Cellular telephone based payment apparatus and method for use in purchase of good and services

• US 20060080232A1
• Filed: 05/27/2005
• Published: 04/13/2006
• Est. Priority Date: 10/08/2004
• Status: Abandoned Application

• Current Assignee: Laves Wireless Holdings LLC (Intellectual Ventures LLC)
• Original Assignee: Laves Wireless Holdings LLC (Intellectual Ventures LLC)
• Inventors: Epps, Randy
• Application Number:
  US11/140,443
• Publication Number:
  US 20060080232A1
• Time in Patent Office: Days
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• CPC Class Codes: G06Q 20/322 Aspects of commerce using mobile devices [M-devices]
• CPC Class Codes: G06Q 20/3224 Transactions dependent on location of M-devices
• CPC Class Codes: G06Q 20/3227 using secure elements embedded in M-devices
• CPC Class Codes: G06Q 20/327 Short range or proximity payments by means of M-devices
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 20/401 Transaction verification
• CPC Class Codes: G06Q 20/425 using two different networks, one for transaction and one for security confirmation

Abstract

A cellular telephone is configured as a payment device for purchases from merchants, service providers and fast food establishments. The cellular device, in cooperation and interoperation with the cellular network and cellular service, providing a means for receiving credit authorization requests from merchants, reviewing the request, and approving or disapproving requests from the purchaser'"'"'s cellular phone. The cellular telephone payment device and network having capabilities of replacing conventional credit cards and cash payments at time of purchase to merchants and service providers.

Claims

1. A wireless cellular network payment apparatus equipped for receiving, display of credit purchase transaction and for approval or disapproval of the transaction, the apparatus comprising:

a wireless cellular network communications device having;

a keypad;

an alpha-numeric capable display;

a network data exchange protocol supporting data exchange between the cellular device and a cellular network service provider;

a processing means to receive, process and respond to the purchase transaction using the data exchange protocol;

a means to display a payment menu for purchaser approval of a received payment authorization request transaction;

a means for a purchaser to approve or disapprove the displayed payment authorization request transaction; and

a user modifiable security password for enabling authorization of a payment authorization request transaction.

2. The apparatus of claim 1, wherein the processing means is an application program developed for and executing upon the cellular device.

3. The apparatus of claim 2, wherein the cellular device is a cellular telephone.

4. The apparatus of claim 2 further comprising a RFID chip adapted to communicate purchaser'"'"'s credit account information to a merchant through near range radio frequency communication between a merchant'"'"'s RFID scanner and the RFID chip.

5. The apparatus of claim 4 further comprising a purchaser operable means on the cellular device for enabling and disabling the communication function of the RFID chip.

6. The apparatus of claim 2, wherein the cellular network service provider further comprises:

a billing agency having;

a server adapted to receive purchase payment authorization request transactions from one or more of merchants;

a means for generating a payment menu transaction;

a means for sending the payment menu transaction through cellular network to the purchaser'"'"'s cellular device;

a means for receiving a payment authorization approval transaction response from the purchaser'"'"'s cellular device over the cellular network;

a means for responding to the merchant'"'"'s purchase payment request transaction with an approval or disapproval transaction to the merchant; and

a means of accumulating purchase charges or billing the purchaser.

7. The apparatus of claim 3, wherein the processing means to receive and process purchase approval transactions on the cellular device comprises a cellular payment software application executing on the cellular device.

8. The apparatus of claim 3, wherein the processing means to receive and process purchase approval transactions on the cellular device comprises a cellular network downloadable cellular payment JAVA runtime applet loaded to and executing on the cellular device.

9. The apparatus of claim 1, wherein the cellular device is a cellular telephone;

and wherein the processing means to receive and process purchase approval transactions on the cellular device comprises a web browser executing on the cellular device communicating with a billing agency web server, said server providing web pages to the cellular device and said server equipped to process payment approval responses from the cellular device web browser.

10. The apparatus of claim 3, wherein the security password and payment approval input is provided to the cellular device verbally and the input is recognized using voice recognition.

11. The apparatus of claim 3, wherein the security password and payment approval input is provided to the cellular device using the cellular device keypad.

12. A method of using a cellular phone as a universal payment device, the method comprising:

selecting merchandise to be purchased;

informing a merchant that payment will be transacted by cellular telephone;

providing cellular identification data to the merchant;

sending an electronic payment authorization transaction initiated by the merchant using the cellular telephone identification provided;

receiving a request for payment authorization transaction at a cellular network service;

sending a payment authorization menu screen transaction from the cellular network service to the purchaser'"'"'s cell phone over the cellular network;

authorizing payment by the purchaser entering a secret password on the cell phone, reviewing the merchant information and purchase amount on the payment menu, and authorizing payment on the cellular phone;

receiving the payment approved transaction at the cellular service provider over the cellular network;

transmitting the payment approval information by transaction to the initiating merchant; and

charging the payment to the purchaser'"'"'s cellular service account.

13. The method of using a cellular telephone as a universal payment device of claim 12, wherein the cellular identification data is a cellular telephone number.

14. The method of using a cellular telephone as a universal payment device of claim 12, wherein the cellular identification data is a ghost ID number.

15. The method of using a cellular telephones as a universal payment device of claim 12 wherein the cellular identification data consists of purchaser account information contained on a RFID chip in the cellular phone, and the providing step further comprises reading the RFID account information data using a RFID scanning device.