System and method for processing a beacon based purchase transaction

Abstract

In a purchase transaction between a merchant and a customer, a merchant device sends transaction information to a payment gateway and sends a beacon signal containing a transaction identifier to a customer mobile device. The customer mobile device sends the transaction identifier and payment information corresponding to a customer payment account to the payment gateway. The payment gateway applies the transaction identifier to access the transaction information received from the merchant device and sends purchase information based on the transaction information to the customer mobile device. The customer mobile device displays the purchase information to the customer, obtains an indication of customer assent to pay for the item and sends a confirmation of customer assent to the payment gateway. Upon receiving the confirmation of customer assent from the customer mobile device, the payment gateway processes the purchase transaction based on the payment account information.

Description

FIELD OF THE INVENTION[0001]The present invention relates generally to electronic payment transactions and, more particularly, to the utilization of mobile devices to perform and facilitate such transactions.BACKGROUND[0002]As mobile devices such as Smartphones become commonplace, they are increasingly equipped with technologies that allow them to perform a wide variety of functions. Such functions include purchase transactions in which customers utilize their mobile devices to facilitate payment for items at the point of sale. One approach utilizes Smartphones equipped with Near Field Communication (NFC) to enable customers to pay merchants without requiring the presentation of a conventional physical payment card such as a credit card. Having previously provided credit card information to his Smartphone, the customer pays the merchant by tapping or waving the phone closely over an NFC reader provided by the merchant.[0003]The NFC approach described above has limitations, however. ...

AI Technical Summary

Benefits of technology

[0005]The present invention provides, among other advantages that will be apparent to one of ordinary skill in the art from the description herein, a means of utilizing a customer's mobile device to perform a purchase transaction without requiring the customer to present a conventional credit card or to tap or wave the mobile device over a reader. Additionally, the present invention improves the effectiveness and efficiency of the transaction and / or simplifies the participation of the customer and the merchant by providing a means for immediate and direct communication of relevant data from the merchant to the customer. This allows, for example, the merchant to provide to the customer a means to uniquely identify the transaction to a payment gateway which can then process the payment.

Problems solved by technology

The NFC approach described above has limitations, however.

For one thing, the NFC reader is only able to obtain information from the phone if it is positioned in very close proximity, that is, within a few centimeters of the reader.

Furthermore, although the NFC approach allows the customer to provide information to the merchant via the reader, no means are typically available for the merchant to provide information directly to the customer phone.

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