WO2001088770A1

WO2001088770A1 - An improved method of purchasing or hiring products on the internet

Info

Publication number: WO2001088770A1
Application number: PCT/AU2001/000608
Authority: WO
Inventors: David Gordon Attwells; Tony Khattar
Original assignee: David Gordon Attwells; Tony Khattar
Priority date: 2000-05-15
Filing date: 2001-05-15
Publication date: 2001-11-22
Also published as: AUPQ751700A0

Abstract

There is a method of conducting a product purchase or hire trasaction via the internet without the entry of a credit card number. The method includes the following steps. - a customer (1) accessing a shopping web site (1A) maintained by a merchant on the internet, - the customer (1) selecting the product for purchase or hire from the merchant, - the customer (1) accessing a second web site (2) maintained by a credit verification operator, - the customer entering personal identification information (3, 4) at the second web site (2), - the credit verification operator verifying the personal identification information against a data base (5A) containing one or more delivery addresses for the customer, - the credit verification operator validating the transaction with a credit source (6, 7), - the credit verification operator providing one of said delivery addresses to the merchant for delivery of the product (11), and - the credit source providing payment for said transaction to the benefit of the merchant (12).

Description

AN IMPROVED METHOD OF PURCHASING OR HIRING PRODUCTS ON THE INTERNET

BACKGROUND OF THE INVENTION

This invention relates to the marketing of goods and services.

More particularly, although not exclusively it discloses an improved method of purchasing or hiring products over the internet.

While the purchase or hire of products via the internet is faster and more convenient than conventional shopping it currently involves a substantial financial risk to the customer. In order to complete such transactions it is at present necessary for the customer to provide a credit card number to the merchant together with the authorisation to charge the account. However, once this card number is entered into the merchant's data base it is then possible for third parties (e.g. computer hacks or dishonest employees) to access it and make further unauthorised purchases. Indeed, credit card fraud is estimated to cost hundreds of millions of dollars annually.

SUMMARY OF THE INVENTION It is therefore an object of this invention to ameliorate the aforementioned disadvantage and accordingly a method of conducting a product purchase or hire transaction via the internet without the entry of a credit card number is disclosed, said method including the steps of :-

- a customer accessing a shopping web site maintained by a merchant on the internet,

- said customer selecting said product for purchase or hire from said merchant,

- said customer accessing a second web site maintained by a credit verification operator,

- said customer entering personal identif cation information at said second web site,

- said credit verification operator verifying said personal identification information against a data base containing one or more registered addresses of said customer,

- said credit verification operator validating- the transaction against a credit source, and

- said credit verification operator providing one of said registered addresses to said merchant for delivery of said product.

Preferably -the credit verification operator validates the purchase against a pre-approved credit limit from said credit source before issuing a payment approval directly to the merchant. Alternatively the operator may validate the transaction by reference to the credit source which in turn provides the payment approval to the merchant.

Preferably the personal identification information includes, but is not limited to, the customers telephone number.

It is further preferred although not essential to the invention that said credit source comprise a telephone service provider and that the customer be billed for said transaction on the telephone account.

BRIEF DESCRIPTION OF THE DRAWINGS One currently preferred embodiment of the invention will now be described with reference to the attached drawings in which:

Figure 1 is a flow chart showing the basic transaction steps for a customer purchase from an internet merchant, and Figure 2 illustrates a typical procedure by which a customer can register with said credit verification operator.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT Referring first to figure 1 the customer at 1 accesses an internet shopping site 1A maintained by a merchant and selects a product for purchase or hire. The customer then opens the appropriate icon to access a second web site 2 operated by the credit verification operator (hereinafter called "Secure Shop"). Upon an existing registration with Secure Shop being confirmed or established at 3, 4 as described later he enters his telephone number and/or PIN code. In the event that the customer is not already registered an opportunity is preferably provided at 5 for the customer to apply for registration. Secure Shop at 5A verifies the customers telephone number and/or PIN code against the telephone billing address on its data base. Secure Shop at 6 then validates the transaction with the credit provider at 7 which supplies a payment approval number to the merchant at 8. Preferably said payment approval number is unique to that particular transaction and therefore cannot be reused later for

unauthorised transactions. At 11 Secure Shop also provides the customer's confidential registered address to the merchant for delivery purposes. Preferable several delivery addresses may be maintained on file for selection of the customer.

Alternatively Secure Shop may approve the transaction directly to the merchant after clearing the transaction amount against a credit limit on its data base for the customer pre-approved by the credit provider.

The transaction is completed by the credit provider then depositing the transaction amount to the account of the merchant at 12 and billing the customer at 13. Preferably the amount being debited to the customer's account is also immediately confirmed to the customer by E-mail at 14. As mentioned earlier the credit provider may be either the telephone service provider or some other credit source such as Visa or the like.

Preferably as mentioned earlier internet facilities are provided at 15 by Secure Shop for initial registration of a customer, increase of credit limit, change/addition of registered addresses or the issue of a Secure Shop magnetically encoded card. This card is particularly unique because no numbers or other identifying particulars would be embossed on the face of said card. The card could be used when purchasing goods or services on credit other than over the internet. By information magnetically encoded thereon additional identification could be provided for credit purchases by swiping the card and entry of a PIN and telephone number. No signature would then be needed to complete the transaction.

It is envisaged that a customer would be able to establish an account with Secure Shop in three ways.

If the customer does not have a registered telephone account initial registration would be made by postal application to Secure Shop.

If the customer has a registered telephone account registration would be obtainable on the Secure Shop web site or at any internet merchant that offers the Secure Shop option.

As example of a customer registration procedure via the internet using a telephone number can be summarised as follows with reference to figure 2.

STAGE 1

(a) The customer 1' logs onto Secure Shop web site 1A',

(b) the customer follows directions to enter his telephone number e.g. 029934566. (c) the customer follows directions to enter his address e.g. 14/7 Kimberlie Street Sydney,

(d) the customer follows directions to enter his registered name for the aforementioned telephone number and address e.g. G. Gordon,

(e) the customer follows directions to enter his user name e.g. "JONNY T", and

(f) the customer follows directions to enter his E-mail address e.g. georgegordon@enet.com.au.

STAGE 2

(a) The above entered customer information is sent to a data base maintained by Secure Shop and cross- referenced with CPU2 (a telephone directory data base full time internet), and

(b) if the cross-reference matches then CPU2 forwards the information to CPU3 (Secure Shop data base with code access only) .

STAGE 3

(a) The customer is recorded into CPU3 and allocated a serial number e.g. 003622 and the information is sent to CPU4 which is a direct link with the credit provider 7' ,

(b) the credit provider 7* allocates a unique approval number e.g. AN4685 for each purchase and returns this to CPU4,

(c) CPU3 retrieves this approval number and files it with the previously allocated customer number e.g. 003632AN4685, and (d) CPU3 then provides a PIN and sends it via CPU1 to the customer for future use of his account.

Secure Shop now has on file only a serial number (e.g. 003632AN4582) of a customer G. Gordon of 14/7 Kimberlie Street Sydney. There is no credit card information or other confidential information on the customer at Secure Shop.

It will thus be appreciated that this invention at least in the form of the embodiment described provides a novel and improved method of purchasing or hiring products via the internet. Throughout the transaction the customer's credit card details are kept confidential and are not available to either the merchant or Secure Shop. Further, the delivery of the product is provided only to the customer's registered address which is preferably the billing address for the telephone account. Access to credit card details is thus denied to unauthorised persons and moreover the customer card holder is immediately made aware of all purchases through delivery to the registered address only.

It is to be understood however that the example described is only the currently preferred form of this invention and a wide variety of modifications may be made to the systen which would be apparent to a person skilled in the art. For example the amount and type of personal information required to register the customer may vary as could the formal procedure for validating or approving the transaction with the credit provider and merchant. The invention also extends to the use of any suitable type of software for running the system.

Claims

The claims defining the invention are as follows:

1. A method of conducting a product purchase or hire transaction via the internet without the entry of a credit card number, said method including the steps of :-

- said customer selecting said product for purchase or hire from said merchant,

- said customer entering personal identification information at said second web site,

- said credit verification operator verifying said personal identification information against a data base containing one or more delivery addresses for said customer,

- said credit verification operator validating the transaction with a credit source,

- said credit verification operator providing one of said delivery addresses to said merchant for delivery of said product, and

- said credit source providing payment for said transaction to the benefit of said merchant.

2. The method as claimed in claim 1 wherein said personal information includes a telephone number registered in the name of the customer.

3. The method as claimed in claim 2 wherein said personal information further includes said one or more delivery addresses and/or a PIN code.

4. The method as claimed in claim 3 wherein the credit source is a telephone service provider at which said telephone number is registered and the customer is billed for the amount of said payment on a telephone account.

5. The method as claimed in claim 4 wherein said one or more delivery addresses include a billing address for said telephone account

6. The method as claimed in claim 5 and including the further step of the credit source providing to said credit verification operator an approval number for said transaction, said approval number being linked to a serial number previously allocated to said customer by said credit verificatioon operator.

7. The method as claimed in claim 6 wherein in the event that the credit verification operator does not have said serial number allocated to the customer said customer is offered an opportunity to obtain registration with said credit verification operator.

8. The method as claimed in claim 7 wherein said registration includes the customer providing said telephone number and said one or more delivery addresses.

9. The method as claimed in claim 8 wherein said approval number is unique to said transaction.

10. The method as claimed in claim 9 and including the further step of the credit verification operator E-mailing information on the amount of said payment to the customer.

11. A method of facilitating a product purchase or hire transaction by a customer via the internet without the entry of a credit card number, said method including the steps of :-

- providing a web site for a credit verification operator whereby said customer can access a shopping web site maintained by a merchant on the internet, select said product for purchase or hire from said merchant, access said web site for said credit verification operator, and enter personal identification information at said web site for said credit verification operator,

- enabling said credit verification operator to verify said personal identification information against a data base containing one or more delivery addresses for said customer,

- enabling said credit verification operator to validate said transaction with a credit source, and

- enabling said credit verification operator to provide one of said delivery addresses to said merchant for delivery of said product.