SG195430A1 - A network-based order and payment processing system - Google Patents

Abstract

A Network-Based Order and Payment Processing SystemTo overcome the problem of small retail facility owners in accessing credit to sustain their business operations, a network-based sales transaction system is5 provided. The network-based sales transaction system employs an order and payment processing server which provides "on-demand" loan availment for purchasing customers who are able to transmit their credit accounts with a financial processing unit using their mobile communication devices, performs stock ordering using a virtual point of sale application maintained by an order10 releasing terminal associated with a merchant, and facilitates electronic payment settlement among the involved parties.Figure 1

Description

A Network-Based Order and Payment Processing System

TECHNI CAL FI ELD

The present invention generally relates to electronic financial transactions and, more particularly, to a network-based sales transaction system having an order and payment processing server that can provide mobile-based service for on-demand loan availment procedure, real-time stock ordering, and electronic payment settlement in one electronic communication network.

DESCRIPTION OF THE PRIOR ART

It has long been the accepted practice in the credit industry to issue credit lines or credit accounts to people or customers. The normal form of credit accounts is complemented by card processing technology and a majority of merchants and retailers are capable of accepting payment by means of processing a credit card via a card reader terminal. Credit accounts are an exemplary financial tool that may be adapted with modern forms of electronic data exchange. There is now the mobile credit account processing technology which can be utilized for making payments. The wireless credit account processing technology is a powerful tool that is used in the retail industry.

But it has not been realized that the same technology could be designed to help small retail businesses, particularly those who struggle daily to meet inventory demands with very limited capital. Entrepreneurs in the developing nations attempt to manage and run small retail stores as source of their livelihood. In many cases, small store owners are forced to stop operations temporarily due to insufficient capital. The conventional business loans from traditional sources such as banks require lengthy and tedious processes, and in most cases commercial banks still do not deem these small scale owners as credit worthy at the end. This limited access to credit causes them to lose control of their supply chains, their inventories, their orders, and, ultimately, their customers and profits. But with the use of the mobile credit account processing application, the owners of retail stores should be able to make payments for inventory stock remotely.

Irek Singer, Gaby Baghdadi and Andrzej Rok, in their U.S. Patent No. 7014107 filed on 20 July 2004 and granted on 21 March 2006, disclose a wireless payment processing system for credit and debit accounts that are associated with financial institutions. This wireless payment processing system provides a real- time verification of credit account information and a real-time authorization process. It is evident in the prior art that credit and debit accounts can be processed wirelessly through the use of the mobile devices and appropriate data exchange technology.

Furthermore, Jerry Chang, Matthew Chiang and David Holmes-Kinsella, in their U.S. Patent No. 7941368 filed on 08 May 2001 and granted on 10 May 2011, disclose an electronic transaction settlement by which a customer sends a purchase request identifier and an account identifier for processing of payment to a merchant, and said account identifier is then transmitted from the merchant to a settlement house through the use of a mobile communication device. The settlement house is then left with the responsibility to arrange payment methods with the customer through a mobile communication device and to facilitate settlement of payment between the financial accounts of the customer the merchant. While the system of such electronic transaction settlement can be made suitable for sustaining the daily needs of small retail store owners, it does not address common security concerns associated with financial transaction as it requires communication between the customer and the merchant. Thus, there is still a need for such electronic transaction system to adopt a payment service integrator whose function is to ensure that the merchant is protected against possible fraud or irregularities that may take place whenever the payment security is breached by any of the involved parties. There is also a need to provide a high level of protection for the customers in terms of protecting their financial account information.

Likewise, Rod Stambaugh, in his U.S. Patent No. 7657489 filed on 18

January 2007 and granted on 02 February 2010, discloses several systems and a method for secure wireless payment transactions. Stambaugh makes use of a “payment authority” that is configured to accomplish several functions such as: authenticating the user via a transaction code and a mobile device identifier, authenticating a transaction using a digital certificate, and receiving a transaction code from a merchant to check if an account associated with a customer has sufficient funds available to cover the transaction amount. It appears that such payment authority is configured to set up and maintain user accounts for use in secure wireless payment transactions and is responsible for authenticating and approving user transactions. In the payment processing system of Stambaugh, the customer has the responsibility to provide the transaction code, which contains the payment data related to credit or debit accounts, to the merchant.

With such system, the transaction code is not protected from accidental, deliberate, or malicious modification during transmission from the payment authority to the customer. The payment authority of Stambaugh, although it can be used to provide a reliable financial transaction among the involved parties, is not designed to eliminate the communication between the customer and the merchant. There is still a need for an order and payment service integrator that will provide a single platform for completing a financial transaction in an electronic commerce without enabling communication between the customer and merchant which, in turn, may reduce the risk of errors and fraud in processing information.

Douglas Hurst, in his U.S. Patent Application No. 2009/0063312 filed on 27

August 2008 and published on 05 March 2009, discloses a method and system for processing secure wireless payment transactions and for providing a virtual terminal for merchant processing of such transactions. Hurst further discloses a system where the “payment gateway” receives an account code and a transaction amount from the customer's mobile phone, and the account code is associated with a specific financial account of the customer. The “payment gateway” then authorizes the transaction by determining if the transaction amount is within the limit. If so, an authorization code is transmitted to the customer's mobile phone. But if the transaction amount is greater than the financial account's balance or available credit, the payment gateway transmits a “transaction declined” message to the customer's mobile phone. Hurst does not disclose a system where the customer is supposed to send his purchase request identifier to the “payment gateway.” The customer still places the order from the payment gateway-enabled merchant.

The prior art references generally describe a network based sales system in which the customer may send a purchase request identifier through a payment gateway, and the same payment gateway is configured to arrange for settlement, whether it be through a prepaid or credit facility. While many attempts have been made to provide a network based sales system for processing payment transactions, none have provided a mobile based service for facilitating on-demand loan availment, stock ordering, and payment settlement in one electronic and network-based platform.

SUMMARY OF THE I NVENTI ON

The problem of small retail owners in accessing credit to sustain their business operations is addressed by the present invention. It provides a network-based sales transaction system that can be implemented via an electronic communication network. The network-based sales transaction system is a single electronic communication platform which provides on-demand loan availment, stock ordering, and electronic payment settlement. The network- based sales transaction system has at least one communication transceiver device, at least one order and payment processing server, at least one financial processing unit, and at least one order releasing terminal, all of which are interconnected in a computer network.

The transactions utilizing the system may be performed though a text message (SMS) or through an interactive voice response system (IVRS).

In a preferred embodiment, the network-based sales transaction system is implemented in an electronic communication network in which the communication transceiver device is configured to transmit a purchase request identifier to the order and payment processing server. The order and payment processing server is configured to receive the purchase request identifier from the communication transceiver device causing an inventory verification message to be sent to the order releasing terminal that comprises a pre-programmed point—of—sale (POS) application and causing a purchase order identifier to be generated and transmitted to the communication transceiver device if the inventory is sufficient. The communication transceiver device is further configured to transmit a financial account identifier that is pre-arranged to pay for the product associated with the purchase order identifier. The order and payment processing server is further configured to receive the financial account identifier from the communication device and to verify the availability of funds associated with the financial account identifier. The financial processing unit authorizes the financial transaction and causes a successful loan notification message to be sent to the communication transceiver device and to the order releasing terminal. The order and payment processing server is further configured to facilitate clearing and settlement process involving the financial account identifier, causing the order releasing terminal to receive monetary fund associated with the financial account identifier.

It is therefore the primary object of the present invention to provide a solution to the problem of small retail facility owners in accessing credit to sustain their business operations by providing a network-based sales transaction system having a payment service integrator which operates the order and payment processing server to provide “on-demand” loan availment using the financial processing unit, to perform real-time stock ordering using the virtual point of sale terminal of the order releasing terminal, and to facilitate electronic payment settlement among the involved parties.

Another object of the present invention is to provide a network-based sales transaction system having a communication transceiver device operated by a customer or an owner of a retail facility whose purpose is to apply for a credit line from the financial institution which manages credit or debit limits associated with the financial account, and to submit the required documents to the financial institution for the financial accounts.

Another object of the present invention is to provide a network-based sales transaction system having an order and payment processing server operated by payment service integrator whose duty is to create an issuing partner, i.e, through debit or credit facility, to generate merchant partners from local and international business communities, and to provide customer support for the customers and for the merchants of goods and services.

Another object of the present invention is to provide a network-based sales transaction system having a financial processing unit operated by a financial institution whose duty is to accept credit line application from the customer or owner of retail facility, to issue such customer a loan account, to set up an electronic credit line, and to monitor and follow all the regulatory requirements on financial transactions.

Another object of the present invention is to provide a network-based sales transaction system having an order releasing terminal operated by a merchant or seller whose functions are to maintain its virtual point-of-sale (POS) application by uploading into it the order identifier such as product codes, and inventory, to accept or decline orders, and to facilitate delivery of goods to the customer or the owner of the retail facility.

Further, the present invention intends to provide solutions to the needs of the small retail facility owners in expanding the range of goods that they want to offer for sale, improving their business operations, and maintaining a standard level of stock by means of using an order and payment processing server operated by payment service integrator that can facilitate arrangement of accessible loans from the financial institutions, small repayments to the financial institutions, minimal or no collateral loan terms, immediate loan availment procedures which require little sophistication for the customers to follow.

BRI EF DESCRI PTI ON OF THE DRAWING

The features of the present invention are set forth in the appended claims.

The structure of the present invention is further elaborated upon in the detailed descriptions in relation to the drawings, as follows:

FIG. 1 is a block diagram of a network-based sales transaction system operating in an electronic communication network in accordance with the present invention.

FIG. 2 is a block diagram of a preferred embodiment of the present invention wherein an order and payment service integrator is positioned to communicate information and process sales transactions between the customer, the financial institution, and the merchant.

FIG. 3 is a flowchart diagram illustrating the operation of the network- based sales transaction system in a preferred embodiment in which the loan availment, stock ordering, and payment settlement are integrated in one electronic communication network.

SPECI FI CATION

Exemplary embodiments are now described in full detail with accompanying references to the figures, with like reference numerals refer to like components throughout. The terminology in the description should not be interpreted as limitations or restrictions simply because they are used in conjunction with certain embodiments.

Referring to FIG. 1, there is shown a block diagram of a network-based sales transaction system operating in an electronic communication network in which the present invention may be applied. lllustrated is a sales transaction system which operates in an electronic network 100 and comprises a communication transceiver device 120, an order and payment processing server 140, a financial processing unit 160, and an order releasing terminal 180, wherein the flow of information among the parties involved in the financial transaction occurs along a computer network 100. The computer network 100 can be facilitated through the use of modern technologies associated with transmission control protocol (TCP) and internet protocol (IP) networks. These networks are known to provide efficient and fast routing of data packets across several communication boundaries, wherein the data packet can come in different forms of electronic assemblies over a digital network. The specific communication platform between the communication transceiver device 120 and the order and payment processing server 140 may be either in form of text messaging or short message service (SMS) or in the form of interactive voice response system (I1VRS). SMS is a technology commonly used in cellular phones where a string of computer readable characters may be sent from one communication device to another. IVRS is a known communication system that utilizes another computer readable medium designed to automatically answer phone calls using a set of pre-recorded voice prompts and selection menus that respond to the input of the caller on another line. IVRS is a technology that can be used to complete an entire transaction even without the use of a human operator. It can further be used to redirect calls to concerned units automatically.

Although SMS and IVRS are deemed the most appropriate technologies to provide a communication between the communication transceiver device 120 and the order and payment processing server 140, it will also become apparent to the person skilled in the art to make use of other forms of communication systems utilizing other known technologies. For example, it may become evident for a person skilled in the art of communication devices to make use of electronic mail, fax, instant messaging (chat lines), video conferencing, teleconferencing, news groups, multimedia channels, or even social networking sites to initiate the communication process in the present invention.

In FIG. 1, the present invention provides the communication transceiver device 120 operated by a user or a customer, referenced as U, who desires to purchase a product through the order and payment processing server 140. In a preferred embodiment, the communication transceiver device 120 is a mobile phone or a cellular phone that can be used to transmit an SMS. The financial processing unit 160 employs computer readable program designed to provide financial services such as account inquiry, creation, approval of loan, collections, deposit, and withdrawal through the use of data communication processes working within a digital storage medium. The order releasing terminal 180 also employs computer readable program and is structured to provide means for storing purchase a request identifier and correlating the same to the virtual point-of-sale (POS) application (P) having an online inventory management and stock ordering system. This order releasing terminal (180) is further structured to perform an order placement function having means to create a purchase order, process a purchase order based on a purchase request identifier, and generate acknowledgement receipts, such as those in the form of SMS notifications serving as proof of order, or any document that can be used as proof of payment. The order releasing terminal 180 utilizes a remote activating device that can accept and process credit line information in a wireless manner instead of the traditional swiping method of credit cards or debit cards. This virtual POS terminal (P) may come in a software package hosted in a remote server that is easy to implement, easy-to-use, and can provide a secure and low cost solution for processing stock ordering and settlement of payment involving credit debit accounts. With the installation of the appropriate software package operating in a web-based system and portal, any internet connected computer terminal may turn into a remote activating device which can be electronically arranged to accept credit or debit payments and to process transactions from almost everywhere.

In a preferred embodiment of the present invention, the virtual POS (P) is configured to provide a global gateway processing terminal which can be operated with multiple computer terminals. As such, the order releasing terminal

(180) may share access to the virtual POS (P) with the order and payment processing server (140). It can also be characterized that equal privileges may be established and preserved between the order releasing terminal (180) and the order and payment processing server (140). As a result, the order and payment processing server (140) may then be used to access the virtual POS (P) and, consequently, locate the inventories and process the order of the customer in accordance with the purchase request identifier thereof.

The order and payment processing server (140) is configured to obtain different kinds of information from the order releasing terminal (180) in order to arrange a web document. The primary function of the order and payment processing server (140) is to integrate an SMS or I VRS based service to facilitate on-demand loan availment procedure, real-time stock ordering, and electronic payment settlement in one single platform. In other words, the order and payment processing server (140) is a complete network-based order and payment system that is operated in a closed loop mobile acquiring facility and is performed by means of SMS or by IVRS transactions. For the credit charging, the customer (U) is issued a credit line following the approval of an account by a credit issuing facility such as a bank, or other organizations. The customer (U) is pre-registered with the credit issuing facility and is conferred a credit line to which monetary payments can be charged. The credit line may be represented either as a card account which makes use of a physical card or a digital account which utilizes electronic transactions. Through the use of such credit account with a pre-established credit limit, the customer is able to deal with several purchases from a merchant facility who accepts credit line payments.

For simplicity and ease of providing a detailed description of the present invention, the embodiments that follow uses a credit line as an example of a payment processing system in which the use of the network-based sales transaction system as described herein may be applicable. Thus, persons with ordinary skill in the art should understand that the other elements that are involved in a network-based payment system such as credit verification, credit authorization, credit issuance, settlement and clearing may be used within the scope of herein disclosure.

Referring now to FIG. 2, there is shown a block diagram of the network- based sales transaction system arranged to illustrate that, in the network-based sales transaction system 100, as shown in FI G. 1, the function of the order and payment processing server 140, as shown in FIG. 1, can be utilized by the customer 220 to use a credit or debit account associated with a financial institution 240 for ordering products from the merchant 260 using a credit line or a credit account. In such sales transaction system, the customer 220 who wants to purchase a product or a range of products may use his communication transceiver device 120, as shown in FIG. 1, to send a purchase request identifier to the order and payment processing server 140. The purchase request identifier includes a request keyword, a merchant code, a product code, a pre- enrolled personal identification number, and a quantity of the product sought to be ordered from the merchant 260 through the order and payment service integrator 200. Consequently, the order and payment service integrator 200 operating the order and payment processing server 140 may access a pre- programmed point-of-sale (POS) application, references as P in FIG. 1, that can be maintained by the merchant 260 through its order releasing terminal 180, as shown in FIG. 1. Along with this sequence, an inventory verification message is sent to the order releasing terminal 180 to check if there is a sufficient inventory to approve the purchase request identifier. Once the order and payment processing integrator 200 has verified the sufficiency of stock in an automatic or manual manner, it will cause the POS application (P) to generate a purchase order identifier. This identifier may come in the form of a PIN or code which comprises a string of alphanumeric characters designed to be transmitted back to the customer's communication transceiver device 120 through the order and payment processing server 140. The purchase order identifier may include, but not limited to, a merchant code, a product code, and a quantity of the product.

Still in FIG. 2, the communication transceiver device 120, as shown in

FIG. 1. receives the purchase order identifier. If the customer agrees to the specification of the purchase order identifier, customer may reply back with his preferred financial account identifier through his mobile device. This financial account identifier is preferably a credit line from a micro-financial institution.

Preferably, the financial account identifier may include, but is not limited to, a payment code, a mobile PIN number and a merchant code. When the order and payment service integrator 200 receives the financial account identifier from the customer 220, it will trigger the computer system of the order and payment processing server 140 to verify the sufficiency of funds associated thereto. In this operation, the order and payment service integrator 200 has the option to contact the financial institution 240 through a telephone communication line to verify the sufficiency of funds. Other forms of communication devices can also be organized such as email, fax, and data. However, it is preferable that the order and payment processing server 140 and the financial processing unit 160 is linked together to perform a point-to-point verification process in an automatic fashion. In the event that the fund associated with the financial account identifier is insufficient, the order and payment service integrator 200 is configured to send a notice of insufficiency of funds to the customer 220 and to terminate the entire transaction. On the other hand, if the fund associated with the financial account identifier is sufficient to cover the amount as required by the purchase order identifier, the financial institution 240, through a pre defined instruction in the application, will allow the order and payment service integrator 200 to generate an authentication message and a sales transaction identifier, then subsequently send the same to the customer 220 and the merchant 260. In which case, it is preferable that the sending process is done simultaneously so that the merchant is able to respond without any delay. Accordingly, the order releasing terminal may then release a notification to the merchant 260 that the transaction is completed. Subsequently, the merchant 260 will deliver the ordered products to the customer 220. It is preferable that the order products are delivered to the customer 220 together with the purchase receipts or any document which may serve as proof of payment. The order and payment service integrator 200 may then start to facilitate settlement of funds between the financial accounts of the financial institution 240 and the merchant 260. In a typical financial arrangement, the order and payment service integrator 200 may deal with a settlement agency (not illustrated) for the settlement of funds for said financial accounts.

Referring now to FIG. 3, there is shown a flowchart diagram illustrating the operation of a preferred embodiment in which the loan availment, stock ordering, and payment settlement are integrated in one electronic communication network. Upon the willingness of the customer 220 to buy a product, as previously depicted in FIG. 2, a suitable operation could be implemented by tangible means and result in tangible effect when taken in conjunction with the network-based sales transaction system of the present invention. The teaching of this operation in a preferred embodiment of the present invention is carried out in such manner that it can be utilized by an owner of a retail facility, taking full advantages of the network-based sales transaction system associated thereto.

In block 310 of FIG. 3, the first step of the network-based sales transaction system is shown. In this step, the customer sends a purchase request identifier to the payment service integrator through a communication transceiver device, preferably a cellular phone which can be used to transmit SMS. SMS is deemed appropriate in the operation associated with the network-based sales transaction system of the present invention because there is now a mobile credit line processing technology which can process electronic information associated with the credit accounts or debit accounts. With this technology, the credit or debit account information can be entered into the cellular phone as text message which, in turn, can be transmitted to the order and payment processing server.

In this step, as depicted by block 310, the customer sends a purchase request identifier which may include, but not limited to, a request keyword, a merchant code, a product code, and a quantity of the product that the customer is willing to buy. The request keyword is a pre-arranged keyword that can be supplied by the order and payment processing server and can be used to direct the message to a unique location, provided that the cellular networks and carriers are aware of it. The merchant code works similar to the request keyword but is designed to serve as an identifier of the merchant supplier instead. The product code is, on the other hand, used to consistently identify a particular product. Lastly, the customer code or personal code is the pre-enrolled personal identification number that is embedded as a marketing partner ID number (MPIN).

In block 320 of FIG. 3, the second step in the flowchart diagram is shown to illustrate the operation through which the order and payment service integrator receives the purchase request identifier from the customer and checks the availability of the product based on the product code in the virtual point-of- sale (POS) application that is associated with the merchant. The virtual POS terminal is configured in such a manner that both the merchant and the order and payment service integrator can access it. While the merchant is held responsible for handling the inventory management, the order and payment service integrator is in charge of stock ordering, order placement, and order processing.

In block 330a of FIG. 3, the third step in the flowchart diagram is shown to illustrate the operation through which a purchase order identifier is generated by the order and payment service integrator and is sent to the cellular phone of the customer, provided that the stock is sufficient and is available for delivery from the merchant's order releasing terminal once the transaction has been finalized. Otherwise, and as shown in block 330b of FIG. 3, a notice of insufficiency of stocks is sent to customer by the order and payment service integrator and the entire transaction is terminated.

In block 340 of FIG. 3, the fourth step in the flowchart diagram is shown to illustrate the operation through which a financial account identifier is sent to the financial service integrator through the mobile communication device of the customer. The financial account identifier is arranged to pay for the product associated with the purchase order identifier and includes a payment code, a mobile PIN number and a merchant code, wherein the payment code is typically provided by the financial institution. Moreover, the financial account identifier is also associated with at least one of: a credit account, an escrow account, a digital cash account, checking account, savings account, a gift card account, a pre-paid account, a credit union account, a bank account, an investment account, a revolving credit card account, or a charge card account. The type of financial account identifier is dependent on the business arrangement of the customer and the financial account identifier.

In block 350 of FI G. 3, the fifth step in the flowchart diagram is shown to illustrate the operation through which a verification of the financial account identifier takes place. The order and payment service integrator may contact the financial institution, which is preferably a microfinance institution (MFI), to verify if the financial account identifier is associated with an account that is still active and contains enough funds.

In block 360a of FIG. 3, the sixth step in the flowchart diagram is shown to illustrate the operation through which an authentication message is generated by the order and payment service integrator. The generation of the authentication message is caused by the order and payment service integrator when the fund that is associated with the financial account identifier is sufficient.

Otherwise, and as shown in block 360b, the order and payment service integrator is prompted to send a notice of insufficiency of funds to the customer, and consequently terminate the entire transaction.

In block 370 of FIG. 3, the seventh step in the flowchart diagram is shown to illustrate the operation through which the order and payment service integrator accesses the virtual POS application and change the status of a pending order into an “approved order’. An “approved message” is then sent to the customer and to the merchant simultaneously by the order and payment service integrator. Since the virtual POS terminal is preferably configured to provide simultaneous access to the order and payment service integrator and to the merchant, the latter may simply receive a notification message which contains the approval of the order by the former. On the other hand, the order and payment service integrator can send the “approved message” to the mobile device of the customer through SMS.

In block 380 of FIG. 3, the eighth step in the flowchart diagram is shown to illustrate the operation through which the ordered goods or products are delivered to the customer by the merchant. As soon as the merchant receives the notification that the order is approved through the virtual POS application, the delivery can be immediately arranged. In such delivery, all the relevant documents can also be forwarded to the customer. Some of these documents are the proof of payment, statement of account, billing information, and the like.

In block 390 of FIG. 3, the ninth and final step in the flowchart diagram is shown to illustrate the operation through which the settlement of funds between the accounts of the customer and of the merchant is facilitated by the order and payment service integrator. In this step, the order and payment service integrator can establish a communication with the payment settlement agency.

ADVANTAGES

The present invention is particularly useful for owners of small retail stores and for merchants who offer different kinds of products for sale.

Small retail store owners can limit their opportunity loss because the present invention provides an efficient system for sending a purchase request, placing purchase orders, processing payment, and, ultimately receiving paid products. Commonly, the owner of such retail facilities has to physically leave his store to acquire products. But in the present network based sales transaction system, an order may be placed instead via SMS and depending on the geographical distance between the location of the merchant and retail store owner, delivery of goods may be arranged through a delivery courier or by pick up, whichever is more convenient. This is done without the need for the retail owner to ever leave his store.

In addition, with the mode of operation of the present network-based sales transaction system, the retail facility owner may be provided with an accessible credit line for product acquisition, the payment for which may be arranged is small repayments without any collateral and stringent requirements.

Furthermore, retail store owners are also provided with high level of protection for their financial account information. This is supported by the implementation of the order and payment processing server which is configured to eliminate the communication between the customer and the merchant.

On the part of the merchant, there are also several advantages that can be obtained through the implementation of the network-based sales transaction system of the present invention. Primarily, the merchant is freed from possible attempts of fraud or irregularities whenever the payment security is breached by any of the involved parties in the entire sales transaction system. Secondly, the merchant may also reduce potential losses due to encroachment since the customer does not receive the products unless the entire payment processing is successfully validated. Thirdly, the merchant is able to remove the risk of handling cash as the payment involved in the entire system of the present invention is purely electronic, and said system is designed to acquire the payment from the customer’s financial account and deposit the same directly to the financial account of the merchant. Therefore in totality, the risk on financial matters is completely eliminated by the system of the present invention.

As an additional advantage, the present invention may also be adapted to reduce the participation of the merchant in the order and processing system. The present invention only allows the merchant to determine the product availability and to arrange the delivery of the ordered products to the customers. All the order processing and payment processing procedures are done by another party.

In light of this, the merchant is free of any paperwork and time-consuming procedures in the entire sales processing system. Merchants can have more time in developing business models and improving their business operations. As such, merchants should have more time in engaging with client mapping for business development and with client loyalty management for marketing purposes.

It will be apparent to those skilled in the art that various modifications can be made to the network-based sales transaction system of the present invention which may still be deemed to be within the intent and scope thereof.

Claims (10)

1. A network-based sales transaction system, comprising: a) at least one communication transceiver device operated by a purchasing customer; b) an order and payment processing server operated by an order and payment service integrator; c) at least one financial processing unit operated by a financial institution; and d) at least one order releasing terminal operated by a merchant, characterized in that the communication transceiver device, the order and payment processing server, the financial processing unit, and the order releasing terminal being interconnected by a network; the communication transceiver device being configured to transmit a purchase request identifier to the order and payment processing server over the computer network; the order and payment processing server being configured to receive the purchase request identifier from the communication transceiver device, to cause an inventory verification message to be sent to the order releasing terminal that comprises a pre-programmed point—of—sale (POS) application, and to cause a purchase order identifier to be generated and transmitted to the communication transceiver device if the inventory is sufficient and to terminate the transaction if the inventory is insufficient; the communication transceiver device being further configured to transmit a financial account identifier to pay for the product associated with the purchase order identifier;

the order and payment processing server being further configured to receive the financial account identifier from the communication device, to verify the availability of funds associated with the financial account identifier from the financial processing unit, to cause the financial processing unit to authorize the financial transaction, to cause a successful loan notification message to be sent to the communication transceiver device and to the order releasing terminal; and the order and payment processing server being further configured to facilitate clearing and settlement process involving the financial account identifier, and to cause the order releasing terminal to receive monetary fund associated with the financial account identifier.

2. The network-based sales transaction system in claim 1 wherein said communication transceiver device is a mobile phone.

3. The network-based sales transaction system in claim 1 wherein said customer is a retail facility.

4. The network-based sales transaction system in claim 1 wherein said financial institution is associated with either one of: a bank, a credit card company, a micro-credit financial institution, a credit union, or a party pursuing credit-guarantee operations.

5. The network-based sales transaction system in claim 1 wherein the network uses a transmission control protocol (TCP) and an internet protocol (IP).

6. The network-based sales transaction system in claim 1 wherein the network is a local area network.

7. The network-based sales transaction system in claim 1 wherein the purchase request identifier includes a request keyword, a merchant code,

a product code, a quantity of the product, and marketing partner 1D number (MPIN).

8. The network-based sales transaction system in claim 1 wherein the purchase order identifier includes a merchant code, a customer code, a product code, a mobile reference number, and a verified quantity of the product.

9. The network-based sales transaction system in claim 1 wherein said financial account identifier includes, a payment code, a mobile PIN number and a merchant code.

10. The network-based sales transaction system in claim 1 wherein said financial account identifier is associated with at least one of: a credit account, an Escrow account, a digital cash account, checking account, savings account, a gift card account, a pre-paid account, a credit union account, a bank account, an investment account, a revolving credit card account or a charge card account.