Mobile Transaction System Using SMS Mediator to Reduce Fees
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Solution Overview
Problem
Existing mobile communication systems face challenges in facilitating secure and convenient online transactions, particularly in collecting funds and managing financial operations, as they often require users to reveal sensitive financial information and incur high fees.
Innovation Solution
A system that includes a communication interface, converters, and a common format processor to facilitate online transactions via mobile communications, allowing users to receive deposit and payment requests through mobile phones, using SMS, email, or other protocols, while maintaining security and reducing fees by leveraging phone bills and other financial accounts.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If users reveal sensitive financial information for online transactions, then transactions can be processed, but security risks increase
Solution Approach 1:
The patent introduces mobile phones as an intermediary device between users and the online transaction system. Instead of directly revealing financial information, users receive transaction requests and confirmations via SMS messages on their mobile phones. The mobile phone acts as a secure mediator that transmits only necessary verification information (such as confirmation codes) without exposing sensitive financial data, thus enabling transaction processing while maintaining security.
2Productivity
If traditional payment methods are used, then transactions can be completed, but transaction fees are high
Solution Approach 1:
The patent enables users to perform transactions through self-service via mobile phone SMS. Users can initiate purchases, receive billing information, and confirm transactions independently through text messages without requiring traditional high-fee payment intermediaries. The system automatically processes transactions based on user confirmations received via SMS, reducing reliance on expensive payment processing infrastructure and lowering transaction fees.
3Reliability
If charges are collected upfront, then funds can be secured, but budget limits and regulatory constraints are violated
Solution Approach 1:
The patent segments the total transaction charge into multiple smaller billing cycles. Instead of collecting the full amount upfront, the system divides charges into installments that are billed periodically (e.g., daily or weekly) based on the user's consumption. This segmentation approach maintains fund security by ensuring continuous billing while adapting to budget constraints and regulatory requirements that prohibit excessive upfront charges from exceeding certain thresholds.
Data Source
AI summary
Systems and methods are provided to facilitate online transactions via mobile communications. In one aspect, a system includes a communication interface to receive an input from a merchant; a plurality of converters to interface with a plurality of controllers for delivery of premium messages sent by the system to collect funds for purchases made by customers; and a common format processor coupled with the plurality of converters to send the premium messages. The common format processor determines a combination of one or more premium messages, in response to a first customer making a first purchase from the merchant at a first price. The total price of the one or more premium messages is based on the first price and a portion of service charges associated with the one or more premium messages, where the portion is specified by the input received via the interface.