Conducting an online payment transaction using an NFC enabled mobile communication device

• US 8,352,323 B2
• Filed: 11/30/2007
• Issued: 01/08/2013
• Est. Priority Date: 11/30/2007
• Status: Active Grant

• Current Assignee: Blaze Mobile, Inc. (iWin, Inc.)
• Original Assignee: Blaze Mobile, Inc. (iWin, Inc.)
• Inventors: Fisher, Michelle
• Primary Examiner(s): Glass, Russell S
• Assistant Examiner(s): Goyea, Olusegun
• Application Number:
  US11/948,903
• Publication Number:
  US 20090144161A1
• Time in Patent Office: 1,866 Days
• Field of Search: 705/16, 705/13, 705/41, 705/79, 705/77, 705/14, 705/39, 705/44, 705/26, 705/67, 705/40, 705/4.26, 705/14.39, 705/26.1, 705/14.47, 705/14.26, 705/42, 705/65, 705/7.33, 455/466, 455/414.1, 455/558, 455/41.2, 455/406, 455/405, 455/550.1, 455/566, 455/411, 455/556, 455/456, 455/410, 455/414, 713/167, 235/492, 235/375, 235/379, 235/383, 235/441, 235/472.02
• US Class Current: 705/16
• CPC Class Codes: G06Q 10/10 Office automation; Time management
• CPC Class Codes: G06Q 20/00 Payment architectures, schemes or protocols apparatus for performing or posting payment transactions G07F7/08, G07F19/00; electronic cash registers G07G1/12
• 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 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/16 Payments settled via telecommunication systems
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/202 Interconnection or interaction of plural electronic cash registers [ECR] or to host computer, e.g. network details, transfer of information from host to ECR or from ECR to ECR
• CPC Class Codes: G06Q 20/204 comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit
• CPC Class Codes: G06Q 20/206 comprising security or operator identification provisions, e.g. password entry
• CPC Class Codes: G06Q 20/32 using wireless devices
• CPC Class Codes: G06Q 20/322 Aspects of commerce using mobile devices [M-devices]
• CPC Class Codes: G06Q 20/3223 Realising banking transactions through M-devices
• CPC Class Codes: G06Q 20/3226 Use of secure elements separate from M-devices
• CPC Class Codes: G06Q 20/3227 using secure elements embedded in M-devices
• CPC Class Codes: G06Q 20/325 using wireless networks
• CPC Class Codes: G06Q 20/3255 using mobile network messaging services for payment, e.g. SMS
• 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 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 20/40 : 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 20/4012 : Verifying personal identification numbers [PIN]
• CPC Class Codes: G06Q 20/4014 : Identity check for transactions
• CPC Class Codes: G06Q 20/409 : Device specific authentication in transaction processing
• CPC Class Codes: G06Q 30/02 : Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0222 : During e-commerce, i.e. online transactions
• CPC Class Codes: G06Q 30/0238 : at point-of-sale [POS]
• CPC Class Codes: G06Q 30/0251 : Targeted advertisements
• CPC Class Codes: G06Q 30/0253 : During e-commerce, i.e. online transactions
• CPC Class Codes: G06Q 30/0255 : based on user history
• CPC Class Codes: G06Q 30/0267 : Wireless devices
• CPC Class Codes: G06Q 30/0268 : at point-of-sale [POS]
• CPC Class Codes: G06Q 30/06 : Buying, selling or leasing transactions
• CPC Class Codes: G06Q 30/0613 : Third-party assisted
• CPC Class Codes: G06Q 30/0635 : Processing of requisition or of purchase orders
• CPC Class Codes: G06Q 40/00 : Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/10 : Tax strategies
• CPC Class Codes: G06Q 40/12 : Accounting
• CPC Class Codes: G07F 7/1008 : Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system
• CPC Class Codes: H04B 5/70 : specially adapted for specific purposes
• CPC Class Codes: H04M 1/72445 : for supporting Internet browser applications
• CPC Class Codes: H04N 21/812 : involving advertisement data advertising per se G06Q30/02
• CPC Class Codes: H04W 4/02 : Services making use of location information
• CPC Class Codes: H04W 4/029 : Location-based management or tracking services
• CPC Class Codes: H04W 4/18 : Information format or content conversion, e.g. adaptation by the network of the transmitted or received information for the purpose of wireless delivery to users or terminals
• CPC Class Codes: H04W 4/21 : for social networking applications
• CPC Class Codes: H04W 4/80 : Services using short range communication, e.g. near-field communication [NFC], radio-frequency identification [RFID] or low energy communication
• CPC Class Codes: H04W 8/205 : Transfer to or from user equipment or user record carrier
• CPC Class Codes: H04W 88/02 : Terminal devices

Abstract

A method and system for conducting an online payment transaction through a point of sale device. The method includes receiving input from a user selecting an item for purchase through the point of sale device; calculating a total purchase amount for the item in response to a request from the user to purchase the item; and sending payment authorization for the total purchase amount from the point of sale device to a payment entity, in which the payment authorization is sent to the payment entity via a mobile communication device of the user. The method further includes receiving a result of the payment authorization from the payment entity through the mobile communication device; and completing the payment transaction based on the result of the payment authorization.

Claims

1. A method for conducting an online payment transaction through a point of sale terminal connected to a merchant online processor, the method comprising:

receiving a request, through a point of sale terminal, from a user selecting one or more items for purchase from a merchant portal;

receiving, through a the point of sale terminal, a request from the user to purchase the items;

receiving, at the point of sale terminal, payment credentials corresponding to a default payment method stored in a memory of a secure element during a wireless data transmission through a communication channel with the secure element, the secure element maintaining a secure element application in a secure element memory which is executed by the secure element processor in response to the secure element processor being activated in response to a near field communication trigger by the point-of-sale terminal;

wherein the secure element is coupled to a hand-held mobile device comprising a mobile device memory, a mobile device processor that executes a mobile application, and a mobile device transceiver; and

completing the payment transaction with the merchant online processor.

2. The method of claim 1, wherein the point of sale terminal is a desktop computer, a laptop computer, or a terminal, and wherein the point of sale terminal has an NFC chip installed that serves as one of an NFC scanner and an NFC reader.

3. The method of claim 1, wherein the hand-held mobile device is a cellular phone, a wireless personal digital assistant (PDA), or a laptop computer.

4. The method of claim 1, wherein the hand-held mobile device is NFC-enabled.

5. The method of claim 1, wherein receiving a request from a user selecting one or more items for purchase is based on a virtual shopping list received at the point of sale device through a near field communication interaction with the point of sale device.

6. The method of claim 1, wherein the payment transaction is for a credit card, a debit card, or a prepaid card transaction.

9. The method of claim 1, further comprising sending a receipt from the point of sale terminal to the secure element via the near field communication interaction.

10. The method of claim 1, further comprising sending a coupon from the point of sale terminal to the secure element via the near field communication interaction.

11. The method of claim 1, wherein the secure element is externally affixed, but not electronically connected to the hand-held mobile device;

embedded within a slot that may be removably coupled to the hand-held mobile device, or permanently embedded with the hand-held mobile device.

12. The method of claim 10, further comprising automatically applying a value associated with the coupon during the online payment transaction and the total purchase amount is updated in accordance with the coupon value, and further changing the state of the coupon at the mobile application executing on the processor of the hand-held mobile device, from valid to redeemed to prevent reuse.

13. The method of claim 10, wherein the coupon is automatically sent to the secure element based on items on a virtual shopping list, user preferences, proximity to a physical retail store, or combination of these criteria.

14. The method of claim 10 further comprising manually applying wherein a value associated with the coupon during the online payment transaction and the total purchase amount is updated in accordance with the coupon value, and further manually changing the state of the coupon at the mobile application of the hand-held mobile device, from valid to redeemed to prevent reuse.

15. The method of claim 5, wherein the user can add, delete, or change items on their shopping list either in offline or online mode.

17. The method of claim 1, further comprising wherein the hand-held mobile device can retrieve transaction data and account balance from a management server.

18. The method of claim 1 further comprising sending a receipt, ticket, or coupon after the transaction from the point of sale terminal to the management server which subsequently transmits it to the hand-held mobile device.

19. The method of claim 1, further comprising sending a ticket from the point of sale to the secure element via the near field communication inductive interaction.

20. The method of claim 19 further comprising transmitting the ticket from the hand-held mobile device to a second hand-held mobile device using the devices'"'"' transceivers, Bluetooth, or WIFI.

21. The method of claim 18, wherein the coupon is automatically sent to the hand-held mobile device based on items on a virtual shopping list, user preferences, proximity to a physical retails store, or combination of these criteria.

22. The method of claim 1 further comprising submitting a query from the mobile application of the hand-held mobile device and receiving an advertisement, receipt, ticket, content, media at the hand-held mobile device.

23. The method of claim 22 further comprising submitting a query based on targeting parameter, wherein targeting parameters are inclusive of one or more of the following:

merchants, price-level, spend categories, user location, gender, age, interest, affiliation, payment transactions, banking transactions or bill pay.

24. The method of claim 22 wherein the query from the mobile application for advertisement is triggered by browsing a particular screen that specifies unique real-estate, using proximity services such as near field communications that specifies a unique code, or geographic location using Location Based Services.

25. The method of claim 1 further comprising implementing a security tool at the mobile application of the hand-held mobile device, wherein the security tool comprises one or more of the following:

prompting the user to login to the hand-held mobile device, use of biometrics to authenticate the user before authorizing the transaction, disabling use of the mobile application through the server by invalidating the session key, timing out a given communication session between the hand-held mobile device and the server after a pre-determined amount of time, prompting the user to enter a payment limit PIN in response to a pending purchase exceeding a pre-determined amount, temporarily disabling the secure element, permanently disabling the secure element, deleting all cached data stored in the memory of the hand-held mobile device, and storing encrypted securing codes on the hand-held mobile device.

26. The method of claim 25, wherein disabling the secure element prevents near field communication payments, coupon redemption and ticket redemption.

27. The method of claim 12, wherein coupons that are delivered to the mobile application are based on consumer tapping a LBS/contactless/RFID cell phone against a smart poster, RFID/Bluetooth/LBS enabled kiosk, or other device.

7. A system for performing a method for conducting an online payment transaction, the system comprising:

a secure element coupled to a hand-held mobile device;

the secure element including;

a memory storing a the payment application and payment credentials;

a processor that executes the payment application stored in the memory; and

a wireless transceiver that sends transaction data including the payment credentials corresponding to a default payment method associated with the payment application through a communication channel to the Point-Of Sale device;

the processor of the secure element executes the payment application and sends the payment credentials to the point-of-sale device in response to the processor of the secure element being activated during a near field communication interaction between the secure element and the point-of-sale device; and

wherein the payment transaction using the secure element is completed by a merchant online processor.

8. The system of claim 7, wherein the point-of-sale device receives the one or more selected items based on a virtual shopping list received at the point of sale terminal through a near field communication interaction with the point of sale device.

16. The system of claim 8, wherein the user can add, delete, or change items on their shopping list either in offline or online mode.