Secure transaction system and method utilized therein

A system for authenticating a transaction and at least one party to the transaction comprising:

• means for coding information relevant to a transaction with information associated with at least one party to the transaction for generating a variable authentication number (VAN), the information associated with the at least one party comprising encoded authentication information deriveable from a predetermined secret code and a predetermined non-secret code, the encoded authentication information being previously generated by encrypting a personal identification number (PIN which is unrecoverable within the transaction system;
• means for associating the VAN with the transaction;
• means for deriving the encoded authentication information using the predetermined secret code and the predetermined non-secret code;
• and
• means for authenticating the VAN associated with the transaction by using the derived coded authentication information and the information relevant to the transaction.

A system for processing multiple party transactions comprising:

• means for receiving a signal representative of information derived from a personal identification number (PIN) associated with at least one party to a transaction and for receiving a signal representative of other information relevant to the transaction and for generating therefrom a signal representative of a variable authentication number (VAN);
• means for associating the VAN with the transaction;
• means for receiving a signal representative of the PIN of a recipient party and for generating an encoded signal;
• means for receiving the decoded signal and signals representative of the VAN and of the other information relevant to the transaction, for determining whether the recipient party and the transaction are authentic and for authorizing the transaction only if the recipient party and the transaction are authenticated.

A system for automatically and instantaneously transferring funds from an account associated with an originator party to an account associated with a recipient party comprising:

• means for receiving from the originator party a personal identification number (PIN) associated with the originator party, information identifying the account of the originator party, information for identifying the account of the recipient party, and fund transfer information including a transfer amount;
• means for generating a variable authentication number (VAN) using the PIN of the originator party, the information identifying the account of the recipient party, and the fund transfer information;
• means for determining whether the originator party is authentic by using the PIN of the originator party;
• means for determining whether the fund transfer information is authentic by using the VAN;
• means for transferring funds from the account of the originator party to the account of the recipient party only if the originator party and the funds transfer information are both determined to be authentic;
• means for generating a redemption variable authentication number (RVAN) after the funds have been transferred to the account of the recipient party, the RVAN being generated using at least the funds transfer information;
• and
• means for associating the RVAN with the funds transfer such that the funds transfer is substantiated by the

A system for processing an invoice comprising:

• means for generating a variable authentication number (VAN) using at least information associated with an invoice, the information associated with the invoice including information identifying an account of a payee party and payment information including at least a payment amount;
• means for recording the VAN and the information associated with the invoice on the invoice;
• means for receiving the VAN and a personal identification number (PIN) from a payor party to the invoice, the received PIN being unrecoverable in the system;
• means for determining whether the payor party and the VAN are authentic by using the information associated with the invoice and the received PIN;
• means for receiving from the invoice the information identifying the account of the payee party and the payment information;
• and
• means for transferring the payment amount to the account of the payee party from funds associated with the payor party only if the payor party and the VAN are determined to be authentic.