Patent ID: 8041646

Claim:
A method for online debit payments to a payee by a payor using a central payment system and a debit card issued by a financial institution having associated PAN and PIN numbers said PAN and PIN numbers being associated by said financial institution with said debit card, the method comprising: a) said payor registering with said central payment system by: i) entering said payor's PAN number; ii) entering said payor's PIN number; iii) encrypting said payor's PIN number with an encryption key and communicating said PAN number and encrypted PIN number and encryption key to a database maintained by the system and storing said PAN number and encrypted PIN number and encryption key; iv) said payor entering a user name and a secret ID number, different from said payor's PIN number, which are associated with the stored PAN and encrypted PIN numbers and encryption key; b) said payee registering with said central payment system by: i) storing said payee's PAN number; ii) said payee entering a payee PIN number; iii) encrypting said payee's PIN number and communicating said payee's PAN number and encrypted payee PIN number and encryption key to a database maintained by the system, and storing said payee's PAN number and encrypted payee PIN number and encryption key; iv) said payee entering a user name and a secret ID number, different from the payee PIN number, which are associated with the stored payee's PAN and encrypted payee PIN number; c) said payor making an online debit payment by: i) displaying to said payor a payment web page with the amount of said online debit payment transaction; ii) said payor entering said payor's user name and secret ID number; iii) communicating said payor's user name and secret ID number, the amount of said online debit payment transaction and said payee's user name to the system server; iv) said system validating said payor's user name and secret ID number, validating said payee's user name and retrieving said payor's PAN and encrypted PIN numbers and encryption key and sending a debit POS transaction to said financial institution in the amount of said online debit payment transaction; v) said financial institution decrypting said PIN number and approving or disapproving said debit POS transaction; vi) if said POS transaction is approved, retrieving said payee's PAN and encrypted PIN numbers and encryption key and sending a second POS transaction crediting said payee's account.