Method and apparatus for secure electronic commerce

Abstract

One embodiment of the present invention provides a system that facilitates secure electronic commerce. The system operates by first providing a consumer with a file of security data relating to an account maintained by a financial institution. The consumer then creates a financial transaction with a merchant using security data from the file to protect the financial transaction. This financial transaction is structured to prevent the merchant from knowing the account number for the account. Next, the merchant validates that the financial institution identified by the financial transaction is acceptable using security data from the file. The merchant then requests that the financial institution authorize the financial transaction. Upon receiving authorization to complete the financial transaction, the merchant completes the financial transaction. Finally, the merchant notifies the financial institution that the financial transaction is complete.

Description

BACKGROUND [0001] 1. Field of the Invention [0002] The present invention relates to electronic commerce. More specifically, the present invention relates to a method and an apparatus to facilitate secure electronic commerce. [0003] 2. Related Art [0004] Electronic commerce across the Internet is rapidly becoming a mainstay of the business world. A consumer wishing to make a purchase on the Internet can use a web browser to select the desired merchandise, and then to offer payment for the merchandise. [0005] While shopping through a web browser is convenient, paying for the merchandise presents problems. Payment can be made using a credit card, a debit card, or an electronic check. Typically, when making payment with any of these methods, the consumer reveals the account number to the merchant so that the merchant can debit the account. Since the Internet is not secure and subject to eavesdropping, the account number is typically sent in encrypted form using a secure socket layer (SS...

AI Technical Summary

Benefits of technology

"The present invention provides a system for secure electronic commerce. The system involves creating a file of security data containing a consumer's private key, public key, and identifiers of the financial institution and merchant. The consumer then uses this file to protect financial transactions with the merchant. The merchant validates the financial institution and requests authorization to complete the transaction. The financial institution verifies the validity of the transaction and determines if it exceeds the account's limit. The system ensures secure and efficient electronic commerce."

Problems solved by technology

While shopping through a web browser is convenient, paying for the merchandise presents problems.

The database then becomes a target for attack, and if the database is not secure, can lead to compromise of the account number to an unscrupulous person.

Consequently, many consumers are uncomfortable with revealing their account numbers over the Internet for fear of having their account number stolen and used illegally.

The same problem exists to some degree at a point-of-sale (POS) terminal located at a cash register at the point of sale.

The account number can be learned by the merchant and, if not adequately protected, compromised.

This leaves the financial institution open to fraud.

If the consumer later denies making the transaction, it can be difficult for the merchant to prove otherwise.

The encryption or decryption algorithms need not be uniform and / or the same across all consumers or merchants.

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