AU2003100767A4 - Transmitting Electronic Transaction Data Across a Network - Google Patents

Description

P/00/009 Regulation 3.2

AUSTRALIA

Patents Act 1990 INNOVATION PATENT SPECIFICATION Invention Title: TRANSMITTING ELECTRONIC TRANSACTION DATA ACROSS A NETWORK Applicant: WILBY CRAFT PTY LTD The invention is described in the following statement: 1 W:\SASKIAlLette\IRN703161.doc Transmitting Electronic Transaction Data Across a Network Field of the Invention The present invention relates generally to a method for facilitating the transmission of electronic transaction data across a network from a electronic funds transfer terminal to a transaction processing entity. More particularly, the invention includes an apparatus that enables the transmission of electronic transaction data across a network which is not compatible with the electronic funds transfer terminal.

Background to the Invention Electronic funds transfer (EFT) relates to electronic transactions facilitating the transfer of funds from one entity to another or the authorisation of such a transfer of funds. EFT has rapidly become the preferred mode of payment for consumers and merchants alike. EFT is now available at most supermarkets, petrol stations and other retail outlets throughout Australia to provide a secure and convenient means to pay for purchases. The use of EFT negates the need for consumers to carry large amounts of cash and reduces the requirement for merchants to retain cash on business premises thereby reducing security risks.

An EFT terminal typically consists of a single device or a group of devices that enable EFT transactions. Such devices may include a PINpad (personal identification number pad) for data entry and will usually include a consumer identification facility such as a card or chip reader.

EFT terminals are simple to operate, typically involving reading of a magnetic strip or chip credit, debit or similar card through a card reader on the EFT terminal, selection of the account from which funds are to be withdrawn and entry of a PIN via a PINpad for authorisation purposes. The merchant and customer receive notification of receipt of the transaction request and approval or denial thereof at the point of sale. All EFT transactions are detailed on the subsequent account statement.

EFT terminals communicate electronic transaction data to transaction processing entities in real time using various EFT networks. Currently available EFT networks in Australia include Transend Leased Line, Argent Dial Up, W:\SASKIA'Patent SpeckOuet.doc Argent Leased Line, Transact Dial Up, and in New Zealand TTS Leased Line and TTS Dial Up. EFT terminals communicate electronic transaction data via one of the above means to a transaction processing entity connected to the Austpac network (X.25) using the AS2805 protocol. This reliance on dedicated networks increases the costs of EFTPOS to the merchant and ultimately the consumer. Dial up and leased line communications require installation and leasing of a dedicated line at significant expense. Typically, fixed per transaction costs are also payable to the service provider.

Larger merchants with a plurality of EFT terminals at the point of sale may opt to configure their EFT systems using a wide area network (WAN). In this case, the electronic transaction data is transmitted across the WAN to a central server that communicates with the transaction processing entity directly over the EFT network. This configuration eliminates the need for leased line or dial up connections to the transaction processing entity at each point of sale and enables the cost of a single dial up or leased line connection to be shared over multiple locations. The EFT transactions are channelled through the WAN to a transaction server and then transmitted to the transaction processing entity using a conventional means, such as leased line or The overall cost efficiency of EFT transactions could be improved if smaller merchants who currently use dial up or leased line connections with transaction processing entities could be included in larger network type arrangements. However, according to current practice this would require replacement of the dial up or leased line type EFT equipment currently located at the premises of merchants with EFT equipment which has more sophisticated communication capabilities. This is because dial up and leased line type EFT equipment generally uses specific modem type communications protocols, and do not support a wider range of computer networking protocols such as TCP/IP.

The discussion of the background to the invention included herein is included to explain the context of the invention. This is not to be taken as an admission that any of the material referred to were published, known or part of the common general knowledge as at the priority date of the claims.

W:\SASKIAMPaten Spec\Quest5 doc Summary of the Invention According to a first aspect of the invention, there is provided an adaptor for diverting electronic transaction data output from an electronic funds transfer terminal, and transmitting the data to a transaction processing entity across a network, the adaptor including: a connector for communicating data to and from the electronic funds transfer terminal; a connector for communicating data to and from a network transmission device that facilitates transmission of data across the network; and means for converting the electronic transaction data to a protocol that is adapted for communication across the network; wherein the adaptor effects communication between the electronic funds transfer terminal and the network transmission device, thereby permitting the transmission of data across a network that is incompatible with the electronic funds transfer terminal.

According to one arrangement, where the adaptor is used in conjunction with an EFT terminal which has an analogue modem-type output, the connector for receiving electronic transaction data from the electronic funds transfer terminal is a modem-type connector for insertion into a modem-type port on the electronic funds transfer terminal, and the adaptor has the ability to receive and respond to modem-type signals received from the electronic funds transfer terminal.

According to another arrangement, where the adaptor is used in conjunction with an EFT terminal which has a digital output, such as a serial or Ethernet output, the connector for receiving electronic transaction data from the electronic funds transfer terminal is a digital connector for insertion into a digital port on the electronic funds transfer terminal, and the adaptor has the ability to receive and respond to the appropriate digital signals received from the electronic funds transfer terminal.

According to another arrangement, where the adaptor is used in conjunction with an EFT terminal which has a digital-type output normally connected to an ISDN terminal adaptor, the connector for receiving electronic transaction data from the electronic funds transfer terminal is suitable for connecting to a digital signal output intended for an ISDN terminal adaptor.

W: SASKIAMPent The adaptor may encrypt the data which is transmitted across the network and decrypt data received from the network.

The electronic funds transfer terminal may be in the form of a conventional EFT terminal having a means for entry of the electronic transaction data such as a PINpad. The electronic transaction data may relate to a credit or debit transaction and is entered via the PINpad. The electronic transaction data is then communicated to an adaptor device in a standard EFT transaction protocol.

The network transmission device that facilitates transmission of data across the network may be a personal computer which is connected to a suitable network for transmitting electronic transaction data. Alternatively the adaptor could interface directly with a router, modem or hub which facilitates transmission of the electronic transaction data across the network via a digital interface such as Ethernet, serial, USB, etc.

The network is preferably a non-dedicated network suitable for transmitting electronic transaction data from the EFT terminal to a transaction processing entity for processing. The network is preferably a public network but may be a private wide area network. The network carrier technologies utilised can be varied and may be technologies such as X.25, ISDN, GPRS, ADSL, DSL, wireless LAN (802.11), frame relay, DDS, cable, etc. These network technologies may be utilised in a private network or public one such as the Internet. Most preferably, the network associated with the present invention is the Internet.

The means for converting the electronic transaction data to a protocol adapted for communication across a network is typically software. A protocol that may be suitable for transfer across a network in accordance with the present invention is TCP/IP. Such software may be included as firmware in the hardware part of the adaptor, or it may be loaded on the network transmission device, which may be a computer. In these arrangements, the software acts as a bridging means between the adaptor and the network. The software typically effects translation of the electronic transaction data to TCP/IP or any other protocol suitable for transmission across the network.

W:ASASKIAPatent The transaction processing entity may be any suitable financial institution such as a bank or any other entity capable of processing EFT transactions, such as an insurance or medical benefits agency.

The adaptor of the present invention enables compatibility between existing EFT terminals and readily accessible networks including the Internet.

This makes it possible to gain the benefit of lower transaction costs whilst relying on existing infrastructure, thereby reducing the cost of EFT transactions.

According to a second aspect of the invention, there is provided a method of facilitating transmission of electronic transaction data from an electronic funds transfer terminal to a transaction processing entity across a network, including the following steps: entry of the electronic transaction data into the electronic funds transfer terminal; communication of the electronic transaction data to an adaptor; translation of the electronic transaction data to a protocol suitable for communication across the network; transmission of the translated electronic transaction data across the network from a network transmission device to the transaction processing entity for processing; transmission of a response from the transaction processing entity across the network to the network transmission device; translation of the response to a protocol suitable for the electronic funds transfer terminal; and communication of the translated response from the adaptor to the electronic funds transfer terminal; thereby permitting the transmission of data across a network that is incompatible with the electronic funds transfer terminal.

The network may be any network suitable for transmitting electronic transaction data from the EFT terminal to a transaction processing entity for processing. The network carrier technologies utilised can be varied and may be technologies such as X.25, ISDN, GPRS, ADSL, DSL, wireless LAN (802.11), frame relay, DDS, cable, etc. These network technologies may be utilised in a private network or public one such as the Internet. Most preferably, the network associated with the present invention is the Internet.

W SASKIAXPatent SpecQuestS.doc 7 The electronic funds transfer terminal is preferably in the form of a conventional EFT terminal having a means for entry of the electronic transaction data such as a PINpad. The electronic transaction data may relate to a credit or debit transaction. In such an arrangement, the adaptor receives the electronic transaction data from the EFT terminal in a standard EFT transaction protocol.

The network transmission device is preferably a personal computer but may be any other suitable device which is connected to the Internet or other suitable network.

Translation of the electronic transaction data from a standard EFT protocol to a protocol adapted for communication across the network is typically effected by suitable software. In such an arrangement, the software is associated with the adaptor, either because it is available on the adaptor or because it is provided on the network transmission device which is connected to the adaptor. The software acts as a bridging means between the adaptor and the network.

An advantage of the method of the present invention is the ability to utilise a network for transmission of data even where the network is not compatible with the data entry device or EFT terminal. The ability to rely on nondedicated networks has the potential to significantly reduce the cost of EFT transactions.

In a preferred embodiment of the invention, the electronic transaction data is transmitted across the network to one or more central transaction servers which route the data to the transaction processing entity for processing.

Since transaction processing entities may not directly interface with the protocols which may be used on the network, the electronic data transmitted across the network may be transmitted via the central transaction server(s) which may forward the data to the transaction processing entity via any suitable means such as a conventional leased line connection. Furthermore, the central transaction server(s) route the transaction processing entity's response back to the point of sale through the network. Alternatively, if a transaction processing entity is able to interface directly with the network protocol, the electronic transaction data can be transmitted directly to the transaction processing entity.

The central transaction server(s) may decrypt data which has been encrypted WASASKIAatent SpecOQuest.doc 8 by the adaptor and may encrypt data which is to be transmitted across the network to be decrypted by the adaptor.

Brief Description of Drawings The invention will now be described in further detail by reference to the attached drawings illustrating example forms of the invention. It is to be understood that the particularity of the drawings does not supersede the generality of the preceding description of the invention. In the drawings: Figure 1 is a simplified schematic view of a method of transmitting electronic transaction data across a network in accordance with one embodiment of the present invention.

Figure 2 is a simple schematic view of a method of transmitting electronic transaction data across a network in accordance with another embodiment of the present invention.

Figure 3 is a simple schematic view of a method of transmitting electronic transaction data across a network in accordance with a further embodiment of the present invention.

Figure 4 is a simple schematic view of a method of transmitting electronic transaction data across a network in accordance with yet another embodiment of the present invention.

Figure 5 is a schematic view of a method of overcoming a potential problem associated with the embodiments shown in Figures 1 to 3.

Figure 6 is a flowchart illustrating how electronic data can be transmitted from an EFT terminal to a transaction processing entity via the Internet in accordance with an embodiment of the present invention.

Detailed Description of the Drawings Figure 1 is a simplified schematic view of the method of transmitting electronic transaction data from a EFT terminal 101 to a transaction processing entity 106 across a network 104 in accordance with an embodiment of the present invention. The method includes the steps of entry of the electronic transaction data into the EFT terminal 101; communication of the electronic transaction data to an adaptor 102; translation of the electronic transaction data to a protocol adapted for communication across the network 104; transmission W:\SASKIA\Patemnt of the electronic transaction data across the network 104 from a network transmission device to the transaction processing entity 106 for processing; transmission of a response from the transaction processing entity 106 across the network 104; translation of the response to a protocol suitable for the EFT terminal; and communication of the response from the adaptor 102 to the EFT terminal. The adaptor effects communication between the EFT terminal 101 and the network transmission device 104 thereby permitting the transmission of data across a network 104 that is incompatible with the EFT terminal 101.

Figure 1 also shows in dotted outline Dial-up or Leased Line 107, which is effectively replaced by the present invention. The signals sent and received by EFT terminal 101 are exactly the same as if EFT terminal 101 were communicating via the dial-up or leased line 107.

The electronic funds transfer terminal 101 is in the form of a conventional EFT terminal such as those used in conjunction with the EFT networks of the prior art. Electronic transaction data may be entered into the EFT terminal 101 via a PINpad in response to prompts on an associated display. Alternatively, an EFT terminal may be integrated with point of sale software operating on a cash register computer. In these instances, data entry and receipt printing occurs via a computer terminal.

The network transmission device 103 may be a personal computer which is connected to the Internet or other suitable network 104.

The electronic transaction data may relate to one or more credit or debit transactions. After entry, the electronic transaction data is communicated to an adaptor 102 in a standard EFT transaction protocol. This may be a modem-type protocol of the type used for sending transactions over a dial-up or leased line as illustrated in Figures 1 to 3, or a digital-type protocol suitable for use with an ISDN line as illustrated in Figure 4. The adaptor 102 includes a connection for receiving electronic transaction data from the EFT terminal 101; a connection to a network transmission device 103 (which is preferably a computer); and a means (preferably software on the computer) for converting the electronic transaction data to a protocol that is adapted for communication across the network 104. The adaptor 102 effects communication between the EFT terminal 101 and the network transmission device 103 thereby permitting the W:ASASKIAPatent Spec\OQuest.doc transmission of data across a network 104 that is incompatible with the EFT terminal 101.

The adaptor 102 facilitates communication between the EFT terminal 101 and the computer 103 that is connected to the network 104. The adaptor 102 is associated with software which essentially provides the means for protocol conversion, typically from a standard EFT transaction protocol to TCP/IP. The software is typically installed on the computer which interconnects the network with the EFT terminal via the adaptor.

The advantage of using the adaptor 102 to bridge communications between the EFT terminal 101 and the computer 103 is that the electronic transaction data may be transmitted across a network 104 which is not compatible with the EFT terminal 101. Therefore, the adaptor 102 enables the use of non-dedicated networks 104 for transmission of electronic transaction data, thereby offering the potential to significantly reduce the cost of EFT transactions.

The adaptor 102 can be designed so that it is suitable for use with existing EFT terminals that transmit data via any of the conventional EFT networks such as Dial Up networks or Leased Line networks.

The adaptor 102 connects at one end to the EFT communications port of the EFT terminal 101, and at the other end to a USB, Ethernet, serial or other suitable port of the personal computer 103. Software on personal computer 103 provides the interface between the adaptor 102 and the network 104. Most preferably the software converts the electronic transaction data to TCP/IP for transmission across the Internet 104. However, various other protocols may be considered appropriate in the case of alternative networks 104.

The network 104 is a non-dedicated network 104 suitable for transmitting electronic transaction data from the EFT terminal 101 to a transaction processing entity (usually a bank) 106 for processing. The network 104 is preferably a public network 104 but may be a private TCP/IP wide area network 104. Examples of other suitable networks include a satellite or mobile network (GPRS) or a wireless local area network (LAN). Most preferably, the network associated with the present invention is the Internet 104.

Since transaction processing entities 106 currently do not directly interface with the network protocol, according to a preferred embodiment of the W:\SASKIA\Paten SpecQuest5 doc 11 invention, the electronic transaction data is transmitted via one or more central transaction servers 105. The central transaction servers 105 forward the electronic transaction data to the transaction processing entity 106 via any suitable means such as for example a conventional leased line connection.

There would normally be multiple central transaction servers to cater for redundancy and load balancing on the line. The central transaction servers route the transaction processing entity's response back to the point of sale through the network.

Figure 2 is a simple schematic view of the method of transmitting electronic transaction data across a network in accordance with another embodiment of the present invention. The figure illustrates an alternative embodiment wherein the transaction processing entities 106 are able to interface directly with TCP/IP by any suitable means such that the electronic transaction data may be transmitted directly to the bank 106 over the Internet, thereby circumventing the requirement for central transaction servers 105.

Figure 3 is a simple schematic view of the method of transmitting electronic transaction data across a network in accordance with yet another embodiment of the present invention. In the embodiment illustrated in figure 3, the network transmission device is not a computer, but rather another suitable device connected to the Internet or other suitable network such as a router or hub. In this case the software for effecting the translation of the EFT protocol to TCP/IP may be associated with the adaptor such that the adaptor effects the protocol conversion and communicates the electronic transaction data to the router to be transmitted via the Internet. Instead of having a separate router, the routing function may be incorporated into the adaptor.

Figure 4 shows another embodiment, in which the method of the present invention effectively replaces an ISDN transmission path, rather than a dial-up or leased line transmission path. In this arrangement, an EFT terminal (101) is configured to use an ISDN line in conjunction with a Terminal Adaptor 108.

Further, in the system used for illustration purposes, the EFT terminal 101 is integrated with a computer 103. The adaptor 102 of the present invention is used to redirect the output of the computer/EFT terminal (usually taken from a serial RS232 port) which is ordinarily connected to the Terminal Adaptor 108 back into the computer via a USB port, Ethernet port, serial port or any other W:\SASKIAPatent SpecQuestS.doc 12 suitable port such as another serial port. Thus, instead of sending the data over the ISDN line, the data is recaptured by the computer, converted to a protocol suitable for Internet transmission, and sent over the Internet 104 to Central Transaction Servers 105. As an alternative to this arrangement, EFT terminal 101 may be separate from computer 103, so that the data is captured by a separate computer, rather than the same one.

Figure 5 illustrates a solution to a problem which may arise when the present invention is used with EFT terminals configured as dial-up terminals.

Terminal Management Systems (TMS) provide for remote management of EFT terminals including maintenance and upgrade of operating configurations.

Many EFT networks are associated with a central TMS which is separate from the transaction processing entity.

Where EFT terminals are configured to communicate electronic transaction data via a leased line connection to a transaction processing entity connected to the Austpac network the TMS 109 operates transparently across the same network. An individual EFT terminal 101 can communicate with TMS 109 over the leased line without altering the physical configuration.

However, where an EFT terminal is configured as a dial up terminal, it dials one number to send an EFT transaction to the transaction processing entity 106, and a different number to communicated with the TMS 110. The TMS 110 is connected to a bank of modems 111 through which communications with dialup EFT terminal 101 are conducted. However, when the output of EFT terminal 101 is intercepted in accordance with the present invention and diverted through the Internet 104, special provision may need to be made to ensure that communications intended for the TMS 110 actually reach their intended destination.

One solution to this problem involves reconfiguring the dial-up terminal 101 as a leased line terminal. Communications to and from the leased line TMS 109 can simply be filtered out and directed in the correct direction by Central Transaction Servers 105. Another solution as illustrated in Figure 5 involves interrupting the digital communications between TMS 110 and TMS modem bank 111, and linking those interrupted communications through to the Central Transaction Servers 105, possibly through a protocol-converting device or computer 112. Thus when EFT Terminal 101 attempts to dial the appropriate W:\SASKIA'Patent number for communication with TMS 110, the communication is diverted by adaptor 102, converted to a suitable protocol for network transmission, transmitted to Central Transaction Servers 105, converted to a protocol suitable for TMS110 by protocol converter 112, and transmitted to TMS 110. Responses are returned to EFT terminal 101 via the same route.

Figure 6 is a flowchart illustrating how electronic data can be transmitted from an EFT terminal 201 to a transaction processing entity 209 via the Internet in accordance with a preferred embodiment of the present invention. The electronic transaction data is entered via that EFT terminal 201. The adaptor 203 receives the electronic transaction data via EFT communications port of the EFT terminal 201. Conversion of the electronic transaction data from a standard EFT protocol to TCP/IP is normally partly done by the adaptor 203 and partly done by the computer 204. The computer 204 has a connection to the Internet.

The electronic transaction data is transmitted across the Internet 205 to central transaction servers 206. The central transaction servers 206 route the electronic transaction data to the transaction processing entity 209 for processing and transmits the data via a conventional leased line connection. The transaction processing entity receives the transaction request which is subsequently processed and authorised. Confirmation of approval and/or receipt is routed back to the EFT terminal 201.

A particular advantage of the methods described is that installation of the adaptor permits existing EFT terminals to be used to transmit electronic transaction data over the Internet although the EFT terminals are not ordinarily compatible therewith. The adaptor can utilise an existing network infrastructure, or may in some instances justify the installation of a wide area network infrastructure. The ability to utilise the Internet to transmit EFT data from the point of sale to the transaction processing entity will significantly decrease the cost of EFT transactions since the cost associated with the need to install dedicated EFT networks will be negated, as will the cost associated with dial-up charges and network usage charges.

It is to be understood that various additions, alterations and/or modifications may be made to the parts previously described without departing from the ambit of the invention.

W:\SASKIAMPatent SpecOuestS.doc

Claims (4)

1. An adaptor for diverting electronic transaction data output from an electronic funds transfer terminal, and transmitting the data to a transaction processing entity across a network, the adaptor including: a connector for communicating data to and from the electronic funds transfer terminal; a connector for communicating data to and from a network transmission device that facilitates transmission of data across the network; and means for converting the electronic transaction data to a protocol that is adapted for communication across the network; wherein the adaptor effects communication between the electronic funds transfer terminal and the network transmission device, thereby permitting the transmission of data across a network that is incompatible with the electronic funds transfer terminal.

2. An adaptor according to claim 1 wherein the connector for receiving electronic transaction data from the electronic funds transfer terminal is a modem-type connector for insertion into a modem-type port on the electronic funds transfer terminal, and the adaptor has the ability to receive and respond to modem-type signals received from the electronic funds transfer terminal.

3. An adaptor according to claim 1 wherein the connector for receiving electronic transaction data from the electronic funds transfer terminal is suitable for connecting to a digital signal output intended for an ISDN terminal adaptor.

4. A method of facilitating transmission of electronic transaction data from an electronic funds transfer terminal to a transaction processing entity across a network, including the following steps: entry of the electronic transaction data into the electronic funds transfer terminal; communication of the electronic transaction data to an adaptor; translation of the electronic transaction data to a protocol suitable for communication across the network; W: SASKIAPatent transmission of the translated electronic transaction data across the network from a network transmission device to the transaction processing entity for processing; transmission of a response from the transaction processing entity across the network to the network transmission device; translation of the response to a protocol suitable for the electronic funds transfer terminal; and communication of the translated response from the adaptor to the electronic funds transfer terminal; thereby permitting the transmission of data across a network that is incompatible with the electronic funds transfer terminal. A method of facilitating transmission of electronic transaction data from an electronic funds transfer terminal to a transaction processing entity across a network according to claim 4, wherein the electronic transaction data is transmitted across the network to one or more central transaction servers which route the data to the transaction processing entity for processing. Dated: 11 September 2003 Phillips Ormonde Fitzpatrick Patent Attorneys for: Wilby Craft Pty Ltd W:\SASKIA Patent