Transaction processing method, apparatus and system

• US 8,543,500 B2
• Filed: 06/24/2005
• Issued: 09/24/2013
• Est. Priority Date: 06/25/2004
• Status: Expired due to Fees

• Current Assignee: Ian Charles Ogilvy
• Original Assignee: Ian Charles Ogilvy
• Inventors: Ogilvy, Ian Charles
• Primary Examiner(s): Tran, Hai
• Application Number:
  US11/630,553
• Publication Number:
  US 20090099961A1
• Time in Patent Office: 3,014 Days
• Field of Search: 705/40
• US Class Current: 705/40
• CPC Class Codes: G06Q 20/08 Payment architectures
• 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 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/322 Aspects of commerce using mobile devices [M-devices]
• CPC Class Codes: G06Q 20/3276 using a pictured code, e.g. barcode or QR-code, being read by the M-device
• 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 20/4014 Identity check for transactions

Abstract

The present invention relates to transaction processing, for processing of payments between payer'"'"'s (usually individual payers) and payee'"'"'s (usually merchants. Conventionally, a payment transaction involves a user'"'"'s account details being provided to a merchant device, e.g. by swiping a card in the card swipe of the merchant device. The merchant device then prepares a transaction message including information such as the user'"'"'s account ID, merchant ID and payment information and forwards that message to a transaction processing system, which may comprise a transaction acquirer and an issuing bank. The transaction processing system approves the payment and returns confirmation to the merchant. In the present invention a device associated with the payer, which in a preferred embodiment is a suitably adapted mobile telephone, becomes involved in the payment transaction process. At one level, the transaction processing system requests from the payer electronic device confirmation that the transaction should proceed and the payer keys in an appropriate PIN to authorize the transaction. At another level, all the transaction processing information is provided from the payer electronic device to the transaction processing system and the transaction processing system or the payer electronic device then confirm that the transaction is authorized to the merchant device. This takes the burden of transaction processing off the merchant and also increases the security of the transaction as the payer is in control. In a further embodiment, the payer electronic device may also upload listings of products and select products at the same time as paying for them, the payee (merchant) being advised of the selected product.

Claims

1. A method of making a payment, comprising the steps of:

providing information associated with a payer, the information being provided in a manner so that a payee can access the information,

receiving information about the payment by a payer electronic device associated with the payer, and

giving instructions for making the payment using the electronic device associated with the payer;

wherein the information about the payment includes product information in the form of at least one product identifier of at least one product available from the payee, and the method includes the step of the payer electronic device selecting at least one product identifier, and wherein the payer electronic device is a computing device and the product identifier is in computer recognizable form, the payer electronic device being arranged to recognize and process the product identifier;

wherein the information about the payment further includes payment information including a payment amount for the at least one product and a payment identity of the payee, wherein the payer electronic device is arranged to enable recognition of the payment information and to formulate messages including the payment information and transmit those messages to a transaction processing system;

wherein the step of giving instructions for making the payment includes the step of the payer electronic device providing the payment amount, payment identity of the payee and the selected product identifier to the transaction processing system;

the transaction processing system being arranged to access an account of the payer and make payment to the payee for the payment amount, and

the transaction processing system transmitting the product identifier m the payee, wherein the payee receives information about the at least one product paid for by the payer electronic device to enable provision of the product to the payer.

2. A method in accordance with claim 1, comprising the further step of the transaction processing system transmitting confirmation that payment has been made to the payee.

3. A method in accordance with claim 1, wherein the payer electronic device includes a display, and further comprising the step of the payer electronic device being arranged to display on the display payment information.

4. A method in accordance with claim 1, including the further step of the payer electronic device varying the payment amount.

5. A method in accordance with claim 4, wherein the payer electronic device includes a user input device and the step of varying the payment amount includes the step of the user inputting via the input device a varied payment amount.

6. A method in accordance with claim 1, wherein the product information is included in a listing including the at least one product identifier.

7. A method in accordance with claim 6, wherein the listing includes a plurality of the product identifiers comprising a menu of products provided by the payee, whereby the payer electronic device may select one or more of the products.

8. A method in accordance with claim 6, wherein the listing is made available via a network for a payer to upload to the payer electronic device.

9. A method in accordance with claim 8, wherein the network is a wide area network, such as the Internet.

10. A method in accordance with claim 1, wherein the step of receiving information about the payment by the payer electronic device includes the step of receiving information about the payment from a passive device.

11. A method in accordance with claim 10, wherein the passive device is an optically readable device.

12. A method in accordance with claim 11, wherein the optically readable device is a barcode.

13. A method in accordance with claim 10, wherein the passive device is provided as part of an invoice.

14. A method in accordance with claim 10, wherein the passive device is provided with a product for sale.

15. A method in accordance with claim 10, wherein the information about the payment includes instructions for utilising an application to control the payer electronic device to provide instructions for making the payment.

16. A method in accordance with claim 15, wherein the information about the payment includes location information identifying a location where a payer electronic device can obtain the application for uploading to the payer electronic device.

17. A method in accordance with claim 1, wherein the step of receiving information about the payment comprises receiving the information from a payee electronic device associated with the payee.

18. A method in accordance with claim 17, wherein the information associated with the payer includes payer electronic device information enabling the payee electronic device to communicate with the payer electronic device.

19. A method in accordance with claim 18, wherein the payer electronic device information is provided by an access device associated with the payer electronic device.

20. A method in accordance with claim 19, wherein the access device is a smart card.

21. A method in accordance with claim 19, wherein the access device is integral with the payer electronic device.

22. A method in accordance with claim 18, wherein communication between the payee electronic device and the payer electronic device is via a local wireless network.

23. A method in accordance with claim 18, wherein communication between the payer and payee electronic device is via a telephone network.

24. A method in accordance with claim 23, wherein the telephone network includes a mobile telephone network.

25. A method in accordance with claim 1, wherein the instructions for making the payment axe transmitted directly from the payer electronic device to the transaction processing system.

26. A method in accordance with claim 1, wherein the instructions for making the payment are transmitted to the transaction processing system via a payee electronic device.

27. A method in accordance with claim 1, wherein the instructions for making the payment include a confirmation transmitted to a transaction processing system that the payment should proceed.

28. A method in accordance with claim 27, comprising the step of the confirmation being generated by the payer electronic device.

29. A method in accordance with claim 28, wherein the payer electronic device includes input device, and the step of generating the confirmation includes the step of requiring user input via the input device to enable the confirmation to be generated.

30. A method in accordance with claim 29, wherein the step of requiring is implemented by an application provided by the payer electronic device.

31. A method in accordance with claim 30, wherein the application is implemented within firmware in the payer electronic device.

32. A method in accordance with claim 29, wherein the payer electronic device includes a display, and the step of requiring requires the user to acknowledge via the input device information about the payment appearing on the display.

33. A method in accordance with claim 27, wherein the confirmation includes encoded information.

34. A method in accordance with claim 33, wherein the encoded information is a digital signature.

35. A method in accordance with claim 1, wherein the information associated with the payer includes an account identifier of an account of the payer.

36. A method in accordance with claim 35, wherein the account identifier is provided by the payer providing a card, such as a credit card.

37. A method in accordance with claim 36, wherein the account identifier is part of an account number, and wherein a transaction processing system stores the other part of the account number.

38. A method in accordance with claim 37, wherein the part account number is provided by the payer electronic device in encrypted form.

39. A method in accordance with claim 1, wherein the information about the payment includes one or more applications including instructions for controlling the payer electronic device to provide instructions for making the payment.

40. A method in accordance with claim 39, including the further step of uploading to the payer electronic device the one or more applications from a network.

41. A method is accordance with claim 1, wherein the information associated with the payer is a confirmation that payment has occurred.

42. A method in accordance with claim 1, wherein the information associated with the payer includes an identity of the payer.

43. A method in accordance with claim 1, wherein the step of giving instructions for making the payment include the payer electronic device pre-approving the payment before the payment transaction takes place, by providing pre-approval instructions to the transaction processing system.

44. A method in accordance with claim 1, wherein the payer electronic device is a portable device.

45. A method in accordance with claim 44, wherein the portable device is a palm-type computer.

46. A method in accordance with claim 44, wherein the portable device is a mobile telephone.

47. An apparatus for facilitating a payment transaction from a payer to a payee, comprising a payer electronic device associated with the payer, the payer electronic device including a payment information receiving device for receiving information about the payment, and payment instructing device for giving instructions for making the payment;

wherein the information about the payment includes product information in the form of at least one product identifier of a product available from the payee, and the payer electronic device is arranged to enable selection of at least one product identifier, and wherein the payer electronic device is a computing device and the product identifier is in computer recognizable form, the payer electronic device being arranged to recognize and process the product identifier;

wherein the information about the payment further includes payment information including a payment amount for the at least one selected product;

wherein the payment instructing device is arranged to provide the payment amount, payment identity of the payee and the selected product identifier to a transaction processing system, the transaction processing system being arranged to access an account of the payer and make payment to the payee for the payment amount, and the transaction processing system comprises a transmitting device that transmits the product identifier to the payee, wherein the payee receives information about the product ordered and paid for by the payer electronic device to enable provision of the product to the payer, and wherein the payer electronic device is arranged to enable recognition of the information about the payment and to formulate messages including the information about the payment and transmit those messages to a transactional processing system.

48. An apparatus in accordance with claim 47, wherein the transaction processing system is arranged to transmit confirmation that payment has been made to the payee.

49. An apparatus in accordance with claim 47, wherein the payer electronic device includes a display and is arranged to display payment information.

50. An apparatus in accordance with claim 47, wherein the payer electronic device includes an input device enabling the user to vary the payment amount.

51. An apparatus in accordance with claim 47, wherein the product information is in the form of a listing including a plurality of product identifiers from which the payer electronic device may select.

52. An apparatus in accordance with claim 47, wherein the payer electronic device is arranged to upload the product information from a database where the product information is available.

53. An apparatus in accordance with claim 47, wherein the payer electronic device includes a reading device arranged to read information about the payment from a passive device.

54. An apparatus in accordance with claim 53, wherein the passive device is an optically readable device and the reading device includes an optical reader.

55. An apparatus in accordance with claim 54, wherein the optically readable device is a barcode.

56. An apparatus in accordance with claim 54, wherein the reading device includes a camera.

57. An apparatus in accordance with claim 54, wherein the reading device is arranged to identify a passive device as providing information about the payment.

58. An apparatus in accordance with claim 47, the payer electronic device further including a communication device arranged to communicate with a payee electronic device.

59. An apparatus in accordance with claim 58, wherein the communication means includes device enabling communication via a local wireless network.

60. An apparatus in accordance with claim 58, the payer electronic device including an access device arranged to provide information to the payee electronic device to enable communication between the payee electronic device and the payer electronic device.

61. An apparatus in accordance with claim 60, wherein the access device is a smart card.

62. An apparatus in accordance with claim 60, wherein the access device is integral with the payer electronic device.

63. An apparatus in accordance with claim 58, wherein the payer electronic device includes a transmission device for transmitting the instructions for making the payment to the transaction processing system, the transmission device being arranged to transmit the instructions via the payee electronic device.

64. An apparatus in accordance with claim 47, the payer electronic device comprising remote transmission device being arranged to transmit the instructions for making the payment to a transaction processing system.

65. An apparatus in accordance with claim 64, wherein the remote transmission device is a transmitter arranged to transmit the signals via a mobile telephone network.

66. An apparatus in accordance with claim 47, wherein the instructions for making the payment include a confirmation transmitted to the transaction processing system that the payment should proceed, and the payment instructing device includes confirmation generation device for generating the confirmation.

67. An apparatus in accordance with claim 66, wherein the payer electronic device includes input device, and user input via the input device is required for the confirmation generation device to generate the confirmation.

68. An apparatus in accordance with claim 67, wherein the confirmation generation device is implemented partly or wholly by firm ware.

69. An apparatus in accordance with claim 67, wherein the payer electronic device includes a display and the confirmation generation means requires the user to acknowledge via the input means information about the payment appearing on the display, in order for it to generate a confirmation.

70. An apparatus in accordance with claim 67, wherein the confirmation generation means is arranged to generate a confirmation in the form of encoded information.

71. An apparatus in accordance with claim 70, wherein the encoded information is a digital signature.

72. An apparatus in accordance with claim 47, the payer electronic device including a storage device arranged to store at least one application including instructions for controlling the payment instructing means to give instructions for making the payment.

73. An apparatus in accordance with claim 72, the payer electronic device being arranged to upload the at least one application from a database.

74. An apparatus in accordance with claim 47, wherein the instructions for making the payment include an account identifier, identifying an account of the payer.

75. An apparatus in accordance with claim 74, wherein the account identifier includes a portion of an account number, and wherein the transaction processing system stores the other portion of the account number.

76. An apparatus in accordance with claim 47, wherein the instructions for making the payment includes a pre-approval, authorising payment for a subsequent payment transaction.

77. An electronic system comprising at least one processor and at least one memory device, the at least one memory device storing instructions, which when executed by the at least one processor, cause the at least one processor to:

provide information associated with a payer, the information being provided in a manner so that a payee can access the information;

receive information about the payment with a payer electronic device associated with the payer;

give instructions for making the payment using the electronic device associated with the payer;

wherein the information about the payment includes product information in the form of at least one product identifier of at least one product available from the payee, and wherein the payer electronic device is a computing device and the product identifier is in computer recognizable form the payer electronic device being arranged to recognize and process the product identifier;

select, with the payer electronic device, at least one product identifier;

wherein the information about the payment further includes payment information including a payment amount for the at least one product and a payment identity of the payee, wherein the payer electronic device is arranged to enable recognition of the payment information and to formulate messages including the payment information and transmit those messages to a transaction processing system;

wherein giving instructions for making the payment includes providing, with the payer electronic device, the payment amount, payment identity of the payee and the selected product identifier to the transaction processing system;

the transaction processing system being arranged to access an account of the payer and make payment to the payee for the payment amount; and

transmit, with the transaction processing system, the product identifier to the payee, wherein the payee receives information about the at least one product paid for by the payer electronic device to enable provision of the product to the payer.

78. At least one non-transitory computer readable medium comprising data instructions stored therein, which when executed by at least one processor, cause the processor to:

provide information associated with a payer, the information being provided in a manner so that a payee can access the information;

receive information about the payment with a payer electronic device associated with the payer;

give instructions for making the payment using the electronic device associated with the payer;

wherein the information about the payment includes product information in the form of at least one product identifier of at least one product available from the payee, wherein the payer electronic device is a computing device and the product identifier is in computer recognizable form, the payer electronic device being arranged to recognized and process the product identifier,

select, with the payer electronic device, at least one product identifier;

wherein the information about the payment further includes payment information including a payment amount for the at least one product and a payment identity of the payee, wherein the payer electronic device is arranged to enable recognition of the payment information and to formulate messages including the payment information and transmit those messages to a transaction processing system;

wherein giving instructions for making the payment includes providing, with the payer electronic device, the payment amount, payment identity of the payee and the selected product identifier to the transaction processing system;

the transaction processing system being arranged to access an account of the payer and make payment to the payee for the payment amount; and

transmit, with the transaction processing system, the product identifier to the payee, wherein the payee receives information about the at least one product paid for by the payer electronic device to enable provision of the product to the payer.