Payment system and method for use in an electronic commerce system

• US 7,146,342 B1
• Filed: 11/24/2000
• Issued: 12/05/2006
• Est. Priority Date: 11/23/1999
• Status: Expired due to Term

• Current Assignee: Telefonaktiebolaget LM Ericsson
• Original Assignee: Telefonaktiebolaget LM Ericsson
• Inventors: Angelin, Lars, Carvalhal, Luiz Otavio, Haraldsson, Lars, Allfred, Christian, Undhagen, Andreas
• Primary Examiner(s): Reagan, James A
• Application Number:
  US09/718,411
• Time in Patent Office: 2,202 Days
• Field of Search: 705 51- 59, 705 74- 79, 705/1, 705/14, 705/16, 705/17, 705/26, 705/27, 705/35, 705 38- 44, 705 64- 67, 705 75- 80, 235379-381, 235/487, 380/30
• US Class Current: 705/76
• CPC Class Codes: G06Q 20/027 involving a payment switch or gateway
• CPC Class Codes: G06Q 20/085 involving remote charge determination or related payment systems
• CPC Class Codes: G06Q 20/0855 involving a third party
• 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 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• 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 20/367 involving electronic purses or money safes
• CPC Class Codes: G06Q 20/3672 initialising or reloading thereof
• CPC Class Codes: G06Q 20/3674 involving authentication
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 20/3821 Electronic credentials
• 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 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 30/0613 Third-party assisted
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 : Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 50/188 : Electronic negotiation

Abstract

A method and system of payment of goods and services in an electronic commerce system reduces the transfer and processing costs for each purchase made by a customer from a merchant. A customer agent, a merchant agent, and account manager associated with the agents administer customer accounts and merchant accounts. A mediating trusted agent associated with one of the account managers and merchant agent transactions during a trading session. The customer agent and merchant agent, the account manager, and the mediating trusted agent are interconnected by an electronic communication network.

Claims

1. A method of payment of goods and services in an electronic commerce system, utilizing at least a customer agent and a merchant agent, at least one account manager associated with said agents for administration of customer accounts and merchant accounts, and at least a mediating trusted agent associated with one of said account managers and said merchant agent for checking purchases made by a customer from a merchant, said customer agent, merchant agent, account manager, and mediating trusted agent being interconnectable by a communications network, comprising:

said merchant agent receiving an order of goods or service from said customer agent;

a customer account manager receiving an initiation message sent from said customer agent, said message including data for registration of said customer agent and order information;

said customer account manager processing the initiation message, and in response to receiving the initiation message, providing said customer agent with account data during a trading session being established between said customer agent and said merchant agent over the network;

said customer account manager amending the initiation message with the account data and forwarding said amended initiation message to said mediating trusted agent for registration of said customer;

said customer account manager delivering a deposit to said mediating trusted agent;

said merchant agent receiving an information message including said deposit;

in response to reception of at least one purchase order from said customer agent, said merchant agent determining whether the value of said at least one purchase equals or exceeds the value of the deposit received in the information message; and

when the value of at least one purchase equals or exceeds the value of the deposit, stopping the trading session,

wherein said initiation message includes an amount of the deposit, a transaction identity, the identity of the merchant, and an identity for locating a mediating trusted agent,

wherein said initiation message includes the deposit, a customer identifier, said transaction identity, and the identity of the merchant, and

wherein said information message includes the deposit, a trading session identity, and said customer identifier.

2. A method according to claim 1, wherein a plurality of purchase orders is executed within limit of said deposit.

3. A method according to claim 1, wherein the identity for locating a proper mediating trusted agent is of the merchant'"'"'s operator.

4. A method according to claim 1, wherein the deposit in the initiation message is in the customer currency.

5. A method according to claim 1, wherein the deposit in the information message is in the currency of the merchant, a trading session identity, and said customer identifier.

6. A method according to claim 1, wherein after the step of said mediating trusted agent sends an information message, said merchant acknowledges the customer and the associated deposit to said mediating trusted agent.

7. A method according to claim 6, further comprising:

said mediating trusted agent acknowledging the customer and the associated deposit to said customer account manager.

8. A method according to claim 7, wherein said acknowledging includes the current exchange rate and that said customer account manager forwards said exchange rate to the customer agent.

9. A method according to claim 1, wherein said customer account manager amending and forwarding said initiation message to said mediating trusted agent includes vouching for the customer.

10. A method according to claim 1, wherein stopping the trading session includes said merchant agent receiving a trading session terminate message sent by said customer agent or a timeout.

11. A method according to claim 10, further comprising:

said customer account manager sending a customer transaction record to said mediating trusted agent;

said merchant agent sending a merchant transaction record to the mediating trusted agent;

said mediating trusted agent comparing and evaluating said transaction records, resulting in clearing information;

said mediating trusted agent sending said clearing information to said customer account manager and a merchant account manager,

said customer account manager and a merchant account manager respectively sending said clearing information to said customer and said merchant, and based on said clearing information, processing said transaction records to a withdrawal record and a deposit record, respectively, storing the transaction records, and sending said withdrawal record to a customer billing system and said deposit record to a merchant billing system, respectively.

12. A method according to claim 1, wherein the trading session is stopped based on an instruction from said customer agent or merchant agent.

13. A payment system for use in an electronic commerce system, comprising a customer agent, a merchant agent, an account manager associated with said agents for administration of customer accounts and merchant accounts, and mediating trusted agent associated with one of said account manager and merchant agent for checking purchases made by a customer from a merchant, said customer agent and merchant agent, said account manager, and said mediating trusted agent being interconnectable by a communication network,

wherein said merchant agent is adapted to receive an order of goods or service from said customer agent,

said customer account manager is adapted to receive an initiation message sent from said customer agent, said message including data for registration of said customer agent and order information, said customer account manager being adapted to process the initiation message, and in response to receiving the initiation message, to provide said customer agent with account data during a trading session being established between said customer agent and said merchant agent over the network;

said customer account manager is adapted to amend the initiation message with the account data and forward said amended initiation message to said mediating trusted agent for registration of said customer, and to deliver a deposit to said mediating trust agent;

said merchant agent is adapted to receive an information message including said deposit;

in response to reception of at least one purchase order from said customer agent, said merchant agent is adapted to determine whether the value of said at least one purchase equals or exceeds the value of the deposit received in the information message; and

one or both of said merchant agent and customer agent is adapted to stop the trading session when the value of at least one purchase equals or exceeds the value of the deposit,

wherein said initiation message includes an amount of the deposit, a transaction identity, the identity of the merchant, and an identity for locating a proper mediating trusted agent,

wherein said amended initiation message includes the deposit, a customer identifier, said transaction identity, and the identity of the merchant, and

wherein said information message includes the deposit, a trading session identity, and said customer identifier.

14. A payment system according to claim 13, wherein said account manager and said mediating trusted agent are separate modules.

15. A payment system according to claim 13, wherein a plurality of transactions is executable within the limit of said deposit.

16. A payment system according to claim 13, wherein said initiation message includes the identity of the merchant'"'"'s operator for locating a mediating trusted agent.

17. A payment system according to claim 13, wherein said initiation message includes the deposit in the customer currency.

18. A payment system according to claim 13, wherein said information message includes the deposit in the currency of the merchant.

19. A payment system according to claim 13, wherein said merchant agent is adapted to acknowledge the customer and the associated deposit to said mediating trusted agent.

20. A payment system according to claim 19, wherein said mediating trusted agent is adapted to acknowledge the customer and the associated deposit to said customer account manager.

21. A payment system according to claim 20, wherein said acknowledgement includes the current exchange rate, and wherein said customer account manager is adapted to forward said current exchange rate to the customer agent.

22. A payment system according to claim 13, wherein said customer account manager is adapted to vouch for the customer.

23. A payment system according to claim 13, wherein said merchant agent is adapted to receive a trading session terminate message sent by said customer agent.

24. A payment system according to claim 13, wherein said customer account manager is adapted to receive a customer transaction record sent by said customer agent;

said customer account manager is adapted to send said customer transaction record to said mediating trusted agent;

said merchant is adapted to send a merchant transaction record to the mediating trusted agent;

said mediating trusted agent is adapted to compare and evaluate said customer and merchant transaction records and generate clearing information;

said mediating trusted agent is adapted to send said clearing information to said customer account manager and a merchant account manager connected to said mediating trusted agent via said network;

said customer account manager and a merchant account manager are adapted to send said clearing information to said customer and said merchant, respectively;

based on said clearing information, said customer account manager is adapted to process said transaction records to a withdrawal record, store the transaction records, and send said withdrawal record to a customer billing system; and

based on said merchant clearing information, said account manager is adapted to process said transaction records to a deposit record, store the transaction records, and send said deposit record to a merchant billing system.

25. A payment system according to claim 13, wherein one or both said merchant agent and customer agent is adapted to stop the trading session by its own initiative.