WO2000068845A1

WO2000068845A1 - A method of transaction

Info

Publication number: WO2000068845A1
Application number: PCT/AU2000/000421
Authority: WO
Inventors: Terry Shanahan
Original assignee: Terry Shanahan
Priority date: 1999-05-05
Filing date: 2000-05-05
Publication date: 2000-11-16
Also published as: AUPQ018899A0

Abstract

A method of transacting electronically between a merchant (20) offering for sale goods or services, a purchaser (10) desiring to purchase one or more of the goods or services, and a funds provider (30). The method includes establishing electronic communication between the purchaser, the merchant and the funds provider via the internet. Upon establishing electronic communication between the purchaser and the merchant, the merchant provides the purchaser with a monetary value corresponding to the funds required to effect the purchase of those nominated goods. The funds provider provides the purchaser with an encoded payment signal having a first data portion and a second data portion wherein the purchaser has means for decoding the first portion and the merchant has means for decoding the second portion.

Description

Title: A METHOD OF TRANSACTION

FIELD OF THE INVENTION

The present invention relates to a method of transaction and in particular to a

method of transaction between a merchant offering for sale goods and/or services, a

purchaser desiring to purchase one or more of the goods and/or services, and a funds

provider.

BACKGROUND OF THE INVENTION

The invention has been developed primarily for use with the internet and will be

described hereinafter with respect to that application. However, the invention is not

limited to that particular field of use and is also applicable to other electronic commerce.

Previously known methods of electronic transactions have included an inherent

risk in so far as the distribution of a purchasers payment details are concerned.

Moreover, the need to purchase goods and/or services over such a medium as the internet

requires the remittance of payment which generally necessitates that a purchaser provide

their credit card or electronic funds transfer (EFT) details to a merchant. Once the

payment details are at hand, the merchant then has a funds provider remit payment.

A major disadvantage of this system is that the merchant, often unknown to the

purchaser in the global economy, can defraud or attempt to defraud the purchaser by

extracting more funds from the funds provider than was authorised by the purchaser.

Also, the merchant may provide the purchaser's details to others who may then attempt

to defraud the purchaser.

Such defrauding may occur until the credit limit of a credit card has been

reached, the available balance depleted in the case of EFT transactions, or the purchaser

receives a statement from their funds provider alerting them to unauthorised transactions. DISCLOSURE OF THE INVENTION

It is an object of the present invention, at least in the preferred embodiment, to

overcome or substantially ameliorate one or more of the disadvantages of the prior art or

to provide a useful alternative.

According to a first aspect of the invention there a method of transaction between

a merchant offering for sale goods and/or services, a purchaser desiring to purchase one

or more of the goods and/or services, and a funds provider, the method including the

steps of: establishing communication between the purchaser and the merchant for

allowing the purchaser to nominate one or more of the goods and/or services and to

obtain from the merchant a monetary value corresponding to the funds required to effect

purchase of those nominated goods and/or services;

establishing communication between the purchaser and the funds provider such

that the funds provider obtains the monetary value and, in response to the funds provider

determining that the purchaser is to be provided with funds corresponding to the

monetary value, the funds provider provides the purchaser with an encoded payment

signal having a first data portion and a second data portion wherein the purchaser has

means for decoding the first portion; and

establishing communication between the purchaser and the merchant for

allowing the merchant to decode the second portion and, in response to the merchant

being satisfied with the data in the second portion, provide the purchaser with a purchase

signal to confirm that the nominated goods and/or services have been purchased.

Preferably, electronic communication is established between the purchaser and

the merchant and the purchaser and the funds provider. WO 00/68845 PCT/AU0O/OO421

-3- Preferably, the first portion of the payment signal is not passed from the

purchaser to the merchant. Preferably also, the first portion is passed to the merchant,

although it can not be decoded.

Preferably, the second data portion is indicative of a merchant confirmation

number and can not be decoded by the purchaser.

Preferably, the payment signal includes a third data portion indicating a

transaction number allocated to the purchaser by the merchant. More preferably, both

the purchaser and the merchant have means for decoding the third portion to obtain the

transaction number. Preferably, the first data portion is indicative of a customer

confirmation number and can not be decoded by the merchant.

In preferred embodiments of the invention, the purchaser remotely electronically

communicates with the funds provider and the merchant via the internet.Preferably, the

funds provider and the merchant provide internet sites which are accessed by the

purchaser. More preferably, the purchaser has both the internet sites open

simultaneously.

Preferably, the purchase signal is indicative of a purchase number and the

purchaser has means for determining the purchase number. More preferably, the

purchase signal to the funds provider who also has means for determining the purchase

number. Preferably, the purchaser is provided the purchase signal to confirm the

purchase, but can not decode the purchase number. More preferably, the purchase signal

is communicated to the funds provider for decoding.

Preferably, the purchaser utilises a computer having a program that automatically

configures the payment signals and the purchase signals for subsequent communication

with the merchant or the funds provider, as the case may be. Preferably also, there is no direct communication between the merchant and the funds provider during the

transaction.

Preferably, once the transaction is complete the merchant communicates with the

funds provider to obtain a payment corresponding to the purchase price, less any

commissions or charges.

Preferably, the communications are configured to hinder any unscrupulous

parties to the transaction from defrauding any of the other parties.

In preferred embodiments of the invention, the second portion is fungible. Preferably,

the second portion has a direct monetary value and is credited to an account nominated

by the merchant. More preferably, the second portion allows an electronic funds transfer

(EFT) between an account of the funds provider and the account nominated by the

merchant thereby accommodating both credit and debit transactions.

Preferably, any unauthorised attempt to edit any one of the respective first,

second or third portions terminates the transaction. Preferably also, each party to the

transaction includes a computer with respective transaction software. Preferably, when

the termination occurs it disables the program of the party attempting the edit. More

preferably, when the termination occurs the other parties are informed as to who is

responsible for the termination. In such embodiments, the disabled program preferably

needs to be reissued and reinstalled on the respective computer subsequent to a

termination.

Preferably, the purchaser has an account with the funds provider having an

available fund balance, and the step of determining that the purchaser is to be provided

with funds corresponding to the monetary value includes the step of determining whether

the monetary value is less than the available fund balance. Preferably, the purchaser has a subsidiary account with the funds provider having a subsidiary available fund balance

which is less than or equal to the available fund balance. More preferably, the funds

provider sets a maximum limit to the funds available to the purchaser which must not be

exceeded by the sum of the available fund balance and the subsidiary available fund

balance. In these embodiments, the subsidiary available fund balance is set to match the

monetary value. More preferably, the subsidiary available fund balance is set by the

purchaser. Also preferable, the subsidiary available fund balance is set by the funds

provider. Preferably, the account is a credit account accessed by a credit card and the

subsidiary account is accessed by a subsidiary credit card.

Preferably, the subsidiary credit card carries an independent identification to the

credit card. Preferably also, the subsidiary card includes a predetermined expiration

date. More preferably, the expiration date is a predetermined number of days after issue

of the subsidiary credit card.

According to a second aspect of the invention there is provided a system for

facilitating the method according to the first aspect or any of its preferments, the system

including:

a means of establishing communication between the purchaser and the merchant

for allowing the purchaser to nominate one or more of the goods and/or services and to

purchase of those nominated goods and/or services;

a means of establishing communication between the purchaser and the funds

provider such that the funds provider obtains the monetary value and, in response to the

funds provider determining that the purchaser is to be provided with funds corresponding

to the monetary value, the funds provider provides the purchaser with an encoded payment signal having at least a first and second data portion wherein the purchaser has

means for decoding at least the first portion; and

a means of establishing communication between the purchaser and the merchant

for allowing the merchant to decode the second portion and, in response to the merchant

signal to confirm that the nominated goods and/or services have been purchased.

Preferably, electronic communication is established between the purchaser and

the merchant and the purchaser and the funds provider. More preferably, the purchaser,

the merchant and the fund provider each employ respective computers for

communicating therebetween. Preferably also, the respective computers communicate

via the internet. In other embodiments, the respective computers communicate via a

dedicated network.

Preferably, the purchaser's computer includes generating means for decoding at

least part of the payment signal. Preferably also, the merchant's computer includes

generating means for decoding at least part of the payment signal.

More preferably, the funds provider's computer includes generating means for

generating the payment signal. Preferably, the generation means is software located on

the respective computers. In other embodiments, the generation means is hardware

installed on the respective computers.

Preferably, the payment signal includes a third portion which is decodable by the

purchaser and/or the merchant.

According to a third aspect of the mvention there is provided a system for

implementing an electronic transaction between a merchant offering for sale goods

and/or services and a purchaser desiring to purchase one or more of the goods and or -1- services, where a funds provider provides the funds for the purchase, the system

including:

a purchaser computer operable by the purchaser;

a merchant computer operable by the merchant for electronically communicating

with the purchaser computer for allowing the purchaser to nominate one or more of the

goods and/or services and to obtain from the merchant a signal indicative of the purchase

price for the nominated goods and/or services;

a funds provider computer operable by the funds provider for establishing

electronic communication with the purchaser computer such that the funds provider

obtains the signal and, in response to the funds provider determining that the purchaser is

to be provided with funds corresponding to the purchase price, providing the purchaser

with an encoded payment signal having a first data portion decodeable by the user and a

second data portion decodeable by the merchant; and

communication means for establishing electronic communication between the

purchaser computer and the merchant computer for allowing the merchant to decode the

second portion and, in response to the merchant being satisfied with the data in the

second portion, providing the purchaser with a purchase signal to confirm that the

nominated goods and/or services have been purchased.

Preferably, the computers communicate via the internet. In other embodiments,

the computers communicate via a dedicated network.

According to a fourth aspect of the invention there is provided a method for a

funds provider to provide funds to a purchaser desiring to purchase one or more goods

and/or services offered for sale by a merchant, the method including the steps of: establishing communication between the purchaser and the funds provider such

that the funds provider obtains a signal indicative of a monetary value from the

purchaser and, in response to the funds provider determining that the purchaser is to be

provided with funds corresponding to the monetary value, the funds provider provides

the purchaser with an encoded payment signal having a first data portion and a second

data portion wherein the purchaser has means for decoding the first portion and the

merchant has means for decoding the second portion.

Preferably, the method includes the step of:

establishing communication between the purchaser and the merchant and

transmitting the second portion of the payment signal to the merchant for allowing the

merchant to decode the second portion and, in response to the merchant being satisfied

with the data in the second portion, providing the purchaser with a purchase signal to

confirm that the nominated goods and/or services have been purchased.

Preferably, the merchant does not receive the first portion of the purchase signal.

In other embodiments, the first portion of the payment signal is transmitted to the

merchant, although it can not be decoded.

Preferably, the payment signal includes a third data portion. Preferably also, the

third data portion is decodable by the purchaser only. In other embodiments, the third

data portion is decodable by the merchant only. In yet other embodiments, the third data

portion is decodable by the purchaser and the merchant.

Preferably, the third portion includes data representative of a transaction number.

Preferably, the communication occurs between a purchaser computer, a merchant

computer and a funds provider computer. More preferably, communication is established over the internet. In other embodiments, communication is established over

a dedicated network.

According to another aspect of the invention there is provided a method for a

merchant to trade goods and/or services between the merchant offering for sale goods

and/or services, a purchaser desiring to purchase one or more of the goods and/or

services, and a funds provider, the method including the steps of:

establishing communication between the purchaser and the merchant for

allowing the purchaser to nominate one or more of the goods and/or services;

providing the purchaser with a monetary value corresponding to the funds

required to effect purchase of those nominated goods and/or services;

establishing communication between the purchaser and the funds provider such

signal having at least a first data portion and a second data portion wherein the purchaser

has means for decoding the first portion; and

providing the merchant with at least the second portion of the payment signal for

signal to confirm that the nominated goods and/or services have been purchased.

Preferably, electronic communication is established between the purchaser and

the merchant and the purchaser and the funds provider.

Preferably, the first portion of the payment signal is not passed from the

purchaser to the merchant. In other embodiments, the first portion is passed to the merchant, although it can not be decoded. More preferably, the second data portion is

indicative of a merchant confirmation number and can not be decoded by the purchaser.

Preferably, the purchaser and the merchant have means for decoding the third

portion to obtain the transaction number. More preferably, the first data portion is

indicative of a customer confirmation number and can not be decoded by the merchant.

Also preferable, the purchaser remotely communicates with the funds provider and the

merchant via the internet. Preferably, the funds provider and the merchant provide

internet sites which are accessed by the purchaser. Preferably also, the purchaser has

both the internet sites open simultaneously.

Preferably, the purchase signal is indicative of a purchase number and the

purchaser has means for determining the purchase number. More preferably, the

purchaser provides the purchase signal to the funds provider who also has means for

determining the purchase number. Preferably, the purchaser is provided the purchase

signal to confirm the purchase, but can not decode the purchase number.

Preferably, the purchase signal is communicated to the funds provider for

decoding. More preferably, the purchaser utilises a computer having a program that

automatically configures the payment signals and the purchase signals for subsequent

communication with the merchant or the funds provider, as the case may be. In other

embodiments, there is no direct communication between the merchant and the funds

provider during the transaction.

Preferably, once the transaction is complete the merchant communicates with the

commissions or charges. Preferably, the communications are configured to hinder any unscrupulous

parties to the transaction from defrauding any of the other parties. Also of preference,

the second portion is fungible. Preferably, the second portion has a direct monetary

value and is credited to an account nominated by the merchant.

Preferably, the second portion allows an electronic funds transfer (EFT) between

an account of the funds provider and the account nominated by the merchant thereby

accommodating both credit and debit transactions. Preferably also, each party to the

transaction includes a computer with respective transaction software. More preferably,

the purchaser has an account with the funds provider having an available fund balance,

and the step of determining that the purchaser is to be provided with funds corresponding

to the monetary value includes the step of determining whether the monetary value is

less than the available fund balance.

Unless the context clearly requires otherwise, throughout the specification, the

word 'goods' and the like are to be construed as goods and/or services and/or any other

tradeable commodity.

BRIEF DESCRIPTION OF THE DRAWINGS

A preferred embodiment of the invention will now be described, by way of

example only, with reference to the accompanying drawings in which:

Figure 1 illustrates a simulated computer screen that is available to a purchaser

utilising the method according to the invention;

Figure 2 is a simulated computer screen subsequent to that of Figure 1;

Figure 3 is a simulated computer screen subsequent to that of Figure 2;

Figure 4 is a simulated computer screen subsequent to that of Figure 3;

Figure 5 is a simulated computer screen subsequent to that of Figure 4; Figure 6 is a simulated computer screen subsequent to that of Figure 5; and

Figure 7 is a schematic diagram of a system for facilitating the method of the

invention.

PREFERRED EMBODIMENTS OF THE INVENTION

Referring to the drawings, there is illustrated a method of transacting

electronically between a merchant offering for sale goods, a purchaser desiring to

purchase one or more of the goods, and a funds provider. The method includes

establishing electronic communication between the purchaser and the merchant for

allowing the purchaser to nominate one or more of the goods offered for sale by the

merchant wherein each party to the transaction includes a computer with respective

transaction software.

The purchaser remotely electronically communicates with the funds provider and

the merchant via the internet, whereby the funds provider and the merchant provide

internet sites which are accessed by the purchaser. In some embodiments the purchaser

electronically communicates with both internet sites simultaneously.

Upon establishing electronic communication between the purchaser and the

merchant, the merchant provides the purchaser with a monetary value corresponding to

the funds required to effect the purchase of those nominated goods.

The method further includes establishing electronic communication between the

purchaser and the funds provider such that the funds provider obtains the monetary value

and, in response to the funds provider determining that the purchaser is to be provided

with the funds corresponding to the monetary value, the funds provider provides the

purchaser with an encoded payment signal having a first data portion and a second data

portion wherein the purchaser has means for decoding the first portion. The first data portion is indicative of a customer confirmation number and cannot be decoded by the

merchant. Further, the first portion of the payment signal is not passed from the

purchaser to the merchant. However, in other embodiments the first portion is passed to

the merchant but it cannot be decoded by them.

The purchase signal is indicative of a purchase number and the purchaser has

means for determining the purchase number. The purchaser provides the purchase signal

to the funds provider who also has means for determining the purchase number. In some

embodiments, however, the purchaser is provided the purchase signal to confirm the

purchase, but cannot decode the purchase number. In this embodiment, the purchase

signal is communicated to the funds provider for decoding.

The purchaser utilises a computer having a program that automatically configures

the payment signals and the purchase signals for subsequent communication with the

merchant or the funds provider, as the case may be. In other embodiments, however, the

program is configured upon establishing communication with the funds provider.

The method further includes the steps of establishing electronic communication

between the purchaser and the merchant for allowing the merchant to decode the second

portion and, in response to the merchant being satisfied with the data in the second

portion, provide the purchaser with a purchase signal to confirm that the nominated

goods have been purchased. The second data portion is indicative of a merchant

confirmation number and cannot be decoded by the purchaser.

Once the transaction is complete, however, the merchant communicates with the

funds provider to obtain a payment corresponding to the purchase price less any

commissions or charges. That is, during the transaction the only communication

between the merchant and the funds provider is via the purchaser. Moreover, the communication is configured to hinder any unscrupulous parties to the transaction from

defrauding or attempting to defraud any of the other parties.

The second portion of the purchase signal is fungible. The second portion has a

direct monetary value and is credited to an account nominated by the merchant. The

second portion allows an electronic funds transfer (EFT) between an account of the

funds provider and the account nominated by the merchant. That is, the invention

accommodates both credit and debit transactions.

The purchase signal includes a third data portion indicating a transaction number

allocated to the purchaser by the merchant. Both the purchaser and the merchant have

means for decoding the third portion to obtain the transaction number.

There is no direct communication between the merchant and the funds provider

during the transaction. In other embodiments, however, all or any part of the purchase

signal is communication to both the purchaser and the merchant.

Any unauthorised attempt to edit any one of the respective first, second or third

portions of the purchase signal terminates the transaction. When an unauthorised

attempt to edit any of the purchase signal occurs, the program of the party attempting to

edit the purchase signal is disabled and the other parties are informed of the termination

and the party responsible for it. Once disabled, the program need be reissued and

reinstalled on the respective computer. In other embodiments, however, the program is

enabled by the receipt of an enabling signal from the funds provider transmitted over the

internet.

The purchaser has an account with the funds provider having an available funds

balance, and a step of determining that the purchaser is to be provided with funds

corresponding to monetary value includes the steps of determining whether the monetary value is less than the available funds balance. In other embodiments, the purchaser can

establish a new account with the funds provider having a given available funds balance.

The purchaser has a subsidiary account of the account with the funds provider

having a subsidiary available fund balance which is less than or equal to the available

fund balance. The funds provider sets a maximum limit to the funds available to the

purchaser which must not be exceeded by the sum of the available fund balance and the

subsidiary available fund balance. The subsidiary available fund balance is set to match

the monetary value. In other embodiments, however, the fund balance is arbitrarily

chosen such that it is equal to or less than the available funds balance. The subsidiary

available fund balance is set by the purchaser. In other embodiments, the subsidiary

available funds balance is set by the funds provider.

The account is a credit account accessed by a credit card and the subsidiary

account is accessed by a subsidiary credit card. The subsidiary credit card carries an

independent identification to the credit card. In some embodiments, however, the

subsidiary credit card carries identification which is at least in part linked with the

identification of the credit card.

The subsidiary card includes a predetermined expiration date. The expiration

date is a predetermined number of days after the issue of the subsidiary credit card. In

other embodiments, the expiration of the subsidiary card occurs upon the execution of a

predetermined number of transactions.

Referring to Figure 7, there is illustrated a system for facilitating the method of

electronic transaction hereinbefore described. The system includes a means of

establishing communication between the purchaser and the merchant in the form of a

purchaser's computer 10 and a merchant's computer 20 connected over the internet a via telephone line 39. In other embodiments of the invention, computers 10 and 20 are

connected by wireless means over the internet. The connection of computers 10 and 20

allows the purchaser to nominate one or more of the goods and/or services and to obtain

from the merchant a monetary value corresponding to the funds required to effect

purchase of those nominated goods and/or services.

The system includes a means of establishing electronic communication between

the purchaser's computer 10 and a merchant's computer 30 over the internet via a

telephone line 40 such that the funds provider obtains the monetary value and, in

response to the funds provider determining that the purchaser is to be provided with

funds corresponding to the monetary value, the funds provider provides the purchaser

with an encoded payment signal having at least a first and second data portion wherein

the purchaser has means for decoding at least the first portion. In other embodiments,

computers 10 and 30 are connected by wireless means over the internet.

The system further includes a means of establishing electronic communication

between the purchaser's computer 10 and the merchant's computer 20 for allowing the

with the data in the second portion, provide the purchaser with a purchase signal to

confirm that the nominated goods and/or services have been purchased.

In other embodiments of the invention, computers 10, 20 and 30 communicate

via a dedicated network.

In an alternative embodiment of the invention, a transaction method between a

merchant offering for sale goods and/or services, a purchaser desiring to purchase one or

more of the goods and/or services, and a funds provider includes the steps of the

purchaser selecting which of the goods and/or services to purchase. The merchants' goods and/or services are brought to the attention of the purchaser electronically.

However, in other embodiments, goods and/or services are brought to the attention of the

purchaser via an internet web site, verbally, by catalogue or the like.

The purchaser then communicates with the funds provider electronically such

signal having a first data portion and a second data portion and wherein the purchaser

has means in the form of computer software to decode the first portion, but not the

second. In other embodiments, the purchaser decodes the first portion by comparison to

separate decoding instructions or a look-up table. The funds provider provides the

purchase signal electronically over the internet. In other embodiments, the purchaser

communicates with the funds provider verbally, by facsimile or by any other means.

The purchaser communicates at least the second portion of the payment signal to

the merchant electronically wherein the merchant can only decode the second portion by

means of computer software. In other embodiments, the merchant decodes the second

portion by means of comparison to separate decoding instructions or a look-up table. In

other embodiments, at least the second portion of the payment signal is communicated to

the merchant via an internet web site, verbally, or the like.

Once the merchant decodes the second portion and is satisfied with the data in the

second portion, a confirmation signal provided to the purchaser to confirm the purchase

of the nominated goods and or services. The merchant also sends a confirmation signal

to the funds provider to confirm the transaction has occurred. The confirmation signal is

transmitted electronically and includes data representative of the purchase price. In other embodiments, the confirmation signal is transmitted by post, facsimile or other

convenient means.

It will be understood that the term "electronic communication" is intended to

include those forms of communication that via the internet or other communications

networks such as telephone or computer networks and wireless communications systems

such as mobile telephone or satellite networks. It will also be understood that these

networks may support such electronic communications through the utilisation of optical,

magnetic or wireless means in addition to or as a substitute for purely electronic means.

Although the invention has been described with reference to a specific example,

it will be appreciated by those skilled in the art that the invention may be embodied in

many other forms.

Claims

CLAIMS:

1. A method of transaction between a merchant offering for sale goods and/or

services, a purchaser desiring to purchase one or more of the goods and/or services, and

a funds provider, the method including the steps of:

establishing communication between the purchaser and the merchant for

purchase of those nominated goods and or services;

establishing communication between the purchaser and the funds provider such

means for decoding the first portion; and

establishing communication between the purchaser and the merchant for

signal to confirm that the nominated goods and/or services have been purchased.

2. A method according to claim 1 wherein electronic communication is established

between the purchaser and the merchant and the purchaser and the funds provider.

3. A method according to claim 2 wherein the first portion of the payment signal is

not passed from the purchaser to the merchant.

4. A method according to claim 2 wherein the first portion is passed to the

merchant, although it can not be decoded.

5. A method according to any one of the preceding claims wherein the second data

portion is indicative of a merchant confirmation number and can not be decoded by the

purchaser.

6. A method according to any one of the preceding claims wherein the payment

signal includes a third data portion indicating a transaction number allocated to the

purchaser by the merchant.

7. A method according to claim 6 wherein both the purchaser and the merchant

have means for decoding the third portion to obtain the transaction number.

8. A method according to claim 7 wherein the first data portion is indicative of a

customer confirmation number and can not be decoded by the merchant.

9. A method according to any one of the preceding claims wherein the purchaser

remotely electronically communicates with the funds provider and the merchant via the

internet.

10. A method according to claim 9 wherein the funds provider and the merchant

provide internet sites which are accessed by the purchaser.

11. A method according to claim 10 wherein the purchaser has both the internet sites

open simultaneously.

12. A method according to claim 11 wherein the purchase signal is indicative of a

purchase number and the purchaser has means for determining the purchase number.

13. A method according to claim 12 wherein the purchaser provides the purchase

signal to the funds provider who also has means for determining the purchase number.

14. A method according to claim 13 wherein the purchaser is provided the purchase

signal to confirm the purchase, but can not decode the purchase number.

15. A method according to claim 14 the purchase signal is communicated to the

funds provider for decoding.

16. A method according to claim 15 wherein the purchaser utilises a computer

having a program that automatically configures the payment signals and the purchase

signals for subsequent communication with the merchant or the funds provider, as the

case may be.

17. A method according to claim 16 wherein there is no direct communication

between the merchant and the funds provider during the transaction.

18. A method according to claim 17 wherein once the transaction is complete the

merchant communicates with the funds provider to obtain a payment corresponding to

the purchase price, less any commissions or charges.

19. A method according to claim 18 wherein the communications are configured to

hinder any unscrupulous parties to the transaction from defrauding any of the other

parties.

20. A method according to any one of the preceding claims wherein the second

portion is fungible.

21. A method according to claim 20 wherein the second portion has a direct

monetary value and is credited to an account nominated by the merchant.

22. A method according to claim 21 wherein the second portion allows an electronic

funds transfer (EFT) between an account of the funds provider and the account

nominated by the merchant thereby accommodating both credit and debit transactions.

23. A method according to claim 22 wherein any unauthorised attempt to edit any

one of the respective first, second or third portions terminates the transaction.

24. A method according to claim 23 wherein each party to the transaction includes a

computer with respective transaction software.

25. A method according to claim 24 wherein when the termination occurs it disables

the program of the party attempting the edit.

26. A method according to claim 25 wherein when the termination occurs the other

parties are informed as to who is responsible for the termination.

27. A method according to claim 26 wherein the disabled program need be reissued

and reinstalled on the respective computer subsequent to a termination.

28. A method according to claim 27 wherein the purchaser has an account with the

funds provider having an available fund balance, and the step of determining that the

purchaser is to be provided with funds corresponding to the monetary value includes the

step of determining whether the monetary value is less than the available fund balance.

29. A method according to claim 28 wherein the purchaser has a subsidiary account

with the funds provider having a subsidiary available fund balance which is less than or

equal to the available fund balance.

30. A method according to claim 27 wherein the funds provider sets a maximum

limit to the funds available to the purchaser which must not be exceeded by the sum of

the available fund balance and the subsidiary available fund balance.

31. A method according to claim 26 wherein the subsidiary available fund balance is

set to match the monetary value.

32. A method according to claim 30 or 31 wherein the subsidiary available fund

balance is set by the purchaser.

33. A method according to claim 30 or 31 wherein the subsidiary available fund

balance is set by the funds provider.

34. A method according to claim 32 or 33 wherein the account is a credit account

accessed by a credit card and the subsidiary account is accessed by a subsidiary credit

card.

35. A method according to claim 34 wherein the subsidiary credit card carries an

independent identification to the credit card.

36. A method according to claim 35 wherein the subsidiary card includes a

predetermined expiration date.

37. A method according to claim 36 the expiration date is a predetermined number of

days after issue of the subsidiary credit card.

38. A system for facilitating the method according to the first aspect or any of its

preferments, the system including:

a means of establishing communication between the purchaser and the merchant

purchase of those nominated goods and/or services;

a means of establishing communication between the purchaser and the funds

to the monetary value, the funds provider provides the purchaser with an encoded

payment signal having at least a first and second data portion wherein the purchaser has

means for decoding at least the first portion; and

a means of establishing communication between the purchaser and the merchant

for allowing the merchant to decode the second portion and, in response to the merchant WO 00/68845 PCT/AU0O/OO421

-24- being satisfied with the data in the second portion, provide the purchaser with a purchase

signal to confirm that the nominated goods and/or services have been purchased.

39. A system according to claim 38 wherein electronic communication is established

40. A system according to claim 38 wherein the purchaser, the merchant and the fund

provider each employ respective computers for communicating therebetween.

41. A system according to claim 40 wherein the respective computers communicate

via the internet.

42. A system according to claim 40 wherein the respective computers communicate

via a dedicated network.

43. A system according to claim 41 or 42 wherein the purchaser's computer includes

generating means for decoding at least part of the payment signal.

44. A system according to claim 43 wherein the merchant's computer includes

generating means for decoding at least part of the payment signal.

45. A system according to claim 44 wherein the funds provider's computer includes

generating means for generating the payment signal.

46. A system according to any one of claims 43 to 45 wherein the generation means

is software located on the respective computers.

47. A system according to any one of claims 43 to 45 wherein the generation means

is hardware installed on the respective computers.

48. A system according to claim 47 wherein the payment signal includes a third

portion which is decodable by the purchaser and/or the merchant.

49. A a system for implementing an electronic transaction between a merchant

offering for sale goods and/or services and a purchaser desiring to purchase one or more of the goods and/or services, where a funds provider provides the funds for the purchase,

the system including:

a purchaser computer operable by the purchaser;

a merchant computer operable by the merchant for electronically communicating

price for the nominated goods and/or services;

a funds provider computer operable by the funds provider for establishing

obtains the signal and, in response to the funds provider determimng that the purchaser is

second data portion decodeable by the merchant; and

communication means for establishing electronic communication between the

nominated goods and/or services have been purchased.

50. A system according to claim 49 wherein the computers communicate via the

internet.

51. A system according to claim 49 wherein the computers communicate via a

dedicated network.

52. A method for a funds provider to provide funds to a purchaser desiring to

purchase one or more goods and/or services offered for sale by a merchant, the method

including the steps of:

establishing communication between the purchaser and the funds provider such

merchant has means for decoding the second portion.

53. A method according to claim 52 including the step of:

establishing communication between the purchaser and the merchant and

confirm that the nominated goods and/or services have been purchased.

54. A method according to claim 53 wherein the merchant does not receive the first

portion of the purchase signal.

55. A method according to claim 53 wherein the first portion of the payment signal is

transmitted to the merchant, although it can not be decoded.

56. A method according to any one of claims 52 to 55 wherein the payment signal

includes a third data portion.

57. A method according to claims 56 wherein the third data portion is decodable by

the purchaser only.

58. A method according to claims 56 wherein the third data portion is decodable by

the merchant only.

59. A method according to claims 56 wherein the third data portion is decodable by

the purchaser and the merchant.

60. A method according to any one of claims 57 to 59 wherein the third portion

includes data representative of a transaction number.

61. A method according to claim 60 wherein the communication occurs between a

purchaser computer, a merchant computer and a funds provider computer.

62. A method according to claim 61 wherein communication is established over the

internet.

63. A method according to claim 61 wherein communication is established over a

dedicated network.

64. A method for a merchant to trade goods and/or services between the merchant

offering for sale goods and/or services, a purchaser desiring to purchase one or more of

the goods and or services, and a funds provider, the method including the steps of:

establishing communication between the purchaser and the merchant for

allowing the purchaser to nominate one or more of the goods and/or services;

providing the purchaser with a monetary value corresponding to the funds

required to effect purchase of those nominated goods and/or services;

establishing communication between the purchaser and the funds provider such

monetary value, the funds provider provides the purchaser with an encoded payment signal having at least a first data portion and a second data portion wherein the purchaser

has means for decoding the first portion; and

signal to confirm that the nominated goods and/or services have been purchased.

65. A method according to claim 64 wherein electronic communication is established

66. A method according to claim 65 wherein the first portion of the payment signal is

not passed from the purchaser to the merchant.

67. A method according to claim 65 wherein the first portion is passed to the

merchant, although it can not be decoded.

68. A method according to any one of claims 64 to 67 wherein the second data

purchaser.

69. A method according to claim 68 wherein both the purchaser and the merchant

have means for decoding the third portion to obtain the transaction number.

70. A method according to claim 69 wherein the first data portion is indicative of a

customer confirmation number and can not be decoded by the merchant.

71. A method according to any one of claims 64 to 70 wherein the purchaser

remotely communicates with the funds provider and the merchant via the internet.

72. A method according to claim 71 wherein the funds provider and the merchant

provide internet sites which are accessed by the purchaser.

73. A method according to claim 72 wherein the purchaser has both the internet sites

open simultaneously.

74. A method according to claim 73 wherein the purchase signal is indicative of a

75. A method according to claim 74 wherein the purchaser provides the purchase

signal to the funds provider who also has means for determimng the purchase number.

76. A method according to claim 75 wherein the purchaser is provided the purchase

signal to confirm the purchase, but can not decode the purchase number.

77. A method according to claim 76 the purchase signal is communicated to the

funds provider for decoding.

78. A method according to claim 77 wherein the purchaser utilises a computer

case may be.

79. A method according to claim 78 wherein there is no direct communication

between the merchant and the funds provider during the transaction.

80. A method according to claim 79 wherein once the transaction is complete the

the purchase price, less any commissions or charges.

81. A method according to claim 80 wherein the communications are configured to

parties.

82. A method according to any one of claims 64 to 81 wherein the second portion is

fungible.

83. A method according to claim 82 wherein the second portion has a direct

monetary value and is credited to an account nominated by the merchant.

84. A method according to claim 83 wherein the second portion allows an electronic

funds transfer (EFT) between an account of the funds provider and the account

85. A method according to claim 84 wherein each party to the transaction includes a

computer with respective transaction software.

86. A method according to claim 85 wherein the purchaser has an account with the