Transactional security over a network

Abstract

A system and method facilitates purchase transactions over a computer network, including the purchase of electronically storable items. The embodiments herein encrypt “customer information” in an encryption stream and cause the encryption stream to be transferred from the customer to a merchant in the purchase transaction. A verification entity receives the encryption stream which is sent by the merchant for identity verification and payment authorization. Then, the verification entity verifies the identifiers contained in the encryption stream and transfers an identity verification and payment authorization from the verification entity to the merchant. The encryption stream or unique transaction identifier can be added, by the merchant, to a purchased electronic item to create a personalized electronic item.

1 . A method comprising: 
 encrypting customer information in an encryption stream, wherein said customer information comprises a name identifier, a customer age identifier, an address identifier, and a customer agreement identifier;    causing said encryption stream to be transferred from a customer to a merchant in a purchase transaction for a purchased electronic item;    causing said encryption stream to be routed to a verification entity;    producing, by said verification entity, a unique transaction identifier comprising at least one of an identity verification and a payment authorization, based on said encryption stream;    transferring, by said verification entity, said unique transaction identifier to said merchant, wherein said encryption stream and said unique transaction identifier are devoid of personal payment information of said customer;    causing at least one of said encryption stream and said unique transaction identifier to be added, by said merchant, to said purchased electronic item to create a personalized electronic item; and    causing said personalized electronic item to be supplied from said merchant to said customer,    wherein each personalized electronic item supplied to different customers is different because of a uniqueness of each encryption stream.    
     
     
         2 . The method according to  claim 1 , wherein said encrypting of said customer information further comprises steps of: 
 a) causing said customer to connect with said verification entity using a first computerized device;    b) reading hardware identifiers from said first computerized device;    c) incorporating said hardware identifiers into said encryption stream; and    d) repeating steps a-c for additional computerized devices said customer desires to use in any purchase transaction.    
     
     
         3 . The method according to  claim 2 , wherein said causing of said encryption stream to be transferred from said customer to said merchant further comprises: 
 at an approximate time of transfer of said encryption stream to said merchant, but before actual transfer of said encryption stream to said merchant, incorporating, into said encryption stream, a second set of hardware identifiers and a time and date stamp from a computerized device making said actual transfer; and    attaching a non-encrypted routing identifier to said encryption stream.    
     
     
         4 . The method according to  claim 1 , wherein said identity verification and said payment authorization confirms to said merchant an actual presence of said customer in said purchase transaction, such that said merchant is provided assurance that said merchant is not transacting with any entity other than said customer, and such that said transaction identifier allows said merchant to submit the transaction for signature present processing.  
     
     
         5 . The method according to  claim 1 , wherein said uniqueness of each encryption stream permits the source of unauthorized copies of said purchased electronic item to be identified through said verification entity.  
     
     
         6 . A method comprising: 
 encrypting customer information in an encryption stream, wherein said customer information comprises a name identifier, a customer age identifier, an address identifier, and a customer agreement identifier;    causing said encryption stream to be transferred from a customer to a merchant in a purchase transaction for a purchased electronic item;    causing said encryption stream to be routed to a verification entity;    producing, by said verification entity, a unique transaction identifier comprising at least one of an identity verification and a payment authorization, based on said encryption stream;    cross-referencing, by said verification entity, said encryption stream against a separate database comprising customer information to produce said unique transaction identifier;    transferring, by said verification entity, at least one of said identity verification and said payment authorization to said merchant, wherein said encryption stream, said identity verification, and said payment authorization are devoid of personal payment information of said customer;    causing at least one of said encryption stream and said identity verification and said payment authorization to be added, by said merchant, to said purchased electronic item to create a personalized electronic item; and    causing said personalized electronic item to be supplied from said merchant to said customer,    wherein each personalized electronic item supplied to different customers is different because of a uniqueness of each encryption stream.    
     
     
         7 . The method according to  claim 6 , wherein said encrypting of said customer information further comprises steps of: 
 a) causing said customer to connect with said verification entity using a first computerized device;    b) reading hardware identifiers from said first computerized device;    c) incorporating said hardware identifiers into said encryption stream; and    d) repeating steps a-c for additional computerized devices said customer desires to use in any purchase transaction.    
     
     
         8 . The method according to  claim 7 , wherein said causing of said encryption stream to be transferred from said customer to said merchant further comprises: 
 at an approximate time of transfer of said encryption stream to said merchant, but before actual transfer of said encryption stream to said merchant, incorporating, into said encryption stream, a second set of hardware identifiers and a time and date stamp from a computerized device making said actual transfer; and    attaching a non-encrypted routing identifier to said encryption stream.    
     
     
         9 . The method according to  claim 6 , wherein said identity verification and said payment authorization confirms to said merchant an actual presence of said customer in said purchase transaction, such that said merchant is provided assurance that said merchant is not transacting with any entity other than said customer, and such that said transaction identifier allows said merchant to submit the transaction for signature present processing.  
     
     
         10 . The method according to  claim 6 , wherein said cross-referencing comprises verifying whether all required verification information is contained within said encryption stream before producing said identity verification and payment authorization.  
     
     
         11 . A method comprising: 
 encrypting customer information in an encryption stream, wherein said customer information comprises at least one of a name identifier, a customer age identifier, an address identifier, and a customer agreement identifier;    causing said encryption stream to be transferred from a customer to a merchant in a purchase transaction for a purchased electronic item;    causing said encryption stream to be routed to a verification entity;    producing, by said verification entity, a unique transaction identifier based on said encryption stream;    transferring, by said verification entity, a unique transaction identifier to said merchant, wherein said encryption stream and said unique transaction identifier are devoid of personal payment information of said customer;    causing said encryption stream to be added, by said merchant, to said purchased electronic item to create a personalized electronic item; and    causing said personalized electronic item to be supplied from said merchant to said customer,    wherein each personalized electronic item supplied to different customers is different because of a uniqueness of each encryption stream.    
     
     
         12 . The method according to  claim 11 , wherein said encrypting of said customer information further comprises steps of: 
 a) causing said customer to connect with said verification entity using a first computerized device;    b) reading hardware identifiers from said first computerized device;    c) incorporating said hardware identifiers into said encryption stream; and    d) repeating steps a-c for additional computerized devices said customer desires to use in any purchase transaction.    
     
     
         13 . The method according to  claim 12 , wherein said causing of said encryption stream to be transferred from said customer to said merchant further comprises: 
 at an approximate time of transfer of said encryption stream to said merchant, but before actual transfer of said encryption stream to said merchant, incorporating, into said encryption stream, a second set of hardware identifiers and a time and date stamp from a computerized device making said actual transfer; and    attaching a non-encrypted routing identifier to said encryption stream.    
     
     
         14 . The method according to  claim 11 , wherein said identity verification and said payment authorization confirms to said merchant an actual presence of said customer in said purchase transaction, such that said merchant is provided assurance that said merchant is not transacting with any entity other than said customer, and such that said transaction identifier allows said merchant to submit said purchase transaction for signature present processing.  
     
     
         15 . The method according to  claim 11 , wherein said uniqueness of each encryption stream permits the source of unauthorized copies of said purchased electronic item to be identified through said verification entity.  
     
     
         16 . A method comprising: 
 encrypting customer information in an encryption stream, wherein said customer information comprises a customer agreement identifier;    causing said encryption stream to be transferred from a customer to a merchant in a purchase transaction for a purchase, wherein said purchase comprises one of a good and a service;    causing said encryption stream to be routed to a verification entity;    producing, by said verification entity, an identity verification and a payment authorization based on said encryption stream; and    transferring, by said verification entity, at least one of said identity verification and said payment authorization to said merchant, wherein said encryption stream, said identity verification, and said payment authorization are devoid of personal payment information of said customer.    
     
     
         17 . The method according to  claim 16 , wherein said encrypting of said customer information further comprises steps of: 
 a) causing said customer to connect with said verification entity using a first computerized device;    b) reading hardware identifiers from said first computerized device;    c) incorporating said hardware identifiers into said encryption stream; and    d) repeating steps a-c for additional computerized devices said customer desires to use in any purchase transaction.    
     
     
         18 . The method according to  claim 17 , wherein said causing of said encryption stream to be transferred from said customer to said merchant further comprises: 
 at an approximate time of transfer of said encryption stream to said merchant, but before actual transfer of said encryption stream to said merchant, incorporating, into said encryption stream, a second set of hardware identifiers and a time and date stamp from a computerized device making said actual transfer; and    attaching a non-encrypted routing identifier to said encryption stream.    
     
     
         19 . The method according to  claim 16 , wherein said identity verification and payment authorization confirms to said merchant an actual presence of said customer in said purchase transaction, such that said merchant is provided assurance that said merchant is not transacting with any entity other than said customer, and such that said transaction identifier allows said merchant to submit the transaction for “signature present” processing.  
     
     
         20 . A service comprising: 
 encrypting customer information in an encryption stream, wherein said customer information comprises a name identifier, a customer age identifier, an address identifier, and a customer agreement identifier;    causing said encryption stream to be transferred from a customer to a merchant in a purchase transaction for a purchased electronic item;    causing said encryption stream to be routed to a verification entity;    producing, by said verification entity, a unique transaction identifier comprising at least one of an identity verification and a payment authorization, based on said encryption stream;    transferring, by said verification entity, said unique transaction identifier to said merchant, wherein said encryption stream and said unique transaction identifier are devoid of personal payment information of said customer;    causing at least one of said encryption stream and said unique transaction identifier to be added, by said merchant, to said purchased electronic item to create a personalized electronic item; and    causing said personalized electronic item to be supplied from said merchant to said customer,    wherein each personalized electronic item supplied to different customers is different because of a uniqueness of each encryption stream.    
     
     
         21 . A system comprising: 
 an encoder positioned within a customer computer, wherein said encoder is adapted to encrypt customer information in an encryption stream, wherein said customer information comprises a name identifier, a customer age identifier, an address identifier, and a customer agreement identifier;    a transfer agent positioned within said customer computer, said transfer agent causing said encryption stream to be transferred from said customer computer to a merchant computer in a purchase transaction for a purchased electronic item;    a verifier operatively connected to said merchant computer, wherein said verifier is separate from said customer computer and from said merchant; and    a database comprising said customer information operatively connected to said verifier,    wherein said transfer agent is adapted to cause said encryption stream to be transferred from said merchant computer to said verifier,    wherein said verifier is adapted to generate a unique transaction identifier comprising an identity verification and/or a payment authorization, based on said database, and to transfer said unique transaction identifier to said merchant, wherein said encryption stream and said unique transaction identifier are devoid of said personal payment information of said customer,    wherein at least one of said encryption stream and said unique transaction identifier is adapted to be added, by said merchant, to said purchased electronic item to create a personalized electronic item to be supplied from said merchant to said customer, and    wherein each personalized electronic item supplied to different customers is different because of a uniqueness of each encryption stream.