NO311996B1 - Procedure and system for payment of goods and services over a computer network - Google Patents

Description

The present invention relates to a method for secure payment for goods and services over a computer network. More particularly, the invention relates to a method for such secure payment which does not depend on encryption algorithms or other forms of secure data communication.

With the ever-increasing spread of the Internet and the ever-growing range of goods and services offered over the Internet, there has been a need for payment systems that safeguard the security of both customers and suppliers of goods and services, but which are not too unwieldy at the same time or cumbersome to use that they make potential customers reluctant to use them.

The lack of good payment systems is probably the most important reason why trade over the Internet has not reached an even greater scale, and that a number of the suppliers who establish sales over the Internet are experiencing lower turnover than expected.

A number of different payment systems have been proposed that attempt to solve this. What most of them have in common is that they use some form of encryption for the transmission of payment information. The simplest systems are based only on such encryption, where the information that is transferred is traditional payment information such as, for example, a credit card number. More advanced systems are based on additional security in the form of features specific to computer-based payment systems. These often include advanced use of encryption algorithms in combination with some form of authorization service. This authorization service is often provided by a different company than the one or those that handle the payment service itself, which means that a large number of participants and complicated and not user-friendly encryption and authorization algorithms are involved. For an overview of different payment systems of this type, see IEEE Spectrum, Special Issue: Electronic Money, Vol. 34 No. 2, February 1997,

USA.

International patent application with publication number WO 98/14921 shows a system where an agent is the only one in possession of sensitive information, and who, after receiving confirmation from the customer, can charge the customer's account in favor of the seller. This system requires the customer to create a separate account with the agent, so that the agent can make payment for a product or service based on a received payment order that contains an identification of the customer. The customer then receives an authenticated payment confirmation from the agent. Based on this, a payment confirmation is transferred from the customer to the supplier, after which the supplier, preferably after having verified the payment confirmation he has received, delivers the goods or service to the customer.

US patent 4,750,119 shows a payment system with a built-in discount function. It is the discount function that is the main feature of this publication, but it exhibits some other features that are relevant. Here, a customer orders a product or service from a "trading center" that verifies the order and receipt of payment. In an execution, the trading center sends the payment and an instruction to pay the specified supplier to a third party. This third party is then responsible for payment to the supplier.

WO 97/19414 shows a system where a small account is created with electronic money that is handled by a third party, and where communication related to the account is sent in encrypted form over a computer network.

Common to the previously known systems is that a choice must be made between complexity and degree of security. It is an aim of the present invention to achieve a high degree of security when paying over a computer network such as the Internet without the system becoming unnecessarily complicated. This is achieved with the help of the features specified in the method in claim 1 and claim 12 respectively. A system for carrying out the method is specified in claim 2 and claim 13 respectively.

The present invention provides a secure payment system for use when trading goods and services over computer networks such as the Internet without the use of unnecessarily complicated encryption algorithms. In a preferred embodiment of the invention, it is also not necessary to install specialized software in the user's computer. Thus, the system can also be used by users who do not have the necessary knowledge to install such software. The system also does not require special hardware such as card readers.

Furthermore, the invention ensures that the supplier will receive his payment with certainty. The system according to the present invention will therefore be an acceptable alternative for suppliers who require payment to be available before delivery, which in turn ensures that unnecessary delay of the transaction is avoided.

The starting point for the present invention is a dedicated bank account that the customer has set up, preferably with their regular bank connection. On this account, at all times, only the amount the customer wishes to have available for payments using the system according to the present invention will be available. In this way, the uncertainty associated with credit cards is avoided when it comes to the extent of any losses.

Furthermore, any supplier who wishes to connect to this system will have an account with an agent who manages the system. This agent holds a power of attorney from the customer to transfer money from the customer's dedicated bank account to supplier accounts with the agent. When the customer places an order over the computer network, the agent will check whether there are sufficient funds in the customer's dedicated account to pay for the ordered goods or services. If so, the agent will arrange for the payment to be transferred from the customer's dedicated account to the supplier's account with the agent. However, the funds will not be released until the agent receives confirmation that goods and/or services have been delivered to the customer.

In an alternative embodiment, the funds remain in the customer's dedicated account until the agent has received said confirmation, but the amount available to the customer in the dedicated account is reduced by the amount that has already been traded for, but for which the payment has not been effected.

The invention will now be described in the form of exemplary embodiments with reference to the attached drawings. Figure la shows how a customer can create a dedicated account linked to the payment system according to the present invention. Figure 1b shows how the agent who administers the payment system according to the present invention links up with suppliers of goods and services. Figure 2 shows the transaction sequence in an embodiment of the present invention.

The following embodiment is based on a realization of the present invention in connection with trading over the Internet, where information is presented using so-called web pages. A person skilled in the field will, however, understand that the invention will be able to be realized with the help of other computer engineering methods and over other computer networks. The examples linked to this embodiment must therefore not be interpreted as restrictive.

Figure 1 shows a flow chart that indicates how a customer creates their account in the system. Using his own computer, the customer will be able to retrieve a registration form 101 from the agent who administers the system according to the invention. The customer can here enter information 102 required by the agent. This will typically include full name, address, e-mail address, indication of the bank where the customer wishes to open their dedicated account, as well as an irrevocable power of attorney for the agent. It will be natural that the indicated bank is a bank the customer already has a connection with, so that the transfer of money to the dedicated account can be done quickly and reasonably. Within the framework of the invention, it is nevertheless conceivable that the dedicated account is set up with another bank, or with the agent. After the information in the registration form has been transferred to the agent, the customer will be asked to enter a personal username and password 103. The customer enters this 104 and if all information is accepted 105 by the agent, a personal information page 106 will be generated for the customer. This page shows the status of the customer's account as well as information relating to the use of the payment system.

In a preferred embodiment of the invention, secured connections between customer and agent are used when the account is created, for example in the form of the encryption algorithms that are already built into the customer's browser.

After the creation of the account, the information page will of course state that the balance on the dedicated account is zero. To be able to use the account, the customer must ensure that money is transferred to the account. This can be done over the Internet, using an account phone, by visiting the bank or in any other way. The customer preferably only has the opportunity to deposit money into the dedicated account, and cannot withdraw money from it. If necessary, the customer may be given the opportunity to transfer money back to his own bank account, provided that there are no ongoing transactions involving his dedicated account. After money has been deposited into the account, information about this will be transferred from the bank to the agent so that an updated information page for the customer will indicate how much is in the dedicated account.

As shown in figure 1b, the agent who administers the payment system according to the invention will enter into agreements 111 with suppliers who wish to offer their goods and/or services over the relevant computer network, for example the Internet, and get paid using the payment system. A list 112 of such suppliers will preferably be available to the customer's computer from a central computer managed by the agent. Furthermore, the various suppliers will indicate, in connection with information they make available from their computers connected to the relevant data network, that they are linked to the relevant payment system and are authorized to receive payment using this 113. Such information can typically be in form of a logo on the supplier's website on the Internet.

Once the customer has created his or her dedicated account and transferred money to it, he or she is ready to make transactions. Figure 2 shows a typical course of such a transaction. The customer will be able to see on his local computer an offer for a product or service 201 from a supplier who is able to accept payment using a system according to the present invention. From his local computer, the customer selects goods and services using suitable data communication methods 202. In a preferred embodiment of the invention, the supplier will present his offer using a so-called web page, and the customer can then enter his order, for example by clicking on a "buy button" on this web page. After placing such an order, the customer will be asked to identify himself, preferably by entering his username and password 203. However, it will be possible to use other known methods for this identification, for example using a card reader connected to the customer's computer . After the customer has identified himself 204, the agent will check the status of the customer's dedicated account and check the balance against the amount in the purchase order 221. Steps 211 - 213 indicate how the customer prepares his account before use by transferring funds to his dedicated account.

If the agent finds that there is insufficient coverage on the customer's dedicated account 222, the agent will reject the order 231 and inform the customer that coverage is lacking. The customer will then be presented with the personal information page indicating the status of the dedicated account 233. If the agent finds that there is sufficient coverage on the account for the specified transaction, the customer will be asked to confirm the purchase 223. If the customer answers no to this confirmation 224, the transaction will be canceled 225. If, however, the customer confirms the purchase 224, the agent will transfer the amount from the customer's dedicated account to the supplier's account with the agent 226. In an alternative embodiment, the amount is not transferred immediately, but the information available to the customer about his account will show a balance that is reduced in relation to the actual balance by an amount corresponding to the transaction amount. After the agent has updated the customer's account and the information page about this account 232, the customer will be shown his updated account information 233. At the same time, the agent will send a confirmation to the supplier that the money has been transferred to the supplier's account with the agent 227, or, in the alternative embodiment, that the relevant amount is in the customer's account and is no longer available to the customer. When the supplier receives this confirmation 228, goods and/or services will be delivered to the customer and the supplier will send a request to the agent that the payment be released 229. When the agent receives confirmation that goods and/or services have been delivered, the agent will release the payment to the supplier 230.

In a preferred embodiment of the method according to the invention that has just been presented, these services are available over the Internet. All information will then be presented on so-called web pages that are generated using HTML (HyperText Markup Language). Communication will then take place using standard Interaett protocols such as TCP/IP and HTTP (HyperText Transfer Protocol). This will make it very easy to manage communication between the computers involved, preferably the customer's local computer, the agent's central computer and the central computers for the respective suppliers. To the extent that it is desirable, encryption algorithms that are built into the customer's browser and in the respective web server software used by the agent and suppliers can also be used. For example, the registration form discussed in connection with figure la could easily be presented using HTML. The subsequent communication between customer and agent will be able to take place in the usual way for such forms, if desired using encryption ("secure server"). The information the agent's computer receives can then be used to manage the customer's dedicated account at the specified bank and to generate a web page that shows the status of this account, as well as any other data for the customer's account, such as an overview of previous transactions.

Similarly, the various suppliers will be able to present their offers in the form of web pages. When a customer states that he wishes to place an order, the necessary information is sent to the agent's central computer, for example the identity of the supplier and the price of the product or service are transferred at the same time that the customer is asked to identify himself using a username and password. This can again be done using a regular HTML-generated form. The agent's central computer will then have enough information to be able to assess whether the customer has coverage on his dedicated account to be able to make the purchase order in question. If this is the case, a new web page will be generated by the agent's computer and presented to the buyer. Via this web page, the buyer will be able to confirm the purchase, for example by clicking on a button in the screenshot. When the agent's central computer receives this confirmation, it will be able to transfer the necessary funds from the customer's to the supplier's account and transfer a confirmation to the supplier. If the service in question is a computer service, it will be able to be delivered automatically from the supplier's central computer to the customer's local computer. Otherwise, the supplier's computer will indicate in another way that confirmation has been received from the agent, so that the ordered product and/or service can be delivered in another way.

In a preferred embodiment, the supplier receives delivery information from the agent. In this way, the customer will not identify himself to the delivery door, and the customer does not need to indicate where the service or item is to be delivered. This means increased security, since someone who unlawfully gains access to the system by entering a false identity will not be able to order a product or service delivered to him, only to the person who is the rightful owner of the account. If such a false order is nevertheless made, the account's rightful owner will be able to refuse to receive the service or item. The agent will then never receive any confirmation that the item or service has been delivered, and thus will not release any amount to the supplier either. The result is that the supplier must take back the item, or not perform the service, and that the amount is returned from the agent to the customer's dedicated account.

It will be understood that the greatest security is achieved if the present invention is used when paying for goods and services that can only be delivered to the customer in person, such as for example flights, goods that are delivered to the customer's address as stated with the agent, or other goods or services which is delivered directly to the customer.

If the system according to the present invention is used when paying for other goods or services, it may be necessary to combine it with additional security functions. A possible such function could be a digital certificate that is automatically stored on the customer's computer when the account is created. It will then only be possible to order goods and services from this computer, and someone who unlawfully wants to use someone else's account must then gain access to this computer. The storage of said certificate on the customer's computer will be possible without the customer needing to intervene, and requires no prior knowledge on the part of the customer.

Claims (21)

1. Procedure for payment of goods and/or services for transactions carried out over a computer network, where the a first account is created for a customer, as the customer is only authorized to transfer money to the account, while an agent is authorized to withdraw money from the account, a second account is created for a supplier of goods and/or services, where the customer, when he wishes to order a product or service, indicates this, and where the agent compares the price of the good or service with the balance on the customer's account, rejects the transaction if said balance is lower than said price, and possibly asks the customer to confirm the order if said balance is higher than said price, where the procedure is further characterized by the agent, possibly after the customer has confirmed the order, transfers an amount corresponding to the price of the good or service from the customer's account to the supplier's account, but without releasing said amount to the supplier, or at least makes said amount temporarily unavailable for further transactions, that the agent transfers a confirmation to the supplier that the payment has been made, that the supplier delivers goods or services to the customer and then sends a request to the agent that the payment be released, that the customer receives the product or service and that a confirmation is then sent to the agent that the product or service has been received, and that the agent, after receiving said confirmation, releases the payment to the supplier. 2. Payment system for payment of goods and/or services for transactions carried out over a computer network, where the system comprises one or more central computers of a first type where information is stored about offers for goods and/or services offered by one or more suppliers, as this information can be transferred over a computer network to a local computer used by a customer, where the local computer is arranged to be able to send information about an offer that a customer using the local computer wishes to order, over said computer network to a central computer of another type, and where the central computer of another type is arranged to compare the price of said offer with the balance of a dedicated account linked to the user of the local computer, to reject the transaction if said balance is lower than the price of said offer and, if necessary, to transmit a request for confirmation of the order to the local computer if the said balance is higher than the price of the said offer, characterized in that the central computer of another type is further arranged to secure the payment of the said goods or service by initiating a transfer of an amount corresponding to the said price on said offer from said dedicated account to an account belonging to the supplier behind said offer, possibly by blocking the amount on the customer's account, as well as stating that said amount is currently not available to said supplier, and that the central computer of another type is further arranged to transfer information that the payment is secured to a computer that is at the disposal of the said supplier of the said good or service, so that he can initiate the delivery of the said good or service, and that the central computer of another type is arranged to receive a confirmation that said customer has received said goods or service, in order to then indicate that said amount is now to be made available to the supplier. 3. Payment system according to claim 2, characterized in that the central computer of another type is further arranged to be able to generate a presentation of data linked to the customer's dedicated account and transfer this presentation over said computer network to the local computer used by the customer. 4. Payment system according to claim 2 or 3, characterized in that the central computer is arranged to be able to generate an overview of the central computers of the first type that present offers for goods and/or services and transfer this presentation over said computer network to the local computer used by the customer. 5. Payment system according to one of claims 2-4, characterized in that said central computer of another type is arranged to transfer a request for confirmation of the customer's identity to the local computer used by the customer and not to initiate the transfer of payment from the customer's dedicated account to the supplier's account before it has received such confirmation. 6. Payment system according to claim 5, characterized in that said request for confirmation of the customer's identity is a request for a username and password. 7. Payment system according to claim 5, characterized by the fact that a unique digital certificate is stored on the local computer and that the said request for confirmation of the customer's identity is a request to have this certificate transferred. 8. Payment system according to one of claims 2-7, characterized in that the central computer of another type is arranged to be able to transfer information over said computer network to a local computer about how a customer can create their own account, to receive information transferred from the local computer about a customer who wants to create their own account, and based on the information received to create an account for such a customer. 9. Payment system according to one of claims 2-8, characterized in that the aforementioned computers transmit information using known communication protocols, such as TCP/IP. 10. Payment system according to one of claims 2-9, characterized in that the central computers of the first and second type present information using HTML and that this information is transmitted using HTTP. 11. Payment system according to one of claims 2-10, characterized in that the local computer and the central computer of another type are arranged to be able to use encryption algorithms that are implemented in the standard software used by them to communicate over the aforementioned computer network. 12. Procedure for a payment system for goods and/or services for transactions carried out over a computer network, where an indication of a good or service that a supplier wishes to purchase is received from a customer, where the price of the specified product or service is compared with the balance on an account associated with the customer in question, with the transaction being rejected if said balance is lower than said price, and possibly asking the customer in question to confirm the order if said balance is higher than said price, characterized by the fact that, possibly after receiving confirmation from the customer if the latter has been asked to provide such confirmation, an amount corresponding to the price of the product or service is transferred from the customer's account to an account associated with the supplier of the product or service in question, the aforementioned amount is made unavailable to the supplier; or at least that said amount is blocked on the customer's account and thus made unavailable for further transactions, that a confirmation is sent to the aforementioned supplier that payment has been made, that a confirmation is received from the supplier that the goods or service has been delivered as well as a request for the payment to be released, that a confirmation is received from the customer that the product or service has been delivered, and that the payment is released by the relevant amount no longer being blocked on the supplier's account; possibly that the blocked amount on the customer's account is transferred to the supplier's account. 13. Device for a payment system for goods and/or services for transactions carried out over a computer network, comprising means for receiving an indication of a good or service that is desired to be purchased, means for comparing the price of said good or service with a balance of a specified first account, and means to reject the transaction if said price is higher than said balance, characterized by means to initiate the transfer of said amount from said account to an account belonging to the supplier of said goods or service - or to block said amount so that it is not available for further transactions - if said amount is lower than said balance, means to transmit information that the transfer or blocking of the said amount has been carried out, means to receive a request for the release of the said amount and confirmation that goods or services have been delivered, as well as means to initiate the release of the said amount after receiving such confirmation or - if the said amount was blocked on the said first account - to initiate the transfer of the amount to the said account belonging to the supplier of the said goods or service. 14. Device according to claim 13, characterized in that it further comprises means for generating and transmitting a presentation of data relating to said first account. 15. Device according to claim 13 or 14, characterized in that it further includes means to be able to generate and transfer an overview of computers connected to the computer network from which information can be obtained about goods or services that can be paid for using the payment system. 16. Device according to one of claims 13 to 15, characterized in that it further comprises means for generating and transmitting a request for authorization to use said first account. 17. Device according to claim 16, characterized by said authorization being in the form of a username and password, or in the form of a unique digital certificate. 18. Device according to one of claims 13 to 17, characterized in that it further comprises means for transferring information about how a new account of the same type as said first account can be created, means for receiving information that is necessary to create such an account, as well as means for creating such an account . 19. Device according to one of claims 13 to 18, characterized in that the means arranged to transmit or receive information are arranged to do this using known communication protocols such as TCP/IP. 20. Device according to one of claims 13 to 19, characterized in that the means arranged to transfer information transfer this information using HTML and HTTP. 21. Device according to one of claims 13 to 20, characterized in that it includes means for using standard encryption algorithms when transmitting and receiving information.