Transaction server configured to authorize payment transactions using mobile telephone devices

Abstract

Techniques are disclosed for a mobile telephone, in conjunction with a payment transaction server, to be used directly as a payment device for a variety of financial transactions. Further, the transaction systems and methods for mobile telephone devices described herein allow a mobile telephone to participate in payment transactions in a manner that helps prevent identify theft and without relying on transferring amounts to/from one stored value account to another.

Description

CROSS-REFERENCE TO RELATED APPLICATIONS[0001]This application claims benefit of U.S. Provisional Patent Application Ser. No. 61 / 041,723, filed Apr. 2, 2008. This application also claims benefit of U.S. Provisional Patent Application Ser. No. 61 / 127,314, filed on May 12, 2008. Both provisional applications are incorporated by reference herein in their entirety.BACKGROUND OF THE INVENTION[0002]1. Field of the Invention[0003]Embodiments of the invention generally provide transaction systems and methods for mobile telephone devices. More specifically, embodiments of the invention allow a mobile telephone, in conjunction with a payment transaction server, to be directly used as a payment device for a variety of financial transactions.[0004]2. Description of the Related Art[0005]As is well known, individuals may establish an account with a bank and write checks drawn on their account to pay for goods and / or services. Similarly, credit and debit cards have replaced the use of cash (and che...

AI Technical Summary

Benefits of technology

[0010]One embodiment of the invention provides a computer-implemented method for processing payment transactions initiated using a mobile telephone as a payment device. The method may generally include receiving a request to enroll a mobile telephone in a payment transaction system. The request may include an indication of an identity of an individual enrolling the mobile telephone and the telephone number of the mobile telephone. The method also inc

Problems solved by technology

However, fraud, theft, and other misuse of checks and credit/debit accounts is a serious problem, costing both banks and consumers substantial sums of money.

For example, identity theft has become a significant source of fraud, resulting in financial losses to both banks and individuals.

For the individual involved, the effects of identity theft may reverberate well past an initial theft of information—costing time and resources for the affected individual to address.

For the bank, identity theft typically results in unrecoverable losses.

However, stored value accounts provide consumers with little protection against fraud, theft, or other misuse.

Further, stored value accounts may limit the use of funds transferred to the stored value account, e.g., a gift-card is typically good for a single (or limited number) of locations.

Further still, stored value accounts are frequently operated in a manner to avoid banking regulation,

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