WO2013177500A1

WO2013177500A1 - System and method for using scannable codes for electronic payment

Info

Publication number: WO2013177500A1
Application number: PCT/US2013/042614
Authority: WO
Inventors: Chad C. FISHER
Original assignee: On The Block, L.L.C.
Priority date: 2012-05-25
Filing date: 2013-05-24
Publication date: 2013-11-28

Abstract

A system for using a handheld device to transact product purchases using a scannable code. The handheld device has memory, software, a processor, a transmitter, a receiver and a display and runs a payment application. At least one payment account, such as a bank account, a credit card, a debit card, or the like, is associated with the payment application. When a payment is to be made with the handheld device at a point of sale, the user accesses the payment application and selects a payment account. The handheld device generates a scannable code on the device's display screen. The scannable code is then scanned by the retailer at the point of sale and the payment is made. This system provides the advantage of allowing the user to use their handheld device to transact purchases thereby eliminating the need to carry cash, checks, credit cards or debit cards.

Description

TITLE: SYSTEM AND METHOD FOR USING SCANNABLE CODES FOR

ELECTRONIC PAYMENT

CROSS REFERENCE TO RELATED APPLICATION

This application claims the benefit of U.S. Provisional Application No. 61/651,673 filed May 25, 2012 entitled "SYSTEM AND METHOD FOR USING SCANNABLE CODES FOR ELECTRONIC PAYMENT."

BACKGROUND OF THE INVENTION

This invention relates to electronic payment systems. More specifically, and without limitation, this invention relates to the use of scannable codes for electronic payment.

Conventionally, cash has been used to transact purchases. While the use of cash is convenient and efficient, various problems exist with the use of cash. Namely, cash is bulky and change is easily lost. Also, consumers are more likely to spend cash on impulse purchases from retailers who accept cash. Further, when using cash, purchasing power is limited to the amount of cash in the person's possession. In addition, there are certain risks associated with carrying cash. In the event that a person's wallet or purse is lost or stolen, there generally is no way to recuperate the value of what was lost as cash is a bearer note with no inherent security measures to protect against loss or theft. Also, carrying cash may expose the person to a higher risk of being mugged. Furthermore, there is no easy and convenient way to track purchases made with cash.

Checks were developed as an alternative to cash, but checks contain many of the same inherent problems as cash, while adding additional problems of their own, such as the often significant delay created at a point of sale by the consumer hand-writing a check.

To combat many of these problems, credit and debit cards were developed. Credit and debit cards are efficient space-wise and alleviate the need to deal with change. Credit and debit cards provide increased purchasing power while not exposing the user to the risks of carrying large amounts of cash. Also, credit and debit cards provide protection against loss or theft as they can be cancelled after it is discovered that the cards are lost or stolen.

Despite these advances and improvements, problems still remain with the use of credit and debit cards. Namely, when credit and debit cards are lost or stolen they can often still be used for a period of time until they are cancelled. This is because many retailers now allow consumers to scan cards at the point of sale without asking for ID. In addition, credit and debit card numbers can be copied or stolen without actually taking the physical card itself. Also, while people become ever-more dependent on their cell phones, many people do not want the inconvenience of having to carry credit and debit cards in addition to their cell phones.

Thus, it is a primary object of the invention to provide a method and means that improves upon the present state of the art.

Another object of the invention is to provide a flexible payment system.

Yet another object of the invention is to eliminate the need to carry physical credit or debit cards.

Another object of the invention is to provide a method and means of paying for purchases that is more convenient than using cash, checks, credit cards or debit cards.

Yet another object of the invention is to provide a method and means of paying for purchases that is more secure than using credit or debit cards.

These and other objects, features, or advantages of the invention will become apparent from the specification and claims.

SUMMARY OF THE INVENTION

A system for using a handheld device to transact product purchases using a scannable code. The handheld device has memory, software, a processor, a transmitter, a receiver and a display and runs a payment application. At least one payment account, such as a bank account, a credit card, a debit card, or the like, is associated with the payment application. When a payment is to be made with the handheld device at a point of sale, the user accesses the payment application and selects a payment account. The handheld device generates a scannable code on the device's display screen. The scannable code displayed on the device's display screen is then scanned by the retailer at the point of sale thereby transmitting payment information to the retailer and the sale is concluded. This system provides the advantage of allowing the user to use their handheld device to transact purchases thereby eliminating or reducing the need to carry cash, checks, credit cards or debit cards.

BRIEF DESCRIPTION OF THE DRAWING

The Figure is a plan view of the system. DETAILED DESCRIPTION OF THE PREFERED EMBODIMENT

This application incorporates by reference: Application Serial No. 61/650,195 filed May 22, 2012 entitled SCANNABLE CODE AND METHOD OF USE; Application Serial No. 61/815,309 filed April 24, 2013 entitled SYSTEM AND METHOD OF ACCESSING AN ONLINE AUCTION THROUGH AN AUCTION WEBSITE AND A DEALER WEBSITE; and PCT International Application No. PCT/US2013/042043 filed May 21, 2013, entitled SCANNABLE CODE AND METHOD OF USE.

With reference to the drawings, a system 10 and method for using a scannable code for electronic payment is presented.

The system includes at least one handheld device 12. Handheld device 12 is any electronic device which computes, sends, and receives and displays information. Handheld device 12 includes, but is not limited to, Smartphones, cell phones, mobile phones, tablet computers, portable computers, iPads®, iPhones®, Android phones, Google phones, BlackBerries® or the like.

Processing module 14 is connected to handheld device 12. Processing module 14 includes processor 16, memory 18, and instructions or software 20 which is stored on memory 18. Processor 16 is any electronic circuit or chip which processes information and executes computer programs to control handheld device 12. Processor 16 includes a CPU (central processing unit) a microprocessor, a data processor or the like. Memory 18 is any form of memory such as a hard drive, flash memory or the like which stores information, such as software 20, which can be accessed by processor 16. Processor 16 controls the function and operation of handheld device 12 including display 22, transmitter 24 and receiver 26.

Display 22 is connected to handheld device 12. Display 22 is any output device for the presentation of visual information on handheld device 12 or the like. Preferably, display 22 is a graphical user interface (GUI) that allows the user to interact with and control handheld device 12. Display 22 may include an LCD (liquid crystal display), LEDs (light emitting diodes), an electroluminescent display (ELD), a plasma display (PDP), an organic light-emitting diode display (OLED), Interferometric modulator display (IMOD, mirasol®), Retina Display, a touch screen or the like.

Transmitter 24 and a receiver 26 are connected to handheld device 12. These elements can be stand-alone elements, or alternatively they can be combined into a transceiver.

Transmitter 24 and receiver 26 are used to transmit and receive information over a wireless network 28. Wireless network 28 is any type of a connection to a network of computers that allows for the exchange of data without a direct wired connection. This includes a cellphone signal, wireless network signal, wireless internet, or the like.

Input device 30 is connected to handheld device 12 and processor 16. Input device 30 is any mechanism used to control handheld device 12 and processor 16 so that it operates in the manner desired. Input device 30 includes a touch screen, a touch pad, a keyboard, a mouse, an arrangement of buttons or switches, voice input, any other means of sensory input now existing or developed in the future, or the like.

Sensor 32 is connected to handheld device 12. Sensor 32 is any sensing device that detects when a specified condition occurs.

Handheld device 12 includes system software, which runs in the background and operates the overall functioning of the handheld device 12. Handheld device 12 also includes payment application 100, which performs functions above and beyond the overall functioning of handheld device 12. Payment application 100 is installed on handheld device 12. Payment application 100 is a type of software application commonly known as a "mobile app" or just "app". Payment application 100 may also be internet based, cloud based, or mobile internet based. Payment application 100 is designed to perform specific tasks, namely to facilitate efficient electronic payment using handheld device 12 as is described herein. Payment application 100 is displayed as an icon 102 on display 22. Alternatively, payment application 100 is displayed or accessed by alternative means depending upon developments in technology and common GUI and sensory input methodologies. When activated, payment application 100 is displayed on display 22 with an interactive user interface.

Payment application 100 has a database 104 which includes at least one payment account 108, such as a bank account, a credit card, a debit card, or the like, associated with, or stored within, the payment application 100. Preferably, a number of credit card accounts, debit card accounts and bank accounts are associated with payment application 100 in database 104 from which the user can select for payment. Each payment account 108 is associated with a third party vendor 110, such as a banking institution, a credit card company or the like, which services the payment account 108 and transacts funds from the payment account for payment. The user may also select at this time other optional criteria such as setting a limited time for which the payment account 108 may be used, a limitation on the store or category of store at which the account may be used, or any number of other such limiting criteria.

When the user has made these selections, including selecting which payment account 108 to use for a selected purchase, a scannable code 112 which contains all of the user's needed information within the code is displayed on display 22 of handheld device 12. In one arrangement, scannable code 112 is an optically scannable code such as a barcode or a QR code or the like. A barcode is generally known as an optical machine-readable representation of data which shows data about the object to which it attaches. Bar codes represent data by varying widths and spacing of parallel lines, and for this reason are sometimes referred to as linear or one-dimensional (ID). QR codes are generally known as a matrix barcode or two- dimensional (2D) code. QR codes have gained popularity in recent years due to their fast readability and large storage capacity as compared to ID barcodes. Barcodes and QR codes are generally read through a sensing module such as an optical scanner or camera.

Point of sale 200 (POS) is also part of system 10. POS 200 is any place where users purchase items such as stores, vending machines, casino machines, fuel pumps, ticketing booths, parking meters, or the like to name just a few. POS 200 has a scanning device 202 capable of scanning and interpreting scannable code 112. Scanning device 202 is connected to an electronic network, or the internet 204, over which the information from scannable code is transmitted.

In Operation: When a user wants to use handheld device 12 to pay for a purchase at a point of sale 200 the user activates handheld device 12 and selects the icon 102 for payment application 100. When payment application 100 opens, the user then selects which payment account 108 the user wants the funds to be withdrawn from, as well as selecting any other options available to the user. Once the payment account 108 is selected, a scannable code 112 is displayed on display 22 of handheld device 12 which contains all of the information selected by the user in the payment application.

The scannable code 112 is then scanned by scanning device 202 at POS 200.

Scanning device 202 interprets the information from scannable code 112 and connects to third party vendor 110 associated with the payment account 108 over electronic network 204. Sensor 32 of handheld device 12 senses that the scannable code 112 was scanned and automatically removes, deletes or permanently terminates the scannable code 112 from display 22, thereby preventing any future use or abuse of the unique scannable code 112 generated for that specific transaction. In one arrangement, the system 10 may provide for verification that a request for payment has been generated. This can either be a push system or a pull system. In a push system, when the user opens payment application 100, generates a scannable code 112 for payment, and that code is scanned by the retailer, the payment application 100 sends a request for payment through transmitter 24 of handheld device 18 over wireless network 28 to third party vendor 110. When third party vendor 110 receives this push request, third party vendor knows that payment has been authorized. Alternatively, in a pull system, when the third party vendor 110 receives a request for payment from POS 200, third party vendor 110 sends a request for verification over wireless network 28 to handheld device 12. This request is received by receiver 26 of handheld device 18 which is processed and verified by payment application 110. In one arrangement, the user is prompted by payment application 100 to verify payment by pressing a button that pops up on the display of handheld device 12, or entering a verification code, such as a PIN or the like, in a pop-up screen or display.

Alternatively, the user is prompted to verify payment in any other manner including but not limited to biometric verification. In response, payment application 100 sends a verification signal through transmitter 24 over wireless network 28. When third party vendor 110 receives this pull verification, third party vendor 110 knows that payment has been authorized. Once verification of the payment request has occurred, third party vendor 110 releases the funds to POS 200 and the transaction is completed. In the event the there are any errors or red flags, the third party vendor 110 can immediately contact the user through a text, an e-mail, a phone call, or other electronic communication to handheld device 18, which provides an immediate feedback loop in the event fraud is suspected. In addition, the phone number or e-mail address, the unique ID, serial number, IMEI, ICCID, or the like, assigned to the unique mobile device used in the transaction may also be retained by the retailer and/or submitted to the third party vendor 1 10 to provide further security confirmation, identification, and protection against fraud.

Similarly, the geographic location of handheld device 18 can be verified through the use of GPS or similar technology. That is, in the event that third party vendor 110 receives a payment request from a POS 200 at a specific location, third party vendor 110 POS 200 or application 100 uses GPS technology to verify that the handheld device 12 is at the same or an approximate location where the payment request is generated or within a predetermined area. This is accomplished either by pushing or pulling information (as is described above) on the geographic location through the use of transmitter 24 and receiver 26 of handheld device 18. In the event the geographic location of handheld device 18 syncs with the geographic location of the payment request, then the purchase request is verified. In the event that the geographic location of the handheld device 18 is disparate from the geographic location of the payment request, then a red flag is raised and the payment is not verified without further steps as is described herein.

Payment application 100 has a plurality of settings that allow the user to customize, modify and improve the use of the payment application 100. Namely, the scannable code 1 12 can be generated for one-time-use, meaning a different scannable code 112 is generated for each purchase. Alternatively, the same scannable code 112 is generated for each purchase. The user can also adjust the length of time that a scannable code 1 12 will remain valid for use, from just moments to minutes, hours or days. In the event that the scannable code 112 is not used within the prescribed amount of time the scannable code 112 terminates and cannot be used. In addition, the user can create a scannable code 112 that may only be used during a specific window of time occurring at some point in the future (for example, only on the weekend, or only during the business week for reasons including but not limited to issuing a weekly or monthly allowance).

In addition, the payment application 100, and/or the handheld device 12 itself can be password protected or encrypted so as to improve security. The security or encryption may be any means of common security or encryption measures, including but not limited to text password protection, pattern password protection, biometric scans, voice recognition, or the like.

In addition, in one arrangement, to improve security, the user can authorize or associate any of their payment accounts 108 to accept payment requests from their particular handheld device 12. That is, the third party vendor 110 such as a banking institution or credit card company is made aware or authorized to process any payment request from the user's particular handheld device 12. For purposes of verification a unique identification number, sequence or code is associated with each handheld device 12 such as the phone number or e- mail address, the unique ID, serial number, IMEI, ICCID, a secret code, a pin number, an ISP number, or the like. As this identification number is unique to the user's handheld device 12, any payment request that is not made from that specific handheld device 12 will automatically be denied by third party vendor 110. This will prevent the situation where the payment account 108 information is stolen and transferred to a thief s handheld device.

In addition, the scannable code 112 can be specialized by store name or store type. This information can be automatically generated from the GPS location of the handheld device 12 at the time the scannable code 112 is generated. Alternatively, this information can be entered manually by the user.

In addition, scannable code 112 can be limited by an administrator, such as an employer or a parent. In this arrangement, the scannable code 112 can be limited by amount, meaning that a single scannable code 112 can only purchase a maximum amount of goods. The scannable code 112 can also be limited by the types of goods that can be purchased. As an example, food and gasoline could be purchased, but not cigarettes and alcohol. The scannable code 112 can also be limited by time or issued periodically. As an example, the administrator could establish that a scannable code 112 be generated at the end of each week for $250.00 limited to food and gasoline purchases. In this way, parents or employers can control the spending habits of those under their supervision.

This system is a direct competitor to near-field communication (NFC) systems. The scannable code system 10 described herein has a competitive edge over NFC because it would not use airwaves or conventional wireless communication for transmission of scannable code 112, and therefore would be more secure, significantly less vulnerable, and less likely to be hacked. Personal and sensitive information could not be stolen by someone within near proximity to the handheld device 12 as there would be no means of intercepting the information transmitted by the scan of the scannable code 112.

Security is the major selling point of this system. All information is stored in the handheld device 12 securely. Even if the handheld device 12 is lost the personal information is secured and encrypted. This, combined with the ability to wipe a phone remotely (i.e. "Find My iPhone" App by way of example), results in a very minimal security risk. In addition, the scannable code 112 can only be used once, and may only be valid for a limited period of time, at a limited location, or for a limited type of purchase. The scannable code 1 12 is cued up while the user is in line, or when the user is ready to pay. This system is quick and easy, but even if the handheld device 12 is lost, no one could ever generate a new QR code without the appropriate password or security access.

This system is just like carrying your debit/credit card, but more secure. If a credit card is lost, anyone can use it right away. If a handheld device 12 is lost, no one can access it without the password or security access, and the user can remotely wipe the handheld device 12 if necessary. As such, this is much more secure than carrying debit/credit cards.

Furthermore, this system provides the benefit that after paying, a receipt and all coupons can be automatically generated and sent to the handheld device 12. There is no need to accept physical coupons or physical receipts or even to scan a scannable code to get the receipt or coupons - it's all integrated upon use the payment application.

Another attribute to this system is that the payment application 100 does not replace credit cards like services such as Dwolla attempt to do. In this arrangement, the payment application 100 partners with debit and credit card companies, banking institutions and other third party vendors 110 and simply offers another means of using such accounts in an easier and safer manner. As such, adoption by both retailers and third party vendors 110 will likely be significantly greater.

Online Purchase Example: This system can also be used for online purchases with this same method. The scannable code 12 would be generated as is described above, and then would be read or scanned by a webcam or other scanner/reader (scanning device 202) connected to the user's computer. As most laptops and computer monitors have webcams built in this may be more convenient to a user than typing in all purchase information into an online shopping website. In addition, iPads and iPhones also have cameras built in, allowing for payment by QR code for online purchases in an efficient manner. This allows for faster and easier purchasing through the use of scannable codes 112 and the payment application 100 as compared to the user finding their credit cards, keying in the 16 digit code, the expiration date, the name on the card, etc. In addition, the scannable code 112 could also transmit the user's shipping information, as previously stored in the payment application 100. In this arrangement, the system can use the IP address or other location of the computer from which the purchase was made to verify that the handheld device 12 is within the area around the user's computer from which the purchase was made.

This system 10 can also be used for pre-paid phone cards and pre-paid credit cards, using concepts above.

Online Food Purchase Example: Many restaurants offer take out service. However, take out service presents some unique problems, namely, the timing of the food preparation. As is described herein, when a customer places an online order for food from a restaurant, a scannable code 112 is generated and sent to their handheld device 12. When the customer arrives at the restaurant, the customer presents the scannable code 112 to the restaurant which scans the code 112. In the event that their food is not prepared yet, through the restaurant's internal data management system, this order is prioritized so that the customer's food is prepared as soon as possible. This arrangement will improve customer service and reduce the customer's wait time.

Casino Example: The above described scannable codes 112 can be used in association with casinos, i.e. at slot machines or tables. In this arrangement, scanners or canners 202 are built into the slot machines. A scannable code 112 is used to buy more tokens, or credits, or alternatively tokens or credits from the user's account are transferred to the slot machine or table. This eliminates the need to get up from the table or machine and allows the user to keep playing which increases the profit for the casino and improves the enjoyment of the player.

TV Show Voting Example: The above described scannable codes 112 can be used in association with television (TV) shows. Many TV shows, such as American Idol or the like, ask for viewer participation through voting. To streamline the process and encourage viewer participation, the TV program displays a scannable code 112, or a plurality of scannable codes on the TV screen. The user then uses their handheld device to scan the scannable code, which automatically initiates the voting process or transmits the user's vote. This voting information is passed over the electronic network 28, 204 causing the vote to be registered. In this way, voting is made easier and faster which encourages more viewer participation. In addition, by tying a user's vote to the unique ID, serial number, IMEI, ICCID, or the like, assigned to the unique mobile device used in the transaction, a show like American Idol can ensure a user may only vote once. Further, this system 10 allows users to vote without sending a text message, which is the current dominate method of viewers voting on TV shows. By eliminating the need to send a text message, the user will not pay cell phone charges associated with sending a text message, and accordingly, this may increase viewers' participation in voting on such TV shows.

In addition to voting, when the user scans the scannable code 112, the handheld device 12 automatically navigates to the website, mobile website, app, or the like associated with the particular program which is automatically displayed on the handheld device 12. From there, the user is presented with information or promotions related to the show. The user is also presented with other opportunities to interact with, be involved with or participate in the show. For example, the user is presented with additional scannable codes 112 or interactive links which when scanned or clicked sign the user up or provide the user with the opportunity to be signed up for e-mail notifications, register them for tickets to various events related to the show, such as a taping of the show or a nearby concert or appearance. This process of taking the user directly to the show's website after voting, or upon scanning a scannable code, streamlines the process of getting fans to the website, which increases website traffic and advertising revenue. This process eliminates the time consuming process of having to open a computer and type in the URL for the show.

Alternatively, when the scannable code 112 is presented on the screen and the user scans the scannable code, the user is taken directly to the website, mobile website, app, or the like associated with the program. Once on the associated site, the user is then presented with various ways to vote for their preferred contestant such as clicking a link or the like as is described herein.

Additionally, the system 10 and above-described TV show voting example can also be used in any situation where voting is conducted, and is not limited only to TV show voting.

From the above discussion, it will be appreciated that the system 10 presented offers many features and advantages over the prior art.

The system presented provides a flexible payment system that eliminates, limits or reduces the need for the user to carry cash, checks, and credit/debit cards. The system also improves the security of making product purchases over using conventional cash, checks or credit/debit payment systems. The system also provides a more convenient method and system for transacting purchases.

It will be appreciated by those skilled in the art that other various modifications could be made to the device without parting from the spirit and scope of this invention. All such modifications and changes fall within the scope of the claims and are intended to be covered thereby.

Claims

What is claimed is:

1. A system for using a handheld device to transact a product purchase using a scannable code comprising: a handheld device having memory, software, a processor, a transmitter, a receiver and a display; the handheld device electronically connected to a wireless network; a payment application installed on the handheld device; a payment account associated with the payment application; the payment account associated with a third party vendor; wherein when a user makes a purchase at a point of sale, the payment application displays a scannable code on the display of the handheld device and the scannable code is scanned at the point of sale using a point of sale scanning device; and wherein when the scannable code is scanned at the point of sale, the point of sale scanning device interprets the information from scannable code and connects to third party vendor associated with the payment account over electronic network, and payment is transferred from the payment account for the product purchase.

2. The system of claim 1 , wherein the payment account is serviced by the third party vendor.

3. The system of claim 1, wherein the scannable code is scanned a sensor senses that the scannable code was scanned and the scannable code is automatically removed.

4. The system of claim 1, wherein when the user makes a purchase at the point of sale, the user opens the payment application and selects the payment account from which funds are to be withdrawn for payment.

5. The system of claim 1, wherein the payment application generates a unique scannable code for each product purchase.

6. The system of claim 1, wherein when the payment application generates the scannable code, the payment application sends a request for payment to the third party vendor which authorizes payment.

7. The system of claim 1, wherein when payment is requested from the third party vendor, the third party vendor sends a request for verification to the handheld device.

8. The system of claim 7, wherein when a request for verification is sent to the handheld device the user verifies payment by entering a verification code.

9. The system of claim 7 wherein when a request for verification is sent to the handheld device the payment application displays a button that must be actuated by the user to verify payment.

10. The system of claim 1, wherein when the scannable code is scanned at a point of sale and a request for payment is made, the third party vendor verifies the geographic location of the handheld device using GPS.

11. The system of claim 10, wherein when the third party vendor verifies the geographic location of the handheld device using GPS, verification occurs when the handheld device is within a predetermined area.

12. The system of claim 1, wherein a plurality of payment accounts is associated with the payment application.

13. The system of claim 1, wherein the scannable code is active for a predetermined amount of time before permanently expiring.

14. The system of claim 1, wherein when the scannable code is scanned and payment is made a receipt of the purchase is automatically sent to the handheld device.

15. The system of claim 1, wherein the point of sale is a gaming machine in a casino.

16. A system for using a handheld device to transact a product purchase using a scannable code comprising: a handheld device having memory, software, a processor, a transmitter, a receiver and a display; the handheld device electronically connected to a wireless network; a payment application installed on the handheld device; a payment account associated with the payment application; the payment account associated with a third party vendor; a computing device having a scanning device, the computing device connected to the internet; wherein when a user makes a purchase online using the computing device, the payment application displays a scannable code on the display of the handheld device and the scannable code is scanned by the scanning device of the computing device; and wherein when the scannable code is scanned by the scanning device, payment is transferred from the payment account for the product purchase.

17. A system for using a handheld device to participate in a TV program, comprising: a handheld device having memory, software, a processor, a transmitter, a receiver and a display; the handheld device electronically connected to a wireless network; an application installed on the handheld device; wherein when a TV program displays a scannable code the scannable code is scanned by the handheld device; wherein when the scannable code is scanned by the handheld device, the application automatically initiates a voting process through the wireless network.