WO2008047330A2

WO2008047330A2 - Financial transaction system and method

Info

Publication number: WO2008047330A2
Application number: PCT/IB2007/054264
Authority: WO
Inventors: Yolande Van Wyk
Original assignee: Firstrand Bank Limited
Priority date: 2006-10-19
Filing date: 2007-10-19
Publication date: 2008-04-24
Also published as: WO2008047330A3

Abstract

This invention relates to a financial transaction method comprising the steps of selecting a product or service for purchase from a number of products or services; transmitting a transaction reference number to a financial institution over a wireless network; receiving a transaction confirmation requests from the financial institution over the wireless network; and transmitting a confirmation message over the wireless network to the financial institution.

Description

FINANCIAL TRANSACTION SYSTEM AND METHOD

FIELD OF THE INVENTION

This invention relates to a method and a system for conducting a financial transaction using a wireless mobile communication device (MCD)

BACKGROUND TO THE INVENTION

The use of MCDs, such as cellular phones, personal digital assistants (PDAs) and palmtops, for conducting financial transactions over wireless communication networks is well known

There are, however, several disadvantages associated with the current art, primarily that the known systems and methods still require a customer to use his credit or debit card numbers or other bank account number when making payments Thus, despite their convenience, the known systems and methods cannot be said to be truly

"cardless", as customers are always required to use some bank card or bank card number or bank account number in addition to their MCD in order to effect the payment

Certainly, the current art does allow for a customer to conduct on-line payments, based on information presented on an internet web site, and using a MCD However, these payment methods suffer from the same disadvantage mentioned above, namely that the customer is still required to use a credit card or a debit card, or at least the details of that credit card or debit card, in order to effect such a financial transaction Again, in the internet environment, such transactions cannot be said to be "cardless"

Furthermore, the fear of so-called spyware technology has made at least some potential customers reluctant to use internet web sites to conduct payments The concern, again, is that credit card and/or debit card details or other bank account details that are entered by a customer might be misappropriated and exploited by fraudsters This has a negative influence on the on-line retail market, in that customers fear bank card fraud Retailers are reluctant to promote on-line sales as they are not always assured of receiving payment, in that a fraudulent payment may be cancelled by the rightful owner of a bank card Other payment methods using wireless phones are available but may be expensive as some of these payments are made through premium rated services such as Premium Rated Short Message Services (SMS)

OBJECT OF THE INVENTION

It is an object of this invention to provide a method and a system for conducting a financial transaction that, at least partially, overcomes some of the abovementioned problems

SUMMARY OF THE INVENTION

In accordance with this invention there is provided a financial transaction method comprising the steps of selecting a product or service for purchase from a number of products or services, transmitting a transaction reference number to a financial institution over a wireless network, receiving a transaction confirmation requests from the financial institution over the wireless network, and transmitting a confirmation message over the wireless network to the financial institution

This invention extends to a financial transaction method comprising the steps of selecting a product or service for purchase on a computer network from a customer computer, receiving a transaction reference number displayed on a computer screen of the customer computer, transmitting at least the transaction reference number to a financial institution over a wireless network, receiving a transaction confirmation request from the financial institution over the wireless network, and transmitting a confirmation message over the wireless network to the financial institution

The method further includes the step of receiving a transaction completion confirmation message over the wireless network In accordance with the second aspect of the invention there is provided a financial transaction method comprising the steps of: offering products or services for sale; receiving, from a customer, an offer to purchase a product or service; generating a transaction reference number; and causing the transaction reference number to be made available to the customer.

The products or services may be offered for sale on a computer network; the offer to purchase may be received over the computer network and the transaction reference number may be displayed on a screen of a customer computer.

In accordance with a third aspect of the invention there is provided a financial transaction method comprising the steps of: receiving, over a wireless network and from a customer wireless communication device, a request message to effect a transaction for the purchase of goods or services from a vendor, the request message including a transaction reference number; verifying the customer wireless communication device by comparing a code received with the message with codes stored in customer profiles in a database; transmitting a verification request message to a vendor computer system; receiving verification that an offer to purchase has been made as well as a price for the purchase; confirming that the customer has sufficient funds; and causing the transfer of funds from the customer account to a vendor account at the same or at another financial institution.

In accordance with this invention there is provided a financial transaction system comprising: a central account database having communication means for transmitting and receiving messages between a vendor computing means and a customer wireless communication device; authentication means for authenticating a message received from the wireless communication device, the message including at least a transaction reference number. There is provided for the wireless network to be a wireless telephony network and for the wireless communication device to be a cellular telephone

These and other features of the invention are described in more detail below

BRIEF DESCRIPTION OF THE DRAWING

One embodiment of the invention is described below with reference to the drawing which shows a schematic diagram of a financial transaction system

DETAILED DESCRIPTION OF THE DRAWING

With reference to the drawing, a financial transaction system is generally indicated by reference numeral 1

The system includes a financial institution such as a bank having a server computer 10

A vendor computer system 3 communicates with the server computer 10 and a vendor web site hosted by a service provider (not shown) on the Internet 4

The system further includes a customer computer 7 that may connect to the Internet as is known in the art

A customer's MCD 6 (which may be a cellular phone, personal digital assistant (PDA), palmtop, or the like) may also communicate with the server 10 over a General Services for Wireless (GSM) 5 network, as is also known in the art

In use, the vendor 3 advertises products (goods or services) for sale on the web site

The vendor 3 thus offers a number of products for sale on the web site Each specific product has an associated product identification such as a reference number displayed on the web site

A customer wishing to purchase a product selects the product on the web site and indicates to the vendor that he/she wishes to purchase the product, by clicking on relevant buttons displayed on the web site, as is known in the art. The software associated with the web site returns and displays a transaction reference number.

The customer now sends a USSD message, through the server computer 10, to an account database at his/her bank from his/her MCD. The USSD message includes the transaction reference number that was displayed to the customer on the web site. The USSD message is sent to a predetermined short code as determined by the bank.

The bank now validates the customer by comparing the customer's cellular telephone number or other identification received with the USSD message, with cellular telephone numbers or other identification details stored as part of customer profiles. If the telephone number or other identification matches a customer profile, the customer is validated and the bank transmits a message to the vendor requesting validation of the transaction reference number received from the customer and requests the price of the product.

The vendor now transmits a message to the bank indicating the price of the product after the vendor has verified that the customer has previously indicated on the web site that he/she wishes to purchase that product and that the vendor has issued that transaction reference number for the proposed transaction.

The bank now checks that the customer has sufficient funds in his/her account and then transmits an SMS message to the customer's cellular telephone asking the customer to authorise the transaction. The customer replies by sending a USSD message. This message may include a personal identification number (PIN). Upon receipt of the USSD confirmation message, the financial institution conducts the transaction by debiting the customer's account and crediting the vendor's account.

The financial institution now sends a message to the vendor informing the vendor that the transaction has been completed. The financial institution may also send a message to the customer confirming that the transaction has been completed.

All that remains is for the vendor to deliver the product to the customer, or for the customer to collect the product from the vendor. It is envisaged that the method and system described above will at least alleviate some of the difficulties associated with the prior art The method is secure in that the customer does not provide the vendor with his/her bank account details In fact, no bank account details are exchanged between any of the parties to the transaction The vendor may now extend its market to customers who do not have credit cards and is assured of payment as "card not present" fraud is eliminated Mobile service providers will also benefit as a result of increased volume of use

Furthermore, the use of a mobile telephone creates a second communication link for conducting the transaction thus increasing security in that it becomes more difficult to intercept communications

Various alternative embodiments to those described above are possible, without departing from the scope of the invention For example, mail and telephone orders for goods or services may be completed in accordance with the method described above Call center, parking and vending machine payments may also be made in accordance with the method Access control measure may be implemented and tickets may be issued using the system and method Instead also of using a transaction identification such as a transaction reference number or code, transaction identification could also be made by using the product reference number, product names or descriptions

Further alternatively, the customer does not have to indicate on the web site that he/she wishes to purchase a product The customer may obtain only a product reference or identification from the web site and inform the bank via the USSD message from his/her MCD that he/she wishes to purchase the product The bank will then inform the vendor that the customer wishes to purchase the product and forward the customer's details to the vendor

Claims

1 A financial transaction method comprising the steps of selecting a product or service for purchase from a number of products or services, transmitting a transaction identification to a financial institution over a wireless network, receiving a transaction confirmation requests from the financial institution over the wireless network, and transmitting a confirmation message over the wireless network to the financial institution

2 A financial transaction method comprising the steps of selecting a product or service for purchase on a computer network from a customer computer, receiving a transaction reference number displayed on a computer screen of the customer computer, transmitting at least the transaction reference number to a financial institution over a wireless network, receiving a transaction confirmation request from the financial institution over the wireless network, and transmitting a confirmation message over the wireless network to the financial institution

3 A method as claimed in claim 1 or claim 2 further including the step of receiving a transaction completion confirmation message over the wireless network

4 A financial transaction method comprising the steps of offering products or services for sale, receiving, from a customer, an offer to purchase a product or service, generating a transaction reference number, and causing the transaction reference number to be made available to the customer

5 A method as claimed in any one of claims 1 to 4 in which the products or services may be offered for sale on a computer network

6 A method as claimed in claim 4 in which the offer to purchase is received over the computer network and the transaction reference number may be displayed on a screen of a customer computer

7. A financial transaction method comprising the steps of receiving, over a wireless network and from a customer wireless communication device, a request message to effect a transaction for the purchase of goods or services from a vendor, the request message including a transaction reference number; verifying the customer wireless communication device by comparing a code received with the message with codes stored in customer profiles in a database; transmitting a verification request message to a vendor computer system; receiving verification that an offer to purchase has been made as well as a price for the purchase; confirming that the customer has sufficient funds; and causing the transfer of funds from the customer account to a vendor account at the same or at another financial institution.

8. A financial transaction system comprising a central account database having communication means for transmitting and receiving messages between a vendor computing means and a customer wireless communication device; authentication means for authenticating a message received from the wireless communication device, the message including at least a transaction reference number.

9. A system as claimed in claim 8 in which the wireless network to be a wireless telephony network and for the wireless communication device to be a cellular telephone.