WO2000079492A1

WO2000079492A1 - System and method for acquiring pre-paid products and services

Info

Publication number: WO2000079492A1
Application number: PCT/US2000/003294
Authority: WO
Inventors: Dean S. Keil
Original assignee: Keil Dean S
Priority date: 1999-06-17
Filing date: 2000-02-09
Publication date: 2000-12-28
Also published as: AU3593000A

Abstract

A system and method for point of sale purchase of pre-paid communication services using existing point of sale equipment. A customer desiring to purchase prepaid communication services goes to a merchant having a point of sale terminal. The merchant accesses a secure host processor that has access to telephone numbers and unique PINS which are assigned to the transaction. The customer pays for the desired services and the merchant dials the secure host and specifies the type of services to be purchased (add air time, cellular activation, calling card, internet access). The customer pays for the desired services and receives a receipt specifying a unique PIN associated with the transaction. The customer can then use the PIN when dialing for long distance and for adding further time to the customer account later if desired. The secure host aggregates transactions for the day and settles the merchant account via batch processing over the ACH network, allocating funds to service providers and merchants according to agreement. The invention thus converts the merchants existing POS terminal into a multifaceted prepaid Communication/Product Storefront.

Description

Title of Invention: System and Method for Acquiring Pre-paid Products and Services

Relationship to Other Applications This application is based upon and claims priority from Provisional Application No. 60/089,755, filed 06/18/98 under 35 USC section 119. Background of the Invention This invention relates generally to pre-paid communication services. More particularly the present invention is a system and method for paying for pre-paid cellular activations, pre-paid cellular air time, pre-paid long distance time, pre-paid Internet services, and financial transactions related thereto. Background of the Invention In today's environment, pre-paid telephone/long distance cards are offered at a huge number of retail outlets. These cards allow users to purchase a certain amount of time for long distance services at a fixed, favorable rate. However, those entities offering pre-paid communications services must maintain an inventory of pre-printed plastic or paper cards. Thus there is a production cost associated with branded pre-paid calling cards. Further, such cards must be stored in a secure area in order to be made available at the point of sale. Thus using pre-paid cards exposes the merchant to additional costs of storing such cards as well as exposing the merchant to the potential of theft and fraud if such cards are stolen. Alternatively it is possible for a merchant to use a "stand alone unit" by which cards are generated as needed for a particular customer. Thus a customer desiring to have a pre- paid calling card of a certain amount will pay the merchant for that pre-paid calling card and the merchant will thereafter generate a calling card with the appropriate amount of electronic funds available. This methodology also causes additional costs for the merchants since a unit specific to the generation of pre-paid calling cards must be maintained along with an inventory of blank cards onto which electronic funds are to be deposited. This system also requires the training of employees to operate the system. This type of unit can only generate pre-paid calling cards and cannot generate any other products or services. Security and fraud is still, however, an issue since it is possible for trained employees to generate fraudulent calling cards. Thus while fraud is perhaps less of an issue, there is still the cost of the purchase or long term lease of these stand alone units that is imposed on the merchant. What would therefore be useful is a system and method for allowing customers to purchase pre-paid communications services. For purposes of this application, pre-paid communication services means pre-paid cellular services, pre-paid long distance services, pre-paid Internet access services, and any other type of service that is amenable to pre-paying for service that is to be used in the future by a customer. The purchase of pre-paid communication services would be most useful if it could take place without the requirement for a merchant maintaining an inventory of specialized cards for that purpose. In addition it would be useful if such pre-paid communication services could be obtained without the need for the merchant to purchase and maintain any specialized equipment specifically for the purchase of pre-paid communication services. Summary of the Invention It is therefore an objective of the present invention to allow customers to purchase pre-paid communication services. It is a further objective of the present invention to allow customers to purchase pre- paid communication services at any point of sale typically available to customers such as merchants, food stores, ATM and other retail locations. It is yet another objective the of present invention to allow the purchase of pre-paid communications services at a merchant location without the need of point-of-sale (POS) terminals specific to the purchase of the pre-paid communication services. It is a further objective of the present intention to allow for the purchase of pre-paid communication services without the requirement of that the merchant maintain a stock of communication cards in fixed amounts. It is yet another objective of the present invention to allow the purchase of pre-paid communication services without the merchant having to maintain specific equipment and train employees specifically to issue pre-paid communication service cards. It is a further objective of the present invention to simplify the purchase of pre-paid communication services and the issuance of cellular and other types of telephones in a more efficient fashion. The present invention is an electronic system and method that enables users to purchase pre-paid communication services in a easy and efficient manner without the merchant having to store and issue plastic or paper cards for access. The present intention comprises a secure host processor having access telephone numbers and personal identification numbers (PIN'S). These access numbers and PINS are acquired by the merchant from a secure host server only when a customer desires to purchase pre-paid communication services. The host server also has software that allows a merchant to authorize that funds in a designated bank account of the merchant to be used for payments which are then transferred to the communication service provider or administrator. The key aspect of the present invention is that the system is implemented using the POS terminal and a printer of the type that is commonly owned by a merchant. No specialized equipment is required. The merchant will utilizes its existing equipment using the protocol of the present invention to access the secure host, authorize the amount of funds to be transferred for the pre-paid communication services and print a copy of the access number and/or PINS to be issued to the customer. In practice, the POS equipment at the merchant's location will request a specific transaction to occur. That specific type of transaction is designated as one for the purchase of pre-paid cornmunication services. Information relating to the customer will be stored on the central data-base of the system and appropriate authorization and approval information is returned to the POS terminal. In addition, the amount of services purchased by the customer and the amount for ACH transfer including the communication service providers payee information is returned to the POS terminal where it is stored and also provided as a written record to the customer. In the secure host, the server comprises software that interprets the information received and subsequently dictates the information that is to be returned to the merchant is POS terminal. For example, if a cellular activation is requested, the merchant would enter an appropriate code which tells the secure host what service is being requested (i.e. cellular activation). The appropriate dollar amount of the transaction (which might include the cost of the telephone and an initial payment for pre-paid communication services), the electronic serial number of the telephone being activated and other information to allow the transaction to proceed. After receiving the cellular activation information (for example) the secure host collects the information, the location of the merchant, searches the database of unassigned cellular telephone numbers, and returns an appropriate unused cellular telephone number and the secure ID (SID) to the merchant POS terminal. The information is printed on a "sales receipt" to complete the activation process. The customer can then use the telephone for the amount of time for which pre-paid communication services has been paid. When the customer needs to add time to the existing account, the customer can go to a merchant, dials the access number provided, enters the appropriate PIN, enters the appropriate code for the service desired (in this case adding time), the dollar amount of the time to be added, and the cellular telephone number to which the time is to be credited. The host receives the above information, checks the PIN number, the service code, the cellular telephone number (if an active number is being serviced) the dollar amount to be assigned to the specific PIN, and returns the information to the merchant for printing. Thus a customer simply goes to the merchant, and requests that time be added to the cellular telephone account. This is then added by the merchant using the existing POS terminal. If a calling card is desired by a customer, the customer simply goes to the merchant location to order the calling card (ie. long distance pre-paid calling card). In this transaction, the merchant enters the appropriate code for the desired service, (in this case the purchase of pre-paid calling card) and the dollar value of the card requested by the customer. The secure host reviews this request, the service code entered, and returns a PIN number along with an 800/888 number for dialing. Instructions for use of this 800/888 number are printed on the receipt along with the PIN for the customer to use. The customer simply then goes to any telephone, dials the 800/888 number, and enters the telephone number to be dialed together with the appropriate PIN. Thereafter the telephone call takes place as it would in any normal calling card situation. The present invention also allows the merchant to access the secure host on a daily basis to determine transaction totals for his review. Again, using a pre-defined code which designates functionality desired by the merchant, the host returns the transaction information that relates to the merchant for that day as of the time of the request. During each day or at specific intervals throughout the day, the secure host transmits to the communication service provider an agreed-upon portion of the total dollar value of the activity. This amount is transferred over the ACH network using offline debit/credit procedures known in the art. The appropriate funds are then withdrawn from the merchants designated pre-authorized bank account and credited to the correct entities. All transfers are done offline and electronically. Using the present invention, the limitations imposed on processing cellular activations, calling cards, additional air time cards and their associated expenses are avoided. No plastic credit cards etc. are used. Therefore the outlay of capital on behalf of the merchant is minimized. Further the fraud associated with stolen calling cards is also eliminated. The system can equally be used to obtain pre-paid Internet services through a merchant where the entity that is ultimately credited with services may be an Internet Service Provider (ISP) or other pay per-use Internet service provider. The system can operate in several different modes. When operating in an "open mode", the system will allow a customer the ability to go to any store or merchant that uses the system of the present invention and add time to the customer s cellular telephone number. The merchant simply sells the current time at the current market rate with the agreed upon distribution to the service provider taking place on a periodic basis throughout the day. When operating in a "closed" mode, the customer that purchases a cellular telephone, for example, from a certain location can only go back to that location or affiliated stores in order to add time to the cellular telephone number. Thus the system can be operated in closed mode in the form of a "private label" system. When operating in a "shared" mode, the system will allow two or more entities to share revenue from adding air time to telephones or to cards. When operating in a shared mode, the system configure that the host where the user ID and telephone radius and numbers are linked together. All tracking of profit or reconciling of funds occurs offline at a predetermined time. Thus the present invention is the system and method for activation of communication services, dissemination of pre-paid communication services, and system and method of sales using existing merchant equipment. Settlement of all accounts takes place offline thereby reducing the cost and risk that a merchant currently is exposed to through the use of additional equipment specific to the purchase of pre-paid communication services and/or the stocking of an inventory of pre-paid communication cards. Further details of the system will be apparent from the detailed description of the preferred embodiment that follows. Brief Description of the Figures Figure 1 illustrates the overall architecture of the present invention. Figure 2 illustrates the flow for adding time to a cellular telephone account. Figure 2(a) the receipt for adding cellular air time is illustrated. Figure 3 illustrates the flow for creating a calling card request. Figure 3(a) illustrates the receipt for a pre-paid calling card of the present invention. Figure 4 illustrates the flow for activation of a cellular telephone number. Figure4(a) illustrates the receipt for an activation of a cellular telephone number. Figure 5 illustrates the back end processing of the present invention. Figure 6 illustrates the transaction and funds flow of the present invention. Detailed Description of the Preferred Embodiment As noted above the present invention is a system for activation, dissemination and sales of pre-paid communications services using an existing equipment at a merchant. Referring to Figure 1, the overall architecture of the present invention is illustrated. A series of stores 10, 12, 14, 16, and 18 are all connected via a telephone or communications network to a secure host processor 20. In Figure 1 a form of telephone network is illustrated 32. However it is also within the scope of this invention to have the network be a wireless network communicating via satellite, an Internet work, or any other form of network wherein transactions can be communicated from the individual stores to the secure host processor 20. At each store a series of point-of-sale terminals of the type in use today (i.e. Nerifone and others) exist. These POS terminals 22, 24, 26, 28, and 30 all process requests for pre- paid communications services. Input from the POS terminals are received at an in-store processor and communicated to the host processor 20 in real time. The host processor then performs its back office functions as will be described later. Periodically during the course of the day the host processor settles accounts via the automated clearing house (ACH) network 34. Thus in appearance this network is similar to many networks that now exist. However the function of the network and its application provides major advantages for the purchase of pre-paid communication services. Referring to Figure 2 the flow associated with the addition of cellular air time to an account is illustrated. The POS terminal is initially on line with an idle prompt 36 which simply shows generally the merchants name, although this is not meant as a limitation. The merchant then dials the access number 38 to request services from the system of the present invention. The system then waits for an answer 40, becomes connected to the secure host processor 42 via the store computer/communication system. Merchant information is then transmitted to the secure host processor 44 and POS terminal reflects this activity. Note that the merchant information can be automatically programmed into the POS terminal or can be input by the merchant at the time of sale. The clerk is then requested to input the clerk ID 46 to allow the merchant to track the activity of the merchant's employees. The merchant then enters the service code 48 for the type of service requested from the secure host processor. For purposes of illustration in this Figure the number " 1 " means to air to add time to the cellular account of an individual having a particular phone number. The merchant then enters the dollar amount of the purchase for the customer 50. That dollar amount is then associated with a unique PIN for the dollar amount that is entered. This matching of PIN number with the dollar amount is accomplished by the secure host. The system then assigns a telephone number to the PIN 52 which is assigned to the electronic serial number of the cellular telephone. The system then returns to unique PIN number for the customer 54 and prints a receipt with the PIN number on it for the customer to retain for further reference 56. The system is then returned to the idle prompt 36 for the next transaction. Referring to Figure 2 (a) the receipt associated with adding air time to a cellular telephone number is illustrated. It can be seen from this receipt that the transaction type is identified the status of a particular PIN is shown (ie. whether the PIN is active or inactive). A "ticket" amount which is the dollar amount of the value of pre-paid communication services purchased, a PIN number which is assigned to a particular cellular telephone number. This PIN number is unique and different for every transaction. The phone number which is the cellular telephone number to which the PIN is assigned. Further the ticket contains a merchant identification information. This ticket is provided to the customer at the conclusion of the transaction thereby allowing the customer to have a paper record of the transaction to refer to later. Referring to Figure 3 the system flow for a calling card request is illustrated. The system initially displays an idle prompt which may comprise the merchants name 36. The merchant then initiates the transaction and dials the secure host processor 38. The system thereafter waits for a response from the host processor 40. The POS terminal then becomes connected 42 to the host processor and the merchant transmits merchant information 44 to the host processor. Again this information may be automatically transmitted as pre-programmed function of the POS terminal or it can be input by the merchant. The clerk operating the system then inputs the clerk identification 46 to allow the merchant to track the activity of the clerk. The merchant then enters a number indicative of the activity of requesting a calling card. For purposes of illustration this number "2" illustrates a function of requesting a calling card. The dollar amount of the calling amount is then entered 50 and the host processor assigns a unique PIN and 800/888 telephone number from the database. The PIN status is changed to "active." Thereafter the host returns the 800/888 telephone number together with the unique PIN to the POS terminal 60 and the receipt is then printed for the customer 62 with all the necessary information for the customer to make pre-paid long distance calls. Referring to Figure 3 (a) the customer ticket associated with the purchase of a long distance pre-paid calling card is illustrated. Merchant identification is shown on the ticket together with the transaction type "2" indicative in this example of the purchase of a long distance calling card. The status of the PIN is then indicated as "active" which shows to the customer that the PIN number can be used right away. The ticket amount is then shown which is the amount of the purchase associated with the PIN number. A PIN number is printed which is assigned to that particular customer. The phone number for the customer to dial in order to use the pre-paid services is also shown on the ticket. In addition instructions on how to use the pre-paid phone card which is printed for the user is also placed on the ticket. Referring to Figure 4 the system flow for cellular activation is illustrated. Here the merchant is selling a telephone to a particular customer. The POS terminal shows the idle prompt 36 which may be the merchants name. The merchant then dials the secure host 38 which is shown on the POS terminal. The POS terminal then indicates that it is waiting for a response from the secure host 40. Thereafter the POS terminal indicates that it is connected 42 to the host. The merchant then transmits merchant information 44 to the secure host which may be done automatically or entered manually by the merchant. The clerk is then prompted to submit the clerk ID 46 for tracking activity of the particular at the POS terminal. The merchant than enters a transaction number indicative of the type of transaction being requested. In this example the number "3" illustrates that the cellular activation request is being requested 64. The electronic serial number is then assigned to the transaction. The merchant then enters the dollar amount of the transaction 50 which is the amount equal to the phone calls, the activation costs, and the PIN value. The secure host then enters the electronic serial number to be assigned to the phone number and the system grabs a phone number to be used by the customer. This transaction is also assigned to a PIN for tracking within the system of the present invention. The system then returns electronic serial number, the secure identification number and the PIN number to the merchant POS terminal. This information is cross referenced from the merchant identification area of the host processor. A receipt is then printed with all the necessary information 70 for the customer to use the cellular telephone. Referring to Figure 4 (a) the customer ticket for cellular activation is illustrated. Merchant identification is shown together with the type of transaction "3" which indicates a cellular activation request. The status of the PIN is then shown. In this case "inactive" is shown since a certain amount of time is required to activate the cellular telephone number. The ticket amount is then shown which is the value of the activation charge plus the value associated with the PIN number. This value would mean that the customer has a certain dollar volume of telephone calls that can be made. The PIN number is also shown for the customer to use in requesting any services. The new cellular telephone number is listed on the ticket as is the electronic serial number for the cellular telephone in use. The secure ID is also printed for the user. In this particular ticket the warning that the cellular service will be active within 24 to 48 hours is also shown. Thereafter the customer can use the cellular telephone in the normal manner until the value of the PIN is reached. Thereafter using the services described in Figure 2 the customer can add more cellular air time to the customer's account. Referring to Figure 5 the back end processing is illustrated. Data is received from the merchant POS teπninal 72. This data is aggregated over the course of a day. The summary information is then sent for batch processing. This is the total amount that is held for electronic settlement. The information is then sent over the automated clearing house/Federal Reserve Network 76 for settlement at the conclusion of each business day. The system then reconciles the account and performs a bank card like closeout procedure which signals the readiness for initiating the electronic settlement of all transactions. Thereafter the merchants account is debited with the amounts that are to be assigned to, for example, the communication service provider 78. Amounts are thereafter credited to the time providers account and debited from the account of the merchant 80. Referring to Figure 6 the funds flow of the present invention is illustrated. Secure host 82 has unique PIN numbers and telephone numbers, as required, for transmission to the point of sale at a merchant 84. As the merchant receives funds from customers, those funds are deposited in the Merchant's bank 86. Simultaneously, information on the transactions made during the day are conveyed to the secure host which also has the capability to perform administrative functions associated with the present invention. Here the administrative function is illustrated as a facility 90 although this is not meant to be a limitation that this function be performed at a physically different facility from the secure host. Information received from the merchant is sent to the federal reserve bank 88 for the area in which the present invention is located. That information, in turn is forwarded to the merchant's bank 88 to effect the transfer of funds that must take place to pay the service providers for services. The merchant's bank 86 returns funds to the federal reserve bank 88 which in turn forwards the funds received to the present invention 92 for reconciliation with the service providers. Again this reconciliation function is represented as a separate facility in this figure 5, however, the function can also be carried out at the secure host. The present invention 92 then forwards funds, as agreed, toe service providers' banks 94 which pass the funds to the service providers 96 or stores the funds in an account for the benefit of the service provider. A system and method for the purchase of pre-paid communication services has been illustrated. It will be appreciated by those skilled in the art that there are other variations of the present invention may be possible without departing from the scope of the intention as disclosed. For example, it would be possible to purchase at a point of sale pre-paid Internet services wherein time can be purchased from an Internet service provider who in turn provides pay/per use services to any number of databases. The ISP will ultimately settle with their respective service providers for the time given and used any particular customer. For the purposes of discussing and illustrating the present invention, communication products has been used as an example. However, the abilities given to the terminal using the system of the present invention will allow the merchant the ability to sell a wide variety of products such as concert ticket, movie tickets, sporting events, AAA roadside assistance, and flowers to name but a few items. The terminal of the present invention can also accept payments for cable companies, phone companies, insurance benefits and others. In short, any industry that requires a PIN or an account number information and or electronic settlements. With the system of the present invention, it is also possible to modify menus or change receipts with each transaction so that the receipt better suits the transaction in question.

Claims

I claim:

1. A method for purchasing and delivering prepaid communication services comprising: A customer ordering an amount of prepaid communication services;

A merchant accepting the order for prepaid communication services from the customer at a point of sale terminal;

The point of sale terminal communicating the order to a secure host;

The secure host accepting the order for prepaid communication services and processing the request, issuing a unique personal identification number (PIN), and communicating the unique PIN to the merchant's point of sale terminal;

Printing a confirmation of the purchase of prepaid communication services for the customer; and

The customer using the unique PIN to access prepaid communication services.

2. The method for purchasing and delivering prepaid communication services of claim 1 further comprising:

Generating unique PIN at the secure host.

3. The method for purchasing and delivering prepaid communication services of claim 1 wherein the communication services are from the group consisting of pre-paid calling card service, adding airtime to an existing cellular telephone number, and activation of a cellular telephone.

4. The method for purchasing and delivering prepaid communication services of claim 1 wherein ordering prepaid communication services further comprising paying for the prepaid communication services by a means from the group consisting of: cash, credit card, debit card, and stored value card.

5. The method for purchasing and delivering prepaid communication services of claim 1 wherein the secure host processing the request comprises determining if the method for paying for the prepaid communications services can be authorized.

6. The method for purchasing and delivering prepaid communication services of claim 1 wherein printing a confirmation of the purchase of the prepaid communications services comprises printing a receipt specific to the communication service being purchased.

7. The method for purchasing and delivering prepaid communication services of claim 1 further comprising the customer dialing a 800/888 telephone number of a communication service provider; inputting the PIN; the communication service provider associating the PIN with an amount of money; and the communication service provider deducting the cost of the customer telephone call from the amount of money associated with the PIN.

8. The method for purchasing and delivering prepaid communication services of claim 1 further comprising the secure host storing the order information from the merchant from a plurality of customers; the secure host communicating the order infromation from the plurality of customers to a federal reserve bank; the federal reserve bank communicating the plurality of order information to a bank having an account for the merchant; the bank for the merchant transferring funds associated with the order to the federal reserve bank; the federal reserve bank transferring the transferred funds to the secure server; and the secure server transferring the transferred funds to a second bank having an account for the communication service provider.