# 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. - **Patent:** US 7577616 - **Original title:** Method and apparatus of secure authentication and electronic payment through mobile communication tool - **Owner:** Individual - **Granted:** 2009 - **Status:** Public domain (expired) - **Times cited:** 17 - **Field:** consumer_electronics, software, telecommunications, finance, ecommerce ## What it does 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 does NOT 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. ## 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 ## 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. ## Frequently asked questions ### What does How Mobile Phones Can Securely Authorize Payments Using Random ID Codes cover? 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. ### Who owns patent US 7577616? Individual owns this patent, granted in 2009. ### When does this patent expire? This patent is expected to expire on September 18, 2026, when the invention enters the public domain. ### What is patent US 7577616 cited by? This patent has been cited by 17 later patents that build on its ideas. ### What problem does this patent solve? 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. ### What does this patent NOT cover? Does not cover payment systems that rely on static account numbers or credit card magnetic stripes without the RID verification loop. **Full plain-English explainer:** https://patentbrief.org/patent/us/7577616/method-and-apparatus-of-secure-authentication-and-electronic-payment-through-mobile-communication-tool **Original patent:** https://patents.google.com/patent/US7577616 --- _Source: PatentBrief — https://patentbrief.org. Patent facts are from public records; the plain-English explanation is PatentBrief's._ ## Related patents Semantically similar inventions in the PatentBrief corpus: - [Central Bank Digital Currency for Phones and Watches](https://patentbrief.org/patent/us/10147076/airbnb-experiences) — This patent describes a system for using a central bank-issued digital currency on mobile devices, generating a special 3D code for payments that can be scanned or read via near field communication. - [How Square Uses Your Phone's Location to Verify Credit Card Payments](https://patentbrief.org/patent/us/10198731/shopify-e-commerce-platform) — A system that uses GPS data from a customer's smartphone to confirm they are physically present at a store during a credit card transaction to reduce fraud. - [How Mobile Devices Use Tags to Close Restaurant Checks](https://patentbrief.org/patent/us/10559047/systems-and-methods-for-facilitating-closing-of-a-check) — A system for restaurant servers to open and close customer tabs by tapping a mobile device against a physical tag at a table. - [How Amazon's One-Click Ordering Works for Online Purchases](https://patentbrief.org/patent/us/5960411/amazon-one-click) — Amazon's 1999 patent describes how a customer can buy an item online with just one click, bypassing a traditional shopping cart by using pre-stored payment and shipping information. - [Securing Data Storage Commands with Passcodes](https://patentbrief.org/patent/us/10102356/macos-dark-mode) — This patent describes a system for securely executing commands on data storage systems by requiring a generated passcode, which is based on user authentication and specific storage entity attributes.