Online payer authentication service

a technology for authenticating the identity of payers and online payments, applied in the field of online payment authentication services, can solve the problems of increasing the perception that buying goods and services online is not safe and secure, increasing the processing expenses of exception items, and increasing fraud for both merchants and cardholders. , to achieve the effect of reducing chargebacks, frauds, and exception item processing

US20080301056A1Inactive Publication Date: 2008-12-04WELLER KEVIN D +6
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Patent Information

Authority / Receiving Office
US · United States
Patent Type
Applications(United States)
Current Assignee / Owner
Publication Date
2008-12-04
Estimated Expiration
Not applicable · inactive patent

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Abstract

A payment authentication service authenticates the identity of a payer during online transactions. The authentication service of the present invention allows a card issuer to verify a cardholder's identity using a variety of authentication methods, such as the use of passwords. Also, the only system participant requiring a certificate is the issuing financial institution. One embodiment of the invention for authenticating the identity of a cardholder during an online transaction involves querying an access control server to determine if a cardholder is enrolled in the payment authentication service, requests a password from the cardholder, verifies the password, and notifies a merchant whether the cardholder's authenticity has been verified. In another aspect of the invention, a chip card and the authentication service independently generate cryptograms that must match in order for the service to verify that the correct chip card is being used by the cardholder.
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Description

[0001] This application claims priority of U.S. provisional patent application No. 60 / 199,727, filed Apr. 24, 2000 entitled “Visa Payer Authentication Service Description,” which is hereby incorporated by reference.FIELD OF THE INVENTION

[0002] The present invention relates generally to financial transactions, and more specifically to authenticating the identity of payers during online transactions.BACKGROUND OF THE INVENTION

[0003] During a payment transaction using a payment card (e.g., a credit, debit, or stored value card), it is important to verify a cardholder's ownership of an account to avoid a variety of problems, such as unauthorized use. Payer authentication is the process of verifying a cardholder's ownership of an account. The most common method to authenticate a cardholder's ownership of an account occurs routinely at a point of sale during what is called a “card present” transaction. A card present transaction involves a merchant's representative taking the cardholder's ca...

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Embodiment Construction

[0031]The present invention will now be described in detail with reference to a few preferred embodiments thereof as illustrated in the accompanying drawings. In the following description, numerous specific details are set forth in order to provide a thorough understanding of the present invention. It will be apparent, however, to one skilled in the art, that the present invention may be practiced without some or all of these specific details. In other instances, well known operations have not been described in detail so not to unnecessarily obscure the present invention.

[0032]To begin with, a high-level description of the authentication process used by the Payer Authentication Service (PAS) will be provided. Later in this disclosure, a more detailed description of the authentication process and other processes, such as system setup and customer registration and specific message flows, will be provided. As explained in the previous sections of this disclosure, PAS is designed to aut...