throbber
rffi\v
`
`3’7. \
`
`METHOD OF USING PERSONAL DEVICE WITH INTERNAL BIOMETRIC
`
`IN CONDUCTING TRANSACTIONS OVER A NETWORK
`
`SONYNJ 3.0-009
`
`BACKGROUNo OF THE INVENTION
`
`5
`
`1.
`
`Field» Of The Invention
`The present
`invention relates to Va method and'
`
`is
`
`10
`
`system for authorizing a transaction between two parties
`
`over a network and, more particularly,
`
`to authorizing a
`
`transaction over the network when an authorization code
`
`the
`entity,‘
`authorizing
`an
`by
`beenv received
`has
`being produced by 1a fingerprint
`authorization code
`identification device
`in
`response
`to
`comparing f'afi
`
`fingerprint
`
`of
`
`one
`
`of
`
`the parties
`
`to
`
`a
`
`stored
`
`
`
`as
`
`4
`
`Z.‘I313::E-“
`
`
`fingerprint in the device.
`
`‘
`
`’15
`
`2.
`
`”Related Art
`
`As
`
`the use
`
`of networks,
`
`for
`
`example‘
`
`the,
`
`expanding
`become more prevalent, ‘ an\ ever
`Internet,
`quantum'of electronic commerce will be conducted between
`'users over
`these networks.
`'Typically,
`e. consumer of
`goods
`andfor
`services "electronically ' connects ito a
`
`20
`
`provider of goods and/or services over a network,
`
`for
`
`examplef by way of
`
`a website.
`
`Using known Website
`
`browser software,
`
`the consumer may review and select
`
`25
`
`goods or
`
`services
`
`and
`
`request
`
`that
`
`such goods or-
`
`services be delivered to a specified address.
`
`7/
`
`VISA - EXH1BIT 1116
`
`VISA - EXHIBIT 1116
`
`

`

`SONXNJ 3.0-009
`
`The provider ofi goods or services, of course,
`
`expects to be paid for any goods or services requested
`
`'by the consumer.
`
`Typically,
`
`this is accomplished by
`
`asking the consumer
`
`to ,enter his or her credit card
`
`'number and expiration date.
`
`Sometime thereafter,
`
`and
`
`most likely after the consumer has disconnected from the
`
`provider's website,
`
`the
`
`provider
`
`telephones
`
`an
`
`authorizing entity (e.g.,
`the originator or managing
`entity) of the credit card and requests authorization to
`complete the transaction.
`In particular,
`the provider
`
`of
`goods
`number,
`amount
`
`transmits
`the credit
`and/or
`services
`card
`consumer name,
`expiration date,
`and purchase:
`to
`the ‘ authorizing
`entity
`and
`awaits
`
`The authorizing entity accesseS'
`authorization.
`the‘
`consumer's credit card account
`and verifies that
`the
`consUmer
`is
`in ggood standing and that
`the purchase.
`amount will not cause the consumer's credit balance to“
`
`exceed ,his or her
`entity's review of,
`
`‘ Ifi\ the authorizing
`limit.
`icredit
`the
`consumer's credit account, is
`
`favorable,
`
`-then authorization is ~transmitted to the
`
`provider of
`
`.goods
`
`and/or
`
`services
`
`to complete
`
`the
`
`transaction with the consumer.
`
`' Asmthe provider of goods and/or services never
`
`actually sees
`
`the
`
`consumer
`
`and'
`
`cannot
`
`assess,
`
`the
`
`.consumer
`
`in -terms of whether or .not
`
`the consumer
`
`is
`
`attempting to fraudulently utilize the credit card, both
`
`the. provider
`
`of
`
`.goods
`
`and/or
`
`services
`
`and
`
`the
`
`10
`
`
`
`HLU!I3...“
`
`i5
`
`i.
`
`“.11I!"
`
`
`
`
`
`20
`
`25
`
`

`

`,c‘x
`
`_
`
`.,l_.
`
`SONYNJ 3.0-009
`
`authorizing entity (originator of the credit card) must
`
`assume that
`
`the consumer is the authorized user of
`
`the
`
`'credit card.
`
`It is only when the authorized user of a
`
`lost or stolen credit card calls the authorizing entity
`
`(or its representative) to report the lost and/or stolen
`
`card,
`
`that
`
`fraudulent uses of
`
`the credit card may be
`
`avoided.
`
`Similar
`
`problems
`
`occur when
`
`goods
`
`and/or
`
`-services are requested and confirmed by a user of
`
`the
`
`provider's
`by .connecting with 'the
`simply
`network
`For example, when a provider of goods and/or
`website.
`requires
`services
`an
`initial
`registration with la:
`particular consumer that authorizes billing the consumer-
`
`for use of
`the website, accidental
`(or fraudulent) use.
`of the website is likely by non-authorized users. More
`particularly,
`a parent
`(authorized user) may contract‘
`with a provider of goods and/or services to permit
`the”
`
`The terms
`to utilize the‘website.
`authorized consumer
`that
`_the
`of
`the contract
`(or
`registration) may‘ be
`consumer‘s -credit card will be charged for an amount
`representing Vuse
`of
`the website
`by
`the
`authorized
`
`consumer
`
`(e.g., obtaining information from the website
`
`the only way that
`or purchasing goods). Unfortunately,
`the provider of goods and/or services knows that a user
`
`of the website is an authorized consumer is by way of an
`
`identification number (e.g., password etc:) given by the
`
`authorized consumer or automatically transmitted by the
`
`uiktfimih
` a
`
`a
`
`10'
`
`15
`
`20
`
`25
`
`

`

`éONYNJ 3.0-009
`
`authorized consumer's personal computer.
`
`Thus, any user
`
`of
`
`the
`
`authorized consumer's personal
`
`computer who
`
`' obtains
`
`the
`
`password A(if
`
`employed) may
`
`aCCGSS' the
`
`website and incur charges withOut
`authorized consumer.
`
`5
`
`the knowledge of the
`
`
`
`5
`it
`:
`
`gm
`
`10
`
`1%
`
`20
`
`‘ Accordingly,
`
`there is a need in the art for a
`
`new method and system for facilitating and authorizing
`
`network -which
`Ia
`over
`between parties
`transactions
`provides all parties to the transaction with confidence
`that
`the initiator of
`the transaction is authorized to
`
`enter into the transaction.
`
`SUMMARY OF THE INVENTION
`
`In order to overcome the disadvantages of the.
`7‘
`the present
`invention provides a method of_
`prior art,
`conducting a commercial
`transaction between a customer
`
`and a provider of goods or services over a network.
`
`‘The‘
`
`method includes the steps of:
`I
`N
`>5
`fingerprint
`.7
`providing the
`customer with \a,
`identification
`device.
`which
`produces
`'an
`authentication code’ when
`a
`fingerprint
`ofv
`the
`
`customer matches a- stored fingerprint within -the
`fingerprint identification device;
`maintaining an electronic site‘on the network
`
`25
`
`over which
`
`the
`
`customer may
`
`request
`
`goods
`
`or
`
`services from the provider of goods or services;
`
`

`

`iAmmo’cx...
`
`that
`requesting
`the
`by
`authentication'
`activating
`identification device;
`
`éONYNJ 3.0-009
`
`customer
`provide
`the
`fingerprint
`
`Ireceiving at least the authentication code and
`
`a account number of the customer at the provider of
`
`goods
`
`or
`
`services
`
`over
`
`the
`
`network
`
`froml
`
`the
`
`fingerprint identification device;
`
`transmitting the authentication code and the
`account
`number
`from the provider. of
`goods or
`
`services to a managing entity of
`the
`network
`in encrypted form,
`
`the account over
`and
`requesting
`
`authorization to complete the transaction; and
`
`‘
`
`the managing
`transaction if
`completing the
`entity of the account provides the authorizationfi
`
`Preferably,
`
`the stored fingerprint
`
`is in an
`
`encrypted format and at least.one of the authentication,
`code and account number are received over the nEtnorh_
`in an encrypted form.
`
`5
`
`1 0
`
`‘ ~s...
`
`”rm—d
`
`..
`
`15
`
`2"“:
`Rd
`. ‘?‘té
`LE
`gasz
`k?
`ii
`E=é
`3.;
`55
`as:
`he
`
`m;
`{E
`”a
`as:
`2‘“:
`‘ué
`
`.20
`
`the present
`The method of
`contemplates permittingv the' customer
`
`.invention._also
`to access
`the
`
`account.
`
`The steps according to this aspect of
`
`the'
`
`invention
`
`include:
`
`(establishing
`
`an
`
`electronic
`
`connection over the network between the customer and an
`managing entity of
`the account;
`requesting that
`the
`
`25
`
`user provide authentication to the managing entity of
`
`the
`
`account
`
`by
`
`activating
`
`the‘
`
`fingerprint
`
`identification
`
`device;
`
`receiving
`
`at
`
`least
`
`the
`
`5
`
`

`

`SONYNJ 3.0-00‘9 7
`
`authentication code
`and the
`account
`number of
`the
`customer at the managing entity of the account over the
`network from the fingerprint identification device; and
`
`permitting access to_the account if the authentication
`code is valid.
`
`5
`
`v the customer is permitted to at
`
`least‘one of
`
`‘(i)
`
`transfer funds from the account; and (ii) deposit.
`
`funds into the account, when the managing entity of the
`
`account has permitted access thereto.
`
`According to another aspec
`10 4MQ‘
`the c stomer is permitted access to an electronic safety-
`deposit box.
`The steps according' 0 this aspect of the,
`
`invention further
`include estab ishing an electronic
`
`of the invention,
`
`
`
`connection over the network bet een the customer and a'
`“is linmanaging entity of
`the electro ic safety deposit box;
`reguesting that
`the customer
`lrovide authentication to‘
`
`the managing entity of the ele tronic safety deposit bon‘
`
`identification' device;
`by activating the -fingerpr‘ t
`receiying at
`least
`the
`a thentication‘ code
`at
`,the
`
`20
`
`emanaging entity of
`
`the e ctronic .safety deposit box,
`
`
`identification
`the netWork from 't ev fingerprint
`over
`device; and permitting a case to the electronic safely
`
`deposit box if at least .he authentication code is valid
`r
`
`According
`
`to
`
`yet
`
`another
`
`aspect
`
`of
`
`the
`
`25
`
`invention,
`
`the
`
`customer
`
`is permitted to conduct
`
`‘an
`
`investment
`
`'transaction over
`
`the network.
`
`The
`
`steps
`
`according to this \aspect of
`
`the
`
`invention include:
`
`

`

`somd 3.0»009
`
`establishing} an electronic connection over
`
`the network
`
`between the customer and a settlement bank over which
`
`‘ the
`
`investor may
`
`provide
`
`investment
`
`instructions;
`
`requesting that
`
`the customer provide authentication to
`
`5
`
`the
`
`settlement
`
`bank
`
`by
`
`activating the‘
`
`fingerprint
`
`the
`least
`at
`receiving
`device;
`identification
`the
`the settlement ‘bank over
`authentication code. at
`network
`from! the
`fingerprint
`identification device;
`
`receiving investment instructions at the settlement bank
`
`:3
`
`10
`
`over the network from the customer; and -'transmitting the
`
`
`
`,:f
`L
`
`investment instructions to a third party if at least the
`
`authentication code is valid.
`
`other objects,
`
`features,
`
`and advantages will‘
`
`become apparent to those skilled in the art in light 'of;
`
`15
`
`the description herein taken in conjunction with the
`
`accompanying drawing .
`
`BRIEF DESCRIPTION OF THE DRAWINGS
`
`‘
`
`‘\
`
`purposes ~
`the
`_ For
`64b all;
`
`inven ion, ”there are shown 3‘.
`V
`
`of
`
`illustrating
`
`the
`
`20
`
`the drawing forms which
`
`are presented preferred,
`
`it
`
`
`
`eing understood, however,
`
`that
`
`the
`
`invention is- n .t
`
`limited to the precise
`
`arrangementsvand inetrume alities shown.
`
`FIG.
`
`1
`
`is
`
`a block diagram illustrating a
`
`25
`
`preferred system for carrying out the invention.
`
`

`

`SONYNJ 3.0-009
`
`FIG. 2 is a schematic diagram of a fingerprint
`
`identification device which is connectable to a computer
`in accordance with the present invention.
`
`FIG.
`
`3
`
`is a flow diagram illustrating process
`
`steps for authorizing a transaction between a consumer
`
`and a provider of goods and/or services over a network
`in accordance with one aspect of the invention.
`
`FIG.
`4
`is
`a
`flow diagram illustrating a
`settlement sequence following the transaction process of
`FIG. 3.
`I
`
`FIG.
`
`5
`
`is a flow diagram illustrating process
`
`10
`
`‘Ela"
`”In:
`LE
`iu‘i:
`
`steps for facilitating an investment
`
`transaction over a
`
`network in accordance with another aspect of the preSEnt‘
`invention.
`I
`
`‘15MWW._~
`
`FIG.
`
`6
`
`is a flow diagram illustrating process
`
`steps for facilitating access to an electronic account,r
`
`such as an electronic safety deposit box,
`
`in accordance
`
`with another aspect of the present invention.
`”-4
`
`20.
`
`25'
`
`DETAILED DESCRIPTION OF THE INVENTION
`Reference
`is .now made
`Ito
`
`FIG.
`
`1 which
`
`illustrates a block diagranl of
`
`a
`
`system suitable for
`
`carrying
`
`out__the
`
`present
`
`invention.
`
`The
`
`system
`
`preferably includes a bank 10,
`
`such as‘a payor bank,
`
`settlement bank, originating bank, etc.
`
`The payor bank
`
`10 preferably includes a processing unit 22
`
`(such as a
`
`central
`
`computer,
`
`distributed
`
`computer,
`
`networked
`
`
`
`

`

`L‘A
`
`SONYNJ '3 . 0-009
`
`computer,
`
`etc.)
`
`in‘ communication with one
`
`or more
`
`interface units
`
`20‘
`
`(for example,
`
`network interfaces,
`
`,A wireless
`
`interfaces,
`
`network
`
`servers,
`
`etc.).
`
`The
`
`processing unit
`
`22
`
`is also in ‘communication with a-
`
`plurality of back office and/or electronic functional
`units,
`including,
`for example, one or more electronic
`
`safety deposit boxes 24, bank accounts 26,
`
`settlement
`
`credit/debit accounts 28,
`
`lease accounts 30, and finance
`
`accounts 325
`
`Each of
`
`the functional units preferably
`
`‘10
`
`includes one or" more databases containing information
`
`concerning
`
`the
`
`accounts
`
`‘thereof
`
`and .the
`
`customers
`
`ut'lizing them.
`
`Sfliébfli>gy7
`
`Preferably,
`
`bank
`
`10
`
`issues;
`
`_
`
`‘
`
`a’
`
`£3
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`Lfi
`5.;
`
`éfi
`£32;5
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`
`20
`
`25
`
`the‘ payer
`
`plurality of fingerprint identif'cation devices 50 toia
`
`52.
`
`e
`
`ard, a cellular phone, and
`a universal serial bus stick
`I
`
`[It is preferred that each‘
`
`identification evice 50 is associated with
`fingerprint
`one or more of the functional accounts of the payer bank
`10.
`For lexample,
`the, payor bank
`10 may
`issue a
`
`~-plura1ity
`
`of
`
`customers
`
`The
`
`fingerprintv
`
`identification devices may
`
`t
`
`any' of
`
`an number of*
`
`forms, e.g., a cardr a smart
`
`fingerprint
`
`identificat' n device 50
`
`to a customer 52
`
`which is ,associated w th a bank account 26.
`
`That
`
`customer
`
`52
`
`may
`
`e
`
`issued
`
`another
`
`fingerprint
`
`identification devic
`
`.
`50 associated with an electronic.
`
`safety deposit hox
`
`the payer
`
`bank
`
`1
`
`.
`
`It is understood, however,
`
`that
`
`may‘
`
`issue
`
`a asingle Vfingerprint
`
`
`
`
`
`
`)0
`
`
`

`

`' rm‘
`
`/‘\
`
`
`
`SONYNJ 3.0-009
`
`identification device 50 whi h is associated with both
`
`the bank account 26.and elec ronic safety deposit box 24
`(and any other
`functional account) without departing
`
`from the Scope of the 'inve tion.
`
`With reference to FIG.
`5 (jq‘fiflq
`ident'fication device 50 is prefer
`
`
`,
`
`ly in the form. of a
`thin box which contains information about the
`
`the,
`
`fingerprint
`
`card or
`
`owner of
`
`the device,
`
`the pay r bank,
`
`the functional
`
`anminnurumLnuni:
`
`"u
`
`E:IL.“
`
`in3;...1‘1$3..In;
`
`account number, etc.
`device
`50
`includes
`
`10
`
`fingerprint sensor
`
`51
`
`The
`ingerprint
`
`a m' reprocessor,
`
`w ‘ch
`
`are
`
`identification
`- memory,
`and
`
`interconnected and
`
`programmed in order
`to compare
`a
`fingerprint of
`the"
`customer 52 with a sto d fingerprint of that customer:-
`The card-issues an
`uthorization code only when the
`
`th
`"‘15"’"""fingerprint
`of
`customer
`52 matches
`the
`stored
`
`fingerprint.
`
`Tho e skilled in the art will appreciate
`
`
`
`nown hardware suitable to implement the
`that any of the
`
`i ntification device 50 may be employed:
`fingerprint
`
`the. disclosed in U.S. Patent Application: No.
`such "as
`
`20
`
`09/466,965,. entitled AUTHENTICATION SYSTEM; FINGERPRINT
`
`IDENTIFIC TION I UNIT,
`AND AUTHENTICATION METHOD,
`the
`
`It
`
`is most
`
`pre
`
`rred 'that
`
`the,
`
`stored
`
`
`
`f rm (e.g.,
`
`
`'fing rprint and other infor
`
`tion regarding the customer
`
`52
`
`are
`
`in encrypted
`
`using‘, known
`
`PKI
`
`Technology)
`
`and that
`
`th s encrypted information remain
`
`
`
`10
`
`h
`
`

`

`SONYNJ 3.0-0‘09
`
`encrypted when transmitted from the device 50 to any
`
`other device.
`
`It
`
`is ,preferr
`
`
`
`that
`
`the fingerprint
`
`‘ identification device 50 is con ectable to a computer 54
`
`(such as a PC)
`throughan interface 56.
`The fingerprint
`identification device 50 ma
`include a connector
`57
`
`which is matable with a co responding connector 58 on
`
`the interface 56.
`
`The int
`
`
`
`face 56 preferably receives
`
`identification device
`information. from the fing‘rprint
`50 through the connectors 57, 58 and transfers at least
`some of
`this informatio
`to the PC 54 by way of
`the
`universal serial bus
`(‘US ')
`interface.
`-
`t
`
`I
`
`the device 50 may include {an
`Alternatively,
`.
`integral interface for connecting to the computer 54 by
`“way of
`the universal serial bus
`(USE).
`Thus,
`the‘
`
`identification device 50‘
`information on the fingerprint
`mayube transmitted over a network (e.g.,
`the Internet),
`from the
`computer
`54, preferably in I encrypted form.
`(e.g., using API data transfer, PKS ‘11")x'
`fingerprint
`.
`Most
`preferably,
`the \4
`identification device 50‘ is a small,
`stand alone unit
`
`(e.g.. measuring about 815 cm x 5.4 cm x 0.9 cm and
`
`weighting about 35 grams).
`
`It
`
`is most preferred that
`
`the fingerprint sensor 51
`
`include a matrix of pixels
`
`formed in .a semiconductor chip, a'12‘8 x‘192 matrix of
`
`. pixels being preferred.
`
`Any of. the known, fingerprint
`
`matching algorithms may be employed,
`
`such as pattern
`
`matching.
`
`See,
`
`for example, U.S. Patent No. 4,582,985,
`
`5
`
`10
`
`15
`
`20
`
`25
`
`11.
`
`W”
`
`

`

`E3
`it:
`
`ii
`
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`2e
`
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`2Q
`
`SONYNJ 3.0—009
`
`entitled DATA CARRIEk,
`
`the entire disclosure of which is
`
`hereby incorporated by reference.
`
`In an alternative embodiment,
`the fingerprint
`identification device may be integral-with the interface
`56 or the interface 5s may contain separate fingerprint
`
`5
`
`identification circuitry (including sensor 51) such that
`
`the device 50
`is not
`required to execute fingerprint
`recognition and matching.
`In ‘another
`alternative
`embodiment of the invention,
`the computer 54 may contain
`
`10
`
`fingerprint
`
`identification circuitry (including sensor
`
`51)
`integrally disposed therein such that neither the
`device 50 nor
`the interface 56
`is required to execute
`fingerprint recognition and matching.
`I
`1‘
`V
`
`Referring to FIG. 1, any of
`
`the customers 52.
`
`'"may conduct
`
`transactions with one or more providers of
`
`goods and/or services,
`
`such as on—line brokerages 60,.
`
`onéline goods providers
`
`62, on-line services
`
`service
`
`\\
`providers 64, on-line investment account providers 66“
`
`providers of
`
`large capital purchases ~~~68} brick and
`
`mortar merchants
`
`70
`
`or- brick and mortar
`
`service
`
`providers 72.
`*
`3 which is a
`to FIG.
`Reference is now made
`diagram‘
`illustrating process
`steps which
`are
`
`flow‘
`
`in accordance with\the invention.
`preferably carried out
`In particular,
`the process steps illustrated in FIG.
`3
`_relate to a'-commercial
`transaction conducted over
`a
`network (such as the Internet) between a customer 52 and
`
`‘... _
`15
`
`20
`
`25
`
`12
`
`{.9
`
`
`

`

`SONYNJ 3.0-009
`
`an on—line provider of goods and/or services,
`
`such as
`
`the on-line brokerage 60,
`
`the on—line goods provider 62,
`
`- or the on-line services provider 64.
`
`'At action 100, [the customer 52 connects to the
`on—line provider of goods and/or services .60,
`62 or 64
`
`5
`
`by way of
`
`the network in a manner well known to those
`
`skilled in the art.
`
`For example,
`
`the customer 52 may
`
`utilize a personal computer
`(PC)>54 (FIG.
`2)
`,to execute
`a browser program operable to electronically connect
`to
`
`10
`
`the provider of goods, and/or services:
`a website of
`Using the browser program,
`the customer 52 may view the
`
`.62“
`goods'and/or services available from the provider '50,
`or. 64 and select particular goods or services for onev-or
`more transactions (action 102).
`‘
`
`the pro ider of goods and/or
`‘15”H’Iadbqw At action 104,
`service prompts the customer 52
`o authenticate himself
`
`
`
`or herself as being authorized 0 use a. particular mode
`
`
`for
`for making remittance,
`deposit account
`(DDA), debi
`
`\
`ample, debiting a demand
`ing a credit. card account,
`
`20
`
`3
`
`25
`
`and/or
`:goods
`provider of
`In particular,
`etc.
`t
`
`
`services prompts the oust» mer 52 to authenticate himself
`
`
`consistent With
`
`knoWn
`
`such
`
`that
`
`the
`
`evice
`
`50
`
`‘\
`
`in
`
`a manner
`
`rint identification device 50.
`by activating the finge
`the c {tomer 52 _ activates the
`u@ 4"]
`" At- action 106,
`fing rprint
`identification
`
`echniques
`
`
`identific ion
`
`fingerprint
`
`‘
`
`'device
`
`compares
`
`the
`
`customer's fingerprint with a stored fingerprint. (action
`
`
`
`

`

`SOWJ 3.0—009
`103) and produces an authoriza ion code indicating that
`
`a match exists between the c stomer's fingerprint and
`
`the stored fingerprint.> At a tion'llo,
`the customer 52
`inserts the fingerprint identification device 50 into an‘
`
`S
`
`interface devices 56
`
`(FIG.
`
`).
`
`The customer
`
`52 may
`
`alternatively
`
`authenticate
`
`himself
`
`by
`
`activating
`
`fingerprint identification ircuitry in the interface 56
`
`or in the computer 54. Wh' hever technique is employed,
`
`the customer 52 preferably uses the personal computer 54
`
`10
`
`to access the Internet.
`
`ata transfer is then conducted
`
`between the 'fingerprint
`
`identification 'device 50
`
`(or
`
`identi ication circuitry if embioyed)
`other fingerprint
`and the provider of goo s andfor services 60;
`62 or 64
`
`'15
`
`(action i123.
`least
`one
`of
`
`transfer preferably includes at.
`The dati
`the
`a thentication code,
`payer
`bank
`
`identification number
`
`customer
`
`account
`
`number,
`
`and'
`
`Vdelivery' address.
`transfer are in enc
`
`20
`
`transfer
`
`M st preferably} the data of
`ted form.
`
`\,‘
`fails: to
`52
`the customer
`‘if
`At action 114,
`the authentication ocode .to thev provider of
`
`this
`
`goods and/or services 60, 62 or 64,
`then it is preferred
`that
`the provider of goods and/or services rejects the
`
`transaction" and
`
`again
`
`requests
`
`that
`
`the
`
`customer
`
`authenticate himself
`
`(action 104).
`
`fiWhen at
`
`least
`
`the
`
`2.5
`
`authentication code is received by the provider of goods
`
`and/or services 60, 62 or 64,
`
`then the processing of the
`
`transaction is permitted to continue.
`
`14
`
`t:
`
`

`

`'
`
`Siiig Ctézxfli7Am action 116,
`
`‘
`
`"
`
`SONYNJ 3.0-069
`
`the p ovider of good and/or
`
`services 60,
`62 or-fifi preferab y transfers data to the
`payer bank 10, which data pre erably includes at
`least
`i one
`of:
`the
`authenticat on
`_ code,
`payer
`bank
`
`identification number;
`'cu
`omer
`account
`‘number,
`and
`purchase amount.
`It is me t preferred that at least the
`authentication code be p ovided to the payer bank 10.
`
`5
`
`The payer bank 10
`
`least one of
`
`the
`
`payer
`
`bank:
`
`10
`
`V
`
`
`nu; er
`(action 120),
`the purchase
`customer
`ascount
`
`amount
`(action 122)
`nd the authorization code (124)
`to
`determine whether
`ne or all of
`the‘ data are valid..
`
`the
`Most
`preferably,
`payer
`bank
`10
`analyzes
`the'
`
`authentication co e
`(action 124)
`to verify its validity
`‘15mm_,prior
`to author'zing the transaction.
`If any one or
`more of
`the da a are not valid,
`then the payer bank 10.
`
`the' analyzes at
`
`identific ion number
`
`(action 118),
`
`the
`
`preferably
`
`
`condition (ac ion 126))
`
`tablishes
`
`a
`
`negative
`
`authorization
`
`
`
`At action 128,
`
`the pay
`
`
`
`
`bank 10 preferably
`
`goods and/or services and th provider of goods and/or
`
`services determines whether the authorization condition
`
`the,
`When
`(action 132).
`is positive
`or negativ
`
`authorization conditio His negative,
`,the provider 'of
`
`serv' es
`goods
`and/or
`refuses.
`to \complete
`the
`
`
`
`transaction
`
`(acti
`
`132).
`
`Conversely,
`
`when
`
`the
`
`25
`
`authorization con ition is -positive,
`
`the' provider of
`
`15
`
`

`

`(KW
`
`,\
`
`
`goods and/or services complet
`'
`ransaction (action
`
`out
`
`in accordance with the in ention using the Isteps
`
`
`illustrated in ‘FIG.
`
`3 wit
`
`the exception of
`
`those
`
`concerning the transmissio of data from the customer 52
`
`64 over the network.
`to he provider 60, 62
`
`10 6'5 {Qfifi
`With reference to FIG. 4,
`‘nche
`the commercial
`tran action has been completed (FIG 3),
`the transaction
`
`is settled (action 150).
`
`Initial
`
`
`
`, a determination is
`
`,made as to whether the provider o
`
`goods and/or services,
`
`utilizes the payer bank 10-in s ttling its transactions
`
`~15m~ww(action 152).
`
`If
`
`it does,
`
`transaction receipt
`
`is
`
`transmitted from the provide
`
`of goods and/or serviceS‘
`
`60,
`
`62 or 64 to the payer
`
`ank 10.
`
`If not,
`
`then the
`
`provider’ of
`
`,goods
`
`and/or
`
`services may
`
`settle the:
`
`transaction through its
`
`wn bank by §transmitting the
`
`'20
`
`transaction receipt
`
`to
`
`hat
`
`(bank
`
`(action‘ 156).
`
`'The
`
`provider's
`
`bank would then transmit
`
`the
`
`transaction
`
`n
`receipt to the payer b> k 10 (action 154).
`
`1’71”? A?”
`Atriaction 159,’ the
`custom '8 account and at ac ion 160; a determination is
`
`ayor bank 10 debits the
`
`25
`
`_again made as to whether
`
`he provider of goods and/or
`
`
`
`services 60,
`
`62 or 64 uti izes the same payor bank 10 as
`
`the customer 52.
`
`If it oes,
`
`
`the payor bank 10 directly
`
`16
`
`

`

`credits the bank account
`
`f the provider of goods and/or
`
`SONYNJ,3.o-oos
`
`services
`
`(action 162).
`
`If not,
`
`the payer bank 10
`
`
`~transmits a credit to tAe bank of the provider of goods
`and/or services (actio i64)
`and that bank credits the‘
`
`provider's hank accoun 4(action 166).
`
`m3}:mi11.3''
`u...i«Lut5"
`
`“.—
`
`‘Reference is now made
`
`to FIG.
`
`5 which is a
`
`flow ‘diagranx illustrating procesS‘ steps in accordance
`
`with another aspect of
`
`the present
`
`invention._
`
`In'
`
`particular,
`the process steps represent actions to be
`taken to facilitate an investment
`transaction between a
`customer 52 and an on4line investment service provider
`
`66
`
`(FIG. 1).
`
`In accordance with the invention,
`
`the on-:
`
`line investment provider 66 may be an investment banhf'a
`brdkerage, etc., and may be located domestically or off—,
`
`'shore.
`
`Preferably,
`
`the
`
`investment
`
`transaction is
`
`conducted through the settlement
`
`bank‘ 10
`
`(the
`
`term'
`
`settlement being used to indicate that the customer's
`
`bank account
`debited
`or
`
`‘bank
`settlement
`‘Within the
`credited
`depending
`on\K the
`
`10 may» be
`investment
`
`transaction).
`
`.
`
`At action 200,
`
`the
`
`customer
`
`52 preferably
`
`accesses the settlement bank 10 via a network,
`
`such as
`
`the Internet,-using any of the known techniques. After
`the
`customer
`52
`has
`indicated that
`he or
`she
`is
`interested in conducting an investment
`transaction,
`the
`
`settlement
`
`bank
`
`10
`
`prompts
`
`the
`
`customer
`
`:52
`
`authenticate himself or herself
`
`(action 202).
`
`to
`
`In
`
`17
`
`
`
`

`

`
`
`D'-ILZE3...)?L‘".3311End!11...]!
`
`u..D"in
`
`
`5
`
`'10
`
`20
`
`25
`
`sONYNJ 3.0—009
`
`response,
`
`the
`
`customer
`
`52 preferably activates
`
`the
`
`fingerprint
`
`identification device 50
`
`(action 204) which
`
`' causes the device to compare the customer's fingerprint
`
`with a stored fingerprint
`
`(action 206)
`
`and produce an
`
`authentication code if.a match is obtained.-
`
`/
`
`1'
`
`gull 0w
`
`the
`
`ingerprint
`
`At action 208,
`
`erably inserts
`
`e
`
`50
`
`into
`
`an
`
`the customer pr
`
`identification dev
`
`transmitting data
`
`interface 56
`
`(FIG. 2)
`
`suitable. for
`
`settlement
`
`bank
`
`10,
`
`for
`
`via the universal
`
`between the fingerprint identificat'on device 50 and the
`I
`
`exampl
`
`imself
`
`
`serial bus of
`
`the computer
`
`5
`
`Alternatively/v the
`
`customer may
`
`authenticate
`
`(or
`
`herself
`
`:by:
`
`activating fingerprint
`
`ident fication circuitry in the
`
`interface 56 or in the com ter 54. Whichever technique~
`
`
`Vis employed,
`
`the custome
`
`preferably uses the computer.
`
`54‘
`to access
`preferably
`
`the Int net.
`transmi ted
`
`I At action 210, data is'
`from
`the
`fingerprintf
`
`identification
`
`de ice
`
`50
`
`(or
`
`- other
`\
`
`fingerprint
`
`identification c' cuit
`
`if employed}
`
`to “the settlement
`
`bank
`
`10,
`
`the
`
`ata
`
`including atr
`
`least 'one
`
`of
`
`the
`
`
`
`code and the customer investment account
`authenticatio'
`
`number (in e crypted form).
`
`' At
`
`'action 212,
`
`if
`
`the
`
`settlement
`
`bank
`
`10”
`
`receives the authentication code (and, if required,
`
`the
`
`investment
`
`account
`
`number),
`
`then
`
`the
`
`investment
`
`transaction is permitted to continue.
`
`If not,
`
`then the
`
`18
`
`

`

`process flows back to action 202 where the ‘customer '52
`
`SONYNJ ‘3.o~009
`
`At. action 214,)
`
`the
`
`ustomer
`
`52 preferably
`
`.provid' 5 [investment
`
`instructio
`
`to the settlement bank
`
`is again prompted to authenticatehimself or herself.
`
`
`
`flit/b Mt
`
`'
`
`,
`
`5
`
`10 over
`
`the network,
`
`such a
`
`"buy 100
`
`shares of xyz
`
`corporation" and, at
`
`action 16,
`
`the settlement bank 10
`
`transmits
`
`the instructions to the on—line
`
`investment
`
`is noted.
`It
`an in estment bank).
`(e.g.,
`nrovider 66
`that
`the investment, inst notions may‘be transmitted to
`the on—line investment 9 ovider in a way which maintains
`
`10
`
`the customer's anonymi'
`Indeed,
`the customer‘s name,
`accountnumber, etc., need not be transmitted to the.
`
`
`
`investment
`provider.
`The
`customer, «however,
`may
`
`
`instruct they settle nt bank 10 as to whether or not "he.
`
`”1'3me or she‘wishes to ma ntain such anonymity.
`(at/“(y A‘
`At action 218,
`the on-li e investment provider,
`66
`exe utes the investment
`ins ructions and does not
`
`4:31is:m
`ar»:1,"2*.KI!"(17.3!ILJir-
`
`
`I'I...“H.111$3.;HZ:EST.“J
`
`the
`
`receipt
`
`of
`
`instructions
`
`from the
`
`20
`
`At
`
`\
`require authorization because, bY‘pre‘vious agreementh~
`
`
`investment
`
`settlement ,bank 10 itself >i authorization enough.
`action 220, a transaction eceipt is transmitted to the
`
`ind ating whether
`
`eing made. At action 224,
`
`settlement
`
`bank
`
`10
`
`remittance is
`
`required'ormpayment
`
`is
`
`the
`
`settlement bank 10
`
`(2 edits 'or debits the customer's
`
`25
`
`investment account
`
`i
`
`
`accordance with the transaction '
`
`receipt
`
`and,
`
`at
`
`a tion 226,
`
`
`l9
`
`the settlement bankio
`
`

`

`debits and/or c
`
`'
`
`acc
`
`Somlio-oos
`
`e on—line investment provider's
`
`Reference is now made
`to
`«
`W5 W
`flow iagram illustrating_process
`
`7
`
`
`IG.
`
`6 which is a
`
`tops
`
`in accordance
`
`5’ with yet another aspect of
`
`the
`
`seent
`
`invention.
`
`In
`
`
`
`the process steps, epresent actions to be
`taken to facilitate access a
`electronic account nithin
`
`
`particular,
`
`the payor‘ bank 10.
`
`Pref
`
`
`
`ably,
`
`the electronic bank
`
`account is an electronic s fety deposit box 24, it being~
`understood that any of
`he functional accounts mav-be
`
`accessed in a similar
`
`the customer
`
`
`ay. At action 300,
`
`
`the payer bank 10 via the network ‘
`52 preferably accesse
`using any of the k own techniques. After the custofier
`
`10
`
`5“ErinLi
`
`nTcfiELSE
`
`52‘ has
`
`indicate
`
`
`
`that
`
`he or
`
`she
`
`is
`
`interested ’inv
`
`‘iS fquaccessing an el ctronic account {such as an electronic
`
`activates
`
`
`fingerprint
`
`identification device ‘50
`
`safety‘ deposit box 24),
`the payor bank 10 then prompts
`the
`cuStomer
`52
`to authenticate thimself or herselt
`
`\
`the customer 52 preferably
`the
`
`
`(action 302
`
`In response,
`
`20
`
`the V
`to- compare
`the Adevice
`04) which causes
`(action.
`customer 5 fingerprint with a stored fingerprint (action
`305}
`a d produce an authentication code if a match is
`
`obtaired;““*v~
`
`
`
`M}W he1
`
`At action 30h,
`
`
`
`th customer prefierably inserts
`
`f ngerprint
`
`identif‘cation device
`
`50
`
`into
`
`an
`
`interface 56'
`
`(FIG. 2)
`
`uitable for
`
`transmitting data
`
`between the fingerprin identification device 50 and the
`
`
`
`
`

`

`SONYNJ ‘3 . 0-009
`
`payer bank 10, for erample, via th universal serial bus
`
`of
`
`the‘ computer 54. Alternati ely,
`
`the customer may
`
`_authenticate
`
`himself
`
`' or
`
`h rself
`
`by
`
`activating
`
`fingerprint identification circ itry in the interfaCe 56
`or in the computer 54.“ hhiche er technique is employed,
`
`5
`
`the customer preferably uses the computer 54 to access
`
`the _Internet.
`
`
`At actio
`
`310,
`
`data
`
`is preferably
`
`identification device
`transmitted from the fing print
`50
`(or other
`fingerpri
`identification device
`if
`
`
`
`10
`
`employed)
`
`to the payer ha k 10
`
`(in encrypted form){ the
`
`
`data including at
`least
`ne of the authentication code
`and the number of the electronic acconnt.
`bank 10 receives
`
`$4400 Rfi} At aCtiOn 312,
`if the payo
`quired,
`
`‘
`
`the auth ntication code
`
`(and,
`
`if
`
`the account
`
`“15““"”nfimber),
`
`iIf not,
`
`the
`
`process flows back to action
`
`{3:221{inMi
`-a~7mm1&-
`
`"M
`
`
`
`IL.“‘LJ!WI}...£113:1!."
`
`
`then the access process ontinues.
`02 where the customer 52‘
`
`
`is again prompted to authe
`icate himself or herself{
`At action 314,
`the custom r 55 may again request accessx
`to the electronic safe
`deposit box 54Vand, at action
`
`the payer bank 1 grants the customer's request and
`316,
`permits
`the
`custo r
`to manipulate,
`receive,
`and/or
`
`transmit electro ic file(s)
`
`skilled "in,”th
`
`contained in ‘an electronic
`
`{s}.' codicilts).
`include wi
`
`20
`
`25
`
`to the account.
`
`'Those:
`
`art will appreciate
`
`that
`
`»the
`
`files
`
`box may
`safetY‘ deposit
`title to. securities or
`
`other pro erty, contract(s), certificatejs),
`
`insurance
`
`policies etc.
`
`21
`
`45V '
`
`
`

`

`Advantageously,
`
`the method and system of the
`
`SONYNJ 3.0-009
`
`present
`invention , readily provides
`for
`authorizing
`transactions over a netWork in which all parties tolthe
`
`transaction maintain
`confidence,
`that
`the
`initiator
`(e.g.,
`the customer) [of the transaction-is authorized to
`enter into the transaction.
`The transactions are not
`
`limited to commercial
`
`transactions for goods/services,
`
`mEmuMé
`
`”S
`Li
`1%:
`
`
`
`but may include investment
`
`transactions,
`
`and access to
`
`electronic -bank accounts,
`
`such. as electronic safety
`
`10
`
`deposit boxes 24, bank deposit accounts 26,
`
`settlement
`
`credit/debitaccounts 2-8, etc.
`
`Although
`
`the
`
`invention
`
`herein
`
`has
`
`been
`
`described with reference to particular embodiments/«lit
`
`‘15iir
`
`these embodiments are I'merely'
`is to be understood that
`illustrative of
`the principles and applications of
`the
`
`present
`
`invention.
`
`It
`
`is therefore to be understood
`
`the
`be made- to
`that I numerous modifications may
`illustrative embodiments and that other arrangements may.
`be devised without departing from the\“sp\irit and scope
`of
`the present
`invention_asi defined by :the appended
`
`20
`
`claims.
`
`22
`
`
`
`

`

`IS CLAIMED IS:
`, WEAK
`$(kfi? ¥¥§K
`
`1.
`
`A method of
`
`SONYNJ 3.0-009
`
`comme cial
`
`-trans ction between a customer a
`
`a provider 0
`
`.,—
` a
`authorizin
`
`
`
`
`5
`
`goods or services re
`
`sts that
`
`the cust
`
`authentication
`
`identification
`
`activating
`
`a
`
`fingerprint
`
`vice,
`
`and the provid r of Vgoods or
`
`services recei es at least an authenti
`
`tion code of the
`
`,customer
`
`over
`
`the
`
`network
`
`from the
`
`fingerprint
`
`10
`
`-
`
`identification device,
`
`the method omprising.the'steps
`
`of:
`
`providing the customer with the fingerprint-
`
`identification device which pro uces the authentication
`
`code when a fingerprint of the customer matches a stored.
`
`15'" ”fingerprint within
`
`the
`
`ingerprint
`
`identification
`
`device;;
`
`Vreceiving at
`
`set
`
`the authentication code
`
`from the provider of go ds or services over the network;
`
`and;
`
`\
`
`20
`
`,
`
`authori

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