Electronic funds transfer method

• US 7,849,005 B2
• Filed: 02/14/2001
• Issued: 12/07/2010
• Est. Priority Date: 02/14/2000
• Status: Expired due to Fees

• Current Assignee: Yong Kin Ong
• Original Assignee: Yong Kin Ong
• Inventors: Ong, Yong Kin
• Primary Examiner(s): Apple; Kirsten S
• Assistant Examiner(s): Trotter; Scott S
• Application Number:
  US10/203,736
• Publication Number:
  US 20030055781A1
• Time in Patent Office: 3,583 Days
• Field of Search: 705/39, 705/64, 705/65, 705/67, 705/75, 705/76
• 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 20/367 involving electronic purses or money safes
• 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 20/401 Transaction verification

Abstract

A method of conducting an online transaction, said method including the steps of providing a transaction manager, registering a user with the transaction manager, registering a merchant with the transaction manager, the user requesting a unique transaction identifier from the transaction manager to cover the purchase, the transaction manager providing the user with a unique transaction identification, the user requesting the merchant for a transaction to purchase a product or service, the user providing the transaction identification to the merchant, the merchant providing the transaction identification to the transaction manager, the transaction manager validating the transaction identification, the transaction manager providing the merchant with a unique transaction number if the transaction identification is valid, and the transaction manager depositing payment into the merchant'"'"'s financial institution account.

Claims

1. A computer-implemented method of conducting an online transaction, said method comprising:

providing on a computer a transaction manager having a registration module for holding registration information of a user, and for holding registration information of a merchant;

an input;

a checking module;

an identification generator;

a validating module;

a transaction number generator module;

an output; and

a payment module;

registering a user with the transaction manager by storing registration information of the user in the registration module;

registering a merchant with the transaction manager by storing registration information of the merchant in the registration module;

receiving at the input of the transaction manager a request by the user for a unique transaction identifier to cover a purchase;

checking the validity of the user using the checking module;

outputting to the user a unique identification of a transaction generated by the identification generator from the output if the user is valid;

the user sending from a user computer to a computer associated with the merchant a request for a transaction to purchase a product or service, the request comprising the transaction identification and a user nominated account identifier;

receiving at the input of the transaction manager the transaction identification and the user nominated account identifier provided by the merchant computer;

confirming payment of the transaction in respect of a registered user'"'"'s financial institution account identified by the user nominated account identifier comprising validating the received transaction identification using the validating module, then outputting from the output to the merchant a unique transaction number generated by the transaction number generator module if the transaction identification is valid; and

causing an online payment to be made by an external financial institution deducting the payment from the user'"'"'s financial institution account identified by the account identifier and depositing the payment into the merchant'"'"'s financial institution account using the payment module when the received transaction identification is validated.

2. A method of conducting an online transaction as claimed in claim 1, wherein the transaction manager deducts money from a user'"'"'s account to cover the money paid to the merchant.

3. A method of conducting an online transaction as claimed in claim 2, wherein the transaction manager deducts money at the time of the request of the unique transaction identifier.

4. A method of conducting an online transaction as claimed in claim 2, wherein the transaction manager deducts money at the time of the transfer of money to the merchant.

5. A method of conducting an online transaction as claimed in claim 1, wherein the user'"'"'s account is with a financial institution.

6. A method of conducting an online as claimed in claim 1, wherein the user'"'"'s account is with the transaction-manager and the transaction manager is not a financial institution.

7. A method of conducting an online transaction as claimed in claim 1, wherein the transaction manager issues a new account from an account issue module, where the new account that corresponds to an existing account with a financial institution, whereby the new account details are used by the user and merchant in place of the existing account details.

8. A method of conducting an online transaction as claimed in claim 7, wherein the transaction manager uses the new account details to look up the existing account details in a database and the existing account details are used by the transaction manager to conduct the financial institution to deduct money to cover the purchase from the user'"'"'s existing account.

9. A method of conducting an online transaction as claimed in claim 1, wherein the user requests the unique transaction identifier by an Internet connection.

10. A method of conducting an online transaction as claimed in claim 1, wherein the user'"'"'s registration details are stored in a database of the transaction manager.

11. A method of conducting an online transaction as claimed in claim 10, wherein the merchant'"'"'s registration details are stored in the database including a unique merchant identification.

12. A method of conducting an online transaction as claimed in claim 10, wherein the user'"'"'s request for the unique transaction identifier is validated by the checking module checking the user'"'"'s details stored in the database of the transaction manager.

13. A method of conducting an online as claimed in claim 11, wherein when the merchant forwards the unique identification number to the transaction manager, the merchant'"'"'s unique identifier is sent to the transaction manager, whereby validating the merchant'"'"'s identification is checked by the validating module of the transaction manager before sending the transaction number to the merchant.

14. A method of conducting an online as claimed in claim 1, wherein the transaction manager checks if sufficient funds are available to cover the transaction and the transaction number is only provided to the merchant if sufficient funds are available.

15. A method of conducting an online transaction as claimed in claim 1, wherein the merchant links to the transaction manager by the Internet or a dedicated secure line to request the transaction number and the transfer of funds.

16. A method of conducting an online transaction as claimed in claim 1, wherein the link between the user and the transaction manager and merchant and transaction manager are secured by encryption performed by an encryptor module.

17. A computer implemented transaction manager for conducting an online transaction, said transaction manager comprising:

a computer, wherein said computer is configured to execute computer-executable code comprising;

a registration module for registering a user;

a merchant registration module for registering a merchant;

a user request input module for receiving a user request for a unique transaction identifier to cover a purchase;

a checking module for checking the validity of the user;

an identification generator that generates an unique transaction identification if the user is valid;

a transaction identification generator that generates a unique transaction identification;

a transaction identification input module for receiving the transaction identification and a user nominated account identifier after they have been provided by the user to the merchant as part of a request to purchase a product service;

a validating module for confirming the payment of the transaction in respect of a registered user'"'"'s financial institution account identified by the user nominated account identifier comprising validating the received transaction identification;

a transaction number output module for providing the merchant with the unique transaction number only if the transaction identification has been validated and is valid; and

a payment module for causing payment to be made by an external financial institution deducting the payment from the user'"'"'s financial institution account identified by the nominated account identifier and depositing the payment into the merchant'"'"'s financial institution account when the received transaction identification is validated.

18. The transaction manager of claim 17, wherein the transaction manager further comprises module for deducting money from a user'"'"'s account to cover the money paid to the merchant.

19. The transaction manager of claim 17, wherein the transaction manager comprises module for issuing a new account that corresponds to an existing account with a financial institution, whereby the new account details are used by the user and merchant in place of the existing account details.

20. The transaction manager of claim 19, wherein the transaction manager is configured to use the new account details to look up the existing account details and the existing account details are used by the transaction manager with the financial institution.

21. The transaction manager of claim 17, wherein the user request input module is configured to receive the request for the unique transaction identifier by an Internet connection.

22. The transaction manager of claim 17, wherein the registration module of the transaction manager comprises a database storage for storing the user registration details.

23. The method of claim 22, wherein database storage is also for storing the merchant'"'"'s registration details including a unique merchant identification.

24. The transaction manager of claim 22, wherein transaction manager is configured to validate the user'"'"'s request for the unique transaction identifier by checking the user'"'"'s details stored in the database storage.

25. The transaction manager of claim 17, wherein the transaction manager is configured to check if sufficient funds are available to cover the transaction and the transaction number is only provided to the merchant if sufficient funds are available.

26. The transaction manager according to claim 17, wherein transaction identification output module is configured to provide the unique transaction identification to the user by a secure encrypted link.

27. The transaction manager of claim 17, wherein transaction identification input module is configured to receive the unique transaction identification by a secure encrypted link.