Registers – Systems controlled by data bearing records – Credit or identification card systems
Reexamination Certificate
2002-05-23
2004-10-19
Hess, Daniel A. (Department: 2876)
Registers
Systems controlled by data bearing records
Credit or identification card systems
C235S379000, C705S044000, C705S052000, C705S067000, C705S072000
Reexamination Certificate
active
06805289
ABSTRACT:
BACKGROUND OF THE INVENTION
1. Field of the Invention
The present invention relates to a streamlined system for the prepaid access to payment-based websites on the Internet and for use in payment in electronic commerce transactions. More particularly, the present invention relates to a prepaid card payment system and method enabling anonymous electronic commerce transactions, enabling e-commerce merchants, through the system's middleman, to accept as payment not only the system's proprietary prepaid cards, but also the prepaid cards of other third party card issuers that the system middleman has relationships with, and also including, in one embodiment, user age restrictions included in the prepaid cards for use in accessing payment-based adults-only websites.
2. Description of Related Art
Prepaid card services are well-known in the art. Such cards are typically purchased from vending machines or point of sale racks and displays and the like and come in fixed value increments, for example, $10, $20 and $50. A $10 card provides the customer with a certain amount of access time, such as with prepaid long distance telephone cards; the $20 card provides twice that amount, and so forth. Because the charges are limited to the card's face value, neither the customer nor anyone who obtains possession of the card can run up a large bill. These cards can be used anonymously, as purchaser information is typically not required to be provided when purchasing such cards.
Several examples of Internet payment systems already exist. Many of these systems are account-based; that is, both the customer and the merchant have accounts with the system. Thus, there is no provision for anonymity. Privacy is an important issue which is only partially addressed in some systems. Security is critical to all Internet payment systems, and the encryption techniques adopted vary widely.
While not an exhaustive list, examples of Internet payment systems include DigiCash of Amsterdam, The Netherlands, CyberCash of Reston, Va., and systems proposed by various banks and credit card companies. DigiCash provides a close analogue to real cash in the sense of providing unconditional anonymity for the user through a novel cryptographic technique known as “blind signatures.” CyberCash offers both a credit card and a money payment service. Transactions using CyberCash are passed directly to a real bank.
In operation of such prior art systems, cards are typically batch-activated by the card provider in a limited number of predetermined values. A customer purchases one of these pre-activated cards by paying a fee. The card typically includes a predetermined identification code (which may be obscured by a scratch off material). To use the card, the customer accesses the service, enters the identification code (typically obtained from the back of the card), enters the desired number or address information for the desired destination to be contacted and access begins. When the designated value has been used, access is automatically terminated.
Prepaid card customers can obtain through their prepaid cards, currency for e-commerce transactions without credit and without payment of monthly bills. Prepaid cards are mainly bought by individuals who don't have easy credit access, such as students, full-time mothers, retired seniors and individuals without a bank account. The cards themselves are easy to use.
Use of a prepaid stored-value card as payment for Internet transactions provides numerous advantages. For example, a prepaid stored-value card can be used in small transactions where credit cards or checks would be unrealistic. Other advantages to the consumer include enhancing the value of a prepaid stored-value card by enabling access to both real and Internet merchant environments with a single card.
In addition, use of a prepaid stored-value card is extremely advantageous for small dollar amount transactions. Often, consumers are reluctant to use, and merchants are reluctant to accept, credit card transactions for small dollar amounts. For the consumer and the merchant dealing with many of these small transactions can be a bookkeeping headache and may not be worth the expense. A merchant may also be unlikely to accept a credit card for a small dollar amount transaction because of the service fees per transaction. By permitting the use of a prepaid stored-value card to make purchases over the Internet for small dollar amounts, a merchant may very well be able to begin charging for goods and/or services that he had been providing for free in the past. Prepaid stored-value cards also address the concern of many e-commerce purchasers regarding supplying their personal and credit card information via the Internet to websites that may have little or no security and which may not safeguard or may misuse such information.
Despite the existence of prior art systems and methods such as those identified above, many sellers offering goods or services through Internet, especially very low price articles, find it difficult to sell their products, as they can not find a simple secure and practical way of receiving the payment from their potential customers. They also typically have to establish a separate relationship with each card issuer, each with its own payment processing protocols, making the use of such systems complicated.
SUMMARY OF THE INVENTION
The present invention provides a simple, easy to use prepaid card system and method for electronic commerce and enables e-commerce merchants, through one relationship with a middleman, to accept as payment prepaid cards from multiple third party issuers.
The present invention utilizes a middleman secure host server including a computer and terminals that handle the payment transaction processing and data transmission to and from transaction participants. Also communicating with the middleman secure host server is the cardholder's computer and a merchant server. In one embodiment of the invention, the merchant server includes a web site and the merchant has contracted with the system middleman to accept prepaid stored-value card payments for goods and/or services purchased over the Internet. Thus, a consumer may use his or her prepaid stored-value card at a client terminal location in order to purchase goods and/or services from a remote merchant server. The Internet provides the routing functionality among the cardholder terminal, merchant server and middleman server.
From the cardholder's perspective, the present invention operates in a similar fashion as using a stored-value card in a real merchant environment. The transaction process is similar to the interaction between a stored-value card and a service payment terminal in a face-to-face merchant environment, but with functionality distributed across the Internet between the cardholder, the merchant server advertising the merchant's wares, the middleman server that manages the payment transaction processing for multiple e-commerce merchants and multiple third party prepaid card issuers in addition to the system's proprietary prepaid card, via a secure intranet. All of these entities may be physically remote from one another with router functionality being provided by the Internet and the intranet established between the middleman secure host server, the e-commerce merchant, the card issuer and the e-commerce merchant's bank.
In operation, when browsing merchant store fronts on the Internet and deciding to purchase goods and/or services, the cardholder selects the prepaid stored-value card payment option offered by the merchant. The cardholder then enters his or her card password or code. The cardholder's balance and purchase amount are preferably verified by the card issuer and preferably displayed, the transaction is either approved or rejected, and the amount is deducted from the value stored on the stored-value card.
In addition, once a value has been deducted from the stored-value card, the merchant has been informed, and the card issuer's server has recorded the transactio
Almenara Jose
Noriega Eduardo
Greenberg Traurig P.A.
Hess Daniel A.
Valcarrel, Esq. Manuel R.
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