Abstract:
The Universal Financial Transaction System (UFTS) is an improved electronic payment system which uses encrypted software e to make financial transfers electronically. The UFTS operation is not limited to personal computers like the current online payment system. Moreover, it can be downloaded and operate on any electronic device such as mobile phones, PDA&#39;s, pocket computers, personal computer, electronic cash register or point of sale system. This improvement makes the UFTS as user friendly as any credit or debit card and as functional as any online banking system; thus it can be used to purchase items in any retail or online business and it can be used to transfer funds to any individual or entity among United States currency and any foreign currency. The UFTS does not charge the end-user for the financial transaction instead it generate its own revenue through transmittal of advertisement to the user&#39;s electronic device.

Description:
RELATED APPLICATION 
       [0001]    This application claims priority to provisional application No. 61/126,401, filed on May 5, 2009. 
     
    
     BACKGROUND OF THE INVENTION 
       [0002]    1. Field of the Invention 
         [0003]    This invention relate to a system and methods for completing financial transaction using electronic devices including but not limited to computers, mobile phones and PDA&#39;s; and in particular to methods to make safe and secure financial transactions among any currency and from any source and location, all electronically 
         [0004]    2. Description of Related Art 
         [0005]    The current electronic payment systems are mostly online payment systems which allow individuals to make financial transactions electronically by using encrypted software. These funds can be used to pay for online auctions, online goods and services, make online donations or electronically send cash to someone. However, they don&#39;t allow individuals to purchase goods or services at retail stores because they can not be made to be used with mobile devices such as cellular phones, PDA&#39;s, mobile computers and etc. 
         [0006]    In addition, the individual&#39;s funds reside in the online payment system&#39;s account until the holder of the funds makes a financial transaction. Thus the online payment system is the middleman of such financial transaction. While most online payment systems make their money by charging fees for each financial transaction for the account holder, some make money by collecting interest on the funds held in their account by the account holder. Moreover such prior art systems are subject to identity theft which can completely exhaust all money in the account. In this invention, the consumer places on those money that he expect to spend in the near future, which of course is the maximum he can loose. 
         [0007]    When a merchant accepts a charge from a credit card or bank, the merchant pays interchange fee to the bank or credit card company. However, when a consumer uses an online payment system to perform such financial transfers, the online payment system pays said interchange fee and the online payment system is typically compensated by the fees they charge for the transfer. While some online payment systems are willing to make their services available for free, the most useful and reliable online payment systems are often not freely available. 
         [0008]    The present invention improves the financial transaction system by (1) generating it own revenue through the fees charged when any audio or visual advertisement, coupon and/or other marketing material is sent to consumer operating device and (2) allowing financial transactions between virtually any electronic device; for example it can be used to purchase goods in retail stores, in doing so allows the consumer to avoid carrying the numerous credit and debit cards. In addition, it makes safe and secure financial transactions among any currency and from any source without cost to the end-user. 
       SUMMARY OF THE INVENTION 
       [0009]    The present invention is an improved financial transaction system which uses encrypted software to make financial transaction electronically utilizing portable electronically devices commonly carried on one person. The present invention&#39;s operation is not limited to personal computers or restricted to home computers like the current online payment system. Moreover, it can be downloaded and operate on any electronic device such as mobile phones, PDA&#39;s and mobile or pocket computer. This improvement makes the present invention as user friendly as any credit or debit card (but not subject to the extreme of credit card theft) and as functional as any online banking system; thus it can be used to purchase items in any retail or online business and it can be used to transfer funds to any individual or entity among United States and any foreign currency. 
         [0010]    The present invention offers the functionality of any credit or debit card without the risk of a lost or stolen card, because it password protected; and encrypted software prevents interceptions and does not store any vital financial or consumer information on the operating device. 
         [0011]    The present invention can generate its own revenue through sending electronic advertisement, coupons and/or marketing material for a fee to that of the advertiser. For example during or at any time before or after a financial transaction, an advertiser is charged a fee to send a visual or audio advertisement to consumer&#39;s operating device, which can be tailored to the vendor specific line of goods and/or the type of goods just purchased the consumer. 
         [0012]    In accordance with the above, the present invention has been summarized to include the more important features so it may be better understood below in description of the preferred embodiment. 
     
    
     
       BRIEF DESCRIPTION OF FIGURES 
         [0013]      FIG. 1  is a block diagram illustrating an exemplary financial transaction that may be used in a point of sale or an online purchase system via any electronic device. 
           [0014]      FIG. 2  is a block diagram illustrating an exemplary financial transaction that may be used to transfer funds to another person via any electronic device. 
           [0015]      FIG. 3  is a flow diagram illustrating an exemplary process of a consumer or transferor creating account with the Universal Financial Transaction System and funding that account and then installing the application that interfaces with the UFTS on their electronic device. 
           [0016]      FIG. 4  is a flow diagram illustrating an exemplary process of business, vendor or transferee creating an account with the Universal Financial Transaction System and then installing the application that interfaces with the UFTS on their electronic device. 
           [0017]      FIG. 5  is a flow diagram illustrating an exemplary process of Universal Financial Transaction System performing financial transaction. 
       
    
    
     DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS 
       [0018]    As required, detailed embodiments of the present invention are disclosed herein; however, it is to be understood that the disclosed embodiments are merely exemplary of the invention, which may be embodied in various forms. Therefore, specific structural and functioning details disclosed herein are not to be interpreted as limiting, but merely as a basis for the claims and as a representative basis for teaching one skilled in the art to variously employ the present invention in virtually any appropriately detailed structure. 
         [0019]    Additionally, embodiments of the invention will now be described with reference to the accompanying Figures, wherein like numerals refer to like elements throughout. The terminology and verbiage used herein is intended to better enable a person to understand the invention and therefore, such verbiage is not intended to be interpreted in any limited or restrictive manner, simply because it is being utilized in conjunction with a detailed description of certain specific embodiment s of the invention. Furthermore, embodiments of the invention may include several novel features, no single one of which is solely responsible for its desirable attributes or which is essential to practicing the inventions herein described. 
         [0020]    Reference is now made to the drawings accompanying this application.  FIG. 1  is a block diagram illustrating an exemplary financial transaction that can be used in a point of sale or an online purchase system via any electronic device. The term “system”, as used herein, means, but is not limited to software or hardware component. The system can be stored on addressable storage medium, processors, hard drives or accessible memory. The system can include processes, functions, attributes, procedures, encrypted software and subroutines, segments of program code, drivers, modules, firmware, computer programs, source code, micro code, circuitry, data, databases, data structures, tables, arrays and variables. The term “business”, as used herein, means but is not limited to a retail store or vendor, online store or vendor and merchant. 
         [0021]    As illustrated in  FIG. 1 , the Universal Financial Transaction System (UFTS)  100  communicates with business or vendor&#39;s electronic device  300  and consumer&#39;s electronic device  200 . The consumer&#39;s electronic device  200  and the business or vendor&#39;s electronic device  300  contains an interface application which allows communication with the UFTS and allows communication with each other.  FIG. 1  also includes numbered steps, signified by numbers in the arrows that illustrate the order of information flow in completing a typical financial transaction. 
         [0022]    In operation, the business or vendor&#39;s electronic device  300  communicates with the consumer&#39;s electronic device  200  where the consumer is attempting purchase a product from business (step  1  of  FIG. 1 ). The communication between the business&#39;s electronic device  300  and consumer&#39;s electronic device  200  is accomplished by any wireless communication system such as wireless internet, mobile communication system or networking, Bluetooth or Wi-Fi. Moreover the consumer need not be in the business place of business, for example the consumer can refer to a product or catalog number of a particular vendor from a remote location. 
         [0023]    In one embodiment, the consumer enters a retail store to purchase a product. The consumer&#39;s electronic device  200  is a mobile phone, PDA or pocket computer. The business&#39;s electronic device  300  is a point of sale system or electronic cash register. The consumer brings the product to the cashier for purchase and the cashier scans the product or manually enters the product information. Then the cashier, via the application that interfaces with the UFTS  100  and the business&#39;s point of sale system or electronic cash register  300  wirelessly sends to the consumer&#39;s mobile phone, PDA or pocket computer  200  the product information and price, and business&#39;s deposit account information. The consumer receives the product information and price, and the business&#39;s deposit account information on the consumer&#39;s electronic device  200 , via the application that interfaces with the UFTS. 
         [0024]    Step  2  of  FIG. 1 , the consumer with their secure user identification and personal identity number (PIN) logins into the UFTS  100  via consumer&#39;s electronic device, then consumer electronic device  200  wirelessly transmits the product information and price, and business deposit information  230  to the UFTS  100 , when the consumer elects to complete financial transaction. In one embodiment, the consumer using their mobile phone&#39;s  200  wireless network transmits the product information and price and business&#39;s deposit information  230  to the UFTS  100  to approve the purchase of the product. In another embodiment, the consumer using a PDA  200  or pocket computer  200  wirelessly transmits the product information and price and business&#39;s deposit account  230  information to the UFTS  100  to accept the purchase of the product. 
         [0025]    Step  3  of  FIG. 1 , concurs simultaneous with step  2  of  FIG. 1 , where the UFTS  100  wirelessly transmits to the consumer&#39;s electronic device  200  advertisement, coupons and/or marketing material  600 , then at the completion of the financial transaction in step  2  of  FIG. 1 , the UFTS  100  send a notice to the consumer electronic device  200  verifying the completion of the financial transaction. In one embodiment, the UFTS  100  wireless transmits the advertisement  400  to the consumer&#39;s mobile phone  300  for audio and/or visual viewing of cached, streaming video, SMS images and sounds or MMS images and sounds. Then the UFTS  100  sends a verification notice to the consumer&#39;s mobile phone  200 . In another embodiment, the UFTS  100  wirelessly transmits coupons to the consumer&#39;s PDA Or pocket computer  200  for audio and/or visual viewing of cached, streaming video, SMS images and sounds or MMS images and sounds. Then the UFTS  100  sends a verification notice to the consumer&#39;s PDA or pocket computer  200 . 
         [0026]    Step  3 A in  FIG. 1 , the advertiser electronically sends advertisements, coupons and/or marketing material to the UFTS  100  and the UFTS  100  charges the advertiser a fee for each advertisement, coupon or marketing material  600  sent to the consumer&#39;s electronic device  200 . 
         [0027]    Step  4  in  FIG. 1 , the UFTS  100  sends a verification notice to the business&#39;s electronic device  300  upon completion of the financial transaction described in step  2  in  FIG. 1 . In one embodiment, the UFTS  100  sends a notice verifying that the financial transaction, purchase of product, was successful, to the business&#39; electronic cash register or point of sale system  300 . 
         [0028]    Step  5  in  FIG. 1 , the business&#39;s electronic device  300  sends receipt of the purchase of the product to the consumer&#39;s electronic device  200 . In one embodiment, the business electronic cash register or point of sale system  300  wirelessly sends the consumer&#39;s mobile phone  200  a receipt of the purchased product. In another embodiment, the business electronic cash register or point of sale system  300  via Bluetooth, Wi-Fi or wireless internet sends a receipt to consumer&#39;s PDA or pocket computer  200 . This advertisement  600  can be either cached, streamlined or SMS text to the Consumer&#39;s electronic device  200 . 
         [0029]      FIG. 2  is a block diagram illustrating an exemplary financial transaction that may be used to transfer funds to another person via any electronic device. The term “system”, as used herein, means, but is not limited to software or hardware component. The system may be stored on addressable storage medium, processors, hard drives or accessible memory. The system may include, processes, functions, attributes, procedures, subroutines, segments of program code, drivers, modules, firmware, computer programs, source code, micro code, circuitry, data, databases, data structures, tables, arrays and variables. The term “transferor” as used herein, means, but is not limited to any person or entity. The term “transferee” as used herein, means, but is not limited to any person or entity. 
         [0030]    As illustrated in  FIG. 2 , the Universal Financial Transaction System (UFTS)  100  communicates with transferor&#39;s electronic device  400  and transferee&#39;s electronic device  500 . The transferor&#39;s electronic device  400  and transferee&#39;s electronic device  500  contains an interface application which allows communication with the UFTS and communication with each other.  FIG. 2  also includes numbered steps, signified by numbers in the arrows that illustrate the order of information flow in completing a typical financial transaction. 
         [0031]    Step  1  of  FIG. 2 , the transferor&#39;s electronic device  400  sends a request to UFTS  100  approving a transfer of credits from the transferor&#39;s account to the transferee&#39;s account. In one embodiment, the transferor&#39;s mobile phone, PDA or pocket computer  400  sends a wireless request to the UFTS  100  authorizing and approving the transfer of credits from the transferor&#39;s account on the UFTS  100  to the transferee&#39;s account on the UFTS  100 . 
         [0032]    Step  2  in  FIG. 2 , which concurs during the time it is required to approve and process a typical financial transaction in step  1  in  FIG. 2 , the UFTS  100  transmits advertisement, coupons or marketing material  600  to the transferor&#39;s electronic device  400 , then at the completion of the financial transaction in step  1  of  FIG. 2 , the UFTS  100  send a notice to the transferor&#39;s electronic device  400  verifying the completion of the financial transaction. In an one advantageous embodiment, the UFTS  100  electronically transmits advertisement, coupons or marketing material  600  to the transferor&#39;s mobile phone, PDA, pocket computer or personal computer for audio and/or visual viewing of cached, streaming video, SMS images and sounds, or MMS images and sounds. Then during the time it takes to approve and process the transfer of credits from the transferor&#39;s account to the transferee&#39;s account on the UFTS  100 , UFTS sends a notice verifying the completion of the financial transaction to the transferor&#39;s mobile device, PDA, pocket computer or personal computer. 
         [0033]    Step  2 A in  FIG. 2 , the advertiser electronically sends advertisements, coupons and/or marketing material to the UFTS  100  and the UFTS  100  charges the advertiser a fee for each advertisement, coupon or marketing material  600  sent to the transferor s electronic device  400 . 
         [0034]    Step  3  in  FIG. 2 , the UFTS  100  sends a verification notice to the transferee&#39;s electronic device  500  upon completion of the financial transaction described in step  1  in  FIG. 2 . In one embodiment, the UFTS  100  sends a notice verifying that the financial transaction, the financial transfer of credit from transferor&#39;s account to the transferee&#39;s account on the UFTS  100 , was approved and completed, to the transferee&#39;s mobile device, PDA, pocket computer and/or computer  500 . 
         [0035]    Step  4  in  FIG. 2 , the transferee&#39;s electronic device  500  sends acknowledgment notice to the transferee&#39;s account reflecting the deposit of credits from the transferor&#39;s account. In one embodiment, the transferee&#39;s mobile phone, PDA, pocket computer and/or personal computer  500  electronically or wireless sends to the transferor&#39;s mobile phone, PDA, pocket computer and/or personal computer  400  an acknowledgment notice describing the transfer of credits from the transferor&#39;s account on the UFTS  100  to the transferee&#39;s account on the UFTS  100 . 
         [0036]      FIG. 3  is a flow diagram illustrating an exemplary process of a consumer or transferor creating account with the Universal Financial Transaction System and funding that account and then installing the application that interfaces with the UFTS on their electronic device. The consumer or transferor used herein, means, the end user or any user of the UFTS. In block  210  the consumer or transferor creates a secure account with the UFTS system. The account is protected through the creation of user identification and personal identification number and/or personal password. This account can account can be created online through the use of the UFTS or through the completion of written application from UFTS or through the completion of a telephone application with the UFTS. 
         [0037]    In block  220 , the consumer or transferor deposit funds into the secure account held with the UFTS. The consumer, transferor or user of the UFTS, deposits funds into their account via credit card, debit card, check, cash or online banking. These funds are converted in the UFTS universal credits for any transaction. 
         [0038]    In block  230 , the consumer, transferor, or user UFTS, installs an application that interfaces with the UFTS on their electronic device, for example, mobile phone, PDA, pocket computer or personal computer. The application is encrypted software which only interfaces with the UFTS upon the submittal of the accurate user identity and password and/or personal identification number. Application does not store any such information such as the user identity, password, personal identification number or account information on the user&#39;s electronic device. 
         [0039]      FIG. 4  is a flow diagram illustrating an exemplary process of business, vendor or transferee creating an account with the Universal Financial Transaction System and then installing the application that interfaces with the UFTS on their electronic device. 
         [0040]    In block  310 , the business, vendor, transferee and any online merchant, business, vendor or transferee creates a secure account with the UFTS system. The account is protected through the creation of user identification and personal identification number and/or personal password. This account can account can be created online through the use of the UFTS or through the completion of written application from the UFTS or through the completion of a telephone application with the UFTS. 
         [0041]    In block  320 , the business, vendor, transferee and any online merchant, business, vendor or transferee installs an application that interfaces with the UFTS on their electronic device, for example, mobile phone, PDA, pocket computer, personal computer, point of sale system and electronic cash register. The application is encrypted software which only interfaces with the UFTS upon the submittal of the accurate user identity and password and/or personal identification number. Application does not store any such information such as the user identity, password, personal identification number or account information on the user&#39;s electronic device. 
         [0042]      FIG. 5  is a flow diagram illustrating an exemplary process of Universal Financial Transaction System performing a typical financial transaction. 
         [0043]    In block  110 , the Universal Financial Transaction System (UFTS) stores the account information of any user of the UFTS, for example the consumer, transferor, business, vendor, merchant and transferee, on an encrypted system that provides the highest level of security. The UFTS stores electronic advertisement, coupons and marketing material received from advertiser. 
         [0044]    In block  120 , the UFTS receives funds from the consumer, transferor or end user to be held in the account that they have with UFTS. 
         [0045]    In block  130 , the UFTS converts the funds received from the consumer, transferor, or end user into UFTS&#39;s universal credits. These credits are stored in the account held by these individuals or entities. 
         [0046]    In block  140 , the UFTS upon the request of consumer or transferor or user performs a typical financial transaction such as purchase of services or goods by sending a pre-determined amount of credits to a business or vendor, or a financial transfer of credits to another user account on the UFTS. 
         [0047]    In block  150 , the UFTS sends advertisements electronically to the consumer&#39;s or transferor&#39;s electronic device such a mobile phone, PDA, personal computer or pocket computer. The advertisement can be cached, video and audio streamlined, SMS, MMS to the consumer or transferor&#39;s electronic device. 
         [0048]    In block  160 , the UFTS charges the advertiser a fee each time they transmit an advertisement to a user&#39;s electronic device. 
         [0049]    In block  170 , the UFTS reconverts credits held in the account holder account into any national or foreign currency and allows these funds to be sent electronically or manually to the account holder or to the account holder&#39;s financial institution.