PAYMENT SYSTEM AND METHOD

Abstract: A system and method for providing indicia (26) that a payment has been made. The total value represented by the indicia (26) is determined. Funds corresponding to the total value are requested from a secure source (24). An authorization to provide the indicia (26) is received from the secure source (24). The indicia (26) are then printed (26A), sent by fax (26B), e-mail (26C) or other electronic transfer. The indicia (26) may contain encrypted data, or consecutive numbers, which may be part of the encrypted data. The encrypted data may be in the form of a two dimensional bar code. The information may be recovered from the indicia (26) by, for example, scanning. Authenticity of the indicia (26) may be verified by accessing a database to determine if the unique indicia (26) has previously been received and at least some of the information it contains entered into the database.

Description: Payment System and Method BACKGROUND OF THE INVENTION 1. Field of the Invention This invention relates generally to systems and methods for producing proof of payment for goods or services. More particularly, it also relates to a system and method that produces mail which meets the Unites States Postal Service permit mail requirements. 2. Background Art The U.S. Postal Service allows payment for services in three basic ways: stamps, postage meters and permit. Stamp use is declining, metering mail is flat and permit mail is growing. The permit system is appealing to large mailers because it is simple to use, is often an outgrowth of the mailing software they already use, it and does not require the up-front payment that post meters do . Market research has shown that one of the major inconveniences of permit mail is that corporations must issue a check to accompany the mail when it is delivered to the Postal Service. It would be of great benefit to users if the inconvenience of providing such separate "hardcopy" payment means or the need for an account for such a funds transfer purpose was eliminated. SUMMARY OF THE INVENTION It is an object of this invention to provide a Permit Mail Payment System (PMPS), consisting of software and a Postal Security Device, for the purpose of securely controlling proof of payment for permit mailers and others needing to provide a secure means of printing proof that payment has been made and funds transferred to the proper account. It is another object of this invention to provide a Permit Mail Payment System (PMPS) capable of operating in a stand-alone application on a dedicated processor. It is yet another object of this invention to provide a Permit Mail Payment System (PMPS) capable of operating in a multi-user application on a dedicated processor. It is still another object of this invention to provide a Permit Mail Payment System (PMPS) capable of operating in a Local Area Network application on a dedicated processor. It is a further object of this invention to provide a Permit Mail Payment System (PMPS) capable of operating in a Wide area Network application in a "virtual" processing environment wherein the central processing and accounting control is remote from the customer/user. Interfacing to the processing environment is typically via Internet or a direct-call (1-800) to the processing environment. It is still another object of this invention to apply the invention to any operation which requires the secure transfer of funds and a hard copy proof of payment. Possible applications relate to such activities that, prior to this invention, required the exchange of money for hard copy documents such as gift certificates, tickets, certified checks, stamps, and the like. It is yet a further object of the invention to provide to users the convenience of both a permit system, and a meter type system to dispense funds, which may be used to pay for goods or services. The funds may be made available on a just on time basis. The invention is directed to a system that provides for a simple, secure means of paying for goods and services, while at the same time providing a secure hard copy proof of payment. While this concept focuses on use within the US Postal Service, it can apply to any operation which requires the secure transfer of funds and a secure hard copy proof of payment. This invention eliminates the need for the postage payment method and consequently removes the need for the account, and additionally removes the need to provide physical payment at the time of providing the postal authority with the corresponding permit mailing. Each mailpiece sent under the payment method may or may not bear a permit imprint indicia or serialized number showing that postage is paid. When a permit mail job-run is finished, the operator completes the appropriate postal form and calculates, or causes the calculation, of the postage due, based on piece, weight and class of service. When the postage due amount has been calculated, the money will be obtained and evidence of payment made on the Permit Mail Payment System (PMPS) in accordance with the invention. When an amount of postage is required, the amount of money requested is communicated in the PMPS Postal Security Device (PSD) which generates a secret or public key, or otherwise encrypts relevant security information, which is needed to debit funds from a user's account. When funds are requested, the system requires the necessary authorization codes by an operator. Physical proof of payment is evidenced by the printing of a secure digitally signed encrypted series of numbers and printed in both human readable and electronically readable (2D bar code) form. The PMPS connects to a Host Financial System via direct telephone dial up or use of the internet through which interconnection required information is interchanged and account control takes place. Thus, the invention is directed to a system and a method for providing indicia that a payment has been made, comprising determining the total value represented by said indicia, requesting funds from a secure source corresponding to the total value, receiving from the secure source an authorization to provide the indicia, and providing the indicia. The indicia may contain encrypted information. The encrypted information may be printed as a two dimensional symbol. Further, the encrypted information may include a -digital signature. The method may further comprise recovering the encrypted information from the hardcopy indicia to obtain recovered information. The authenticity of the recovered information may be verified by comparison to a data base of previously recorded information to determine if the indicia from which the information was recorded was a duplicate. To this end, the indicia may include consecutive numbers . The consecutive numbers may be part of the encrypted data. In accordance with the method, the indicia may be printed, in hardcopy form, on one of gift certificates, tickets, stamps and certified checks, or provided by electronic means including facsimile or e-mail. In a preferred embodiment, the indicia include postal data and may be printed on mail. BRIEF DESCRIPTION OF THE DRAWINGS The foregoing aspects and other features of the present invention are explained in the following description, taken in connection with the accompanying drawings, wherein: Figure 1 is a generalized flow chart of a version of the present invention. Figure 2 is a flow chart of an embodiment of the invention used for producing postage on mail. Figure 2A is a diagram of apparatus used to verify authenticity of indicia produced m accordance with the invention. Figure 3A and 3B are examples of proof of payment indicia that are produced in accordance with the invention. DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS Referring to Fig. 1, a generalized conceptual flow chart of the present invention is shown. At 10, input from one or more of various sources is used to make up a manifest including total value of the items to be printed. The sources may include the Internet, an intranet, or web 12. For example a local area network of a business, having a plurality of work stations where data can be entered, may be the source of such input. Another source may be local input from, for example, a keyboard 14, or from a postal meter 16. As more fully described below, the items to be printed may be gift certificates, tickets to entertainment events, certified checks, stamps, or other postage indicia; depending on the nature of the input. For example, the local input may be keystrokes on a keyboard operated by an operator answering the telephone for a service that provides tickets to sporting events pursuant to telephone orders. At 20 the transaction is completed. In other words, it is closed, and the total cash value is determined. For example, for a postal customer, the total cost of mailing all of its mail, for example, for one day is determined, based on the number of pieces, the weight of each piece, the type of delivery selected, . ^ etc. Software for performing this function is well known in the art. At 22 a payment request is generated based on the total value computed at 20. Here a software component to the payment system is used to interface to a device which acts as a source of funds, that is a funds or postal security device 24. The permit mail payment system (PMPS) software of 22 can be operated by a trained employee or it can operate as a call routine from another application such as a direct mail software package or a transaction mail application used at 22. The PMPS software typically operates under a Windows, Linux, or other operating system. The Postal Security Device (PSD) 24 is a secure, tamper resistant, physical device which attaches to (or is built in to) a personal computer or personal data assistant (such as a Palm Pilot) running the PMPS software. The PSD is provided either with or without tamper response/ countermeasures which react to protect the PSD from fraudulent use. Should the PSD be housed in a secure environment (such as in a data center) , the tamper response/countermeasures would be an optional preference. The PSD 24 controls the disbursement of funds and provides a secure, digital signature, and/or encryption, for any printing of the evidence of payment. The PSD may or may not hold funds in advance of disbursement. One dedicated PSD can be used, of a type similar to a traditional postage meter, whereby the PSD holds funds. In a preferred embodiment, the PSD can operate without funds, providing a means for securely transferring the funds from a central account or bank and then printing the evidence of payment at 26. This results in payment on a just-on-time basis, advantageσtϊ ' sly allowing the user to keep funds until their expenditure is necessary. When proof of postage is required, the amount of postage requested is communicated to the PSD, which generates a secret or public key, and. or encryption, which is needed to debit funds from a user's account. When requesting proof of postage, the system will require the necessary authorization codes by an operator. The PMPS connects to a Host Financial System 28 via direct telephone dial up or use of the internet. When requesting the proof of postage, the Host Financial System 28 debits funds from an individual account or requests an electronic funds transfer from the proper bank account. Once the funds are made available, the Host Financial System 28 responds back to the PMPS at 22 with the correct, encrypted information which can be further interrogated by the PSD 24. At 26, once the correct information is available, a secure, digitally encrypted form or label, with a digital signature providing proof of signing, will be provided by printing with a printer 26A, or by facsimile transmission 26B, or by e-mail 26C. The indicia provided includes the summary information of the transaction. As a preferred embodiment, the entire message is printed in a two dimensional symbol. This two dimensional symbol allows the entire message to be electronically reentered into a data processing system, for example by scanning, by the recipient. This message may be on a separate document, or included as part of a larger document, such as a postal form. Because the two dimensional bar code has a digital encrypted signature, it can only be deciphered, including the digital signature, by the appropriate party with its necessary private and public keys. The receiving authority, for example, the United States Postal Service or other postal authority, upon successful scanning of the bar code, is assured of the proper allocation of the proof of postage funds. Further details are discussed below with respect to Fig. 3A and Fig. 3B. The PMPS applications software 23 used at 22 interfaces to the PSD 24 or other secure proof of payment device wherein any tampering with the PMPS applications software will result in the PSD 24 not providing the proof of postage, certificate, label or form required. Should an attempt be made to falsify the proof of postage, certificate, label or form, the scanning of the bar code symbol by the postal authority (or other carrier) reveals the attempted fraud, in that the cryptographic image generated does not relate to the signature applied to a valid bar code image. Attempts to copy a previous valid proof of postage, certificate, label or form result in the scanning by the postal authority (or carrier) showing that the scanned image (bar code) is a second copy of a previously scanned image. Referring to Fig. 2A, this is done by virtue of the fact that each indicia printed at 26 is absolutely unique as a result of a unique two dimensional bar code or a unique serial number, or both. As each piece of mail 27 is scanned by, for example, by the postal authority using a scanner 29, the data it generates is entered into a database 31, operating with a computer 33. The database 3_1 is checked by the computer 33 to ascertain whether there is a previous corresponding entry. If there is a previous corresponding entry, then either the item presently being scanned, or the iteirf corresponding to the previous entry, is fraudulent in nature. On a periodic basis, a consolidation of transactions is made and funds paid to the U.S. Postal service (or other carrier or party if appropriate) . The periodic basis may be predefined to equate to the time of mailing, hourly, weekly, monthly, etc. Thus, in accordance with the invention, indicia may be printed on a manifest generated at 10. For example, indicia evidencing proof of payment may be printed on a manifest delivered to the postal authority with the mail for the day. In a preferred embodiment of this invention, each permit mailer, wishing to utilize the invention, is uniquely identified to the aforementioned Host Financial System using public key methodologies. The Host Financial System may be operated and maintained by any trusted party approved by the postal authority or other carrier. In an alternate embodiment, the postal authority (or carrier) may provide funds directly into a PSD via the postal authority (or carrier) infrastructure. In accordance with the invention, there are a least three distinct ways in which the PSD can be implemented. A "virtual" PSD may reside with a computer of the Host Financial System. Another possibility is a local PSD, such as may be found in a postal meter. Yet another approach is a shared PSD, which may be connected to, for example, a network so that several authorized users may obtain required funds. Referring to Fig. 2, an embodiment of the invention specifically directed to use for producing postage on mail, is disclosed. At 30 the mail is run. That is, each piece of mail is weighed, and a determination of what mail services is to be used, is made. At 32 all of this information is processed in the manner discussed above, by appropriate software. At 34 an electronic report is printed. Funds are requested from PSD 36. Either in advance, or upon request, PSD 36 communicates with a telemetering service (TMS) center 38. In a manner well known in the art, this TMS center 38 provides funds to PSD 36. TMS center 38 is authorized to communicate with a financial institution where it can access a bank or credit card account 40 to charge for the funds transferred to PSD 36. PSD 36 provides a digital signature to authorize the printing of the appropriate postage labels at 42. The system of Fig. 2 operates in accordance with the general principles discussed above with respect to Fig. 1. Referring to Figs. 3A and 3B, examples of typical labels, printed at 42 of Fig. 2, are shown. The labels may include preprinted indicia 44. A two-dimensional bar code 46 as described above may be used. Additional information which can be coded into this bar code, and may be otherwise available, by printing, in human readable form, may be to whom the mail is addressed, from whom it originated, the address that the mail is being sent to, routing information, a tracking number identification 48, and other information which is typical, such as the amount of postage 50, the date of posting 52, the class of mail 54 and the zip code of origin 56. In postage meter settings the indicia are typically printed by a dedicated thermal printer 9not shown) of a type well known in the art. It should be understood that the foregoing description is only illustrative of the invention. _ Various alternatives and modifications can be devised by those skilled in the art without departing from the invention. Accordingly, the present invention is intended to embrace all such alternatives, modifications and variances which fall within the scope of the appended claims.

Claims: CLAIMS What is claimed is: 1. A method for providing indicia that a payment has been made comprising: determining the total value represented by said indicia; requesting funds from a secure source corresponding to the total value; receiving from the secure source an authorization to provide the indicia, including a digital signature; and providing the indicia. 2. The method of Claim 1, wherein the indicia contains encrypted information including the digital signature. 3. The method of Claim 2, wherein the encrypted information is a two dimensional symbol. 4. The method of Claim 2, further comprising recovering the encrypted information from the indicia to obtain recovered information. 5. The method of Claim 4, wherein authenticity of the recovered information is verified. 6. The method of Claim 5, .wherein the authenticity is verified by comparison to a data base of previously recorded information to determine if the indicia from which the information was recovered is a duplicate. 7. The method of Claim 6, wherein the indicia include consecutive numbers. 8. The method of Claim 7, wherein the consecutive numbers are part of the encrypted data. 9. The method of Claim 1, wherein the indicia are printed on one of gift certificates, tickets, stamps and certified checks. 10. The method of Claim 1, wherein the indicia include postal data. 11. The method of claim 1, further comprising at least one of printing the indicia in hardcopy form, or transmitting the indicia electronically, electronic transmission including at least one of facsimile or e- mail . 12. A method for using a secure source of funds to dispense the funds, comprising: determining the funds needed; accessing the secure source to obtain the funds and a digital signature evidencing proof of payment; providing indicia, including the digital signature, to evidence that payment has been made. 13. The method of claim 12 wherein funds are transferred to the secure source when funds are required. 14. The method of claim 12 wherein the funds are used to pay for goods or services, further comprising: generating a manifest of said goods or services; and printing said indicia on said manifest. 15. A system for providing indicia that a payment has been made comprising: means for determining the total value represented by said indicia; means for requesting, from a secure source, funds corresponding to the total value; means for receiving from the secure source an authorization, including a digital signature, to provide the indicia; and means for providing the indicia. 16. The system of Claim 15, wherein the means for providing the indicia provides indicia, which contain encrypted information including the digital signature. 17. The system of Claim 16 wherein the encrypted information is provided as a two dimensional symbol. 18. The system of Claim 16 further comprising means for recovering the encrypted information from the indicia to obtain recovered information. 19. The system of Claim 18, further comprising means for verifying authenticity of the recovered information. ^ 20. The method of Claim 19, further comprising: a database for storing recovered information, and comparison means for comparing the recovered information to entries in the data base of previously recorded information to determine if the indicia from which the information was recorded is a duplicate. 21. The system of Claim 19, further comprising means for placing consecutive numbers in the indicia. 22. The system of Claim 21, wherein the consecutive numbers are part of the encrypted data. 23. The system of Claim 15, configured to print the indicia on one of gift certificates, tickets, stamps and certified checks. 24. The system of Claim 15, configured to print postal indicia. 25. The system of claim 15, further comprising at least one of means for printing the indicia in hardcopy form, or means for transmitting the indicia electronically, by electronic transmission including at least one of facsimile or e-mail.

Inventors: ROSEN RICHARD H, ROSEN, RICHARD, H.
Applicants: ASCOM HASLER MAILING SYS INC, ASCOM HASLER MAILING SYSTEMS, INC.
Application year: 2000
Main classification: G06F12
IPC codes: G07B17