Distributed payment system and method

Abstract

The present invention provides a payment system that allows a mobile communications device (MCD) to interact with a merchant processing device (MPD) and a payment engine. A communications component associated with the payment engine can send requested barcodes to the MPD, receive barcodes or alphanumeric Universal Product Codes from customer MCDs, and handle payment authorizations and settlements. A barcode management component can generate and interpret barcodes based upon merchant offerings and client requests. A security algorithms component can employ an offset pair algorithm to convert each digit from a payment card information into an offset pair of digits to facilitate security in accordance with one embodiment of the present invention.

What is claimed and desired to be secured by Letters Patent is: 
     
         1 .- 18 . (canceled) 
     
     
         19 . A computer-assisted method performed by a merchant processing device, the method including:
 requesting a machine readable code from a payment system, wherein the machine readable code is associated with one or more products for purchase;   receiving the machine readable code from the payment system;   displaying the machine readable code to a mobile communications device operated by a customer, wherein the mobile communications device obtains and transmits the machine readable code to the payment system, and the payment system requests a personal identifier from the customer and verifies the personal identifier; and   receiving an authorization message from the payment system indicating that the customer is authorized to purchase the one or more products after the payment system verifies the personal identifier.   
     
     
         20 . The method of  claim 19  wherein the mobile communications device is a mobile phone. 
     
     
         21 . The method of  claim 19  wherein the machine readable code comprises a merchant identifier, identifiers of the items purchased, a total transaction amount, sales tax being charged on the transaction, or a transaction identifier. 
     
     
         22 . The method of  claim 21  wherein the machine readable code comprises the merchant identifier. 
     
     
         23 . The method of  claim 19  wherein the merchant processing device does not receive an identifier for the customer or a payment account number of the customer. 
     
     
         24 . The method of  claim 19  wherein the merchant processing device is a POS terminal. 
     
     
         25 . The method of  claim 24  wherein the machine readable code is a barcode. 
     
     
         26 . A merchant processing device comprising:
 a processor; and   a computer readable medium, the computer readable medium comprising code, executable by the processor to implement a method including:   requesting a machine readable code from a payment system, wherein the machine readable code is associated with one or more products for purchase;   receiving the machine readable code from the payment system;   displaying the machine readable code to a mobile communications device operated by a customer, wherein the mobile communications device obtains and transmits the machine readable code to the payment system, and the payment system requests a personal identifier from the customer and verifies the personal identifier; and   receiving an authorization message from the payment system indicating that the customer is authorized to purchase the one or more products after the payment system verifies the personal identifier.   
     
     
         27 . The merchant processing device of  claim 26  wherein the mobile communications device is a mobile phone. 
     
     
         28 . The method of  claim 26  wherein the machine readable code comprises a merchant identifier, identifiers of the items purchased, a total transaction amount, sales tax being charged on the transaction, or a transaction identifier. 
     
     
         29 . The method of  claim 28  wherein the machine readable code comprises the merchant identifier. 
     
     
         30 . The method of  claim 26  wherein the merchant processing device does not receive an identifier for the customer or a payment account number of the customer. 
     
     
         31 . The method of  claim 26  wherein the merchant processing device is a POS terminal. 
     
     
         32 . The method of  claim 26  wherein the machine readable code is a barcode. 
     
     
         33 . A method comprising:
 receiving, by a mobile communications device, data associated with a barcode from a merchant processing device;   transmitting, by the mobile communications device, in a communication, the data associated with the barcode to a payment system, wherein the payment system identifies a customer account from the communication;   receiving, by the mobile communications device, an identity challenge; and   providing, by the mobile communications device, an authentication response to the identity challenge, wherein the payment system charges the customer account after validating the authentication response.   
     
     
         34 . The method of  claim 33  wherein the mobile communications device is a mobile phone. 
     
     
         35 . The method of  claim 33  wherein the communications is an SMS message. 
     
     
         36 . The method of  claim 35  wherein the identity challenge is in the form of a phone call. 
     
     
         37 . The method of  claim 33  wherein the bar code conveys a merchant identity, identities of items purchased, taxes, and a total amount of a transaction. 
     
     
         38 . The method of  claim 33  wherein merchant processing device displays the barcode.