Method and system for real time online debit transactions

Abstract

An online payment method is disclosed which permits users to make realtime debit card payments over the Internet. The payor and payee pre-register with the system by sending their PAN, encrypted PIN and encryption key to the system database using a debit card reader, and then enter user names and secret IDs to be associated with the PAN and PIN numbers. When an online transaction is made the payor enters its user name and ID which is sent to the system along with the transaction amount and the payee user name. The system sends out a standard POS transaction using the stored PAN, encrypted PIN and encryption key. If approved it sends out a credit POS transaction to the payee in the same way.

1 . A system for online debit payments to a payee by a payor using a central system server and database 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 and a debit card reader adapted to read PAN and PIN numbers from debit cards, encrypt same using an encryption key and communicate with said central system server, wherein said payor and payee have access to the internet, the system comprising:
 a) data receiving and processing module associated with said system server for receiving from a debit card reader and storing in said database said payor's PAN number, said payor's encrypted PIN number and encryption key;   b) said data receiving and processing module associated with said system server further adapted for receiving from said payor via the internet a user name and a secret ID number, different from said payor's PIN number, which are associated with said stored PAN and encrypted PIN numbers and encryption key;   c) said data receiving and processing module associated with said system server further adapted for receiving from a debit card reader and storing in said database said payee's PAN number, said payee's encrypted PIN number and encryption key;   d) said data receiving and processing module further associated with said system server for receiving from said payee via the internet a user name and a secret ID number, different from said payee's PIN number, which are associated with said stored payee's PAN and encrypted PIN numbers and encryption key;   e) display processor associated with said system server for, when said payor elects to make an online debit payment, i) displaying to said payor a payment web page with the amount of said online debit payment transaction; ii) permitting said payor to enter 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; and v) 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.   
     
     
         2 . The system of  claim 1  wherein said payor enters said amount of said transaction and said payee's user name on said web page prior to 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. 
     
     
         3 . The system of  claim 1  wherein said amount of said transaction and said payee's user name are served up to said payor with said web page. 
     
     
         4 . The system of  claim 2 , wherein said web page is served up to said payor's internet browser by said payee's server. 
     
     
         5 . The system of  claim 2  wherein said web page is served up to said payor's internet browser by said payee's financial institution's server. 
     
     
         6 . The system of  claim 1  wherein said online transaction is carried out at the web site of said payee, and said payor selects a debit payment option for carrying out said online transaction prior to being served up said web page by said payee. 
     
     
         7 . The system of  claim 5  wherein said payee's user name is communicated to said system server upon selection of said debit payment option. 
     
     
         8 . The system of  claim 1  wherein said payor's PAN number is entered by reading said PAN number from a debit card issued by a financial institution by a card reader. 
     
     
         9 . The system of  claim 1  wherein said payor's PIN number is entered by entering said PIN number on a physical PIN pad. 
     
     
         10 . The system of  claim 1  comprising the further step of said sending a receipt to said payee after said second POS transaction has completed. 
     
     
         11 . The system of  claim 1  wherein said payor's PIN number is decrypted and stored at said system server, and re-encrypted with each POS transaction. 
     
     
         12 . The system of  claim 1  wherein said payor enters a plurality of payments to a plurality of payees on a single payment web page. 
     
     
         13 . The system of  claim 8  wherein said payor's PAN number is entered from said debit card by a debit card reader, and said PIN number is encrypted by said PIN pad using said encryption key.