U.S. patent application number 10/181929 was filed with the patent office on 2003-01-02 for system for conducting commercial transactions.
Invention is credited to Badenhorst, Cornelius Johannes, Joubert, Jozef Phillipus Wolhuter, Saks, Craig Sheldon, Van Rensburg, Johannes Janse, Willis, Anthony Ian.
Application Number | 20030004891 10/181929 |
Document ID | / |
Family ID | 27145433 |
Filed Date | 2003-01-02 |
United States Patent
Application |
20030004891 |
Kind Code |
A1 |
Van Rensburg, Johannes Janse ;
et al. |
January 2, 2003 |
System for conducting commercial transactions
Abstract
The invention provides a system for conducting commercial
transactions in an economic environment including one or more
banking institutions, a plurality of merchants (as defined), and a
plurality of participating system members (as defined) associated
with at least one cellular telephone network. The system employs an
independent general computerized server accessible to participating
system members and merchants by way of a wireless network, and
capable of on-line communication with banking institutions and
vendors. The server includes at least a financial data base record
for each participating system member, merchant and participating
vendor and enables a participating system member, by suitable
activation of that member's mobile device, typically a cellular
telephone, in a remote location, to conduct a financial transaction
by debiting a financial data base record allocated to the
instructing participating system member. At some stage prior to a
transaction being completed, and this may be included with the
initial message, the instructing participating system member is
required to transmit an authenticating security code. Once
completed, the transaction is irreversible (as defined).
Inventors: |
Van Rensburg, Johannes Janse;
(Welgemoed, ZA) ; Saks, Craig Sheldon;
(Durbanville, ZA) ; Badenhorst, Cornelius Johannes;
(Durbanville, ZA) ; Joubert, Jozef Phillipus
Wolhuter; (Durbanville, ZA) ; Willis, Anthony
Ian; (Centurion, ZA) |
Correspondence
Address: |
JACOBSON HOLMAN PLLC
400 SEVENTH STREET N.W.
SUITE 600
WASHINGTON
DC
20004
US
|
Family ID: |
27145433 |
Appl. No.: |
10/181929 |
Filed: |
July 29, 2002 |
PCT Filed: |
January 29, 2001 |
PCT NO: |
PCT/IB01/00093 |
Current U.S.
Class: |
705/64 ;
705/35 |
Current CPC
Class: |
G06Q 20/108 20130101;
G06F 21/6245 20130101; G06Q 20/385 20130101; G06Q 20/04 20130101;
G06Q 40/00 20130101; G06Q 20/20 20130101; G06Q 20/10 20130101; G06Q
20/3227 20130101; G06Q 20/382 20130101; G06Q 20/3223 20130101; G07F
17/16 20130101; G06Q 20/388 20130101 |
Class at
Publication: |
705/64 ;
705/35 |
International
Class: |
G06F 017/60 |
Foreign Application Data
Date |
Code |
Application Number |
Jan 28, 2000 |
ZA |
2000/0385 |
Mar 3, 2000 |
ZA |
2000/1095 |
Claims
1. A computer based system for conducting commercial transactions
and which includes a plurality of participating system members (as
herein defined) each having a mobile device adapted to communicate
via an associated wireless network with a general computerized
server in which a financial data base record is allocated to each
participating system member, the system including also a plurality
of merchants (each of which by definition has been allocated a
financial data base record in the computerized server) and wherein
the computerized server is programmed such that financial
transactions can be conducted by remote operation of the mobile
device of a participating system member, via the wireless network,
to result in the debiting of a financial data base record
associated with an instructing participating system member and the
crediting of a different financial data base record associated with
any one of self, another participating system member and a
merchant, the system being characterized in that in respect of at
least one or more predetermined categories of transactions in
respect of which the recipient is either a participating system
member or a merchant, the transaction, once completed, is
irreversible.
2. A system as claimed in claim 1 in which each transaction becomes
completed only after the computerized server receives a security
signal from the mobile device of the participating system member
whose data base record is to be debited, the security signal being
either a PIN or like code inputted by the said participating system
member, or a biometrically triggered authorization signal.
3. A system as claimed in claim 2 in which the security signal
requires manual activation in response to on-line interrogation
from the computerized server.
4. A system as claimed in any one of the preceding claims in which
the mobile device is a mobile telephone.
5. A system as claimed in any one of the preceding claims in which
the said categories of transactions include at least transactions
in respect of which the recipient is one of a predetermined list of
participating system members or merchants.
6. A system as claimed in any one of the preceding claims in which
the said categories include all transactions in respect of which
the recipient is a participating system member or merchant.
7. A system as claimed in any one of the preceding claims in which
the computerized server is programmed to disallow a requested
transaction in the event that the balance of units in an
instructing participating member's financial data base record is
inadequate to fund the requested transaction.
8. A system as claimed in any one of the preceding claims in which
the financial data base records, in the absence of special
individually allocated credit facilities, are programmed to operate
exclusively on a credit balance basis.
9. A system as claimed in any one of the preceding claims in which
the computerized server is one of a series of similarly structured
and programmed associated computerized servers located optionally
at different geographical localities and inter-linked such that
transactions can be conducted by a participating system member of
one computerized server to the financial data base record of a
participating system member or merchant of a different computerized
server with the transaction nevertheless becoming irreversible once
completed.
10. A system as claimed in claim 9 in which at least some of the
general computerized servers are located in different countries in
which case any necessary currency exchange rates (selected
according to prevailing exchange rates and any particular policy
being applied in relation thereto) are applied to the value of the
transaction as may be appropriate in real time so as to render the
transaction immediately cleared.
11. A system as claimed in any one of the preceding claims in which
the general computerized server is programmed to receive
instructions to carry out a financial transaction in the
alternative via a call centre which may be manned or totally
electronic in nature, via an Internet browser, or by way of
interactive voice response; or from a creditor, in particular from
a point of sale (POS) device.
12. A system as claimed in any one of the preceding claims in which
each participating system member is provided with a swipe card or a
device capable of communicating by radio frequency, infrared or
other electromagnetic radiation for facilitating the secure and
accurate transfer of the participating system member's account
number and optionally also other data to a recipient communications
of a merchant or vendor.
13. A system as claimed in any one of the preceding claims in which
at least selected data base records have multiple sub-records each
of which has a balance redeemable only for one specific purpose or
for the advantage of one or more specific merchants or vendors or
with other limitations or controls on the individual
sub-records.
14. A system as claimed in claim 13 in which overall controls are
imposed on the data base records individually top limit the rate of
expenditure on a time basis or on the basis of particular
recipients, or both.
15. A system as claimed in any one of the preceding claims in which
the financial data base record includes, or has access to another
data base record being a personal data base record of personal
information of a type typically required for use in carrying out
certain financial transactions.
16. A system as claimed in claim 15 in which the personal includes
details of one or more current addresses and the programming of the
computerized server is such that a change of address is
automatically communicated to all parties which had previously been
supplied with a corresponding old address.
17. A system as claimed in any one of the preceding claims in which
the computerized server is programmed to issue, against a debit of
a system member's financial data base record, a cryptogram adapted
to unlock value of a predetermined nature or character in a
vendor's system.
18. A system as claimed in any one of the preceding claims in which
the system utilizes the services of not only one, but two or more
wireless networks so that at least some of each network's
subscribers make up the plurality of participating system
members.
19. A system as claimed in any one of the preceding claims in which
the general computerized server of this invention is associated
with a particular bank whose banking system operates a bank account
from which the general computerized server itself can draw and
deposit funds as and when required.
20. A system as claimed in any one of claims 1 to 18 in the general
computerized server is that of an associated mobile telephone
network.
Description
FIELD OF THE INVENTION
[0001] This invention relates to a computer based system for
conducting commercial transactions and, more particularly, to a
system which includes the provision for the transfer of funds or
other redeemable value from an account under the control of one
entity to another account with clearing being effected in real time
and without the transfer of hard cash or electronic cash of the
nature described below.
[0002] Still more particularly, but not exclusively, the invention
relates to a system for enabling the convenient transfer of amounts
of money value including both relatively small and large amounts of
money value, for example, from one person to another or to a
merchant, and which can obviate other systems which enable value
(sometimes referred to as electronic cash, or e-cash) to be
transferred from one electronic purse or wallet, usually in the
form of a smart card, to another, in transactions free of hard
cash.
BACKGROUND TO THE INVENTION
[0003] There have been numerous different proposals of systems
aimed at substantially diminishing the use of hard cash in
every-day transactions, particularly, but by no means exclusively,
transactions of small money value and also aimed at the disposal of
income, with a view to improving convenience, safety and security
and particularly with a view to avoiding the necessity of persons
carrying appreciable amounts of hard cash on their person.
[0004] Broadly, the proposals which are currently under
consideration and some of which are being implemented, involve the
use of a smart card or equivalent electronic memory embodied in a
dedicated physical entity (herein referred to as a smart card
irrespective of actual physical form), often referred to in the
industry as an electronic purse or wallet, in which a positive cash
balance is retained in memory for utilization by transferring
amounts from time to time to a similar smart card of another person
or of a supplier of goods or services.
[0005] Whilst many of these systems might operate effectively from
a conceptual point of view, applicant believes that they suffer
from basic disadvantages from a practical point of view not least
of which are the possibility of the smart card or other physical
entity being stolen or lost and the necessity that a person needing
to replenish the credit or other redeemable value in the smart card
generally needs to present it physically to a machine or
institution. Also, these systems mostly involve the use of special
equipment with which the electronic purse can communicate at a
point of sale in order to effect a transfer of electronic cash and
such equipment represents an appreciable cost.
[0006] Various other proposals have therefore been put forward to
avoid the use of an electronic purse or other physical entity such
as a smart card. One such proposal is that set out in U.S. Pat. No.
5,991,749 to Morrill Jr. The proposal put forward in this prior
patent hinges on the use of a cellular telephone provider's central
processing unit (CPU) and the cellular telephone accounts structure
for enabling commercial transactions to be carried out by suitable
operation of a cellular telephone to credit and debit the relevant
cellular telephone accounts. It is mentioned that other accounts
could be debited and credited but no meaningful disclosure of any
such arrangement is provided.
[0007] Whilst this proposal does address certain of the
difficulties inherent in the smart card type of proposals it too
has a number of serious disadvantages, at least when particular
objectives are to be achieved. In particular, other than in a
pre-paid situation, ultimate retention of the funds by the
recipient is still dependent on recovery thereof by the service
provider from the subscriber and the transaction is reversible at
the instance of the service provider.
[0008] PCT patent publication no WO9613814 describes a similar
arrangement but one in which the transfer of funds is aimed at
being carried out in the bank's computer system without any attempt
to address the general difficulties associated with the manner in
which banks control clients' accounts and more particularly the way
in which they control access to newly deposited funds as indicated
below.
[0009] The general difficulties which applicant perceives in both
of the latter proposals as well as in systems presently in common
use and which employ credit cards, debit cards, cheques and other
fund transfers carried out by a financial institution such as stop
orders, debit orders and the like, is that any fund transfer
credited to an account of a recipient can be reversed at the
instance of, in amongst others, the payer of the relevant funds
with the assistance of the relevant financial institution, the
service provider in the case of the system of Morrill, the payer's
bank or other financial institution in cases in which a bank or
other financial institution is involved, or a credit card company
which may be involved. Thus there is considerable doubt on the part
of the recipient for an appreciable length of time as to whether or
not the transfer can be relied upon fully.
[0010] Added to this problem is the fact that financial
institutions very often restrict the immediate use of deposited
funds for an appreciable length of time, typically days, but
sometimes even weeks pending clearance. This problem is
particularly commonplace in respect of payments made by cheque.
[0011] It is in overcoming the latter general difficulties that
smart cards and other electronic money can be an attractive
solution in spite of their disadvantages as set out above.
OBJECT OF THE INVENTION
[0012] It is, accordingly, an object of this invention to provide a
computer based system for conducting commercial transactions
whereby one or more of the general difficulties outlined above may
be overcome and the general disadvantages of the smart card type of
arrangement may also be addressed whilst retaining, at least to a
significant extent, the advantages of the smart card type of
arrangement.
DEFINITIONS
[0013] In this specification it is to be understood that the
following terms are to be according the meanings stated
hereunder.
[0014] "Bank" means any financial institution carrying on the
business of transferring funds held on behalf of, or loaned to, a
customer and recorded in a computer data base record from that data
base record to a computer data base record of another customer of
that, or of another, institution whether or not the institution
complies with the local or national requirements for trading under
the name of a bank.
[0015] "Cleared", "clearance" or any other form of the word as
applied to a transaction means that the relevant credit has become
available for use by the recipient without restriction by the
computerized server in which the relevant financial data base
record is held.
[0016] "Electronic purse" includes "electronic wallets" and other
equivalents and is intended to mean any electronic memory for
retaining data which translates into a positive balance of
redeemable value units, usually, but not necessarily, units of
currency generally referred as electronic money or e-cash and which
can generally be used as and when desired by or on behalf of the
holder by a simple credit transfer off-line with respect to any
bank or credit card institution.
[0017] "Financial data base record" is intended to mean any data
base record including data as to an amount of money reflected in
currency units or a record of a number of any other type of
redeemable or consumable units having value.
[0018] "Irreversible" as applied to a transaction means that,
absent criminal activity (including fraud) or processing error
(whether hardware or software related) the transaction cannot be
reversed other than at the instance of the recipient.
[0019] "Merchant" is intended to include all suppliers of goods and
services of all types which may be participating system members as
herein defined but irrespective of such membership have been
allocated a financial data base record in a computerized server of
the invention as defined below.
[0020] "Mobile device" means any device communicating by way of a
wireless network operated by a service provider and including
mobile telephones but which need not necessarily assume the form of
a telephone.
[0021] "Participating system member" is intended to mean any
subscriber of a wireless network forming a part of a system
according to this invention as hereinafter defined and includes
mobile telephone subscribers as well as users of prepaid cellular
or mobile services who form part of such a system.
[0022] "Settled", "settlement" or any other form of the word as
applied to a transaction means the final transfer of money or other
units of value as between financial institutions; between financial
institutions and a central bank; between financial institutions and
computerized servers according to this invention; or between
different computerized servers according to this invention and
which generally take place on a periodic basis (for example daily
or weekly) and wherein set-off may or may not be employed to result
in a single net transfer of money or units of value in respect of a
plurality and often a large number of transactions.
[0023] "Vendor" is intended to include all suppliers of goods and
services of all types which do not have a financial data base
record as herein defined.
SUMMARY OF THE INVENTION
[0024] In accordance with this invention there is provided a
computer based system for conducting commercial transactions and
which includes a plurality of participating system members (as
herein defined) each having a mobile device adapted to communicate
via an associated wireless network with a general computerized
server in which a financial data base record is allocated to each
participating system member, the system including also a plurality
of merchants (each of which by definition has been allocated a
financial data base record in the computerized server) and wherein
the computerized server is programmed such that financial
transactions can be conducted by remote operation of the mobile
device of a participating system member, via the wireless network,
to result in the debiting of a financial data base record
associated with an instructing participating system member and the
crediting of a different financial data base record associated with
any one of self, another participating system member and a
merchant, the system being characterized in that in respect of at
least one or more predetermined categories of transactions in
respect of which the recipient is either a participating system
member or a merchant, the transaction, once completed, is
irreversible.
[0025] Further features of the invention provide for each
transaction to become completed only after the computerized server
receives a security signal from the mobile device of the
participating system member whose data base record is to be
debited, the security signal being either a PIN or like code
inputted by the said participating system member, or a
biometrically triggered authorization signal; for the security
signal to be included in a composite instructing message or to be
supplied by manual activation in response to on-line interrogation
from the computerized server; for the mobile device to be a mobile
telephone, in particular a cellular telephone; and for the said
categories of transactions to include at least transactions in
respect of which the recipient is one of a predetermined list of
participating system members or merchants but, more typically, said
categories include all transactions in respect of which the
recipient is a participating system member or merchant.
[0026] Still further features of the invention provide for the
program of the computerized server to disallow a requested
transaction in the event that the balance of units in an
instructing participating member's financial data base record is
inadequate to fund the requested transaction; for the program of
the computerized server to disallow a requested transaction in the
event that the validity of the recipient as a participating system
member or merchant cannot be verified; for the financial data base
records, in the absence of special individually allocated credit
facilities, to be programmed to operate exclusively on a credit
balance basis; for the programming of both the mobile telephone and
the general computerized server to ensure that at least messages
concerning financial transactions are encrypted and decrypted in
suitable manner; and for a participating system members' financial
data base record to be identified, at least in part, by the
relevant cellular telephone number.
[0027] The invention also provides for the computerized server to
be one of a series of similarly structured and programmed
associated computerized servers located optionally at different
geographical localities and inter-linked such that transactions can
be conducted by a participating system member of one computerized
server to the financial data base record of a participating system
member or merchant of a different computerized server with the
transaction nevertheless becoming irreversible once completed; for
at least some of the general computerized servers to be located in
different countries in which case any necessary currency exchange
rates (selected according to prevailing exchange rates and any
particular policy being applied in relation thereto) are applied to
the value of the transaction as may be appropriate in real time so
as to render the transaction immediately cleared; and for
settlement between the various general computerized servers to be
effected periodically on a bulk basis after, in appropriate cases,
setting off transactions carried out during the relevant period, or
in some instances by way of a centralized settlement bank, such as
a national bank of a particular country or state.
[0028] Still further features of the invention provide for the
general computerized server to be programmed to receive
instructions to carry out a financial transaction in the
alternative via a call centre which may be manned or totally
electronic in nature, via an Internet browser, or by way of
interactive voice response; or from a creditor, in particular from
a point of sale (POS) device; and for each participating system
member to be provided with either a data retaining card such as a
swipe card or another device such as one capable of communicating
by radio frequency, infrared or other electromagnetic radiation, in
either case for facilitating either the secure and accurate
transfer of the participating system member's account number and
optionally also other data to a recipient communications device
which could be another participating system member's mobile device
or a POS device or other device of a merchant; or for transmitting
transaction related data to the initiating (payer) participating
system member's mobile device.
[0029] Briefly, the system outlined above has all the advantages of
a smart card or other system based on electronic money but without
any of the disadvantages. However, in contradistinction, the
balance of units in a financial data base record of this invention
is indeed real money in a bank account with the facility of
transferring it irreversibly as with hard cash or electronic cash.
There are thus none of the risks associated with either forms of
cash as the financial data base record is located in a secure
computerized server remote from the mobile device which may be used
to transfer funds to and from it.
[0030] The effect is, therefore, one in which transactions falling
within the relevant categories become immediately cleared whilst
settlement can take place at a later time. The invention therefore
provides a system operating what are effectively cash transactions
without any of the usual dangers and disadvantages associated with
hard cash or electronic cash.
[0031] It is an additional feature of the invention that each data
base record is able to have multiple sub-records each of which has
a balance redeemable only for one specific purpose or for the
advantage of one or more specific merchants or vendors or with any
other limitations or controls on the individual sub-records.
Alternatively, or in addition, overall controls of any desired
nature can be imposed on the data base records individually, such
as limiting the rate of expenditure on a time basis or on the basis
of particular recipients, or both.
[0032] It is a particular feature of this invention that the
financial data base record may include, or be linked to, another
data base record being a personal data base record of personal
information of a type which could be required in carrying out
certain financial transactions such as purchasing fixed property, a
motor vehicle, a television set requiring personal information for
licence purposes, insurance matters etc so that the information can
be made immediately available in order to complete such a
transaction without any difficulty in retrieving information
required. This personal information could also include details of
current addresses and the programming of the computerized server
could be such that when there is a change of address, this is
automatically communicated to all parties which had previously been
supplied with the old address. Release of personal information from
such a data base record is controlled by the input of a security
signal as indicated above.
[0033] A further optional facility that can be made available is
for the computerized server to be programmed to issue, against a
debit of a system member's financial data base record, a cryptogram
adapted to unlock value of a predetermined nature or character in a
system such as, for example, a vending machine of any description
including the vending of cellular air time. A still further option
is to provide the facility for exchanging units of one type of
value for units of another type of value.
[0034] The program of the computerized server may be designed to
permit, as an additional option, transactions to be conducted from
the mobile device of a participating system member which have the
effect of crediting directly or indirectly an account at a
different participating bank such as an account nominated by an
associated vendor. Such transactions will clearly not necessarily
be irreversible and would be subject to the rules of the recipient
bank.
[0035] It is a particular feature of this invention that the system
is able to utilize the services of not only one, but also two or
more wireless networks, in particular, mobile or cellular telephone
networks and at least some of each network's subscribers would then
make up the body of participating system members.
[0036] The general computerized server of this invention may be
associated with a particular bank in a variety of different ways.
It may, for example, be separate from, but in permanent or
intermittent communication with, the bank whose banking system
operates a bank account from which the general computerized server
itself can draw and deposit funds as and when required.
[0037] In the alternative, the general computerized server of this
invention may in fact be a bank's existing server re-programmed to
enable transactions according to this invention to be conducted in
parallel with the conventional or existing transactions usually
using cheques, an ATM, and stop or debit orders. In such a case the
transactions of the system of this invention may be recorded in a
separate sub-ledger of the bank, for example.
[0038] As a still further alternative the server could be that of
an associated mobile telephone network as proposed by Morrill but
programmed to operate in accordance with this invention.
[0039] The network protocol on which a relevant mobile, in
particular cellular, network, and the associated telephones operate
is largely irrelevant to the functioning of the system of this
invention. Thus, for example, a cellular network and cellular
telephones used in the implementation of the system may be adapted
for operation on the so-called Wireless Application Protocol (WAP);
on the standard American systems known as CDMA and TDMA; on any
future systems such as GPRS, USSD and 3G; on a browser based system
such as the Wireless Internet Gateway (WIG); or on a system based
on short message service (SMS) format transmissions.
[0040] Furthermore, and irrespective of the network protocol
employed, it is preferred that the mobile telephone possess
sufficient memory or data storage facility to enable adequate
program or application material and data to be retained on the
cellular telephone to enable a composite message to be formulated
within the telephone and consisting of at least two and generally a
group of items of information prior to a communicating connection
being made to the computerized server by way of the wireless
network. In this regard it is preferred that the mobile telephone
be programmed with a set of standard pre-defined messages so that
the appropriate message can simply be selected from a menu and
completed by supplying, for example by inputting it by way of the
keypad or recovering it from memory by way of another menu, any
missing data prior to the composite message being communicated to
the computerized server. The missing data would typically be the
identity of the recipient; the amount to be transferred; and the
PIN or other security signal.
[0041] In order to become a participating system member the
relevant subscriber, for example a cellular telephone subscriber,
need only contract with the provider of the system including the
computerized server and the relevant cellular telephone must have
adequate memory facility available. There is no new or enabling
contractual bond necessary between a participating system member
and the network provider as the network is strictly only a vehicle
for enabling the communication with the computerized server. The
only necessary involvement on the part of the network provider is
in the instance that its cellular telephones employ SIM cards as
the microprocessor memory and data storage device. The reason for
this is that the network provider generally supplies the SIM cards.
In any event, in such a case it is generally the SIM card that must
possess adequate memory to enable the additional program material
and menu data to be added to it over and above the conventional
programs and menu data.
[0042] The additional applications and data may also have a
"bookmark" facility for assisting in accessing particular chosen
items as and when required.
[0043] It will be understood from the aforegoing that
implementation of the invention can provide an extremely simple and
effective system of conducting commercial transactions which can
handle not only numerous transactions of relatively small value,
very much in the way of existing proposals employing smart cards,
but also all other transactions to which circumstances are
appropriate.
[0044] In order that the above and other features of the invention
may be more fully understood one embodiment as well as a variety of
optional features thereof will now be described with reference to
the accompanying drawings.
BRIEF DESCRIPTION OF THE DRAWINGS
[0045] In the drawings:--
[0046] FIG. 1 is a schematic diagram of a system according to the
invention; and,
[0047] FIG. 2 is a block diagram of a cellular telephone forming
part of the system illustrated in FIG. 1.
DETAILED DESCRIPTION WITH REFERENCE TO THE DRAWINGS
[0048] Simply by way of example the instant embodiment of the
invention is described as being applied to a computerized server to
be accessed using, in amongst other devices, cellular telephones in
which a microprocessor and memory are embodied in a SIM card
removably retained in each of the relevant cellular telephones.
However, it will be quite apparent to those skilled in the art,
that the invention can just as easily be applied to any other type
of cellular or mobile telephone or other suitable wireless device
and associated network and that the term cellular telephone can be
replaced by such other suitable device in what follows. Also a
single system may involve the use of a plurality of different
wireless and other communications devices as will be apparent from
a reading of this specification although for simplicity of
description cellular telephones will be used as the example.
[0049] Also, in the embodiment of the invention described below,
whilst the format of transmitting messages is that of the well
known short message service (SMS), it will be appreciated that any
other appropriate format or protocol can be employed, the format
being irrelevant insofar as the principles of operation of the
invention are concerned.
[0050] In this embodiment of the invention a system for conducting
commercial transactions includes a large number of participating
system members (as herein defined) each of which has, in this case,
a cellular telephone (1) embodying a SIM card (2) (see FIG. 2) or
having alternative memory specially selected to be adequate for the
purposes of implementing the invention as described below. The SIM
cards are each pre-programmed with conventional applications and
data as indicated by numeral (3) (see FIG. 2) as well as with
additional applications and additional data necessary for the
implementation of a system according to the invention as indicated
by numeral (4) in FIG. 2. The additional applications and data are
arranged in a standard type of menu structure as illustrated in
FIG. 2 and each menu item has associated with it a preset standard
message which is a substantially complete instruction only
requiring a small amount of data to be added in order to complete
it, for example, the identity of the recipient and the amount to be
transferred. The identity of the recipient may even be selected
from a sub-menu in which there is a custom list of potential
recipients.
[0051] It is to be noted that in this particular embodiment of the
invention the participating system members need not all belong to
the same network and that a plurality of networks can be involved
without in any way adversely affecting the operation of the system
of this embodiment of the invention.
[0052] The conventional programs and data include data embodying
the cellular telephone number; the conventional access PIN number;
any other security number or other personal identifier such as a
biometric characteristic; and also conventional menu and data
relating to stored telephone numbers, addresses, short messages
etc.
[0053] The additional program applications and menu structures
include a program and associated menu items for enabling the
activities described hereinafter to be conducted; for providing the
ability to execute financial transactions employing an additional
PIN number or personal identifier, such as a biometric identifier,
if required; and for accessing additional menu items each of which
may be divided into sub-items. The additional applications may also
include a program providing the ability to update menu items
remotely by way of distributed messages originating from the
computerized server (see below) and containing updated menu data
and also to change the settings in a particular cellular
telephone.
[0054] The additional data accessible by way of the additional menu
structure may include account details relating to institutions of a
banking, retail, or service nature; selected merchants; selected
vendors; associated broadcast or information services; and other
remote similar computerized servers in other geographic areas or
countries. An example of the general type of arrangement of such an
additional menu structure is shown in FIG. 2.
[0055] The basic and most important additional menu item (111),
namely financial transactions, may be divided, in the first place,
into local (112); international (113); query (114) and
authorization request (115) activities. Provision for additional
items (116) may also be made. At the next level down, for example,
local transactions (112) can be divided into transactions between
participating system members (117); transactions with merchants
(118) (who do not necessarily have a cellular telephone as such but
by definition have a financial data base record); and transactions
between a participating system member and a participating banking
institution (119). Also it may be convenient to provide as a
separate menu item transactions between own accounts (120).
[0056] A second additional menu item (121) may provide a selection
of communications with one of a number of participating broadcast
information services which can be identified individually as menu
sub-items.
[0057] A third additional menu item(122) may be that of third party
applications and such a sub-menu may hold the identity of each of a
plurality of selected vendors which includes reservations services
and other institutions with whom it may be desirable to communicate
interactively.
[0058] A fourth additional menu item (123) may be that of settings
which includes basic information pertaining to the particular
cellular telephone and associated participating system member such
as personal information, accounts information etc.
[0059] A fifth additional menu item (124) may be that of
"help".
[0060] The extent to which the additional menu items and data are
carried by the cellular telephone itself will depend largely on the
capacity of the memory (in the instant case the SIM card) in the
mobile device and the associated microprocessor. Thus, in its most
comprehensive form, as far as the cellular telephone is concerned,
all of the applications and data occasioned by the additional menu
structures will be resident in the memory of the cellular
telephone. In other cases a lesser portion of those applications
and data may be present but in any event whatever is necessary to
achieve the objectives set out below. The smallest amount will
inevitably be cases in which the cellular telephone has a browser
for accessing the necessary applications and data which may then be
maintained on the server, for example.
[0061] Irrespective of this, all of the applications and data
associated with the additional menu items will be resident on the
computerized server described in more detail below.
[0062] The cellular telephone memory, in this case the SIM cards,
used in the system, are programmed to communicate interactively by
way of suitable interpretive software (6) with a general
computerized server (7) with the communication being by way of the
associated cellular network (5), the applicable one of which in
this particular instance is of the type generally known as GSM in
which SMS (sort message system) format of transmission is used.
[0063] The computerized server (7) is programmed to accept
instructions also from a computer, for example a laptop computer
(8); via the Internet as indicated by numeral (9) as well as from
call centres indicated by numeral (10); or even by way of intra-net
as indicated by numeral (11). Participating system members can
thus, as an alternative, carry out transactions from a remote
telephone (12) and land line (13), by calling in to the call centre
or by way of a computer via the Internet.
[0064] The computerized server (7) may also connected through
suitable communications software (14) with participating banking
institutions (15); with vendors (16); with merchants (17) not
having cellular telephones as well as information services (18).
Finally, the computerized server is also linked to similar
computerized servers (7a) which may be located in different
geographic areas or in different countries and each of which has
its own set of participating system members, merchants, vendors
etc.
[0065] Reverting now to the basis of the invention, the
computerized server in this embodiment of the invention provides a
data base record for each participating system member and merchant
wherein each data base record may be identified at least in part by
a cellular telephone number where applicable. Each data base record
also includes data embodying the additional PIN number, and any
additional security number or data which may be desirable.
[0066] The programming of the computerized server enables the
functions of receiving and sending out of data in the form of
messages; a facility for encrypting and decrypting data at least
with regard to financial transactions; and the ability to link up
with participating banks; vendors: broadcast services; other third
party services and other similar computerized servers.
[0067] Most importantly the program enables financial transactions
to be carried out between a participating system member as the
instructing participating system member and any one of another
instructing participating system member or merchant in the manner
indicated above by the debiting and crediting a value balance in
each data base record or sub-record affected by a particular
transaction.
[0068] Implementation of an application and menu structure of the
type described above with pre-set standard messages, enables data
pertaining to a transaction to be captured rapidly and a composite
message, including the additional PIN (almost invariably encrypted)
if it be required by the server, to be formulated prior to
connection with the server where the size of memory is adequate to
permit this. This results from the fact that a substantial part, if
not an entire duplicate, of the necessary parts of the program or
application as well as the menu data are resident in the memory of
the cellular telephone itself so that certain activities can be
carried out independently of the server. This facility will be
limited if inadequate memory is available in the cellular
telephone.
[0069] It must, therefore, be noted that the latter facility is not
essential to the invention and another implementation of the
invention may be to have a browser programmed into the cellular
telephone for use in accessing the necessary facilities to conduct
transactions, for example by way of the Internet. WAP phones could
be used to particular advantage in this instance.
[0070] In any event, if the recipient is a merchant which has its
own application and computer system a transaction may be selected
interactively with the recipient's application with the
communication being by way of the computerized server. Of course,
the computerized server can also be used as a conduit to any vendor
and to their computer systems.
[0071] The program of the computerized server may be formulated to
operate in accordance with any required set of rules which may be
varied according to circumstances and from time to time as may be
required.
[0072] As a general rule the computerized server is programmed to
enable the debiting from a relevant data base record which has an
adequate positive balance (or specially arranged credit facilities)
to another data base record in the general manner which will be
quite apparent from the above. Thus, a participating system member
will operate the cellular telephone to select a desired transaction
with a selected recipient and in respect of an inputted amount and
will then communicate with the computerized server. The
computerized server will check that the PIN or other security
signal is in order; will check that the necessary funds or credit
facility is available; will check the validity of the identity of
the selected recipient; and the program will then cause the server
to transfer the relevant funds from the data base record of the
instructing participating system member to the data base record of
a recipient who will usually be a different participating system
member or a merchant.
[0073] The most important aspect of this invention then comes into
play in that, once the transaction becomes completed, at least as
between an instructing participating system member and a recipient
who has a data base record in the computer server, the transaction
becomes irreversible. The transaction is therefore as good as
having taken place in cash of any type as the only person who can
reverse the transaction (other than in instances addressed in the
definition of "irreversible" above), either in whole, or partly by
way of a refund, is the recipient. Dispute resolution is therefore
up to the payer and recipient.
[0074] Once the transaction has been completed the server may be
programmed to send a confirmatory message to both parties advising
them of the completion of the transaction.
[0075] In effect, the invention provides a facility operating with
all the advantages of a smart card facility but without the
disadvantages in that the security and convenience of the system of
this invention is very much enhanced by using real money kept in a
real bank account remote from the activating unit (generally a
cellular telephone). Furthermore, the cost of providing the
infrastructure of a server operating in the manner of this
invention is substantially less than that of providing each
participant with a smart card and merchants and vendors with
special transfer devices for effecting a transfer of funds from one
smart card to another as well as the other facilities required.
This results from the fact that many persons who operate bank
accounts already operate cellular telephones.
[0076] The system of this invention also has the advantage that the
loss of a cellular telephone for whatever reason does not seriously
prejudice a participating system member in the same way as loss of
a smart card in the prior art system. In the system of this
invention a participating system member who loses his cellular
telephone can still conduct transactions by way of the Internet or
by way of a call centre set up for the purpose. The call centre
also enables persons to use the system who do not have a cellular
telephone and similarly computer owners who have access to the
Internet can use the system without possessing a cellular
telephone.
[0077] The above exemplifies the basis of the invention which may
be refined and enhanced in any of the ways indicated above.
[0078] In particular, it is considered to be particularly
advantageous to provide each participating system member with
additional data storage facility for the storage of personal data
in the data base so that required personal information is available
whenever required and it can also be released with authorization,
as and when required to third parties.
[0079] Also, in instances in which there are other similarly
configured and programmed servers inter-linked with the server
described above the recipient could be a participating system
member of a different server from that of which the payer is a
participating system member. In order to ensure that transactions
are nevertheless irreversible and can be carried out with clearance
taking place in real time the computerized servers must all be
connected, or be capable of immediate connection, at all times via
fixed connections. Each server will, of course, have its own unique
identification number.
[0080] In order to uniquely identify each participating system
member's data base record it is preferably allocated a
communication (account) number structured on an international
level. The communication (account) number could thus be structured
as a two digit international dialing code followed by a two, three,
or four digit national area code or national mobile operator code
and thereafter the subscriber mobile telephone number. This may be
followed by a two or three digit bank or server identifying number
which in turn is followed by a final check digit. The only new part
which really needs to be remembered by a client is the bank or
server identifying number and the check digit.
[0081] As an example, a communication number could be
[0082] +27823918711015.
[0083] This is composed of the following component strings:
[0084] +is a sign to introduce the communication number;
[0085] 27 is the international country dialing code;
[0086] 82 is the mobile operator code;
[0087] 3918711 is the subscriber identifier (telephone) number
which should be well known to the subscriber/client;
[0088] 01 is the institution identifying number (within the mobile
operator's subscriber list within the particular country and
therefore with two digits allowing for up to 100 different
participating institutions); and,
[0089] 5 is the check digit.
[0090] The length of each of these strings can obviously be altered
according to requirements. In particular, the institution
identifying number may be say three digits long to allow for a
greater number thereof.
[0091] Thus, in this case all that a client has to remember afresh
is the two digit bank identifying number and the check digit.
[0092] Clearly, the number of digits allocated to each function
described above can be varied according to particular
circumstances.
[0093] It is also preferred that the programming of both the server
and the SIM cards is such that the additional menu data can be
changed remotely by way of the server as and when required and the
additional PIN, if resident on the SIM, can also be change as
required.
[0094] In it is also preferred that the program of the computerized
server include the facility for specifying additional conditions
under which debiting of a data base record may or may not take
place and the conditions could, for example, be that certain funds
can only be used for certain purposes or can only be transferred to
certain merchants, vendors or types of merchants or vendors or that
funds can only be used at a preset maximum rate. For this purpose a
data base record can have a plurality of sub-records although this
is not necessarily so.
[0095] It will be understood that numerous alternative and
additional rules and requirements can be imposed on a system as
described without departing from the scope hereof. Also, the basic
system can be changed widely, the basic feature being only that the
data base records be maintained separately from an associated
cellular telephone in a general remote computerized server.
* * * * *