Method for minimizing financial risk for wireless services

• US 7,958,029 B1
• Filed: 10/20/2004
• Issued: 06/07/2011
• Est. Priority Date: 10/20/2003
• Status: Active Grant

• Current Assignee: Netcracker Technology Solutions Inc (NEC Corporation)
• Original Assignee: Convergys Corporation (Synnex Corporation)
• Inventors: Gray, Robert, Brachet, Carl-Manuel, Bobich, Thomas, Hinman, John
• Primary Examiner(s): Felten; Daniel S
• Application Number:
  US10/970,059
• Time in Patent Office: 2,421 Days
• Field of Search: 705 35- 42
• US Class Current: 705/35
• 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 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 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/10 Tax strategies
• CPC Class Codes: H04M 15/88 Provision for limiting connection, or expenditure
• CPC Class Codes: H04W 4/24 Accounting or billing

Abstract

A method and system for managing financial risk through the use of postpaid processing during use of wireless services is presented within the scope of the following invention. The present invention uses credit card authorization to pre-reserve credit card funds for wireless services in excess of planned usage. Authorizations eliminate the credit risk associated with overages and payment timing, and also maintain a customer experience identical to postpaid processing. The authorizations are invisible to the customer and no charge is brought to a customer'"'"'s credit card until the monthly bill is settled. Separating the authorization and settlement stages of retail wireless payment processing allows the branded wireless provider to avoid inherent areas of credit risk during the tenure of a customer'"'"'s wireless service, while maintaining a familiar customer experience.

Claims

1. A system for wireless telephone communication, the system comprising:

a retail brand system for providing mobile communications devices to at least one consumer for use with the system;

a mobile virtual network enabler for establishing and maintaining wireless service, the mobile virtual network enabler coupled to the retail brand system;

a wireless communication network for communication between communication devices, the wireless communication network coupled to the mobile virtual network enabler; and

a financial risk management system for monitoring network usage and ensuring payment for wireless services, the financial risk management coupled to the mobile virtual network enabler;

wherein the financial risk management system comprises;

an initializing system for setting up an account for wireless services, the initializing system coupled to the mobile virtual network enabler;

a monitoring system for determining usage levels for a mobile device, the monitoring system coupled to the mobile virtual network enabler and the initializing system;

a database module for storing usage data, the database module coupled to the monitoring system;

a financial risk minimizing module for limiting financial exposure from providing wireless services, the financial risk minimizing module coupled to the monitoring system and the mobile virtual network enabler; and

a set of rules, the rules applied to data from the monitoring system to determine whether to terminate wireless services.

2. The system of claim 1, wherein the financial risk management system is formed as a portion of the mobile virtual network enabler.

3. The system of claim 1, wherein the financial risk management system is a third party system operated separately from the mobile virtual network enabler.

28. The system of claim 1, wherein:

a) the financial risk management system comprises a first computer;

b) the retail brand system comprises a second computer; and

c) the wireless communication network comprises;

i) one or more wireless base stations;

ii) one or more mobile switching centers; and

iii) one or more messaging service centers.

4. A system for limiting financial risk associated with subscribers of wireless services, the wireless services offered on a wireless system having a wireless network and a mobile virtual network enabler, the system for limiting financial risk comprising:

a monitoring system for determining usage levels for a mobile device, the monitoring system coupled to the mobile virtual network enabler to receive usage data;

a memory module for storing usage data for the mobile device, the memory module coupled to the monitoring system;

a financial risk minimizing module for limiting the financial exposure for providing wireless services, the financial risk minimizing module coupled to the monitoring system and the mobile virtual network enabler; and

an initializing system for setting up an account for wireless services, the initializing system coupled to the mobile virtual network enabler to activate service for the mobile device;

wherein the initializing system is coupled to a credit authorizing unit, and wherein the initializing system authorizes and settles a charge for service before signaling the mobile virtual network enabler to activate wireless services.

5. The system of claim 4, wherein the financial risk management system further comprises a set of rules, the rules used by the financial risk management system to determine whether to terminate wireless services.

6. The system of claim 4, wherein the monitoring system monitors the usage data for the wireless network and filters out usage data for mobile devices that are prepaid or on a monthly subscription.

7. The system of claim 4, wherein the memory module further comprises a database for storing usage data, wherein the database stores usage information for a plurality of mobile devices.

8. The system of claim 4, wherein the financial risk minimizing module further comprises:

a risk measurement module coupled to the memory to receive usage information, the risk measurement module generating a risk signal if the usage for a mobile device exceeds a predefined threshold; and

a credit authorizing unit for authorizing a credit card charge in response to the risk signal, the credit authorizing unit coupled to the risk measurement module to receive the risk signal and coupled to a credit card company to send an authorization request.

9. A method for managing financial risk for a wireless network, the method comprising the steps of:

monitoring usage of the wireless network by a mobile device to generate usage data;

analyzing the usage data; and

minimizing financial risks related to usage of the wireless network by the mobile device.

10. The method of claim 9, further comprising the step of initializing wireless service for the mobile device prior to the step of monitoring.

11. The method of claim 10, wherein step of initializing wireless service comprises the steps of:

receiving mobile device identification information;

receiving financial information from a customer associated with the mobile device;

securing payment of a charge for services for a predetermined amount of time;

establishing a usage threshold for wireless services; and

activating a phone number on the network.

12. The method of claim 11, wherein the mobile device identification information includes a telephone number and an electronic serial number for the mobile device.

13. The method of claim 11, wherein the financial information includes a name and a credit card number.

14. The method of claim 11, wherein step of securing payment comprises the steps of:

authorizing a charge for wireless services to a credit card; and

settling the charge for wireless services with a credit card service.

15. The method of claim 9, wherein the step of monitoring usage of the wireless network comprises the steps of:

gathering data on usage of the wireless network; and

filtering the gathered data to produce the usage data.

16. The method of claim 15, wherein the step of monitoring further comprises the steps of:

storing the gathered data in a database; and

reporting the filtered data.

17. The method of claim 15 wherein the step of filtering excludes usage data for mobile devices that have prepaid and subscription type plans.

18. The method of claim 9, wherein the step of analyzing wireless usage by the mobile device further comprises the steps of:

receiving usage data;

comparing usage data to a threshold; and

determining usage data exceeds the threshold.

19. The method of claim 18, wherein for the step of comparing usage data to the threshold, the threshold is one from the group of a monthly usage threshold;

an overage threshold;

a monthly usage rate threshold; and

an overage rate threshold.

20. The method of claim 18, wherein the step of minimizing financial risks related to usage of the wireless network further comprises the steps of:

calculating an additional amount to bill a customer; and

authorizing additional amount against customer'"'"'s credit card.

21. The method of claim 20, further comprising the step of determining if the authorization is accepted and terminating wireless service for the mobile customer if the authorization is not accepted.

22. The method of claim 9, wherein the step of analyzing wireless usage by the mobile device further comprises the steps of:

receiving usage data;

applying a rule for minimizing financial risk to the usage data; and

determining whether the usage data violates a rule.

23. The method of claim 22, wherein the step of minimizing financial risks related to usage of the wireless network comprises the steps of:

calculating an additional amount to bill a customer;

authorizing additional amount against customer'"'"'s credit card; and

determining if the authorization is accepted.

24. The method of claim 9, wherein the step of minimizing financial risks related to usage of the wireless network applies a rule for minimizing financial risk to the usage data.

25. The method of claim 24, wherein the rule for minimizing financial risk is one from the group of:

determining whether a customer meets one or more account requirements;

determining whether an amount of time a customer has existed exceeds a threshold;

determining whether a customer'"'"'s payment history is acceptable; and

determining whether there are relationships between this customer and other accounts.

26. The method of claim 9, wherein the step of minimizing financial risks related to usage of the wireless network performs the following steps:

determining if an end of a payment cycle has been reached;

determining if a predetermined time has elapsed since the end of the payment cycle;

sending bill and authorizing a charge against the customer'"'"'s credit card;

determining whether the credit authorization failed; and

terminating wireless service for the mobile customer if the authorization failed.

27. The method of claim 9, wherein the step of minimizing financial risks related to usage of the wireless network performs the following steps of:

determining an amount to charge for wireless services;

authorizing the charge against a credit card associate with the mobile device a first time;

determining if credit authorization fails a first time, and if the credit authorization fails the first time notifying a customer associated with the mobile device;

authorizing the charge against a credit card associate with the mobile device a second time;

determining if credit authorization fails a second time, and if the credit authorization fails the second time, terminating the wireless service for the mobile device.

29. The method of claim 27, wherein:

a) the wireless network comprises;

i) one or more wireless base stations;

ii) one or more mobile switching centers; and

iii) one or more messaging service centers;

b) the step of monitoring usage of the wireless network is performed using one or more devices comprising a first computer; and

c) the step of minimizing financial risks is performed using one or more devices comprising a second computer.