Abstract:
A method of managing some or all financial aspects of a commercial transaction entered into by a vendor and a consumer, and automatically and using a portable, internet enabled telecommunications device by the consumer, effecting payment by the consumer, extending to processing of payments by third parties such as banks, the Federal Reserve system, and the like. The method may include supporting elements such as establishing or accessing credit, issuing payment reminders, applying discounts, maintaining and transmitting transaction and account information, issuing coupons and gift cards, managing installment purchases, and transmitting postings pertaining to commercial transactions to social networking sites. All necessary inputs from the consumer may be of the type entered into the portable telecommunications device.

Description:
REFERENCE TO RELATED APPLICATION 
       [0001]    This application is a Continuation in Part of U.S. Non-Provisional Application No. 13/277,529, filed Oct. 20, 2011. 
     
    
     FIELD OF THE INVENTION 
       [0002]    This application relates generally to managing transactions and more particularly to systems and methods for electronically managing transactions. 
       BACKGROUND OF INVENTION 
       [0003]    The field of processing of commercial transactions, such as retail purchases, impinges upon convenience for both vendors and purchasers. Currently, the most widely used system utilizes a cash register located at the point of sale. A clerk enters pertinent data into the cash register, such as the nature of merchandise being purchased, the price, the quantity or weight of the merchandise, and the like. Payment may be made electronically using credit or debit cards or the like, as well as by cash or check. A paper receipt is typically generated following payment. 
         [0004]    Electronic processing of payment may be made, using wireless and hardwired telecommunications systems. This processing is increasingly being done over the internet. While point of sale transactions include the use of the internet for the purposes of processing credit or debit card payments, these transaction still frequently require physical cards, physical receipts and the like. Therefore, there is a significant need to further manage these transactions electronically to enhance security, increase the speed and eliminate the need for physical items such as plastic credit or debit cards, paper receipts, etc. Furthermore, electronic handling of the entire transaction may be extended to financial support institutions such as banks and their associated Automated Clearinghouse systems, the Federal Reserve System, and the like. 
       SUMMARY OF THE INVENTION 
       [0005]    The present invention contemplates an integrated, wireless system for managing most if not all informational aspects of a commercial transaction to be performed and completed, including participation of financially relevant entities not immediately participating at the point of sale. This is done using a wireless, portable, internet enabled telecommunications device by the consumer or purchaser. Once a transaction is entered, many functions which are ordinarily unseen to the purchaser may automatically be performed, such as transferring payments from an asset account or a credit account. Record keeping appropriate for both the vendor and the consumer may be automatically generated, with reports transmitted wirelessly to memory of data processors of either of these parties. The system may include transfer of funds from a bank or a credit line, essentially resulting in virtual generating and handling of checks for example. The system may integrate peripheral aspects of commercial transactions, such as factoring in discounts, implementing promotions, managing installment sales, generating virtual gift cards and coupons, and others. 
         [0006]    The system may automatically initiate functions performed after the point of sale by involved parties and institutions, using generally utilized telecommunications systems including the internet. 
         [0007]    The system may incorporate participation in social networking sites. The system integrates support functions such as archiving, encryption and other security measures, and others. 
     
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
         [0008]    The drawings, when considered in connection with the following description, are presented for the purpose of facilitating an understanding of the subject matter sought to be protected. 
           [0009]      FIG. 1  is a diagrammatic representation of the parties and apparatus of the novel system; and 
           [0010]      FIG. 2  is a block diagram summarizing steps of a method of conducting transactions using the novel system. 
       
    
    
     DETAILED DESCRIPTION 
       [0011]      FIG. 1  of the drawings depicts physical apparatus which may come into play in a system of conducting commercial financial transactions among consumers, vendors, and the national banking system. The system functionally brings together at least one consumer  10  having a portable, internet enabled telecommunications device having data entry and data receiving capability, which will be referred to hereinafter generically as a smartphone  12 , and at least one vendor having a payment data processor disposed to receive and transmit data wirelessly pertaining to commercial financial transactions related to commercial products sold by the vendor. In  FIG. 1 , the vendor may be for example any of conventional retailers or stores  14   a,  internet based merchants  14   b,  motor fuel retailers  14   c,  wholesalers  14   d,  industrial entities  14   e,  providers of professional services such as a doctor  14   f  and a lawyer  14   g,  an agency  14   h  providing services such as property management, a provider of lodging such as a hotel  14   i,  a provider  14   j  of office space, an institution such as a school  14   k,  or an agricultural facility  14   l.  The above are only representative of many types of vendors of goods or services or both. Hereinafter, vendors will be referred to in the singular as a vendor  14 , although obviously many vendors such as the vendors  14   a  . . .  14   j  and others may utilize the novel system. 
         [0012]    It should also be mentioned here that although commercial transactions conducted with the vendor  14  are referred to in terms of sales, other types of transactions such as leases and rental of goods and properties may enjoy the benefits of the novel system. Hence the term “sale” will be understood to encompass leases and rentals. 
         [0013]    The smartphone  12  is set forth as an advantageous form of portable, internet enabled telecommunications device, but need not be limited to the form depicted. The smartphone  12  may take the form of personal computers, desktop computers, laptop computers, tablet computers, or any suitable telecommunications device, including, but not limited to, VoIP telephones, smart telephones or wireless devices, such as cellular telephones, personal digital assistants (PDA), communications enabled mp3 players, etc. 
         [0014]    A vendor  14  may have a physical presence such as a store such as  14   a  and may have a point of sale data entry device or electronic terminal such as a cash register (not separately shown), which may comprise a data processor, memory, and have data entry and telecommunications capability and may be internet enabled for example. The electronic terminal ma be located at the physical point of sale of the vendor  14 , such as at a retail store such as the retail store  14   a.  Although these characteristics of the vendor point of sale data entry device are desirable, none of these characteristics of the vendor point of sale data entry device is critical to the invention. By contrast, the telecommunications capability of the smartphone  12  is critical to the invention. 
         [0015]    Because funds are electronically transferred, the consumer  10  may have a financial institution such as a consumer bank  16  having a financial account serving the consumer  10  enabling funds to be transferred in payment of purchases from the vendor  14 . For his part, the vendor  14  may have a financial institution such as a vendor bank  18  disposed to electronically accept payments and generate virtual receipts, electronic reports related to purchases and financial and other details related to the purchases. The consumer bank  16  and the vendor bank  18  preferably each comprising a data processor, memory, and apparatus for transmitting and receiving wireless communications, and to receive, record, process, and transmit data wirelessly. 
         [0016]    A gateway  20  serves to connect communications among the smartphone  12 , the vendor  14 , the consumer bank  16 , the vendor bank  18 , and involved additional parties such as the Federal Reserve System  22 . The gateway  20  may comprise a remote transaction server  26  including a database stored in memory (the database and memory are collectively indicated by a reference numeral  28 ) and associated telecommunications apparatus (neither separately shown) for transmitting and receiving wireless communications, and to receive, record, process, and transmit data pertaining to commercial financial transactions wirelessly. 
         [0017]    The function of the gateway  20  may be performed by a supervisory party separate from the vendor  14 , either of the banks  16  or  18 , or the Federal Reserve System  22 . For example, the supervisory party may provide its services as a commercial service to which a vendor  14  subscribes for example. Preferably, the gateway  20  may have a security facility  24  for securing telecommunications among the participants of the system of the present invention. The security facility  24  will be understood to encompass software and data processing apparatus as necessary to accomplish encryption of electronic messages and other security measures that may be desirable. 
         [0018]    Other functions that may be provided using software based and other facilities by the gateway  20  may include an archive  30 , a diagnostic facility  32 , and an administrative support facility  34 . These facilities  30 ,  32 ,  34  will also be understood to encompass software and data processing apparatus necessary to accomplish their intended functions. The facilities  24 ,  30 ,  32 , and  34  may be conventional, known, and therefore need not be detailed further herein. 
         [0019]    The gateway  20  may be configured to communicate payment instructions to the either or both of the consumer bank  16  and the vendor bank  18 , and the Federal Reserve System  22 . The gateway  20  may be configured to verify the authenticity of the consumer employing any suitable technique known in the art, including but not limited to passwords, cookies, biometric verification or any other suitable technique or means. The gateway  20  may be configured to verify payment and notify the vendor  14  directly or through the vendor bank  18  that it has received payment instructions from the consumer  10  (e.g., through the smartphone  12 ). The gateway  20  may also be configured to securely coordinate electronic payment from the consumer bank  16  to the vendor bank  18 . The gateway  20  may coordinate payments in any suitable manner. In one non-limiting example, the gateway  20  may employ existing credit card payment infrastructure, ACH, Check 21 , or any other suitable technique and/or infrastructure. 
         [0020]    The gateway  20  may also provide output files or otherwise generate bookkeeping materials for the consumer  10  and/or the vendor  14 . Illustrative transaction management and reporting options include, without limitation, Conversion Only, Verification with Conversion; Guarantee with Conversion, output files, return notification, returns re-presentment, retrieval request, refunds, credits, eChecks and statistic showing consumer product preferences, etc. 
         [0021]    As shown in  FIG. 1 , the gateway  20  may include a memory and a processor to accommodate the forgoing. However, it will be appreciated that the forgoing may be implemented in hardware, software, or a suitable combination of hardware and software, and which can be one or more software systems operating on a general purpose server platform. As used herein, a hardware system can include discrete semiconductor devices, an application-specific integrated circuit, a field programmable gate array or other suitable devices. A software system can include one or more objects, agents, threads, lines of code, subroutines, separate software applications, user-readable (source) code, machine-readable (object) code, two or more lines of code in two or more corresponding software applications, databases, or other suitable software architectures. In one exemplary embodiment, a software system can include one or more lines of code in a general purpose software application, such as an operating system, and one or more lines of code in a specific purpose software application. 
         [0022]    Wireless communication referred to herein may include both wireless communications and also hardwired links, and need not be exclusively wireless. Wireless communications may utilize any known and used type of communications, including for example fiber optics, cable, DSL, telephone lines, and other similar connections. Wireless communications will be understood to include where desired any number of networks capable of providing communications between the gateway  20 , the smartphone  12 , the Federal Reserve System  22 , the consumer bank  16  and the vendor bank  18 , and any vendor  20 . For example, the communications network may be one or more, or any combination of, wireless networks, data or packet networks, publicly switched telephone networks (PSTN), etc. 
         [0023]    With the apparatus which may be utilized by the novel system having mostly been described, and with reference to  FIG. 2 , the invention may be thought of as a method  100  of conducting commercial financial transactions among consumers such as the consumer  10 , vendors such as the vendor  14 , and the national banking system, which may comprise the consumer bank  16 , the vendor bank  18 , and the Federal Reserve System  22  at a minimum, utilizing a gateway such as the gateway  20 . The method  100  may comprise: 
         [0024]    a step  102  of conducting a commercial financial transaction by the consumer such as the consumer  10 , wherein a purchase is made by the consumer  10  for a commercial product of the vendor, such as the vendor  14 ; 
         [0025]    a step  104  of generating a payment authorization in payment of the purchase by the consumer  10  on the portable, internet enabled telecommunications device such as the smartphone  12  and transmitting the payment authorization to the gateway  20 ; 
         [0026]    a step  106  of receiving the payment authorization by the gateway  20 ; 
         [0027]    a step  108  of transmitting the payment authorization wirelessly to the consumer bank  16  by the gateway  20  responsively to receiving the payment authorization; 
         [0028]    a step  110  of effecting payment to the vendor  14  by the consumer bank  16 ; 
         [0029]    a step  112  of generating a payment report by the gateway  20 , wherein the payment report contains data identifying the purchase, the consumer  10 , and the amount paid by the consumer  10 , and transmitting the payment report to the vendor  10 ; and 
         [0030]    a step  114  of generating a virtual receipt and transmitting the virtual receipt to the portable, internet enabled telecommunications device such as the smartphone  12  of the consumer  10 . 
         [0031]    In the above method  100 , it should be noted that each step is effected automatically, predicated on performance of one or more prior steps. That is, no participant such as the consumer  10 , the vendor  14 , the consumer bank  16 , or the vendor bank  18  must initiate a command or other input to keep the process going until the final step such as the step  114  is performed. The result of this method  100  is that the commercial transaction may be completed seamlessly, with the consumer  10  being able to initiate and complete the transaction easily using the smartphone  12 . At the same time, necessary or desirable feedback to the vendor  14  is also seamlessly accomplished. 
         [0032]    It will also be understood that all references to transmitting data to a party such as to the consumer  10  or to the vendor  14  signify that data is transmitted to the data processing apparatus operated by that party. 
         [0033]    The method  100  may also comprise a step  116  of including a promotional feature as part of the commercial financial transaction, wherein value is credited to the consumer  10  automatically, and wherein the value comprises a discount which is not available to the general public and which is based on prior purchases by the consumer  10  from the vendor  14 . Such discounts have been known as loyalty discounts or benefits in conventional commercial practice. 
         [0034]    The method  100  may comprise a step  118  of including a promotional feature as part of the commercial financial transaction, wherein value is credited to the consumer automatically, and wherein the value comprises a predetermined, fixed dollar amount which is not available to the general public and which is based on prior purchases by the consumer  10  from the vendor  14 . This credited value may be a loyalty benefit or may be generated by another criterion. In a variation on the step  118 , the method  100  may comprise a step  120  of including a promotional feature as part of the commercial financial transaction, wherein value is credited to the consumer automatically, and the credited value comprises a predetermined percentage of the purchase price which is not available to the general public and which is based on prior purchases by the consumer from the vendor. 
         [0035]    The method  100  may comprise a step  122  of including a promotional feature as part of the commercial financial transaction, wherein value is credited to the consumer automatically, and the value is also offered to the general public as a discount applicable for a predetermined amount of time. The benefit of the step  122  is assuring existing customers that they will not be denied discounts which are offered to the general public. In an example of how this could be implemented, if a hypothetical discount were advertised by the vendor  14  and predicated upon customers bringing a printed coupon to the retail store, then existing customers unaware of the condition of bringing a coupon might be denied the discount. The step  122  prevents denial of such a discount to existing customers, and overcomes potential resentment that might arise from such denial. 
         [0036]    As presented herein, promotional features have been described as taking the form of monetary value. Promotional features could take other forms, such as conferring privileges to the recipient, such as authorizing entry to or participation in specified events that are otherwise restricted from participation, or may otherwise take the form on non-monetary value. 
         [0037]    The method  100  may comprise a step  124  of, responsively to the purchase by the consumer  10 , downloading financial data pertaining to at least one purchase by the consumer  10  from the vendor  14  to a bookkeeping program maintained on a personal computing device  36  operated by the consumer  10 . It should be noted that this may be in place of or in addition to virtual receipts uploaded to the smartphone  10 . 
         [0038]    The method  100  may comprise a step  126  of having the consumer  10  enter an input to the smartphone  12  to implement an installment purchase by the consumer  10  from the vendor  14 , wherein periodic payments are made to the vendor  14  until the dollar amount of the purchase price is satisfied by the sum of the periodic payments. This option may be regarded as implementing an installment purchase wherein merchandise or service is rendered to the consumer  10  immediately or rendered after payment is complete. The latter option is widely known as layaway sales. 
         [0039]    The method  100  may comprise a step  128  of having the consumer  10  enter an input to the smartphone  12  to implement a posting to a social network site, such as Twitter®, Facebook®, and Google+1®, wherein the posting comprises data reflecting at least one detail of a purchase made by the consumer from the vendor. For example, the consumer  10  may post a particularly advantageous purchase price, which might serve as free advertising to the vendor  14 . In another example, an image of an item acquired in the purchase may be posted, again affording the vendor  14  free advertising. The step  128  may comprise a further step  130  of identifying a purchase made by the consumer  10  from the vendor  14  as being regarded by the consumer  10  as providing a competitively favorable price to the consumer  10 . 
         [0040]    The method  100  may comprise a step  132  of having the consumer  10  enter an input to the smartphone  12  to implement issuance of a virtual gift card (not shown), and a further step  134  of automatically transmitting the virtual gift card to a portable, internet enabled data processing device operated by someone known to the consumer  10 . The gift card could take the form of a printable file, or of an image which when displayed on the data processing device of the person known to the consumer  10 , would qualify that person for a credit applicable to a purchase. 
         [0041]    The method  100  may comprise a step  136  of having the consumer  10  enter an input to the smartphone  12  to wirelessly establish a credit account with a lender (not shown), and a step  138  of wirelessly and automatically accessing funds from the credit account established with the lender to fund the commercial financial transaction conducted by the consumer  10 . 
         [0042]    The method  100  may comprise a step  140  of automatically issuing virtual statements pertaining to the credit account established in the step  136 , and transmitting the issued virtual statements wirelessly to the consumer  10 . 
         [0043]    The method  100  may comprise a step  142  of wirelessly debiting funds accessed by the consumer  10  from the account established for the consumer  10 , or alternatively stated, automatically and wirelessly updating the account such that any balance owing reflects purchases in near real time. As employed herein, “near real time” signifies a time period not exceeding about three seconds. 
         [0044]    The method  100  may comprise a step  144  of issuing a reminder notice and transmitting the reminder notice wirelessly to the consumer  10 . 
         [0045]    The system features regarding coupons, layaway accounts, rewards, loyalty, and an added feature of advertising and marketing are shown in  FIG. 1  as being capable of being associated with and generated by the gateway  20 , and more particularly by the transaction server  26 , although these features could be implemented through other agency. 
         [0046]    Integration of the above steps into a single, seamless process gives the consumer  10  the ability to track the status of positive asset accounts such as checking accounts, savings accounts, and debit accounts) and also of negative asset accounts, such as credit accounts in near real time. Also, the entire system of banking and payments may proceed to transfer payments responsively to payment authorization so as to complete transaction and financial transfers in near real time. 
         [0047]    While the present disclosure has been described in connection with what is considered the most practical and preferred embodiment, it is understood that this disclosure is not limited to the disclosed embodiments, but is intended to cover various arrangements included within the spirit and scope of the broadest interpretation so as to encompass all such modifications and equivalent arrangements.