GB2384098A

GB2384098A - A payment system

Info

Publication number: GB2384098A
Application number: GB0204265A
Authority: GB
Inventors: Alan Donnelly; Jane Donnelly
Original assignee: Individual
Current assignee: Individual
Priority date: 2002-01-15
Filing date: 2002-02-25
Publication date: 2003-07-16
Also published as: GB0200911D0; GB0204265D0

Abstract

A payment system comprises account details stored in a cellular network device such as a mobile telephone 100 for an account, wherein on connection of the cellular network device with a payment terminal 102 and on correct entry of a code such as a PIN 104 into the cellular device 100 , the cellular device 100 passes the account details to the payment terminal 102 for crediting or debiting the account. The account may be debited by the payment terminal 102, thereby permitting payment of goods and services with the cellular network device. The cellular device may have a subscriber identity module (SIM) card which stores the account details in encrypted form. The payment amount may be input on the cellular device 100 and transmitted to the payment terminal 102. The cellular device 100 may connect with the payment terminal 102 by being inserted into the payment terminal 102 and communicates with the payment terminal 102 through an electric connection. There is also disclosed a method of payment.

Description

CELLULAR NETWORK DEVICE The present invention relates to a cellular network device. In particular, a cellular network device which contains account details for an account, such as a bank or credit card account, and can thereby be used to pay for goods and services by connecting with a payment terminal. A cellular network device may be a mobile telephone. An example of a use for such a mobile telephone is by a customer paying for goods and services in a shop having a payment terminal. Such a telephone may be referred to as a"C Phone".

Present systems and methods for paying for goods and services by passing account details to a payment terminal, rely on having a plastic card. The card may be a credit or debit card and has account details, such as a card number, expiry date and/or issue number printed on one side. The account details are also stored in an electronically readable form either on a magnetic strip on a reverse side of the card or in a chip contained in the card. The customer's signature is also written onto the card for security. Some examples of commonplace existing systems are Visa, Mastercard or Switch (Trade Marks).

Currently, payment for goods or services using a credit or debit card begins with the customer handing over their card at a point of sale, which may be automated, such as a vending machine, or may have a sales assistant who will swipe the card through or insert the card into a payment terminal. The amount of the payment is entered into the payment terminal by the sales assistant or, if automated, by the customer. Both the payment amount and the account details are sent to a credit processing centre across a telephone line. The credit processing centre checks whether there is sufficient credit for payment of the transaction and sends either authorisation or refusal of the payment back to the payment terminal. If payment is authorised, a paper receipt is printed by the payment terminal. Sometimes the customer is required to sign the receipt so that the customer's signature on the receipt can be compared to the signature on the card by a sales assistant. If the signatures match, the sales assistant confirms the transaction by pressing a confirm button on

the terminal. Credit is then transferred from the customer's account to the point of sale's account by the credit processing centre or an acquiring bank. Other examples of points of sale include petrol stations, restaurants, theatres and toll booths.

One problem with present systems and methods is the security of the card. If a card is stolen, the customer's signature on the card can be easily forged and the card can be used without the customer's knowledge. If no signature is required, for example at vending machines, then fraudulent use of the card is even simpler.

Credit card fraud in the United Kingdom currently costs credit card companies jE300 million each year. Often if a credit or debit card is stolen, the owner may not realise until after the card has been fraudulently used to charge large amounts of money to the customer's account.

A credit or debit card and a cellular network device, such as a mobile telephone, are considered essential items when leaving the home. It is difficult to keep track of both items at the same time, particularly the credit or debit card. If a user of a credit or debit card does not use their card regularly and the card is stolen, it may be some time before the user realises that the card is missing. In the meantime, a large sum of money may have been stolen because the theft or loss was not discovered immediately. In contrast, the cellular network device is generally used more frequently that a credit or debit card and, due to its larger size, is often easier to keep track of. Another example of a cellular network device is a Personal Data Assistant (PDA) having cellular network connectivity.

Another problem with using a credit and debit card to pay for goods and services lies in the security of the account details. Account details are printed on the front of credit and debit cards and are easily readable by, for example, a shop assistant or waiter, who may be able to note down the details and use them at a later stage to pay for goods and services over the telephone or Internet, without having to be in possession of the card and without knowledge of the customer.

Therefore, what is required is an improved system and method for paying for goods and services, which does not permit use of a credit or debit card simply by checking a customer's signature, does not display account details to an operator of a payment terminal and combines the functionality of a conventional credit or debit card with another everyday object. Furthermore, an improved system or method is required which does not allow a third-party to view the credit or debit account details easily.

The proposed system and method will remove the need for credit or debit cards, which will in turn remove the problem of skimming, as well as introducing a new product to credit and debit card companies, banks and mobile telephone companies. The proposed system and method will ensure maximum security.

In view of the foregoing and in accordance with the present invention, there is provided a payment system having account details for an account stored in a a cellular network device, wherein on connection of the cellular network device with a payment terminal and a correct entry of a code into the cellular network device, the cellular network device passes the account details to the payment terminal for crediting or debiting the account.

Preferably, the account is debited by the payment terminal, thereby permitting payment of goods and services with the cellular network device.

In one embodiment of the invention, the account details comprise an account number and an issue and expiry date for the account. An example of an account number is"4545.........".

Preferably, the cellular network device includes a Subscriber Identity Module (SIM) card which stores the account details in encrypted form.

Preferably, the code is a PIN (Personal Identification Number) code stored in the cellular network device, such that correct entry of the PIN code into the cellular network device unencrypts the account details.

Preferably, incorrect entry of the PIN code after three consecutive attempts disables the cellular network device.

In one embodiment of the present invention, an operator of the payment terminal inputs the payment amount on the payment terminal. In another embodiment of the present invention, an operator of the payment terminal inputs the payment amount on another device connected to the payment terminal. In yet another embodiment of the present invention, the payment amount is input on the cellular network device and transmitted to the payment terminal.

Preferably, the payment terminal transmits the account details and a payment amount to a credit processing centre. The credit processing centre may be a credit company, a bank, or an independent transaction processing service.

Preferably, the payment terminal receives confirmation of authorisation or refusal of the payment from a credit processing centre and passes the confirmation to the mobile phone. Alternatively, the cellular network device receives confirmation of authorisation or refusal of payment over a cellular network from a credit processing centre and passes the confirmation to the payment terminal. The confirmation may be received by the cellular network device using SMS (Short Message Service) text message.

Preferably, the cellular network device connects with the payment terminal by being inserted into the payment terminal and communicates with the payment terminal through an electrical connection. Alternatively, the cellular network device connects with the payment terminal across a wireless data link, which may be an infra-red data link or a radio link, such as Bluetooth (Trade Mark).

In one embodiment of the present invention, the payment terminal communicates with a credit processing centre across a fixed telephone line. In another embodiment of the present invention, the payment terminal communicates with a credit processing centre across a wireless data link. Alternatively, the payment terminal communicates with a credit processing centre using the cellular network device.

Further, in accordance with the present invention, there is provided a method of payment, comprising the steps of : connecting a cellular network device with a payment terminal ; entering a code into the cellular network device; wherein on correct entry of the code, the cellular network device passes account details stored in the cellular network device to the payment terminal for crediting or debiting the account.

Preferably, the cellular network device is a mobile telephone.

A specific embodiment of the present invention is now described, by way of example only, and with reference to the accompanying drawing, in which figure 1 is an overview of the payment system according to the present invention.

Referring to figure 1, a customer inserts a mobile telephone (100) into a payment terminal (102), which is in the shape of a conventional mobile telephone desktop charger, to pay for goods or services in a shop. A four-digit PIN (Personal Identification Number) code (104) is entered by the customer into the mobile telephone (100) using the number keys (106). The PIN code (104) can be entered before or after insertion of the mobile telephone (100) into the payment terminal (102) directly or another device, such as a till or computer connected to the payment terminal. With the mobile telephone (100) inserted into the payment terminal (102) and a correct PIN code (104) entered by the customer, account details normally encrypted and stored on a Subscriber Identity Module (SIM) card in the mobile telephone (100), are unencrypted and transferred to the payment terminal (102)

across the electrical connection (108). The account details are temporarily stored in memory in the payment terminal (102) until after a payment transaction has been accepted or refused.

The PIN code (104) is not displayed on the mobile telephone screen (118).

Thus, nearby persons cannot view the PIN code (104) during or after entry of the PIN code (104). Incorrect entry of the PIN code (104) on three consecutive attempts will either disable or shut-down the mobile telephone (100) or prevent access to the Subscriber Identity Module (SIM) card, thereby preventing fraudulent payments by a person not knowing the PIN code (104). With access to the Subscriber Identity Module (SIM) card or use of the mobile telephone (100) disabled, an unlock code, kept by the manufacturer of the mobile telephone (100) or a mobile telephone network operator and different to the PIN code (104), must be entered to re-activate the mobile telephone (100) or Subscriber Identity Module (SIM) card.

A sales assistant enters the payment amount (110) to be debited from the customer's account using the payment keys (112) and confirms the payment amount (110) by pressing the confirmation key (114). The amount is displayed on the payment terminal screen (116).

The payment terminal (102) dials into a credit processing centre (120) across the fixed telephone line (122). The customer's account details and payment amount are passed to the credit processing centre (120), which checks whether the customer has sufficient credit in their account. If there is sufficient credit, the payment terminal (120) sends a transaction authorisation code back to the payment terminal (102). The processing centre (120) may also immediately debit the customer's account with the payment amount (110) and at the same time credit a receiving bank account. Alternatively, the transaction may be queued for processing at a later stage.

If the customer does not have sufficient credit, a transaction rejection message is passed back to the payment terminal (102).

The payment terminal (102) receives data from the credit processing centre (120) and displays either the authorisation code or the transaction rejection message on the payment terminal screen (116). Additionally, the authorisation code, along with the shop's name, payment amount, date and time may be printed out on a paper receipt (124) or be sent to the mobile telephone (100) for display on the mobile telephone screen (118) and storing in memory in the mobile telephone (100).

The PIN code (104) is entered and accessed on the mobile telephone (100) under a dedicated menu option, which may be entitled, for example,"Credit Facility". Under the menu option, there is also provided a facility to review past transactions stored in memory, change the PIN code (104) and add and select different accounts for use in making payments. Alternatively, access to the dedicated menu option may only be allowed on correct entry of the PIN code (104), in which case, access will be no longer be available as soon as a payment is made, or a certain period of time has elapsed without the dedicated menu option being used.

After a single payment has been made or rejected by the payment terminal (102), further payments cannot be made unless the PIN code (104) is re-entered into the mobile telephone (100). If the correct PIN code (104) is entered, but the mobile telephone (100) is not used for payment of any goods or services within a specified period, the mobile telephone requires that the PIN code (104) is re-entered.

It will of course be understood that the present invention has been described by way of example only, and that modifications of detail can be made within the scope of the invention.

Claims

CLAIMS 1. A payment system having account details stored in a cellular network device for an account, wherein on connection of the cellular network device with a payment terminal and on correct entry of a code into the cellular network device, the cellular network device passes the account details to the payment terminal for crediting or debiting the account.
2. A payment system according to claim 1, wherein the account is debited by the payment terminal, thereby permitting payment of goods and services with the cellular network device.
3. A payment system according to any one of claims 1 or 2, wherein the cellular network device includes a Subscriber Identity Module (SIM) card which stores the account details in encrypted form.
4. A payment system according to claim 3, wherein the code is a Personal Identification Number (PIN) code stored in the cellular network device, such that correct entry of the Personal Identification Number (PIN) code into the cellular network device unencrypts the account details.
5. A payment system according to claim 4, wherein incorrect entry of the Personal Identification Number (PIN) code on three consecutive occasions disables the cellular network device.
6. A payment system according to anyone of the preceding claims, wherein the payment amount is input on the cellular network device and transmitted to the payment terminal.

<Desc/Clms Page number 9>
7. A payment system according to any one of the preceding claims, wherein the payment terminal transmits the account details and a payment amount to a credit processing centre.
8. A payment system according to claim 7, wherein the payment terminal receives confirmation of authorisation or refusal of the payment.
9. A payment system according to any one of the preceding claims, wherein the payment terminal receives confirmation of authorisation or refusal of the payment from a credit processing centre and passes the confirmation to the mobile phone.
10. A payment system according to any one of claims 1 to 8, wherein the cellular network device receives confirmation of authorisation or refusal of payment over a cellular network from a credit processing centre and passes the confirmation to the payment terminal.
11. A payment system according to anyone of the preceding claims, wherein the cellular network device communicates with the payment terminal across a wireless data link.
12. A payment system according to anyone of claims 1 to 10, wherein the cellular network device connects with the payment terminal by being inserted into the payment terminal and communicates with the payment terminal through an electrical connection.
13. A payment system according to anyone of the preceding claims, wherein the payment terminal communicates with a credit processing centre across a fixed line telephone line.
14. A payment system according to anyone of claims 1 to 12, wherein the payment terminal communicates with a credit processing centre across a wireless data link.

<Desc/Clms Page number 10>
15. A payment system according to anyone of claims 1 to 12, wherein the payment terminal communicates with a credit processing centre using the cellular network device.
16. A payment system according to anyone of the preceding claims, wherein the payment terminal credits an account.
17. A payment system according to anyone of the preceding claims, wherein the cellular network device is a mobile telephone.
18. A method of payment, comprising the steps of: connecting a cellular network device with a payment terminal; entering a code into the cellular network device; wherein on correct entry of the code, the cellular network device passes account details stored in the cellular network device to the payment terminal for crediting or debiting an account.
19. A payment system, substantially as hereinbefore described with reference to the accompanying drawing.
20. A method, substantially as hereinbefore described with reference to the accompanying drawing.