site address 25 ; 4) an account opening amount 24; 5) contact information for questions or problems; 6) marketing or advertising material 24.

Account opening method 3 as described above is explained in a flowchart in Figure 12. First, consumer 22 approaches a terminal 38b and chooses between the function options (step 164). Consumer 22 next choose the option on terminal 38b for opening an account on broker computer 10 (step 166). Terminal 38b prompts consumer 22 for a payment method (step 168). If the consumer 22 chooses cash (step 170) terminal 38b then prompts consumer 22 to select an account opening amount (step 182). The choices could be dependant on what bills the machine is able to accept. Choices might be, for example, in multiples of $5. Once a choice is made, terminal 38b prompts consumer 22 to insert an amount of cash equivalent to the chosen opening amount and consumer 22 feeds that amount into the cash input device on terminal 38b (step 184). Terminal 38b then reads the cash for quantity and the counterfeit is checked. If the cash quantity is invalid or the currency is invalid (step 186), consumer 22 is asked to try again (step 188).

If consumer 22 chooses credit (step 170), consumer 22 is asked to select an opening amount (step 172). This opening amount could be, for example, shown as an option or manually entered by consumer 22. Consumer 22 then inserts a payment card into terminal 38b (step 174). Terminal 38b prompts consumer 22 to enter the associated PIN number (Step 176). This data is then sent through a network for verification (step 178).

If credit payment is invalid (step 180), or if consumer 22 does not retry (step 188), the process ends.

If, however, credit payment is valid (step 180), or cash amount is valid (step 186), terminal 38b sends a request to the broker computer for account identifying information (step 190). Broker computer 10 then assigns account identifying information based upon the opening amount chosen by the consumer and send that account information to the kiosk. Once terminal 28b receives the account identifying information from broker computer 10 it prints a card 23 for consumer 22 (step 192). Other Account Opening Methods

Figure 6 depicts consumer 22 interacting with broker computer 10 through a network 40. An example of this method may be a consumer 22 using a web browser software on activation station 38c (e.g., a web access device) having a connection to network 40. Consumer 22 may use the web browser to contact the host computer and fill out an on-line form to open the account using a credit card or other billing method as payment. The other billing method might be, for example, a telephone billing service that utilizes a 900 number such as Web900 or I-Bill.

Figure 7 depicts a consumer 22 using terminal 38d in the form of a telephone to interact with broker computer 10 through network 40. Consumer 22 may interact with broker computer 10 using the keypad of the telephone to open an account. In this method consumer 22 may use a credit card as a payment method and the account information may be read to consumer 22 by a machine in a recorded voice. In another embodiment of the invention there would be no need to activate cards 23 at the point of sale terminal after money was exchanged between consumer 22 and cashier 34. In this embodiment cards 23 are produced at card production facility 16 and sent to account opening point 20 in a unopened or "dead" state as previously explained. Once account opening point 20 receives the batch of cards 23 an authorized employee activates the batch of cards 23 by interacting with broker computer 10 over, for example, a telephone or a computer attached to a network 40. The authorized employee then transmits check digit 27, which is the same on all cards 23 in the batch, to broker computer 10. Broker computer 10 may then open all accounts in that batch. The authorized employee then secures the newly open account cards 23 as they are now worth the face value printed on them and are as good as cash. In this embodiment consumer 22 may go to a display 30 to select a dummy card based on the card face value. Consumer 22 then takes this dummy card to cashier 34 and cashier 34 would exchange the dummy card for the actual, already opened, card 23 , with the same face value, that has been securely stored. Account number 26, activation web site 25, and check digit 27 is printed on card 23 that is securely stored. The consumer purchases securely stored card 23 and proceed to the activation step. Account Opening Anonymity

An important aspect of this invention is that during the account opening process broker computer 10 does not receive any information about consumer 22. The only information broker computer 10 needs to open an account is verification of payment of the opening amount at account opening point 20. If a consumer 22 pays in cash they are assured that they account is anonymous. If a consumer 22 pays with a credit card, the credit card data does not get to broker computer 10. Money Movement After Account Opening

Figure 1 depicts a plurality of banks 2 and 4 that are involved when a consumer 22 opens an account using opening method 1,2, or 3. The payment is accepted at account opening point 20 in cash, credit, or other form. Point of sale terminal computer 38, 38a as seen in Figures 3 and 4 at opening point 20 to keep track of the account payable to broker computer 10 and on a regular basis instruct retailer's bank 2 to pay, through an electronic funds transfer, the account payable to broker computer's bank 4. This could happen, for example, every day or every week. Broker computer 10 keeps records of accounts receivable based on account opening data received from account opening point 20. Using this information broker computer 10 performs a check to make sure that the account receivable matches the amount paid by the account opening point's (retailer's) bank 2. Alternatively, customer 22 may transfer money between existing accounts without depositing additional funds. Account Activation Process

Although consumer 22 has now opened an account on broker computer 10 for a desired amount, that account cannot yet be used for purchases until it is activated by consumer 22. The activation step is a security measure to prevent account numbers from being used fraudulently. For consumer 22 to activate the account they use three pieces of information all printed on card 23. Consumer 22 needs activation web site address 25, account number 26, and check number 27. Figure 8 is a flow diagram of the steps performed when activating the account. The first step is for consumer 22 to use consumer computer 18 to access broker computer 10 over network 11 (step 70). Consumer 22 may enter activation web site address 25 into web browser on computer 18 and will be taken to that specific activation page on broker computer 10. Next, consumer 22 enters account number 26 and check number 27 into the web page and sends it over network 11 to broker computer 10 (step 72). Broker computer 10 may then check the account against the account database (step 74). Broker computer 10 also checks to see if the account was properly opened (step 76) and, if it is not, a message may be sent with an error message to consumer computer 18 (step 78).

If the account was properly opened (step 76), broker computer 10 checks that the activation web site address 25, account number 26, and check number 27 all match what is stored in the account database for this specific account (step 80). If there is no match, broker computer 10 sends a message back to consumer computer 18 with an error message (step 82). If the information entered by consumer 22 passes all checks on broker computer 10, a form will be sent to consumer computer 18 from broker computer 10 prompting consumer 22 to enter a password for account (step 84). Consumer 22 then creates a password and sends it to broker computer 10 (step 86). Broker computer 10 receives the password and stores it on the account record in its database. Broker computer 10 then sends a message to consumer computer 18 that the account has been activated (step 88). Consumer 10 may now proceed to the purchase process as seen in Figure 9.

In an alternative embodiment, a consumer 10 may use a numerical keypad of a telephone to dial a special toll free number on the card and interact with broker computer 10. Making Purchases

Once the account is "live" (meaning it has passed the activation process), consumer 22 may spend face value 24 of card 23 at any of the participating on-line vendors 14 until the balance of account 23, represented by account number 26, has reached zero. Figure 9 is a flowchart depicting the method of purchasing items. When consumer 22 finds a product or service he/she wishes to purchase (step 92) from an on-line vendor 14, consumer 22 accesses that vendor's computer 12 and requests a secure web page for exchanging transaction information (step 94). This web page may be served by a vendor computer 12 web server. Next, consumer 22 is given several choices of payment methods and may choose to pay using the account on broker computer 10 (step 96).

If consumer 22 pays with the account from broker computer 10, consumer computer 18 is sent a secure form from the vendor's web server, a component of vendor computer 12 with a field for a consumer 22 account number 26 and password (step 100). Consumer 22 then enters account number 26 and password and sends the entered data over network 11 to vendor computer 12 using a standard encryption method. Vendor computer 12 may accept the transaction data from consumer computer 22 and appends to it, for example, the vendor account number, password, and transaction total (step 102). This data is then encrypted (e.g., SSL) and sent to broker computer 10 as a request for a transaction. In addition, the consumer may encrypt the data such that the vendor cannot decrypt the data but can only append additional encrypted data to send to broker computer 10. Once broker computer 10 accepts and decrypts the data from vendor computer 12 (step 104), broker computer 10 verifies the vendor's account identification and consumer's account identification (step 106). Then broker computer 10 checks the account balance of account number 26 (step 108). If the balance in the consumer's account exceeds the purchase total and the consumer and vendor identification were verified, a transaction occurs (step 112). The purchase price is debited from the consumer's account represented by account number 26 and the purchase price minus a transaction fee is credited to the vendor's account on broker computer 10. The transaction fee will be credited to the fee account on broker computer 10. Broker computer 10 also sends back to vendor computer 12 an encrypted verification of a successful transaction as well as the full transaction details (step 114). Finally, vendor computer 12 accepts and decrypts the communication from broker computer 10 and sends a verification to consumer computer 22 (step 116). At this point vendor 14 can send the product to consumer 18 either over the network (e.g. online music), or through some type of physical shipping method.

If, however, broker computer 10 determines the account information from consumer 22 to be invalid (step 106), broker computer 10 sends a message back to vendor computer 12 indicating the problem and requesting that consumer 18 reenter the numbers (step 108). Vendor computer 12 may also forward the message to consumer computer 18 (step 110).

In an alternative embodiment vendor computer 12 may give broker computer 10 permission to directly interact with consumer computer 18 through network 11. After consumer 22 has chosen a product to purchase and is ready to pay, vendor computer 12 may send a message to broker computer 10 with the vendor identification and the purchase price. Broker computer 10 then interacts directly with consumer computer 18 and queries consumer 22 for account number 26 and password. Security

Security is a significant aspect of this invention. Having a secure system where it is next to impossible for accounts to be used without payment will allow the service company to charge lower prices for the service. The time when the account is opened is when there is the most risk for accounts being stolen. In order to prevent theft of the account number or other misuse of debit accounts safety procedures which should effectively discourage such misuse are included in this inventions:

First the account numbers are multicharacter and 10 or more digits long. This makes the number of possible combinations extremely high and difficult to break.

Second, the fact that the account is only usable after it has been opened and activated adds a timing issue that makes it even more difficult to steal account numbers. Account numbers on cards 23 cannot be stolen from the store without first being activated. To prevent the cards from being activated by employees without being first purchased, a link to the register might be established so that if cash is paid it can be determined by the activation system that money has been exchanged for the card 23. When a consumer 22 purchases a card 23 using a credit card the account number 26 will not be activated until after credit card 23 has been approved. This and other measures will diminish the possibility that a store employee could steal an account number 26.

Third, account numbers 26 will be hidden from view until after the card was purchased and consumer 22 removes the account number from it's cover 28 as shown in Figure 2C.

Other security measures will be performed at the time of purchase to prevent unauthorized use of the cards. Conclusion

As explained, systems consistent with the present invention overcome the shortcomings of existing financial transactional systems by providing users the ability to spend on-line easily, safely, anonymously, in small or large increments with no personal attachment to Internet service providers, billing, credit card, or banking institutions.

The foregoing description of an implementation of the invention has been presented for purposes of illustration and description. It is not exhaustive and does not limit the invention to the precise form disclosed. Modifications and variations are possible in light of the above teachings or may be acquired from practicing of the invention. For example, the described implementation includes software but the present invention may be implemented as a combination of hardware and software or in hardware alone. The invention may be implemented with both object-oriented and non-object-oriented programming systems.

Claims

WHAT IS CLAIMED IS:

1. A method for purchasing an item using an anonymous source for payment, comprising the steps, executed in a data processing system, of: issuing an account having a predetermined amount of money in the account; providing account identification data; and allowing a vendor to deduct an amount less than or equal to the amount in the account using the identification.

2. The method of claim 1, wherein issuing an account further includes the steps of: opening the account using the identification on a broker server, wherein the broker server does not contain any information associated with the user; receiving a request including an amount of funds to include in the account from a user; verifying that the funds have been received; and providing account identification data to the user when the funds have been received.

3. The method of claim 2, wherein a banking network is used to open the account.

4. The method of claim 1, wherein the account identification data is encrypted before it is sent to the vendor, and wherein allowing a vendor to deduct an amount less than the amount in the account further includes the steps of: transmitting a request to a broker computer to deduct a specified amount including the encrypted account identification data; and receiving a response from the broker server vendor computer indicating whether the vendor may deduct an amount less than the amount in the account.

5. A method for purchasing an item using funds from an anonymous account, comprising the steps, executed in a data processing system, of: permitting a user to open an anonymous account on a broker server, wherein the account contains a predetermined amount of funds; receiving an identification of an item to purchase and an identification associated with the anonymous account at a vendor server; and accepting the purchase if the anonymous account contains funds more than the amount of the item.

6. The method of claim 5, wherein permitting a user to open an account includes the step of activating the anonymous account.

7. The method of claim 6, wherein activating the anonymous account includes the steps of: receiving a password and an identification associated with the account from the user; determining if the account is valid; and providing the user with an indication that the account is activated.

8. The method of claim 7, wherein the identification associated with the account is initially concealed.

9. The method of claim 5, wherein opening an account further includes the steps of: providing the user with a preprinted card, wherein the preprinted card contains an identification associated with the account; receiving funds and the identification associated with the account at the broker server; and providing a response indicating that the funds have been received.

10. The method of claim 9, wherein receiving funds further includes the step of transferring funds from one account to another account.

11. The method of claim 5, wherein opening an account further comprises the steps of: receiving funds at the broker server; determining if the funds are accepted; and if the funds have been accepted, providing the user with an identification associated with the account.

12. A method for selling an item using an anonymous account, comprising the steps, executed in a data processing system, of: receiving a request to purchase an item from a user with an anonymous account, wherein the request includes an identification and a password associated with the anonymous account; requesting a transaction from a broker server, wherein the request includes the identification and password associated with the anonymous account and a vendor identification; and receiving a verification from the broker computer when the transaction is successful.

13. The method of claim 12, wherein receiving a verification further includes the steps of: at the broker computer, determining if the anonymous account contains funds sufficient to purchase the item, and if so, debiting funds from the anonymous account.

14. A method for issuing an anonymous account to a user having a predetermined amount of money, comprising the steps, executed in a data processing system, of: providing a user with an identification associated with the account; receiving funds from the user to open the account; opening the anonymous account using the identification on a broker server and received funds, wherein the broker server does not contain any information associated with the user; and activating the account using the identification associated with the account.

15. The method of claim 14, wherein opening the anonymous account, further includes the steps of: receiving a request including an amount of funds to include in the account from the user to open the account; verifying that the funds have been received; and providing account identification data to the user when the funds have been received.

16. The method of claim 14, wherein activating the account further includes the step of: requesting a password from the user to access the account;

17. The method of claim 14, wherein receiving funds from the user further includes the step of transferring funds between accounts.

18. A method for issuing an anonymous account to a consumer so that the consumer may transact with a retailer comprising the steps, executed in a data processing system of: receiving funds from a consumer; opening an anonymous account on a broker computer; and activating the account on the broker computer.

19. The method according to claim 18, wherein opening an account includes the step of providing an account identifier printed on a printable medium at a retail location for a fixed amount specified by the broker server and using any form of payment accepted by the retailer.

20. The method according to claim 18 , wherein opening an account includes exchanging funds for an account identifier utilizing an automatic vending machine.

21. The method according to claim 18 , wherein opening an account is done on-line using a form to enter a credit card number and where an account identifier is received by the consumer by email.

22. The method according to claim 18, wherein opening an account is done over the telephone using the telephone number keypad to interact with an automatic system and using a credit card for the purchase and where the account identifier is received over the telephone through a recorded voice.

23. The method according to claim 18, wherein the consumer is not required to transfer to the retailer or broker any personal or financial information at the time of account opening other than, in the case of a credit card purchase, necessary information to verify a credit card.

24. The method according to claim 19, wherein the printable medium is a plastic or paper card and packaging with an account identifier printed on one side and hidden by the packaging or scratch off material, a batch number printed on one or both sides, a card value printed on one or both side, and a machine readable format that can store the account identifier, batch number, and card value to be read at the point of purchase by a point of purchase activation system.

25. The method according to claim 24, wherein the message is created using a point of purchase activation system.

26. The method according to claim 17, wherein activating the account includes the steps of: providing the account identifier and other identifying numbers associated with the card to the broker computer; and creating, at the broker computer, a verification string to associate with the account identifier.

27. A method for processing transactions between a consumer and a vendor, comprising the steps, executed in a data processing system, of: receiving a request on a broker computer to transfer an amount from the consumer's account to the vendor's account on the broker computer; verifying the vendor request; performing the requested transaction; transmitting to the vendor a verification of a successful transaction; and transmitting an error message if the verification of the vendor request did not satisfy the requirements for a transaction.

28. The method according to claim 27, wherein the request to transfer an amount includes a price, a consumer account identifier, a consumer verification string, a vendor account identifier, and a vendor verification string.

29. The method according to claim 27, wherein verifying the vendor request includes the steps of: verifying that a consumer account identifier, a consumer verification string, a vendor account identifier, a vendor verification string is valid; and determining that a consumer. debit balance is greater than purchase price.

30. The method according to claim 27, further including the steps of: debiting the consumer's account by a purchase total; crediting the vendor's account by the purchase total minus a transaction fee; and crediting the broker computer's fee account with the transaction fee.

31. The method according to claim 27, wherein at least some of the communication between parties is done using encryption.

32. A method for processing transactions between a plurality of consumers and a plurality of vendors comprising the steps of: at least one consumer opening a currency debit account on a broker computer; the consumer activating the currency debit account on the broker computer; at least one vendor establishing an account on the broker computer; the consumer requesting to purchase goods or services from the vendor over a computer network; the vendor requesting that the broker computer transfer the appropriate amount from the consumer's account to the vendor's account on the broker computer; the broker computer verifying the vendor request; the broker computer performing the requested transaction; the broker computer sending the vendor a verification of a successful transaction; and the broker computer sending a descriptive error message if the verification of the vendor request did not satisfy the requirements for a transaction.

33. A system for processing transactions between a consumer and a vendor, comprising : a broker computer that receives requests from a vendor to transfer an amount from a consumer's account to a vendor's account, that verifies the vendor request, that performs the requested transaction, that transmits to the vendor a verification of a successful transaction, and that transmits an error message if the verification of the vendor request did not satisfy the requirements for a transaction.

34. The system according to claim 33, wherein the request to transfer an amount includes a price, a consumer account identifier, a consumer verification string, a vendor account identifier, and a vendor verification string.

35. The system according to claim 33 , wherein the broker computer further verifies that a consumer account identifier, a consumer verification string, a vendor account identifier, a vendor verification string is valid and that determines that a consumer debit balance is greater than purchase price.

36. The system according to claim 33, wherein the broker computer further debits the consumer's account by a purchase total, credits the vendor's account by the purchase total minus a transaction fee, and credits the broker computer's fee account with the transaction fee.

37. The system according to claim 33, wherein at least some of the communication between parties is done using encryption.

38. A system for purchasing an item using an anonymous source for payment, comprising: issuing means for issuing an account having a predetermined amount of money in the account; and providing means for providing account identification data, wherein the system allows a vendor to deduct an amount less than or equal to the amount in the account using the identification.

39. The system of claim 38, further comprising: a broker server that contains no information associated with the user, that opens the account using the identification, that receives a request including an amount of funds to include in the account from a user, that verifies that the funds have been received, and that provides account identification data to the user when the funds have been received.

40. The system of claim 38, wherein a banking network is used to open the account.

41 The system of claim 38, further comprising encrypting means for encrypting the account identification data before it is sent to the vendor, and wherein the system further comprises: transmitting means for transmitting a request to the broker server to deduct a specified amount including the encrypted account identification data; and receiving means for receiving a response from the broker server indicating whether the vendor may deduct an amount less than the amount in the account.

42. A data processing system for issuing an anonymous account to a user having a predetermined amount of money, comprising: a server containing: a memory with a program configured to provide a user with an identification associated with the account, configured to receive funds from the user to open the account, configured to open the anonymous account using the identification and received funds, and configured to activate the account using the identification associated with the account, and wherein the server does not contain any information associated with the user; and a processor configured to run the program.

43. The data processing system of claim 42, wherein the program contains a component configured to receive a request including an amount of funds to include in the account from the user to open the account, configured to verify that the funds have been received, and configured to provide account identification data to the user when the funds have been received.

44. The data processing system of claim 42, wherein the program contains a component configured to request a password from the user to access the account.

45. The data processing system of claim 43 , wherein the program contains a component configured to transfer funds between accounts.