Late binding token in system and method for verifying intent in a card not present transaction

Abstract

A system for verifying intent in a card not present transaction is provided. The system includes a late binding token that is distributable to consumers without necessarily being bound to an account. The system also includes a client software that locates a token server configured to facilitate managing and communicating with the late binding token. The system also includes a protocol concerning how to build a verifiably secure structured proposal that carries an offer to the consumer through the client software.

Description

RELATED APPLICATION[0001]This invention claims priority to U.S. Provisional Patent Application Ser. No. 60 / 294,452, filed May 30, 2001.TECHNICAL FIELD[0002]The methods, systems, application programming interface (API), signals, and computer readable media described herein relate generally to computer programming, and more particularly to verifiably, securely, conducting card not present transactions.BACKGROUND OF THE INVENTION[0003]Consumers use credit cards, debit cards, and other cards to make purchases. Increasingly, consumers use these cards in electronic commerce conducted, for example, over the Internet. But conventional credit cards are not ideally suited for transactions where the card is not present at the merchant's site. Thus, “smart cards” or integrated circuit cards are growing in popularity.[0004]An integrated circuit card (IC) has, for example, a processor, a data input / output port controlled by the processor to receive and output data, a random access memory (RAM), a...

AI Technical Summary

Benefits of technology

This approach enhances the confidence in consumer acceptance and transaction security, reducing the risk of fraud and increasing regulator and financial institution trust in card not present transactions by ensuring that consumer intent is verifiably secure and legally binding.

Problems solved by technology

But conventional credit cards are not ideally suited for transactions where the card is not present at the merchant's site.

Even though IC cards can simplify and improve electronic transactions, they can also introduce security and verifiability of intent problems into electronic transactions, especially “card not present” transactions.

However, the '551 patent, and others like it, typically bind the smart card to accounts, applications, and so on at an early time in the life cycle of the card, which limits the use of this type of IC card.

These types of smart cards, while potentially more secure than cash, may not provide assurances adequate to carry out a card not present transaction across an insecure medium like the Internet.

While adding an application to a smart card after issuance increases the usefulness of the smart card, it may not facilitate using the smart card in card not present transactions in a way that provides adequate assurances that an offer was presented correctly, accepted in a verifiable manner, and transmitted securely to the offeror and / or other third party verifiers.

However, the '723 patent, like the other patents described herein, does not describe and / or suggest functionality in a smart card that facilitates producing a level of trust in a transaction adequate to support verifiably trustworthy card not present transactions.

Thus, this conventional point of sale credit transaction includes significant risks for all parties involved in the transaction.

Financial institutions may be reluctant to accept risk of fraud loss in card not present transactions, so the merchant typically must bear greater risk.

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