# US 2014/0156528 A1 · Method and system for secure mobile payment of a vendor or service provider via a demand draft

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- Number: US 2014/0156528 A1
- Document ID: US20140156528A1
- Status: Published application
- Kind: A1
- Application number: 13/832,971
- Filed: 2013-03-15
- Published: 2014-06-05
- Earliest claimed: 2012-11-30
- Inventors: Stephen Frechette
- Web page: https://patentgrep.com/patent/US20140156528A1

## CPC

- G06Q 20/3224: {Transactions dependent on location of M-devices}
- G06Q 20/3274: {using a pictured code, e.g. barcode or QR-code, being displayed on the M-device}
- G06Q 20/3278: {RFID or NFC payments by means of M-devices}
- G06Q: INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR

## Abstract

A method and system for consumers to pay vendors or service providers is presented. A demand draft is created and sent to a vendor or service provider from a trusted third party on behalf of a consumer. The verification of consumer funds available to cover the demand draft is not necessary because the demand draft is from a trusted third party to a vendor or service provider. The method employs real-time geolocation information available within mobile devices and time-synchronized one time passwords to increase the security of the process.

## Claims

### Claim 1

A computer-implemented method for enabling payment from a Consumer, via a third party intermediary using demand drafts and/or electronic delivery of funds, to a Vendor or Service-Provider and the method comprising:
accepting, by a computer system or cell phone or handheld device, geolocation information associated with the request;
comparing, by the computer system, the geolocation information associated with the payment from a Consumer, with geolocation information to a Vendor or Service Providers;
determining, by the computer system, whether the Consumer during the time of purchase is within the acceptable radius the Vendor's or Service-Provider's geolocation;
determining, by the computer system, whether the Consumer, during the time of purchase, has provided a valid time-synchronized one-time use password that has been generated by the hand held device;
determining, by the computer system, whether the Consumer, during the time of purchase, is in good standing with a third party before a demand draft is created or delivered;
determining, by the computer system, whether the Consumer, during the time of purchase, has funds available for a purchase in an account accessible via a unique Identification number, ID, before a demand draft is created or delivered; and
determining, by the computer system, whether the gift card holder/consumer, during the time of purchase, has funds available for a purchase in a gift card account accessible via a unique identification number, before a demand draft is created or delivered;

### Claim 2 (depends on 1)

The method of claim 1 wherein the area includes a circular area of radius around a specified geographic reference point.

### Claim 3 (depends on 1)

The apparatus of claim 1 wherein a demand draft from a third party is created and sent on behalf of the Consumer to a Vendor or Service Provider.

### Claim 4

Apparatus for validating payment from a Consumer to a Vendor or Service-Provider process, the apparatus comprising:
at least one processor; and
at least one storage device storing processor-executable instructions which, when executed by at least one processor, perform a method of:
accepting geolocation information associated with the request;
comparing the geolocation Consumer information associated with the payment with geolocation information associated with the Vendor or Services Provider;
determining whether a time-synchronized one-time use password generated by software on a handheld device is valid;
determining whether a unique ID of a Consumer and Vendor or Service Provider is valid;
wherein the geolocation associated with the Consumer and Vendor or Service Provider corresponds to an area within close proximity.

### Claim 5 (depends on 4)

The apparatus of claim 4 wherein the geolocation verification step includes a check that both parties in a payment process are within a predetermined distance to each other; with the means to determine the Consumer's or Service-Provider's location is via a cell phone and may include but is not limited to GPS, IP-addressed based locating method, cell-phone radio tower triangulation, or any other means available on a personal computer or cell phone (or any web-enabled device) for determining a Consumer's or Service-Provider's location, or a manual entry of the users' location.

### Claim 6 (depends on 4)

The apparatus of claim 4 wherein the unique IDs of the Consumer is encoded within the Quick Response, QR, code.

### Claim 7 (depends on 4)

The apparatus of claim 4 wherein the geolocation of the Consumer is encoded within the QR code.

### Claim 8 (depends on 4)

The apparatus of claim 4 wherein the time-synchronized one-time use password of the Consumer is encoded within the QR code.

### Claim 9 (depends on 4)

The apparatus of claim 4 wherein the information encoded within the QR code in encrypted.

### Claim 10 (depends on 4)

The apparatus of claim 4 wherein a demand draft from a third party is created and sent on behalf of the Consumer to a Vendor or Service Provider.

### Claim 11 (depends on 4)

The apparatus of claim 4 wherein the Consumer is provided a list of Service-Providers that is displayed and superimposed on a map, corresponding to the Service-Provider's location, on a web-enabled cell-phone, personal computer, or any web-enabled device with a human readable display.

### Claim 12 (depends on 4)

The apparatus of claim 4 wherein the unique IDs of the Consumer is encoded within a Near Field Communication, NFC, chip.

### Claim 13

A computer-implemented method for controlling serving of a Consumer to Vendor or Service-Provider payment system, via a third party intermediary using demand drafts and/or electronic delivery of funds, and the method comprising:
accepting, by a computer system or mobile device or cell phone, geolocation information associated with the request;
comparing, by the computer system, the accepted geolocation information associated with the payment;
determining, by the computer system, the validity of the payment from the Consumer to the Service-Providers based on the location of the Consumer and Service-Provider;
controlling, by the computer system, the serving of the Consumer's payment and geolocation-based information, for delivery/rendering on a client device, using the determined validity of the payment;
determining, by the computer system, whether the Consumer's geolocation at the time of payment is within the acceptable radius of the Vendor's or Service-Provider's area of service;
determining, by the computer system, whether the Consumer, during the time of purchase, has provided a valid time-synchronized one-time uses password that has been generated by the hand held device;
determining, by the computer system, whether the Consumer, during the time of purchase, is in good standing with a third party before a demand draft is created or delivered or funds are wired electronically;
determining, by the computer system, whether the Consumer, during the time of purchase, has funds available for a purchase in an account accessible via a unique identification number, before a demand draft is created or delivered;
determining, by the computer system, whether the gift card holder, during the time of purchase, has funds available for a purchase in a gift card account accessible via a unique identification number, before a demand draft is created or delivered or funds are wired electronically;
if it is determined that the Vendor or Service-Providers returned the unique ID of both Consumer's, Vendor's, and Service Provider's are validated, and the status of the Consumer as well as the funds available if a prepaid account or gift card is used;

### Claim 14

A computer-implemented method for controlling serving of a Consumer to Service-Provider payment system and the method comprising:
determining, by the computer system, whether the Consumer, during the time of purchase, has provided a valid time-synchronized one-time use password that has been generated by the hand held device;
accepting, by a computer system or mobile device or cell phone, geolocation information associated with the request;
comparing, by the computer system, the accepted geolocation information associated with the payment;
determining, by the computer system, the validity of the payment from the Consumer to the Service-Providers based on the location of the Consumer and Service-Provider;