GB2447709A

GB2447709A - Payment between a user and a merchant using a mobile communications device

Info

Publication number: GB2447709A
Application number: GB0705662A
Authority: GB
Inventors: Eddie Parker
Original assignee: Individual
Current assignee: Individual
Priority date: 2007-03-23
Filing date: 2007-03-23
Publication date: 2008-09-24
Also published as: GB0705662D0

Abstract

A method of processing a payment between a user 1 and a merchant 2, comprising the steps of: indicating, by the user 1, desired goods or services; providing, by the merchant 2, sale information in a form which may be captured by, or transferred to, a mobile device, the sale information including at least the cost of the desired goods and/or services, and identification of the merchant 2 or an account 7 of the merchant; capturing or otherwise obtaining, by a mobile device of the user, the sale information; sending, by the user 1, a request to a service provider 8 of the user 1 from the mobile device, the request including at least the sale information, instructing the service provider to transfer funds actively to the merchant to cover the cost of the goods and/or services; receiving, by the merchant, confirmation that the funds have been transferred to the account of the merchant; and providing or releasing, by the merchant, the desired goods and/or services. The payment system may be used to pay for petrol at a petrol station pump or to obtain money from an ATM.

Description

Title: "A Payment Processing Method" DescriDtion of Invention THIS

INVENTION relates to a payment processing method, and in particular concerns a method of making an authorising payment swiftly and easily, and in a manner which is likely to reduce the possibility of fraud.

Fraudulent transactions from the bank accounts of customers paying for goods and/or services are very common, and represent a significant drain on the economies of many countries. Conventional methods of payment include many security measures, but fraudulent transactions are still rife and improved security in this regard is always desirable.

It is therefore an object of the present invention to seek to provide a payment processing method which ameliorates some or all of the problems associated with conventional payment processing methods.

Accordingly, one aspect of the present invention provides a method of processing a payment between a user and a merchant, comprising the steps of: indicating, by the user, desired goods or services; providing, by the merchant, sale information in a form which may be captured by, or transferred to, a mobile device, the sale information including at least the cost of the desired goods and/or services, and identification of the merchant or an account of the merchant; capturing or otherwise obtaining, by a mobile device of the user, the sale information; sending, by the user, a request to a service provider of the user from the mobile device, the request including at least the sale information, instructing the service provider to transfer funds actively to the merchant to cover the cost of the goods and/or services; receiving, by the merchant, confirmation that the funds have been transferred to the account of the merchant; and providing or releasing, by the merchant, the desired goods and/or services.

Another aspect of the present invention provides a method of authorising payment, comprising the steps of: indicating desired goods and/or services provided by a merchant; capturing or receiving by a mobile device sate information provided by the merchant, the sale information including at least a cost of the desired goods and/or services and identification of the merchant or a bank account of the merchant; and transmitting from the mobile device a request to a service provider, the request including at least the sale information and a request to transfer funds actively to the merchant to cover the cost of the desired goods and/or services.

A further aspect of the present invention provides a method of processing payment by a merchant, comprising the steps of: receiving an indication from a user of desired goods and/or services; providing sale information to the user in a form which may be captured, or transferred to, a mobile device, the sale information including at least the cost of the desired goods and/or services and identification of the merchant or a bank account of the merchant; receiving confirmation of the transfer of funds to the merchant to cover the cost of the desired goods and/or services; and providing or releasing the desired goods and/or services.

Advantageously, the sale information is provided on a screen.

Preferably, the sale information comprises identification of a bank account of the merchant, and good and/or services are provided or released upon receiving confirmation that funds have been transferred to the identified account.

Conveniently, the sale information comprises identification of the merchant, the identity of the merchant is linked to a bank account of the merchant in a database; and good and/or services are provided or released upon receiving confirmation that funds have been transferred to the identified account.

Advantageously, the sale information is captured by an image capture device of the mobile device.

Preferably, the desired goods and/or services comprise merchandise at a retail outlet.

Conveniently, the desired goods and/or services comprise currency dispensed from an ATM or similar device.

Advantageously, the sale information further comprises information identifying the merchant and/or the location of the merchant.

Another aspect of the present invention provides a computer program comprising computer program code adapted to perform all of the steps of any preceding claim when said program is run on a computer.

A further aspect of the present invention provides a computer program according to the above, embodied on a computer-readable medium.

Another aspect of the present invention provides a point of sale arrangement comprising: a processor operable to receive an indication of the cost of goods and/or services desired by a user; a transmission apparatus operable to provide sale information in a form which may be captured, or transferred to, a mobHe device, the sale information including at least the cost of the desired goods and/or services and identification of a merchant or a bank account of the merchant; a communication arrangement for receiving an indication that funds to cover the cost of the desired goods and/or services have been transferred to the merchant; and a confirmation arrangement to provide an indication that the funds have been received and that the goods and/or services may be provided or released.

In order that the present invention may be readily understood, embodiments thereof will now be described, by way of example, with reference to the accompanying drawings, in which: Figure 1 is a block diagram representing the carrying out of a method embodying the present invention; Figures 2 and 3 are representations of screens that may be displayed to a user when using a method of Figure 1; and Figure 4 is a schematic view of a point of sale arrangement embodying the present invention.

With reference firstly to figure 1, an example of payment using a method embodying the present invention will now be described. The example of payment for fuel at a petrol station will be used, although the skilled reader will readily understand that the method may be extended to payment for any other type of goods or services.

Firstly, the user 1 approaches a pump which dispenses the appropriate type of fuel, and uses the pump in a conventional manner to dispense fuel into a vehicle or into a container. Preferably, the user 1 indicates at an early stage of the transaction that he or she wishes to pay using a method embodying the invention, and a specific button or manual menu option may be provided at the pump to allow the user 1 to make this indication. The user I may indicate that the method is being used either before or after the fuel is dispensed.

Once the user 1 has finished dispensing fuel, the merchant 2, which in this case is the operator of the petrol station, will be able to indicate to the user 1 a price for the fuel that has been dispensed, and for any other goods or services that have also been purchased (for instance, newspapers and/or food from a shop of the petrol station).

The merchant 2 preferably has a number of electronic screens which are operable to display at least textual information, and the screens may take any appropriate form, for instance cathode ray, LCD or plasma screens.

Preferably, one screen is provided for each pump at the petrol station, and one or more further screens may be provided for use by customers who are purchasing goods or services other than fuel. The screens may be placed either inside or outside, and indeed it is expected that at least some screens will need to be outside for payments made late at night when customers cannot enter the main premises of the petrol station.

A screen is selected by the merchant 2 on which to display information to the user 1. The screen may be manually selected by an individual working for the merchant 2, or may be automatically selected from an available screen, or in the case of a petrol station each screen may be numbered and may correspond to the number of an individual pump.

The user I approaches the appropriate screen. Displayed on the screen is a monetary amount corresponding to the cost of the goods and/or services.

Also displayed on the screen is the identity of a bank account held by, or associated with, the merchant 2 and also preferably the identity of the merchant 2 itself.

Referring to figure 2, an example of information that may be displayed on the screen is shown, and this includes merchant identification information 3, cost information 4 and account information 5. Information 6 identifying the merchant's bank 7 may also be presented.

The user 1 is equipped with a mobile device (not shown), which is preferably equipped with an image capture device such as a CCD camera. Preferably, the mobile device is a mobile telephone, although other devices such as PDA or separate dedicated devices are envisaged.

The user 1 uses the image capture device of the mobile device to capture an image of the screen, the image including the merchant identification information 3, the account information 5 and the cost information 4.

In preferred embodiments, the mobile device is provided with optical character recognition (OCR) software, allowing at least some of the information presented on the screen to be converted into editable information in the memory of the mobile device, rather than storing the information displayed on the screen in "picture" form. In these embodiments, all or parts of information can be presented to the user 1 on a screen of the mobile device for approval, for instance, the total cost could be approved by the user by requiring the user 1 to press a button confirming that the user 1 accepts the amount that is to be paid, and the user 1 can also be sure that the information displayed on the screen has been captured correctly.

A request is then transmitted from the mobile device to a bank 8 or other financial services provider of the user of the user 1. In preferred embodiments the mobile device is a mobile phone, and the request is transmitted over the mobile phone's usual communications channel. The request may be send as an SMS message or in any other suitable form. The request contains at least information identifying the account of the merchant 2, and the total cost. In preferred embodiments the message may also contain information that identifies the merchant 2 uniquely.

On receipt of the request, the bank 8 of the user 1 transfers the required funds to the account of the merchant 2. When the merchant 2 receives confirmation from its bank 7 or other financial services provider that the funds have been received, the transaction is complete and the user 1 has paid for the goods and/or services. A receipt may be issued.

It will be appreciated that the above-described method is significantly more secure against fraud than conventional methods. In particular, it is important that funds are transferred to the merchant actively by the bank 8 of the user 1, rather than the user 1 providing his or her bank details to the merchant 2 and allowing the merchant 2 to extract the funds from the user's bank account.

Providing merchants with bank details that allow funds to be extracted directly from the account of the user is a substantial source of fraud. Unscrupulous merchants may use the bank details to extract more than the appropriate amount from the user's account, or may effect a separate transaction after the user has left the premises, extracting further funds from the user's account.

In addition, other parties may obtain the users bank details from the merchant, either with the merchant's collaboration or by intercepting details that are sent from the user to the merchant.

In contrast, by sending a request to the user's bank 8 and instructing the bank 8 to transfer funds actively from the user's account to the merchant's account, the merchant 2 is never in possession of the user's bank details and is therefore not in a position to extract funds from the user's account. Of course, the merchant 2 is entitled to receive confirmation that funds have been transferred to the merchant's account before providing goods or services to a user 1, and this requirement can be satisfied since the merchant's bank 7 will be able to provide confirmation that the funds have been received from the user's bank 8.

It will be appreciated that embodiments of the present invention provide a swift and user-friendly way to effect active transfers of funds to a merchant's bank accounts.

It is preferred that, when the request is sent from the user 1 to the user's bank 8, security measures are in place to require the user I to identify him/herself and ensure that requests are not sent from the mobile device fraudulently. In preferred embodiments, the user 1 may be required to enter a unique code (such as a PIN code) onto the keyboard of the mobile device before the request can be sent. The user I may also be required to speak into the mobile device, with the mobile device being provided with an appropriate microphone and voice-recognition software, to confirm that the request is being sent by the user I and not by an unscrupulous third party.

In preferred embodiments of the invention, both of these measures are used.

The invention is not limited to capture of a screen containing textual information by a mobile device having an image capture device. Instead, the necessary information may be transmitted from a merchant's terminal directly to the user's mobile device, for instance by a blue tooth, infrared or wired connection or any other suitable means.

Methods embodying the present invention may also be used to conduct a secure transaction at an ATM or similar terminal. In such embodiments, the user 1 approaches an ATM and inserts an appropriate card into the card-receiving slot of the ATM. The card contains certain information which is readable by the ATM, and is preferably a "smart" card including a microchip with an associated memory. Preferably, however, the card does not contain or have displayed thereon any information relating to the user or the user's bank account details.

The ATM then invites the user I to indicate an amount of cash which the user desires to withdraw. Once this selection has been made, the ATM displays a screen, an example of which is shown in Figure 3, on which is presented information 5 identifying a bank account of an operator of the ATM, and the selected amount 4. The screen may also preferably include information 3 uniquely identifying the ATM itself.

As discussed above, the user 1 captures an image of the screen, and transmits a request to his or her bank 8 containing at least information identifying the bank account of the ATM operator and the selected amount.

The user's bank 8, upon receiving and verifying the request, transfers the required funds to the bank account of the operator of the ATM, and when the ATM operator receives confirmation that these funds have been transferred, authorisation is given for the ATM to dispense the appropriate quantity of currency.

Alternatively, if the request cannot be verified, or if there are insufficient funds in the user's account, this information will be relayed to the operator of the ATM and the ATM may display an appropriate warning or error message on the screen.

As discussed above, the invention is not limited to display of information on a screen, and information may be transmitted to the user's mobile device by any other appropriate means.

The present invention also provides a point of sale arrangement 9 suitable for carrying out methods embodying the invention. The arrangement 9 preferably includes a processor 10 for controlling the arrangement 9 and for receiving at least the cost of the goods and/or services desired by the user, a transmission arrangement 11 for communicating with the user's mobile device (for example a screen or wireless transmitter), a communication arrangement 12 (for example a secure telephone or Internet connection) for receiving confirmation that the funds have been transferred, and a confirmation arrangement 13 (for example a display or speaker) for informing the merchant that the funds have been transferred and that the transaction is complete. A schematic view of the point of sale arrangement is shown in Figure 4.

In the embodiments described above, details of a bank account of the merchant 2 are presented or communicated to the mobile device of the user 1.

For various reasons, however, merchants 2 may prefer not to display this information. In alternative embodiments, it is envisaged that the merchant 2 may be included on a database, held at a central location, that includes details of the merchant's bank account. In these embodiments, the information that is captured or received by the user's mobile device may include details identifying the merchant 2 uniquely, such as the name and address of the merchant 2, or even a uniquely-allocated merchant code. This information can then be related at the central database to the information identifying the merchant's bank account, and the transfer of funds can proceed as described above.

It will be appreciated that the present invention provides a flexible and user-friendly method for making payments securely, which can be adapted to suit almost any circumstances.

When used in this specification and claims, the terms "comprises" and "comprising" and variations thereof mean that the specified features, steps or integers are included. The terms are not to be interpreted to exclude the presence of other features, steps or components.

The features disclosed in the foregoing description, or the following claims, or the accompanying drawings, expressed in their specific forms or in terms of a means for performing the disclosed function, or a method or process for attaining the disclosed result, as appropriate, may, separately, or in any combination of such features, be utilised for realising the invention in diverse forms thereof.

Claims

Claims 1. A method of processing a payment between a user and a

merchant, comprising the steps of: indicating, by the user, desired goods or services; providing, by the merchant, sale information in a form which may be captured by, or transferred to, a mobile device, the sale information including at least the cost of the desired goods and/or services, and identification of the merchant or an account of the merchant; capturing or otherwise obtaining, by a mobile device of the user, the sale information; sending, by the user, a request to a service provider of the user from the mobile device, the request including at least the sale information, instructing the service provider to transfer funds actively to the merchant to cover the cost of the goods and/or services; receiving, by the merchant, confirmation that the funds have been transferred to the account of the merchant; and providing or releasing, by the merchant, the desired goods and/or services.
2. A method of authorising payment, comprising the steps of: indicating desired goods and/or services provided by a merchant; captunng or receiving by a mobile device sale information provided by the merchant, the sale information including at least a cost of the desired goods and/or services and identification of the merchant or a bank account of the merchant; and -transmitting from the mobile device a request to a service provider, the request including at least the sale information and a request to transfer funds actively to the merchant to cover the cost of the desired goods and/or services.
3. A method of processing payment by a merchant, compnsing the steps of: receiving an indication from a user of desired goods and/or services; providing sale information to the user in a form which may be captured, or transferred to, a mobile device, the sale information including at least the cost of the desired goods and/or services and identification of the merchant or a bank account of the merchant; receiving confirmation of the transfer of funds to the merchant to cover the cost of the desired goods and/or services; and providing or releasing the desired goods and/or services.
4. A method according to claim 1 or 3, wherein the sale information is provided on a screen.
5. A method according to Claim 1, 3 or 4, wherein the sale information comprises identification of a bank account of the merchant, and good and/or services are provided or released upon receiving confirmation that funds have been transferred to the identified account.
6. A method according to Claim 1, 3 or 4, wherein: the sale information comprises identification of the merchant; the identity of the merchant is linked to a bank account of the merchant in a database; and good and/or services are provided or released upon receiving confirmation that funds have been transferred to the identified account.
7. A method according to any preceding claim, wherein the sale information is captured by an image capture device of the mobile device.
8. A method according to any preceding claim, wherein the desired goods and/or services comprise merchandise at a retail outlet.
9. A method according to any one of claims 1 to 7, wherein the desired goods and/or services comprise currency dispensed from an ATM or similar device.
10. A method according to any preceding claim, wherein the sale information further comprises information identifying the merchant and/or the location of the merchant.
11. A computer program comprising computer program code adapted to perform all of the steps of any preceding claim when said program is run on a computer.
12. A computer program according to claim 11, embodied on a computer-readable medium.
13. A point of sale arrangement comprising: a processor operable to receive an indication of the cost of goods and/or services desired by a user; a transmission apparatus operable to provide sale information in a form which may be captured, or transferred to, a mobile device, the sale information including at least the cost of the desired goods and/or services and identification of a merchant or a bank account of the merchant; a communication arrangement for receiving an indication that funds to cover the cost of the desired goods and/or services have been transferred to the merchant; and a confirmation arrangement to provide an indication that the funds have been received and that the goods and/or services may be provided or released.
14. A method substantially as hereinbefore described, with reference to the accompanying drawings.
15. A computer program substantially as hereinbefore described, with reference to the accompanying drawings.
16. A point of sale arrangement substantially as hereinbefore described, with reference to the accompanying drawings.
17. Any novel feature or combination of features disclosed herein.