As trading on the world wide web becomes more extensive, remote trading will increase, namely, situations where neither the purchaser nor the merchant never meet face to face. Heretofore, the problem that has been addressed by most trading systems is the problem of card-not-present fraud and the verification by the merchant or an acquirer bank or other organisation operating for the merchant of the authenticity of the credit card number being proffered by the purchaser. Thus, all such credit card purchases have to be validated through a clearing system which is usually done by way of batch processing. This is expensive and time consuming for the merchant.

Essentially, the process entails a number of different operations which are carried out at certain time intervals, for example: agreeing the supply of the goods and/or services with the purchaser, subsequent credit card verification ; dispatch instructions for the order, dispatch of order and collection of the payment. Further, for the purchaser, there are problems in relation to card-not-present fraud which has led to the invention of systems which ensure that such risk is either minimised or virtually eliminated.

The increase in trade over the world wide web has also witnessed a shift in the demographics of the purchasers and of the type and value of the goods being purchased. The age of the customer is falling and the monetary value of individual trades is also falling. The latter is linked to the former phenomenon.

However, there is another problem that has not heretofore been addressed and that is the problem of merchant sites from which purchases can be made. This can arise in two or more situations. For example, with children, parents may be quite willing to allow children make purchases on the world wide web using their own computer and own intemet connection, however, at the same time, parents may not be willing to finance such purchases when such purchases are for goods or services that the parents consider unsuitable such as, for example, pornography materials or the like.

This can be a major problem for parents when their children are living away from home in that the parents may wish to allow their children purchase books and other items of

goods and services for which they are willing to pay for, but at the same time, they want to have some control over the merchant sites that firstly, their offspring visit and secondly, sites that their offspring purchase from. While it is almost impossible to prevent people visiting specific sites, at least if the parent or guardian is financing such purchases, he or she would like to be in a position to limit purchases over the world wide web that they are financing to purchases they approve of. Parents may often wish to control the total amount of money spent on particular sites over particular periods of time. Thus, for example, a parent might be perfectly willing to give one of their offspring a sum of money every month which they would like to children to use in any way they desire, while at the same time, not wishing to have the children use that site to purchase all the one type of goods or services, or indeed, for example, to engage in gambling on sites, over a certain limit or sum of money. Further, most parents would be anxious to limit the amount of money that children could spend in a particular period and thus would be relatively unhappy in giving one of their offspring unlimited access to a credit card.

Further, for the merchant, even if a credit card is used for such purchases, if the purchases are of a relatively low monetary value, then the cost of processing such payments in every aspect of the processing system, is both time consuming and expensive for the merchant. Very often, for many merchants, the sale of relatively cheap items over the world wide web is an uneconomic proposition. This becomes all the more so when the merchants are dealing with people of low income such as students.

At the same time, for the parent, the parent wishes to give the child relatively wide discretion on how he or she spends her money and the parent does not want to appear to be checking on the child, while at the same time, the parent requires some control. Most parents would be very anxious to ensure that children do not fall into debt insofar as the parents can prevent it or at least do everything to minimise it.

Further, another situation might arise in which a person might be willing to allow another purchase items on behalf of the first person at various sites but would like to limit such purchases on his or her behalf to such sites. An example of this would be, for example, an employer allowing certain employees purchase goods and services

from certain predefined sites up to some particular limit of money during a particular time period but would not, at the same time, wish to allow them purchase indiscriminately on the world wide web. At the same time, the employer might not have either the time on inclination to pre-authorise each purchase during a particular time period and the employer might be willing to take any risks that might ensue, subject to the total amount being purchased over the world wide web within that time period not exceeding a preset amount and that further, the purchases were only made from pre- chosen merchant sites. As already stated, for the merchant, there is a serious need for the merchant to be able to process, cheaply and efficiently, minor purchases of low monetary value.

The financial institution wishes to avoid disintenmediation insofar as the financial institution can. The financial institution wants to deal as much as it can with its own customers without the involvement of others. It wishes to foster and nourish good customer relations and grow its customer base. Further, the financial institution wants to be able to demonstrate to the merchant in some way, that unless the merchant treats or engages in commerce in some manner with the financial institution, the merchant may not necessarily obtain these sales. Thus, there could be a financial advantage for a financial institution in the channelling of a considerable amount of purchases through themselves to a merchant site. This could either allow the financial institution to obtain some form of discount or monetary reward from the merchant or allow the financial institution obtain advantageous credit terms from the merchant for itself or its customers. Similarly, for the merchant in these situations, if there merchant was dealing with one financial institution, in effect, rather than a large number of purchasers, then the merchant could avoid all the problems of payment confirmation but could simply have an agreed confirmation with the particular financial institution. A further advantage for the financial institution is that, for example, when it is parents as customers of the financial institution opening accounts for children to allow their children trade on the intemet, this could be a golden opportunity for the financial institution to establish a working relationship prior to the offspring establishing such a relationship with any other financial institution. Thus, when the child becomes an adult, the financial institution would have a customer.

The present invention is directed towards achieving these objects.

Statements of Invention According to the invention, there is provided a trading method for the worid-wide web comprising the initial steps of :- a service provider prepares a merchant database of available merchant sites; the service provider allocates a site classification to each merchant site based on the type of goods and services offered to purchasers on the merchant site; the merchant sites are entered onto the merchant database; a customer establishes a purchaser account for a nominated purchaser ; the customer defines the purchasing rules for the purchaser account including at least defining the site classifications from which purchases can be made; the service provider enters the purchaser account and associated purchasing rules into a purchaser database; and on the nominated purchaser desiring to make a purchase, the purchaser opens a communications link with the service provider ; the purchaser requests connection to a merchant site; the service provider consults the purchaser database and on the connection being permitted by the purchasing rules, the service provider connects the purchaser to the merchant site; on the purchaser agreeing a purchase with the merchant, the merchant site downloads the agreed purchase data to the service provider for confirmation of payment;

the service provider consults the purchaser database and on the agreed purchase being permitted by the purchasing rules, the service provider sends payment confirmation to the merchant; and the service provider debits the purchaser account and updates the purchaser database.

The advantage of this is that a parent, for example, can ensure that their offspring do not visit and purchase from unsuitable sites and at the same time, the offspring is happy because his or her purchases are not scrutinised by the parent. Effectively, the child has limited independence of purchase and confidentiality, while at the same time, the parent has some comfort that the purchases being made are reasonably suitable.

For example, the purchasing rules may comprise a limit on the total monetary amount to be spent within a predefined period; a limit on the total monetary amount to be spent on the one site classification in a predefined period ; and/or a limit on the total monetary amount to be spent on the one group of site classifications in a predefined period. In this way, without imposing rigid rules on a child, a parent can have some control over the manner in which purchases are being made. In some of these situations, it will be necessary, on debiting a purchaser account, that the service provider updates the purchasing rule to show the new limit of the total monetary amount to be spent in the predefined period.

Ideally, the service provider maintains a transaction log for each purchaser account accessible only by defined authorised persons.

In another embodiment of the invention, on establishing the purchaser account, purchaser account access rules are established for what defined information about the account is to be given to identified authorised persons. The advantage of this is that a parent might want certain limited information about his or her child's purchases without breaching their confidentiality such that they have some idea as to how much was being spent on clothing, on food, entertainment, etc.

The merchant site is divided into a number of sub-sites and each sub-site is allocated

a unique site classification for the merchant and on requesting connection to a merchant site, the purchaser is connected to those site classifications allowed by the purchasing rules. This will obviously be necessary where a merchant has a considerable range of goods and services.

It is envisaged that on the purchaser requiring access to the database of merchant sites, the service provider downloads only those sites having a site classification from which purchases can be made. Obviously, if someone is to be denied access to a site, it is probably better that they never know the site exists.

It is envisaged that on entering a merchant site in the database, the service provider agrees settlement and purchase rules with the merchant for purchases from purchaser accounts. The advantage of this is that this allows the service provider obtain advantage in some way from the fact that the merchant has had his or her site registered with the service provider.

Ideally, these settlement and purchase rules comprise the fixing of payment periods each terminating on an agreed completed purchases payment target date on which all purchases confirmed by the merchant as completed within the payment period will be paid. This has manifold advantages to both the merchant and the service provider or financial institution employing the service provider. Instead of the merchant receiving a large number of small payments and having to reconcile all these small payments against various customer accounts, effectively what the merchant has is the one payment of a large number of items for the one service provider account. This is substantially easier to use and operate for the merchant than any other system.

Further, for the financial institution, they have the advantage of only having to make the one payment. This can be a particular advantage where foreign currencies are involved.

The settlement and purchase rules include the payment of a fee to the service provider depending on the aggregate amount paid to the merchant at the target date.

Obviously, because the merchant can only deal with the purchaser through the service provider, the service provider may take advantage of this.

Ideally, on the purchaser opening a communications link with the service provider- the service provider authenticates the identity of the purchaser; and the service provider downloads the purchasing rules including, if appropriate, the amount still available for purchases until the expiry of a predefined period.

This may be by way of PIN number or by a third party authentication provider. The advantage of this is that the purchaser can then use any computer once they have their PIN number.

Ideally, on a purchaser account being established in one base currency and a purchase takes place in another currency, the purchase price is converted into the base currency at the time of purchase and the purchaser account is debited accordingly. This means that the account can be operated in real time.

In another embodiment of the invention, on the service provider sending payment confirmation to the merchant, the service provider- confirms to the merchant of a completed purchases payment target date on which payment will be transferred to the merchant subsequent to confirmation of the purchase being completed by the merchant; stores the payment due to the merchant for the purchase; on the target date, if completed, transfers payment and purchase data to the merchant; and if uncompleted, stores the purchase data until the next target date.

There is now only one payment to the merchant and only one payment required from the service provider.

In another way of carrying out the invention, the service provider is connected to a

financial institution and in which the service provider for payment confirmation :- opens a communications link with the financial institution; downloads the purchase data; requests the financial institution to confirm payment; and on the financial institution confirming payment to the merchant, the service provider debits the purchaser account in the purchaser database.

The advantage of this is that the financial institution is now in direct contact with its own customers.

Ideally, the customer establishes the purchaser account with the financial institution and the financial institution downloads the account details and purchasing rules to the service provider. In this way, the financial institution keeps a very good relationship with its own customer.

Ideally, the financial institution :- confirms to the merchant the completed purchase payment target date on which payment will be transferred to the merchant subsequent to confirmation of the purchase being completed by the merchant ; stores the payment due to the merchant for the purchase; on the target date, if completed, transfers payment and purchase data to the merchant ; and if uncompleted, stores the purchase data until the next target date.

Ideally, if the purchase is uncompleted at the target date, the purchase data is sent to the merchant.

Further, the invention provides a purchasers method of trading using a service provider on the world wide web where the service provider has access to a merchant database of merchant sites, the service provider has access to purchasing rules established by a customer who has opened a purchaser account with the service provider to allow the purchaser trade on the world wide web with the merchants through the service provider and subject to operation of the purchasing rules by the service provider comprising:- the purchaser opens communications with the service provider; the purchaser requests connection to a merchant site; on being connected to the merchant site after the service provider has consulted the purchasing rules, the purchaser conducts purchase negotiations with the merchants; and on the purchaser agreeing a purchase with the merchant, the purchaser requests confirmation of payment from the service provider.

In this latter method, on opening communications with the service provider, the service provider sends the purchasing rules and purchaser account data to the purchaser and/or the service provider sends details of available merchant sites permitted by the purchasing rules.

Ideally, all the other features as already described above in relation to the first method may also be used with this present method.

Further, the invention provides a trading system for a nominated purchaser on the world wide web for carrying out the method as claimed in any preceding claim comprising:- a service provider computer connected to the world wide web;

merchant computers having details of the goods and services available from the merchant sites; a merchant database of available merchant sites accessible by the service provider computer, the sites being classified by the type of goods and services available ; a purchaser account for the nominated purchaser opened by a customer and a purchaser database containing purchaser account data and purchasing rules defined by the customer for the purchaser account including at least defining site classifications from which purchases can be made; a purchaser database containing the purchaser account and associated purchasing rules ; a customer computer connected to the world wide web; means in the service provider computer, on receiving a request from a purchaser computer for connection to a merchant site for consulting the purchaser database for connecting the purchaser computer to the merchant computer on the connection being permitted by the purchasing rules; means in the service provider computer on receiving an agreed purchase request for then consulting the purchaser database and on the agreed purchase request being permitted, of causing payment confirmation to be sent to the merchant computer ; and means in the service provider computer, on payment confirmation being sent to the merchant computer, of updating the purchaser database with the purchase data.

In another system according to the invention, the system comprises:- a financial institution computer containing the purchaser accounts established

by a customer of the financial institution ; and means in the financial institution computer, on the agreed purchase request being permitted by the service provider computer, of sending confirmation of future payment to the merchant computer on completion of the purchase.

In either of these latter systems, means may be provided by storing data of all purchases and for sending payment data for subsequent payment to the merchant computer on confirmation of completion of the purchase.

The methods described above may be carried out by a computer program to carry out the method, by a computer program comprising program instructions for causing the computer to form the method, it may be program instructions for loading onto a computer to constitute the processing means of the trading system described above, it may be a computer program embodied in a record medium, in a read only memory, stored in a computer memory, or carried on an electrical signal carrier.

Detailed Description of the Invention The invention will be more clearly understood from the following description of some embodiments thereof, given by way of example only, with reference to the accompanying claims, in which:- Fig. 1 is a stylised layout of a trading system according to the invention, Fig. 2 (a) and (b) are flowcharts of setting up the trading system according to the invention, Figs. 3 to 5 is a flowchart of one way of trading according to the invention, and Fig. 6 is a flowchart of part of another way of trading according to the invention.

Referring to the drawings and initially to Fig. 1 thereof, there is provided a trading system, indicated generally by the reference numeral 1 connected to the world wide

web comprising a service provider computer 2 connected to a merchant database 3 and a purchaser database 4. A financial institution, including a financial institution computer 5 connected to customer databases 6, purchaser account databases 7, is also connected to the world wide web. Merchants 8 having merchant sites and computers are also connected to the world wide web, as are a series of purchaser computers 9.

While, strictly speaking, the merchant and merchant site or merchant computer are separate entities, they are all referred to, for simplicity, by the one reference numeral.

Thus, reference to a merchant computer can, in effect, be a reference to a merchant, since the merchant operates the computer and while the computer can perform many of its functions automatically, it is still a function of the merchant, similarly with purchasers and the financial institution. Thus, for example, a purchaser computer 9 might be used by different purchasers. However, it is convenient to refer to them all as purchasers 9 or purchaser computers 9. Equally well, the same applies to the service provider which is sometimes referred to as the service provider computer 2 and other times, to the service provider 2. There is really no distinction.

Briefly, to overview the trading system according to the invention, the service provider 2 which may be independent of, namely, supplying a service to, or may be part of the financial institution 5, acts as an intermediary between the purchaser computers 9 and the merchants 8. The service provider 2 handles all the monetary transactions between the purchaser 9 and the merchant 8. The service provider 2 holds in the merchant database 3, details of merchant sites which are classified by the goods and services that they provide. The service provider 2 therefore has the power to exclude merchants 8 from the merchant database 3 or to classify the sites as the service provider 2 desires. Further, the service provider 2 stores, in the purchaser database 4, details of various purchasing rules. For example, as will be described in more detail below, the purchaser database 4 could contain details of the total amount of money that the purchaser can spend at any one type of site, could detail the amount of money that can be spent in total by the purchaser, and could also detail the particular sites that the purchaser can visit. Similarly, the financial institution 5 can contain the normal customer database 6 with customer database accounts information and can also contain purchaser account information in the purchaser account database 7, which

purchaser accounts would have been set up by the customer who would, with the financial institution, decide on the purchasing rules that they wished to have for the purchaser account. As explained already, these purchasing rules could relate to sums of money to be expended on particular types of sites, the total sums of money to be spent within a period, or could, for example, be simply accounts topped up by the customer as the customer desired. Alternatively, the customer account 6 could be debited regular sums of money by the financial institution 5, which regular sums of money would then be credited to the purchaser account database 7. In turn, the information from the purchaser account database 7 can be sent to the service provider 3 which in turn will update the purchaser database 4.

In simple operation, the purchaser, through the purchaser computer 9, contacts the service provider 2 and the service provider 2 looks up the purchaser database 4 and then allows the purchaser 9 contact with the various merchant sites 8, which merchant sites for which the purchasers are permitted access through the service provider 2.

The service provider 2, when the purchaser 9 has carried out a purchase with the merchant 8, then downloads the purchase information to the financial institution 5 which consults the purchaser account database 7 and then, with the merchant 8, agrees payment. It will be appreciated that the financial institution 5 could store all the payments due to a particular merchant 8 for a particular period and at the end of the period, on the merchant 8 having confirmed completion of the purchase, would then make payment to the merchant.

Referring now to Figs. 2 (a) and (b), the setting up of the various accounts is shown in more detail. In step 20, the service provider contacts a merchant and enquires as to whether the merchant wishes to be part of the trading system. Attemativeiy, it could be, in step 20, that the merchant contacts the service provider in an effort to have his or her service or goods listed with the service provider. The latter becomes more likely as the system expends. It is not for the merchant the same as signing up with a credit card provider such as VISA, MBNA, or AMEX, since without them, a sale may still be made. In step 21, the merchant and service provider agree rules. These rules would typically be the manner in which the merchant is to be paid. They would also include rules as to how the merchant 8 would operate with the purchasers 9. In other words, for example, that the merchant 8 would not then deal directly with the purchasers 9 but

only through the service provider 2. The manner and number of these rules is merely a matter of choice for the service provider 2.

In step 22, the service provider allocates a site classification to the merchant. The service provider might, in step 22, allocate more than one site classification to the merchant. For example, if the merchant produces various types of goods, then the service provider might agree with the merchant, various site classifications for the range of goods and services provided by the merchant The merchant would then agree only to download through the service provider, those site sub-classifications agreed with the service provider. In step 23, then the merchant site is entered into the merchant database 3 and the merchant site is then ready for subsequent downloading.

Fig. 2 (b) shows the normal way in which a purchaser account is opened. The purchaser account would generally be opened by a customer 6 with the financial institution 5 who will in turn enter the purchaser account into a purchaser account database 7 and this will all be done in step 25. In step 26, the customer and the financial institution will define the rules under which the account is to be operated.

Then, in step 27, these rules and the purchaser account data are entered into the purchaser database 4.

These rules can be of any shape or format as defined by the customer. For example, the rules could define the sites which the purchaser is to be allowed contact through the service provider. Almost certainly, this would be the situation in every case. It might be all the sites but generally speaking, would not be. For example, a parent with children of varying ages, might allow access to different sites for different age of child.

Further, there might be defined the monetary value that can be spent in any one time period with any particular type of site, cosmetics looming larger on a girls horizon than on a boys and thus a parent would not normally have to limit a boys access to such sites. Further, the rules might define the total amount to be spent in any one time period while, at the same time, defining a maximum for certain sites. Thus, for example, a parent might say that the total aggregate amount to be spent over all the sites in any one time period was, for example, £100 per month, and that no more than £50 was to be spent in any one time period of any one month on particular sites.

However, if there was a balance in the account at the end of a month, then the purchaser could spend that money any way he or she desired within the rules of the sites that can be purchased from. Further, the customer might define rules as to his or her access to the purchaser account. The customer might only require to know the total amount spent in any time period but might also agree with the purchaser that he or she is to be told the amount that is spent on particular sites in any particular time period. One can imagine a situation arising where a parent would be anxious to make sure that an offspring was spending sufficient money on books or on food and clothing and not spending it all on particular types of goods. Again, the number and type of rules are totally flexible. Effectively, it is an electronic purse setting out defined parameters as to the type of service provider or supplier than can be used and paid from it. The whole purpose is that there would be a limited sum of money which can never be overdrawn.

Referring now to Figs. 3 and 4, in step 30, the purchaser contacts the service provider.

The purchaser will be required to identify himself or herself either by a PIN number or through some third party authentication service. In step 31, the service provider downloads account and site information, that is to say, details of merchant sites and details of the balance due in the purchaser account, and any rules now pertaining to purchases. In step 32, the purchaser requests access to a merchant site and in step 33, the service provider consults the rules in the purchaser database 4 and, in step 34, decides whether contact and thus connection is to be permitted or not if connection is not permitted, then, in step 35, the service provider rejects the request for connection to the merchant site and informs the purchaser who can then either repeat step 32 or terminate the session. Presuming that the contact is permitted, then in step 36, the service provider connects the purchaser to the merchant site. In step 37, dealing is carried out with the merchant by the purchaser in the normal manner., filling up a shopping basket, accessing services, or whatever as the case may be.

In step 38, the purchaser requests a purchase from the merchant and deals with the merchant or alternatively may decide not to, in which case, in step 39, at some time during the purchase negotiations, the purchaser terminates the connection.

Presuming, however, that the purchase is completed with the merchant, the merchant then downloads the purchase data, in step 40, to the service provider. In step 41, the

service provider consults the purchaser database and consults the purchasing rules, and then in step 42, the service provider accepts the purchase or alternatively, rejects it. If the purchase is rejected, then in step 43, the purchaser is informed and the purchaser can either, in step 44, terminate the session, or, in step 45, decide to continue with the merchant and re-contact the merchant, repeating step 37. A situation that could allow the purchaser to do this would be, for example, where the purchaser had attempted to purchase goods, the monetary value of which exceeded the agreed monetary value to be used for such a purchase.

Presuming that the service provider accepts the purchase as in step 42, then in step 46, the service provider confirms to the purchaser that the purchase has been accepted and in step 47, the purchaser terminates the session. Simultaneously, in step 48, the provider confirms to the merchant that the purchase has been accepted and in step 49, the merchant confirms to the service provider than the purchase has been completed. This may take some time because it must be appreciated that a merchant may not be able to complete a purchase immediately because it may be a question of posting goods, all of which may not necessarily be available immediately.

Altematively, the merchant may download, for example, music or the like, immediately.

However, there is a need for the step of the merchant confirming completion of the purchase to the service provider. In step 50, the service provider stores the purchase data and in step 51, at the payment date, pays the merchant so that in step 52, the transaction is completed. Once the service provider, in step 48, has confirmed to the merchant that a purchase will be carried out and has been accepted, then in step 53, the provider simultaneously updates the purchaser database so that the rules, etc. can be updated.

The method described above describes a system where the service provider actually provides the payment. This probably would be the situation where the service provider and the financial institution were all the one body. Altematively, as in the embodiment described in Fig. 1, the service provider might not necessarily be the financial institution but could be a service provider handling more than one financial institution.

In this case, referring to Fig. 6, after the service provider has consulted the rules and everything is in order, instead of carrying out step 42 and accepting the purchase, the service provider in step 60, informs the financial institution which would simultaneously

check the purchaser account and presuming that everything was in order, then, in step 61, the financial institution would confirm to the merchant the acceptance of the order and in step 62 would simultaneously update the purchaser database. Also, simultaneously, in step 63, the financial institution would confirm to the purchaser that the order had been accepted and in step 64, the purchaser would end the session.

Then, when the merchant confirms completion of the purchaser to the financial institution, in step 62, the financial institution would store the purchase data in step 65 for subsequent payment. Then, at a suitable payment date already agreed with the merchant, in step 66, the financial institution would pay the merchant and thus the transaction would be completed in step 67.

What has to be appreciated is that as more companies and merchants generally become connected to the word wide web, it may also be used for customer present transactions. For example, it would be relatively simple for a supermarket to use the present invention by installing terminals in the store which could be used to carry out the invention.

It will be appreciated that the financiat institution or the service provider can arrange any particular terms for payment with the merchant. As far as the merchant is concerned, there are considerable advantages in this. If the merchant is dealing with a financial institution or a service provider who is authorised by the financial institution to accept purchases, then the merchant does not have to send each of the purchases as at the present moment, for subsequent clearance. Very often, merchants have a monetary limit below which they do not send purchases for clearance but in this particular case, the merchant would be able to establish rules relatively simply within his own organisation whereby all transactions with named financial institutions were dealt with directly by the financial institution thus reducing processing costs and risks considerably for merchants. When it is considered how much fraud costs merchants in these types of trade, it can be appreciated that the merchants will be most anxious to deal with the financial institutions directly. Further, for the financial institutions, instead of having to process an inordinate number of small payments, the financial institution will simply gather and collate all the payments for a merchant for a particular period and then will make the one financial transaction with all the payment details.

This further has considerable advantages at the other end for the merchant who is

receiving the one bulk payment with all the payment data and is not required to process a large number of lodgements for relatively small sums of money. The great advantage for the merchant is that there is a guaranteed payment. Both of these means that for the financial institution, they should be able to obtain very good credit terms or some discount for more immediate payment.

One of the major problems of remote trade relates to handling multiple currencies. It can be agreed that the financial institution will, on the date of the transaction, make a conversion and update the purchaser account in such a manner that the purchaser account is always handled in the one currency and neither the purchaser nor merchant has to worry about the currency transactions. Since the financial institution will be able to store all the transactions for the particular currency for that particular merchant in the one account, then the bank will have simply the one cost of purchase of the foreign currency at the end of the particular settlement period. Thus, for example, a bank might agree with a merchant a particular settlement date and they would simply collate and gather all the payments for that merchant in the merchant's chosen currency and then simply make the one payment in that currency to the merchant. This has considerable cost savings for the financial institution.

It will be appreciated that the trading method and system according to the present invention allows the purchaser to have a fair deal of privacy, if not complete privacy, within the purchasing rules. The parent need never know, for example, if the child has purchased from particular sites or not. This gives the child a considerable amount of purchasing freedom while, at the same time, retaining a certain amount of parental control. It also has an advantage that a child cannot run up any debts because the accounts can be operated in such a way so that they can never be overdrawn.

Alternatively, for example, a parent can allow a child have an emergency amount of money for purchases which, when the emergency amount of money is used, the parent, that is to say the customer may be alerted to the fact that the emergency money has been used. A further example is that the customer can decide on the sites on which purchases are to be made and this can be updated on a regular basis.

Ideally, the activation of any trade will be done by the use of a PIN number but could equally well be done through a third party authentication site or computer. A further

advantage is that if, by any chance, a PIN number is stolen or some other means is used to access the purchaser account, the total amount of money that can be stolen is determined by the amount of money in the purchaser account which can generally be relatively small.

Records such as purchasing logs will be maintained. Similarly, analysis of the purchases for both the customer and purchaser may be provided.

A service provider can negotiate a discount or fee with a merchant which can be shared with the customer as a loyalty bonus.

A further advantage for the financial institution is that there is no disintermediation between the purchaser and potential future customer and the financial institution. The financial institution is in control, the financial institution has now got the purchaser as a client without all the risk attendant on managing such a client account. It also allows the financial institution to decide what services and goods will be advertised to the purchaser subject to the purchasing rules. It will also allow the financial institution to profile the purchasers and to ensure that any advertisements or other promotions are finely tuned to a particular purchaser. Again, the customer will not want inappropriate advertisements sent to their offspring. Also, records of previous purchases can be kept to further assist in profiling the purchaser.

It will be further appreciated that computers may be the ideal way of carrying out the invention and that the computers may be programmed to carry it out or the invention may be embodied on a computer disk, on readable medium, and so on. It will be appreciated that the programming of computers to carry out the methods according to the present invention and to provide computer programs which, when loaded onto a computer or computers, will provide the processing means described herein. Such processing means are inherently required to allow the computers described above to carry out their functions. Such computer programs may be embodied on a record medium, stored in read only memory, on a computer memory or carried on an electrical signal carrier.

In the specification the terms"comprise, comprises, comprised and comprising"or

any variation thereof and the terms"include, includes, included and including"or any variation thereof are considered to be totally interchangeable and they should all be afforded the widest possible interpretation.

The invention is not limited to the embodiments hereinbefore described but may be varied in both construction and detail.