WO2003005745A1

WO2003005745A1 - Financial communication system and method

Info

Publication number: WO2003005745A1
Application number: PCT/AU2002/000904
Authority: WO
Inventors: Mark Goulding
Original assignee: Telpay Pty Ltd
Priority date: 2001-07-05
Filing date: 2002-07-04
Publication date: 2003-01-16
Also published as: AUPR621101A0

Abstract

A method of financial communication wherein a credit provider at a central location can approve or reject a financial transaction occurring at a remote location between a merchant and a user having an electronic credit card or the like, said method including: inputting user credit details indirectly to a portable mobile phone or the like at the remote location via portable input means; inputting transaction details directly to the mobile phone at the remote location via the mobile phone keypad, and transmitting the user credit details and the transaction details from the remote location to the credit provider at the central location by the mobile phone.

Description

"FINANCIAL COMMUNICATION SYSTEM AND METHOD"

Technical field

This invention relates to a system and method of financial communication.

The invention has particular but not exclusive application to EFTPOS transactions utilising wireless communication and more particularly to such transactions wherein the communication is by means of a mobile or cellular phone.

Background of Invention

EFTPOS transactions are well known as are their approval or verification.

Summary of Invention The present invention aims to provide an alternative to known financial communication systems and methods, such as EFTPOS transactions.

This invention in one aspect resides broadly in a method of financial communication wherein a credit provider at a central location can approve or reject a financial transaction occurring at a remote location between a merchant and a user having an electronic credit card or the like, said method including:- inputting user credit details indirectly to a portable mobile phone or the like at the remote location via portable input means; inputting transaction details directly to the mobile phone at the remote location via the mobile phone keypad, and transmitting the user credit details and the transaction details from the remote location to the credit provider at the central location by the mobile phone.

As used herein the expression "electronic credit card" is to be given a broad meaning. The expression includes all so-called "credit" cards which carry information in electronic format regarding the user and on the basis of which a cashless transaction can occur, the expression referring to both so-called

"smart" cards having an embedded chip as well as to cards carrying only a magnetic stripe. As used herein the expression "mobile phone" is to be given a broad meaning. The expression includes means for wireless communication such as mobile phones or handsets, cell or cellular phones etc.

As used herein the expression "transaction details" will be understood to optionally include not only an amount to be charged to an account, but also details usually input for each individual transaction such as whether the account is cheque or savings, the user's PIN etc.

It should also be understood that reference to a "credit provider" is to be taken to include reference to a credit checking agency of credit verification agency, such as for example an organisation operating the system of the present invention and which does not itself provide credit, but rather checks the availability of credit for the user by contacting a financial institution such as a bank or credit card company.

In a preferred embodiment the portable input means is a swipe card reader or the like.

As used herein the expression "swipe card reader" is to be given a broad meaning. The expression includes all readers where information is automatically obtained from a card without the requirement to manually enter information by a keypad or the like. It is preferred that the method further includes receiving on the mobile phone at the remote location approval or rejection of the financial transaction from the credit provider at the central location.

It is also preferred that the merchant identification is established by means of the number of the mobile phone. It is also preferred that the swipe card reader or the like is part of a portable unit.

It is also preferred that communication between the swipe card reader or the like and the mobile phone is via an infra red port.

It is also preferred that approval or rejection of the financial transaction is displayed on the mobile phone screen.

It is also preferred that the user credit details are transmitted from the remote location to the credit provider at the central location by the mobile phone, and that the method further includes receiving on the mobile phone at the remote location recognition and/or acceptance of the user credit details from the credit provider at the central location before financial transaction details are transmitted from the remote location to the credit provider at the central location.

It is also preferred that the recognition and/or acceptance of the user credit details is displayed on the mobile phone screen.

In another aspect this invention resides broadly in a system for financial communication wherein a credit provider at a central location can approve or reject a financial transaction occurring at a remote location between a merchant and a user having an electronic credit card or the like, said system including:- portable input means at the remote location for indirectly inputting to the system user credit details via a mobile phone; a portable mobile phone or the like for directly inputting transaction details to the system via the mobile phone key pad, the mobile phone being wirelessly connected to the portable input means for receiving the user credit details therefrom, and data storage means associated with the mobile phone for storing the user credit details and the transaction details in the mobile phone for transmission from the remote location to the credit provider at the central location by the mobile phone. It is preferred that the mobile phone is adapted to receive advice of approval or rejection of the financial transaction from the credit provider at the central location for display thereon.

It is also preferred that the portable input means includes a swipe card reader or the like. It is also preferred that communication between the portable input unit and the mobile phone is via an infra red port.

It is also preferred that the portable input unit includes:- data storage means for temporarily storing credit card data representative of the user credit card details. an infra red port for the transmission of the credit card data to a mobile phone proximate to the infra red port, and sensing means sensitive to the proximity of a mobile phone to the infra red port. It will be understood that the sensing means sensitive to the proximity of a mobile phone may be passive in the sense that the actuating means for this functionality may be in the mobile phone.

It is also preferred that the credit card data is transmitted from the data storage means upon the sensing of a mobile phone proximate the infra red port.

It is also preferred that the mobile phone has a SIM card for controlling the mobile phone to transmit the user credit details and the transaction details to the credit provider and to receive approval or rejection of the financial transaction from the credit provider, the SIM card having data storage means for storing the user credit details and the transaction details.

In another aspect this invention resides broadly in a mobile phone for use in a method of financial communication as defined above, the mobile phone having a SIM card for controlling the mobile phone to transmit the user credit details and the transaction details to the credit provider and to receive approval or rejection of the financial transaction from the credit provider, the SIM card having data storage means for storing the user credit details and the transaction details.

In another aspect this invention resides broadly in a portable input unit for use in a method of financial communication as defined above, the portable input unit including:- a swipe card reader or the like for reading user credit card details; data storage means for temporarily storing credit card data representative of the user credit card details; an infra red port for the transmission of the credit card data to a mobile phone proximate to the infra red port, and sensing means sensitive to the proximity of a mobile phone to the infra red port.

It is preferred that the credit card data is transmitted from the data storage means upon the sensing of a mobile phone proximate the infra red port. Description of Drawings

In order that this invention may be more easily understood and put into practical effect, reference will now be made to the accompanying drawings which illustrate a preferred embodiment of the invention, wherein:- FIG 1 is a schematic block diagram of the system for financial communication in accordance with the present invention;

FIG 2 is a schematic outline of the method of financial communication in accordance with the present invention;

FIGS 3A and 3B are flowcharts illustrating in more detail the method of financial communication in accordance with the present invention;

FIG 4 is a perspective view of a portable input unit in accordance with the present invention;

FIG 5 is a schematic block diagram of the portable input unit illustrated in FIG 4, and FIG 6 is a schematic block diagram of the operational aspects of a mobile phone when used in accordance with the present invention.

Description of Preferred Embodiment of Invention As can be seen in FIG 1, the system of the present invention is for financial communication wherein a credit provider 10 at a central location 11 approves or rejects a financial transaction 12 occurring at a remote location 13 between a merchant 14 and a user 15 having an electronic credit card 16 or the like. The system has portable input means 17 at the remote location for inputting to the system user credit details from card 16 and a portable mobile phone 18 or the like for inputting details of transaction 12 to the system. Mobile phone 18 is wirelessly connected to portable input means 17 for receiving the user credit details therefrom. Mobile phone 18 also has data storage means 19 associated therewith for storing the user credit details and the transaction details for transmission from remote location 13 to the credit provider 10 at central location 11. Mobile phone 18 receives advice of approval or rejection of the financial transaction from the credit provider at the central location for display at the remote location. As seen in broad outline in the schematic of FIG 2, the swipe card reader collects credit card information and transmits to mobile handset. Credit card information and value details is collected by the mobile handset and transmitted via a GSM network to a central processing center. The central database verifies customer details and passes information to the banking interface. The bank then processes the transaction and responds to the processing center which updates the database and sends a response to the user/merchant handset via the GSM network. The customer and/or merchant receives response details on the screen of the handset. Turning now in more detail to the flowchart illustrated in FIGS 3A and

3B. The merchant selects the central processor from the mobile menu. (For the purposes of illustration, the present applicant Teipay is referred to in the preferred embodiment as the central processor). The Teipay application opens infrared port on the mobile and the merchant swipes the customer's credit card through the card read in the portable input unit.

The portable input unit transmits card information to the mobile via the infrared port. Teipay application verifies information and checks if it is in the correct format. If NO, the merchant checks card and reswipes. If YES, the merchant inputs the value to be transacted via the mobile key pad. The application requests the merchant to confirm value of the transactions by asking if the amount displayed is the correct amount. If NO, then the merchant re-enters the amount. If YES, the application creates a SMS/data call and sends to Telpay's processing centre.

The Teipay database verifies that the inbound call is from an established customer via the mobile number and asks if this is a valid customer. If NO, the transaction is terminated and an SMS is sent to the handset with a rejection. If YES, the database conducts verification test and formats information to transmit to the banking network via land line. A response from the bank is received by the database and the merchant's files are updated. An SMS/data call is generated and sent to the merchant's mobile with confirmation details supplied by the bank. Finally the merchant informs the customer of the bank response. It will thus be appreciated that in the method of the present invention, financial communication is effected wherein a credit provider 10 at a central location 11 approves or rejects a financial transaction 12 occurring at a remote location 13 between a merchant 14 and a user 15 having an electronic credit card 16 or the like. In the method user credit details are input to a portable mobile phone 18 or the like at the remote location 13 via the portable input unit 17, and transaction details are also input to the mobile phone at the remote location directly via the mobile phone key pad. The user credit details and the transaction details are transmitted from the remote location 13 to the credit provider 10 at the central location 11 by the mobile phone 18, and approval or rejection of the financial transaction is transmitted to the mobile phone at the remote location from the credit provider at the central location.

Turning now to FIGS 4, 5 and 6, the former illustrates a portable input unit 20 having a card swipe 21, an infra-red port 22 and showing indicators 23 for indicating in normal manner whether the unit is switched on, whether a card when swiped has been read correctly , and whether data has been transferred and the temporary data store 25 has been emptied once the proximity of a mobile phone has been sensed.

The schematic block diagram in FIG 5 illustrates these features of the portable card unit 20 for reading a credit card 24 and temporarily storing credit card information in data store 25, sensing the proximity of a mobile phone by means of a sensing function 26 whereupon credit card data temporarily stored in data store 25 is transferred to the mobile phone via the infra-red port 22.

FIG 6 is a schematic block diagram of a mobile phone 30 for use in accordance with the present invention, wherein credit card information is transferred via infra/red port 31 from the portable input unit 20 of FIGS 4 and 5 for storage in a data store 35 on SIM card 34 together with transaction information which is stored in data store 36 on the SIM card after input via the mobile phone keypad 32. The data content in data stores 35 and 36, that is the credit card information and the transaction information, is transmitted by the mobile phone transmitter 37 to a central credit facility as subsequently described. Thus in operation in accordance with a preferred embodiment of the present invention, the process of a preferred embodiment of the present invention functions in broad detail as follows:-

Merchant turns on the infra/red port on the mobile. Merchant turns on the portable input unit

Merchant swipes the card.

The portable input unit collects the credit card number and expiry date from the card and stores the information in a memory until the infra/red port on the mobile phone is within range of the infra/red port on the portable input unit, which range is typically likely to be 30cm within a 30 degree angle.

When the mobile is in range the portable input unit transmits the credit card information to the mobile phone. On receiving confirmation from the mobile phone that the credit card information has been transmitted, the portable input unit clears its memory so that credit card details are not stored, and finally powers off the unit.

Merchant then inputs the transaction value on the keypad of the mobile. SIM on the mobile phone then takes both the credit card information and the transaction details, encrypts it, and send it as an SMS or possibly a data transmission to the credit provider at the central location.

Further details of a preferred embodiment of the invention are now provided under a number of functional/operating headings as follows:-

Card swipe

Credit card or loyalty card information is collected using a slim line card swipe contained within the portable input unit. The protocol for this information is well established both for use in swipe readers and microprocessors. A microprocessor sends the information to the mobile phone via an infrared transmitter also contained in the portable input unit. The whole unit is powered by a battery again contained within the portable input unit. Mobile phone processing

The information is received by the mobile phone via its infrared port and held on the SIM card. Further information is gathered from the user via the keypad on the phone using a menu structure. Validation of the information is optionally performed by the SIM card. The application then initiates a data call or SMS to the Teipay data centre and sends the data. The data centre responds and the information is then displayed on the screen of the phone for the customer's records.

If the merchant does not have a phone with an l/R port or is having difficulty with the swipe card mechanism the SIM card will still be able to process the information by taking the card details via the key pad of the phone.

IVR/SMS Modem The IVR or SMS modem is set up to receive the data from the mobile phone and pass it to the database. It also processes incoming customer service calls to make changes to the customers' profile in the database. In the event of the swipe mechanism not functioning the IVR will be set to process transactions by prompting the user to input the information via the keypad only.

Database

The database has a number of functions including :-

Transaction processing. The database receives the information from the IVR and performs a number of validation checks to ensure the call has come from an authorised phone, that the type of transaction is authorised for the account etc. It then attaches the merchant number in the case of credit card transactions and sends the information to the bank interface.

Billing. The database maintains a record of all transactions processed for billing at the end of each month

Customer service. The data base is used to send to customers tailored transaction summaries for their accounting records. It is also be used for the input and maintenance of customer profiles Bank interface

The information for credit card transactions is transmitted to the banking network via a secure lease line using bank approved equipment. The same equipment is used to receive the information back with pre set coding. This is passed back through the system to update the database and to inform the customer of the outcome of the transaction.

It will be appreciated that the system and method of the present invention has a number of advantages over known systems and methods of financial communication.

Most EFTPOS facilities are connected to the banking network by a physical land line, whereas the present invention utilises wireless technology to transmit the information thereby enabling mobile credit facilities to be used by service providers at remote locations such as in a user's home.

The present invention improves upon currently available mobile EFTPOS facilities with GSM modems attached which are unable to be used for other purposes such as voice/data calls , SMS etc and other mobile phone functions. Moreover the present invention is lightweight and compact, it offers additional application to nearly all mobile phones having an l/R port, the portable input unit can be used by more than one merchant, and the mobility of the system is only limited by the coverage of the GSM network. Communication from the portable input unit to the mobile phone by the infrared port is advantageous because any mobile phone with an infra-red port can be used with the portable input unit, infra-red communication following a generally accepted standard. Because serial ports on mobile phones differ from brand of phone to brand of phone and sometimes within brands, there are advantages in using infra-red because of the facilitation of communication generically with most mobile phones. It will be appreciated that the mobile phone interface is used to input data and also display data to the user which contrasts with mobile payment devices which do not utilise the keypad and screen of the mobile phone, but rather a dedicated key pad and screen or facilities on the credit facility per se. In such an arrangement the mobile telephone is utilised merely as a device to communicate with the central checking authority. In a preferred embodiment of the present invention by way of contrast, the mobile phone is used to input and display, which means that all that is required for the merchant to be operative is the swipe-card-like portable unit. This is a less expensive option. It will also be appreciated that the use of SMS to transmit transaction information is innovative and has advantages.

Because the mobile telephone is used for the majority of the transaction processing, it is possible to provide an inexpensive portable input unit which essentially only acts as a card-swipe to transmit the information from the card to the mobile telephone. The significant controls or so-called "smarts" are incorporated into software in the mobile telephone.

Other advantages of the various preferred embodiments of the present invention over other EFTPOS machines and systems include the following:- Cost is significantly lower as much of the hardware is on the existing mobile

Size is a maximum of 100cm long which is truly pocket size Weight is typically 60gm or less which is considerably less than the 500gm for other products incorporating aspects not required with the present invention

Compatibility with a range of mobile phones is significantly enhanced beyond dedicated models having limited mobile compatibility.

Adaptability is enhanced in that because the portable input unit and the mobile phone do not need to be connected to perform the transfer, it is immaterial where the infra/red port is located on the mobile phone.

It will of course be realised that whilst the above has been given by way of an illustrative example of this invention, all such and other modifications and variations hereto, as would be apparent to persons skilled in the art, are deemed to fall within the broad scope and ambit of this invention as is herein set forth.

Claims

Claims:-

1. A method of financial communication wherein a credit provider at a central location can approve or reject a financial transaction occurring at a remote location between a merchant and a user having an electronic credit card or the like, said method including:- inputting user credit details indirectly to a portable mobile phone or the like at the remote location via portable input means; inputting transaction details directly to the mobile phone at the remote location via the mobile phone keypad, and transmitting the user credit details and the transaction details from the remote location to the credit provider at the central location by the mobile phone.

2. A method of financial communication as claimed in claim 1 , wherein the portable input means is a swipe card reader or the like.

3. A method of financial communication as claimed in claim 2, the method further including:- receiving on the mobile phone at the remote location approval or rejection of the financial transaction from the credit provider at the central location.

4. A method of financial communication as claimed in claim 2, wherein merchant identification is established by means of the number of the mobile phone.

5. A method of financial communication as claimed in claim 2, wherein the swipe card reader or the like is part of a portable unit.

6. A method of financial communication as claimed in claim 5, wherein communication between the swipe card reader or the like and the mobile phone is via an infra red port.

7. A method of financial communication as claimed in claim 2, wherein approval or rejection of the financial transaction is displayed on the mobile phone screen.

8. A method of financial communication as claimed in claim 2, wherein the user credit details are transmitted from the remote location to the credit provider at the central location by the mobile phone; the method further including:- receiving on the mobile phone at the remote location recognition and/or acceptance of the user credit details from the credit provider at the central location before financial transaction details are transmitted from the remote location to the credit provider at the central location.

9. A method of financial communication as claimed in claim 8, wherein the recognition and/or acceptance of the user credit details is displayed on the mobile phone screen.

10. A system for financial communication wherein a credit provider at a central location can approve or reject a financial transaction occurring at a remote location between a merchant and a user having an electronic credit card or the like, said system including:- portable input means at the remote location for indirectly inputting to the system user credit details via a mobile phone; a portable mobile phone or the like for directly inputting transaction details to the system via the mobile phone key pad, the mobile phone being wirelessly connected to the portable input means for receiving the user credit details therefrom, and data storage means associated with the mobile phone for storing the user credit details and the transaction details in the mobile phone for transmission from the remote location to the credit provider at the central location by the mobile phone;

11. A system for financial communication as claimed in claim 10, wherein the mobile phone is adapted to receive advice of approval or rejection of the financial transaction from the credit provider at the central location for display thereon.

12. A system for financial communication as claimed in claim 11 , wherein the portable input means includes a swipe card reader or the like.

13. A system for financial communication as claimed in claim 11 , wherein the communication between the portable input unit and the mobile phone is via an infra red port.

14. A system for financial communication as claimed in claim 13, wherein the portable input unit includes:- data storage means for temporarily storing credit card data representative of the user credit card details. an infra red port for the transmission of the credit card data to a mobile phone proximate to the infra red port, and sensing means sensitive to the proximity of a mobile phone to the infra red port.

15. A system for financial communication as claimed in claim 14, wherein the credit card data is transmitted from the data storage means upon the sensing of a mobile phone proximate the infra red port.

16. A system for financial communication as claimed in claim 11 , wherein the mobile phone has a SIM card for controlling the mobile phone to transmit the user credit details and the transaction details to the credit provider and to receive approval or rejection of the financial transaction from the credit provider, the SIM card having data storage means for storing the user credit details and the transaction details.

17. A mobile phone for use in a method of financial communication as claimed in claim 1, the mobile phone having a SIM card for controlling the mobile phone to transmit the user credit details and the transaction details to the credit provider and to receive approval or rejection of the financial transaction from the credit provider, the SIM card having data storage means for storing the user credit details and the transaction details.

18. A portable input unit for use in a method of financial communication as claimed in claim 1, the portable input unit including:- a swipe card reader or the like for reading user credit card details; data storage means for temporarily storing credit card data representative of the user credit card details; an infra red port for the transmission of the credit card data to a mobile phone proximate to the infra red port, and sensing means sensitive to the proximity of a mobile phone to the infra red port.

19. A portable input unit as claimed in claim 18, wherein the credit card data is transmitted from the data storage means upon the sensing of a mobile phone proximate the infra red port.