WO2010029565A2

WO2010029565A2 - System and method for facilitating electronic financial transactions

Info

Publication number: WO2010029565A2
Application number: PCT/IN2009/000406
Authority: WO
Inventors: Kaustubh Aham Arjunwadkar
Original assignee: Kaustubh Aham Arjunwadkar
Priority date: 2008-07-18
Filing date: 2009-07-17
Publication date: 2010-03-18
Also published as: WO2010029565A3; AU2009100697A4

Abstract

The present invention discloses a system and a method for facilitating electronic transactions. The principle feature of the present invention is the concept of transaction cards of fixed values in the currencies of users' choice. The transaction cards in accordance with this invention are value cards like prepaid telephone cards. These transaction cards could be issued by any authorized institution such as banks or credit card companies like Master Card or Visa, insurance companies or financial companies who would guarantee payment as is done in present credit card scenario but the payment would be instantaneous.

Description

SYSTEM AND METHOD FOR FACILITATING ELECTRONIC FINANCIAL TRANSACTIONS

FIELD OF THE INVENTION

The present invention relates to the field of electronic transactions.

Particularly, the present invention relates to the field of electronic financial transactions.

BACKGROUND OF THE INVENTION

Conventional buying and selling of products and services started with barter system. In the barter system, products/ services of one entity were exchanged for products/ services of another entity. As trade grew, need was felt for an interfacing medium and thus, money was invented. For several centuries, money and its equivalent like gold were the norm in trade and goods were bought and sold for their value in money.

However as things became more complicated, buying and selling using paper money and coins became inefficient which led to the establishment of the banking system, where money was banked and could be drawn upon by financial instruments such as cheques and drafts. In course of time, this too became inefficient and newer systems were found to be necessary.

This brought the era of plastic money or credit cards. Today credit cards are the preferred form of carrying around and using of large amounts. Credit card system is an efficient system for financial transactions. However, their popularity and usefulness brought in their wake the usual criminals and therefore, credit card fraud is the most serious "white collar crime" of modern days. When the internet came into existence, credit card seamlessly moved into this area and became the instrument for electronic financial transactions.

However, nowadays, credit card frauds and identity theft has become the single most serious crime and problem and has reached such proportions that most users and traders and even banks are very cautious about all credit card transactions. Every day in the news, there are stories appearing of some credit card theft on the net, whether it is an airline ticketing fraud / bank fraud / stolen identification fraud and the like. This has resulted in a further slowing down of the financial transaction process using credit cards by compelling a prospective buyer to fill in detailed forms and particulars before committing a transaction. Many of these forms are extremely complicated and in an internet environment, it is difficult to provide all details. For instance, in filling the address of the credit card holder, if the registered address is a comma at a particular place, and if this is not entered properly, the application will be rejected because of a mismatch. Often, this results in a 'time out' and hence, applications have to -be _s filled repeatedly until a transaction is finally complete. Many customers are also insecure about giving credit card details to a machine as there is no surety about who will be reading the given details and whether this information will be misused. A further malice is that of a system called tele - business, where cell phone holders are continuously harassed with a barrage of unsolicited calls. These callers normally receive information from the electronic financial transaction systems.

Several attempts have been made to improve the security of electronic financial transactions as disclosed in the patent applications mentioned below. The PCT Patent Application No. WO 200115025 published on 01.03.2001 discloses a scratch - off card payment method for electronic transactions of goods and services, wherein the card is associated with an individual balance stored in a server installation. While purchasing goods, the user has to transfer information about the card including a card identification number to the merchant which is passed by the merchant to the server installation for verification of sufficient balance and the goods and services are delivered if the verification is successful. The main drawback of the invention disclosed in WO 200115025 is that, it requires the user to hold a physical scratch - off card with him for the purchase of goods and services, which proves to be inconvenient for the user. For recharging purposes or for getting new cards, the user has to approach the middlemen which again adds to the inconvenience of the user.

Further, the European Patent Application No. EP 1265200 published on 11.12.2002 discloses a credit card system which has the added feature of providing additional limited use credit card numbers and/or cards. These numbers and/or cards can be used for a single or limited use transaction, thereby reducing the potential for fraudulent reuse of these numbers and/or cards. The credit card system finds application to card remote transactions through phone or through internet. The main drawback of the invention disclosed in EP 1265200 is that the single use credit card numbers and/or cards have to be associated with a main credit card.

Still further, the United States Patent Application No. US 20030200179 published on 23.10.2003 discloses a pre - paid card system used to store monetary value and subsequently for making payments to merchants through the telephone system or through a data network. The main drawback of the invention disclosed in US 20030200179 is that the validity of the pre - paid cards expires in a short period of time. Moreover, the invention offers only lesser anonymity of the subscribers.

There is therefore felt a need for a system for facilitating electronic financial transactions, which:

• is completely secure with minimum risk and greater anonymity of the subscribers;

• does not invade into the privacy of the subscribers;

• does not require any signatures from the subscribers;

• does not make the subscribers to remember any passwords;

• does not restrict the subscribers' transactions with credit limits;

• makes the whole transaction very convenient for the subscribers; and

• does not have any validity period restrictions.

OBJECTS OF THE INVENTION

It is an object of the present invention to provide a system for facilitating electronic financial transactions, which is completely secure with minimum risk and greater anonymity of the subscribers.

It is another object of the present invention to provide- a system for facilitating electronic financial transactions, which does not invade into the privacy of the subscribers. It is yet another object of the present invention to provide a system for facilitating electronic financial transactions, which does not require any signatures from the subscribers.

It is yet another object of the present invention to provide a system for facilitating electronic financial transactions, which does not make the subscribers to remember any passwords.

It is yet another object of the present invention to provide a system for facilitating electronic financial transactions, which does not restrict the subscribers' transactions with credit limits.

It is still another object of the present invention to provide a system for facilitating electronic financial transactions, which makes the whole transaction very convenient for the subscribers.

One more object of the present invention is to provide a system for facilitating electronic financial transactions, which does not have any validity period restrictions.

SUMMARY OF THE INVENTION

In accordance with the present invention, there is provided a system for facilitating electronic financial transactions over a communication network comprising:

• a transaction unit adapted to process and manage financial transactions for subscribers, said transaction unit comprising:

i. a portal unit adapted to interact with said subscribers over said communication network to allow said subscribers to register, to make requests for new transaction cards and to view their account balance and purchase details;

ii. a request processing unit adapted to receive requests for new transaction cards from said subscribers through said portal unit and through different communication means and to convert said requests into a single standard format for further processing;

iii. a distribution unit adapted to receive said converted requests from said request processing unit, to communicate with a user database in a database server to obtain said subscriber and account details for validating said subscribers, to communicate with a sequence generator to obtain unique single operation numbers for said requested transaction cards, to communicate with a collaboration unit to obtain payments corresponding to said unique single operation numbers for said requested transaction cards from said, validated subscribers, to dispense said requested transaction cards with said unique single operation numbers to said validated subscribers and to communicate with a transaction database in said database server to store the details of said unique single operation numbers allocated for said dispensed transaction cards;

iv. a sequence generator adapted to generate unique single operation numbers for said requested transaction cards; arid

v. a collaboration unit adapted to interact with external interfaces, comprising a payment unit adapted to communicate with external payment gateways over said communication network and to receive payments from said validated subscribers corresponding to said unique single operation numbers for said requested transaction cards and an external interface unit adapted to communicate with external service providers over said communication network to provide payments for their services or products purchased by said subscribers using said unique single operation numbers of said dispensed transaction cards; and

• a database server adapted to store the data corresponding to said transaction cards and their subscribers, said database server comprising:

i. a user database adapted to store the details of said subscribers comprising a personal schema adapted to store the personal details of said subscribers and an account schema adapted to store the card payment details and account balance of said subscribers; and

ii. a transaction database adapted to store the details of said unique single operation numbers allocated for said dispensed cards.

Typically, said portal unit is hosted on a web server.

Typically, said different communication means include SMS (Short Messaging Service), voice calls through mobile phone or land phone, internet and DTH (Direct To Home) service. Typically, said distribution unit is adapted to dispense transaction cards with unique single operation numbers on said validated subscribers' request without any payment made by said validated subscribers if they have enough account balance.

Typically, said distribution unit is adapted to dispense said transaction cards with said unique single operation numbers using different communication means selected from a group consisting of said portal unit, SMS (Short Messaging Service), voice calls through mobile phone or land phone, DTH service and third- party vendor service.

Typically, said distribution unit is adapted to dispense amount in cash through ATMs (Automatic Teller Machines) on said validated subscribers' request if their account balance is above a threshold value.

Typically, said payment unit is adapted to update said account schema with the details of payment made by said validated subscribers for said unique single operation numbers for said requested transaction cards.

Typically, said external interface unit is adapted to update said account schema by deducting the purchase amount from said subscribers' account balance once said subscribers purchase services or products from said external service providers.

Typically, said external interface unit is adapted to update said transaction database with said subscribers' purchase details using said unique single operation numbers and to modify said unique single operation numbers in said transaction database as invalid.

Typically, said communication network is selected from a group of data networks including Local Area Network (LAN - Ethernet), Wide Area Network (WAN), Metropolitan Area Network (MAN), internet and other wired and wireless components of the World Wide Web (WWW).

In accordance with the present invention, there is provided a process for facilitating electronic financial transactions over a communication network comprising the following steps:

• registering subscribers by providing said subscribers with user accounts;

• accepting requests for new transaction cards from said subscribers through different communication means;

• converting said requests from said subscribers into a standard format for further processing;

• validating whether said subscribers are registered users;

• generating unique single operation numbers for said requested transaction cards;

• activating a payment unit to receive payments over said communication network from said validated subscribers for said unique single operation numbers for said requested transaction cards and to update an account schema in a user database of a database server with the payment details for said unique single operation numbers for said requested transaction cards;

• dispensing said requested transaction cards with said unique single operation numbers to said validated customers and updating a transaction database with details of said unique single operation numbers allocated for said dispensed transaction cards;

• providing payments to external service providers over said communication network for their services or products purchased by said subscribers using said unique single operation numbers of said dispensed transaction cards;

• deducting said payment amount from said subscribers' account balance in said account schema; and

• updating purchase details using said unique single operation numbers in said transaction database and making said unique single operation numbers in said transaction database as invalid.

BRIEF DESCRIPTION OF THE ACCOMPANYIN&DRAWINGS

The system for facilitating electronic financial transactions in accordance with this invention is now described with the help of accompanying drawings, in which:

Figure 1 illustrates the overview of the process of facilitating electronic financial transactions in accordance with the present invention; and

Figure 2 illustrates the block diagram of the system for facilitating electronic financial transactions in accordance with the present invention. DETAILED DESCRIPTION OF THE INVENTION

The drawings and the description thereto are merely illustrative of a system for facilitating electronic financial transactions in accordance with this invention and only exemplify the process and system of the invention and in no way limit the scope thereof.

The principal feature of the present invention is the concept of transaction cards. The transaction cards in accordance with this invention are value cards like pre - paid telephone cards. However, there are fundamental differences. What is envisaged in the system of this invention is a set of transaction cards of fixed values in the currencies of choice. For instance in the Indian environment, the transaction cards can be purchased starting from Rs. 1 in convenient denominations up to Rs. 10, 000/- or Rs. 1,00,000/-. The transaction cards will bear typically, a 16 digit code number named as unique single operation numbers. This number can be retrieved typically by scratching of a top layer under which the number is concealed. These transaction cards could be available at any commercial or non- commercial location, from vendors starting from a bank to a tea house and could be purchased across the counter. These transaction cards could be issued by any authorized institutions such as banks or credit card companies like Master Card or Visa or insurance companies or financial companies who would guarantee payment as is done in present credit card scenario but the payment would be instantaneous.

In accordance with another aspect of the present invention, the transaction cards need not be physical cards. The subscriber of the system can request for new transaction cards in the denominations of his choice through SMS, landline telephones or DTH (Direct to Home) service and he can receive the unique single operation numbers corresponding to the cards he requested for through similar means. Thus, he need not always go to the vendor to obtain his new cards and hence, thereby increasing his convenience to a greater extent.

Referring to the accompanying drawings, Figure 1 illustrates the overview of the process of facilitating electronic financial transactions over a communication network in accordance with the present invention, indicated generally by the reference numeral 100. The subscriber 10 with the transaction card can obtain the unique single operation numbers corresponding to the cards he requested from the system 30. An account will be created for him in the system 30 with the payments that the system 30 receives from him for the transaction cards. Also, he can obtain the physical scratch - off transaction cards from the vendors 20. For purchasing products or services from an external service provider 50, the subscriber 10 with the transaction card has to enter the service provider's portal or gateway and shop for the items that he needs and to fill up a "shopping basket or a shopping cart". He will need to have a stock of transaction cards purchased. As soon as the subscriber 10 creates a shopping cart, the service provider's portal will provide the value of the transaction. Also, the service provider's portal will announce which transaction cards are acceptable to them. (This can create competition between transaction card suppliers who will tie up with the appropriate traders and provides wide net of sellers of the transaction card in a given area.)

Now, the subscriber 10 has to provide the unique single operation numbers which have been scratched off the card of the appropriate denominations. As soon as the numbers are fed in, the numbers become automatically invalid and can be used only once. There is thus no need for filling any application form or providing any detail to validate the number entered in. The trader who is obviously remotely located from the buyer is immediately assured of his money because the money is immediately credited to his account. There will be no service charges payable on this transaction as is currently levied by credit card companies. The purchaser is also fully secure because now credit card fraud is totally eliminated. Therefore both sides of the transaction are secure. After a successful transaction, the external service provider 50 can deliver the purchased products or services 60 to the shipping address given by the subscriber 10 to the portal of the external service provider 50.

In accordance with another aspect of the present invention, the subscriber can withdraw cash through ATMs (Automatic Teller Machines) 40 if his account balance is above a threshold value.

Figure 2 illustrates the block diagram of the system for facilitating electronic financial transactions over a communication network in accordance with the present invention, indicated generally by the reference numeral 1000. The main components of the system 1000 are a transaction unit 200 and a database server 300. The transaction unit 200 has a portal unit 210, a request processing unit 220, a distribution unit 230, a sequence generator 240 and a collaboration unit 250. The database server 300 has a transaction database 320 and a user database 310 having a personal schema 312 and an account schema 314.

The subscribers can interact with the system 1000 through the portal unit 210 through the communication network. Typically, the communication network is selected from a group of data networks including Local Area Network (LAN - Ethernet), Wide Area Network (WAN), Metropolitan Area Network^' (MAN) and other wired and wireless components of the World Wide Web (WWW). The interaction is represented by the signal 1. The portal unit 210 allows the subscribers to register to the system 1000, to make requests for new transaction cards and to view their account balance and purchase details. This portal unit 210 is typically hosted on a web server.

The request processing unit 220 receives the subscribers' request for new transaction cards from the portal unit 210. It also receives requests from subscribers through other communication means including SMS, landline telephones and DTH services (indicated by the signal 2). Then, the request processing unit 220 will convert these requests into a single standard format acceptable by the subsequent units of the system 1000.

The distribution unit 220 receives the converted requests from the request processing unit 210, communicates with a user database 310 in the database server 300 to obtain the subscriber and account details for validating the subscribers, communicates with a sequence generator 240 to obtain unique single operation numbers for the requested transaction cards, communicates with a collaboration unit 250 to obtain payments corresponding to the unique single operation numbers for the requested transaction cards from the validated subscribers, dispenses the requested transaction cards with the unique single operation numbers to the validated subscribers and communicates with a transaction database 320 in the database server 300 to store the details of the unique single operation numbers allocated for the dispensed transaction cards. Typically, the distribution unit 230 dispenses transaction cards with unique single operation numbers on the validated subscribers' request without any payment made by the validated subscribers if they have enough account balance. Moreover, the distribution unit 230 can dispense amount in cash through ATMs (Automatic Teller Machines) on the validated subscribers' request if their account balance is above a threshold value. Typically, the distribution unit 230 can dispense the transaction cards with the unique single operation numbers using different communication means selected from a group consisting of said portal unit, SMS (Short Messaging Service), voice calls through mobile phone or land phone, DTH service and third-party vendor service (indicated by signal 3).

The sequence generator 240 generates unique single operation numbers corresponding to subscribers' requested transaction cards for requested denominations of amount. The collaboration unit 250 interacts with external interfaces (indicated by signal 4) over the communication network. The collaboration unit 250 comprises a payment unit and an external interface unit.

The payment unit of the collaboration unit 250 communicates with external payment gateways of the validated subscribers over the communication network and receives payments from the validated subscribers corresponding to the unique single operation numbers for the requested transaction cards. Also, the payment unit updates the account schema 314 of the user database 310 of the database server 300 with the details of the payment made by the validated subscribers for the unique single operation numbers for the requested transaction cards.

The external interface unit of the collaboration unit 25O₁ communicates with the payment gateways of the external service providers over the communication network to provide payments for their services or products purchased by the subscribers using the unique single operation numbers of the dispensed transaction cards. The external interface unit updates the account schema 314 by deducting the purchase amount from the subscribers' account balance once the subscribers purchase services or products from the external service providers. The external interface unit also updates the transaction database 320 of the database server 300 with the subscribers' purchase details using the unique single operation numbers and modifies the used unique single operation numbers in the transaction database 320 as invalid.

The database server 300 stores the data corresponding to the transaction cards and their subscribers. The user database 310 in the database server 300 stores the details of the subscribers. The user database 310 has a personal schema 312 adapted to store the personal details of the subscribers and an account schema 314 adapted to store the card payment details and account balance of the subscribers. The transaction database 320 in the database server 300 stores the details of the unique single operation numbers allocated for the dispensed cards.

In accordance with another aspect of the present invention, the vendors can also have a user account created in the user database and the details of the unique single operations numbers allocated to the transaction cards dispensed to the vendors are updated in the transaction database 320 in the database server 300. Once a subscriber of the system 1000 purchase a transaction card from the vendors, he has to update the details of the cards in the user database 310 and the transaction database 320 through the portal unit 210.

In accordance with the present invention, there is provided a process for facilitating electronic financial transactions over the communication network comprising the following steps:

• registering subscribers by providing the subscribers with user accounts;

• accepting requests for new transaction cards from the subscribers through different communication means; • converting the requests from the subscribers into a standard format for further processing;

• validating whether the subscribers are registered users;

• generating unique single operation numbers for the requested transaction cards;

• activating a payment unit to receive payments over the communication network from the validated subscribers for the unique single operation numbers for the requested transaction cards and to update the account schema in the user database of the database server with the payment details for the unique single operation numbers for the requested transaction cards;

• dispensing the requested transaction cards with the unique single operation numbers to the validated customers and updating the transaction database with details of the unique single operation numbers allocated for the dispensed transaction cards;

• providing payments to external service providers over the communication network for their services or products purchased by the subscribers using the unique single operation numbers of the dispensed transaction cards;

• deducting the payment amount from the subscribers' account balance in the account schema; and

• updating purchase details using the unique single operation numbers in the transaction database and making the unique single operation numbers in the transaction database as invalid. TECHNICAL ADVANCEMENTS

The technical advancements of the present invention include the realization of a system for facilitating electronic financial transactions, which:

• does not invade into the privacy of the subscribers;

• does not require any signatures from the subscribers;

• does not make the subscribers to remember any passwords;

• does not restrict the subscribers' transactions with credit limits;

• makes the whole transaction very convenient for the subscribers; and ; • ^: does not have any validity period restrictions.

Claims

CLAIMS:

1. A system for facilitating electronic financial transactions comprising:

• a transaction unit adapted to process and manage financial transactions for subscribers over a communication network, said transaction unit comprising:

iii. a distribution unit adapted to receive said converted requests from said request processing unit, to communicate with a user database in a database server to obtain said subscriber and account details for validating said subscribers, to communicate with a sequence generator to obtain unique single operation numbers for said requested transaction cards, to communicate with a collaboration unit to obtain payments corresponding to said unique single operation numbers for said requested transaction cards from said validated subscribers, to dispense said requested transaction cards with said unique single operation numbers to said validated subscribers and to communicate with a transaction database in said database .server to store the details of said unique single operation numbers allocated for said dispensed transaction cards;

iv. a sequence generator adapted to generate unique single operation numbers for said requested transaction cards; and

a database server adapted to store the data corresponding to said transaction cards and their subscribers, said database server comprising:

2. A system for facilitating electronic financial transactions as claimed in claim (1), wherein said portal unit is hosted on a web server.

3. A system for facilitating electronic financial transactions as claimed in claim (1), wherein said different communication means include SMS (Short Messaging Service), voice calls through mobile phone or land phone, internet and DTH service.

4. A system for facilitating electronic financial transactions as claimed in claim (1), wherein said distribution unit is adapted to dispense transaction cards with unique single operation numbers on said validated subscribers' request without any payment made by said validated subscribers if they have enough account balance.

5. ,A system _^ for facilitating electronic financial transactions as claimed in claim (1), wherein said distribution unit is adapted to dispense said transaction cards with said unique single operation numbers using different communication means selected from a group consisting of said portal unit, SMS (Short Messaging Service), voice calls through mobile phone or land phone, DTH service and third-party vendor service.

6. A system for facilitating electronic financial transactions as claimed in claim (1), wherein said distribution unit is adapted to dispense amount in cash through ATMs (Automatic Teller Machines) on said validated subscribers' request if their account balance is above a threshold value.

7. A system for facilitating electronic financial transactions as claimed in claim (1), wherein said payment unit is adapted to update said account schema with the details of payment made by said validated subscribers for said unique single operation numbers for said requested transaction cards.

8. A system for facilitating electronic financial transactions as claimed in claim (1), wherein said external interface unit is adapted to update said account schema by deducting the purchase amount from said subscribers' account balance once said subscribers purchase services or products from said external service providers.

9. A system for facilitating electronic financial transactions as claimed in claim (1), wherein said external interface unit is adapted to update said transaction database with said subscribers' purchase details using said unique single operation numbers and to modify said unique single operation numbers in said transaction database as invalid.

10. A system for facilitating electronic financial transactions as claimed in claim (1), wherein said communication network is selected from a group of data networks including Local Area Network (LAN - Ethernet), Wide Area Network (WAN), Metropolitan Area Network (MAN), internet and other wired and wireless components of the World Wide Web (WWW).

11. A process for facilitating electronic financial transactions over a communication network comprising the following steps:

• registering subscribers by providing said subscribers with user accounts;

• validating whether said subscribers are registered users;

• dispensing said requested transaction cards with said unique single operation numbers to said validated customers and updating a transaction database with details of said unique single operation numbers allocated for said dispensed transaction cards; • providing payments over said communication network to external service providers for their services or products purchased by said subscribers using said unique single operation numbers of said dispensed transaction cards;