WO2001093219A2

WO2001093219A2 - Financial payment system

Info

Publication number: WO2001093219A2
Application number: PCT/GB2001/002276
Authority: WO
Inventors: James Ferguson Wright
Original assignee: De La Rue International Ltd.
Priority date: 2000-05-26
Filing date: 2001-05-22
Publication date: 2001-12-06
Also published as: GB0012995D0; AU2001258597A1

Description

FINANCIAL PAYMENT SYSTEM

The present invention relates to a financial payment system, in which a number of accounts are administered by an account provider.

There are an increasing number of methods by which a consumer may make payments for goods and services supplied by retailers and other undertakings. In recent years the advance of electronic financial transactions has been reflected in a movement away from traditional payment methods such as by cash or cheque, towards the more versatile credit and debit card systems. There has been a corresponding development in the use of cash cards, enabling a card holder to conveniently retrieve cash from automatic teller machines (ATM) at any time of the day or night. Many banks now supply combined cards in which for example, a cash card acceptable in an ATM machine can now be used to purchase goods as a debit or credit card.

An example of a system for obtaining cash from an ATM is described in US-A-5663546.

The increasing presence of retailers and service providers upon the Internet has provided an environment in which electronic transactions are widely supported. A wide range of goods and services may now be purchased over the Internet using debit or credit cards, the user only requiring to enter a small amount of information including the card number at the appropriate point on the retailer's web page .

Card transactions also enjoy widespread support in many countries and are popular with many consumers as they provide an efficient method of paying for goods or services without the need to carry cash. Payments within shops are effected by swiping the card through a card reader, which automatically reads the card details, and electronically contacts the undertaking responsible for card payments in order to obtain authorisation for the transaction. However, there exists a large sector of the population who do not use cards in order to make payments for goods . This sector includes the unemployed, those employed but paid in cash, the young, those in full or part-time education and those who wish to make payments anonymously. In accordance with a first aspect of the present invention, we provide a financial payment system comprising: an account provider for administering a number of accounts held in a database; a number of agents connectable via communication means to the account provider, the agents being authorised to deposit funds via the communication means into a new account on receipt of payment from a new account holder; wherein the account provider is adapted to receive from an agent data indicating the value of the supplied funds to be deposited, to credit a specified new account with the funds and to activate the specified new account upon crediting it with the funds; and wherein the account provider is adapted to make the newly credited funds available to the new account holder for use in transactions as soon as the account provider receives the data from the agent .

Undertakings which issue conventional payment cards, for example banks, require the applicant to set up an account with them. It takes typically three working days before the account can be used. The setting up of such an account requires the account holder to provide a large amount of information, such as details of their place of residence, type of employment and income. This information is primarily required for security purposes and to prevent fraudulent use of payment cards. The application process is therefore time consuming and a significant amount of time passes between the original application and the account holder being issued with their card, enabling them to make payments. We have realised that it is possible to avoid these set-up requirements in certain situations, particularly when the amounts are relatively small and by operating the account so that it is never overdrawn. The system of the present invention therefore provides a means of immediately supplying a new account holder with an account upon the transfer of funds to an agent . The account can then be used straight away for making financial payments, without the need for lengthy security checks or indeed any information about the account holder.

Typically the agents may be authorised to deposit funds via the communication means into an existing account on receipt of payment from an existing account holder. Accordingly the account provider may be adapted to receive from an agent data indicating the value of the supplied funds to be deposited and to credit a specified existing account with the funds. The account provider may then make the newly credited funds available to the existing account holder for use in transactions as soon as the account provider receives the data from the agent.

The account holders may be asked to memorise or otherwise record their account number, possibly along with an appropriate password. However, typically the system will further comprise a plurality of payment cards, each card containing data identifying a respective account of the account holder. The system will also typically provide at least one agent with card interaction means, adapted to read data contained on a payment card. Advantageously the system may be arranged such that the interaction means is a conventional electronic point of sale machine, as these are widely used by retailers.

Alternatively the agents may comprise automated devices situated for example in an Internet Cafe, Internet Kiosk, or even an ATM machine. These may be used to acquire new accounts or to credit existing accounts. However, in these cases the automated devices must be capable of receiving funds from account holders and converting the funds into data for communication to the account providers. Preferably a step of authenticating the supplied funds will be performed by such devices. A receipt may also be generated to confirm the deposit of the funds. Although typically the accounts will be specified by an account number, they may be identified using data chosen by the account holders such as their email address.

In systems having payment cards, the cards will preferably be arranged to be useable in an ATM machine in a similar manner to conventional cards. The data held on the card will typically comprise an account number. A 16- digit number provides a suitable account number for compatibility with existing systems. The account number will also preferably be embossed upon the card. The account holder may be provided with a password such as a personal identification number (PIN) . This PIN will may be alterable by the account holder, for example at an ATM machine, to a PIN of their choosing.

The account provider of the system will preferably further comprise account access means enabling the account holder to obtain information concerning their account. This may be achieved using an ATM or for example by the provision of a dial-in telephone voice or touch-tone operated facility. Similarly the account access means may provide this information to the account holder using the Internet .

The accounts may be arranged such that they are initially stored on the database in an inactive state. An inactive account may then be activated upon receipt of the data from the agent indicating the value of the funds to be credited to the account. Alternatively an active account may be created in the database only upon receipt of the data from the agent identifying the account and the funds to be credited. Preferably information identifying an account may be used to make payments on the Internet for goods and services from a supplier. This may be achieved from the account holder's home using a personal computer, from an Internet Cafe or from Internet Kiosks placed in existing retail outlets. In this case the supplier will request an authorisation for the amount to be paid from the account provider before supplying the goods or services.

In principle any low cost goods and services could be purchased using the system according to the present invention. These include Internet or Digital television movies or pay-per-view services; audio tracks, compilations and MP3 data; leisure activities; Internet catalogue products; along with delivered products or services such as flowers or meals. In addition the system could be used in other countries to make payments to local undertakings in these countries such as Internet Cafes, which in return provide cash funds in the local currency.

In accordance with a second aspect of the present invention we provide a method of supplying funds to an account provider of a financial payment system, the method comprising: the agent transmitting to the account provider data indicating the value of the supplied funds to be credited, via the communication means to the account provider, the account provider then activating a specified account and crediting the account with the funds; and the account provider making the funds available to the account holder for use in transactions as soon as the account provider receives the data from the agent .

In the case of existing accounts, the method comprises: the agent transmitting data to identify the account and an indication of the value of the supplied funds to be credited, via the communication means to the account provider, the account provider then crediting the account with the funds; and the account provider making the funds available to the account holder for use in transactions as soon as the account provider receives the data from the agent. Advantageously, in the present invention, the account holder may remain anonymous with respect to the agent and/or to the account provider. The receipt by the agents of funds from the account holder prior to providing them with an account, removes the necessity for security checks and allows the account holder to immediately use the account. The account holder is therefore only identified by reference to their account number. The accounts may be conveniently transferred from the account holder to another person, for example as a gift. This may be achieved by informing them of the account number and PIN, and where applicable, giving the person the relevant card. This is particularly convenient in cases where the account holder is anonymous to the account provider, as the new account holder's details are not required by the account provider.

Some examples of payment systems according to the present invention will now be described with reference to the accompanying drawings, in which: -

Figure 1 is a block diagram of a system according to a first example;

Figure 2 is a flow diagram of the operation of the system according to a first example; and

Figure 3 is a diagram of a system according to a second example; and Figure 4 is a flow diagram of a system according to a second example.

The system according to a first example of the present invention will now be described with reference to Figures 1 and 2. Referring to Figure 1, an account provider 1 comprises a computer system 2 which operates a database of accounts 3 held in a store and a network interface 4. The database 3 contains individual financial accounts lOOa-lOOn as records, each account corresponding to a separate record. Each account is a database record and is assigned a unique account reference number, and a password such as a personal identification number (PIN) . The database record for each account contains fields for the account reference number, password, issuer number, account funds, and further fields to record information such as the account transaction history and details identifying the account holder if supplied. The network interface 4 of the account provider 1 is a standard VisaNet connection operated using a modem. The account provider 1 is connected over the VisaNet network 5 to a number of remote agents 10-13 (in practice there will be many hundred agents) . As an alternative to the VisaNet system, the network 5 may be any suitable network for transmitting data such as a PSTN or digital telephone network, a LAN or WAN, or the Internet. A card manufacturer 20 produces cards and accompanying documentation for the accounts to be used by account holders.

As shown in Figure 2, inactive accounts are created on the database. The account provider 1 assigns to each account an account reference number, a password and an issuer number (step 301) . The issuer number identifies the agent to which the cards are to be sent following manufacture. The account reference number, issuer number and PIN for each account are then sent to the card manufacturer 20 (step 302) . The card manufacturer 20 then produces cards 200a-200n corresponding to the accounts lOOa-lOOn in the database (step 303) . The front of each cards is embossed with the appropriate account reference number, corresponding to the respective account along with an embossed expiry date and an embossed issuer number. The expiry date is included in the present example to enable compatibility with conventional credit and debit card systems which require this information. It is likely that a dummy date will be chosen for example 10 years from the month of manufacture .

The rear of each card has a magnetic strip in a similar manner to conventional credit or debit cards. The magnetic strip of the card 200a for example contains the account reference number of the account 100a and the expiry date encoded within it.

The cards in the present example are based upon similar technology to conventional debit or credit cards known in the art. In this example the card is intended to be used with conventional card readers such as point-of- sale terminals and ATM machines. It is also envisaged that a system using a smartcard containing a microchip could be used in conjunction with or as an alternative to the magnetic strip.

Each card relates to a specific account and has accompanying documentation 21 which is also specific to the same account. The documentation 21 provides the account holder with general information about how to use the account and specifically states the account reference number and the issuer number. The documentation also provides details of the agents 10-13 authorised to recharge the accounts with credit and further information upon how to contact the account provider. Each document 21 is therefore unique to a specific account 200a-200n, and each also contains a predefined password hidden behind a scratch panel 23. The password in this example is a four digit personal identification number (PIN) . The password is stored in the database record of the account and will only become known to the account holder. The password may be changed by the account holder at a later time.

Following manufacture, envelopes 22 containing the cards and their respective documentation 21 are sent in a batch to the agent 10 at step 304 in Figure 2. Considering account 100a in more detail, upon originally defining the account in the database all fields are assigned a null status apart from the account reference number field, the password field and the issuer number field which are each assigned specific numbers. Following initialisation in this manner, the accounts are ready to receive funds. The account will then be available for transactions. Upon receipt of an order for a batch of cards from the agent 10, the account provider assigns a specific number of accounts for initialisation by the agent .

As the cards contain no details of the account holder, for security reasons it is desirable to randomly assign account reference numbers to the agents having corresponding issuer numbers.

A prospective account holder contacts the agent 10 and requests to be provided with an account (step 305 in Figure 2) . In the present example the agent 10 may be a well known retailer, although other suitable agents include banks, post offices, utility providers, Internet cafes and other undertakings having national chains. The account holder provides agent 10 with an amount of cash at step 306. It is not necessary for the funds to be provided in the form of cash. In fact, any form of monetary payment is acceptable provided the agent is happy to guarantee the funds to the account provider. The agent will be responsible for the payment to the account provider of sums provided by the account holder even if the account holder defaults on the payment. In the present example, the use of cash prevents this.

Upon receipt of the funds, at step 307 the agent 10 provides the account holder with an envelope 22 containing the card 200a and documentation 21. The account holder obtains the PIN for the account by scratching off the panel 23 contained on the documentation (step 308) . The agent's representative then swipes the card 200a through a conventional point-of-sale card reading device 25, which reads the data contained on the magnetic strip. The device 25 automatically contacts the account provider 1 via the communication network 5 (step 309) . The account reference number taken from the magnetic strip is passed to the account provider 1 for authentication along with a separate agent code which uniquely identifies the agent 10 (step 310) . For deposit transactions the account holder is not required to provide the PIN number. The account provider 1 correlates the account reference number with those held in the database 3 for the account 100a. The account provider 1 may also check that the issuer number corresponds to the identity of the agent as determined by the agent code . The account provider then performs a check that the account 100a is currently inactive. If the data is determined to be genuine then a confirmation signal is sent back to the agent 10. (In the event of an error the agent 10 is contacted and instructed to repeat the operation, but should further attempts fail then the agent is instructed to destroy the card and the account is suspended) .

The agent 10 is then requested to check the account reference number read by the card reader with that embossed upon the card. The agent's representative is asked to enter the amount of funds to be credited to the account . The amount of funds is then transmitted to the account provider 1 (step 313) and if these numbers corelate (step 314) the account is activated and the funds are credited to the account for immediate use at step 315. The value of the funds is placed in the appropriate field of the database, replacing the null entry. The database record is also updated with the time of the transaction, and the agent code . As confirmation of the transaction, the agent 10 may provide the account holder with a paper receipt for the deposit containing the balance of their new account as confirmed by the account provider 1 (step 316) .

The account holder may then "visit" via the Internet or other electronic transaction system any provider of goods or services that support the system and may make immediate payments for goods using the account as will be more fully explained in the second example below. Alternatively the card could be used in conventional shops such as the retailers 30,31 in Figure 1.

At the close of business each day, the account provider obtains the funds from each of the agents by a conventional CHAPS or BACS direct debit transfer from their individual bank accounts (step 318) . The amount debited will equal the sum of all credits put on all accounts by the agent during that day. In this example the system does not have high levels of security as the account holder does not need to provide an agent with any identification to obtain an account. There is also no requirement for the account holder to sign the card. However, the account provider may reduce fraud by placing an upper limit upon the amount of funds to be held in an account, for example 50 pounds. As a result, using the card will be only of limited benefit to criminals.

For all purchases using the system of the present invention, authorisation for the purchase must be achieved in real time from the account provider 1.

In this example the computer system 2 is also connected to the Internet so that account holders may contact the account provider to request account information using a Web-browser. The accounts of the present invention are intended to be re-credited upon becoming depleted in funds. This re- crediting can be performed at any time providing the account remains in an active state. To re-credit the account, the account holder can visit an agent and credit their account with funds in a similar manner to the original steps of opening the account, however in the present example the use of the PIN number is not required.

A second example will now be described with reference to Figures 3 and 4. This example is specifically related to making of payments via the Internet using the transaction system of the first example. Similar reference numerals are used to describe similar elements to those of the first example .

Referring to Figure 3, the account provider is a "PAYzone" computer server 1 which is equipped with a network interface for communicating with the agents via a network 5 and an Internet interface to communicate with account holders and retailers using the Internet 6.

A specific Internet payment format is used called PAYzone which has corresponding PAYzone cards 200. The account holder makes purchases using their account information by providing this directly to electronic retailers referred to as "e-tailers" 40a-40n via the Internet. Only e-tailers which support the PAYzone payment system can complete PAYZone transactions. In this case the card only contains a single PAYzone Internet Account Number referred to as "PIANo" which comprises a PAYzone issuer number, a unique customer reference number and a Luhn check digit. The account is obtained in a similar manner to that described in the first example. A password is also used which may take the form of numerals (such as a PIN) , letters or a combination of both.

To illustrate the use of a PIANo account in making a transaction according to this example, the purchase by a child of a music single in electronic format, will now be described with reference to Figure 4. As age and other restrictions are applied by conventional credit and debit card accounts, this example shows how the present invention enables consumers who do not possess such accounts to make card-based payments.

The child (account holder) obtains a PIANo account

(step 400) and accesses the Internet via web browser software 35 running on their home computer 36. A music retailer 40a provides an online purchasing facility via the worldwide web which supports the PAYzone format. The account holder enters the URL of the retailer 40a into their web browser and the corresponding web site of the retailer 40a is located (step 401) . The homepage of this web site provides access to further pages including a page containing newly released music tracks which may be downloaded as compressed music data files in exchange for payment . The account holder selects a particular track to purchase (step 402) causing a further page to appear offering various methods of payment including payment by credit card, debit card and PIANo. The account holder selects payment by PIANo (step 403) and a further web page appears showing the amount to be paid. The account holder is invited to enter their PIANo account number and their password in fields provided (step 404) . This information may be encrypted to prevent the e-tailer gaining knowledge of the account.

The Payzone Internet account number and password are then passed from the computer system of the e-tailer in a secure manner to the account provider 1 along with the amount of funds to be debited and information identifying the e-tailer (step 405) . Using the PIANo number and password, the account provider 1 identifies the account of the account holder and compares the funds within the account with those to be debited (steps 406 and 407) . If the funds in the accounts are equal to or exceed those requested then the account provider 1 authorises the e- tailer 40a to complete the transaction and stores a record of it in the database (step 408) . The transaction is performed in a similar manner to a standard debit card transaction using similar software by the e-tailer. To complete the transation the e-tailer then provides the child with access to the data file held on a data store and the purchased music is downloaded over the Internet to the computer 36 of the account holder (step 409) .

Settlement of the accounts is performed by CHAPS or direct debit to the individual accounts of the e-tailers from a central account of PAYzone (step 410) . This may be performed daily or weekly. The e-tailers receive a statement of revenues, commissions, payments or the net amounts outstanding. The PAYzone commission is performed in a reverse direction as a BACS weekly debit.

The present example also provides a delayed transaction facility in which the account holder can set up a transaction and then make a subsequent payment in order to complete it. This may occur where the balance in the nominated account is insufficient to cover the payment. In this case the transaction is put "on-hold" until sufficient funds are received from the account provider. The transaction is logged in the account database record by the account provider until the transaction is completed. Up to ten transactions may be placed on hold in the present example and these are completed in the order in which they were made. All other transactions are completed immediately if sufficient funds are available and the account is adjusted to reflect the new balance. For on- hold transactions, the account provider sends information to the e-tailer, such as an "On-Hold Transaction Number" which identifies the on-hold transaction. The e-tailer may then provide this to the account holder using their web site. The child may then access the web site of the e- tailer to check the status of their order.

The account holder may access details of their account including on-hold transactions via the web site of the account provider, by entering their PIANo number and password. The PIANo web site also provides information to account holders, terms and conditions, how to apply for an account, lists of agents and suppliers, account access facilities and an account suspension request facility.

Accounts may be suspended by contacting a help desk. Account holders will be able to receive the balance of frozen accounts as long as they have previously provided their contact details, for example by returning a form provided as part of the original documentation. In order to receive the account balance, account holders complete an appropriate application form by entering their contact details. Further evidence may also be required, for example by providing copies of receipts for recent transactions. As the anonymity of the account holder is a feature of the system, the account holder can choose not to provide the contact details and therefore risks losing the funds if the account is suspended.

The central account of the account provider may be held by a financial undertaking such as a bank. The undertaking may then administer the authorisation of transactions between the account provider and the e- tailers. In this case the e-tailer transmits the PIANo number, the PIN, the payment value and the a code identifying the e-tailer, directly to the financial undertaking. A second authorisation request including the PIANo, PIN and the value of the requested funds is then sent to the PAYzone server for authorisation. Once the server has checked that the relevant account contains the required funds, a signal is sent to the undertaking authorising it to complete the transaction. The use of a financial undertaking has advantages in that this increases the compatibility of the system with conventional credit and debit card transactions.

Claims

1. A financial payment system comprising: an account provider for administering a number of accounts held in a database; a number of agents connectable via communication means to the account provider, the agents being authorised to deposit funds via the communication means into a new account on receipt of payment from a new account holder; wherein the account provider is adapted to receive from an agent data indicating the value of the supplied funds to be deposited, to credit a specified new account with the funds and to activate the specified new account upon crediting it with the funds; and wherein the account provider is adapted to make the newly credited funds available to the new account holder for use in transactions as soon as the account provider receives the data from the agent .

2. A system according to claim 1, wherein the agents are authorised to deposit funds via the communication means into an existing account on receipt of payment from an existing account holder; wherein the account provider is adapted to receive from an agent data indicating the value of the supplied funds to be deposited and to credit a specified existing account with the funds; and wherein the account provider is adapted to make the newly credited funds available to the existing account holder for use in transactions as soon as the account provider receives the data from the agent.

3. A system according to claim 1 or claim 2, further comprising a plurality of payment cards, each card containing data identifying an account, and card interaction means adapted to read data contained on the payment cards.

4. A system according to claim 3, wherein the data held on the card comprises a reference code for identifying an account .

5. A system according to any of the preceding claims, wherein the database stores a number of accounts in an inactive state, an inactive account becoming activated upon the receipt by the account provider of the data from the agent .

6. A system according to any of the preceding claims, wherein information identifying the account can be used to make payments electronically for goods or services from a remote supplier.

7. A system according to any of the preceding claims, wherein the account provider and the agents are adapted to be connectable via the Internet .

8. A system according to any of the preceding claims, wherein the account provider is adapted to compare funds credited to an account with funds indicated by a supplier which are required to purchase goods or services, and to issue an authorisation if the funds are sufficient.

9. A method of supplying funds to an account provider of a financial payment system according to any of the preceding claims, the method comprising: the agent transmitting to the account provider data indicating the value of the supplied funds to be credited, via the communication means to the account provider, the account provider then activating a specified account and crediting the account with the funds; and the account provider making the funds available to the account holder for use in transactions as soon as the account provider receives the data from the agent .

10. A method of supplying funds to an account provider of a financial payment system according to claim 2 and to any of claims 3 to 8 when dependent upon claim 2, the method comprising: the agent transmitting data to identify the account and an indication of the value of the supplied funds to be credited, via the communication means to the account provider, the account provider then crediting the account with the funds; and the account provider making the funds available to the account holder for use in transactions as soon as the account provider receives the data from the agent .

11. The method according to claim 9 or claim 10, wherein the account holder remains anonymous with respect to the agent and/or to the account provider.

12. The method according to any of claims 9 to 11, wherein the account provider and the agents are connected via the Internet .