System and Method of Recurring Payment Transactions

Abstract

A system and method for a recurring payment transaction is provided. A system of authenticating a recurring payment transaction may include an adaptive payment server that includes one or more processors configured to retrieve account information, which may include a payment date and an identification of a communication device of a payor. The adaptive payment server may initiate a communication to the communication device on or before the payment date and communicate at least a portion of the account information to the communication device. The adaptive payment server may receive, from the communication device, approval information and determine whether to initiate payment of the recurring payment transaction using the approval information. The adaptive payment server may initiate payment of the recurring payment transaction based on the determination.

Description

CROSS-REFERENCE TO RELATED APPLICATIONS[0001]This application claims priority to U.S. Provisional Patent Application Ser. No. 61 / 091,895 entitled “Enable PIN Debit Transactions at Internet Based Online Merchants by Using a Combination of IVR and Hardware Security Module,” filed on Aug. 26, 2008 and U.S. Provisional Patent Application Ser. No. 61 / 186,564 entitled “Payment Authentication Services,” filed on Jun. 12, 2009 and is related to co-pending U.S. patent application Ser. No. ______ entitled “System and Method of Secure Payment Transactions,” filed concurrently herewith, all of which are hereby incorporated by reference herein in their entireties.FIELD OF THE INVENTION[0002]The invention relates to processing recurring payment transactions using an Interactive Voice Response system combined with a Hardware Security Module to prompt for, retrieve, and encrypt a Personal Identification Number for secure payment transactions.BACKGROUND OF THE INVENTION[0003]Electronic payment syste...

AI Technical Summary

Benefits of technology

[0009]According to various implementations of the invention, various systems and methods may address these and other drawbacks of existing systems. According to various implementations of the invention, various systems and methods may facilitate secure payment transactions by receiving first identification information such as, for example, a payment card (e.g., credit card or debit card) number, for a payment transaction over the Internet, identifying a payor based on the first identification information, and calling the payor via an automated Interactive Voice Response (IVR) sys...

Problems solved by technology

However, retailers and recurring billers, according to various implementations of the invention, who maintain personal details, bank account information and other payment information, are vulnerable to hacking or other security breaches which cause the unlawful distribution of identify and financial information to the detriment of consumers, retailers and financial institutions causing financial harm to these entities and undermining trust in the payment system.

However, these systems are not applicable for Internet purchases or recurring bill payments by payment card and fail to adequately secure payment transactions.

However, even though existing PIN-based authentication systems provides enhanced security as compared to signature or other existing authentication systems, PIN-based authentication systems have disadvantages.

Furthermore, online electronic retailers (Etailers) may not take advantage of PIN-based authentication because of the security risk associated w...

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