Abstract:
A method of purchasing an item by a purchaser includes providing an identity of the item to the purchaser over the Internet on a vendor server. The purchaser then places a telephone call over a telephone network to a billing server. During the telephone call, the billing server receives a billing amount for the item and a financial account. The billing server provides a confirmation number to the purchaser during the telephone call. The purchaser then sends the confirmation number to the vendor server. After verifying the confirmation number, the vendor sends the item to the purchaser and the vendor server sends the confirmation number to the billing server over the telephone network.

Description:
FIELD OF THE INVENTION 
     The present invention is directed to a computer network. More particularly, the present invention is directed to secure purchases from vendors over a computer network. 
     BACKGROUND OF THE INVENTION 
     Many products and services are available for purchase on the Internet. A popular way to make a purchase over the Internet is to send a valid credit card number to the vendor&#39;s Internet Web site. However, the Internet is not considered a secure network and is frequently subjected to incursions by computer hackers. Understandably, this has made many users hesitant to send their credit card numbers over the Internet and has limited the growth of purchases made over the Internet. 
     Another reason that users are hesitant to use the Internet is that vendors typically require personal information of a user (e.g., the user&#39;s name, address, phone number, etc.) before conducting a transaction. However, many users wish to remain anonymous to the vendor and also to avoid having their personal information available to computer hackers. 
     One known method for making purchases over the Internet without transmitting a credit card number is through the use of an electronic cash card from, for example, Mondex Corp. The electronic cash card has an embedded processor that stores a prepaid amount of money. A user can make a purchase by inserting the cash card into a specialized reader attached to the user&#39;s computer. The amount of the purchase is deducted and the vendor is reimbursed for the purchase. However, this method requires the user to have an expensive cash card and cash card reader, and sophisticated software. 
     Another known method is the CyberCoin service from CyberCash Corp. With the CyberCoin service, users execute specialized software to obtain an Internet wallet. The Internet wallet can be used to make payments to vendors. However, this method also requires the user to implement sophisticated software. 
     Based on the foregoing, there is a need for a method and apparatus for making secure purchases over a computer network such as the Internet that do not require the user to purchase and implement specialized hardware or software and allow the user to remain anonymous to the vendor. 
     SUMMARY OF THE INVENTION 
     One embodiment of the present invention is a method of purchasing an item. The present invention includes providing an identity of the item to the purchaser over the Internet on a vendor server. The purchaser then places a telephone call over a telephone network to a billing server. During the telephone call, the billing server receives a billing amount for the item and a financial account. The billing server provides a confirmation number to the purchaser during the telephone call. The purchaser then sends the confirmation number to the vendor server. After verifying the confirmation number, the vendor sends the item to the purchaser and the vendor server sends the confirmation number to the billing server over the telephone network. 
     The present invention allows the purchaser to purchase goods or services over the Internet using the confirmation number that is received from a billing server over the telephone network. The confirmation number itself does not divulge either sensitive credit card information or personal information about the purchaser, and therefore can be freely sent over the Internet. 
    
    
     BRIEF DESCRIPTION OF THE DRAWINGS 
     FIG. 1 is a block diagram illustrating a system for allowing secure purchases over a computer network such as the Internet in accordance with one embodiment of the present invention. 
     FIG. 2 is a flowchart illustrating the steps performed by the present invention that allows a purchaser to make a secure purchase over the Internet. 
    
    
     DETAILED DESCRIPTION 
     FIG. 1 is a block diagram illustrating a system for allowing secure purchases over a computer network such as the Internet in accordance with one embodiment of the present invention. The system  70  includes a computer  18  and a telephone  20  through which a user (or “purchaser”) interacts to make the purchases. One embodiment of the present invention allows a user to make a purchase over the Internet with a confirmation number provided by telephone over a secure voice network. 
     Computer  18  is coupled to an Internet Service Provider (“ISP”)  14  over a communication line  16 . Communication line  16  can be a dial-up line using a modem or a dedicated communication line. ISP  14  is coupled to the Internet  10  over a communication line  34 . Computer  18  can be any device that allows a user to browse the Internet. For example, computer  18  can be a personal computer, an Internet phone, or a personal data assistant (“PDA”). 
     A vendor server  24  coupled to a database  26  functions as a Web server on the Internet  10 . Vendor server  24  is a general purpose computer and includes a processor and a memory system for storing instructions executed by the processor. Vendor server  24  provides information about goods or services that are available to be purchased. The information about the goods and services are stored on database  26 . A user at computer  18  can access a Web site hosted by vendor server  24  and identify a good or service to be purchased in a known manner. Because access to the Web site on vendor server  24  is through Internet  10 , the security of this access is not very high and is subject to incursions by computer hackers. 
     A telephone  20  is coupled to a public switched telephone network (“PSTN”)  12  or any other public telephone network via communication line  22  in a known manner. Because PSTN  12  is a switched circuit network, it is a secure network relative to Internet  10 . Also coupled to PSTN  12  is a billing server  30  that can be dialed into by the user at telephone  20 . Billing server  30  is a general purpose computer and includes a processor and a memory system for storing instructions executed by the processor. In other embodiments, network  12  may be any kind of secure network that allows telephone calls, such as a private Intranet. 
     Billing server  30  is coupled to a database  32  that stores information regarding the billing device that the purchaser uses with the present invention. Database  32  can be local to billing server  30 , or remote from billing server  30 . In one embodiment a purchaser uses a prepaid card as the billing device. The prepaid card is similar to known telephone prepaid phone cards that are prevalent. A purchaser will purchase the prepaid card, and the prepaid card will be “charged” with the amount of the purchase price. A unique identifier number will be associated with the prepaid card. When the value of the prepaid card reaches zero, the card can either be disposed of, or “recharged” for a sum of money so it can continue to be used. When a prepaid card is used with the present invention, database  32  stores a list of prepaid cards and the dollar amount allocated to each card. Therefore, billing server  30  can easily validate a prepaid card. 
     In another embodiment, the purchaser uses a credit card or similar card issued by a financial institution as the billing device. In this embodiment, database  32  will also have information so that the credit card can be validated in a known manner. Database  32  may be remote from billing server  30  and controlled by the issuer of the credit card. 
     In one embodiment, billing server  30  is directly coupled to vendor server  24  over communication line  28 . The coupling of billing server  30  to vendor server  24  is a secure link because it passes through PSTN  12  and does not pass through Internet  10 . In another embodiment, billing server  30  is coupled to vendor server  24  over a secure intranet, or any other secure communication link. 
     FIG. 2 is a flowchart illustrating the steps performed by the present invention that allow a purchaser to make a secure purchase over the Internet. 
     At step  100 , the purchaser identifies an item to purchase over Internet  10  on a Web site hosted by vendor server  24 . The purchaser accesses vendor server  24  through computer  18 . The purchaser also identifies the purchase price or billing amount of the item. In one embodiment, all potential items for purchase are able to be sent to the purchaser electronically over Internet  10 . Examples of the items include software, documents, music, etc. In another embodiment, a potential item may be a hard good that must be sent to the purchaser using, for example, the post office. 
     At step  110 , the purchaser, using telephone  20 , dials a telephone number associated with billing server  30 . In one embodiment, the telephone number is a toll-free 800-type number. The purchaser interacts with billing server  30  when the telephone call is established. The purchaser enters identifying information for the desired billing device such as a prepaid card number or a credit card number. The purchaser also enters the billing amount or the purchase price of the desired item. In one embodiment, billing server  30  includes an interactive voice response (“IVR”) system that the purchaser interacts with. In another embodiment, the purchaser enters the desired information using a touch-tone keypad on telephone  20 . 
     At step  120 , in response to receiving the card information and billing amount, billing server  30  validates the card information. If the card is validated for the desired billing amount, billing server  30  generates a confirmation number. The confirmation number is good only for this specific billing amount. In one embodiment, the confirmation number can be vendor specific, in which case the user submits the name or identification of the vendor at step  110 . The confirmation number is provided to the purchaser during the telephone call. 
     In one embodiment, billing server  30  also provides the purchaser with a “cancel code” at step  120  if the purchaser desires a “virtual check”. A virtual check allows the purchaser to cancel the electronic transaction within a predetermined time period, similar to canceling a check after submitting a check to a vendor. The cancel code received by the purchaser can later be submitted to vendor server  24  within the predetermined time period to cancel the transaction. In another embodiment, the purchaser submits the cancel code to billing server  30  to cancel the transaction. 
     Both the confirmation number and the cancel code generated at step  120  can be encrypted using known encryption techniques for increased security. Although billing server  30  may have some identifying information regarding the purchase, the confirmation number and cancel code do not identify the purchaser. 
     At step  130 , the purchaser via computer  18  provides the confirmation number to vendor server  24  over Internet  10  in order to purchase the desired goods or services. In one embodiment, vendor server  24  stores a list or identities of valid confirmation numbers in database  26 . In another embodiment, vendor server  24 , using an algorithm, can determine whether the confirmation number is valid. In still another embodiment, vendor server  24  can query a remote server or database (e.g., billing server  30 ) to determine if the confirmation number is valid, using known methods to remotely validate credit card numbers. Vendor server  24  can also determine from the confirmation number the billing amount that the confirmation number represents. 
     Further, in one embodiment, vendor server  24  can determine from the confirmation number whether a virtual check is requested. In another embodiment, the purchaser, when sending the confirmation number to vendor server  24 , can also at that time request a virtual check. 
     At step  140 , vendor server  24  determines whether the confirmation number is associated with a virtual check. If it is, at step  150  vendor server  24  must wait the predetermined time period for a cancellation from the purchaser. In one embodiment, the predetermined time period is seven days. Therefore, if the purchaser wishes to cancel the purchase after providing the confirmation number to vendor server  24 , the purchaser must send the cancel code to vendor server  24  within a seven-day period. Of course, either vendor server  24  will not provide the purchased item to the purchaser until the predetermined period has expired, or the purchaser must return the item (or delete the item if it is stored data) if the transaction is later canceled. 
     If within the predetermined period vendor server  24  does not receive a cancel code from the purchaser, step  160  is executed. Further, step  160  is executed if at step  140  it is determined that the confirmation number is not associated with a virtual check. At step  160 , vendor server  24  provides the confirmation number received from the purchaser to billing server  30  over secure PSTN  12 . Billing server  30  then arranges for vendor server  24  to be reimbursed for the billing amount associated with the confirmation number. Therefore, if the confirmation number was for $17.00, billing server  30  can electronically transmit $17.00 to vendor server  24 , or reimburse the vendor at vendor server  24  some other way (e.g., send the vendor a check). 
     In another embodiment, instead of sending the cancel code to vendor server  24 , the purchaser can send the cancel code to billing server  30  during a telephone call. Billing server  30  will then submit a cancel instruction to vendor server  24  for the corresponding transaction. 
     At step  170 , billing server  30  updates database  32  based on the amount reimbursed to vendor server  24 . Therefore, if the confirmation number was generated based on a prepaid card, the amount allocated to the prepaid card stored in database  32  will be reduced by the amount of the purchase. If the confirmation number was based on a credit card, database  32  will be modified so that the purchaser will eventually be billed by the credit card issuer based on the billing amount of the confirmation number. Billing server  30  can also directly notify the credit card issuer. 
     If the purchased items are hard goods and need to be delivered to the purchaser, the address of the purchaser is needed. In one embodiment, the purchaser provides this information to billing server  30  during step  110  on the secure telephone call. Vendor server  24  can then receive this information from billing server  30  over communication line  28  at a later time when the item is ready to be shipped. Therefore, the personal information of the purchaser is never transmitted over Internet  10 . 
     In another embodiment, the purchaser&#39;s address does not ever have to be transmitted to vendor server  24 , and the purchaser can remain anonymous to the vendor. In this embodiment, vendor server  24  ships the item to billing server  30 . Billing server  30 , which received the purchaser&#39;s address at step  110 , can then reship the item to the purchaser. 
     In all embodiments of the present invention, confidential credit card information is not being transmitted over Internet  10 . Moreover, personal information regarding the purchaser is also not transmitted over Internet  10 . Any information that might be of value to computer hackers is transmitted over PSTN  12 , which is considered a secure network compared to Internet  10 . 
     As described, the present invention allows the purchaser to purchase goods or services over the Internet using a confirmation number that is received from a server over the PSTN. The confirmation number itself does not divulge either sensitive credit card information or personal information about the purchaser, and therefore can be freely sent over the Internet. Further, a virtual check function allows a purchaser to cancel an electronic purchase at a later date if the purchaser changes their mind. When prepaid cards are used, the purchaser never has to supply identification information to the vendor or the issuer of the prepaid card. 
     Several embodiments of the present invention are specifically illustrated and/or described herein. However, it will be appreciated that modifications and variations of the present invention are covered by the above teachings and within the purview of the appended claims without departing from the spirit and intended scope of the invention. 
     For example, computer  18  and telephone  20  can be combined into a single device or multiple devices, as long as the described functionality is maintained. The functionality of computer  18  and telephone  20  can also be provided by other devices, such as Internet phones and PDAs. Further, networks  10  and  12  can be any type of networks that work with the present invention, including local area networks and other private data or phone networks.