Secure and efficient payment processing system

Abstract

A method of processing commercial transactions carried out over the Internet ( 50 ) between account holders ( 30 ) and participating merchants ( 20 ) includes receiving a purchase request ( 352 ) of a buyer from a participating merchant ( 20 ) indicating that the buyer desires to carry out a transaction with the merchant ( 20 ). The transaction includes the buyer purchasing one or more selected items ( 340 ) from the merchant ( 20 ). The buyer is authenticated ( 310 ) as an account holder ( 30 ) and transaction fulfillment data ( 362 ) is established. The transaction fulfillment data ( 362 ) indicates a delivery destination for the selected items. In turn, the transaction fulfillment data ( 362 ) is communicated to the participating merchant ( 20 ), and transaction details ( 384 ) from the participating merchant ( 20 ) are received. The transaction details ( 384 ) include a cost for the selected items. Thereafter, completion of the transaction is authorized ( 390 ) and an authorization code ( 392 ) established therefor is communicated to the participating merchant ( 20 ).

Having thus described the preferred embodiments, the invention is now claimed to be: 
     
         1 . A method of processing a transaction carried out over a network between a financial account holder and a participating entity, the method comprising:
 receiving a purchase request of a buyer from the participating entity indicating that the buyer desires to carry out a transaction with the entity, the transaction including the buyer purchasing one or more selected items;   authenticating the buyer as the financial account holder via a processor;   receiving transaction details from the participating entity, the transaction details including a cost for the selected items;   authorizing completion of the transaction and establishing an authorization code therefor; and,   communicating the authorization code for the transaction to the participating entity.   
     
     
         2 . The method according to  claim 2 , wherein the transactions are at least partially carried out over a public network. 
     
     
         3 . A method of processing transactions carried out over a network between account holders and participating entities, the method comprising:
 receiving a purchase request of a buyer from a participating entity indicating that the buyer desires to carry out a transaction with the participating entity, the transaction including the buyer purchasing one or more selected items;   authenticating the buyer as an account holder via a processor;   receiving transaction details including one or more terms for the purchasing the selected items;   authorizing completion of the transaction and establishing an authorization code therefor;   communicating the authorization code for the transaction to the participating merchant;   obtaining settlement information from the participating entity, the settlement information including the authorization code and transaction details for the completed transaction;   confirming that the transaction details corresponding to the authorization code received with the settlement information are within a desired tolerance; and,   communicating the confirmed settlement information to a funding source to effect reimbursement of the participating entity and billing of the account holder.   
     
     
         4 . The method according to  claim 3 , wherein obtaining the settlement information includes automatically capturing the settlement information from the participating entity upon an indication of delivery of the selected items. 
     
     
         5 . The method according to  claim 4 , wherein authenticating the buyer as an account holder includes:
 synchronizing a token with a periodically changing non-predictable code;   providing the account holder with the token, the token displaying the periodically changing non-predictable code;   receiving a code communicated by the buyer; and, comparing the received code with the periodically changing non-predictable code to authenticate the buyer as the account holder when the received code matches the periodically changing non-predictable code.   
     
     
         7 . The method according to  claim 3 , wherein authenticating the buyer as an account holder includes:
 synchronizing a token with a periodically changing non-predictable code;   providing the account holder with the token, the token displaying the periodically changing non-predictable code;   receiving a code communicated by the buyer; and, comparing the received code with the periodically changing non-predictable code to authenticate the buyer as the account holder when the received code matches the periodically changing non-predictable code.   
     
     
         8 . The method according to  claim 3 , wherein authenticating buyer precedes receiving a purchase request. 
     
     
         9 . The method according to  claim 3 , wherein the transactions are at least partially carried out over a public network. 
     
     
         10 . A system for processing a transaction between a financial account holder and a seller over a network, the system comprising:
 a coordinator server that receives a purchase request of a buyer from the seller indicating that the buyer desires to carry out a transaction with the seller, the transaction including the buyer purchasing one or more selected items;   authenticates the buyer as the financial account holder; receives transaction details from the seller, the transaction details including a cost for the selected items; authorizes completion of the transaction and establishing an authorization code therefor; and communicates the authorization code for the transaction to the seller; and   a coordinator database that stores data relating to the transaction.   
     
     
         11 . The system according to  claim 10 , wherein the transactions are at least partially carried out over a public network.