How Mobile Phones Can Securely Authorize Payments Using Random ID Codes

A 2006 system that uses a mobile phone to receive and relay a unique, temporary ID code to a store terminal to verify and authorize a payment transaction.

What it covers

The system creates a secure loop between a user's phone, a store's transaction terminal, and a central account server. When a user initiates a purchase, the account server generates a one-time Random ID (RID) and sends it to the user's mobile phone. The user then transfers this RID to the store's terminal—via methods like Bluetooth, infrared, or by displaying it as a barcode for scanning. The store terminal sends the RID back to the account server, which confirms the match to authorize the payment.

What it doesn't cover

• —Does not cover payment systems that rely on static account numbers or credit card magnetic stripes without the RID verification loop.
• —Does not cover biometric authentication (like fingerprint or facial recognition) as the primary verification mechanism.
• —Does not cover direct peer-to-peer payments that bypass the central account server and transaction server architecture described in the claims.

The clever bit

The system uses the mobile device as a secure relay for a temporary token, effectively turning the phone into a dynamic 'key' that must be present at the physical point of sale to complete the transaction.

Why it matters

This patent describes an early architecture for mobile-based payment verification, predating the widespread adoption of modern mobile wallets. It reflects a period when developers were solving the problem of how to securely bridge the gap between a user's mobile device and a physical point-of-sale terminal.

Real-world examples

• 1.Mobile wallet barcode payment systems
• 2.Point-of-sale systems requiring a one-time code from a mobile app
• 3.Digital ticketing systems using dynamic QR codes