WO2000067170A1

WO2000067170A1 - Payment by card at electronic shopping

Info

Publication number: WO2000067170A1
Application number: PCT/SE2000/000880
Authority: WO
Inventors: Göran HOLM; Johan Hultman; Örjan SANDELL
Original assignee: Telia AB
Current assignee: Telia Co AB
Priority date: 1999-05-03
Filing date: 2000-05-03
Publication date: 2000-11-09
Anticipated expiration: 2001-11-03
Also published as: SE9901626D0

Abstract

A procedure to make a direct payment via an open computer network from a subscriber who subscribes to a specific transaction service at a telecommunications operator. The open network is constituted by Internet which, in usual way, is interconnected with an operator's fixed and mobile networks; that a customer from the operator requests membership and registration of an account card/credit card to be used at payment over Internet, at which name, method of paying, address, personal code number and card number are stated, at which the electronic shopping system (ES-system) makes a check at database (DAFA/SPAR) to get the customer's address of registration, and then the system sends a mail to the customer's address of registration with information about the PIN-code the customer can use at paying via Internet.

Description

PAYMENT BY CARD AT ELECTRONIC SHOPPING

TECHNICAL FIELD

A procedure to make a direct payment via an open computer network from a subscriber who subscribes to a specific transaction service at a telecommunications operator, at which the open network is constituted by Internet, which in usual way is connected with an operator's fixed and mobile networks.

PRIOR ART

The most frequent way today to perform a payment over Internet is via charge card and encryption. With charge card is then meant all types of credit cards, pay cards or bank cards which are connected to Visa, MasterCard or equivalent service. This is the absolutely most common method of payment in the international Internet world.

The card number is sent to the shopkeeper via, for instance, a web form where a secure communication has been established between the customer' s computer and the server of the selling firm. Usually SSL (Secure Sockets Layer) is used; an encryption technology existing in most web servers .

The selling party also must have a secure communication with a bank, which shall decide if the purchase shall be allowed or not. Swedish banks do not at present acknowledge this system, but a number of Swedish firms are using it all the same by means of banks abroad.

The identification problem is not dealt with at all in this system. The SSL-protocol includes, to some extent, functions for digital signatures, but these are not used in practice. Regarding data integrity, the SSL-protocol provides the parties with a reliable communication where data integrity shall be maintained. An encrypted transmission cannot be intercepted/tapped without great difficulties, and interception/tapping is by that made more difficult, which should result in that people will be less afraid of using their card numbers.

However, a lot of people are feeling reluctant to let a shopkeeper, of whom they have not much knowledge, have their credit card number. He/she can abuse it, with intention, or unintentionally. Certainly the consumer will have his/her money back in the end, but there may be a lot of trouble.

The consumer, however, need no other arrangements than an ordinary credit card and can make his/her purchases rapidly and immediately, which makes impulse buying possible, with its good points and its bad points. A big disadvantage of this system is, of course, that the shopkeeper has no support to demand payment for the products and services that have been ordered and/or delivered. He/she will be paid in connection with that the purchase is made, but the consumer then can make a complaint about his/her purchase. Then it is the shopkeeper who has the burden of proof. The buyer does not sign his/her order, and identification of who has ordered cannot be made .

TECHNICAL PROBLEM

Several Swedish banks offer their customers to run their bank transactions via, for instance, a web based bank office when the customers are shopping over Internet. This then is done via a bank abroad, since today there does not exist any secure transmission accepted by the banks. Consumers do not wish that the data transmitted at purchase shall fall into the wrong hands. This applies to account information as well as purchase/shopping behavior. A lot of people therefore are worried about that somebody shall trade on their account numbers if they are transmitted via, for instance, Internet.

Not encrypted Internet transmissions are very insecure and it is quite possible that a dishonest person can " intercept/tap" the communication.

TECHNICAL SOLUTION

The technical solution is described in what is stated in patent claim 1.

ADVANTAGES

By the present invention, electronic shopping is improved by a shopping service being possible to be offered product- and service sellers by a telecommunications operator. The procedure according to the invention results in that the card owner does not need any specific software or equipment to execute a payment, and that the web shop will have a signed payment, and that it is not necessary to transmit the account number at each purchase.

The security of the method of payment is high, since the own solutions of the banks are used for this.

Further, it is very easy for the buyer to pay for purchases through the own Internet bank. LIST OF FIGURES

Figure 1 shows a schematic network configuration according to the invention in the form of a block diagram.

DETAILED DESCRIPTION

The invention is constituted by a method to make a direct payment via an open computer network from a subscriber who subscribes to a specific transaction service at a telecommunications operator. The open network is constituted by Internet, which in usual way is connected with an operator's fixed and mobile networks.

Selling and buying parties have to, in a business transaction, be sure of that they can identify each other. The buyer wants to know that he/she is paying to the true seller and not to a deceiver. The seller in the same way wants to be sure of with whom he/she is dealing. The buyer can, as we know, after performed purchase, claim that he/she has neither ordered nor received any product or service .

Further, one has to be assured of that nobody has changed the data one party transmits to another. This will be a big problem when data are transmitted over an open network.

Consumers do not want that the data that are transmitted at purchase shall fall into the wrong hands. This apply to account information as well as information about purchase/shopping behavior.

Not encrypted Internet transmissions are very risky, and is quite possible that a dishonest person can " intercept/tap" the communication. A seller who wants to be connected to the shopping system, subscribes at the operator's.

The subscription includes, if the customer so desires, that he/she will have access to space in the network that is exposed to customers over Internet. This includes a web shop where there is room for the products/services etc the seller provides for buying via Internet.

The subscription also implies that the seller will have confirmation by a signature that the purchase is made, and that payment has been made, and who the buyer is. This is done through the agency of the operator. The subscription means that the web shop, and consequently the seller, will be certified by the operator.

The customers who want to buy from the selling firms that have this type of subscription, register themselves with the operator and will have a specific PIN-code sent home via mail, or via SMS to the mobile. A customer who intends to use the system behaves in the following way when he/she wants to buy a product or a service via Internet. Enters in the form PIN-code and which brand (type of card) , and further indicates, in a specific menu, which language one wants to use on the Internet.

To make a purchase by means of credit card on the ES- system, is required a membership and a registration of the card.

At registration is stated name, personal code number, address, card number, and name of method of paying.

A check is made at DAFA/SPAR by personal code number to get the address where the person is registered. A comparison is made with the stated address.

A PIN-code is generated and sent to the address where the person is registered.

When the person has received the PIN-code, he/she can, at paying in the ES-system, select the name of the method of payment he/she registered and give the PIN-code.

The PIN-code is also intended to be possible to be distributed with SMS to a mobile telephone. The personal code number is then checked to a given mobile number.

Buyers who "visit" the shop can "walk around" and look at the different existing products. He/she can look at product catalogs etc, and see prices. Storefront is a catalog management system with this function, and this system is an operator controlled system. Existing products and their prices. As soon as a buyer buys anything, it is stored as an order in the transaction system. Name and address of the buyer etc, and all details regarding delivery and information about which method of payment the buyer has selected - payment by card or Internet bank. The way Transact modulates the payment is by different brands of card. There are different brands which corresponds to different ones, for instance Visa. At a purchase in a web shop in ES-system, signed information about the purchase is generated, which then is transmitted to the Internet bank. The buyer is "transferred" to the bank and sees a page with payment information filled in, to make it possible for the buyer to execute the payment. After executed payment, status is reported back to the ES-system. Status is shown to the buyer and to the seller in later phases. The seller can indicate payment as performed if reporting back has not been successful. A specific Transact agent manages a number of administrative functions and makes an inquiry via gateway about previously indicated payer if the purchase is OK. If everything is OK, the purchase is accomplished. Further, it manages all transactions and makes necessary checks, for instance that the sum of the purchase is kept within agreed limits.

The payment agent has the task to perform a number of predetermined payment operations, perform payments, reversions, crediting, depending on what happens to the payment .

It will be possible to enter to make forms regarding repayments if necessary.

Transact is a software which is implemented in a number of computers and web servers and in principle exists in Telia's network with a number of firewalls that protect Transact .

The invention is, of course, not limited to above described embodiment, but can be subject to modifications within the frame of the idea of invention shown in the following patent claims.

Claims

PATENT CLAIMS

1. A procedure to make a direct payment via an open computer network from a subscriber who subscribes to a specific transaction service at a telecommunications operator, at which the open network is constituted by Internet, which in usual way is connected with an operator's fixed an mobile networks, c h a r a c t e r i z e d in that a customer from the operator requests membership and registration of a charge card/credit card to be used at paying over Internet, at which name, method of paying, address, personal code number and card number are stated, at which the electronic shopping system (ES-system) makes a check at database (DAFA/SPAR) to get the customer's address of registration, and then the system sends a mail to the customer's address of registration with information about the PIN-code the customer can use at paying via Internet.

2. Procedure, as claimed in patent claim 1, c h a r a c t e r i z e d in that the PIN-code is distributed by SMS to a mobile telephone, at which the personal code number is checked against a given mobile number.