How Online Systems Verify Your Identity Using External Data

A system for verifying user identity and payment details in an online environment by pulling data from external sources and generating virtual payment tokens.

What it covers

The patent describes a process for verifying user attributes, such as credit card details, within an online environment. When a user registers, they provide encrypted attribute data (like a name and credit card number) from their computer to a central server. The server then forwards this encrypted data to an external verification source, which confirms the information automatically without human intervention. Once verified, the server sends a 'virtual payment' token back to the user's device, which the user can then transmit to a merchant via a wireless signal to complete a transaction.

What it doesn't cover

• —Does not cover verification methods that require human intervention or manual review.
• —Does not cover systems where the verification source is the user themselves or the user's own computer.
• —Does not cover non-encrypted transmission of credit card or name attribute values.
• —Does not cover transactions that do not involve the generation of virtual payment information.

The clever bit

The system offloads the trust burden by using external sources to verify data in an automated, encrypted loop, then replaces sensitive raw data with a 'virtual payment' token before the merchant ever sees it.

Why it matters

This patent addresses the challenge of securely verifying user credentials in digital marketplaces without exposing raw financial data to merchants. By acting as a middleman that validates data against external sources and issues tokens, it aims to reduce fraud and improve privacy in online transactions.

Real-world examples

• 1.Digital wallet services like Apple Pay or Google Pay
• 2.Third-party identity verification services for e-commerce
• 3.Tokenized payment gateways used in mobile apps