Wireless payment method and systems

• US 10,083,434 B2
• Filed: 04/14/2015
• Issued: 09/25/2018
• Est. Priority Date: 01/21/2005
• Status: Active Grant

• Current Assignee: Visa USA, Inc. (Visa, Inc.)
• Original Assignee: Visa USA, Inc. (Visa, Inc.)
• Inventors: Myers, Joan, Garrison, Sara, Carlson, Mark
• Primary Examiner(s): Milef, Elda G
• Application Number:
  US14/686,146
• Publication Number:
  US 20160012407A1
• Time in Patent Office: 1,260 Days
• 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 20/10 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 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/322 Aspects of commerce using mobile devices [M-devices]
• 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 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

A method for conducting a transaction is disclosed. The method includes using a first portable electronic device, and directly transmitting a request for payment to a second portable electronic device through a wireless link. Then, the second portable electronic device transmits an approval of the request for payment to the first portable electronic device. One of the first and the second portable electronic devices then sends the request for payment to a payment hub service. The payment hub service then facilitates the transfer of funds from a payer institution to a payee institution to complete the transaction.

Claims

1. A method for conducting a transaction, the method comprising:

initiating the transaction, with a first portable electronic device associated with a payee including selecting a first payment method associated with a payee institution from among a plurality of candidate payment methods, a payment amount, and a transaction party role;

establishing, by the first portable electronic device, a secure wireless connection with a second portable electronic device associated with a payer, wherein the secure wireless connection uses transmission encryption;

transmitting, by the first portable electronic device, a request for payment to the second portable electronic device, wherein the payment request includes the first payment method, the payment amount, and the transaction party role;

receiving an approval of the request for payment at the first portable electronic device from the second portable electronic device, wherein the approval of the request includes a second payment method different from the first payment method and associated with a payer institution; and

sending, by the first portable electronic device, the request for payment to a payment broker, wherein the payment broker is configured to broker payments between the first payment method and the second payment method, wherein the payment broker facilitates a transfer of funds from the payer institution to the payee institution utilizing a payer proxy account in accordance with the second payment method at the payer institution and a payee proxy account in accordance with the first payment method at the payee institution.

2. The method of claim 1, wherein the secure wireless connection comprises an infrared, RF, or optical link.

3. The method of claim 1, wherein the first and second portable electronic devices are phones.

4. The method of claim 1, wherein the first portable electronic device is a mobile phone or a personal digital assistant.

5. The method of claim 1 wherein the first payment method uses a debit account and the second payment method uses a credit card account.

6. The method of claim 1, further comprising:

establishing, by the first portable electronic device, an identity of the second portable electronic device.

7. The method of claim 6, wherein the establishment of the identity is performed using credentials in the second portable electronic device without the second device authenticating to an intermediary.

8. The method of claim 1, wherein the first payment method uses a source financial account and the second payment method uses a target financial account.

9. The method of claim 1, wherein one payment method is credit and the other payment method is debit.

10. A non-transitory computer readable medium comprising code, executable by a processor, for performing operations comprising:

initiating a transaction with a first portable electronic device associated with a payee including selecting a first payment method associated with a payee institution from among a plurality of candidate payment methods, a payment amount, and a transaction party role;

establishing a secure wireless connection with a second portable electronic device associated with a payer, wherein the secure wireless connection uses transmission encryption;

transmitting a request for payment to the second portable electronic device, wherein the payment request includes the first payment method, the payment amount, and the transaction party role;

receiving an approval of the request for payment at the first portable electronic device from the second portable electronic device, wherein the approval of the request includes a second payment method different from the first payment method and associated with a payer institution; and

sending the request for payment to a payment broker, wherein the payment broker is configured to broker payments between the payment methods specified in the payment request and in the approval of the request for payment, wherein the payment broker facilitates a transfer of funds from the payer institution associated to the payee institution utilizing a payer proxy account in accordance with the second payment method at the payer institution and a payee proxy account in accordance with the first payment method at the payee institution.

11. The non-transitory computer readable medium of claim 10, wherein the secure wireless connection comprises an RF or IR link.

12. The non-transitory computer readable medium of claim 10, wherein the first portable electronic device is a mobile phone or a personal digital assistant.

13. A portable electronic device comprising the non-transitory computer readable medium of claim 10.

14. A method for conducting a transaction, the method comprising:

establishing, using a first portable electronic device associated with a payer, a secure wireless connection with a second portable electronic device associated with a payee, wherein the secure connection uses transmission encryption;

receiving, at the first portable electronic device, an encrypted request for payment from the second portable electronic device, wherein the request for payment includes a first payment method associated with a payee institution selected from among a plurality of candidate payment methods with the first portable electronic device, a payment amount, and a transaction party role; and

transmitting, with the first portable electronic device, an approval of the request for payment to the second portable electronic device, wherein the approval of the request includes a second payment method different from the first payment method and associated with a payer institution;

wherein subsequent to the transmission of the approval of the request, at least one of the first portable electronic device and second portable electronic device transmits at least a portion of the request for payment and the approval of the request for payment to a payment broker configured to broker payments between the first payment method and the second payment method, wherein the payment broker facilitates a transfer of funds from the payer institution to the payee institution utilizing a payer proxy account in accordance with the second payment method at the payer institution and a payee proxy account in accordance with the first payment method at the payee institution.

15. The method of claim 14, wherein the transaction party role is one of a buyer role or a seller role.

16. The method of claim 14, wherein the first payment method is a stored value payment method and the second payment method is a debit payment method.

17. The method of claim 14, wherein the secure wireless connection comprises an infrared, RF, or optical link.

18. The method of claim 14, wherein the first and second portable electronic devices are phones.

19. The method of claim 14, further comprising:

establishing, by the first portable electronic device, an identity of the second portable electronic device using credentials in the second portable electronic device without the second device authenticating to an intermediary.

20. The method of claim 19, wherein an identity of the first portable electronic device is established at the second portable electronic device using credentials in the first portable electronic device without the first device authenticating to an intermediary.