Method for performing a transaction over a network

Abstract

A method for performing a transaction between a legal entity A who has an approval to perform such transaction, and a legal entity B over a network, the transaction being initiated by the legal entity A, wherein the legal entity A, to verify the approval to the legal entity B, associates the transaction with a verification insignia, the verification insignia being a unique transitory insignia provided to the legal entity A by a legal entity C who thereby guarantees that the legal entity A has the approval, the provision of the unique transitory insignia to the legal entity A by the legal entity C being conditioned by the legal entity A providing to the legal entity C a secret identification code confirming the identity of the legal entity A to the legal entity C, the legal entity B validating the unique transitory insignia, and upon positive validation, and only then, accepts the transaction, and the transitory unique insignia being invalidated substantially immediately after the validation.

Description

FIELD OF THE INVENTION[0001]The present invention relates to a method for performing transactions over a network and a method of verifying the approval of a customer to perform such a transaction.[0002]The present invention is primarily concerned with secure payment over an electronic network.DESCRIPTION OF THE PRIOR ART[0003]Generally speaking, two types of Internet transactions take place. One type relates to transactions wherein a relation exists between the parties of the transaction, e.g. customer logs into a host side where a specific service can be traded. By means of the login procedure, the customer is identified towards the service provider and the service provider can then, based upon the identification chose if the transaction should be carried out or not. Due to the existing relationship between the parties, payment related to the transaction could be arranged either prior to the transaction or after the transaction. Another type relates to transactions wherein no speci...

AI Technical Summary

Benefits of technology

"The present invention aims to provide a simple, easy and cheap solution to the security problem of international interchange transactions over electronic communication channels. The invention proposes a method where a legal entity A verifies the approval to perform a transaction with another legal entity B over a network, by associating the transaction with a unique transitory insignia provided to A by a legal entity C who guarantees A has the approval. The unique insignia is only valid for the specific transaction and cannot be used for other purposes. The invention also includes a method where a customer or a legal entity A sends a secret identification code to a financial partner or a legal entity C who then sends the unique insignia to A. This ensures that the unique insignia is only valid for the specific transaction and cannot be abused. The invention provides a solution to the problem of abusing the payment card number and expiry date by sending it over a network. The unique insignia serves as a verification of the ability of the customer to fulfill the transaction, e.g. to pay an amount of money. It can also serve as a verification of the identity of the legal entity A, or at least to verify that A is in the possession of an agreement with the financial partner. The invention proposes a simple and secure method to verify the approval of a legal entity in a transaction."

Problems solved by technology

However, It has been found that the use of these cards is connected with a certain risk of fraud.

The existing solutions are characterised by high complexity, which makes the solutions inconvenient and expensive to implement, and as a result, the users of payment cards are reluctant to use the cards on the Internet.

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