System and method for secure network purchasing

Abstract

There is disclosed a method for performing secure electronic transactions on a computer network, the network comprising a buyer's computer, a vendor server, a creditor server and a security server. The buyer's computer has a fingerprint file stored in the memory thereof. The method includes the steps of: i) the buyer computer requesting to purchase merchandise to the vendor server, the purchase request including said buyer computer's IP address; ii) the buyer computer selecting a predetermined form of secured payment method; iii) the payment method selection causing the vendor server to transmit to the security server a request for confirmation of the buyer computer's identity at the buyer computer's IP address; iv) the confirmation request causing the security server to send a retrieval request to the IP address, the retrieval request including a retrieval program for detecting and retrieving the buyer's computer's fingerprint file, and the retrieval request further comprising a response request asking for confirmation of the purchase request; whereby a positive response from the buyer's computer to the security server accompanied by the fingerprint file causes the security server to confirm the buyer computer's identity to the vendor server and to approve the purchase.

Description

TECHNOLOGICAL FIELD OF THE INVENTION [0001] The present invention relates to systems and methods for implementing secure purchases over a computer network. More particularly, the methods relate to a system which permits purchases of merchandise to be made over a computer network, whereby the purchaser may feel confident that personal credit card information is not at risk of being diverted, misappropriated or stolen and the merchant may be more confident that the purchaser is bona fide. [0002] It is well known for buyers of merchandise to access the global client / server network commonly referred to as the Internet, a part of which is the World Wide Web, for the purpose of searching for and purchasing merchandise from on-line vendors selling wares ranging from travel services and investment services to buying CD recordings, books, software, computer hardware and the like. [0003] Numerous patents have already been granted which teach methods or systems purporting to secure commercial ...

AI Technical Summary

Benefits of technology

"The present invention provides a system and method for potential online buyas to pay for merchandise with minimalized exposure to the risk of credit card theft by electronic interception. The invention also increases the confidence of the consuming public in the safety of such transactions and increases the confidence with which vendors may ship the purchased product or deliver the purchased service without fear of the payment being provided fraudulently. The invention takes advantage of the existing business relationships between the member computers which form the structure of the Internet. The invention provides a site-specific and computer-specific identification confirmation system for use in a secure electronic purchasing system. The invention allows for secure and trusted transactions between buyas and vendors through the use of an Internet Protocol (IP) address and verification of the subscriber's computer being on-line at the assigned IP address. The invention also allows for the use of a bank or vendor with whom the subscriber already has a credit account, who has an online presence, to participate in the transaction as it is carried out by the subscriber / consumer."

Problems solved by technology

Most of the disclosed systems have the disadvantage that they rely on the transmission of sensitive information over unsecured network routes and lines for each transaction.

Although practically-speaking, the systems which use encryption are fairly safe, there is still some risk of credit card misappropriation and there is little psychological comfort given to potential users by their knowing that encryption is being used.

This large population apparently fears that, despite all the efforts at security and cryptography promised by the vendors, there still exists the possibility that their credit account information will be intercepted on-line by a third party computer hacker and used illegally, at great expense and trouble for the cardholder.

An additional anxiety-inducing factor related to merchandising over the Internet, or e-commerce, is that the merchant cannot always be certain that just because he has obtained credit card infomation, that he will actually be paid for the merchandise he ships.

After all, credit card fraud and / or theft occurs regularly and may not be caught in time to stop the order from being shipped.

When the cardholder discovers the theft and stops the card, it may be too late for the vendor to recover his property.

At the very least, this situation leads to unnecessary aggravation and wasted resources for the merchant, credit card company and cardholder.

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