SYSTEM AND METHOD FOR RETAIL OVER A NETWORK
FIELD OF THE INVENTION
The present invention relates to a system and method for retail over an
integrated computer and telephony network generally and more particularly to a
system and method for purchasing goods via a computer network, such as the
INTERNET and for paying for that purchase via a telephony network, such as
over the conventional PSTN telephony network.
BACKGROUND OF THE INVENTION
Retail over computer networks, in particular over the INTERNET, is well
known and widely used. In one known method both purchase and payment are
done over the INTERNET, wherein the purchaser provides is debit or credit card
number to the vendor who charges him accordingly. However, large number of
people are hesitant to use this retail method since they are exposed to a third
party capturing their credit or debit card number and making improper use
thereof causing them and the debit/credit company significant monetary
damage.
State of the art solution for solving this problem of lack of security in
INTERNET based transaction are based on encryption technology. In one
typical solution, both the vendor and the purchaser are using encrypted
messages so as to minimize somewhat the exposure of the purchaser credit/debit card number being captured by a third party. One disadvantage of
encryption in this environment is that financial transaction are typically short with
some of the numbers fixed (e.g. four digits of the credit/debit card characterize
the credit/debit card company) making it rather easy to brake the encryption.
In another solution, the vendor and purchaser enter into separate
pre-purchase agreements with a third party, typically the credit/debit card
company, which then debit the purchaser off line for its INTERNET purchase.
This method is complicated because it requires pre-arrangements with this third
party and it adds additional costs to the transaction which makes the goods
purchased more expensive.
SUMMARY OF THE INVENTION
The present invention provides an improved retail system and
method for purchasing over a computer network, preferably but not necessarily
the INTERNET.
According to the present invention, the selection of goods is done
over the network while payment therefor is done via the telephony network
without the purchaser realizing same or required to do additional steps as
compared with purchase for which payment is done over the network as well.
According to one aspect, the present invention provides a retail
system for purchasing goods over a computer network which includes a point of
sale connected to said network, a transactions computer, at least one purchaser
network computer communicating with said point of sale for ordering good
therefrom, said purchaser computer also connected via a PST to said
transactions computer, and means for activating said connection between said
computer station and said point of sale during ordering and said connection to
said transactions computer during payment for completing said purchase.
In one embodiment, the purchaser network station is connected to
said network via a first telephone modem line and to said transactions computer
with second telephone line and wherein said means for activating said first
connection and said second connection include means to indicate said
purchaser network station to activate the telephone line with said transaction
computer once said order is completed. In another embodiment, the network station is connected via a
telephone line to said point of sale and via said same telephone line to said
transaction computer and wherein said means for activating comprising means
for switching between said first connection and said second connection.
The means for switching may be provided by the telephony central
office in which case the central office preferably employs the waiting call
function for the switching or by the ISP to which said purchaser computer is
connected. In one option, the ISP connects to said transactions computer in the
purchaser name.
In accordance to yet another aspect of the present invention, the
point of sale provides over said network a purchase serial number or a random
serial number used by the purchaser to check whether to provide his credit/debit
card number to said transaction computer via said telephony line during
payment.
According to another aspect of the present invention, there are
provided methods for purchasing goods over a computer network employing the
system of the present invention.
BRIEF DESCRIPTION OF THE DRAWINGS
The present invention will be understood and appreciated more fully
from the following detailed description taken in conjunction with the appended
drawings in which:
Fig. 1A is a schematic block diagram of a system for retail,
constructed and operative in accordance with one embodiment of the present
invention;
Fig. 1 B is a schematic flow chart illustrating the method of operating
the system of Fig. 1 A;
Fig. 2A is a schematic block diagram of a system for retail,
constructed and operative in accordance with a second embodiment of the
present invention;
Fig. 2B is a schematic flow chart illustrating the method of operating
the system of Fig. 2A;
Fig. 2C details the disconnection and reconnection steps of Fig. 2B;
Fig. 3 is a schematic block diagram of a system for retail,
constructed and operative in accordance with a third embodiment of the present
invention; and
Fig. 4 is a schematic block diagram of a system for retail,
constructed and operative in accordance with a fourth embodiment of the present
invention. DETAILED DESCRIPTION OF THE INVENTION
Reference is now made to Figs.1 A and 1 B. Fig. 1A illustrates an system
for retail, generally referenced 10, constructed and operative in accordance with
an embodiment of the present invention and Fig. 1 B illustrates the operation
thereof.
System 10 is operative in a packet switched network which is preferably
the INTERNET to enable purchase of goods over the INTERNET and payment
for these purchases over a telephony network.
System 10 comprising a vendor retail system 12 including a point of sale
or a vending unit, vendor web server workstation 14 in the illustrated
embodiment, and a payment or transaction unit which is transaction computer
workstation 16 in the illustrated embodiment. Vending unit 14 is operative to
offer goods for purchase over the INTERNET, therefore it is connected to the
packet switched network, schematically referenced 18 and therefrom via an
INTERNET Service Provider (ISP) system 20 to a plurality of clients 22
connected to the INTERNET with modem 24.
In the illustrated embodiment, client 22 has two telephone lines and two
modems, modem 24 connecting client 22 to ISP 20 via telephone line 25 and
central office 28 and modem 26 connects client 22 to payment transaction
computer 16 via line 27, central office 28 and one of ports 30.
The operation of system 10 is described with reference to Fig. 1 B.
In step 52 a customer connects to the INTERNET with its client computer 22 via
his ISP 20. In the illustrated embodiment the ISP is a relatively large ISP operative through a central ISP web server 32 and a plurality of remote pops 34
to one of which client computer 22 is connected.
In step 54, the customer surfs the INTERNET and connects to the
vendor's web server 14 while surfing the INTERNET using any known surfing
engine, such as the Netscape Navigator, commercially available from Netscape
of California, USA. In step 56 the customer selects the goods he likes to
purchase from the vendor's list displayed in his site. In step 58 the customer
confirms that the lists of goods he wants to purchase and the sum to be paid for
the purchase.
In step 60 the payment transaction begins with the vending unit 14
transmits to the customer computer via the INTERNET a telephone number of
his transactions computer 16, a purchase serial number or a random number
and the details of the purchase, i.e. the items purchased and the purchase sum.
These details are being send to transactions computer 16 as well or originated
therefrom.
In step 62, the client computer receiving the purchase details dials
automatically to transactions computer 16 via the conventional telephony
network using its second modem 28. In step 64, transactions computer 16
confirms that the purchase serial number and provides the customer again the
purchase sum and optionally the purchase details. In this manner both the
purchaser and the vendor are verified as to the identity of the other party and
the customer can provide his credit/debit card number to transaction computer
16 as indicated by step 66. The customer also provides an address for mailing the goods purchased and any other details, such as ID number in any program
providing discounts or bonus miles for such purchase. The transaction is then
completed by the vendor by charging the credit/debit card of the purchaser in
the manner known in the art (step 68).
It will be appreciated that the retail method of Fig. 1 B is
advantageous both in term of transaction security and computer operation since
it is being done as a background task using client 22 second modem 28 while
the user can continue with any other task or surfing the INTERNET without the
possible adverse effect of providing the credit/debit card number of the
INTERNET.
Figs. 2A and 2B illustrate a system and a method of operating
same, respectively, according to a second embodiment of the present invention.
The embodiment of Figs. 2A and 2B differs from that of Figs. 1A and 1 B in that
the client 22 has only a single modem 24.
In this embodiment, steps 52 through 60 are similar to those in the
method of Fig. 1 B, however, client 22 is then disconnected from the INTERNET
as indicated by step 61 and only than steps 62 to 66 continue. Step 61 can be
manual or automatic.
In another embodiment when the vendor is also the ISP of client
22, step 61 is replaced by a step of momentarily disconnect client 22 from the
INTERNET for completing steps 62 - 66. Immediately after steps 62 - 66 are
completed clients 22 connection to the INTERNET is reestablished by his ISP
as indicated by step 70. Fig. 2C illustrates the momentarily disconnection of the customer
from his ISP in order to complete the transaction via the conventional telephone
line with transaction computer 16 and the reestablishment of the connection in
more details.
In steps 80 and 82 illustrating an exemplary embodiment to carry
out step 61 of Fig. 2B, computer 22 first requests temporary disconnection of
the current INTERNET session from his ISP (step 80) and receives in return a
session code number from ISP 20 after which the connection is being
disconnected (step 82).
Steps 84 through 90 illustrates an exemplary embodiment to carry
out step 70 of reestablishing the connection (step 70 in Fig. 2B). In step 84
computer 22 calls again ISP 20. In step 86 a connection is established, in step
88 computer 22 sends the session code number which is received by the ISP 20
which in turn continues the previous INTERNET session as indicated by step
90.
Fig. 3 illustrates another embodiment of the present invention. In
Fig. 3, the switching between the INTERNET connection and the transaction
session is done in the central office 28 using the waiting call function
schematically illustrated by box 38 which holds one line on hold while activating
the other line.
Accordingly, box 38 keeps the connection to the INTERNET on
hold while activating the connection between client computer 22 and
transactions computer 16 and then reactivates similarly to step 70 (Fig. 2B) the connection to the INTERNET while disconnecting the connection to transactions
computer 16 while all other steps are similar to that of Fig. 1B.
In the embodiment of Fig. 4, the telephone connection between
client computer 22 and transactions computer 16 is initiated by the ISP.
According to this embodiment in step 61 the user is indicating his ISP that he
requires a telephone call and the ISP connects it to transactions computer 16 as
indicated by line 39.
It will be appreciated that the embodiments described above are
set for exemplary purposes only and any other embodiment in which a
conventional telephone connection is used for transactions purposes for
completing a purchase over the INTERNET is intended to be covered by the
present invention.
It will also be appreciated that while the embodiments described
above do not include encryption, encryption may be added as another security
level to any of the embodiments of the present invention.
It will further be appreciated by persons skilled in the art that the
present invention is not limited to what has been particularly shown and described
hereinabove. Rather, the scope of the present invention is defined only by the
claims that follow: