System and method for biometric authorization for financial transactions

Abstract

The present invention is a system and method of biometric-based identity verification for authorizing financial transactions between a consumer and a merchant, said system comprising distributed processing to facilitate biometric matching and various types of financial transactions to facilitate said system's integration into current financial networks. System users register at least one biometric identifier, personal and/or business identity-verifying data, and financial account information. A user presents a biometric sample obtained from the user's person and the user's system ID number to conduct financial transactions. This data is used to authenticate the user's identity and authorize transfer of funds from the user's registered financial account to the designated recipient's account by matching the presented transaction biometric with at lease one registered biometric template and without the use of a man-made financial account token or identity token.

1 . A method for authorizing a debit payment transaction, comprising: 
 collecting a transaction data and a customer registration data at a point of sale terminal the customer registration data comprising at least a candidate biometric sample and a unique identifier;    transmitting the unique identifier from the point of sale terminal to a central server; transmitting a primary reference template and a debit account data from the central server to the point of sale terminal;    determining whether the candidate biometric sample matches the primary reference template;    determining whether the debit payment transaction should be authorized based on predetermined criteria; and    if it is determined that the candidate biometric sample matches the primary reference template and it is determined that the debit payment transaction should be authorized based on predetermined criteria, then authorizing the debit payment transaction.    
     
     
         2 . The method according to  claim 1 , wherein the transaction data comprises a merchant offer and a customer acceptance.  
     
     
         3 . The method according to  claim 1 , wherein the transaction data comprises a transaction amount.  
     
     
         4 . The method according to  claim 1 , wherein the candidate biometric sample comprises the fingerprint data.  
     
     
         5 . The method according to  claim 1 , wherein the debit account data comprises data regarding an available balance in a customer debit account from which the debit payment transaction is to be funded.  
     
     
         6 . The method according to  claim 5 , wherein the customer debit account is a pre-funded stored value account.  
     
     
         7 . The method according to  claim 1 , wherein the step of determining whether the debit payment transaction should be authorized based on predetermined criteria comprises determining whether a customer debit account has sufficient funds available to cover the debit payment transaction.  
     
     
         8 . The method according to  claim 1 , wherein the debit account data comprises data regarding a plurality of customer debit accounts and the method further comprises: 
 displaying information regarding the plurality of customer debit accounts via the point of sale terminal;    accepting a customer selection via the point of sale terminal of one of the plurality of customer debit accounts from which the debit payment transaction is to be funded; and    using the customer selection in determining whether the debit payment transaction should be authorized based on predetermined criteria.    
     
     
         9 . The method according to  claim 1 , wherein the debit account data comprises data regarding a plurality of customer debit accounts and the method further comprises: 
 displaying information regarding the plurality of customer debit accounts via the point of sale terminal;    accepting a customer selection via the point of sale terminal of two or more of the plurality of customer debit accounts from which the debit payment transaction is to be funded, the customer selection including the amount of the debit payment transaction that is to be funded from each selected customer debit account; and    using the customer selection in determining whether the debit payment transaction should be authorized based on predetermined criteria.    
     
     
         10 . The method according to  claim 6 , wherein if it is determined that the debit payment transaction should not be authorized due to insufficient funds in the pre-funded stored value account, then the method further comprises: 
 providing an offer via the point of sale terminal to transfer funds into the pre-funded stored value account from a registered customer checking account;    if the offer is accepted from requesting the customer to input via the point of sale terminal an amount to be transferred;    issuing a credit block request for the amount to be transferred to an issuing bank of a collateral credit account; and    if the credit block request is confirmed by the issuing bank, then transmitting a request to transfer funds from the registered customer checking account to the pre-funded stored value account and authorizing the debit payment transaction.    
     
     
         11 . A method for authorizing a debit payment transaction, comprising: 
 collecting a transaction data and a customer registration data at a point of sale terminal the customer registration data comprising at least a candidate biometric sample and a unique identifier;    transmitting the unique identifier from the point of sale terminal to a central server;    transmitting a primary reference template from the central server to the point of sale terminal;    determining whether the candidate biometric sample matches the primary reference template;    if the candidate biometric sample matches the primary reference template, then transmitting a debit account data from the central server to the point of sale terminal;    if it is determined that the debit payment transaction should be authorized based on predetermined criteria, then authorizing the debit payment transaction.    
     
     
         12 . The method according to  claim 11 , wherein the transaction data comprises a merchant offer fingerprint data.  
     
     
         13 . The method according to  claim 11 , wherein the transaction data comprises a transaction amount.  
     
     
         14 . The method according to  claim 11 , wherein the candidate biometric sample comprises fingerprint data.  
     
     
         15 . The method according to  claim 11 , wherein the debit account data comprises data regarding available funds in a customer debit account.  
     
     
         16 . The method according to  claim 15 , wherein the customer debit account is a pre-funded stored value account.  
     
     
         17 . The method according to  claim 11 , wherein the step of determining whether the debit payment transaction should be authorized based on predetermined criteria comprises determining whether a customer debit account has sufficient funds available to cover the debit payment transaction.  
     
     
         18 . The method according to  claim 11 , wherein the debit account data comprises data regarding a plurality of customer debit accounts and the method further comprises: 
 displaying information regarding the plurality of customer debit accounts via the point of sale terminal;    accepting a customer selection via the point of sale terminal of one of the plurality of customer debit accounts from which the debit payment transaction is to be funded; and    using the customer selection is determining whether the debit payment transaction should be authorized based on predetermined criteria.    
     
     
         19 . The method according to  claim 11 , wherein the debit account data comprises data regarding a plurality of customer debit accounts and the method further comprises: 
 displaying information regarding the plurality of customer debit accounts via the point of sale terminal;    accepting a customer selection via the point of sale terminal of two or more of the plurality of customer debit accounts from which the debit payment transaction is to be funded, the customer selection including the amount of the debit payment transaction that is to be funded from each selected customer debit account; and    using the customer selection in determining whether the debit payment transaction should be authorized based on the transaction data and the debit account data.    
     
     
         20 . The method according to  claim 16 , wherein if it is determined that the debit payment transaction should not be authorized due to insufficient funds in the pre-funded stored value account, then the method further comprises: 
 providing an offer via the point of sale terminal to transfer funds into the pre-funded stored value account from a registered customer checking account;    if the offer is accepted, then requesting the customer to input via the point of sale terminal an amount to be transferred;    issuing a credit block request for the amount to be transferred to an issuing bank of a collateral credit account;    if the credit block request is confirmed by the issuing bank, then transmitting a request to transfer funds from the registered customer checking account to the pre-funded stored value account and authorizing the debit payment transaction.    
     
     
         21 . The method for authorizing a credit payment transaction, comprising: 
 collecting a transaction data and a customer registration data at a point of sale terminal, the customer registration data comprising at least a candidate biometric sample and a unique identifier;    transmitting the unique identifier from the point of sale terminal to a central server;    transmitting a primary reference template and a credit account data from the central server to the point of sale terminal;    determining whether the candidate biometric sample matches the primary reference template; and    if it is determined that the candidate biometric sample matches the primary reference template, then sending an authenticated authorization request to an issuing bank corresponding to the credit account data.    
     
     
         22 . The method according to  claim 21 , wherein the transaction data comprises a merchant offer and a customer acceptance.  
     
     
         23 . The method according to  claim 21 , wherein the transaction data comprises a transaction amount.  
     
     
         24 . The method according to  claim 21 , wherein the candidate biometric sample comprises fingerprint data.  
     
     
         25 . The method according to  claim 21 , wherein the credit account data comprises data regarding a registered customer credit account.  
     
     
         26 . The method according to  claim 25 , wherein the registered customer credit account is a VISA®, MASTERCARD®, or DISCOVER® account.  
     
     
         27 . The method according to  claim 21 , wherein the credit account data comprises data regarding a plurality of registered customer credit accounts and the method further comprises: 
 displaying information regarding the plurality of registered customer credit accounts via the point of sale terminal;    accepting a customer selection via the point of sale terminal of one of the plurality of registered customer credit accounts from which the credit payment transaction is to be funded;    and using the customer selection in sending the authenticated authorization request to the issuing bank corresponding to the selected credit account.    
     
     
         28 . The method according to  claim 21 , wherein the credit account data comprises data regarding a plurality of registered customer credit accounts and the method further comprises: 
 displaying information regarding the plurality of registered customer credit accounts via the point of sale terminal;    accepting a customer selection via the point of sale terminal of two or more of the plurality of registered customer credit accounts from which the credit payment transaction is to be funded, the customer selection including a amount of the credit payment transaction to be funded from each selected registered customer credit account; and    using the customer selection in sending the authenticated authorization request to the issuing bank for each selected registered customer credit account.    
     
     
         29 . The method for authorizing a debit payment transaction, comprising: 
 collecting a transaction data and a customer registration data at a point of sale terminal, the customer registration data comprising at least a candidate biometric sample and a unique identifier;    transmitting the unique identifier from the point of sale terminal to a central server;    transmitting a primary reference template and a debit account data from the central server to the point of sale terminal, the debit account data comprising data regarding available funds in a pre-funded stored value account from which the debit payment transaction is to be funded;    determining whether the candidate biometric sample matches the primary reference template;    determining whether the debit payment transaction should be authorized based on predetermined criteria;    if it is determined that the candidate biometric sample matches the primary reference template and it is determined that the debit payment transaction should not be authorized due to insufficient funds in the pre-funded stored value account, then providing an offer via the point of sale terminal to transfer funds into the pre-funded stored value account from a registered customer checking account;    if the offer is accepted, then requesting the customer to input via the point of sale terminal an amount to be transferred;    issuing a credit block request for the amount to be transferred to an issuing bank of a collateral credit account; and    if the credit block request is confirmed by the issuing bank, then transmitting a request to transfer funds from the registered customer checking account to the pre-funded stored value account and authorizing the debit payment transaction.