Transaction methods systems and devices

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TECHNICAL FIELD

The present invention relates to methods, systems, and devices for performing transactions via an electronic network such as the Internet.

BACKGROUND OF THE INVENTION

Many companies have proposed services for selling products on the Internet. One such service involves offering software tools to create, host, and manage a Web site and a Web-based store to perform transactions over the Internet.

Included in the service is support for credit card purchases over the Internet. When an end user registers for the service, he/she is assigned a personal identification number as a proxy for his/her credit card number. To make a purchase over the Internet, the end user enters the personal identification number into his/her personal computer. The personal computer, in turn, communicates the personal identification number to a Web-based merchant via the Internet. The purchase is made based on the personal identification number rather than a credit card number.

Advantageously, the use of the personal identification number prevents an interception of the end user's credit card number by unauthorized parties. A drawback of using a personal identification number is that many individuals currently have other personal identification numbers and passwords to remember. Additionally, the interception of the end user's personal identification number can result in transactions by unauthorized parties. Accordingly, there is a need for improved methods, systems, and devices for Internet transactions.

BRIEF DESCRIPTION OF THE DRAWINGS

The invention is pointed out with particularity in the appended claims. However, other features of the invention will become more apparent by referring to the following detailed description in conjunction with the accompanying drawings in which:

FIG. 1 is a block diagram of an embodiment of a transaction system in accordance with the present invention;

FIG. 2 is a view of a first example of the device 40 described with reference to FIG. 1;

FIG. 3 is a view of a second example of the device 40 described with reference to FIG. 1;

FIG. 4 is a view of a third example of the device 40 described with reference to FIG. 1;

FIG. 5 is a view of a first example of the device 52 described with reference to FIG. 1;

FIG. 6 is a view of a second example of the device 52 described with reference to FIG. 1;

FIG. 7 is a view of a third example of the device 52 described with reference to FIG. 1;

FIG. 8 is an illustration of an example of the data reader and the network access apparatus at the user location;

FIG. 9 is a flow chart summarizing steps performed in an embodiment of a transaction method;

FIG. 10 is a flow chart summarizing steps performed in another embodiment of a transaction method; and

FIG. 11 is a flow chart summarizing steps performed in an embodiment of an authentication method in accordance with the present invention.

DETAILED DESCRIPTION OF A PREFERRED EMBODIMENT

Using embodiments of the present invention, an end user is authenticated in a transaction based upon machine-readable data read by a data reader at the end user's location. Preferably, the machine-readable data includes a bar code that may be read by an optical data reader such as a bar code reader. To reduce the likelihood of unauthorized interception of a personal identification code, a time-varying bar code is used to authenticate the end user.

FIG. 1 is a block diagram of an embodiment of a transaction system in accordance with the present invention. The transaction system includes a computer 20 in communication with an electronic network 22. The computer 20 includes a server or like processing apparatus which serves as a node in the electronic network 22.

Preferably, the electronic network 22 includes a wide area network such as the Internet, the World Wide Web, or an online service to provide accessibility to the computer 20 for a wide geographical area. Other examples of the electronic network 22 include but are not limited to: an intranet, a local area network, a telephone network such as a public switched telephone network, a cellular telephone network, a personal communication system (PCS) network, a television network such as a cable television system, a paging network such as a local paging network, a regional paging network, a national paging network, or a global paging network, and a wireless data network such as a satellite data network or a local wireless data network.

The computer 20 receives transaction data generated at a user location 24 via the electronic network 22. Typically, the user location 24 is remotely located from the computer 20. For example, the user location 24 can be located in another city, another state, or another country with respect to the location of the computer 20.

In a first embodiment, the transaction data includes a first data element indicating an item in a transaction and second data element indicating a party of the transaction. The item in the transaction can include: (i) merchandise such as a product, goods, or commodities; (ii) a statement of charges such an invoice or a bill; (iii) a financial instrument such as a bond, shares of a stock, or shares of a mutual fund; (iv) derivatives such as options or futures; or (v) a service. The party of the transaction can include an end user 26 present at the user location 24, an organization associated with the end user 26, an organization associated with the user location 24, or an account associated with any of the above-listed entities.

The transaction data is generated at the user location 24 by a data reader 30 and/or a network access apparatus 32. Preferably, the data reader 30 includes an optical data reader to read printed data or human-viewable data (which may or may not be human-readable data) associated with the transaction data. Examples of the optical data reader include, but are not limited to, an optical scanner, a page scanner, a handheld scanner, a photograph reader, a business card reader, a bar code reader, a scanning wand, a linear CCD (charge coupled device) reader, a two-dimensional CCD reader, and a fax machine.

Alternatively, the data reader 30 can include a magnetic data reader to read magnetically-stored transaction data, or an electronic data reader to read electronically-stored transaction data. Embodiments of alternative data readers are described in the above-listed applications incorporated by reference into this application.

The network access apparatus 32 facilitates communication between the data reader 30 and the electronic network 22. The network access apparatus 32 can also serve to generate at least a portion of the transaction data, and/or to receive user-initiated events to generate at least a portion of the transaction data. The network access apparatus 32 can have a variety of forms, including but not limited to, a general purpose computer, a network computer, a network television, an Internet television, a portable wireless device, a television receiver, a game player, and a video recorder.

Regardless of its form, the network access apparatus 32 typically includes a processor in communication with at least one input device, a memory, and at least one storage device. The processor can include a microprocessor, an application specific integrated circuit, or other suitable integrated circuit. The memory can include a read-only memory and/or a random access memory in communication with the processor. The at least one input device can include a keyboard and/or a pointing device for receiving user-initiated events from the end user 26. The at least one storage device can include a floppy disk drive, a PC card storage device, an optical drive, a DVD drive, or a hard drive to store computer-readable data.

A display device 34, such as a monitor or a television, is responsive to the network access apparatus 32 to display visual information generated by the network access apparatus 32 and/or information communicated via the electronic network 22 (e.g. information from the computer 20). The display device 34 can include a liquid crystal display (LCD) or a cathode ray tube (CRT) display, for example, having an array of display elements or pixels for displaying textual information and graphical information. Preferably, the visual information displayed by the display device 34 includes a first human-readable image 35 associated with a service which facilitates the transaction. The first human-readable image 35 can include a logo which identifies the service to the end user 26.

Preferably, the data reader 30 reads machine-readable data 36 from a device 40 to generate the second data element indicating the party of the transaction. The device 40 includes a member 42 which supports the machine-readable data 36, and optionally, a first human-readable image 44. The first human-readable image 44 is associated with a service which facilitates the transaction. Preferably, the first-human readable image 44 includes the logo which identifies the service to the end user 26. Examples of the device 40 are subsequently described with reference to FIGS. 2 to 4.

Preferably, the machine-readable data 36 includes a printed code or a human-viewable code, such as a bar code, which encodes the second data element to identify the party in the transaction. The bar code can include a one-dimensional bar code or a two-dimensional bar code. Examples of one-dimensional bar codes include, but are not limited to, 3 of 9, UPC-A, UPC-E, Code 128, Codabar, MSI, Extended 3 of 9, Code 93, Extended Code 93, Industrial 2 of 5, Standard 2 of 5, Code 11, and UCC/EAN-128. Examples of two-dimensional bar codes include, but are not limited to, DataMatrix and PDF417. Although bar codes are human-viewable, they are practically unreadable by many humans.

Regardless of how the second data element is encoded by the machine-readable data 36, it is preferred that the second data element include a personal identification code such as a personal identification number to identify the end user 26, an organization, or an account. In an exemplary embodiment, the personal identification code is time-varying and nonpredictable by unauthorized parties.

Alternatively, the second data element is generated within the network access apparatus 32. In this case, the second data element can be prestored in the network access apparatus 32 or can be generated by a code generator associated with the network access apparatus 32. Preferably, the code generator generates the second data element which is time-varying and nonpredictable by unauthorized parties.

Optionally, the data reader 30 reads machine-readable data 50 from a device 52 to generate the first data element is associated with the item subject to the transaction. The device 52 includes a support member 54 which supports the machine-readable data 50, and optionally, a first human-readable image 56 and a second human-readable image 60.

As with the first human-readable images 35 and 44, the first human-readable image 56 is associated with the service which facilitates the transaction. Preferably, the first human-readable image 56 includes the logo which identifies the service to the end user 26. The first human-readable image 56 is similar to, and preferably equivalent to, the first human-readable image 35.

The second human-readable image 60 includes an image associated with a transaction item. The second human-readable image 60 can include a graphical image of the item itself, textual information describing the item, a price associated with the item, and/or a logo for the item or for an organization associated with the item. Examples of the device 52 are subsequently described with reference to FIGS. 5 to 7.

Alternatively, the first data element is generated in response to a user-initiated event received by an input device of the network access apparatus 32. In this case, the end user 26 can select the item and initiate a transaction based upon a second human-viewable image 62 displayed by the display device 34. As with the second human-readable image 60, the second human-readable image 62 can include a graphical image of the item itself, textual information describing the item, a price associated with the item, and/or a logo for the item or for an organization associated with the item. The item can be selected by a point and click operation using a pointed device or by depressing one or more keys of the network access apparatus 32, for example.

Regardless of how the transaction data is produced, the network access apparatus 32 communicates the transaction data to the computer 20 via the electronic network 22. Preferably, the transaction data is encrypted by the network access apparatus 32 prior to its transmission via the electronic network 22. In this case, the computer 20 decrypts data received from the electronic network 22 to recover the transaction data.

The computer 20 selectively approves or disapproves the transaction based upon the second data element. The approval or disapproval of the transaction is based upon a step of authenticating the second data element. The second data element can be authenticated locally by the computer 20 or remotely by a computer 64.

If done locally, the computer 20 approves the transaction by comparing the second data element and other associated data to entries in a database within or in communication with the computer 20. Based upon the comparison, the computer 20 determines the authenticity of the transaction party. If authentic, the transaction is approved. If not authentic, the transaction is disapproved.

If authenticated remotely, the computer 20 approves the transaction by sending a first message based upon the second data element to the computer 64. The computer 64 compares the second data element and other associated data to entries in a database associated with the computer 64, and either accepts or rejects the authenticity of the transaction party based upon the comparison. The computer 64 sends a second message indicating either an acceptance or a rejection of the authenticity of the transaction party to the computer 20. The computer 20 receives the second message and either approves or disapproves the transaction based thereupon.

Preferably, the computer 64 serves to authenticate transaction parties for a plurality of computers associated with the electronic network 22. The computer 64 preferably maintains the database of personal identification codes for a plurality of accounts of end users and/or organizations.

After approving the transaction, the computer 20 creates a record of the transaction. The record of the transaction includes data representative of the date of the transaction, the time of the transaction, the party initiatin