Method and apparatus to provide secure purchase transactions over a computer network

Abstract

A method and structure for providing secure credit facility transactions for purchasing goods and services over a computer network such as the Internet that stores user's privileged information and other transactional data on the user's own computer. The method includes encryption of all information before or during its storage to the user's hard drive. The method and system includes the ability for the user to complete electronic commerce (e-commerce) transactions without revealing certain of the encrypted information, such as credit card numbers, to the merchant. The method and system creates and controls sub-accounts on a single credit facility, such as a credit card, with unique user reporting and corresponding password identifiers. The method and system sets and control sub-accounts spending amounts and replenishment periods. The method enables the user to create and control recurring debit accounts on a single credit facility, such as a credit card, over varying transactional periods.

1 . A method of securing purchase transactions over a computer network comprising: 
 encrypting customer information as a customer code on a storage device on a customer computer, said customer computer being connected to said computer network;    supplying said customer code to a merchant in a purchase transaction over said computer network;    forwarding said customer code to a financial institution over said computer network;    decrypting said customer code at said financial institution; and    returning a purchase authorization decision from said financial institution to said merchant over said computer network.    
     
     
         2 . The method in  claim 1 , wherein said customer code is stored on said storage device only in encrypted form.  
     
     
         3 . The method in  claim 1 , wherein said customer code includes encrypted customer address information, and said method further comprises comparing, at said financial institution, said customer address with an authorized address of said customer maintained by said financial institution, 
 wherein said purchase authorization decision is approved only if said customer address and said authorized address are consistent.    
     
     
         4 . The method in  claim 1 , wherein said customer code includes encrypted credit card information.  
     
     
         5 . The method in  claim 1 , further comprising passing said customer code through an intermediate code confirmation site on said computer network prior to forwarding said customer code to said financial institution over said computer network, said intermediate confirmation site confirming whether said customer code has a proper encryption format.  
     
     
         6 . The method in  claim 1 , further comprising encrypting a plurality of said customer codes on said storage device, wherein each of said customer codes includes a unique payment method  
     
     
         7 . The method in  claim 1 , further comprising encrypting a plurality of said customer codes on said storage device, wherein a group of said customer codes identify a single credit organization for payment, wherein each customer code in said group includes a different user name, and wherein each customer code in said group includes unique credit limits  
     
     
         8 . The method in  claim 1 , wherein said supplying includes entering a password on said customer computer to unlock said customer code.  
     
     
         9 . The method in  claim 8 , wherein entry of said password allows rules to be established for each purchase transaction, wherein limits on transactional amounts and payment time frames may be established  
     
     
         10 . A method of securing purchase transactions over the Internet comprising: 
 encrypting customer credit card information as a customer code on a storage device on a customer computer, said customer computer being connected to said Internet;    supplying said customer code to a merchant in a purchase transaction over said Internet;    forwarding said customer code to a financial institution over said Internet;    decrypting said customer code at said financial institution; and    returning a purchase authorization decision from said financial institution to said merchant over said Internet    
     
     
         11 . The method in  claim 10 , wherein said customer code is stored on said storage device only in encrypted form  
     
     
         12 . The method in  claim 10 , wherein said customer code includes encrypted customer address information, and said method further comprises comparing, at said financial institution, said customer address with authorized address information of said customer maintained by said financial institution, 
 wherein said purchase authorization decision is approved only if said customer address and said authorized address information are consistent    
     
     
         13 . The method in  claim 10 , further comprising passing said customer code through an intermediate code confirmation site on said Internet prior to forwarding said customer code to said financial institution over said Internet, said intermediate confirmation site confirming whether said customer code has a proper encryption format.  
     
     
         14 . The method in  claim 10 , further comprising encrypting a plurality of said customer codes on said storage device, wherein each of said customer codes includes a different credit card number.  
     
     
         15 . The method in  claim 10 , further comprising encrypting a plurality of said customer codes on said storage device, wherein a group of said customer codes identify a single credit card for payment, wherein each customer code in said group includes a different user name, and wherein each customer code in said group includes unique credit limit  
     
     
         16 . The method in  claim 15 , wherein said unique credit limits include unique recurring periodic spending limits.  
     
     
         17 . The method in  claim 10 , wherein said supplying includes entering a password on said customer computer to unlock said customer code.  
     
     
         18 . A system for securing purchase transactions over a computer network, said system operating on a customer computer, said system comprising: 
 an encrypter adapted to encrypt customer information as a customer code on a storage device on said customer computer; and    a populator adapted to supplying said customer code to a merchant in a purchase transaction over said computer network,    wherein said customer computer includes a network connection adapted to forward said customer code to a financial institution over said computer network, and    wherein said financial institution decrypts said customer code and returns a purchase authorization decision to said merchant over said computer network..    
     
     
         19 . The system in  claim 18 , wherein said customer code is stored on said storage device only in encrypted form.  
     
     
         20 . The system in claim  1816 , wherein said customer code includes encrypted customer address information, and said system further comprises at said, at said financial institution, a comparator adapted to compare said customer address with a historic address of said customer maintained by said financial institution, 
 wherein said purchase authorization decision is approved only if said customer address and said historic address are consistent.    
     
     
         21 . The method in  claim 20 , wherein said financial institution corrects errors in said customer address and returns a corrected address to said merchant.  
     
     
         22 . The system in  claim 18 , wherein said customer code includes encrypted credit card information.  
     
     
         23 . The system in  claim 18 , further comprising an intermediate code confirmation site external to said customer computer and connected to said computer network, said intermediate code confirmation site being adapted to receive said customer code prior to forwarding said customer code to said financial institution over said computer network, said intermediate confirmation site being further adapted to confirm whether said customer code has a proper encryption format.  
     
     
         24 . The system in  claim 18 , wherein said encrypter is further adapted to encrypt a plurality of said customer codes on said storage device, wherein each of said customer codes includes a unique payment system.  
     
     
         25 . The system in  claim 18 , wherein said encrypter is further adapted to encrypt a plurality of said customer codes on said storage device, wherein a group of said customer codes identify a single credit organization for payment, wherein each customer code in said group includes a different user name, and wherein each customer code in said group includes unique credit limits.  
     
     
         26 . The method in  claim 25 , wherein said unique credit limits include unique recurring periodic spending limits.  
     
     
         27 . The system in  claim 16 , further comprising a graphic user interface adapted to receive a password on said customer computer to unlock said customer code.