News Column

Researchers Submit Patent Application, "Financial Transaction Systems and Methods", for Approval

June 5, 2014



By a News Reporter-Staff News Editor at Politics & Government Week -- From Washington, D.C., VerticalNews journalists report that a patent application by the inventor Smythe, Richard Stanley (Lower Templestowe, AU), filed on March 30, 2012, was made available online on May 22, 2014.

The patent's assignee is My Life It (aust) Pty Ltd.

News editors obtained the following quote from the background information supplied by the inventors: "There are numerous mechanisms by which one person (for example, a purchaser of goods and/or services) can transfer funds to another person (for example, a merchant who provides goods and/or services). For example, if the purchaser knows the account details of a merchant, the purchaser may directly deposit funds into the merchant's account. If the merchant possesses the appropriate equipment, the purchaser may use Electronic Funds Transfer at Point Of Sale (EFTPOS) equipment to execute the transfer of funds between accounts. Direct deposit of funds requires attendance at a bank branch, or access to banking computer systems (eg via the Internet). EFTPOS transactions require specialist EFTPOS equipment.

"Alternatively, the purchaser may use shadow accounts (such as those implemented by Paypal, Inc) to effect the transfer of funds. However, the use of such shadow accounts generally requires electronic access to the shadow account provider (eg via the Internet).

"In another alternative, the purchaser may also choose to use a credit card. Credit cards are a flexible payment mechanism. Point of Sale (POS) equipment may be used to capture the credit card and transaction details necessary for funds transfer. Paper-based imprinting systems may also be used to capture this information. Alternatively, relevant card information may be entered into a form in a website for purchases made over the Internet.

"Credit card fraud typically involves the misuse of credit card details, by a person other than the credit card holder. It is desirable to reduce the opportunity for credit card fraud.

"Where specialist equipment (such as POS equipment) is used to capture credit card details, the possibility of fraud is relatively low, assuming that the equipment has not been the subject of unauthorised tampering. However, such equipment is not always available. For example, it is inconvenient for tradespeople attending a customer's premises to carry mobile POS equipment in order to receive payment from a customer.

"Where electronic equipment for capturing credit card information and transaction details is not available, the credit card information is generally supplied to the merchant, together with an implicit authorisation that the merchant can use those details to execute a transaction. This situation is highly vulnerable to fraud perpetrated by the merchant, or by a person who either intercepts the communication between the customer and the merchant, or gains access to the merchant's records containing the credit card details.

"More recently, Internet banking and e-commerce have become more widely used as a mechanism for transferring funds. Internet banking, as the name suggests, requires Internet access (availability of which cannot be guaranteed at all points of sale), and e-commerce has some of the drawbacks referred to above, including that such transactions are highly vulnerable to fraud.

"It is desired to address or ameliorate one or more of the aforementioned shortcomings or disadvantages of the prior art, or at least provide a useful alternative."

As a supplement to the background information on this patent application, VerticalNews correspondents also obtained the inventor's summary information for this patent application: "The present invention provides a computer-implemented method for facilitating the transfer of funds from a sending account to a receiving account, the method including the steps of: receiving first data from a first device, the first data including: first transaction data representing a first portion of information required to transfer the funds; and second device identification data uniquely identifying a second device; transmitting request data to the second device identified by the second device identification data, at least a portion of the request data being derived from the first data; receiving from the second device second transaction data representing a second portion of the information required to transfer the funds; and generating combined transaction data from the first transaction data and second transaction data for subsequent transmission to a transaction processor.

"The present invention also provides a system for facilitating the transfer of funds from a sending account to a receiving account, the system including: a first message receiving component for receiving a first SMS message from a first device through a Short Message Service Centre, the first SMS message including: first transaction data representing a first portion of information required to transfer the funds; and second device identification data uniquely identifying a second device; a first message processing component for processing the first SMS message to generate a request SMS message; a request message transmitting component for transmitting the request SMS message through a Short Message Service Centre to the second device identified by the second device identification data; a second message receiving component for receiving a second SMS message from the second device through a Short Message Service Centre; the second SMS message containing data representing a second portion of the information required to transfer the funds; and a message combining component for combining information in the first SMS message with information in the second SMS message to generate combined transaction data for transmission to a transaction processor.

DRAWINGS

"Preferred embodiments of the present invention are hereinafter described, by way of example only, with reference to the accompanying drawings, wherein:

"FIG. 1 is a flow chart illustrating a method for facilitating the transfer of funds consistent with an embodiment of the present invention.

"FIG. 2 is an illustration of a system for facilitating the transfer of funds consistent with an embodiment of the invention."

For additional information on this patent application, see: Smythe, Richard Stanley. Financial Transaction Systems and Methods. Filed March 30, 2012 and posted May 22, 2014. Patent URL: http://appft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&u=%2Fnetahtml%2FPTO%2Fsearch-adv.html&r=903&p=19&f=G&l=50&d=PG01&S1=20140515.PD.&OS=PD/20140515&RS=PD/20140515

Keywords for this news article include: Legal Issues, My Life It (aust) Pty Ltd.

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Source: Politics & Government Week


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