WO2014162309A1

WO2014162309A1 - Financial transaction system using mobile device via ussd network

Info

Publication number: WO2014162309A1
Application number: PCT/ID2014/000002
Authority: WO
Inventors: Soehardi WANGSADIBRATA; Adji SANTOSO; Dicky TJOKROSAPUTRO
Original assignee: Pt. Cyberport
Priority date: 2013-04-01
Filing date: 2014-03-25
Publication date: 2014-10-09
Also published as: JP2016514871A

Abstract

The present invention relates to a financial transaction system performed using a mobile device. Further, the present invention relates to a financial transaction system that uses USSD (Unstructured Supplementary Service Data) network. The system comprises a mobile device connected to a mobile device administration server; a mobile device administration server able to administer verification of all parameters and features in a mobile device connected therewith prior to performing a financial transaction; a switch server in the mobile device administration server to sort and format a financial transaction pursuant to the related financial institution; a switch server in the related financial institution connected to the switch server in the mobile device administration server. The mobile device administration server will verify the simcard in a mobile device; check the software version in a mobile device; send update data of software version to a mobile device; verify financial transaction authorized limit of a user; organize transaction requests from a mobile device and also transmit a response from the switch server in the financial institution.

Description

Financial Transaction System using Mobile Device

via USSD Network

Field of Invention

The present invention relates to a financial transaction system performed using a mobile device. Further, the present invention relates to a financial transaction system using a USSD (Unstructured Supplementary Service Data) network.

Background of Invention

Todays, there is a high demand for a financial transaction with high mobility and reliability. Further, the practical ease to access to a financial transaction in remote areas is very desired.

Such need has been disclosed in Indonesian patent application No. W00200300240 regarding "Multi-function Mobile Banking System" . The application relates to an integrated transaction management system using a gate to conduct communication and perform a transaction with a plurality of financial data networks utilizing a plurality of communication protocols, a plurality of interface servers providing an interface between a user and a plurality of financial service applications including ATM, Post Office, Internet-based Bank (GPRS), telephone-based Bank, wireless short message services, and wireless application protocol-based bank. However, the invention has limitations, such as ATM has limitation of place for transaction; while post office, internet-based bank (gprs) , telephone-based bank and wireless application protocol-based bank have connection limitation that is the cellular signal must be adequate when performing the transaction. There is a possibility of disrupted transaction due to inadequate signal. Said condition is not condusive to the need for real time transaction as desired.

In addition, wireless short message services do not deliver a high level of reliability as it does not ensure the delivery time of the message particularly during busy network traffic. This is also not condusive to the desired need with respect to a financial transaction.

Further, in a financial transaction using wireless data packet (Internet and GPRS) as well as dial up, the system requires NAC (Network Access Controller) to accomodate financial transaction requests. NAC should be established in each city area to be able to provide financial transaction service. Upon received by the city NAC, a transaction request is then forwarded to the central NAC. The wider area to be covered for financial transaction more NACs should be established in those preferred city areas. Thus, massive investment should be made to provide NAC in every area. Eventhough the wireless data packet does not need a city NAC, its services depend on the adequacy of the signal.

Another alternative to perform a financial transaction using a mobile device is by using an USSD network. This network has an advantage that is after logical peer-to-peer session is held between a user and the server for text message exchange the message will be exchanged virtually and instantly.

Another advantage of the USSD network compared to Short Message Services is that the logical peer-to-peer session does not leave trace or remainder (like Short Message Services) on the memory of mobile device. Thus the communication security can be improved, particularly when involving sending of a PIN number or other important financial data. In particular, USSD network has been disclosed in Indonesian Patent application No. 00201104545 titled "Method of USSD Implementation in a Telecommunication Network" . The invention relates to a method to provide services in the telecommunication networks using USSD channel. Further, the invention relates to steps to establish a USSD network connection in a mobile device. However, W00201104545 does not disclose a financial transaction conducted on USSD network.

A transaction authorization via mobile device using USSD network has been disclosed in International Patent Publication No. WO 2010/131988. However, the invention relates to a method for transaction authorization via mobile device, requesting for a voice call, to have a voice connection to a phone number identifying a transaction where the authorization can be done via voice call or USSD network. The invention relates to an authorization of payment made by a user without disclosing the financial transaction taking place.

In addition, in the present USSD network, its use still have limitations such as short period of time to have a connection for transaction as the current time limit is no longer than 20 seconds. Another limitation is that a message that can be transmitted through the network cannot contain more than 182 alphanumerical characters. This obviously does not facilitate the need as expected for a financial transaction.

Further, in relation to the currently available kind of mobile device to be used for performing a financial transaction, it should be installed with software to obtain the option of menu to access to the desired transaction. When necessary to update the software the update should be installed directly to the mobile device. This of course can be inconvenient when the mobile device is in some remote areas and transaction instructions need to be sent to the authorized party (bank or operator) .

.Af-ter—insfca-l-li-ng—fe-he—software on the mobile device , said mobile device can be directly used without performing any activation. This can be potential for a misuse of the device when it is delivered to the user.

Summary of Invention

Thus, one objective of the present invention is to overcome the limitations of the system as described above.

Another objective of the present invention is to provide a financial transaction system having a high mobility and able to reach the remote areas .

A further objective of the present invention is to provide a real time transaction request as this will facilitate the need for financial transaction.

Still another objective of the present invention is to provide a financial transaction system that has a high rate of success .

Still another objective of the present invention is to provide a financial transaction system with an adequate level of security so as to make a user convenient in performing a transaction .

Still another objective of the present invention is to provide a longer transaction connection time and also to provide more alphanumeric characters when performing a transaction.

These objectives can be achieved by the financial transaction system comprising a mobile device connected to a mobile device administration server via USSD gateway; a mobile device administration server that is capable of adminstering the verification of all parameters and features in a mobile device connected therewith prior to performing a financial transaction; a switch server in the mobile device administration server to sort financial transaction pursuant to the related financial

-institution-; the switch server ITT ^'the ^"related financial institution is connected to a switch server in the mobile device administration server.

This system has work flow as follow: first, request is made by a user/merchant via a mobile device to perform a financial transaction to the mobile device administration server that will verify the request and forward it to the switch server; after that the request is forwarded to a switch server in the financial institution; after receiving the authorization from the related financial institution, a response will be returned to the mobile device administration server and forwarded to the mobile device.

The connection between switch server in the mobile device administration server and switch server in the related financial institution is set under a format that has been approved by the related bank (financial institution) . These formats are differentiated based on the requested transaction. The device setting the formats is the switch server in the mobile device administration server.

A connection that connects the switch server in the mobile device administration server to the bank (or financial institution) uses a host to host system. The network used in this system is generally a "Leased Line" .

In this system, the mobile device administration server in which the mobile device is connected thereto via USSD gate, is a place to verify the mobile device performing the transaction. The mobile device administration server will detect whether the mobile device has had the registered simcard or not, if not the transaction could not be performed; after that the mobile device administration server will verify whether the PIN number of the user/merchant is correct or not; it will also check whether the -ia-fces —ve-r-sion—of—the^{^}soft are^~has^~been ^~i stalled or not, if not the mobile device administration server will provide the necessary data to update the software in the mobile device.

The mobile device used in the present invention includes EDC machine, cellphone and other mobile communication device, but most preferably EDC machine.

When a user uses the mobile device, identity card must be swiped on the mobile device. The swipe will also be verified by the mobile device administration server which will be given authority to display the optional menu. Thus the displayed menu on the mobile device will be adapted with the user authority based on the swiped identity card. Displayed menus in the present invention are optional menus that generally display on the AT ' s .

Further, the mobile device administration server is capable to overcome the limitation of a short transaction connection time. The mobile device administration server can extend the transaction connection^time which is previously 20 seconds. In the present invention, transaction connection time can be extended up to three minutes. In addition, the mobile device administration server can overcome the limitation of number of alphanumeric characters up to 1500 characters which is previously 182 characters.

The financial transaction system according to the present invention further comprises a multiple key encryption security protocol. The multiple keys comprise a first block PIN which will perform dynamic security when the mobile device is performing a financial transaction to the mobile device administration server. The first block pin is generated when the mobile device is connected to the mobile device administration server by changing the master key on daily basis for a unit of mobi-ie—device^" This win cause the user's pin unexposed in the the transaction flow of the system. The second key is the second block pin which will perform static security when the mobile device administration server is connected to the switch server in the bank. The second block pin is generated from the first block pin combined with three ^'master keys where the master keys are being inputted only one time at the beginning of the system. A device that regulates the block pin changing is HSM (Host Security Module) . The first block pin is regulated by HSM located in the mobile device administration server. The second; block pin is regulated by HSM located in the switch server in the related bank/financial institution.

As a part of security of the mobile device used for financial transaction, the mobile device cannot be used even after the software is installed. The mobile device needs to be pre-activated by the user. This will eliminate any missuse of the mobile device when the mobile device is shipped to a user.

The following figures are a part of the present invention, illustrating the embodiment of the present invention and, along with the description, are intended to explain the principle of the present invention.

Brief Description of Drawing

Figure 1 is a schematic view of financial transaction system according to the embodiment of the present invention.

Figures 2, 2a and 2b are the view of the flow chart of a financial transaction according to the embodiment of the invention. Figure 3 is a schematic view of financial transaction system which relates to security system according to the embodiment of the invention.

Figure 4 is a schematic view of financial transaction system according to the embodiment of the prior art .

Detailed Description of Invention

The following reference will be made in detail for the prefer embodiment of the present invention, example is illustrated in the accompanied figures where the reference number refers to suitable elements.

Fig. 1 is a schematic view of financial transaction system according to the embodiment of the invention, financial transaction system (10) is comprising of mobile device (1) which is connected to mobile device administration server (2); mobile device administration server (2) is capable of administering the verification of all parameters and features in mobile device (1) connected therewith prior to performing financial transaction; switch server (7) on the mobile device administration server to sort financial transaction pursuant to the related financial institution; switch server (3) on the related financial institution is connected to switch server (7) in mobile device administration server (2) .

Mobile device (1) used in the present invention including EDC machines, cellphones and other mobile communication devices, but most preferably EDC machine.

Based on fig. 1, instruction request is made by a user using mobile device (1) performing the request via USSD gate (6) . The instruction is then passed through Base Station Centre (BSC) (4) and Mobile-service Switch server Centre (MSC) (6) . BSC is administration server of several BTS' especially in bridging the communication of user to a network and to other network. MSC is a switch server which is designed in particular for mobile communication. MSC decides and coordinates a request from Public -Sw-i-te-ked—Telephone—Network—(^"PSTN) to BSC anH Finally to the user's handheld.

After that, the transaction request will be forwarded to mobile device administration server (2) . Then continue to the switch server (7) to sort the type of transaction after the verification is performed on mobile device administration server (2) . The switch server (7) is then transmitting the request to the switch server (3) in the related bank. Upon receive the authorization from the related financial transaction then a response is reforwarded to mobile device administration server (2) and continue to mobile device (1) .

Further, the system does not require NAC (25) to accomodate financial transaction request as it is used in the system using GPRS or even Dial up. In comparison, in fig. 4, the financial transaction using GPRS and Dial up is ilustrated. It can be seen that the system using GPRS and Dial up still need NAC (13) to be placed in aeach area (13a) and the central (13b) . The wider areas to be covered for financial transaction then the more NACs should be provided thus will lead to the higher investment.

In the following the early flow of the financial transaction according to the present invention will be explained referring to fig. 2. Step 100 explains when mobile device (1) is turned on and performing initial boot. Then followed by step 101 which is pushing Fl on mobile device (1) and then swiping the user/merchant's card and continue by entering the PIN. The mobile device (1) will be dialing the USSD gate (6) . The PIN will be forwarded to mobile device administration server (2) which will check the simcard as in step 105. If the simcard is not registered yet, the connection will end and if it is registered then the mobile device will send the status to the mobile device administration server (2) , as in step 107. Mobile -de-viee—adm-i-nistratriron-ser er (^"2^") wTTl check the key changing and the data of latest version of the software. If the data does not match then the connection will end, if it matches then the process will proceed to step 110, mobile device (1) will send the data in the card and the block PIN to mobile device administration server (2) . Mobile device administration server (2) will check switch server (7) . If the data does not match, then the process will return to step 103 to re-entering PIN. If it matches, then the primary transaction menu will be displayed. The above steps are used for a mobile device (1) that has just been turned on.

If the mobile device (1) is turned on already, step 113 will continue to step 114 that is sorting the transaction type in the mobile device (1) referring to fig. 2a. It is followed by swiping the user's card and entering the PIN. Mobile device (1) will make a call to the USSD server and it will be forwarded to mobile device administration server (2) . In step 117, mobile device administration server (2) will perform re-checking whether the number of the mobile device has been registered or not. If it has not, the connection will end. If it has, the transaction request will be forwarded by the mobile device (1) , as in step 119. Mobile device administration server (2) will process the transaction and send the function command. The mobile device (1) will print the transaction accordingly. The flow of financial transaction is then complete when the user does not wish to perform another transaction as in step 124 and refer to fig 2b. If the user wish to perform another transaction, then the step will return to 113 which is display menu on the mobile device (1) and follow the subsequent step of as described above.

-When—th —process—ha-s—reached—the—menu—drspiray-, tlrere has^" been many lines of authorization of a user who previously swiped the ID card. Accordingly, when the user's card is swapped, the mobile device will recognize the user and then use the line corresponding to the card. Lines of user authorization have been saved previously refer to the required system.

The security in the financial transaction will be explained referring to fig. 3. The security method used in the present invention id DES however 2DES or 3DES also can be used. The financial transaction system according to the present invention further comprises multiple key encription security protocol. The first PIN block (11) will perform dynamic security when mobile device (1) is having financial transaction to the mobile device administration server (2) . The first block pin (11) is conducted on mobile device (1) when connecting with mobile device administration server (2) by changing one of two existing master keys. This PIN changing is performed every day for each mobile device unit. The changing on the first PIN block is regulated by HSM (8) in mobile device administration server (2) . The second key is second block pin (12) which performs static security when the mobile device administration server (2) is connected to the switch server (3) in the related bank. In the second block pin (12) , the first block pin (11) is combined with three master keys where the master keys are inputted for only one time at the beginning of the system. The second PIN block (12) will be received by HSM (9) in switch server (3) .

Claims

1. A system for a financial transaction using a USSD network, comprising :

a mobile device connected to a mobile device administration server;

a mobile device administration server able to administer verification of all parameters and features in a mobile device connected therewith prior to performing a financial transaction; a switch server in the mobile device administration server to sort and format a financial transaction pursuant to the related financial institution;

a switch server in the related financial institution which is connected to the switch server in the mobile device administration server;

wherein a request will be made by a user through mobile device to perform a financial transaction to a mobile device administration server which will verify and forward said request to the switch server; which will then be forwarded to the switch server in the financial institution; upon receiving the authorization from the financial institution a response will be returned to the mobile device administration server and then forwarded to the mobile device.

2. The finansial transaction system according to claim 1, wherein the mobile device includes EDC machines, handphones and other electronic communication devices, but preferably EDC machines .

3. The finansial transaction system according to claim 1 and claim 2, wherein the mobile device can be used upon activation in the mobile device administration server.

4. The finansial transaction system according to any of claims

1 to 3 , wherein the mobile device administration server is able to provide financial transaction connection time for more than

20 seconds.

5. The finansial transaction system according to any of claims 1 to 4, wherein the mobile device administration server is further able to provide more characters to perform a financial transaction than 182 alphanumeric characters.

6. The finansial transaction system according to claims 5, wherein the number of characters for a financial transaction request can be added up to 1500 alphanumeric charaters.

7. The finansial transaction system according to any of claims 1 to 6, characterized in that the mobile device administration server will verify the simcard in a mobile device; check the software version of the mobile device; send an update data of software version to the mobile device; during the financial transaction, verify financial transaction authorized limit of a user; administer transaction requests from the mobile device and forward a response from the switch server in the financial institution to the mobile device.