Transaction authentication system and method
View Patent ↗A transaction security and authentication apparatus and system for electronic commerce which provides authentication of internet purchases by communication with a cardholder's base computer, or by contacting the cardholder by remote access for purchase verification. The system preferably comprises at least one central server system associated with a remote access system and configured for communication with a payment institution, and at least one internet capable device, operatively coupled for communication with the central server system, with the central server system configured to determine authentication of a cardholder electronic transaction, according to data received from the internet capable device upon a request for verification of the cardholder electronic transaction from the payment institution. The method of the invention generally comprises requesting verification of a cardholder electronic transaction, by a payment institution, from a central server system, contacting, by the central server system, at least one internet capable device associated with the cardholder, determining, by the central server system, if the cardholder electronic transaction is authorized by the cardholder, and communicating authentication information, by the central server system, to the payment institution.
1. A method for transaction verification, comprising:
(a) receiving a request at a central server system, from a payment institution separate from the central server system, for verification of a cardholder electronic transaction, the payment institution receiving a request from a merchant separate from the payment institution;
(b) automatically initiating contact by a first internet capable device associated with said cardholder with the central server system;
(c) determining, by said central server system based on said contact, if said cardholder electronic transaction is authorized by said cardholder; and
(d) communicating authentication information, by said central server system, to said payment institution.
2. The method of claim 1 , further comprising verifying, by said central server, the identity of said payment institution.
3. The method of claim 1 , further comprising allowing said cardholder electronic transaction when said authentication information indicates that said cardholder has authorized said cardholder electronic transaction.
4. The method of claim 1 , wherein said internet capable device is a base computer associated with said cardholder.
5. The method of claim 4 , wherein said determining is carried out by determining if said base computer is online.
6. The method of claim 4 , wherein said determining comprises sending a task request from said central server system to said base computer, said task request requiring a response from said cardholder through said base computer.
7. The method of claim 1 , further comprising the step of contacting, by said central server system, a wireless remote device associated with said cardholder.
8. The method of claim 7 , wherein said determining comprises sending a query, by said central server system to said wireless device, said query requiring a response by said cardholder through said remote device authenticating said cardholder electronic transaction.
9. A transaction authentication system, comprising:
(a) at least one central server system associated with a remote access system, said central server system configured for communication with a payment institution for providing credit based on a request from a merchant that is separate from the payment institution; and
(b) at least one cardholder base computer operatively coupled for communication with said central server system, said base computer including an agent configured to intermittently initiate contact with said central server system when said base computer is online; and
(c) said central server system configured to determine authentication of a cardholder electronic transaction, according to data received from said base computer, upon a request for verification of said cardholder electronic transaction from said payment institution.
10. The system of claim 9 , further comprising at least one cardholder remote device configured to communicate with said central server system, said central server system configured to contact said cardholder remote device and request cardholder authorization for said cardholder electronic transaction, when said central server system cannot determine said authentication from said data received from said base computer.
11. A method for transaction verification, comprising:
(a) requesting authentication of a cardholder electronic transaction from a merchant, via a payment institution separate from the merchant;
(b) receiving intermittent contact initiated by an internet capable device;
(c) transmitting an authentication request to the internet capable device associated with said cardholder via a network in response to receipt of the intermittent contact from the internet capable device in said step (b);
(d) transmitting a second authentication request to a wireless remote device associated with said cardholder via a network;
(e) authenticating said cardholder electronic transaction based on said steps (c) and (d) of transmitting an authentication request to the internet capable device and wireless remote device associated with said cardholder; and
(f) allowing said cardholder electronic transaction by said payment institution.
12. The method of claim 11 , wherein said step (c) of transmitting said authentication request is carried out by a central server system in response to said requesting.
13. The method of claim 12 , further comprising communicating an authentication message from said internet capable device to said central server system.
14. The method of claim 13 , wherein said authenticating is carried out by said central server system according to said authentication message.
15. The method of claim 12 , further comprising communicating authentication information, by said central server system, to said payment institution.
16. A method for transaction verification, comprising:
(a) receiving a request at a central server system from a payment institution for verification of a cardholder electronic transaction;
(b) receiving an automatic intermittent contact initiated by an internet capable device querying as to the existence of an electronic transaction at the central server system to be verified;
(c) determining, by said central server system based on said intermittent contact, if said cardholder electronic transaction is authorized by said cardholder; and
(d) communicating authentication information, by said central server system, to said payment institution.
17. The method of claim 16 , further comprising verifying, by said central server, the identity of said payment institution.
18. The method of claim 16 , further comprising allowing said cardholder electronic transaction when said authentication information indicates that said cardholder has authorized said cardholder electronic transaction.
19. The method of claim 16 , wherein said internet capable device is a base computer associated with said cardholder.
20. The method of claim 19 , wherein said step (b) of receiving an intermittent contact comprises sending a task request from said central server system to said base computer, said task request requiring a response from said cardholder through said base computer.