AU6878401A - A method of payment for a purchase - Google Patents

Description

AUSTRALIA

Patents Act 1990 COMPLETE SPECIFICATION STANDARD PATENT Applicant: TELEMANAGEMENT AUSTRALIA 055 282 484) Invention Title: "A METHOD OF PAYMENT FOR A PURCHASE" The following statement is a full description of this invention, including the best method of performing it known to me/us: -2- A METHOD OF PAYMENT FOR A PURCHASE The present invention relates to method of payment for a purchase of a good or service using a telephone.

EFTPOS machines are well known for use in conducting an electronic fund transfer to pay for the purchase of a product or service using a credit card or a debit card.

However, an EFTPOS machine requires either an extra dedicated telephone line or the dual purpose use of a telephone line. The fact that the EFTPOS machine must be physically located at the merchant's premises can also be a problem. At the other end of the EFTPOS machine is an administrating organisation, normally a financial institution, which receives data from the EFTPOS machine and conducts the "back end" of the electronic fund transfer transaction, including the exchange of funds. Where the card used is from a different financial institution, interaction with the other financial institution must also be provided.

The present invention seeks to provide a new method of payment for an electronic purchase.

According to the present invention there is provided a method of payment for a purchase including the steps of: telephoning a call centre using a telephone; entering a merchant identification using a keypad of the telephone; 25 the call centre receiving the merchant identification entered on the telephone keypad; entering a card number using the telephone keypad; S the call centre receiving the card number entered on the key pad; entering a payment amount using the telephone keypad; the call centre receiving the payment amount entered on the keypad; submitting an electronic fund transfer request to a financial institution, the electronic fund transfer request including the received card number, the received -3payment amount and another merchant identification; and if the request is approved by the financial institution, the financial institution providing an electronic fund transfer receipt number to the call centre.

Preferably, the information entered on the telephone keypad produces a tone corresponding to each key pressed, each tone being relayed to the call centre over a telephone line, each tone received by the call centre being interpreting it to recognise the key pressed on the telephone key pad.

Preferably, the method includes the additional steps of: entering a PIN using the telephone keypad for verifying the merchant identification; and the call centre receiving the PIN entered on the keypad.

Preferably, the call centre verifies the identification of the merchant.

In one embodiment, the merchant identification received is the same as the other merchant identification sent to the financial institution. In an alternative embodiment, the merchant identification is a first identification used by the call centre to identify the 20 merchant and the other merchant identification sent to the financial institution is a second identification used by the financial institution to identify the merchant, the call eeo centre using a database to look up the second identification from the first identification.

Preferably, the method includes the additional steps of: entering an expiry date of the card using the telephone keypad; the call centre receiving the expiry date entered on the keypad; and ~the electronic fund transfer request to the financial institution including the expiry date ofthe card.

Preferably, the card is a credit card. Alternatively, the card may be a debit card.

Preferably, the call centre relays the receipt number to the telephone over the telephone -4line.

Preferably, if the request is not approved a declined message is relayed to the telephone over the telephone line.

Preferably, a plurality of transactions using the above method may be substantially simultaneously received by the call centre with a corresponding request submitted to a respective financial institution. Preferably, a plurality of merchants are each provided with a unique merchant identification so as to participate in the present method.

Preferably, the call centre records each payment request and the details associated with it.

In a first embodiment the financial institution transfers the payment amount to the call centre, and the call centre transfers the payment amount to the corresponding merchant.

Alternatively, the financial institution transfers the payment amount directly to the merchant. In another alternative, the financial institution transfers the payment amount to a master merchant, the call centre transfers a list of transactions relating to predetermined merchants to the master merchant, and the master merchant transfers the 20 payment amount to the respective merchant.

According to another aspect of the present invention, there is provided a system for the purchase of product or service comprising at least: a telephone for use by a merchant; a call centre means for receiving a telephone call from the telephone of the merchant; ~means for receiving a merchant identification entered using a keypad of a telephone; means for receiving a card number entered using the telephone keypads; means for receiving a payment amount entered using the telephone keypad; means for submitting an electronic fund transfer request to a financial institution, the electronic fund transfer request including the received card number, the received payment amount and another merchant identification; and means for receiving an electronic fund transfer receipt number from the financial institution, if the transaction request is approved.

According to yet another aspect of the present invention, there is provided a call centre for the purchase of product or service comprising at least: means for receiving a telephone call from a telephone of a merchant; means for receiving a merchant identification entered using a keypad of a telephone; means for receiving a card number entered using the telephone keypads; means for receiving a payment amount entered using the telephone keypad; means for submitting an electronic fund transfer request to a financial institution, the electronic fund transfer request including the received card number, the received payment amount and another merchant identification; and means for receiving an electronic fund transfer receipt number from the financial institution, if the transaction request is approved.

o a.

According to a further aspect of the present invention there is provided a computerreadable medium for storing a computer program, said computer program for 20 controlling a computer to operate according to a process including the following steps: receiving a telephone call from a telephone; receiving a merchant identification entered into a keypad of the telephone; receiving a card number entered into the telephone keypad; receiving the payment amount entered into the telephone keypad; 25 submitting an electronic fund transfer request to a financial institution, the electronic fund transfer request including the received card number, a payment amount and another merchant identification; and receiving an electronic fund transfer receipt number from the financial institution, if the request is approved.

In order to provide a better understanding of the present invention, a preferred embodiment will now be described in detail, by way of example only, with reference to -6the accompanying drawings, in which: Figure 1 is a relationship diagram between a merchant, a master merchant and an administrating call centre; Figure 2 is a schematic representation of a method in accordance with the present invention; Figure 3 is a schematic representation of a preferred form of payment method in accordance with the present invention; and Figure 4 is a schematic representation of the production of transaction statements in accordance with the present invention.

Referring to Figure 1, there is provided an administrator 10 which includes a computer controlled call centre 12. The administrator 10 administers the payment system in accordance with the present invention. The administrator 10 is able to engage. in a relationship with one or more master merchants 14. Each master merchant 14 is able to form a relationship with one or more prospective merchants 16. A master merchant 14 and a prospective merchant 16 may negotiate and reach an agreement over administration costs which are provided at a wholesale rate from the administrator 10 to the master merchant 14 and then at a retail rate from the master merchant 14 to each prospective merchant 16. When a merchant "signs up", their details of are provided from the master merchant 14 to the administrator 10, such as by an e-mail 18. The details are then stored in a database 20. The details include, for example, the name and address of the merchant, their bank account details, etc. Each merchant will be provided with a merchant identification number and a PIN for verifying the identity of the merchant.

Referring to Figure 2, a customer 22 wishing the make a purchase of a product or a service from a merchant 16 agrees on the sale at 40 and opts to pay by a card, such as a credit card, at 42. The merchant telephones the administrator call centre 12 at 44. The merchant receives computer controlled verbal instructions on the procedure for making a card payment. The computer is configured to provide an interactive voice response to receive input. The merchant is instructed to enter their merchant identification at 46.

The merchant uses the keypad of the telephone and enters in a number identifying the -7merchant. A unique tone is generated by the telephone for each key depressed. This is a well known feature of tone dial telephones. The tones pass down the telephone line to the call centre where a computer system receives each of the tones and recognises the corresponding key depressed by its tone. The computer recognises each of the digits of the merchant identification number. The call centre then checks, at 48, whether the merchant identification number is valid. If the merchant identification number is not valid the number is rejected at 50 and the call centre hangs up. Alternatively, a standard amount of, say, three tries will be allowed before the call centre hangs up.

If the merchant identification is valid, the call centre requests that the merchant enter their PIN. Again the merchant uses the keypad to enter the PIN at 52 and using the same tone recognition technique the call centre computer receives the PIN entered. The computer then checks at 54 whether the PIN is valid. If the PIN is not valid the call is rejected and hangs up at 50. Again a standard three tries may be allowed.

Once the merchant has been identified and validated the call centre provides a prompt to enter the card number at 56, again using the same tone recognition technique. The call centre receives the card number where a MODULUS 10 calculation of the card number is performed at 58 to determine whether the card number entered is a valid card number, 20 which is checked at 60. If the card number is not valid two retries are allowed as indicated by 68. If the two retries are not successful then the call is rejected and the call centre hangs up.

If the card number is valid, a prompt is then provided to enter the expiry date of the 25 card. Again, using the same tone recognition technique, the card expiry date is entered on the telephone keypad and recognised by the call card centre at 64. A check is performed at 66 that the expiry date is valid, again allowing two retries as indicated by 68.

If the expiry date is valid a request is then provided to enter the purchase amount. Using the same tone recognition technique the amount is entered and received by the call card centre at 70. The amount entered is replayed by the call centre down the telephone lines -8using text-to-speech software, and received by the telephone handset. A request to confirm the amount is received as indicated by 74. If the amount is incorrect this may be re-entered with two retries at 72.

If the amount entered is correct the call centre submits an electronic fund transfer request to a financial institution, such as a bank. The electronic fund transfer request includes a merchant identification, the card number and expiry date and the purchase amount. The merchant identification may be the same as the merchant identification entered or otherwise may be another identification such as an account number that is looked up on a database by the computer from the entered merchant identification. In this case, because the merchant is part of or is registered through a master merchant 14, the master merchant's account number is provided to the financial institution as the result of the query to the database, this is indicated by 76.

The financial institution checks that the transaction can proceed at 78, if the transaction is not approved a message is forwarded back to the call centre which then inturn provides a message over the telephone line advising that the transaction has been denied at 80. A log of the call and the details of the call are kept in a call centre database at 82.

20 If the transaction is successful a receipt number is provided by the financial institution to the call centre which is then read over the telephone line using text-to-speech software at 84. The receipt number is provided to the client at 86. A log of details are retained at 88 and stored in the database at 82.

Referring to Figure 3, to pass on the payment received by the master merchant for the purchase, a report based on the log in the database is e-mailed from the administrator to each master merchant 14. The master merchant 14 runs a data extraction program to extract the data in the e-mailed report at 90. The data is compared with a report provided by the financial institution at 92. A comparison is conducted at 94 and if this does not check out then reconciliation is conducted at 96. If the comparison is correct, the master merchant 14 prepares at 98 a schedule listing the transfer of the appropriate payment amounts from the master merchant 14 to each of the merchants 16 signed up.

-9- Transfer fees may reduce these amounts. The schedule is forwarded to the financial institution 100 for payment from the master merchant 14 to each of the merchant's bank accounts. Generally, this process is conducted on a daily basis so that at the end of each day the merchant 16 receives the payment for the purchase of each of the products or services purchased.

Referring to Figure 4, on a monthly basis a statement of transactions is prepared for each of the merchants. This may include a listing of a goods and services tax payable.

This is provided by the master merchant 14 to each of the participating merchants 16.

The master merchant 14 may access the call centre database 20 via, for example, the Internet, to obtain information for producing the statement. This may include the number of transactions for each merchant affiliated with the master merchant 14, a daily total of transactions and the tax payable in relation to the transactions.

It will clear to the skilled addressee that the present invention has at least the following advantages: 1. The only equipment that a merchant requires in order to conduct the process is a telephone; 2. The merchant need not keep records of each of the financial transactions as either 20 the administrator and/or the master merchant prepare them, these are provided to each merchant say on a monthly basis. These can then be reconciled with cash register receipts; and 3. The customer need not register to use this payment system once they have a credit card or a debit card, unlike the bank facilitated payment system used under the trade mark Bpay.

Modifications and variations may be made to the present invention without departing from the basic inventive concept. Such modifications can include the facility to use a debit card rather than a credit card; the credit or debit card may be provided with a card PIN that is also entered over the telephone and passed onto the bank to verify the identity of the card owner.

Such modifications and variations are intended to fall within the scope of the present invention, the nature of which is to be determined from the foregoing description and appended claims.

.0.

Claims (16)

1. A method of payment for a purchase including the steps of: telephoning a call centre using a telephone; entering a merchant identification using a keypad of the telephone; the call centre receiving the merchant identification entered on the telephone keypad; entering a card number using the telephone keypad; the call centre receiving the card number entered on the key pad; entering a payment amount using the telephone keypad; the call centre receiving the payment amount entered on the keypad; submitting an electronic fund transfer request to a financial institution, the electronic fund transfer request including the received card number, the received payment amount and another merchant identification; and if the request is approved by the financial institution, the financial institution providing an electronic fund transfer receipt number to the call centre.

2. A method according to claim 1, wherein the information entered on the telephone keypad produces a tone corresponding to each key pressed, each tone being relayed to the call centre over a telephone line, each tone received by the call centre being interpreting it to recognise the key pressed on the telephone key pad.

3. A method according to claim 1 or 2, wherein the method includes the additional steps of: 25 entering a PIN using the telephone keypad for verifying the merchant identification; and the call centre receiving the PIN entered on the keypad.

4. A method according to claim 3, wherein the call centre verifies the identification of the merchant. A method according to claim 4, wherein the merchant identification received by -12- the call centre is sent to the financial institution.

6. A method according to claim 4, wherein a first identification is used by the call centre to identify the merchant to the call centre and a second merchant identification is sent to the financial institution to identify the merchant to the financial institution, the call centre using a database to look up the second identification from the first identification.

7. A method according to any one of claims 1 to 6, wherein the method includes the additional steps of: entering an expiry date of the card using the telephone keypad; the call centre receiving the expiry date entered on the keypad; and the electronic fund transfer request to the financial institution including the expiry date of the card.

8. A method according to any one of claims 1 to 7, wherein the call centre relays the receipt number to the telephone over the telephone line. S9. A method according to any one of claims 1 to 8, wherein if the request is not approved a declined message is relayed to the telephone over the telephone line. A method according to any one of claims 1 to 9, wherein a plurality of transactions using the above method may be substantially simultaneously received by the call centre with a corresponding request submitted to a respective financial institution.

11. A method according to claim 10, wherein a plurality of merchants are each provided with a unique merchant identification so as to participate in the present method.

12. A method according to any one of claims 1 to 11, wherein the call centre records each payment request and the details associated with it. -13-

13. A method according to any one of claims 1 to 12, wherein the financial institution transfers the payment amount to the call centre, and the call centre transfers the payment amount to the corresponding merchant.

14. A method according to any one of claims 1 to 12, wherein the financial institution transfers the payment amount directly to the merchant. A method according to any one of claims 1 to 12, wherein the financial institution transfers the payment amount to a master merchant, the call centre transfers a list of transactions relating to predetermined merchants to the master merchant, and the master merchant transfers the payment amount to the respective merchant.

16. A call centre for the purchase of product or service comprising at least: means for receiving a telephone call from a telephone of a merchant; means for receiving a merchant identification entered using a keypad of a telephone; means for receiving a card number entered using the telephone keypads; means for receiving a payment amount entered using the telephone keypad; 20 means for submitting an electronic fund transfer request to a financial institution, the electronic fund transfer request including the received card number, the received payment amount and another merchant identification; and means for receiving an electronic fund transfer receipt number from the financial institution, if the transaction request is approved.

17. A computer-readable medium for storing a computer program, said computer program for controlling a computer to operate according to a process including the following steps: receiving a telephone call from a telephone; receiving a merchant identification entered into a keypad of the telephone; receiving a card number entered into the telephone keypad; receiving the payment amount entered into the telephone keypad; -14- submitting an electronic fund transfer request to a financial institution, the electronic fund transfer request including the received card number, a payment amount and another merchant identification; and receiving an electronic fund transfer receipt number from the financial institution, if the request is approved.

18. A call centre for the purchase of product or service comprising at least: a telephone for use by a merchant; a call centre means for receiving a telephone call from the telephone of the merchant; means for receiving a merchant identification entered using a keypad of a telephone; means for receiving a card number entered using the telephone keypads; means for receiving a payment amount entered using the telephone keypad; means for submitting an electronic fund transfer request to a financial institution, the electronic fund transfer request including the received card number, the received payment amount and another merchant identification; and means for receiving an electronic fund transfer receipt number from the financial institution, if the transaction request is approved.

19. A call centre substantially as hereinbefore described with reference to the S" accompanying drawings.

20. A method of payment for a purchase substantially as hereinbefore described with 25 reference to the accompanying drawings. TELEMANAGEMENT AUSTRALIA By its Patent Attorneys GRIFFITH HACK Fellows of the Institute of Patent and Trade Mark Attorneys of Australia