WO2008045007A2

WO2008045007A2 - The method for credit card and atm transaction by mobile device

Info

Publication number: WO2008045007A2
Application number: PCT/TR2007/000095
Authority: WO
Inventors: Sertac Bakioglu
Original assignee: Baknet Iletisim Ve Bilgisayar Urunleri Pazarlama Sanayi Ve Ticaret Anonim Sirketi
Priority date: 2006-10-10
Filing date: 2007-09-21
Publication date: 2008-04-17
Also published as: TR200605630A2; WO2008045007A3

Abstract

The invention is the method for carrying out the POS and ATM banking transactions with the mobile device, which method comprises such steps as upon the determination of the payment sum at the point of sale, the client's (1) listing from the server (3) the payment point (2) information where the payment is to be made with virtual POS capability, via wireless communication threads and preferably the wireless network (5), and confirming the same, following the receipt of confirmation from the client (1), the server's (3) carrying out the security check with the bank over the bank server (6) and obtaining the confirmation for the sum and transferring the electronic voucher and the payment details to the client (1).

Description

THE METHOD FOR CREDIT CARD AND ATM TRANSACTION BY MOBILE

DEVICE

Technical field The invention relates to the realization of the credit card transactions and also the banking transactions at ATM devices by means of the mobile device.

The invention relates particularly to the realization of the POS (point of sales) payment transactions by using a software loaded into the mobile device and a wireless connection channel and to the realization of banking transactions by means of remote access to banks' ATM devices.

Background of the Invention

At all the payment points including the physical POS devices, the wireless and secure payment infrastructure has been provided in virtual environment, to enable fast and secure payment. Sometimes the payment transactions in the shopping centers, restaurants or public consumption areas become hindering and leave negative impressions despite the aim of comfortable service of such places.

Especially, it is a tiresome and coercive situation for the consumers to perform their payments as they carry the material at the shopping centers, where the queues form to perform this transaction. In order to eliminate said disadvantages, various solutions are developed to reduce the crowding at the payment points and to enable the client to make the payment by performing the least possible number of transactions. Among the main solutions practiced is the connection via wireless access to the payment points to speed up the transactions. Below are some of such practices.

In the application no. Ep1566780A1 titled "mobile payment solution", the shopping by credit card is aimed, for which the security is provided by means of a computer serving as the gate and a total of three computers connected to each other to enable sales by credit card and a computer program. The realization of the sale transactions by means of information received from a credit card socket or a similar source and the confirmation of the mobile device and the relevant process steps and the operating system are disclosed.

In the application no. Wo03047208A1 titled "credit card payment by mobile phone", the method for transaction is provided for performing the transaction over Internet by means of a mobile device or a wireless communication device.

In the application no. WO2004012352A1 titled "mobile device equipped with a contactless smart card readerwriter", the payment via a card and the card reader is disclosed.

That the practices and the methods developed aim at enabling fast payment makes it necessary to provide additional apparatus and transactions. It is not possible to avoid extra cost to the client during the payment besides the sale transaction performed and to sufficiently minimize the time losses. There is not yet provided a practical method with a service structure to guide the consumer over mobile phones and mobile device, which are now a standard belonging for every consumer. It is the expected solution for use to enable faster and simpler transaction by means of a less costly conversion by using the existing infrastructure with additions, without being replaced.

Object of the Invention

Based on the state of the background art, the object of the invention is to eliminate the existing disadvantages owing to the improvements provided in the mobile payment technique used to enable credit card payment and other cash transactions at the payment points by means of mobile device.

Another object of the invention is to enable simple payment transactions via mobile device, by using the virtual POS service already being provided by the banks. In this way, the advantage is being provided to the users to perform their payments via electronic mobile devices, whose use has become a standard in the society, without necessitating an extra procedure and hardware. Another object of the invention is to enable fast transaction at the payment points by means of wireless communication devices such as the electronic mobile devices and to prevent crowding. In this way, the user is provided with the ability to perform the payment transactions from where he/she is at.

Another object of the invention is to eliminate the use and carrying of the physical POS device and thus to reduce the related costs for the banks. In this way, other costs related to the use of the physical POS at the payment points during the subsequent periods are eliminated. And the POS devices used in the member businesses are eliminated from vision. And the waste of paper due to the use of the physical POS is avoided. Also, the costs arising from the use of the phone line are avoided. And a very significant barrier has been provided on the path for the incidents of fraud, such as credit card duplication, etc.

Still another object of the invention is to enable the users to perform their payment with more suitable options by instantaneously guiding the user at the payment point. In this way, the user is kept busy for a shorter time at the payment point or during the electronic transaction. Thus, extra advantages are provided for the end user.

Still another object of the invention is to provide a less expensive electronic payment infrastructure by means of improvements in the infrastructure in use. Still another object of the invention is to provide the user with a more comfortable and secure payment channel. Still another object of the invention is to enable the banking transactions without the need for process such as data transfer, etc. over GSM network. In this way, the extra costs present in the similar applications are eliminated.

In order to achieve the said objects, innovations have been provided in the method for performing the POS and ATM banking transactions via mobile device. Owing to the wireless communication, the POS transaction used in the credit card payment is enabled to be performed in a secure manner in the virtual environment. In order to enable said POS transaction to be performed in the virtual environment in practice, the invention is embodied by a mobile device belonging to the customer to make the payment and a server with which the client will establish a wireless communication. In this way, it is made possible for the user to select the most suitable card with respect to the payment sum and the statement date upon his/her arrival at the payment point, to make the payment via virtual credit card and to monitor his/her budget. Data transfer takes place on the wireless network to be installed at the POS point, the GSM network is not used and the credit card information is by no means stored on a physical medium.

Description of the Drawings

Figure-1 is a schematic view of the method to carry out the credit card and ATM banking transactions by means of virtual POS provided by the client application installed on the mobile device, according to an illustrative embodiment of the invention.

Figure-2 is a view of the steps of the method to carry out the credit card transactions by means of virtual POS provided by the client application installed on the mobile device, according to an illustrative embodiment of the invention. Figure-3 is a view of the steps of the method to carry out the ATM banking transactions by means of virtual POS provided by the client application installed on the mobile device, according to an illustrative embodiment of the invention.

Reference numbers

1 Client 6 Bank server

2 Payment point 7 ATM machine

3 Server 8 LAN connection

4 Database 9 WAN connection

5 Wireless network 10 Firewall Detailed description of the invention

The embodiment of the invention illustrated in the figures is a method for performing credit card transactions via POS (point of sales) and the secure banking transactions at ATM (automated teller machine) machines, owing to the client application installed in the mobile device. The method according to the invention comprises the payment by credit card system via remote access for POS and ATM transactions by means of the mobile device, virtual payment system and the software and hardware components designed to replace any kind of shopping and/or banking transaction performed via POS and ATM machine. According to the embodiment of the invention, the POS transaction used for the credit card payments via wireless communication is enabled to be performed in the virtual environment. According to another embodiment of the invention, the banking transactions carried out through ATM by means of wireless communication are enabled to be performed in the virtual environment.

The important elements of the invention are described in the figure below (figure-1 ).

The most important component of the system is the client application (1 ) installed and running on the mobile device. The client (1 ) is preferably a Java application or a windows application developed for smart phones. According to prior art, the client (1 ) application has 2 different versions: One is a symbianos + java-based midlet application and the other is a windows-based smart phone application. Although these two applications have completely the same functionality, they are designed to run on different platforms. In the payment system with remote access credit card where the virtual POS system is used via the mobile device, the data communication infrastructure, whose cost is very low as compared to other alternative technologies and is free to use, is preferred. The only communication channel between the client (1 ) operating application and the server (3) is preferably the bluetooth connection. The bluetooth connection established between the server (3) and the client (1 ) application is a complete security enabled data connection with worldwide acceptance, where the data encrypting techniques are used to prevent the third persons from decrypting the data. The payment by credit card system via remote access using the virtual POS system over the mobile device preferably uses the Bluetooth technology as the data communication infrastructure and targets all the users of the mobile devices having this technology. Bluetooth technology is currently in use in many mobile devices available in the market and is becoming a standard technology for all the new generation mobile phone devices.

Payment point (POS) (2) is the cash point where the POS devices, cashier and the cash equipment comprising the computer and similar devices are located. The virtual POS program that provides wireless access used at all the payment point (2) having the payment point where the physical POS devices are used is preferably a standard windows application. This application database (DBMS) (4) lists all the clients (1 ) whose system is on and all the client (1 ) users that have logged in the system, to enable the transaction to be performed for a selected client. The payment point (POS) 2 fulfills all the functions available in the physical POS devices, such as the access to the customer information, starting the POS transaction and starting the payment transaction and monitoring and reporting the transaction steps in progress. The payment point (2) has the software and hardware features that may run at all the payment point where the physical POS device connected to the server (3) and the database (DBMS (4) is used. Cashier directs the devices such as the cash, POS device, computer and billing hardware.

Server (3) is preferably a windows service application providing the client-server based communication infrastructure connected with the client mobile devices (1) via wireless network (5). It connects with the data base (4) to coordinate the storage of all the critical information like the user identity information, POS transaction information, etc. in a secure manner and the information sharing between the cash applications. The server (3) also performs the payment transaction by connecting to the virtual POS servers of the banks using the credit card information sent from the client (1) application by means of a secure connection. All the steps of the POS transaction initiated by the cashier using the payment point (2) application are performed by the server (3). The server (3) performs the authorization process over virtual POS, a service provided by the bank, and permanently stores all the answering information coming from the bank in the data base (4). The credit card and the similar personal information is stored by the client (1 ) application on the side of the client. The client, based on preference, may also perform the transaction in a secure manner by using the virtual credit card, another service provided by the banks, instead of the credit card. In order to enable the server (3) to perform security and confirmation communication with the official institutions, it is allowed to connect with the firewall (10) protecting the network system against attacks, via preferably a Lan connection (8). A bank server (6) is configured, which is connected with by means of preferably wan connection (9) (via Internet) via the firewall (10).

Data base (4) is the data base server storing the client identity information, session information and virtual POS transaction information. The system elements enabling the shopping via virtual POS used at the payment point comprise the server (3) that updates the client information and performs the POS transaction by connecting to the virtual POS servers over a secure ssl channel, the payment point (2) planned to be installed at the POS points and the data base (4). The credit card data used during POS payment transaction are by no means stored in the data base (4) in a permanent manner. The data base (4) may be any data base management system (dbms) that preferably supports the SQL-92 standards and may be used in the windows operating system. The data base (4) is connected to the cashes (2) and the server (3) via preferably lan connection (8).

The method for performing the POS transactions via mobile device, which is shown schematically in figure-1 with the steps thereof provided in figure-2, is carried out as follows:

Client's (1 ) searching and locating the servers (3) that provide POS service, over the wireless network (5), client's (1 ) selecting the preferred server (3) and establishing the connection, - POS data base's (4) recording of the identity information sent from the client (1 ) to the server (3) via wireless network (5), at the payment point (2), cashier's selecting the client (1 ) to make the payment among the clients stored in the POS data base (4), thus initiating the payment transaction, server's (3) transmitting to the client (1 ) the payment confirmation message over the wireless network (5), client's (1 ) acknowledging the message and transmitting the same in encrypted form to the server (3), via wireless network (5), server's (3) receiving the payment confirmation message and decrypting the same and connecting to the bank server (6) over the secure ssl connection to initiate the payment transaction, bank server's (6) carrying out the transaction and sending the confirmation code to the server (3), after receiving the bank confirmation, server's (3) transmitting to the client (1 ) the payment confirmation information over the wireless network (5).

The method for performing the ATM banking transactions via mobile device, which is shown schematically in figure-1 with the steps thereof provided in figure-3, is carried out as follows: - Client's (1 ) searching and locating over the wireless network (5) the servers (3) providing ATM service and directing ATM machine (7) when necessary, client's (1 ) selecting the server (3) that provides the service desired and establishing the connection, - server's (3) connecting to the bank server (4) and verifying the client information, client's (1 ) transmitting over the wireless network (5) the request message regarding the banking transaction desired, to the server (3), server's (3) directing the request it receives to the bank server (6), - bank server's (6) processing the request it receives and transmitting the reply message to the server (3), server's (3) directing the message it receives to the client (1 ), over the wireless network (5), client's (1 ) displaying the reply message sent to it.

The wireless network (5) used between the client (1 ) and the server (3) has the communication protocol properties which enable the client credit card information to be transferred in an encrypted form over a secure connection. The wireless network (5) installed between the client (1) and the server (3) may preferably be a connection type such as bluetooth, wireless network (wi-fi), infrared and the similar.

The server (3) has such program features which do not store the credit card information used for shopping in its data base after the transaction. In order to ensure client security, the server (3) preferably has the capabilities to perform with the related institution the verification of the credit card number and the identity information.

The data base (4) has such features to provide communication between the server (3) and the payment point (2) and to record the shopping information.

The program providing data communication between the server (3) and the bank server (6) has the features to ensure security enabled connection channel. The program providing the secure data communication between the server (3) and the bank server (6) preferably uses the secure ssl channel.

The payment point (2) server (3) and the database (4) have the features that may operate at all the payment point where physical POS device is used. Owing to a software installed in the client device (1 ) and providing communication with said server (3), the payment transactions are performed between the client (1 ) and the payment point (2). At the cash equipment at the payment point (2), the cashier staff performs the payment transactions between the client (1 ) and the payment point (2), by means of a software that may be connected to the related hardware over the POS device and provide communication with said data base (4). Owing to a software installed in the client device (1) and providing communication with said server (3), the banking transactions are enabled to be carried out between the client (1 ) and the ATM machine (7).

The server (3) and the client (1 ) running on the mobile device preferably have the programming and installation features to enable them to operate in the public places like the centers open to shopping, cafes, gas stations, restaurants, ATM's and exhibition areas.

According to an example practice, the payment transaction where the payment system with the remote access credit card is used via the mobile device owing to the virtual POS system comprises the following (figure-1 ):

The customer arrives at the POS point and activates the client (1 ) application installed in the his/her mobile device. Meanwhile, the client (1 ) performs the device and service discovery over the wireless network (5) and lists all the servers (3) in the vicinity. The appropriate server (3) is selected via the client (1 ) and the system is logged in. Meanwhile, the client (1 ) application installed in the mobile device sends the customer identity information to the server (3) and the server (3) permanently stores this information in the data base (4). After the login process, the user name of the customer which is defined in the client (1 ) is found at the payment point (2). The client (1) writes the payment sum belonging to the identity information and initiates the POS transaction using the payment point (2). At this stage, the server (3) detects the initiated POS transaction and begins to operate the threads which will carry out the other steps of the transaction according to the designated sequence diagram. At the next stage, the payment confirmation form, for which the payment sum has been determined by the payment point (2), is sent via wireless network (5) to the client (1 ). This confirmation form is opened in the client (1 ) and the customer is expected to enter the credit card information. After the customer enters the credit card information and the other necessary information to the client (1 ) installed in the mobile device, he/she confirms the transaction and thus completes the POS payment transaction. After this stage, the client application transmits the credit card information to the server (3) over an encrypted wireless network (5) connection. The server (3) decrypts this received information, and connects to the virtual POS server of the bank over the secure ssl channel to authorize the payment transaction by the credit card. The reply message coming from the bank server (6) includes along with some information provided by the bank, also an authorization code. All this information is written permanently in the data base (4) and the payment transaction is thus completed. An electronic voucher containing the details of the payment transaction is sent to the client (1 ) over the wireless network (5).

With the payment system with the remote access credit card using the virtual POS system from the mobile device, a similar payment system may be designed also via sms channel, different from the system infrastructure. In this case, the data transfer may be performed by using the infrastructure of the operator selected by the customer. The services such as promotion, etc. which may be provided over the wireless network (5) to the active customers being in a certain indoor space may also be developed by the competitor companies particularly as a CRM application.

The invention may not be limited to the representative embodiments provided in this section. The alternative embodiments that may be realized by the persons skilled in the art based on the fundamental components within the protective scope as defined in the claims will mean the violation of the invention.

Claims

1. The invention is a method for carrying out the POS and ATM banking transactions with a mobile device characterized in that it comprises the following steps:

Client's (1 ) searching and locating the servers (3) that provide POS service, over the wireless network (5), client's (1 ) selecting the preferred server (3) and establishing the connection, - POS data base's (4) recording of the identity information sent from the client (1 ) to the server (3) via wireless network (5), at the payment point (2), cashier's selecting the client (1 ) to make the payment among the clients stored in the POS data base (4), thus initiating the payment transaction, - server's (3) transmitting to the client (1 ) the payment confirmation message over the wireless network (5), client's (1 ) acknowledging the message and transmitting the same in encrypted form to the server (3), via wireless network (5), server's (3) receiving the payment confirmation message and decrypting the same and connecting to the bank server (6) over the secure ssl connection to initiate the payment transaction, bank server's (6) carrying out the transaction and sending the confirmation code to the server (3), after receiving the bank confirmation, server's (3) transmitting to the client (1 ) the payment confirmation information over the wireless network

(5).

2. The invention is a method for carrying out the POS and ATM banking transactions with a mobile device characterized in that it comprises the following steps: Client's (1 ) searching and locating over the wireless network (5) the servers (3) providing ATM service and directing ATM machine (7) when necessary, client's (1 ) selecting the server (3) that provides the service desired and establishing the connection, server's (3) connecting to the bank server (4) and verifying the client information, client's (1 ) transmitting over the wireless network (5) the request message regarding the banking transaction desired, to the server (3), - server's (3) directing the request it receives to the bank server (6), bank server's (6) processing the request it receives and transmitting the reply message to the server (3), server's (3) directing the message it receives to the client (1 ), over the wireless network (5), - client's (1 ) displaying the reply message sent to it.

3. A method for carrying out the wireless POS and ATM transaction according to any one of the preceding claims characterized in that the wireless network (5) used between the client (1 ) and the server (3) has the communication protocol properties which enable the client credit card information to be transferred in an encrypted form over a secure connection.

4. A method for carrying out the wireless POS and ATM transaction according to any one of the preceding claims characterized in that said wireless network (5) installed between the client (1 ) and the server (3) may preferably be a connection type such as bluetooth, wireless network (wi-fi), infrared and the similar.

5. A method for carrying out the wireless POS and ATM transaction according to any one of the preceding claims characterized in that said server (3) has such program features which do not store the credit card information used for shopping in its data base after the transaction.

6. A method for carrying out the wireless POS and ATM transaction according to any one of the preceding claims characterized in that in order to ensure client security, said server (3) preferably has the capabilities to perform with the related institution the verification of the credit card number and the identity information.

7. A method for carrying out the wireless POS and ATM transaction according to any one of the preceding claims characterized in that said data base (4) has such features to provide communication between the server (3) and the payment point (2) and to record the shopping information.

8. A method for carrying out the wireless POS and ATM transaction according to any one of the preceding claims characterized in that said program providing data communication between the server (3) and the bank server (6) has the features to ensure a security enabled connection channel.

9. A method for carrying out the wireless POS and ATM transaction according to any one of the preceding claims characterized in that said program providing the secure data communication between the server (3) and the bank server (6) preferably uses the secure SSL channel.

10. A method for carrying out the wireless POS and ATM transaction according to Claim 1 , 5, 6, 7, 8 and 9 characterized in that said payment point (2) server (3) and the database (4) have the features that may operate at all the payment point where physical POS device is used.

11. A method for carrying out the wireless POS and ATM transaction according to Claim 1 , 5, 6, 7, 8, 9 and 10 characterized in that there is provided a software installed in the client device (1 ) and providing communication with said server (3), in order to perform the payment transactions between said client (1 ) and the payment point (2).

12. A method for carrying out the wireless POS and ATM transaction according to Claim 1 , 5, 6, 7, 8, 9, 10 and 11 characterized in that there is provided a software that may be connected to the related hardware over the POS device and provide communication with said data base (4) at the cash equipment at said payment point (2), in order to enable to perform the payment transactions between said client (1 ) and the payment point (2).

13. A method for carrying out the wireless POS and ATM transaction according to Claim 2, 3, 4, 6, 8 and 9 characterized in that there is provided a software installed in said client device (1 ) and providing communication with said server

(3), in order to enable the banking transactions to be carried out between said client (1 ) and the ATM machine (7).