SECURE ELECTRONIC PAYMENT METHOD FOR FRAUD REDUCTION AND REDUCED TRANSACTION COSTS

摘要

A transaction payment method conducted through a computer network provides a substantial reduction in fraud, transaction cost and complexity. A user (84) establishes an account with a transaction service company (92) and submits rigorous validation of identity and financial accounts. A secure communication channel is established between the user and the transaction service company. The user establishes a credit, debit or other account at a financial institution (86) and provides account information to the transaction service company. When the user purchases merchandise at a vendor site (88), the user specifies the transaction service company as the method of payment. The vendor transmits a purchase confirmation number to the user and sends the purchase confirmation number and purchase amount to the transaction service company. The user then communicates the purchase confirmation number through the secure channel to the transaction service company, which verifies availability of funds and authorizes the transaction.