Visa sued over online authentication

Two technology companies have sued Visa USA and Visa International Service Association, claiming that the credit card companies...

Two technology companies have sued Visa USA and Visa International Service Association, claiming that the credit card companies stole their patented authentication technology for online transactions.

Starpay.com, of Oklahoma, and VIMachine, of Delaware, claimed they shared information on a patented payer authentication technology with Visa and that Visa subsequently filed its own application for a patent based on that information.

The companies also alleged that Visa's payer authentication service makes use of their patented technology, according to a copy of the complaint, which was filed in court last week.

Starpay and VIMachine are seeking unspecified damages. No one from Visa USA or Visa International could be reached for comment late Friday.

The patent in question covers a system in which a transaction administrator, such as a credit card company, sits between an online supplier and a buyer to confirm a transaction when a purchase is made.

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