System and method for performing person-to-person funds transfers via wireless communications

• US 10,223,675 B2
• Filed: 02/04/2014
• Issued: 03/05/2019
• Est. Priority Date: 04/27/2007
• Status: Active Grant

• Current Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Jones, Jessica U., Peart, Lee J., Beenau, Blayn W., Saunders, Peter D.
• Primary Examiner(s): Shaikh, Mohammad Z
• Application Number:
  US14/171,965
• Publication Number:
  US 20140164229A1
• Time in Patent Office: 1,855 Days
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/223 based on the use of peer-to-peer networks
• CPC Class Codes: G06Q 20/322 Aspects of commerce using mobile devices [M-devices]
• CPC Class Codes: G06Q 20/326 Payment applications installed on the mobile devices
• CPC Class Codes: G06Q 20/3278 RFID or NFC payments by means of M-devices
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

A funds-transfer system enables a buyer to transfer funds to a seller via a mobile telephone. The system receives a payment request transmitted from a mobile telephone of the buyer. The payment request is for a transfer of funds from a financial account held by the buyer to a financial account held by the seller, and the payment request is transmitted from a payment application stored in the buyer'"'"'s mobile telephone. The payment request identifies a purchase amount to be transferred, and information identifying the financial account held by the buyer. The system charges the purchase amount to the financial account held by the buyer and transfers the purchase amount to a financial account held by the seller.

Claims

1. A method comprising:

receiving, by a funds transfer computer-based system and from a merchant, a first financial account information of a financial account of a first party and transaction information of a financial transaction between the first party and the merchant,

wherein the first financial account information was transmitted directly from a first party mobile telephone to a financial transaction instrument reader of the merchant in response to the first party mobile telephone being in proximity thereto, and

wherein the first party mobile telephone has the first financial account information of the first party and an application for operating the first party mobile telephone as a financial transaction instrument;

setting, by the funds transfer computer-based system, a transaction limit of a payment application and storing the setting in a memory of the first party mobile telephone of a first party;

determining, by the computer-based system and based on the setting, that a number of transactions are in a predetermined number from the transaction limit;

restricting, by the computer-based system and based on the determining, continued access to the payment application;

receiving, by the computer-based system and in response to the restricting, a request including a code for a reauthorization of the payment application;

granting, by the computer-based system and in response to the request for the reauthorization, the continued access to the payment application beyond the transaction limit;

receiving, by the computer-based system and in response to the granting, a first party caller ID of the first party mobile telephone of the first party to obtain a first party telephone number;

personalizing, by the computer-based system and based on the first party caller ID, the payment application to create a personalized payment application for the first party mobile telephone;

uploading, by the computer-based system via wireless communication and in response to the personalizing, the personalized payment application to the first party mobile telephone, in response to an upload request from the first party mobile telephone via the wireless communication;

receiving, by the computer-based system and in response to the uploading, a funds-transfer request wirelessly transmitted from the personalized payment application stored in the first party mobile telephone,

wherein the funds-transfer request is for a person-to-person transfer of the funds, and

wherein the funds-transfer request includes one-time use information including contact information for providing a confirmation of the funds-transfer request, a purchase amount to be transferred from a second party mobile telephone to the first party mobile telephone, the first party telephone number of the first party mobile telephone, the second party telephone number of the second party mobile telephone, the first financial account information identifying the financial account of the first party, and second financial account information identifying a first financial account of a second party;

transmitting, by the computer-based system and in response to the receiving the funds-transfer request, the funds-transfer request to the second party mobile telephone;

receiving, by the computer-based system and using the contact information and in response to the transmitting the funds-transfer request, the confirmation of the funds-transfer request from the second party mobile telephone;

receiving, by the computer-based system and in response to the receiving the confirmation, the first financial account of the second party from the second party mobile telephone;

receiving, by the computer-based system and in response to the receiving the confirmation, a second party caller ID of the second party mobile telephone;

personalizing, by the computer-based system and based on the second party caller ID, the payment application to create a personalized payment application for the second party mobile telephone;

uploading, by the computer-based system via the wireless communication and in response to the personalizing, the personalized payment application to the second party mobile telephone of the second party, in response to receiving the funds-transfer request from the first party mobile telephone;

verifying, by the computer-based system and in response to the uploading, the first party caller ID of the first party mobile telephone;

receiving, by the computer-based system and in response to the verifying, authentication information from the first party mobile telephone,

wherein the authentication information includes at least one of biometric information, a digital signature or a password;

processing, by the computer-based system and based on the verification of the first party caller ID of the first party mobile telephone, the funds-transfer request via the wireless communication between the payment application on the first party mobile telephone and the payment application the second party mobile telephone;

determining, by the computer-based system and in response to the processing, that insufficient funds exist in the first financial account of the second party, wherein the funds-transfer request includes the purchase amount that is greater than the funds in the first financial account of the second party;

providing, by the computer-based system and in response to the determining that the insufficient funds exist, an insufficient funds notification to the second party mobile telephone of the second party, in response to the first financial account having the insufficient funds to complete the funds-transfer request between the second party and the first party;

requesting, by the computer-based system and in response to providing the insufficient funds notification, that the second party modify the funds-transfer request via the second party mobile telephone to identify a second financial account in response to the first financial account having the insufficient funds to complete the funds-transfer request;

providing, by the computer-based system, an invalid account notification to the second party mobile telephone, in response to third financial account information corresponding to an invalid financial account;

providing, by the computer-based system via the wireless communication and in response to the providing an invalid account notification, notification to the second party mobile telephone to modify the funds-transfer request;

processing, by the computer-based system, the transaction information and the first financial account information according to the modified funds-transfer request;

authorizing, by the computer-based system, the financial transaction between the merchant and first party without contacting the first party mobile telephone;

charging, by the computer-based system and based on the modified funds-transfer request, at least a portion of the purchase amount to at least one of the second financial account or a fourth financial account;

debiting, by the computer-based system and in response to the charging, the purchase amount to the financial account of the first party;

providing, by the computer-based system and in response to the charging and the debiting, a payment acknowledgment to the second party mobile telephone and to the first party mobile telephone;

communicating, in response to the authorizing and from the computer-based system to the first party mobile telephone over a wireless network, a record of a purchase;

providing, by the computer-based system and to the first party mobile telephone, the application for operating the first party mobile telephone as the financial transaction instrument,

wherein the application comprises program code for defining a maximum number of transactions that can be completed using the application without further authorization from the first party,

wherein the application comprises program code for tracking the number of transactions completed using the application since a last authorization from the first party, and

wherein in response to the number of transactions completed using the application since the last authorization from the first party being a first party selectable number less than the maximum number of transactions;

prompting the first party to provide a PIN for access, wherein in response to the number of transactions approaching a number calling for the first party to provide the PIN, the first party is prompted via the first party mobile telephone with a first warning indicating that a request to provide the PIN will be requested in a subsequent transaction,

wherein in response to the number of transactions completed using the application since the last authorization from the first party being equal to the maximum number of transactions that can be completed using the application without further authorization from the first party;

denying the purchase, wherein in response to the number of transactions completed using the application since the last authorization from the first party approaching a number equal to a maximum number of possible transactions using the application without further authorization from the first party; and

prompting the first party via the first party mobile telephone with a second warning indicating that the maximum number of possible transactions using the application without further authorization from the first party is approaching,

wherein, in response to determining that the maximum number of transactions has been exceeded, the application disables the application to prevent the first financial account information from being transmitted.

2. The method of claim 1, further comprising charging, by the computer-based system, at least the portion of the purchase amount to at least one of the first financial account or a third financial account.

3. The method of claim 2, further comprising transferring, by the computer-based system, the purchase amount to the financial account held by the first party.

4. The method of claim 3, further comprising receiving, by the computer-based system, the funds-transfer request transmitted from the first party mobile telephone.

5. The method of claim 4, wherein the uploading the personalized payment application to the first party mobile telephone further comprises:

receiving, by the computer-based system, a request to personalize the first party mobile telephone with user-specific information;

preparing, by the computer-based system and in response to the request to personalize the first party mobile telephone , a unique personalization file for use with the first party mobile telephone ;

providing, by the computer-based system, a description file to the first party mobile telephone over the wireless network, the description file comprising a URL pointing to a web-hosting environment containing a resource file comprising a software module;

providing, by the computer-based system and in response to a user contacting the web-hosting environment using the URL, the resource file to the first party mobile telephone over the wireless network, wherein in response to receiving the resource file, the first party mobile telephone installs the software module in a first internal memory of the first party mobile telephone , wherein the first party mobile telephone comprises the first internal memory, a second internal memory and a secure memory element; and

in response to the software module being executed by the first party mobile telephone , providing, by the computer-based system, the unique personalization file to the first party mobile telephone over the wireless network, wherein the unique personalization file is stored in the second internal memory of the first party mobile telephone , wherein, based upon instructions included in the resource file, the unique personalization file is copied to the secure memory element of the first party mobile telephone and deleted from the second internal memory, and wherein the software module accesses the unique personalization file in the secure memory element in order to enable the first party mobile telephone to operate as the financial transaction instrument.

6. The method of claim 5, wherein the payment application is uploaded to the first party mobile telephone in response to receiving a payment application request from the first party mobile telephone.

7. The method of claim 6, wherein the uploading the personalized payment application to the first party mobile telephone further comprises:

sending, by the computer-based system in communication with a gateway using a push technology, a message to the first party mobile telephone,

wherein the message includes a URL for a .jad file,

wherein the message requests the first party to confirm the uploading of the personalized payment application;

receiving, by the computer-based system, a reply message confirming the uploading of the personalized payment application;

retrieving, by the computer-based system and using a web host to use the URL to retrieve the .jad file;

sending, by the computer-based system, the .jad file to the first party mobile telephone,

wherein the .jad file is a descriptor file for a .jar file,

wherein the .jad file includes a URL for the .jar file,

wherein the first party mobile telephone reads and executes the .jad file,

downloading, by the computer-based system and using the web host, the .jar file to the first party mobile telephone based on the URL in the .jar file included in the .jad file, and in response to the first party mobile telephone executing the .jad file;

requesting, by the computer-based system, confirmation that the personalized payment application be downloaded to the first party mobile telephone;

retrieving, by the computer-based system and using the web host, the personalized payment application from a database of applications; and

downloading, by the computer-based system and using the web host, the personalized payment application to the first party mobile telephone.

8. The method of claim 7, further comprising processing, by the computer-based system, the funds-transfer request according to the purchase amount and information associated with the fourth financial account.

9. The method of claim 8, wherein the information identifying the financial account held by the first party is transmitted from the first party mobile telephone to the second party mobile telephone.

10. The method of claim 9, wherein the payment acknowledgment is a text message sent to the first party mobile telephone.

11. The method of claim 10, wherein the funds-transfer request includes the authentication information used to authenticate the first party.

12. The method of claim 11, wherein the information identifying the financial account held by the first party includes a telephone number of the first party mobile telephone.

13. The method of claim 1, wherein the providing at least one of the insufficient funds notification or the invalid account notification is also provided to the second party mobile telephone.

14. A system comprising:

a funds transfer processor; and

a tangible, non-transitory memory configured to communicate with the processor, the tangible, non-transitory memory having instructions stored thereon that, in response to execution by the processor, cause the processor to perform operations comprising;

receiving, by the funds transfer computer-based system and from a merchant, a first financial account information of a financial account of a first party and transaction information of a financial transaction between the first party and the merchant,

wherein the first financial account information was transmitted directly from a first party mobile telephone to a financial transaction instrument reader of the merchant in response to the first party mobile telephone being in proximity thereto,

wherein the first party mobile telephone has the first financial account information of the first party and an application for operating the first party mobile telephone as a financial transaction instrument;

setting, by the funds transfer computer-based system, a transaction limit of a payment application and storing the setting in a memory of the first party mobile telephone of a first party;

determining, by the computer-based system and based on the setting, that a number of transactions are in a predetermined number from the transaction limit;

restricting, by the computer-based system and based on the determining, continued access to the payment application;

receiving, by the computer-based system and in response to the restricting, a request including a code for a reauthorization of the payment application;

granting, by the computer-based system and in response to the request for the reauthorization, the continued access to the payment application beyond the transaction limit;

receiving, by the computer-based system and in response to the granting, a first party caller ID of the first party mobile telephone of the first party to obtain a first party telephone number;

personalizing, by the computer-based system and based on the first party caller ID, the payment application to create a personalized payment application for the first party mobile telephone;

uploading, by the computer-based system via wireless communication and in response to the personalizing, the personalized payment application to the first party mobile telephone, in response to an upload request from the first party mobile telephone via the wireless communication;

receiving, by the computer-based system and in response to the uploading, a funds-transfer request wirelessly transmitted from the personalized payment application stored in the first party mobile telephone,

wherein the funds-transfer request is for a person-to-person transfer of the funds, and

wherein the funds-transfer request includes one-time use information including contact information for providing a confirmation of the funds-transfer request, a purchase amount to be transferred from a second party mobile telephone to the first party mobile telephone, the first party telephone number of the first party mobile telephone, the second party telephone number of the second party mobile telephone, the first financial account information identifying the financial account of the first party, and second financial account information identifying a first financial account of a second party;

transmitting, by the computer-based system and in response to the receiving the funds-transfer request, the funds-transfer request to the second party mobile telephone;

receiving, by the computer-based system and using the contact information and in response to the transmitting the funds-transfer request, the confirmation of the funds-transfer request from the second party mobile telephone;

receiving, by the computer-based system and in response to the receiving the confirmation, the first financial account of the second party from the second party mobile telephone;

receiving, by the computer-based system and in response to the receiving the confirmation, a second party caller ID of the second party mobile telephone;

personalizing, by the computer-based system and based on the second party caller ID, the payment application to create a personalized payment application for the second party mobile telephone;

uploading, by the computer-based system via the wireless communication and in response to the personalizing, the personalized payment application to the second party mobile telephone of the second party, in response to receiving the funds-transfer request from the first party mobile telephone;

verifying, by the computer-based system and in response to the uploading, the first party caller ID of the first party mobile telephone;

receiving, by the computer-based system and in response to the verifying, authentication information from the first party mobile telephone,

wherein the authentication information includes at least one of biometric information, a digital signature or a password;

processing, by the computer-based system and based on the verification of the first party caller ID of the first party mobile telephone, the funds-transfer request via the wireless communication between the payment application on the first party mobile telephone and the payment application the second party mobile telephone;

determining, by the computer-based system and in response to the processing, that insufficient funds exist in the first financial account of the second party, wherein the funds-transfer request includes the purchase amount that is greater than the funds in the first financial account of the second party;

providing, by the computer-based system and in response to the determining that the insufficient funds exist, an insufficient funds notification to the second party mobile telephone of the second party, in response to the first financial account having the insufficient funds to complete the funds-transfer request between the second party and the first party;

requesting, by the computer-based system and in response to providing the insufficient funds notification, that the second party modify the funds-transfer request via the second party mobile telephone to identify a second financial account in response to the first financial account having the insufficient funds to complete the funds-transfer request;

providing, by the computer-based system, an invalid account notification to the second party mobile telephone, in response to third financial account information corresponding to an invalid financial account;

providing, by the computer-based system via the wireless communication and in response to the providing an invalid account notification, notification to the second party mobile telephone to modify the funds-transfer request;

processing, by the computer-based system, the transaction information and the first financial account information according to the modified funds-transfer request;

authorizing, by the computer-based system, the financial transaction between the merchant and first party without contacting the first party mobile telephone;

charging, by the computer-based system and based on the modified funds-transfer request, at least a portion of the purchase amount to at least one of the second financial account or a fourth financial account;

debiting, by the computer-based system and in response to the charging, the purchase amount to the financial account of the first party;

providing, by the computer-based system and in response to the charging and the debiting, a payment acknowledgment to the second party mobile telephone and to the first party mobile telephone;

communicating, in response to the authorizing and from the computer-based system to the first party mobile telephone over a wireless network, a record of a purchase;

providing, by the computer-based system and to the first party mobile telephone, the application for operating the first party mobile telephone as the financial transaction instrument,

wherein the application comprises program code for defining a maximum number of transactions that can be completed using the application without further authorization from the first party,

wherein the application comprises program code for tracking the number of transactions completed using the application since a last authorization from the first party, and

wherein in response to the number of transactions completed using the application since the last authorization from the first party being a first party selectable number less than the maximum number of transactions;

prompting the first party to provide a PIN for access, wherein in response to the number of transactions approaching a number calling for the first party to provide the PIN, the first party is prompted via the first party mobile telephone with a first warning indicating that a request to provide the PIN will be requested in a subsequent transaction,

wherein in response to the number of transactions completed using the application since the last authorization from the first party being equal to the maximum number of transactions that can be completed using the application without further authorization from the first party;

denying the purchase, wherein in response to the number of transactions completed using the application since the last authorization from the first party approaching a number equal to a maximum number of possible transactions using the application without further authorization from the first party; and

prompting the first party via the first party mobile telephone with a second warning indicating that the maximum number of possible transactions using the application without further authorization from the first party is approaching,

wherein, in response to determining that the maximum number of transactions has been exceeded, the application disables the application to prevent the first financial account information from being transmitted.

15. The system of claim 14, further comprising charging, by the processor, at least the portion of the purchase amount to at least one of the first financial account or a third financial account.

16. The system of claim 14, further comprising transferring, by the processor, the purchase amount to the first financial account of the second party.

17. An article of manufacture including a non-transitory, tangible computer readable storage medium having instructions stored thereon that, in response to execution by a computer-based system, cause the computer-based system to perform operations comprising:

receiving, by the computer-based system and from a merchant, a first financial account information of a first financial account of a first party and transaction information of a financial transaction between the first party and the merchant,

wherein the first financial account information was transmitted directly from a first party mobile telephone to a financial transaction instrument reader of the merchant in response to the first party mobile telephone being in proximity thereto, and

wherein the first party mobile telephone has the first financial account information of the first party and an application for operating the first party mobile telephone as a financial transaction instrument;

providing, by the computer-based system, an insufficient funds notification to the first party mobile telephone, in response to the first financial account having insufficient funds to complete a funds-transfer request;

requesting, by the computer-based system, that the first party modify the funds-transfer request via the first party mobile telephone to identify a second financial account in response to the first financial account having the insufficient funds to complete the funds-transfer request;

providing, by the computer-based system, an invalid account notification to the first party mobile telephone, in response to third financial account information corresponding to an invalid financial account;

requesting, by the computer-based system, that the first party modify the funds-transfer request via the first party mobile telephone, to identify a fourth financial account that is valid, in response to the third financial account information corresponding to the invalid financial account;

processing, by the computer-based system, the transaction information and the first financial account information;

authorizing, by the computer-based system, the financial transaction between the merchant and first party without contacting the first party mobile telephone;

communicating, in response to the authorizing and from the computer-based system to the first party mobile telephone over a wireless network, a record of a purchase;

providing, by the computer-based system and to the first party mobile telephone, the application for operating the first party mobile telephone as the financial transaction instrument,

wherein the application comprises program code for defining a maximum number of transactions that can be completed using the application without further authorization from the first party,

wherein the application comprises program code for tracking a number of transactions completed using the application since a last authorization from the first party, and

wherein in response to the number of transactions completed using the application since the last authorization from the first party being a first party selectable number less than the maximum number of transactions;

prompting the first party to provide a PIN for access, wherein in response to the number of transactions approaching a number calling for the first party to provide the PIN, the first party is prompted via the first party mobile telephone with a first warning indicating that a request to provide the PIN will be requested in a subsequent transaction,

wherein in response to the number of transactions completed using the application since the last authorization from the first party being equal to the maximum number of transactions that can be completed using the application without further authorization from the first party;

denying, by the computer-based system, the purchase, wherein in response to the number of transactions completed using the application since the last authorization from the first party approaching a number equal to a maximum number of possible transactions using the application without further authorization from the first party; and

prompting, by the computer-based system, the first party via the first party mobile telephone with a second warning indicating that the maximum number of possible transactions using the application without further authorization from the first party is approaching,

wherein, in response to determining that the maximum number of transactions has been exceeded, the application disables the application to prevent the first financial account information from being transmitted.