WO2007010353A1

WO2007010353A1 - A system to enable a user to effect a payment to a third party and a method of operating the system

Info

Publication number: WO2007010353A1
Application number: PCT/IB2006/001946
Authority: WO
Inventors: Robert John Renfrew Taylor
Original assignee: Donald, Heather, June
Priority date: 2005-07-15
Filing date: 2006-07-17
Publication date: 2007-01-25
Also published as: ZA200605288B; GB0514602D0

Abstract

A method of operating a system to enable a user to effect a payment to a third party and a system therefor. The method comprises receiving data indicating that a user has paid funds into a first holding account (7), the data including it least an identity of the user and the amount of funds paid and storing the data in a database (6). A request to pay funds to a third party is received, the request including at least data identifying the user from whom the funds will be paid. A check is then conducted to see if the user has the requested funds available in the first holding account (7). If the user has the requested funds available then transmitting an instructing message to pay the funds to the requested third party and updating data in the database accordingly and if the user does not have the requested funds available then checking to see if the user has paid funds into the first holding account (7) even though the funds have not yet been received. In this case, an instructing message is transmitted to pay the funds to the requested third party utility supplier from a second holding account and updating data in the database (6) accordingly.

Description

A SYSTEM TO ENABLE A USER TO EFFECT A PAYMENT TO A THIRD PARTY AND A METHOD OF OPERATING THE SYSTEM

BACKGROUND OF THE INVENTION

This invention relates to a system to enable a user to effect a payment to a third party and a method of operating the system.

There are numerous systems and methods enabling users to effect payments to third parties, for example to purchase utilities and services. Nevertheless, there is a need for a method and system which is easy to use and manage and is cost and time effective.

From the utility and service supplier's point of view, it is particularly important that the method and system ensures effective debt collection or prepayment.

Existing prepayment methods and systems do not address some of the major problems facing utility and service providers. For example, if a utility or service supplier is prepared to accept payments at a number of points of sale, such as a chain of supermarkets, using existing methods and systems, there is a delay between the time of the purchase of the utility or service and the receipt of payment at the point of sale and the receipt of the payment by the supplier. This delay results in the user of the utility or service having to wait until the supplier can acknowledge receipt of the payment before having the benefit of the utility or service purchased and paid for.

Another example arises when a user purchases a utility or service and pays for it by cheque at a point of sale. In this instance, existing methods and systems may well result in the supplier crediting the user and allowing the supply of the utility or service to commence, only to discover later that the cheque was dishonored and therefore that the payment had not really been made. The supplier may never receive the funds but have supplied the utility or service.

Prepayment for utilities or services, which results in simultaneous receipt by the supplier, will eliminate the problem of potential bad debts for the suppliers of utilities or services. At the same time users of utilities or services will also benefit by earlier delivery of the utility or service.

Existing methods and systems for prepayment for utilities and services normally result in delays in users being credited by the supplier and therefore delays with commencement of delivery of the utility or service. To overcome these delays, the user might have to travel long distances with cash or spend time in queues to make payment at the offices of the supplier to ensure an immediate credit for the payment. This is particularly onerous for users who can only afford to purchase a small amount at a time or can ill afford the cost and time to travel to the suppliers' payment offices.

The present invention seeks to address both users' and suppliers' difficulties with existing methods and systems by providing an innovative method and system enabling the user to simultaneously purchase and benefit from a utility or service and the supplier to simultaneously receive payment.

SUMMARY OF THE INVENTION

According to a first example embodiment of the present invention, a method of operating a system to enable a user to effect a payment to a third party, the method comprising:

receiving data indicating that a user has paid funds into a first holding account, the data including at user data which can be used to identify the user and payment data indicating the amount of funds paid; storing the data in a database;

receiving a request to pay funds to a third party, the request including at least data which can be used to identify a user from whom the funds will be paid and the amount of funds to be paid;

checking to see if the user has the requested funds available in the first holding account;

if the user has the requested funds available then transmitting an instructing message to pay the funds to the requested third party and updating data in the database accordingly;

if the user does not have the requested funds available then checking to see if the user has paid funds into the first holding account even though the funds have not yet been received; and

if the user has paid funds into the first holding account even though the funds have not yet been received then transmitting an instructing message to pay the funds to the requested third party from a second holding account and updating data in the database accordingly.

The user data and the payment data may be received via a first communications network.

The request to pay funds to a third party may be received via the first or a second communications network.

In one example, if the funds to the requested third party are paid from the second holding account, then when funds are received in the first holding account from the user, transferring the funds to the second holding account. The first and second communications networks may be a computer network or a mobile communications network.

The method may also comprise the steps of receiving, via the mobile communications network, the request to pay funds to a third party and wherein the identification of the user from whom the funds will be paid may be an identification of the user's mobile telephone, such as the MSISDN of the telephone.

In one example, funds received into the first holding account are restricted to be used for the payment of pre-defined utilities and services.

According to a second example embodiment of the present invention, a system for enabling a user to effect a payment to a third party comprises:

a database for storing data;

a communication means for receiving, via a first communications network, data indicating that a user has paid funds into a first holding account, the data including at least user data which can be used to identify the user and payment data indicating the amount of funds paid, the communication means further for receiving, via the first or a second communications network, a request to pay funds to a third party, the request including at least data identifying the user from whom the funds will be paid and the amount of funds to be paid;

checking means to check if the user has the requested funds available in a first holding account or has paid funds into the first holding account; and

payment means responsive to the checking means so that if the user has funds available then the payment means transmits an instructing message to pay the funds to the requested third party from the first holding account or if the user has paid funds into the first holding account even though the funds have not yet been received then transmitting an instructing message to pay the funds to the requested third party from a second holding account and updating data in the database accordingly.

The payment means may further execute that if the funds to the requested third party are paid from the second holding account, then when the funds are received in the first holding account, transferring the funds to the second holding account.

The first and second communications networks may be a computer network or a mobile communications network.

In one example, the payment means restricts funds received into the first holding account so that these funds are restricted to be used for the payment of pre-defined utilities and services.

BRIEF DESCRIPTION OF THE DRAWING

Figure 1 shows a schematic diagram of the system in which the present invention operates.

DESCRIPTION OF PREFERRED EMBODIMENTS

The present invention provides a method and system to enable users to effect payments to third parties ("users" or "user" as the context requires).

In one example embodiment, the payments are made to third parties that are the suppliers of utilities or services ("suppliers" or "supplier" as the context requires). In this example, the payment is a payment made to purchase utilities or services. Figure 1 shows a schematic diagram of the broader system in which an example embodiment of the present invention operates.

For purposes of the description below, utilities include such examples as water, electricity, TV, telephone and cellular telephone. Services include examples such as refuse collection, insurance, air travel and rates. It will be appreciated that the method and system could find application for other utilities or services.

The method and system described below finds particular use in the prepaid environment but could also be used in other environments.

Referring to the accompanying figure a server (not shown) is associated with a database 6. The database 6 is secure and typically cannot be accessed by any service provider or participating retail outlet. The database 6 will also typically not share any data with any other database and cannot be accessed externally other than by internal personnel within a structured security system.

The server and database 6 together form a central system.

The operator of the central system opens accounts ("holding accounts") at banks or other financial institutions at which subscribing point of sale outlets and suppliers ("subscribing point of sale outlets") have accounts.

Users of the system undertake an initial enrollment to participate in the system and to record third party beneficiaries that the user wishes to pay using the system.

These third party beneficiaries may be classified as primary and other beneficiaries during the enrollment and are recorded onto the database 6.

The user is issued with an identifier 1 , which may be in the form of a magnetic stripe card containing data stored thereon which identifies the user and/or the card. Alternatively, the identifier 1 may take the form of a smart card, for example.

Thus, the user uses a magnetic or any other type of card with means of identifying the card number so as to send relevant encrypted information to the database 6 together with other personal information as may be required for identification and security reasons

When the user wishes to effect a payment to a third party, for example to purchase a utility or service, the users pay the necessary funds at cash collection points. In this document such collection points are included in the term "subscribing point of sale outlets" as the context requires.

The user presents the card to a point of sale device 2, either directly or via a point of sale operator.

Thus, the point of sale device may be located at such a subscribing point of sale outlets which may be participating retail outlets, post office networks, banks and dedicated cubicles equipped with point of sale devices and drop safes for cash storage, for example.

Alternatively, and again by way of example and without limitation, the point of sale device 2 could be a server accessed via the Internet or another communications network whereby information is transmitted to the point of sale device 2. In this scenario the point of sale device 2 may form part of the central system. In any event, the information transmitted to the point of sale device will typically include a user identifier and confirmation of an amount paid. The information will also typically include payment information such as credit card details or Internet banking information, for example.

The subscribing point of sale outlets pay the received funds into accounts at banks where holding accounts exist. Irrespective of the point of sale and how the funds are accepted, data messages are transmitted to the server of the central system and received by a communication means of the central system via a communications network 4. The message includes data indicating that a user has paid funds via a subscribing point of sale outlet or other payment mechanism such as mentioned above into a holding account ("the first holding account"). The data includes user data which can be used to identify the user and payment data used to indicate the amount of funds paid.

Where the user is connected to a plurality of different third party suppliers, the user will obviously need to select the supplier to be paid at the point of sale. In such a case the user will typically have a plurality of different utility and/or service providers registered and available for selection. The selection will be keyed in at the point of sale device as described below.

In addition, users may be requested to enter a personal identification number (PIN) to confirm their identity.

Where the point of sale device 2 is located at a subscribing point of sale outlet, an operator of the point of sale device 2 will typically swipe the card 1 to check for validity and to check that the PIN is accepted.

The operator will then enter the beneficiary selection and the amount paid and the point of sale device will print a receipt for confirmation 3 for the user.

Behind the scenes, the funds received will be transferred via the normal banking mechanisms to a financial institution 5 of the participating retail outlet, for example. At a later time, the funds will be further transferred via a banking switch 8 to a first holding account 7 with the same or another financial institution. The user is not involved in the transfer of funds and these transactions will not necessarily be on a real time basis. It should be noted that payment transactions would only be initiated from the central database. In addition, the funds received will be recorded in the database 6 where it will be allocated to the utility or service provider selected by the user. Thus, at the time that the funds are paid into the first holding account, data is received by the server and stored in the database 6.

Whether the user simultaneously selects a service provider or whether the user later selects a service provider, the server will receive via communications means and the same communications network 4 or a different communications network 11 the request to pay funds to the third party service provider. The request will include at least data identifying the user from whom the funds will be paid and where applicable also an identification of the supplier.

In the illustrated embodiment, the second communications network 11 may be a mobile communications network or any other type of wireless communications network.

In this embodiment, the user uses a mobile communications device 10 to dial a special telephone number and then enters their identifier and their PIN using the mobile communications device 10. Next, the user selects the third party service provider and an amount to pay.

Their identifier could be the mobile telephone identification such as the MSISDN of the mobile telephone and/or the magnetic stripe card 1 number.

The user will typically receive a confirmation of the transaction which could be sent to the user by SMS, for example.

Verifying means incorporated in the central server receiving the request to pay the funds will verify the identity of the user and the user's PIN then checking means will check to see if the user has the requested funds available in the first holding account via the central database 6. If the user has funds available then payment means of the server will transmit an instructing message to pay the funds to the requested supplier 9 and data in the database will be updated accordingly. A message confirming the transaction with a reference number will be sent either to the mobile phone 10 or via any other predetermined method such as e-mail, for example.

It will be appreciated that the transmission of this pay message will typically be to the data base or the financial institution controlling the holding account but may be an internal transmission from one subsystem to another where the central system is incorporated into the systems of a financial institution.

Furthermore, if the user has paid funds into the first holding account and the funds have not yet been received at the financial institution controlling the first holding account because they have not yet worked through the banking system, but positive proof has been received for the payment or bank transfer, the central system will in any event transmit an instructing message to pay the funds to the requested supplier from a second holding account opened and adequately funded by the system operator and update data in the database accordingly.

This second holding account will typically be a holding account with a predetermined amount of funds therein which funds can be used in such a scenario to allow the transaction to proceed even though the funds have not been properly received in the first holding account, but positive proof has been received for the payment or bank transfer.

In this scenario, the movements of funds from the point of payment is tracked to replenish amounts paid out of the second holding account.

When the funds are received in the first holding account, these funds are transferred to the second holding account, which will be topped up by the equivalent amount paid out on the user's behalf. Appropriate action is taken to activate the utility or service via any communications network.

The central system may restrict funds received into the first holding account so that these funds are restricted to be used for the payment of pre-defined utilities and/or services. The system is designed to prevent the withdrawal of funds from a holding account if required by the operator. In these circumstances the system will only allow the payment from the holding account to a designated supplier or transfer to a second holding account to reimburse the operator for any payments made to a designated supplier from a second holding account as described above.

It will be appreciated that the methodology described above is implemented by the central system including means to implement the various steps.

The means may take the form of machine-readable medium on which is stored one or more sets of instructions (e.g., software) embodying any one or more of the methodologies or functions described herein. The software may also reside, completely or at least partially, within a main memory of the central system and/or within a processor during execution thereof by the computer system. The main memory and the processor also constituting machine-readable media.

While the machine-readable medium is typically a single medium, the term "machine-readable medium" should be taken to include a single medium or multiple media (e.g., a centralized or distributed database, and/or associated caches and servers) that store the one or more sets of instructions. The term "machine-readable medium" shall also be taken to include any medium that is capable of storing, encoding or carrying a set of instructions for execution by the machine and that cause the machine to perform any one or more of the methodologies of the present invention. The term "machine-readable medium" shall accordingly be taken to include, but not be limited to, solid-state memories, optical and magnetic media, and carrier wave signals. It will be appreciated that a primary third party beneficiary can be the supplier who can now activate services at any time upon receipt of electronically transferred amounts or messages from a trusted source with precise user account information and amounts.

It will also be appreciated that users will enjoy the flexibility of purchasing utilities and services at their convenience using their cellular telephones, Internet, normal telephones, POS's at subscribing point of sale outlets, or dedicated cubicles, for example.

Whilst a particular banking environment might necessitate the restriction of this system to the payment of pre-defined utilities and services and the subsequent withdrawal of funds from holding accounts, there is nothing in the invention that would preclude a user from designating a third party, not being a supplier of utilities or services, to be paid from the holding account for purposes other than the provision of utilities and services. In such circumstances wherever in this document reference is made to payments to suppliers of utilities and services, such reference can include any third party.

Because of the holding account concept embodied in the invention, no additional bank account would be required to enable the user to make such a transfer with the consequent cost saving. Therefore in more sophisticated embodiments, the user could be given the options of adding, subtracting and suspending beneficiaries.

In order to use the system an enrolment process may be required where a user's identification is recorded, participating beneficiaries are selected, details of the user's accounts with the selected beneficiaries are recorded on the central database and an identification card is issued. Beneficiary information can be amended later at the user's request. Furthermore it must be noted that when a cardholder plans to keep an available balance in the holding account, substantial user information must be recorded to re- activate the service in the case where a card is lost or stolen.

In one example embodiment, inter-account transfers are especially useful to migrant workers who wish to allocate cash to family members elsewhere.

The system is secure by design. A card can be reported stolen online from any POS, the Internet, mobile phone or land phone to the operating center, where it will be suspended immediately. If a third party is attempting a fraudulent transaction with a reported lost or stolen card, the operating center will be notified immediately and the exact location of the attempted fraud can be automatically forwarded to a law-enforcing agency, as each POS has unique terminal identification data that includes physical location, counter number etc. The database is secure and cannot be accessed by any service provider or subscribing point of sales outlet. The database will not share any data with any other database and cannot be accessed externally other than internal personnel within a structured security system.

At the time of registration, pre-numbered, and non-personalized cards will be linked to an internal account number.

Claims

CLAIMS:

1. A method of operating a system to enable a user to effect a payment to a third party, the method comprising:

receiving data indicating that a user has paid funds into a first holding account, the data including at user data which can be used to identify the user and payment data indicating the amount of funds paid;

storing the data in a database;

2. A method according to claim 1 wherein the user data and the payment data is received via a first communications network.

3. A method according to claim 1 or claim 2 wherein the request to pay funds to a third party is received via the first or a second communications network.

4. A method according to any preceding claim wherein if the funds to the requested third party are paid from the second holding account, then when funds are received in the first holding account from the user, transferring the funds to the second holding account.

5. A method according to any preceding claim wherein the first and second communications networks are a computer network or a mobile communications network.

6. A method according to claim 5 wherein the method comprises the steps of receiving, via the mobile communications network, the request to pay funds to a third party and wherein the identification of the user from whom the funds will be paid may be an identification of the user's mobile telephone.

7. A method according to claim 6 wherein the indication of the user's mobile telephone is the MSISDN of the telephone.

8. A method according to any preceding claim wherein funds received into the first holding account are restricted to be used for the payment of pre-defined utilities and services.

9. A system for enabling a user to effect a payment to a third party, the system comprising:

a database for storing data;

10. A system according to claim 9 wherein the payment means further executes that if the funds to the requested third party are paid from the second holding account, then when the funds are received in the first holding account, transferring the funds to the second holding account.

11. A system according to claim 9 or claim 10 wherein the first and second communications networks are a computer network or a mobile communications network.

12. A system according to any one of claims 9 to 11 wherein the payment means restricts funds received into the first holding account so that these funds are restricted to be used for the payment of pre-defined utilities and services.