Secure and efficient payment processing system

A method of processing transactions carried out over a network between account holders and participating entities, said method comprising the steps of:

• (a) obtaining restriction instructions from account holders;
• (b) receiving a purchase request of a buyer from a participating entity indicating that the buyer desires to carry out a transaction with the entity, said transaction including the buyer purchasing one or more selected items;
• (c) authenticating the buyer as an account holder;
• (d) receiving transaction details from the participating entity, said transaction details including one or more terms for the purchase;
• (e) authorizing completion of the transaction and establishing an authorization code therefor;
• and,
• (f) communicating the authorization code for the transaction to the participating entity.

A method of processing transactions carried out over a network between account holders and participating entities, said method comprising the steps of:

• (a) receiving a purchase request of a buyer from a participating entity indicating that the buyer desires to carry out a transaction with the entity, said transaction including the buyer purchasing one or more selected items;
• (b) authenticating the buyer as an account holder;
• (c) receiving transaction details from the participating entity, said transaction details including a cost for the purchase;
• (d) authorizing, via a processor, completion of the transaction and establishing an authorization code therefor, wherein authorizing completion of the transaction and establishing an authorization code therefor includes:
• transmitting the transaction details of the authenticated account holder directly to a funding source which determines if the account holder has one of sufficient funds on deposit with the funding source or sufficient credit available through the funding source to cover the cost of the purchase;
• and,
• receiving the authorization code from the funding source;
• and,
• (e) communicating the authorization code for the transaction to the participating entity.