Network-based system

• US 7,483,858 B2
• Filed: 08/12/2002
• Issued: 01/27/2009
• Est. Priority Date: 02/11/2000
• Status: Active Grant

• Current Assignee: Internet Payments Patents Limited
• Original Assignee: Internet Payments Patents Limited
• Inventors: Corcoran, Joseph Patrick, Foran, John Anthony
• Primary Examiner(s): Abdi, Kambiz
• Assistant Examiner(s): Maguire, Lindsay M.
• Application Number:
  US10/216,225
• Publication Number:
  US 20030126064A1
• Time in Patent Office: 2,360 Days
• Field of Search: 705/39
• 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 20/04 Payment circuits
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/363 with the personal data of a user
• 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 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G07F 7/0866 by active credit-cards adapted therefor G07F7/1008 takes precedence

Abstract

A transaction settlement system and method for internet and other trading over a telecommunications network. Customer computers and merchant computers are connected to customer account servers and merchant account servers respectively, the former maintains a customer account and conducts the financial aspects of the transaction with the merchant server without revealing the customers identity. The sequence of the messages are such that once in message M4, the customer computer instructs the customer accounts server to accept the transaction and the customer accounts server accepts it, the customer accounts server deals with the merchant accounts server to settle the account in accordance with agreed procedures. The merchant can have surely of payment. There is also provided methods to deliver coupons, e.g. discount coupons and to ship goods with anonymity.

Claims

1. A method of conducting a transaction in a trading system, where a merchant sends any of goods and services to a customer, using a customer accounts server;

a merchant accounts server;

a system services server;

a merchant computer having an associated merchant account;

a customer computer having an associated customer account; and

a telecommunications network interconnecting the customer accounts server, the merchant accounts server, the system services server, the merchant computer, and the customer computer, each having a unique identifier for contact within the telecommunications network, the method comprising the steps of;

the customer computer opening communications with the merchant computer,

the customer computer communicating its intention to purchase from the merchant computer, the customer computer not requiring installation of any new software to communicate its intention to purchase from the merchant computer, the customer computer not revealing any information usable to secure customer payment to the merchant computer;

the merchant computer sending a merchant transaction identifier number and payment request to the customer computer;

the customer computer initiating contact with the customer accounts server and sending to the customer accounts server a customer transaction acceptance message which includes the merchant transaction identifier number and the payment request;

the merchant computer initiating contact with the merchant accounts server and sending to the merchant accounts server a merchant transaction acceptance message including the merchant transaction identifier number and the payment request;

the customer accounts server initiating contact with the merchant accounts server and sending to the merchant accounts server a payment acceptance message including the merchant transaction identifier number and the payment request;

the merchant accounts server matching the merchant transaction acceptance message received from the merchant computer and the payment acceptance message received from the customer accounts server, and

the merchant accounts server sending instructions to the system services server to cause payment to the merchant in accordance with an agreed settlement procedure having agreed payment rules.

2. A method of conducting a transaction in a trading system, where a merchant sends any of goods and services to a customer, using a customer accounts server;

a merchant accounts server;

a system services server;

a merchant computer having an associated merchant account;

a customer computer having an associated customer account and a telecommunications network interconnecting the customer accounts server, the merchant accounts server, the system services server, the merchant computer, and the customer computer, each having a unique identifier for contact within the telecommunications network, the method comprising the steps of;

the customer computer opening communications with the merchant computer;

the customer computer communicating its intention to purchase from the merchant computer, the customer computer not requiring installation of any new software to communicate its intention to purchase from the merchant computer, the customer computer not revealing any information usable to secure customer payment to the merchant computer;

the merchant computer sending a merchant transaction identifier number and payment request to the customer computer;

the customer computer initiating contact with the customer accounts server and sending to the customer accounts server a customer transaction acceptance message which includes the merchant transaction identifier number and the payment request;

the customer computer accepting the transaction by sending an acknowledgment message to the merchant computer;

the merchant computer initiating contact with the merchant accounts server and sending to the merchant accounts server a merchant transaction acceptance message including the merchant transaction identifier number and the payment request;

the customer accounts server initiating contact with the merchant accounts server and sending to the merchant accounts server a payment acceptance message including the merchant transaction identifier number and the payment request;

the merchant accounts server matching the merchant transaction acceptance message received from the merchant computer and the payment acceptance message received from the customer accounts server; and

the merchant accounts server sending instructions to the system services server to cause payment to the merchant in accordance with an agreed settlement procedure having agreed payment rules.

3. The method of claim 2 in which when sending the acknowledgement message the customer computer adds a customer audit identifier.

4. The method of claim 2 in which the merchant accounts server sends matching confirmation of the merchant transaction acceptance message and the payment acceptance message to the merchant computer and to the customer accounts server.

5. The method of claim 2 further comprising the steps of:

preparing the customer account including payment credit limit rules for the customer;

storing the customer account as an account control application in the customer accounts server;

downloading the account control application to the customer computer;

storing the account control application on the customer computer; and

subsequently on receiving the merchant transaction identifier number and the payment request from the merchant computer, the customer computer sending the payment request to the account control application and only if the payment request is within the payment credit limit rules does the customer computer carry out the step of accepting the transaction and the customer account is debited.

6. The method of claim 2 in which, on the merchant computer sending the merchant transaction identifier number and the payment request to the customer computer, the merchant computer sends product and billing information as a product identifier, being part of the merchant transaction identifier number, to the customer computer.

7. A trading system for carrying out a transaction between a merchant and a customer over a communications network, the system comprising:

a system services server;

a customer accounts server for connection to a customer computer; and

a merchant accounts server for connection to a merchant computer,

the merchant accounts server being configurable to receive a merchant transaction acceptance initiated by the merchant computer that includes a merchant transaction identifier number and a payment request;

the customer accounts server being configurable to receive a customer transaction acceptance initiated by the customer computer that includes the merchant transaction identifier number and the payment request, the merchant transaction identifier number and the payment request having been received by the customer computer from the merchant computer upon the customer computer communicating an intent to purchase from the merchant computer, the customer computer not requiring installation of any new software to communicate its intention to purchase from the merchant computer, the customer computer not revealing any information usable to secure customer payment to the merchant computer; and

the system services server being configurable to initiate payment to the merchant on behalf of the customer upon the merchant transaction acceptance matching the customer transaction acceptance.

8. A method of conducting a transaction in a trading system, where a merchant sends any of goods and services to a customer, using a customer accounts server;

a merchant accounts server;

a system services server;

a merchant computer having an associated merchant account;

a customer computer having an associated customer account; and

a telecommunications network interconnecting the customer accounts server, the merchant accounts server, the system services server, the merchant computer, and the customer computer, each having a unique identifier for contact within the telecommunications network, the method comprising the steps of;

the customer computer opening communications with the merchant computer,

the customer computer communicating its intention to purchase from the merchant computer;

the merchant computer sending a merchant transaction identifier number and payment request to the customer computer;

the customer computer initiating contact with the customer accounts server and sending to the customer accounts server a customer transaction acceptance message which includes the merchant transaction identifier number and the payment request;

the merchant computer initiating contact with the merchant accounts server and sending to the merchant accounts server a merchant transaction acceptance message including the merchant transaction identifier number and the payment request;

the customer accounts server initiating contact with the merchant accounts server and sending to the merchant accounts server a payment acceptance message including the merchant transaction identifier number and the payment request;

the merchant accounts server matching the merchant transaction acceptance message received from the merchant computer and the payment acceptance message received from the customer accounts server, and

the merchant accounts server sending instructions to the system services server to cause payment to the merchant in accordance with an agreed settlement procedure having agreed payment rules.

9. The method of claim 8 in which the customer computer accepts the transaction identifier number and the payment request from the merchant computer by sending an acknowledgement message that includes a customer audit identifier to the merchant computer.

10. The method of claim 9 in which the merchant accounts server sends matching confirmation of the merchant transaction acceptance message and the payment acceptance message to the merchant computer and to the customer accounts server.

11. The method of claim 10 in which, prior to the customer accounts server sending the payment acceptance message, the customer accounts server causes the customer account to be debited.

12. The method of claim 10 further comprising the steps of:

preparing the customer account including payment credit limit rules for the customer;

storing the customer account as an account control application in the customer accounts server; and

downloading the account control application to the customer computer and storing the account control application on the customer computer.

13. The method of claim 10 in which, on the merchant computer sending the merchant transaction identifier number and payment request to the customer computer, the merchant computer sends product and billing information as a product identifier with the merchant transaction identifier number and payment request to the customer computer.

14. The method of claim 10 in which, when the transaction requires physical delivery of goods to the customer by way of a package entrusted to an agreed shipper having a shipper computer connected to the telecommunications network, the steps are further performed of:

the customer accounts server, on sending the payment acceptance message to the merchant accounts server stipulating that payment is subject to proof of delivery as a payment rule;

on delivery, the shipper computer sending confirmation of delivery to the customer accounts server; and

the customer accounts server sending the confirmation of delivery to the system services server to cause the agreed settlement procedure to be updated.

15. The method of claim 10 in which when the transaction requires the customer to pay an additional sum by way of taxation to a government body, the steps are further performed of:

the merchant computer sending with the merchant transaction identifier number and the payment request, product identification;

calculating a tax amount due from the product identification and the payment request;

adding the tax amount due to the payment request as a consolidated payment request; and

on sending of the customer transaction acceptance message to the customer accounts server, the customer accounts server sending instructions to the system services server to cause payment of the tax amount due to the government body.

16. The method of claim 10 in which when the transaction requires the customer to pay an additional sum by way of taxation to a government body, the steps are further performed of:

the merchant computer sending to the customer computer with the merchant transaction identifier number and the payment request, product identification;

the customer computer sending to the system services server the payment request and the product identification;

the system services server calculating a tax amount due from the product identification and the payment request; and

the system services server sending the tax amount due to the customer computer to form a consolidated payment request; and

on sending of the customer transaction acceptance message to the customer accounts server, the customer accounts server sending instructions to the system services server to cause payment of the tax amount due to the government body.

17. The method of claim 10, further comprising the steps of:

the merchant computer opening communications with the system services server;

the merchant computer sending a coupon having a monetary value and redemption rules to the system services server;

the system services server sending the coupon to the customer computer;

the customer computer sending the coupon to the customer accounts server on sending the transaction acceptance message;

the customer accounts server sending the coupon to the merchant accounts server;

the merchant accounts server accepting the coupon to be used as at least part payment; and

the merchant accounts server sending the coupon to the system services server on sending instructions to the system services server to cause payment to the merchant.

18. The method of claim 10, further comprising the steps of:

the merchant computer opening communications with the system services server;

the merchant computer sending a customer specific coupon having a monetary value and redemption rules to the system services server, together with a merchant transaction identifier number used to identify the customer computer to whom the customer specific coupon is to be sent;

the system services server sending the customer specific coupon to the customer computer;

the customer computer sending the customer specific coupon to the customer accounts server on sending the transaction acceptance message;

the customer accounts server sending the customer specific coupon to the merchant accounts server;

the merchant accounts server accepting the customer specific coupon to be used as at least part payment; and

the merchant accounts server sending the customer specific coupon to the system services server on sending instructions to the system services server to cause payment to the merchant.

19. The method of claim 8 in which the settlement procedure comprises the steps of:

the system services server setting up a merchant account;

the merchant accounts server storing the payment acceptance message as an account receivable due for payment in accordance with the agreed payment rules;

the merchant accounts server sending to the system services server the accounts receivable requiring settlement; and

the system services server crediting the merchant account with the payment due.

20. The method of claim 8 in which the merchant accounts server sends confirmation of matching the payment acceptance message and the merchant transaction acceptance message to the customer accounts server.

21. The method of claim 8 further comprising the steps of:

preparing the customer account including payment credit limit rules for the customer;

storing the customer account as an account control application in the customer accounts server;

downloading the account control application to the customer computer;

storing the account control application on the customer computer;

on receiving the merchant transaction identifier number and the payment request from the merchant computer, the customer computer sending the payment request to the account control application; and

only if the payment request is within the payment credit limit rules, the customer computer accepting the transaction.

22. The method of claim 8 in which, on the merchant computer sending the merchant transaction identifier number and payment request to the customer computer, the additional steps are performed of:

the merchant computer sending product and billing information to the merchant accounts server,

the merchant accounts server sending the product and billing information to the customer accounts server, and

the customer accounts server sending the product and billing information to the customer computer.

23. The method of claim 8, further comprising the steps of:

the merchant computer opening communications with the system services server;

the merchant computer sending a coupon having a monetary value and redemption rules to the system services server;

the system services server sending the coupon to the customer computer;

the customer computer sending the coupon to the customer accounts server on sending the transaction acceptance message;

the customer accounts server sending the coupon to the merchant accounts server;

the merchant accounts server accepting the coupon to be used as at least part payment; and

the merchant accounts server sending the coupon to the system services server on sending instructions to the system services server to cause payment to the merchant.

24. The method of claim 8, further comprising the steps of:

the merchant computer opening communications with the system services server;

the merchant computer sending a customer specific coupon having a monetary value and redemption rules to the system services server, together with a merchant transaction identifier number used to identify the customer computer to whom the customer specific coupon is to be sent;

the system services server sending the customer specific coupon to the customer computer;

the customer computer sending the customer specific coupon to the customer accounts server on sending the transaction acceptance message;

the customer accounts server sending the customer specific coupon to the merchant accounts server;

the merchant accounts server accepting the customer specific coupon to be used as at least part payment; and

the merchant accounts server sending the customer specific coupon to the system services server on sending instructions to the system services server to cause payment to the merchant.