MOBILE SYSTEM AND METHOD FOR PAYMENTS AND NON-FINANCIAL TRANSACTIONS

• US 20120016731A1
• Filed: 07/19/2011
• Published: 01/19/2012
• Est. Priority Date: 07/19/2010
• Status: Active Grant

• Current Assignee: Payme inc.
• Original Assignee: Payme inc.
• Inventors: Smith, Randy, Hornbostel, Earl, Valenzuela, Steve, Young, Ryan
• Granted Patent: US 8,635,157 B2
• Time in Patent Office: Days
• US Class Current: 705/14.33
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/204 comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit
• CPC Class Codes: G06Q 20/3223 Realising banking transactions through M-devices
• CPC Class Codes: G06Q 20/387 Payment using discounts or coupons relating to marketing G06Q30/02
• CPC Class Codes: G06Q 30/0233 Method of redeeming a frequent usage reward
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions

Abstract

A method and system for mobile commerce, communication, and transaction processing to real-world POS. web, e-commerce, virtual terminal, mobile personal digital assistant, mobile phone, mobile device, or other computer based transactions involving either one or both financial and non-financial such as loyalty based transactions as a mobile payment system is described. One embodiment comprises using a mobile phone via a consumer mobile software application (CMA) in lieu of a consumer card (examples include physical, virtual, or chips) to conduct payment transactions in the Real or Virtual World of commerce. An embodiment is related to making payments to real-world stores via having the CMA on a mobile device on behalf of the consumer present to conduct transactions and no physical card required.

Claims

1. A mobile payment system, comprising:

a merchant POS system;

a TPPN comprising a processing platform, card association, or other processing host for the formal authorization and settlement of customer and merchant payment information;

a TAS that coordinates the activities among a customer device that hosts a CMA, the merchant POS system, and the TPPN, in order to authorize and void transactions; and

a terminal ID that is read by the customer and entered into the CMA for linking the customer and merchant upon the transaction reaching the TAS.

2. The mobile payment system of claim 1, wherein the TPPN provides additional features and functionalities including transaction reporting, cardholder data storage, fraud screening and protection, and related processing offerings.

3. The mobile payment system of claim 1, wherein the TAS stores and retrieves loyalty information from a loyalty data store that is used by the merchant to offer discounts and additional services to the customer through the customer device.

4. The mobile payment system of claim 1, wherein the TAS stores tokenized versions of the customer'"'"'s payment methods in a tokenized payment method data store.

5. The mobile payment system of claim 1, further comprising a tender type button for initiating a transaction by the merchant POS or payment system.

6. The mobile payment system of claim 5, wherein the button processes the transaction with the mobile payment service provider'"'"'s IIN and forwards it to TAS (directly from POS or indirectly such as through middleware, frontend switch, gateway, processor, payment networks, or a backend switch

7. The mobile payment system of claim 5, wherein the button is replaced by the use of a mobile payment card comprising the mobile payment service provider'"'"'s IIN and merchant assigned card number and capable of being magnetically swiped through the merchant POS system.

8. The mobile payment system of claim 7, wherein the mobile payment card is replaced by the merchant keying in the merchant assigned card number at the merchant POS system.

9. The mobile payment system of claim 1, further comprising a virtual terminal including a standalone software or hardware device.

10. The mobile payment system of claim 9, wherein the standalone software or hardware device selected from the group consisting of:

a mobile personal digital assistant;

a mobile phone;

a mobile device; and

a computer based system, device or software application installed alongside the POS software and residing on the same platform and hardware of the merchant POS or existing as an independent device.

11. The mobile payment system of claim 1, wherein the customer device comprises a mobile device selected from the group consisting of:

an iPhone;

an iPad;

an iTouch;

an Android;

a Windows-based mobile device; and

a RIM Blackberry device.

12. The mobile payment system of claim 1, wherein the merchant communicates the terminal ID to the customer by posting a sticker, label, or other display of the terminal ID on or near the merchant POS.

13. The mobile payment system of claim 1, herein the terminal ID comprises a numeric value, a barcode, a QR barcode, or other representation consisting of a unique value for a transaction occurring at a point of time with the merchant and the specific terminal.

14. The mobile payment system of claim 1, wherein the terminal ID is transmitted to the customer device using Bluetooth, RFID, NFC, QR codes, or Two Factor Authentication.

15. The mobile payment system of claim 1, wherein the merchant POS system comprises a POS system used for electronic commerce or a conventional POS system located in a real world store.

16. A method for a user to permit a pre-authorization transaction at a merchant POS, comprising:

opening a CMA;

entering a user PIN;

selecting a specific merchant listed in the CMA;

selecting a method of payment available to the user;

entering a virtual table, ticket, invoice, or order number assigned by he merchant POS; and

selecting a payment button.

17. A method for performing a transaction using a mobile payment system including a merchant POS system, a TPPN comprising a processing host for the formal authorization and settlement of customer and merchant payment information, a TAS that coordinates the activities among a customer device, the merchant POS system, and the TPPN, in order to authorize and void transactions, and a terminal ID that is entered into the CMA for linking the customer and merchant upon the transaction reaching the TAS, the method comprising:

receiving a transaction from a customer device that hosts a CMA at the TAS for a purchase at the merchant POS;

storing the transaction at the TAS as a pending transaction;

the merchant POS submitting a transaction to the TAS such that the next available pending transaction with the same terminal ID for that merchant completes the additional authentication step;

submitting the transaction to the TPPN for account authorization.

18. The method of claim 17, further comprising providing historical transactions for review by the customer and merchants as facilitated by the TAS.

19. The method of claim 17, wherein the account authorization comprises a sufficient or non-sufficient fund verification.

20. The method of claim 17, wherein the CMA enables a function to allow the customer to send a payment to any other mobile payment service provider'"'"'s customers, thus creating a customer-to-customer transaction relationship.

21. The method of claim 17, further comprising allowing the customer to utilize the CMA to access an ATM for performing a consumer financial transaction.

22. The method of claim 21, wherein the consumer financial transaction comprises making a cash withdrawal.

23. The method of claim 21, wherein the consumer financial transaction comprises making a cash withdrawal making a cash deposit.