System and method for biometric authorization for financial transactions

Abstract

The present invention is a system and method of biometric-based identity verification for authorizing financial transactions between a consumer and a merchant, said system comprising distributed processing to facilitate biometric matching and various types of financial transactions to facilitate said system's integration into current financial networks. System users register at least one biometric identifier, personal and/or business identity-verifying data, and financial account information. A user presents a biometric sample obtained from the user's person and the user's system ID number to conduct financial transactions. This data is used to authenticate the user's identity and authorize transfer of funds from the user's registered financial account to the designated recipient's account by matching the presented transaction biometric with at least one registered biometric template and without the use of a man-made financial account token or identity token.

1 . A system for authorizing transactions utilizing biometric data, the system comprising: 
 a database, residing at a first location, containing one or more system user accounts holding at least biometric data and system user information;    one or more approval stations residing at locations distinct from the first location, wherein an approval station comprises a means for sampling one or more presented biometric characteristics and comparing data derived from a sampled biometric characteristic with registered biometric data received from a system user account stored at a database; and    a transmission means for transmitting one or more of biometric data and system user information between an approval station and a database.    
     
     
         2 . The system of  claim 1 , wherein the system user account is a consumer account and the system user information stored therein comprises one or more of an identification code, government identification data, an address, a telephone number, financial account data, age data, loyalty account data, and reward account data.  
     
     
         3 . The system of  claim 1 , wherein the system user account is a merchant account and the system user information stored therein comprises one or more of an identification code, merchant location data, a telephone number, terminal identification data, financial account data, enrollment parameters, and transaction parameters.  
     
     
         4 . The system of  claim 1 , wherein the system user account is a merchant employee account and the system user information stored therein comprises one or more of an identification code, government identification data, an address, a telephone number, and employee system access parameters.  
     
     
         5 . The system of  claim 1 , wherein an approval station is located at one of a register, a computer, a wireless device, a kiosk, an automated teller machine, a payphone, or a vending machine.  
     
     
         6 . The system of  claim 1 , wherein an approval station further comprises a means for receiving an identification code.  
     
     
         7 . The method of  claim 1 , wherein the system is further enabled to administer one or more types of financial transactions.  
     
     
         8 . A method of using a transaction system to provide approval of a transaction between a merchant and a consumer, wherein the method comprises: 
 receiving, at an approval station, biometric data derived from one or more proffered biometric characteristics and an identification code;    transmitting the identification code to a database at a location remote from the approval station;    retrieving registered biometric data from a user record associated with the identification code at the database;    comparing the biometric data derived from one or more proffered biometric characteristics with the retrieved registered biometric data;    if a match is indicated, evaluating transaction data with respect to transaction rules; and    if the transaction data complies with one or more transaction rules, indicating the transaction is approved.    
     
     
         9 . The method of  claim 8 , wherein a biometric characteristic is one of a fingerprint, an iris, a face, a voice, a retina, and a hand architecture.  
     
     
         10 . The method of  claim 8 , wherein the transaction data comprises an amount to be paid by the consumer to the merchant.  
     
     
         11 . The method of  claim 10 , wherein the transaction data further comprises an indication of at least one account from which the amount is to be paid.  
     
     
         12 . The method of  claim 8 , wherein the transaction data comprises a terminal identification number associated with the approval station.  
     
     
         13 . The method of  claim 8 , wherein the transaction data comprises a transaction reference number associated with the transaction.  
     
     
         14 . The method of  claim 8 , wherein transaction data complies with a transaction rule if a transaction does not exceed a payment amount.  
     
     
         15 . The method of  claim 8 , wherein transaction data complies with a transaction rule if a consumer meets or exceeds a minimum credit rating.  
     
     
         16 . The method of  claim 8 , wherein transaction data complies with a transaction rule if the transaction amount does not exceed a credit limit.  
     
     
         17 . The method of  claim 8 , wherein transaction data complies with a transaction rule if the transaction amount does not exceed a minimum balance in an account.  
     
     
         18 . The method of  claim 8 , wherein transaction data complies with a transaction rule if an account meets score criteria.  
     
     
         19 . The method of  claim 8 , wherein transaction data complies with a transaction rule if transaction data complies with one or more parameters established by a merchant or a consumer.  
     
     
         20 . The method of  claim 8 , wherein transaction data complies with a transaction rule dependent upon whether the transaction is for one or more specific good or service.  
     
     
         21 . A method of using a transaction system to provide approval of a transaction between a merchant and a consumer, wherein the method comprises: 
 sampling, at the approval station, at a first location, a biometric characteristic of the consumer via a biometric identification device;    receiving, at the approval station, an identification code proffered by the consumer;    assembling, at the approval station, transaction data, wherein the transaction data includes at least a request for cash back;    sending from the approval station to the central database, at a second location remote from the first location, the identification code proffered by the consumer and the transaction data;    comparing, at the central database, the proffered identification code to identification codes stored in the central database;    determining, at the central database, whether the proffered identification code matches an identification code stored in the central database;    selecting, at the central database, potential matching registered biometric data based on the identification code;    receiving, at the approval station, the potential matching registered biometric data from the central database;    determining, at the approval station, whether a comparison of biometric data based on the sampled biometric characteristic with the potential matching registered biometric data indicates a match; and    in the event that a match is indicated and the transaction data complies with transaction rules, including at least one or more cash back parameters, approving, at the approval station, the transaction.