System and method of purchasing products and services using prepaid wireless communications services account

• US 6,816,721 B1
• Filed: 04/05/2000
• Issued: 11/09/2004
• Est. Priority Date: 04/05/2000
• Status: Expired due to Fees

• Current Assignee: Nortel Networks Limited (Nortel Networks Corporation)
• Original Assignee: Nortel Networks Limited (Nortel Networks Corporation)
• Inventors: Rudisill, Luther
• Primary Examiner(s): Trost, William
• Assistant Examiner(s): Miller, Brandon J.
• Application Number:
  US09/543,630
• Time in Patent Office: 1,679 Days
• Field of Search: 455/406, 455/405, 455/407-408, 455/414.1, 455/403, 705/40, 705/44, 705/39, 379/114.03, 379/144.01, 379/114.26, 379/114.28
• US Class Current: 455/406
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/16 Payments settled via telecommunication systems
• CPC Class Codes: G06Q 20/28 Pre-payment schemes, e.g. "pay before"
• CPC Class Codes: G06Q 20/322 Aspects of commerce using mobile devices [M-devices]
• CPC Class Codes: G06Q 20/403 Solvency checks
• CPC Class Codes: H04M 15/8242 Transaction based
• CPC Class Codes: H04M 15/866 a predetermined or undetermined destination, e.g. notifying a prepaid accounting server of a successful delivery of a service
• CPC Class Codes: H04M 15/90 using Intelligent Networks [IN] or Advanced Intelligent Networks [AIN]
• CPC Class Codes: H04M 17/00 Prepayment of wireline communication systems, wireless communication systems or telephone systems using a coded card to authorise calls from a telephone set H04M1/675
• CPC Class Codes: H04M 2215/016 Billing using Intelligent Networks [IN] or Advanced Intelligent Networks [AIN]
• CPC Class Codes: H04M 2215/2026 Wireless network, e.g. GSM, PCS, TACS
• CPC Class Codes: H04M 2215/32 Involving wireless systems
• CPC Class Codes: H04M 2215/7846 Transaction based
• CPC Class Codes: H04M 2215/8195 a predetermined or undetermined destination, e.g. notifying a prepaid accounting server of a successful delivery of a service, a connection, or chargeable content to a mobile terminal
• CPC Class Codes: H04W 4/24 Accounting or billing

Abstract

System and method for enabling the purchase of products and services using a prepaid account associated with a wireless communications device are described. In a preferred embodiment, when a subscriber desires to pay for a transaction using a prepaid wireless communications services (“PWCS”) account associated with a wireless communications device, a telephone number of the device and the transaction amount are entered using a keypad of a card reader. The information is routed through a financial institution to a financial clearing house network based on the telephone number. The data is then routed through a financial interface of a wireless communications network to a service control point (“SCP”) containing the subscriber record associated with the telephone number. At the SCP, a determination is made whether there are sufficient funds in the subscriber'"'"'s prepaid account to cover the amount of the transaction. If so, the transaction is allowed and the subscriber'"'"'s account is debited in the amount of the purchase. Otherwise, the transaction is denied and the merchant is notified. In one aspect, before the PWCS account is debited, a short message service center (“SMSC”) connected to the SCP generates a message to the wireless communications device to obtain authorization of the transaction. An additional level of security may be provided by requiring the subscriber to enter a PIN number prior to allowing him or her to authorize or reject the transaction.

Claims

1. A method of paying a seller for a purchase transaction using a prepaid account associated with a wireless communications device, the method comprising:

receiving transaction information comprising a telephone number of the wireless communications device and a purchase amount by a device at a point-of-sale;

receiving the transaction information at a service control point (“

SCP”

) of a wireless communications network communicatively coupled to the point of sale device, the SCP maintaining a record identified by the telephone number indicating an account balance of the prepaid account;

determining whether the account balance is sufficient to cover the transaction;

responsive to a determination that the account balance is not sufficient to cover the transaction, denying the transaction;

responsive to a determination that the account balance is sufficient to cover the transaction, deducting a transaction amount from the account balance and sending a message to indicate a crediting of an account of the seller such that the seller is then paid for the purchase.

2. The method of claim 1 further comprising, responsive to a determination that the account balance is sufficient to cover the transaction and prior to the deducting, prompting the PWCS subscriber for authorization.

3. The method of claim 2 further comprising, responsive to a determination that the account balance is sufficient to cover the transaction and prior to the prompting, requiring the PWCS subscriber to enter a personal identification number (“

PIN”

).

4. The method of claim 1 wherein receiving transaction information further comprises:

receiving the transaction information via a keypad of the point of sale device communicatively coupled to a financial institution;

the financial institution routing the transaction information to the SCP via a financial clearing house network and a financial interface.

5. The method of claim 2 wherein prompting, for authorization comprises a short message service center (“

SMSC”

) sending text messages to the wireless communications device for presentation on a display thereof.

6. The method of claim 1 wherein the transaction amount includes the purchase amount and a transaction fee.

7. The method of claim 1 wherein the transaction information further includes a merchant ID identifying a seller in connection with the purchase transaction.

8. A system of paying a seller for a purchase transaction using a prepaid account associated with a wireless communications device, the system comprising:

means for receiving, at a service control point (“

SCP”

), transaction information comprising a telephone number of the wireless communications device and a purchase amount obtained by a point of sale device, the SCP maintaining a record identified by the telephone number indicating an account balance of the prepaid account;

means for determining whether the account balance is sufficient to cover the transaction;

means responsive to a determination that the account balance is not sufficient to cover the transaction for denying the transaction;

means responsive to a determination that the account balance is sufficient to cover the transaction for deducting a transaction amount from the account balance and sending a message to indicate a crediting of an account of the seller such that the seller is then paid for the purchase.

9. The system of claim 8 further comprising means responsive to a determination that the account balance is sufficient to cover the transaction for prompting the PWCS subscriber for authorization prior to the deducting.

10. The system of claim 9 further comprising means responsive to a determination that the account balance is sufficient to cover the transaction for requiring the PWCS subscriber to enter a personal identification number (“

PIN”

) prior to the prompting.

11. The system of claim 9 wherein the means for prompting comprises a short message service center (“

SMSC”

) for sending text messages to the wireless communications device for presentation on a display thereof.

12. The system of claim 8 wherein the transaction amount includes the purchase amount and a transaction fee.

13. The system of claim 8 wherein the transaction information further includes a merchant ID identifying a seller in connection with the purchase transaction.

14. A method of a payment transaction comprising:

receiving, at a service control point, transaction information comprising a number associated with a wireless communications device and a purchase amount obtained at a point of sale device;

determining whether a balance of an account associated with the number of the wireless communications device is sufficient to cover at least the purchase amount;

sending a deny message to the point of sale device in response to a determination that the account balance is not sufficient to cover at least the purchase amount;

sending a prompt for authorization to the wireless communications device in response to a determination that the account balance is sufficient to cover at least the purchase amount; and

sending a message to the point of sale device indicative of authorization of the payment transaction in response to receiving prompted authorization.