WO2000070512A1

WO2000070512A1 - Direct payment through internet bank at electronic shopping

Info

Publication number: WO2000070512A1
Application number: PCT/SE2000/000882
Authority: WO
Inventors: Göran HOLM; Johan Hultman
Original assignee: Telia Ab
Priority date: 1999-05-03
Filing date: 2000-05-03
Publication date: 2000-11-23
Also published as: SE9901625D0

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. Inerconnection, between systems for electronic shopping and the systems of banks for performing of payment with regard to the buyer's own accounts, is executed.

Description

DIRECT PAYMENT THROUGH INTERNET BANK AT ELECTRONIC SHOPPING

TECHNICAL FIELD

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, where 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 that 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 a reliable communication for the parties 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 great 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. The web shop has a link to the Internet office of a bank, and the customers of this bank can, by following the link, pay at the virtual bank office. The payment is signed by the system the bank normally has for paying of bills/accounts. This often implies that the customer has some kind of special encryption via an equipment that is connected to the customer's computer. A special software in the customer's computer is also needed.

One problem for the web shop is that there are a lot of banks, and the consumers usually are customer in one bank only. There will be a lot of links if all customers shall be able to pay in this way. Another problem is that sellers, who show their products or services on Internet want that all customers shall come into possession of just their product, be able to pay in a uniform way, and get a receipt of the order.

An overall problem, which the present invention solves, consequently is to interconnect existing security systems for electronic shopping with systems at banks for execution of payments that charge a buyer's own accounts.

Another aim of the invention is to increase the security and minimize the number of times that a customer' s card number has to be transmitted via the network. The shops shall not have to accept a not signed and unidentified payment, and by that lack protection against fraud.

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 the possibility for a telecommunications operator to offer product- and service sellers a shopping service. 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.

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 wants in the same way 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 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.

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 an interconnection between systems for electronic shopping and the system at banks for execution of payments, with regard to the buyer's own accounts, is executed.

2. Procedure as claimed in patent claim 1, c h a r a c t e r i z e d in that the ES-system includes a common interface (gateway) to customers who intend to buy via the network.

3. Procedure as claimed in patent claim 1, c h a r a c t e r i z e d in signatures of data/information, which are transmitted between the ES- system and the bank system.

4. Procedure as claimed in patent claim 1, c h a r a c t e r i z e d in that, at purchase in a shop in ES-system, signed information about the purchase is generated, which is then transmitted to the Internet bank, at which the buyer is "transferred" to the bank, and sees a page with pay information filled in, to make it possible for the buyer to execute the payment, and after performed payment, status is sent back to the ES-system, at which status is shown to the buyer and the seller in later phases .

5. Procedure as claimed in patent claim 1, c h a r a c t e r i z e d in that the ES-system at regular intervals inquires at banks about performed back-reports.

6. Procedure as claimed in patent claim 1, c h a r a c t e r i z e d in that the security of the method of payment is high, since the own solutions of the banks are used for this.