SYSTEM AND METHOD FOR A WIRELESS PURCHASE REQUEST AND PAYMENT FOR GOODS OR SERVICES Technical Field The present invention relates to a new type of system for and method of the purchase of goods or services using the transmission of a purchase request via wireless means, and in particular to the purchase of goods or services whereby the purchase is requested by a mobile handset user via the mobile handset. Also in particular, the present invention relates to a computer program which facilitates a wireless request for the purchase, access or rental of goods or services by a mobile handset user making use of the mobile handset.

More particularly, the present invention relates to the wireless transmission by a mobile handset user of a purchase request for a prepaid mobile handset voucher, and a means for effecting payment for the prepaid voucher.

Background Art Presently, it is known to provide a user of a mobile handset with access to a communications network by allowing the user to purchase prepaid mobile handset vouchers, the value of which can be applied to the user's prepaid mobile handset account, from organisations offering such prepaid vouchers. For example, in Australia a user can purchase preset values of prepaid vouchers (i. e. mobile handset recharge cards) from a telecommunications service provider, such as Telstra (an Australian company), or an authorised reseller.

This allows the user to access a telecommunications network and associated services with a mobile handset, and also sets limits on the costs incurred by the user (i. e. the value of the prepaid voucher) for use of the telecommunications network or associated services.

To make use of this service a user is required to establish a"prepaid account"with a telecommunications service provider (i. e. telecommunications carrier), through an authorised retail outlet. A prepaid voucher can then be purchased by the user from a retailer. To use the prepaid voucher the user dials a number supplied by the telecommunications service provider and types in via the mobile handset keypad, the designated prepaid voucher number which appears, usually as a string of numeric and/or alpha digits, on the prepaid voucher.

This acts to apply credit to the user's prepaid account which has previously been established with the telecommunications service provider.

Prepaid vouchers (i. e. mobile handset recharge cards or the like) can presently only be bought from certain retailers. A user, or someone else on behalf of the user, is required to attend the premises of such a retailer and purchase a prepaid voucher. This situation has disadvantages. For example, the user is required to physically attend the premises of the retailer. Furthermore, the user cannot access a telecommunication network if the credit in the user's prepaid account has been exhausted other than to access the toll free IVR system for recharging and the user cannot purchase a prepaid voucher, which may occur, for example, if retailers are closed.

This identifies a need to provide a user with a prepaid voucher via wireless means, for example by transmitting the prepaid voucher to the user's mobile handset. A further problem then also arises, concerning how to retrieve payment from the user for a wirelessly transmitted prepaid voucher. It would be possible to require the user to supply credit card details prior to sending a prepaid voucher to the user, and perform a funds transaction before delivering a prepaid voucher to the user. However, a problem with this approach is that generally most prepaid voucher users do not have credit cards. Furthermore, if direct debit accounts were to be used, funds cannot be deducted in real-time (due to technology and policy/regulatory restrictions).

Organisations are reluctant to deliver goods or services to a user (i. e. customer) and then attempt to obtain funds afterwards through an overnight funds settlement process. This further identifies a need to provide a user with a prepaid voucher via wireless means and obtain payment for the prepaid voucher.

Also, at present, a user is limited in the types of payment systems with which the user can purchase various goods or services using a mobile handset. For example, it is known that at present a mobile handset user can purchase a mobile handset ring tone using a mobile handset by purchasing vouchers which entitle the customer to a number of ring tones. These tones are delivered to the mobile handset by dialling a number and entering in the code for the desired ring tone, or selecting the ring tone from a web site and entering the designated voucher number. This system has the same drawbacks of the current prepaid voucher system.

Also, it is known that at present a mobile handset user can purchase cans of soft drink at specific locations by dialling a specified number on the delivery device (a vending machine). The funds are deducted from the user's account. {This system is at present limited to Telstra customers with a non-prepaid account and is currently not available for pre-paid accounts with any carrier.} Moreover, a user is limited in the types of goods or services which are able to be purchased or requested via a mobile handset. If the user does not have a credit card or an existing billing arrangement with an organisation, then the user is typically prevented from purchasing goods or services if the organisation requires payment before delivery of the goods or services to the user. Still furthermore, many users are reluctant to provide credit card details over the Internet or to an unknown organisation. This identifies a need for a new type of system for and/or method of the purchase of goods or services by using the transmission of a purchase request via wireless means, and associated payment means. This also identifies a need for a new type of computer program for facilitating the aforementioned systems or methods.

Definitions As used herein the term mobile handset should be considered as equivalent to the term mobile phone, cellular phone, cell phone, car phone, satellite phone, module and the like. This includes all forms of mobile, transportable or portable telephones or handsets. The term mobile handset should also be taken to include any device which is able to connect to a wireless communications network and wirelessly transmit data, multimedia content or information to a remote device, for example a remote computer system, over the communications network. This could include, for example, mobile data terminals, personal digital assistants (PDAs), or pagers. The communications network infrastructure may include switches, base stations, bridges,

routers, or any other such specialised components, which facilitate the connection between a mobile handset and a communications network.

Prepaid account: is a mobile handset user's service subscription with a telecommunications or other industry sector service provider (or telecommunications carrier) which can hold an amount of credit (prepaid) which allows a mobile handset to access and utilise a service provider's network and associated services.

Prepaid voucher (or recharge card, recharge voucher, prepaid card, or the like): is purchased by the user from a service provider, reseller, retailer, or the like, and when activated or used applies credit to the user's prepaid account which has previously been established with the telecommunications or other industry sector service provider.

User account (or customer account): is the account held on a management computer system which holds information on the user's entitlement to be issued with a pre-purchased prepaid voucher.

Financial institution account (or bank account): is a monetary account or facility held by the user's financial institution or card issuer. The financial institution account can be debited after obtaining user authority.

Disclosure of Invention In its various embodiments the present invention seeks to provide a system, method or computer readable medium of instructions which overcomes, or at least ameliorates, the aforementioned and other problems inherit in the prior art.

In a broad form, the present invention addresses existing problems by allowing a user to register with a payment system which pre-purchases a prepaid voucher. Preferably, the pre-purchase is via an overnight settlement process. After the transfer of funds is completed the user is registered with the payment system and a user account is appropriately credited. This could be thought of as pre-allocating a prepaid voucher to the user account, or an entitlement to a prepaid voucher, which the user can request when required. Hence, the user account holds an entitlement to a prepaid voucher which the user has already purchased and may request at any time. The process of requesting the prepaid voucher also triggers a process of deducting further funds from the user's financial institution account, which results in a new prepaid voucher being allocated to the user account for when next required by the user.

Preferably, the prepaid voucher is delivered to the user's mobile handset via the Short Messaging Service (SMS). In another form of the invention, the prepaid voucher could be delivered to the user via Enhanced Messaging Service (EMS) or Multimedia Messaging Service (MMS). The prepaid voucher could be delivered to the user by any other means over a communications or telecommunications network. It should be appreciated that any form of'messaging'involving transmissions over a wireless network could be utilised to transmit the prepaid voucher.

When received the user then applies this prepaid voucher to the user's prepaid account with a telecommunications service provider. In another embodiment, the prepaid voucher can be directly applied to the user's prepaid account with the telecommunications service provider without the user being required to receive and then apply the prepaid voucher.

In another broad form, the present invention provides a payment system which allows a user to request, via a mobile handset, the purchase of goods or services which are paid for by management software debiting the user's financial institution account according to a pre-existing debit authority.

In a further broad form, the present invention provides a system which allocates an entitlement to a prepaid voucher to a user of a mobile handset, the entitlement to the prepaid voucher being recorded in a user account in a management computer system, and whereby the user can request the prepaid voucher be delivered via a mobile handset. Preferably, after the prepaid voucher is delivered the user's financial institution account is debited and an entitlement to a new prepaid voucher is recorded in the management computer system.

In still a further broad form, the present invention provides a system for allowing a user of a mobile handset, with the user having a prepaid account with a telecommunications service provider, to add credit to the prepaid account, the system including: . the mobile handset operated by the user; a management computer system which is able to communicate with the mobile handset; management software resident in the management computer system, the management software including a user account, the user account recording any entitlement of the user to a prepaid voucher; a financial institution computer system which is accessible via some electronic means, whether in real-time or by a message sent to the institution, by the management computer system, the financial institution computer system holding a financial institution account for the user; and whereby, in response to a request by the user, the request being wirelessly transmitted from the mobile handset to the management computer system, for a prepaid voucher, the management software transmits the prepaid voucher to the mobile handset and subsequently requests a transfer of funds from the user's financial institution account to a nominated bank account, which when confirmed, results in an entitlement to a new prepaid voucher being recorded in the user account.

In accordance with yet another broad form, the present invention provides a payment system for allowing a user of a mobile handset, the user having executed a debit authority enabling funds to be transferred from a financial institution account to a nominated bank account, to purchase goods or services from a third party using the mobile handset, the system including: the mobile handset operated by the user; zea management computer system;

* management software resident in the management computer system; zea financial institution computer system which is able to communicate with the management computer system, the financial institution computer system holding the financial institution account for the user; zea third party computer system which is able to communicate with the mobile handset, the third party computer system used by the third party to receive requests for goods or services; and whereby, in response to a request by the user for the purchase of selected goods or services, the request being wirelessly transmitted from the mobile handset to the third party computer system, the third party requests funds from the management computer system which results in a request for a transfer of funds from the financial institution account to a nominated bank account, which when confirmed, results in the management software transferring the required funds and a purchase request to the third party for the goods or services.

In another embodiment of the present invention, there is provided a method of providing a user with a prepaid voucher which can be used to credit a prepaid account with a telecommunications service provider, the method allowing the user to request and receive the prepaid voucher via a mobile handset, the method including the steps of : the user being registered in a management computer system; the user wirelessly transmitting a request for a prepaid voucher to the management computer system which hosts management software; the management software checking the status of a user account for user entitlement to the prepaid voucher; the prepaid voucher being transmitted to the mobile handset; and the management software causing funds to be transferred from a financial institution account in a financial institution computer system to a nominated bank account, which when confirmed, results in an entitlement to a new prepaid voucher to be recorded in the user account.

In yet another embodiment of the present invention, there is provided a computer readable medium of instructions residing on a management computer system, the computer readable medium of instructions forming part of a system for facilitating a user of a mobile handset to add credit to a prepaid account with a telecommunications service provider, the computer readable medium of instructions including procedures for : receiving a request for a prepaid voucher, the request having been wirelessly transmitted from the mobile handset to the management computer system; checking the status of a user account for user entitlement to the prepaid voucher; transmitting the prepaid voucher to the mobile handset; requesting a transfer of funds from a financial institution account to a nominated bank account; and when the funds transfer is confirmed, adding an entitlement to a new prepaid voucher to the user account.

In still yet another embodiment of the present invention, there is provided a computer readable medium of instructions residing on an management computer system, the computer readable medium of instructions forming part of a system which facilitates a user of a mobile handset to purchase goods or services from a third party using the mobile handset, the computer readable medium of instructions including means for: receiving a funds transfer request from the third party computer system; * requesting a transfer of funds from the user's financial institution account in a financial institution computer system to a nominated bank account; sending a purchase request to the third party confirming the transfer of funds; and . sending the funds to the third party for the goods or services.

According to one aspect the request by the user is an SMS request. In a broad sense the goods or services may be"content"which can be wirelessly delivered to the user's mobile handset. In a particular embodiment, the content is delivered directly to the user's mobile handset from a third party, or to the user's mobile handset via the management computer system. In a particular form of the present invention, the content is prepaid Internet recharge vouchers, mobile handset ring tones, logos, graphics, video, music, subscription services, or the like. In a further form of the invention the goods or services requested by the user may be delivered by physically delivering or picking-up the goods or services.

In one embodiment, the prepaid voucher is an SMS message as representative of a wirless message. In a particular form of the invention the management computer system sends a SMS confirmation of the user's request or purchase confirmation to the user's mobile handset or other nominated mobile handset. In accordance with another specific embodiment of the present invention the mobile handset is not the user's mobile handset. In a further embodiment of the present invention, the nominated bank account is nominated by a Manager of the management computer system. In a further particular embodiment of the present invention, the third party computer system is integrated with the management computer system. In still a further embodiment of the present invention, the nominated bank account and the user's financial institution account are not in the same banking computer system.

The present invention according to yet another aspect provides that the funds transfer is by direct debit from the user's financial institution account. In other forms, the funds transfer can occur using any other form of electronic payment, for example, credit card. In a further broad form of the present invention, the management software provides for the registration of user's, account processing and payment, and receiving user requests.

According to one embodiment of the present invention, the distribution channels (eg. dealers) receive an on- going revenue stream from pre-paid'connections', similar to post-paid mobile connections.

In a particular form of the present invention the management software is based on the JAVA programming

language. In a particular form of the present invention, a Personal Identification Number (PIN) or password is required to be supplied by the user via the mobile handset before the user's request is processed.

In a further embodiment of the invention, the authentication is provided by an image of the users face captured by a camera contained or connected to the mobile handset and delivered to the biometric authentication component of the system. The face recognition process involves software within the system to generate a small file of approximately 2000 bytes known as a biometric template that represents the salient features of the user's face that can be understood by software in an authentication process to validate an image captured on the user's mobile handset and compared to/with or against the biometric template generated by the system. The face recognition process is triggered which verifies (within high bounds of statistical probability) that the user of the mobile handset is the same person enrolled in the system by comparing the user's biometric template created during the enrolment process and compared with the processed image either generated on the mobile handset or transmitted to a biometric authentication system allowing the system to authenticate the user. Further, content purchased or delivered by the system can be digitally signed (and encrypted if required) with the user's biometric template incorporated into the content to enhance the content owners rights to control and or monitor how the content is distributed including options such as authentication processes involving the user having to present their captured image to the system whenever the content is required to be accessed or played. In addition to purchasing and accessing content used in the system, this'use of content transaction'could be used as a service to ensure secure delivery of emails and documents over the Internet requiring the user to authenticate themselves with the system's biometric authentication server whenever highly confidential emails, content or documents are required to be accessed either directly on the user's mobile handset or delivered to an Internet service or the user's email service. This embodiment of the invention provides a low cost method of biometric authentication without the user having to purchase personal authentication devices such as tokens or smartcards that must be carried by the user and readers (such as personal smartcard readers) to enquire and/or authenticate the physical token. The enrolment process which could be performed at the retail outlet would incorporate additional steps whereby the retailer would complete a new enrolment or update an existing users biographical enrolment data by confirming the enrolment systems pairing of the biographical enrolment data with the user's biometric template created when the user is directed by the retailer to connect to the system's biometric authentication system. The pairing occurs when the biometric authentication system captures a suitably framed image of the user's face using the user's camera on the mobile handset and creating the user's biometric template, displaying the user's image captured within the retailers online enrolment screen and requesting the retailer validate that the image displayed on their enrolment screen is of the person being enrolled by them. When the retailer confirms this to be the case, the system pairs the biographical enrolment data (including the user's financial institution account details and associated payment authority agreed during the enrolment process) with the user's biometric template created during enrolment. The user's biometric template can be stored on the system's biometric authentication server requiring to be paired with the user's biographical enrolment data whenever a financial transaction or use of content transaction is required to be performed. Alternatively, and subject to the technology embodied within the user's mobile handset, the

user's biometric template could be securely stored on either the smartcard that serves as the user's subscription identity module or in a secure'electronic wallet'or similar concept incorporated into the user's handset. Alternatively, the further embodiment of the invention could provide for a biometric validation engine to be licensed by mobile handset manufacturers and incorporated into future mobile handset models that allow for the local authentication of the user's biometric template without having to connect to the system's biometric authentication system to provide authentication services. In this embodiment, the face recognition process would occur on embedded software within the handset and the software would send an authorisation token, rather than the captured image of the user, to the system during the purchase request.

Brief Description of Figures The present invention should become apparent from the following description, which is given by way of example only, of a preferred but non-limiting embodiment thereof, described in connection with the accompanying figures, wherein: Figure 1 illustrates a broad schematic of an embodiment of the payment system; Figure 2 illustrates a broad schematic of a specific embodiment of the method of the present invention; Figure 3 illustrates the main use cases according to an embodiment of the present invention; and Figure 4 illustrates a logical view of the main entities of a particular embodiment of the present invention.

Modes for Carrying Out the Invention Overview Referring to figure 1, a general schematic of the payment system 10 is illustrated. The user 15 has access to a mobile handset 20. The user 15 also has a user account 25 which is recorded in the management computer system 30. The management computer system 30 is administered or managed by a Manager (or Management organisation). The user 15 is additionally required to have a financial institution account 35 held in the financial institution computer system 40. Resident in the management computer system 30 is management software 45. The management software 45 can provide functions for processes such as user registration, account processing and payment, and receiving user wireless requests for a purchase, which could be for a prepaid voucher.

In use, the user 15 desires to purchase user selected goods or services from a third party or the Manager. The third party operates a third party computer system 50 which can at least receive requests for goods or services. Goods or services may include prepaid vouchers or prepaid starter kits for access to a telecommunications network and associated services, "content"such as mobile handset ring tones, logos, graphics, video, music, subscription services, etc, or any other goods or services which are required to be physically delivered to, or picked-up by, the user 15. Prepaid vouchers need not be physically delivered to the user 15, and"content"can be wirelessly delivered to the mobile handset 20, or any other nominated

mobile handset. A prepaid starter kit allows dealers to activate in-store a SIMcard with a new prepaid mobile service. Previously, the dealer received a package that contained the SIMcard and associated mobile handset number. This may be performed on-line from a retail store.

Prior to requesting goods or services, the user needs to be registered with the management computer system 30. This involves the user authorising the Manager to debit the user's financial institution account 35 when required. After registering, funds are transferred from the user's financial institution account 35 to a nominated bank account, the funds being used to purchase a prepaid voucher on behalf of the user. The user's entitlement to receive the prepaid voucher is recorded in the user account 25.

To request goods or services the user 15 operates the mobile handset 20 causing a wireless request 55a to be transmitted to the management computer system 30, or, an SMS request 55b to be transmitted to the third party computer system 50, depending on the goods or services requested. For example, if the. purchase request is for a prepaid voucher, then the wireless request 55a is sent to the management computer system 30.

If the purchase request is for"content"such as a mobile handset ring tone, then the wireless request 55b is sent directly to the third party computer system 50 offering the ring tone.

When the management computer system 30 receives the wireless request 55a, data or information in the wireless request 55a is passed to the management software 45. If the request is valid, the management software 45 causes a prepaid voucher in the wireless format 60 to be transmitted from the management computer system 30 to the mobile handset 20. If the wireless request 55a is for a prepaid voucher, then the management software 45 checks the user entitlement to a prepaid voucher by checking the user account 25. If the user is entitled to be delivered a prepaid voucher then the management software 45 effects the delivery of the prepaid voucher 60 as a wireless message to the mobile handset 20. The user 15 can then apply or activate the prepaid voucher by dialling a telehandset number indicated in the message. This applies credit, embodied as the prepaid voucher, to the user's prepaid account with the telecommunications service provider, thus enabling the user to access the telecommunications network and associated services.

Furthermore, once the prepaid voucher 60 has been delivered to the mobile handset 20 the management software 45 initiates a request for a further transfer of funds from the financial institution computer system 40, via the computer network 65. The management software 45 requests a transfer of funds from the user's financial institution account 35 in the financial institution computing system 40 to a nominated bank account.

This request can be made immediately or at some later time. When the transfer of funds to the nominated bank account is confirmed by the financial institution computer system 40, an entitlement to a new prepaid voucher is recorded in the user account 25 within the management computer system 30. The user can then obtain this pre-purchased prepaid voucher when required in the future without waiting for funds to clear.

Hence, the user 15 is purchasing an entitlement to be sent a prepaid voucher (which may be referred to as a "prepaid prepaid voucher") for access to a telecommunications network and associated services offered by a

telecommunications network provider and the Manager is acting as a reseller.

When the user 15 requests"content", or other goods or services not being a prepaid voucher, an SMS request 55b is sent to the third party computer system 50. Depending on the nature of the goods or services, delivery, that is wirelessly or physically, and the third party itself, goods or services may be delivered prior to or after the transfer of funds associated with payment for the goods or services from the user's financial institution account 35.

Whether pre-or post-delivery payment is required, the third party computer system 50 can receive the user's purchase request. The third party bills the Manager according to its usual practice. When a request for a transfer of funds is received from the third party operating the third party computer system 50 the management software 45 causes the user's financial institution account 35 to be debited accordingly. The funds can then be transferred to the third party, for example to the third party computer system 50, and the Manager can retain a payment processing fee.

Alternatively, the SMS request 55a received by the management software 45 could be a request for content or physical delivery-type goods or services provided by the third party. The Manager could have an arrangement with the third party to offer selected goods or services. In this situation, the management software 45 can relay the user's purchase request to the third party computer system 50 via the computer network 70. Either before or after the goods or services have been delivered to the user 15 or the mobile handset 20, the user's financial institution account 35 can be debited and funds transferred to the third party (which could be confirmed by communication between the management computer system 30 and the third party computer system 50). It may be a condition in the arrangement between the Manager and the third party that funds must be transferred to the third party prior to delivery of goods or services.

II Modules The following modules provide a more detailed outline of a particular embodiment of the present invention.

The modules are intended to be merely illustrative and not limiting to the scope of the present invention.

System and Processes This section contains various system and process definitions describing the various participants in the method or system and how the participants inter-relate with each other when conducting business within the method or system.

The method or system allows registered users (referred to as Customers in this section) of the method or system to purchase goods and services using a mobile handset. Registration involves a Customer providing an authority to the Manager to pay for goods or services ordered by the Customer.

Goods and Services Goods and services that can be purchased by the Customer in the method or system can broadly be described as: 1) prepaid vouchers: (recharge vouchers) supplied'over the air'to the Customer's mobile handset.

Examples may include Optus'currently existing $30 mobile handset recharge cards, Telstra's currently existing $25, $60 and $100 mobile handset recharge cards ; 2) content: that can be ordered and delivered'over the air'to the Customer's mobile handset.

Examples are mobile handset ring tones, logos, video, music, subscription services and other content; 3) fulfilment : of other goods or services ordered by the Customer through endorsed fulfilment methods using sales points provided by other parties such as websites, Wireless Application Protocol (WAP) sites, IVR and other emerging eCommerce technologies. Fulfilment goods and services are not delivered'over the air'. Delivery is through traditional fulfilment methods such as by courier, mail, email or by Customer pickup. Examples are venue reservations, ordering goods from infomercials or anything that can be sold over the Internet.

Applications Each of these three types of goods or services are generally distinct within the method or system and involve distinct'Applications'. Applications are distinct business models, methods or systems involving different payment and delivery processes. The Applications supported by the method or system can include: 1) recharge vouchers: may be purchased using a prepaid direct debit method. This could also referred to as'prepaid prepaid' ; 2) content: may be purchased using post-paid direct debit referring to the concept that the payment request is made after the goods or services are delivered; and 3) fulfilment : may be purchased using online authorisation of credit card authority.

In one embodiment of the invention, a Wireless Authentication Payment System (WAPS) is provided which caters for each of the Applications identified above.

System/Method Participants Referring to figure 2, in a particular, but non-limiting, form of the present invention, the participants within the method or system can include: (1) The Customer: is a prepaid mobile handset user who registers with the management computer system by providing financial institution account details authorising the Manager to purchase goods or services ordered by the Customer. The Customer might be required to pay the full retail price of a recharge voucher as if the Customer purchased the recharge voucher from a store.

(2) The Dealer Channel (s): functions to register the Customer to the method or system. The Dealer Channel comprises Dealer Groups identified and branded with the recharge products available through the Dealer Channel. Each Dealer Group includes: o a Dealer Franchiser ; and o Dealer Franchisee (s) operating under the governance of the Dealer Franchiser.

When Customers are registered through the Dealer Channel, the Dealer Franchiser and the Dealer Franchisee registering the Customer receive a percentage of every recharge voucher purchased by the Customer as an ongoing commission; (3) The Recharge Provider: performs two functions within the method or system: o introduces one or more Dealer Groups to form the Dealer Channel to participate in the method or system; and o provides (acquires and sells) recharge vouchers to the Manager as a supplier for the recharge products ordered by Customers signing up through the Dealer Channel.

The Recharge Provider bills the Manager for the supply of recharge vouchers making a margin on their cost price. The Recharge Provider does not receive a commission from the Manager.

(4) The Booking Provider: provides content for the method or system that can be ordered and delivered'over the air'to the Customer's mobile handset. The Booking Provider establishes a retail price for their products; the Manager retains a margin of the transaction value.

(5) The Fulfilment Provider: provides goods or services that are not delivered'over the air'to the Customer's mobile handset. Instead of paying by VISA, AMEX or Mastercard, etc. , a Customer chooses to pay using the prepaid mobile handset account held in the system. The Fulfilment Provider should be authorised by the System Owner to cobrand their sales point (eg. website, WAPsite, IVR, infomercial, etc). The Fulfilment Provider establishes a retail price and the Manager retains a commission from the Fulfilment Provider when processing the Customer payment for goods or services ordered using the system or method.

(6) The Manager : provides the operations management functions of the system or method including hosting the system and registration databases, providing dealer support, settlement and reporting services to the various participants, marketing and assumes responsibility for any reward programmes that may be established. In addition, the Manager can also provide oversight and/or outsources a Customer Care Centre and a Customer website service provision. The Manager may make a profit on the difference between the retail price charged to the Customer less the commissions paid to the Dealer Channel, to system support, to clearing payments through the bank, payment of merchant fees, bad debts and the cost to maintain the Customer Care Centre and the Customer website.

(7) The System Licensor: is regarded as the provider of the management software to the system. The System Licensor may provide an exclusive licence to the System Owner and/or Manager to use the management software The System Licensor may be paid a transaction fee as a percentage of each Customer

purchase made in the system. The System Licensor may also be responsible for the maintenance and upgrading of the management software.

(8) The System Owner: is regarded as the owner of the system. The System Owner provides the System Governance and Policy, Business Development and determines Commercial Rights. The System Owner may provide an exclusive or non-exclusive licence to the Manager to use the system.

System Definition and Processes-The Customer The system or method enables prepaid mobile handset Customers the ability to buy vouchers (prepaid recharge cards) using a mobile handset'over-the-air'anywhere and at any time effectively using a bank account. This allows the Customer the'best of both worlds', that is all the convenience of a post-paid account handset with all the advantages of a prepaid account including lower call costs, superior cost control and no minimum spending requirement.

The system requires the customer to register with the system using a password so that the account is secure.

Registering with the system can be performed at an authorised dealer or can be performed using a website.

Part of the registration process involves signing a Direct Debit Authority authorising the Manager to purchase vouchers using the Customer's bank account. Whenever a voucher is ordered by using the mobile handset to send an SMS request, the voucher is sent almost immediately by being previously purchased using the bank account. This also allows a parent to control the use of a prepaid account that can be set up for use by a child or teenager. The parent is identified as the Account Holder and the child/teenager as the Account User, with the parent safe in the knowledge that the account can be used when required, and that the parent knows when vouchers are bought, and also that the prepaid account is secured by a password that only the parent (as the Account Holder) knows.

Furthermore, the system or method can include many advanced features such as'Any Mobile'which allows credit to be bought, even if a Customer does not have any credit left in the prepaid account, by using another mobile handset, for example a friend's mobile handset.

A Customer can also: purchase low value content that can be delivered'over the air'to a mobile handset or like device.

Current examples of such content are mobile handset ring tones, logos, video, music, information services and other content. A bank account or similar can be direct debited to the value of content ordered from the mobile handset or through an authorised website; order or book higher value goods or services over authorised Handset, websites or WAPsites using credit card registration details as the payment method. Using the system as a payment method provides confidence because a Customer does not need to supply credit card details over the handset or over the Internet.

System Definition and Processes-The Recharge Application The Recharge Application is the business architecture of the system which allows Customers to register with the system through authorised storefront dealers or approved association organisations. Customers are required to'register'with the system. Registration occurs when a customer signs up at an Authorised Dealer or other location.

A Dealer Channel includes one or more Dealer Groups associated with a Recharge Provider. A Dealer Group includes a Dealer Franchiser and Dealer Franchisees operating under the governance of the Dealer Franchiser. The system allows for multiple Dealer Groups associated with the introducing Recharge Provider and allows for multiple Recharge Providers within the system architecture. Collectively, this arrangement forms the participants of the Recharge Application, specifically, the collection of Recharge Providers each having contributed Dealer Channels, each of which is represented by Dealer Groups, each of which is identified as the Dealer Group Franchiser and the collection of Dealer Group Franchisees.

A Dealer Channel is typically identified as the collection of Dealers selling one or more brands of recharge card or voucher. As a non-limiting example, at present the Australian market would allow the system to have the following Dealer Channels marketing the following prepaid recharge voucher values: Optus-$30 mobile vouchers, Optus-$14.95/7hr, $19. 95/15hr, $34.95/30hr and $44.95/60hr internet vouchers; Telstra-$25, $60 and $100 vouchers; Virgin-$15; Vodafone-$20, $30, $50, $100 mobile vouchers; AAPT etc.

The system is flexible and allows for any combination of the following types of Recharge Application models which are provided as illustrative examples.

Example 1-Dealer Group becomes the Recharge Provider.

A Dealer Group (say Network Communications-an Optus Premium Dealer) may negotiate the role of the Recharge Provider and introduce its dealerships to form a Dealer Channel. Network Communications dealerships could all be branded with Optus and the Manager brand.

Example 2-Telco Introduces balance of Dealers As an extension of example 1, Optus Communications may negotiate the role of the Recharge Provider and introduce the balance of its Dealer Groups (say Optus World, C21, Tandy and Strathfield Car Radios) to form a Dealer Channel. In this instance, there would be two Dealer Channels providing Optus recharge vouchers. The balance of Optus Dealer Groups would all be branded with Optus and the same Manager brands for both Dealer Channels. The Customer would not be able to discern that there are two Dealer Channels.

Example 3-Telco introduces all its Dealers.

A telecommunications company (say Telstra) may negotiate the role of the Recharge Provider for the Telstra Dealer Channel with Franchisors for Tshops, DSE, Strathfield Car Radio, etc. , introducing their Dealer Franchisees within their respective Dealer Groups to form the Dealer Channel.

Further, Telstra may decide to brand the system as its own product. Subsequent to negotiations with the System Owner, Telstra are licensed as a Manager of their own system and brand the system distinctly from the system described in Example 2.

Example 4-Dealer Group participates in two different Dealer Channels If examples 2 and 3 were to occur at the same time, the Dealer Group Strathfield Car Radio which holds dealerships with Telstra and Optus, could participate in two different Dealer Channels of the system at the same time. Customers registering through this Dealer Group would register with the Dealer Channel associated with the Customer's recharge voucher.

Dealer Groups receive ongoing commissions subject to commercial rights negotiated with the respective Recharge Provider and the currency of their dealership arrangement with the Dealer Channel to which their Customers are signed. In example 2, if Tandy were to lose their status as dealers in the Optus Dealer Channel, the Tandy Dealer Group would not receive any additional commission payments subsequent to the date of disassociation for Customers registered through that Dealer Channel. If Tandy participated in another Dealer Channel, Tandy would not be required to remove branding with the system and would continue to receive commissions generated through the other Dealer Channel.

When Customers are registered through the Dealer Group, the Dealer Franchiser and the Dealer Franchisee registering the Customer may receive a percentage of every recharge voucher purchased by the Customer as an ongoing commission with the Recharge Provider supplying Recharge Vouchers as appropriate. Unless commercial arrangements are made between the System Owner and the Recharge Provider, participants in the Content Application generally do not receive commissions from Customer purchases made within either the Content Application or the Fulfilment Application.

The system automatically generates settlements and settlement reports for commissions earnt by the members of the Dealer Groups within the Dealer Channel. Settlement may occur overnight, weekly or monthly subject to the terms of settlement negotiated by the Manager with the Recharge Provider on behalf of the Dealer Group. The Manager can provide support to the Dealer Group.

System Definition and Processes-The Content Application The Content Application is the business architecture of the system that allows registered Customers within the system to purchase Content to be delivered to their mobile handset using either existing or future'over the

air'or wireless technologies. Examples of Content that can be purchased are mobile handset ring tones, logos, screen savers, video, music, subscription and information services and other content.

There may be multiple Content Providers to the system. Content Providers can be authorised by the System Owner to participate in the system. Content Providers can provide access to the Manager for the Content through a Content Provider's'Content System'. This may be through a technical interface to the Manager or directly supplied by the Content Provider and managed by the system. Collectively, this arrangement forms the participants and mechanisms of the Content Application, specifically, the collection of Collection Providers, and Content Systems and interfaces.

Each Content Provider provides a number branded to the Content Provider and distinct to the Request Number for the Customer to send SMS requests to order Content. The Content Provider is responsible for their own point of sale material, branding, content and content selection menus/content item numbers. When a Customer orders Content, the Customer send an SMS request to the Content Provider's Request Number, thus ordering an item. The message format could be agreed with the Manager to ensure consistency throughout all Content Providers.

If the order is accepted, (i. e. the Customer's account status is'active'), then the ordered Content is delivered over the air to the Customer's mobile handset. This may be via SMS or another wireless delivery mechanism.

The Customer's debit authority is used to draw funds to the value of the content ordered independent of any recharge process.

System Definition and Processes-The Fulfilment Application The Fulfilment Application is the business architecture of the system that allows registered Customers within the system who have registered credit card details to purchase goods or services from Fulfilment Providers.

Fulfilment Providers sell goods or services through sales points that in addition to providing payment methods such as VISA, AMEX or Mastercard are authorised by the System Owner to offer payment using the system as a payment method. The sales point may be a website, WAPsite, IVR or infomercial, which is cobranded with the System Owner brand or other indicative indicia.

The Fulfilment Provider establishes a secure connection to the system to transmit online payment requests and to accept or decline the payment request. The Fulfilment Provider establishes a retail price and the Manager retains a commission from the Fulfilment Provider when processing the Customer payment for goods or services ordered using the system.

System Definition and Processes-System Management The system uses software and operating processes designed and developed according to industry and security best practice guidelines and compliant with relevant legislation. The system is managed by the Manager. The

Manager implements aspects of system management including system processes and support including the backend systems, databases, technical architecture, interfaces to a settlement bank, Call Centre and websites.

The following concepts are backend processes or procedures that enable the system to functionally operate.

Processing States The system handles the processing of Accounts using logical states known as Processing States. The Processing States include: PreRegistered, PreRegistered-BadDebt and PreRegistered BadBank which describe Accounts before they can be used by the customer: o'PreRegistered'means the Account has been created and the initial payment request has been made but not cleared; o'PreRegistered BadDebt'means the Account has been created and the initial payment has been declined by the Customer's bank. No further processing occurs until the Customer advises sufficient funds are available. When notified, the state is reset to PreRegistered which restarts the payment request process; o'PreRegistered BadBank'means that the Account has been created and the initial payment request has been rejected as the Customer Bank Account Details are incorrect. No further processing occurs until the Customer supplies their correct Bank Account Details. When corrected, the state is reset to Pending which restarts the payment request process; Active, Pending, Bad Debt and Bad Bank are normal processing states once customers start using the system: o'Active'means the Account has an entitlement to a Voucher which can be immediately sent to a Customer who Requests a Voucher; o Pending'means that the Account does not have an entitlement to a Voucher, the system has requested a payment on the Customer's bank to initially allocate or replace a voucher and that the system has not received notification that funds have cleared; o'Bad Debt'means that the Account does not have an entitlement to a Voucher, the system has requested a payment on the Customer's bank to initially allocate or replace a voucher which has been declined by the Customer's bank. No further processing will occur until the Customer advises sufficient funds are available. When notified, the state is reset to Pending which restarts the payment request process; o'Bad Bank'means that the Account does not have an entitlement to a Voucher, the system has requested a payment on the Customer's bank to initially allocate or replace a Voucher and has been rejected by the Customer's bank as the bank account details are not recognised. No further processing occurs until the Customer supplies correct Bank Account Details. When corrected, the state is reset to Pending which restarts the payment request process;

'Cancelled'is a state when the Account has been closed and the Customer can no longer use the system without Re-Registering.

Staff Roles The system is administered and operated by the following staff categories performing roles that provide appropriate security access and controls to perform their operational responsibilities.:- Scheme Operators (SOs) -perform all the back office registration functions for the system including: o data entry of new applications and re-registering Customers; o the completeness and accuracy of information received and entered is correct; o the scaming and filing of registration information; o the initial'Draw Down'of funds is completed correctly; o Bad Debts and Bad Bank processing of PreRegistered accounts is handled correctly and ; o that Accounts are Activated correctly.

Scheme Administrators (SAs)-have full access to all of the operational management functions of the System and perform o Customer complaint resolution; o operational fraud management of the system; o cancelling customer accounts that are not initiated by the Account Holder; o acquirer bank settlement functions including o preparing and uploading Bank Bulk Funds Movement Files; o downloading and preparing Bank Settlement Files; o Process Account Statements; o manual oversight of closing open settlement batches within 2 business day window as required.

Financial Administrator (FA) -is responsible for the financial management of the system or method including the financial management of the company with specific system responsibilities for o replenishment of PINs to the Unallocated Voucher Pool from the voucher supplier; o for internal audits of the system including manual and automatic processing; o processing dealer invoices and making settlement to Dealers; o oversight of settlement functions.

Customer Care Operator (CCOs)-performs all Call Centre functions for calls received by the system including cancelling of accounts at Account Holder request. Complaints are deferred to an Administrator. CCOs also provide information on how to register for the system including mailing or emailing application forms upon request.

Dealer Manager-overall responsibility for dealer management including o dealer appointments; o dealer training;

o dealer support; o generating and providing dealer reports; o dealer complaints resolution; and o dealer collateral.

Technical Support (TS) -overall responsibility for IT Systems, support, archiving, compliance with privacy and security policies, disaster recovery and system security.

'Operations Manager-responsible for the overall operation of the system.

Activate an Account 'Activate an Account'is an automatic process that changes the processing state of a PreRegistered Account to an Active Account. This process will occur whenever the Initial Draw Down results in the funds being cleared by the Customer's bank account. The Customer is notified the Account is Activated when the system sends the Customer a'Welcome Message'by SMS. The Account can now be used by the customer to 'Request a voucher'from the system.

Request a Voucher 'Request a voucher'refers to a process that occurs whenever a Customer sends their password via SMS to the system's SMS server which upon receipt will validate the identity of the SIM in the mobile handset sending the SMS, authenticate the identity of the SIM against the Customer registration database and verify that the password is valid.

Deliver a Tzoucller 'Deliver a voucher'refers to a process where the system has received a'Request a voucher', has verified the Customer's password, confirms that the Customer's Account is Active and then sends and validates an SMS that is delivered to the Customer's mobile handset which contains a Voucher number that the Customer can subsequently use to credit their prepaid handset credit.

BadAttnpts 'Bad Attempts'occur when either a Customer does not send a valid'Request a voucher'or an attempt is made to defraud the system.

Account is Blocked The system does not ignore'Bad Attempts'and writes attempts to a'Potential Fraud Log File'. When threshold levels are reached, the system restricts the operation of an Account by flagging the Account as Blocked. Blocking an Account will allow normal processing of States to occur, such as'Draw Downs'and clearing of payments, however when an account is Blocked, the system will not allow a Voucher to be delivered nor respond by continuing to send error messages via SMS to the requesting mobile handset.

Draw Down 'Draw Down'refers to a process where the system attempts to receive a payment from a Customer's bank account prior to the system providing either the initial Voucher (Initial Draw Down) or to purchase a replacement Voucher to replace a Voucher after a recent'Voucher Delivery'to the Customer using SMS.

Batchiizg of Customer Payaent Requests-Bulk Funds Movement File The system uses an acquirer bank and software created by the bank to upload Customer payment requests in a Bulk Funds Movement File (BFMF). The BFMF is manually created by an Administrator using the system, generally before a 5 pm settlement deadline each business day. When the BFMF option is run, the system processes all Customer payment requests to the acquiring bank in batches of nominally 100 transactions. The system creates a batch identifier that is associated with transactions within the batch to allow for cross referencing. The transactions uploaded are settled overnight by the acquirer with each of the Customer bank accounts associated with the payment request transactions.

Bank Settlement f le 'Bank Settlement File'refers to the file that is downloaded each morning using the acquirer bank's online banking facility. The Bank Settlement file shows all batches that were settled in whole or in part the previous evening. For each batch in the file the system can interpret:- . the batch identifier for that batch; A= the batch total of the customer payments requested in that batch; . B= the batch total cleared to date in that batch; C= details and value of individual rejected transactions in that batch and; . D= details and value of individual rejections of a bad debt type in that batch.

Consequently E (the value of transactions that have not cleared, not rejected or not declined for payment) can be represented in the equation E = A- (B + C + D) Process Account Statements 'Process Account Statements'refers to a clearing process which processes the content of all Bank Settlement files that have Open batches. If a batch is Open, the system knows that some Customer transaction in the batch have not been accounted for by the acquirer bank. Consequently, the batch is still open if E > 0. If all Voucher values are equal, then the value of E is a multiple of the Voucher value and the multiple represents the number of payment requests that are still to be settled by the acquirer bank.

If a batch is Closed, the system knows that every Customer transaction in the batch has been accounted for as either cleared (payment received), not cleared (a bad debt) or not processed (a bad bank) by the acquirer bank. Consequently, the batch can be closed when E = 0.

When the Process Account Statement option is run: * transactions that have been declared as Bad Debts in the Bank Settlement File will result in the state of Customer's Account being changed to either PreRegisteredBadDebt or Bad Debt; and * transactions that have been declared as Bad Bank in the Bank Settlement File will result in the state of Customer's Account being changed to either PreRegisteredBadBank or Bad Bank.

When the Process Account Statement option is run and results in the batch being Closed, transactions that have not been declared as Bad Debts or rejected as Bad Bank have been settled in full by the acquirer bank.

Every one of these transactions can automatically cause the state of the Account associated with these transactions to be set as Active and the system can move a Voucher from the Unallocated Voucher Pool to the Allocated Voucher Pool and create an entitlement to the voucher to the Account.

Manually Closed Batch 'Manually Closed Batch'refers to a manual process that is performed to Close a batch that has not been closed automatically by the system within the prescribed two business day window allowed for a Draw Down to be completed. Adjustments in respect of the unaccounted transaction (s) are followed up with the relevant customer and bank as soon as practicable. This should be an irregular event. Batch size is configurable. By limiting batch size, the system can realise a higher closure rate on Day 1 processing.

Business Day 1-Friday Assume a batch of Customer Payment Request is created on Friday afternoon. Settlement is performed over night with a 4pm cutoff (business nights only). If the Batch is closed the morning following the first settlement (Saturday), all transactions that have cleared can be processed on Saturday or within one business day.

Business Day 2-Monday Assuming the batch is not closed on Saturday. The batch can be reprocessed over night on Monday, being the next business day. If the Batch is closed the next morning (Tuesday), all transactions have cleared on Tuesday or within two business days.

Under the Service Level agreements operating with Direct Debit Authorities, it is not expected that any batches should survive as Open beyond two business days.

It is recommended that if a batch is still Open after Business Day 2 that calls are made to the acquirer bank to determine why the batch has not closed . and that by 4pm, that a'Manually Closed Batch'option is performed This means that all batches should be closed within two business days.

III Software Architecture The following description describes a preferred, but non-limiting, embodiment of the software architecture which can be used to provide the system or method. Various other types of software architecture could equally be used and should be considered to be within the scope of the present invention.

Introduction This section describes the software architecture for the Wireless Application Payment System. The system is a system to allow product purchase and/or delivery and/or confirmation using SMS or other wireless communication methods-initiated transactions.

The first application of the software is to allow delivery of a prepaid mobile handset voucher to a Customer via SMS, at the request of the Customer from an SMS message, and the Customer's account to be credited with another prepaid voucher after a successful transfer of funds from the Customer's bank account to the Scheme Manager's bank account. Other applications which can extend the system include delivery of ring tones and other products capable of being delivered to a Customer's mobile handset, and purchasing of products by registered users of the system using the funds transfer mechanisms of the system. The system does not preclude purchasing of a product via other means (such as through web-based interfaces), where the confirmation of purchase is performed using the wireless technology.

Overall Description The system contains a service that accepts SMS messages and forwards the message to the J2EE processing and settlement engine via JMS. This service also receives messages from the JMS bus and sends the message via the SMS device/gateway. The J2EE processing and settlement engine receives messages from the JMS bus and processes these messages, which are normally requests for products. The engine is implemented as a collection of EJB session and message-driven beans.

The system also contains a Java, wing-based GUI for maintaining the application reference data, Customer registrations, system participants, and financial information. Referring to figure 3 and figure 4 the following use cases represent the architecturally significant use cases in the system.

Register Customer Customer details are entered into a screen from a paper registration form.

The Customer details are checked against the current database for consistency: specifically, is this Customer already registered (duplicate mobile number), or is

someone else registered using this mobile number. Also, BSB and account number is checked against the database and a warning is flagged to the operator.

Customer Password is preferably 4-6 alphanumeric characters but is configurable to any system requirements.

If the Customer registration is successful, a NewVoucherRequest record is created to allow the initial voucher credit against the Customer's account. The Customer record is in a state of"Pre-processed"until the request is processed.

Process Account Statement File User selects the file File is opened For each record in the file: Extract the account or batch reference If it's a WAPS entry: If the amount is-ve and there is a WAPS account reference, Check for duplicates create a bad debt set Customers account to"BADDEBT" find the outstanding NewVoucherRequest record and set its status to"FAILED" If the amount is +ve and there is a batch reference Check for duplicates Find the DirectDebitBatch and set the"ActualAmount" Perfom the Settle Outstanding Accounts use case.

Settle Outstanding Accounts Find all DirectDebitBatch records which are not"CLEARED" For each batch: If the Amount and ActualAmount are different, and the sum of the bad debts for this batch is not equal to the difference, do not clear the batch

To clear the batch, execute the"Clear Funds for NewVoucherRequest"for each item in the batch for which there is no bad debt.

Clear Funds for New Voucher Request When a debit was successful, the new voucher request was successful and the Customers voucher account is credited and funds from the payment are settled.

Set status to cleared Apportion funds to participant accounts using the margins contained in the RechargePlan. Credit these amounts as new AccountLineItem records for each ParticipantAccount.

Update the Customer's account by setting a voucher credit to the account and setting the state to"ACTIVE".

Process Prepaid Voucher File * User selects File Create a voucher file record . For each record in the file, add the record to the database Process Recharge Request Main Flow System receives an SMS The sender is validated against the account database The PIN in the message is validated against the database If the account status is in credit then send an SMS using the next voucher from the pool Update the account status (set to"PENDING") & creates NewVoucherRequest transaction (used by the Create Direct Debit use case) and sends the SMS No credit : * Check the time of the last successful NewVoucherRequest. If it is within the last hour, If there have been 3 or more resends in the last hour, ignore it, otherwise: resend the PIN and remember the resend.

Otherwise, if there has been less than 3 errors in the last 24 hours, send a"No voucher credit"message Invalid Password : For the first three occurrences, send a message"Invalid password (n/3)" Alternatives 'The number of invalid password attempts or no credit attempts is configurable . The messages sent in the SMS is configurable Create Payment File * User selects participant type and participant.

If the participant type is Dealer, then the user selects a Dealer Group and the"Create Dealer Payment File"use case is executed for the whole group. Otherwise: Create a FundsTransferFile and a physical batch file with a line item that is a credit to the participant's bank account.

The amount is the sum of all uncleared line items in ParticipantAccount for that participant.

. All line items are set to"cleared" Create Dealer Payment File Create a FundsTransferFile and a physical batch file For each dealer: Add up all the Amounts for the Dealers account that have not been cleared and add the total to a line item in the file. The line item will be a credit to the dealers bank account.

All line item amounts are set to"CLEARED".

Maintain Users Users have 1 or more roles corresponding to the actors in the specification Each function is associated with one or more roles The system will validate that the user has the appropriate rights to perform each use case by checking the role (s) of the user

Create Direct Debit File Create a new direct debit file (using date for filename) For each unprocessed CustomerAccountDebit transaction: Add it to the DD file Mark it as processed (link it to the debit file db record) Supplementary Requirements The number of unsent vouchers, minus the number of outstanding requests, must appear on a main menu.

Appendix A Attached in Appendix A is a narrative of example scenarios of the present invention in actual use. These scenarios are intended to provide an understanding of the various embodiments of the present invention and are not intended to limit the invention in any way. The scenarios are illustrative examples. Reference to "TopItUp"in Appendix A should be read as a reference to the system or the method, the Manager or the System Owner as appropriate.

Thus, there has been provided in accordance with the present invention a system or method, or a computer program, which satisfies the advantages set forth above.

The invention may also be said broadly to consist in the parts, elements and features referred to or indicated in the specification of the application, individually or collectively, in any or all combinations of two or more of said parts, elements or features, and where specific integers are mentioned herein which have known equivalents in the art to which the invention relates, such known equivalents are deemed to be incorporated herein as if individually set forth.

Although the preferred embodiment has been described in detail, it should be understood that various changes, substitutions, and alterations can be made herein by one of ordinary skill in the art without departing from the spirit or scope of the present invention.

APPENDIX A Scenarios Scenarios are a method of telling a narrative which provides insight and understanding into the workings of a system or scheme.

Instore Registration Scenarios Customer Types John Evans lives at Port Kembla and travels to work at Hornsby each day by train. His wife Kristy works in the local pharmacy three days per week and walks to work They are blessed with two sons Mark aged 15 and Matt aged 10. Mark and Matt both travel to school by bus. As a typical family with both parents working, being together as much as possible, keeping in touch and personal safety issues are key values in family decisions.

John has an office job and has a company supplied handset as he is often required to be contactable out of hours. John will occasionally ring Kristy on her mobile or the home handset when travelling home from work to arrange important family matters such as'do you want me to bring anything home','what's on for dinner' or'can you pick me up'.

Kristy bought a mobile handset three years ago on a $20 a month access fee plus calls plan with Telstra. The handset has worked great but is now considered bulky by modern standards. Until recently, she used the handset to be contactable, to make emergency calls at work and for personal safety reasons walking to work.

Recently, Joanne, a friend in her Wednesday bridge club showed her how to use SMS and Kristy now regularly sends SMS to John to pick up groceries etc on his way home. Joanne has a Nokia 3310 prepaid mobile that she bought from Network Communications at Wollongong and has been encouraging Kristy to get a new prepaid handset from them since they really helped her when she was getting started.

When Matt gets home from primary school each day, Mum asks him to ring her on her mobile to let her know that he got home safely. Sometimes the school bus is not that reliable getting to school, particularly as the timetable has changed twice in the past three months. On two occasions recently, Matt has waited with other primary school kids at the bus stop for twenty minutes after the bus is due. He had been told that if ever missed the bus to go back home and ring Kristy at work.

Mark's 16"'birthday is next Thursday. Half of the kids in Mark's class already have mobiles (mostly prepaid). Mark has had a keycard for four months. His allowance is paid into his account each month by Dad using internet banking. During the winter months, Mark stays back after school for soccer training. Mark gets home twenty minutes later than Matt. Mark doesn't have to ring Kristy unless his plans change at school. He has used a friend's mobile in the past.

Matt's bus incidents have caused great concern for his parents. They decide to get a new prepaid mobile for both Kristy and Mark. Mark's handset is to be his birthday present. Kristy is going to pass on her old handset to Matt.

On Saturday, they go to the Network store Joanne recommended to Kristy. After talking to Lee, the salesperson, they choose to port Kristy's number from Telstra to her new Nokia 3310 Optus prepaid handset using a port pack. Mark gets a new Optus prepaid Nokia 3310 and faceplate. Matt gets an Optus prepaid starter kit and a new faceplate for the Nokia 5110. Lee demonstrates the handsets and explains to the Evans's the various options for topping up their handsets..

Customer InStore Registration Lee knows that Prepaid is becoming a very significant proportion of his business while at the same time postpaid connections have dropped alarmingly. He's all too aware that despite the increased prepaid handset bundles and starter kit sales since prepaid was launched some four years ago, the number of customers topping up each month at his store is dramatically less than the number of prepaid connections he has done, even allowing for customers churning or cancelling their service. Lee knows these customers of his are topping up somewhere else and this loss of revenue coupled with the reduction in contract customers is adversely affecting his business. He's convinced that TopItUp is the way to increase his income by signing up prepaid customers to the TopItUp system simply because it ensures that he receives every TopUp his customer purchases no matter where and when the customer decides to TopUp. He also is pretty happy about the fact that he doesn't have to worry about receiving anymore prepaid TopUp invoices from Optus or, in relation to these invoices, not having enough money to pay his hardware account as TopItUp administer all that. Lee also knows that eventually TopItUp can, in the future, be used by him to sell other products and services thereby providing even more income for the store and the Network vision.

He therefore pulls out a TopItUp User Guide brochure and explains the advantages of topping up their handsets using TopItup over existing methods. Lee explains further that TopItUp gives them the'Best of Both Worlds'being'Prepaid Prepaid'. TopItUp allows them the convenience of an account handset in that they can TopUp over the air whenever and wherever they want to. At the same time, TopItUp provides all of the advantages of a prepaid account including lower call costs, superior cost control and no minimum spends.

After having spent some time with the Evans's, Lee knows that the primary reason they have decided to come into the store today is for Matt's situation concerning the erratic bus service. Lee is quick to point out how TopItUp can provide even greater peace of mind and convenience than other TopUp methods through the parental control feature via SMS. At the same time he points out to Mark that should he find himself in a similar situation with little or no credits, he can top it up via the'Any Mobile'feature using a mate's handset.

Mark is impressed and thinks that when the time comes he will try it from a friend's handset just to'show off'.

John and Kristy are impressed with the benefits of the TopItUp service and are pretty much convinced that, coupled with their particular circumstances, topping up via SMS is the way to go, but want to know how to pay for the TopUps and what'prepaid prepaid'means exactly.

Lee advises that John or Kristy (or possibly both) will need to sign a Direct Debit Authority (DDA) against their nominated cheque or savings account to pay for TopUps as well as completing the Registration Form as part of the registration process. Mark of course has his own bank account and can sign both forms for himself.

Customer Tertazs and Conditions Lee takes them through the terms and conditions for using TopItUp. They understand:- that (like a contract handset) they are paying an upfront payment for the prepaid prepaid (initial) voucher (the TopUp Voucher value which is currently $30) to gain these benefits, however, the payment of this amount is a pre-purchase entitlement to something they own (being an entitlement to a TopUp Voucher for prepaid handset credits) and not a fee (unlike a contract); that by completing the Direct Debit Authority they authorise TopItUp to deduct the value of a TopUp Voucher from the nominated bank account to Register and whenever they Request a TopUp and that this authority applies if they were to order other products (such as ring tones) using TopItUp; that they agree to notify TopItUp promptly by phoning Customer Care if there are any changes to their financial institution account details; that there are sufficient funds in their account to cover the cost of the TopUp Voucher whenever they'Request a TopUp'using TopItUp and that they are aware that their bank will charge them hefty fees if they don't have sufficient available funds; that an account will require up to three business days to pass between Requesting a TopUp to allow time for their funds to clear; that the personal information (including their bank account information) they provide to TopItUp when they register is secure and will remain private being used to allow TopItUp and any of its support agencies to conduct their account. The personal information will not be. provided to or be used by any other organisation for marketing or any other purposes not specifically relating to the conduct of their account ; that if they tick the'Send Info Box', that they are giving their permission to TopItUp to send them SMSs from time to time to advise them of new services available with TopItUp; that they agree to keep their Password private. They should understand that giving someone their Password is akin to giving someone the PIN to their keycard account. that they pay for the cost of the SMS when they order a TopUp Voucher and that if they ring the Customer Care number on their mobile they will pay the standard mobile fee for a local call to an Optus 1300 number for each call;

that TopItUp, at their discretion, may elect to close the Account. that should they decide to close their Account that TopItUp will SMS a final TopUp Voucher to their handset as long as o they have a pre-paid entitlement to a TopUp Voucher and; o their account does not have any bad debt provisions associated with the final TopUp Voucher.

Completing tlle Registraion Form Mark is going to signup with TopItUp on his own behalf. Lee provides a TopItUp Registration Form and a Direct Debit Authority form for Mark to complete. Mark's mobile handset number will be his account number. The T&Cs include a requirement that Mark agrees to have more than $30 (being the current TopUp value) available in his account whenever he Requests a TopUp. Mark understands that when he does Register, TopItUp is going to deduct $30 from his bank account that night and set this amount aside as a TopUp Voucher the next time he Requests a TopUp using TopItUp. Mark knows he has sufficient funds to cover the initial $30 Draw Down. Mark also thinks of a great password to protect his account. Since Mark is managing his own account, the Account Holder Name is entered as Mark Evans and the User Name is entered as Mark Evans. He writes this on the form for registration purposes with the knowledge that once it is entered into the system, he is the only person who can access his TopItUp account. Mark also wants to get ringtones for his handset, so he ticks the'Send Info Box'that gives TopItUp permission to send information using SMSs when new services or specials are available to him.

Completing the Direct Debit Authority Mark doesn't know his Direct Debit bank details. He does have his keycard with him. Lee has a current list of bank information handset numbers that allows him to quickly rings the bank's information number associated with the Mark's keycard and hands the handset over to Mark to get the details from his bank. Lee knows that recording this information is a very important step to get right so that the TopItUp registration process is not delayed. Mark selects'Savings or Cheque'account option. Mark signs the Registration Form and the Direct Debit Authority Form thereby completing the instore registration process.

Kristy checks the credit balance on Matt's handset and finds that he has been more frugal than either Mark or herself. Matt has an available credit of $23.70. Lee explains that Kristy can manage Matt's account under her control. The Account Holder Name is entered as Kristy Evans and the User Name is entered as Matt Evans.

She registers Matt's TopItUp account using all her other details including the direct debit authority with the debit card details of her own combined credit/debit card account details. Unlike Mark, Kristy does know her bank details as she makes payments to the electricity account using bPay. She does not want Mark getting ring tones or other promotion, so the'Send Info Box'on the registration form is not ticked. She also picks a password that Matt or Mark cannot easily guess and signs the Registration Form and the Direct Debit Authority Form.

Kristy registers her own handset with the TopItUp Service. She enters her own name as the Account Holder and the User Name. She ticks the'Send Info Box'keen to know about how to get the Bridge Over Troubled Waters ringtone that rings on Joanne's handset.

TopItUp User Guide Lee also gives all three users a'TopItUp User Guide'and explains each of the basic steps.

He programs the'TOPUPS'number (0412 876877 or 0412 TOPUPS) into each of their handsets and makes sure Mark and Kristy know how to send an SMS with their Password to the'TOPUPS'number as shown in the User Guide. He also tells them if they get into trouble to ring the 1300 TopItUp Customer Care number (1300 300 482) and also enters this number into the address book of their handsets.

Wait for Welcome Message SMS Lee explains that they have to wait to get a notification by SMS from TopItUp before they can access their first TopUp Voucher. This is usually sent by TopItUp within 2 full business days. Business days do not include National Public Holidays. It is already well past the 4pm processing cutoff, which means that the Accounts may not be registered until Tuesday afternoon at the latest. If they had been in before 4pm, they would have made the daily cutoff and be registered before Monday afternoon.

The last thing Lee always does is to remind the customer that they will receive a Welcoming Message by SMS when they are registered which lets them know they can start to use TopItUp. He asks them not to send any Requests for a TopUp until they get the Welcome Message.

The Evans go home wrapped thanking Lee for all his help and knowing that they now have both control and the anywhere convenience that TopItUp provides.

John asks whether he could use his Master Card instead. Lee says'no'as the service has been built around the overwhelming majority of prepaid users who are not credit card holders, and is the only way a prepaid user can avail themselves of the service. Besides, the merchant fees at the moment are too expensive. But he reassures John that in the future this payment method would most likely be available.

So what about the'prepaid prepaid'part asks Kristy? Lee says that the TopItUp service is just like many other services people have where they pay in advance for the use of or access to that service. He puts it in terms of'rental'fees as this is what most people understand about account services. Lee cites examples such as Telstra's monthly fixed-line access fees, electricity accounts, and Kristy's current Telstra mobile account which is just like Optus'contract mobile handset users who pay in advance and use up the access fee in included calls. Lee explains that TopItUp is different and better as the prepayment is actually for calls you can use and not a rental or access fee. In fact, he says, TopItUp charges no joining, ongoing or rental/access fees whatsoever.

Lee explains further that direct debits can take upto three business days to transfer the funds from their account to TopItUp. Once the funds are cleared, a TopUp can be ordered immediately requesting it by SMS.

This starts the order process for the replacement TopUp which in turn will take upto three business days to transfer clear funds during which time another TopUp can not be ordered. John asks if they can get $50 vouchers. Lee explains the only vouchers that are issued are the $30 ones as there is no benefit to the customer to pay more if they can order when they need them.

Lee also explains the section in the User Guide that warns about having sufficient funds in the nominated bank account to cover the cost of the TopUp and points out that the banks will charge hefty funds if the account is overdrawn which will in turn delay delivery of the replacement TopUp. He puts forward the case that by prepaying now all subsequent payments can naturally be budgeted as spending with only monies you currently have available in your account.

This makes sense to Kristy and John, and, as they weren't sure how much they were going to spend on prepaid handsets today. They are happy to sign up.

Lee pulls out the Direct Debit Authority and Registration Form while asking for a copy of a driver's licence or best available ID. He photocopies the ID and commences to fill out the Registration Form first using that information to fulfil Optus'requirement for new customers connecting new or additional prepaid services.

Lee is sure to complete every field in the Registration Form accurately and legibly knowing that the process demands the same attention to detail and integrity as do postpaid connections. He doesn't want to lose any revenue possibilities due to sloppy work.

Lee explains Kristy and Mark the importance of not providing your password to any other person. Kristy chooses a 4 to 6 character password for her own account and a separate one for Matt's account. Passwords should be letters and numbers and should not be whole words, such as FIDO, which are easy to guess. They can be typed in upper or lower case. The relevant password is written onto each of the Registration Form.

Once finished with the Registration Form, Lee now turns his attention to the Direct Debit Authority. John and Kristy have a joint bank account which they decided to provide the authority against. They state it's a savings account. Lee asks them first whether they have the BSB and account number for this bank account leaving the account name details to later. He's prudent enough to ask whether they have a cheque book just in case, as it would have all the necessary details.

They indicate that they don't have a cheque book for this account and don't know such details. Lee is not phased and simply asks for their financial institution's name and branch. They indicate that they are members of the Hornsby Teachers Credit Union as John has his wages paid into this account. As this is not one of the major financial institutions such as Westpac, CBA, ANZ or NAB and is not in the Wollongong telehandset directory area, Lee quickly goes to the web to access the contact handset number for the Credit Union. He

keeps a couple of browser applications open on his desktop, one of which is the WhitePages online website www. whitepaa. es. com. au. He quickly types in the information he has into the appropriate fields and clicks 'search'. He checks with John that he has the correct institution and address and rings the number indicated.

He hears the recorded message and realises that it is Saturday and that the credit union is closed until Monday.

Lee is not phased as he has secured John and Kristy's trust and they agree to sign the paperwork now and on Monday, Lee will ring John or Kristy for the BSB and Account Number details. Before the Evan's leave, he programs the TopItUp SMS Request Number (0417 866877) into each handset and stores it on their HandsetBook directories under the name TopItUp and makes sure they now how to send an SMS with their password to order a TopUp. He also programs the TopItUp Customer Care Number into their handsets.

Lee explains to them that once he has the bank account details and a successful debit of their account has occurred a Welcome Message with their password will appear on their handsets. Then, when they're ready to TopUp, use the TopItUp number stored in their handset to send the SMS containing their Password. He points out that the User Guide details all this but nevertheless if they have any problems to contact the Customer Care number.

After registering their handsets with Optus prepaid services, the boys are sending SMSs to each other that afternoon and to their friends. On Wednesday afternoon, Mark finds out that he can't make calls as he has run out of credit. As soon as he gets home, he rings Kristy at work and explains his problem.

Problem alright.... Kristy is not impressed. It's Mark's birthday tomorrow and he's spent $30 in four days.

He needs to be taught a lesson but it is his birthday tomorrow. Kristy rings'555'to find out that she has $8 credit (after all, she did have to ring all her friends to tell them about her new mobile. ) She didn't think she'd used so much. She's afraid to check Matt's handset. She rings John at work. John is not impressed either.

John leaves for work early and gets home late. He doesn't know where to get TopUpand even if he did, he'd have to leave work 10 minutes early to get them and might miss his train. The milk bar near the railway station isn't open when he gets home. Disaster-Mark is without credit Wednesday night. He can receive calls so it's not a total disaster. Mark gets up early on his birthday to plead with his parents. They remember that Lee said you could get them just about anywhere and they remember what he said about TopItUp. Back to the store on Thursday night.

John buys Mark another birthday present being a $50 TopUp card over the counter with cash. Mark rings '555'and enters the voucher number purchased into his handset to restore his credit so that he can use his handset immediately.

Lee explains the best way to manage their handsets using TopItUp. The Evan's decide to signup.

TopItUp Dealer Forwarding Registration Forms to TopItUp Once the Evans family leaves the store, Lee faxes the completed registration and authority forms to TopItUp.

Lee then stores the completed forms in a locked cabinet until they are mailed to TopItUp.

Once a week (on Monday), Lee mails last week's originals to TopItUp as required by the TopItUp Dealership Agreement.

Dealer Perspective Lee is pleased to be able to help the Evan's and at the same time help his own store financially. By taking the extra trouble to mention TopItUp to them when they bought the handsets, they returned to his store when they needed the convenience that TopItUp provides.

Lee signed up his Network Communications dealership to become a TopItUp Dealer to stem the'leakage' from his store of Prepaid customers. Lee knows leakage is occurring because a large number of the people who buy Starter Kits and Prepaid Handsets from him predominately buy TopUp cards from other outlets for customer convenience reasons.

The Evans were in store for 35 minutes to buy the handsets and 40 minutes to register all three accounts with TopItUp. Taking this extra trouble has made the Evans family valuable prepaid customers providing ongoing revenues of 12.0% to the store. Every time they order a TopUp using TopItUp, Lee gets this commission. Lee knows that the Evans have travelled from Port Kembla and even though he has provided exceptional after sales service, it is highly unlikely that he will see them unless they have a warranty problem or need a new handset. Assuming they are average prepaid users, signing each of them up will bring $43 in ongoing revenues every year which is better than the $6 he receives he would receive without TopItUp if he never sees them again.

True, this commission is not the full margin of an instore voucher but each commission is a payment that would not have occurred if the Evan's had bought elsewhere. Now, even if the Evan's go on holidays, move interstate or go to Australia Post, a service station or newsagent that sells TopUp vouchers, there is no reason they would buy a TopUp voucher from anyone else (unless they wanted a spare voucher).

The store opened just over twelve months ago and the number of vouchers and starter kits sold each month grew for 9 months and is now starting to level off. Whilst Lee knows that his store is capturing a significant

number of sales of prepaid handsets and starter kits sold in Wollongong, he is selling approximately four times this number of TopUps month after month. This means his potential for revenue is'leaking'.

Lee had been shown figures that if he started selling TopItUp from day one registering just 25% of prepaid customers coming in store he would be able to stop the'leaking of his prepaid customer base'. Lee knows it is in the best interest of his store to aggressively push TopItUp to every prepaid customer entering his store convinced that the'Best of Both Worlds'applies not only to customers but to dealers as well.

OtAzer Dealer Opportunities Lee wonders if he can't use the store promotion code to sign up Marks'local football club after Mark makes a comment about how many of his mates at footy think TopItUp is brilliant.. A lot of the members are juniors, about half of which own prepaid mobiles. Lee thinks, I could approach the Club Committee and offer them a fund raising opportunity. For every person signing up to TopItUp, I could donate $1 of my commission on every TopUp voucher ordered through the club. Lee understands that he is giving away some commission, but he is gaining revenue from an audience that might never enter his store. Better still, some of the people signing up may be Telstra or Vodahandset users.

Mark gets the Secretary of the Club to ring Lee. Andrew had just been working out whether'its chocolates or cookies'this month as the club fundraiser. When Lee explains that Andrew only needs to have one fundraiser that is ongoing and doesn't take up any of his time, he is enthusiastic. He asks Lee to give him some brochures to present at the next Club meeting and asks'Would you be prepared to come to the following meeting? Can people go to your store to sign up?' Lee knows he can produce the payment information from the reports he gets from TopItUp to write ongoing monthly cheques to the Club as the best money raiser they've ever had.

Best of Both Worlds all right thinks Lee for churches and clubs as well..

Dealer Obligations to TopItUp Lee completed a Dealer Registration Application for a TopItUp Dealer Agreement which includes obligations on the Dealer to honestly represent TopItUp to potential prepaid customers and act with integrity in dealing with TopItUp customers and TopItUp. The Dealer Agreement is renewed annually.

The Dealer Agreement applies obligations on the Dealer to ensure that the Dealer prominently displays TopItUp's Privacy Statement and understands his role in the privacy obligations as an agent of TopItUp; that the customer's Personal Information is subject to TopItUp's Privacy Statement; that the customer understands TopItUps Terms and Conditions; that the customer has been adequately walked through the TopItUp User Guide;

that the bank account details provided by the customer are complete and accurate either by witnessing documented evidence provided by the customer or by information provided when the customer handsetd their bank's information line in store; that customer Registration and Direct Debit forms are completed accurately, signed and forwarded to TopItUp as required; that the customer's handset has been programmed with the TOPUPS number and the TopItUp 'Customer Care Number'. that the Dealer has an ABN and invoices TopItUp using this ABN for commissions paid including GST.

TopItUp Obligations to Dealer The Dealer Agreement applies obligations on TopItP to support the Dealer in the following manner:- Dealer Support for Lee is provided by TopItUp. TopItUp provides a Dealer Manager who also performs the role of TopItUp's Privacy Officer. Dealers would handset the Dealer Manager in the first instance for all support issues; . Dealer is required to display TopItUp branding for the period of the Dealer Agreement; Provide up todate collateral and point of sale material to the Dealer; As a dealer, Lee receives commission advises by email daily showing month to date commission and commissions pais in the previous 24 hour period.

Once a month, TopItUp will provide a Monthly Commissions Report to the Dealer showing all the ongoing transactions processed within that month for that Dealer; The Dealer is to invoice this amount (inclusive of GST) and fax/email this invoice to ensure prompt payment and followup with the original invoice in the mail.

Upon receipt of fax/email, TopItUp will make a monthly commission payment direct to the Dealers bank account.

TopItUp also provides useful management reports to the dealer on a month by month basis in a format that can be imported into an Excel spreadsheet and used for in store sales analysis.

Dealer End of Term The Dealer Agreement is renewed annually by TopItUp. The Dealer Agreement provides for ongoing commissions to a Dealer from the TopItUp customers signed up by the Dealer for the currency of the agreement.

There are four sets of circumstances under which the Dealer Agreement would or could be cancelled or terminated being:-

Initiated by Dealer-under these circumstances would normally cease and the customers signed up from the dealer may be reallocated. At the sole discretion of TopItUp, commissions may be continued to be paid to a bank account nominated by the departing dealer; Dealer sells dealership-under these circumstances, the new dealer would be allocated a new dealership account (consistent with Optus Dealership code) and the customers associated with the old dealership will be paid to the new dealership. This is achieved by the bank account details of the old dealership being changed to reflect the new dealership bank account details and the new dealership would receive two commission payments (one for the old account number and one for the new account number). The customer base is effectively split over both the old and the new account code. TopItUP will not allow customers to be registered to the old dealer account; Initiated by Optus or Network Communications-if the dealer is no longed authorised by Optus Communications or Network Communication to be a dealer, the TopItUp dealership will be automatically terminated; Initiated by TopItUp-if the dealership has acted inappropriately in the interests of TopItUp, the dealership will be terminated and ongoing commissions to the dealership will not be recognised.

Back Office Staff Roles TopItUp is administered and operated by the following staff categories performing roles that provide appropriate security access controls to perform their operational responsibilities :- Scheme Operators-perform all the back office registration functions for TopItUp ensuring the completeness and accuracy of information is correctly entered, that the initial'Draw Down'of funds is completed correctly, that Bad Debts and Bad Bank processing of preRegistered accounts is handled correctly and that Accounts are Activated correctly.

Scheme Administrators-have full access to all of the operational management functions of the System and perform financial and settlement administration, customer complaint resolution and fraud management of the system.

Financial Administrator-is responsible for the Financial Management of TopItUp including the financial management of the company with specific responsibilities for internal audits of the System and oversight of payment and settlement functions.

Customer Care Operator-perform all Call Centre functions for calls received by TopItUp through the 1300 Customer Care number. (1300 300 482) Dealer Manager-overall responsibility for dealer management including dealer appointments, dealer training, dealer support, complaints resolution and dealer collateral.

System Administrator-overall responsibility for IT Systems, support, disaster recovery and security.

Software Support-provided by Fieldware Pty Limited.

Staff TypeScll eme Operator On Friday morning at 9am, Ann makes her first coffee of the day. She is one of TopItUp's Scheme Operators and is responsible for the back office registration functions for TopItUp. Ann knows it is important that she ensures the completeness and accuracy of information is correctly'Registered'and that the initial'Draw Down'of funds is completed before Activating the TopItUp Account.

Stopping near the fax machine, Ann draws off the faxes received for the Evans family (amongst others). Ann logs into TopItUp's Backoffice system with access rights to create and update account registration details and to Activate Accounts. Ann creates Accounts for Mark, Matt and Kristy entering their details into the TopItUp backend system. She checks all the paper work carefully. If there any problems, such as a customer not completing all required information or signing either form, she will handset the customer directly. She double enters the Password field and the bank account fields to ensure a system accuracy check of this information.

When Ann has completed the data entry for each Account, she saves the registration details which sets the state of the Account to PreRegistered and will commence the Initial Draw Down process.

Three things will now occur. Either The applicant's Initial Draw Down fails because of a declined payment by their bank . The applicant's Initial Draw Down fails because of a incorrect BSB or account details The applicant's Initial Draw Down is settled and the Account is Activated.

SO-Follows up Initial Bad Debt Ann does the follow up of any Bad Debts associated with new users registering to TopItUp. Ann prints a PreRegistered Payment Exception Report which shows her all accounts that have failed the Initial Draw Down of funds for the reasons of Bad Debts (payment declined) or Bad Bank account details (rejected account details).

The Report is sorted in reverse date order so Ann can start at the top of the Report and find the Accounts that have failed activation most recently. Ann knows it is important to keep the customers confidence and that this hiccup, if overcome, will ensure the highest rate of ongoing customer satisfaction with minimal cost impact to the customer and TopItUp.

Ann will handset the Account Holder directly advising them of the payment decline or bad bank details. Ann informs them that their account cannot be activated until the payment can be cleared or the bank account details made accurate.

If there has been a payment decline (indicated by TopItUp declaring the state of the Account as PreRegisteredBadDebt), Ann will also inform them that their bank will charge them a dishonour fee. Ann

asks them to handset the TopItUp Customer Care number when sufficient funds haven been deposited to cover the TopUp Voucher and the dishonour fee from the account holder's bank. Summary notes are entered against the Account. No other action is taken until the Account Holder handsets back. The payment process is then repeated. If the payment is declined a second time, in most circumstances, the Account would be cancelled by an Scheme Administrator. TopItUp absorbs the merchant dishonour fee of $2.50.

SO-Follows up Initial Bad Bank If their BSB or bank details have not registered (usually notified on the first overnight settlement and indicated by TopItUp declaring the state of the Account as PreRegistered_BadBank), Ann will handset the Account Holder explaining what has happened and ask for them to fax details of their bank account details (eg a current statement) to TopItUp to allow their correct bank details to be entered. Summary notes are entered against the account. No other action is taken until the Account Holder faxes the details.

When the fax is received, Ann will file the proof of account faxed by the account holder with their registration forms and update the Account with the correct bank accoiunt details and set the state of the account to PreRegistered which will restart the Initial Draw Down..

SO-Initial Draw Down is Settled TopItUp performs automatic settlement (with provision of manual override) of settlement of Draw Downs after a maximum of two business days.

If an Account has not failed the Initial Draw Down by either of the above reason, TopItUp will automatically Activate their Account which will automatically generates a Welcome Message to the Account handset, allocate an entitlement to a TopUp Voucher (known as a PIN by transferring an unallocated PINs to the Allocated PIN Pool associated with the Account Holder's Account. As part of the end of day settlement process, a commission notification email is sent to the dealer known as a Daily Dealer Commission Notification associated with the Account notifying them the Account has been Activated and notifying them of their commission entitlement. The Notification also details the settlement transaction details including the name, account number and the commission amount and customer activity (registration activation or top up).

Staff Type-Schenae Admizistrator Joe is a Scheme Administrator for TopItUp. He has full access to all of the operational management functions of the System and performs customer complaint resolution operational fraud management of the system cancelling customer accounts associated that are not initiated by the Account Holder acquirer bank settlement functions including o preparing Bank Bulk Funds Movement files o receives Bank Settlement Files

o manual oversight of closing open settlement batches as required SA-Mor) zing Settlement Each morning, Joe accesses the TopItUp's online bank account from its acquiring bank and exports this information to a Bank Settlement File. The Bank Settlement File shows all batches that were Closed and those that remain Open from the previous evening's settlement by the acquiring bank TopItUp performs a sophisticated clearing process whenever an Scheme Administrator runs the Process Account Statement option. Batches are either Open or Closed.

When a batch is Closed, TopItUp knows that every customer transaction in the batch has been accounted for as either cleared (payment received), not cleared (a bad debt) or not processed (a bad bank) by the acquiring bank.

Settlement Batches processed by TopItUp's acquiring bank Joe then imports the Bank Settlement file into TopItUp and runs the'Process Account Statements'option. This option processes all reports and updates the Account as a result of the Settlement process.

SA-Afternoon Preparation TopItUp's acquiring bank has a 5pm close off. Joe runs the Prepare Bulk Funds Movement File option which prepares a file to be uploaded to the acquirer bank. This option will include all Draw Downs that have been generated since the option was last run. The file breaks the Draw Downs into settlement batches of 100 (configurable) entries per batch.

Joe uses application software provided by the acquirer bank to upload the Bulk Funds Movement File.

Staff Type-Finaizcial Adiiiiiiistrator Morgan is the Financial Administrator for TopItUp. He is responsible for the Financial Management of.

TopItUp including the financial management of the company with specific responsibilities for internal audits of TopItUp and oversight of payment and settlement functions. He is also responsible for authorising and purchase order approval for TopItUp to order additional PINs to replenish the Unallocated Pool with replacement TopUp vouchers from the voucher supplier when the Unallocated Pool quantities fall below the just in time re-order point.

Staff Type-Custonter Care Craig is a Customer Care Agent and works in TopItUp's call centre. Craig is trained in handling most customer scenarios and will only pass a call onto an Scheme Administrator in the event of a Customer Compliant.

Craig knows the importance of identifying the Account Holder or the Account User as appropriate.

Craig normally accesses and Account by the Account Number being the mobile handset number associated with the Account. Craig can access also an Account Holders details by a surname search against the Registration Database and further qualification of the Account Holder.

Whenever Craig takes a call from a customer, he is aware of TopItUp's obligation for confidentiality of the Account Holder's private information.

Craig will type a record of the conversation which is attached to the Account and is known as a'File Note'.

File Notes are date and time stamped and identify the Customer Care Agent and record an outcome for the interaction with the caller.

Back Office Scenarios Applicant Fails Registration Mark is not having much luck. On the following Monday, Mark's name appears as declined on the PreRegistered Payment Exception Report as a declined payment. Ann rings him and requests that he checks why his payment is declined. Ann asks him to ring back on the TopItUp Customer Care 1300 Number when he has deposited sufficient funds to clear the bank decline fee and the amount of the TopUp Voucher. Ann gives him a call log number to quote that is generated from her system and types in details of their conversation.

Mark is embarrassed and thanks Ann for letting him know. He has not decided whether to tell his mum or forget about TopItUp. Mark eventually tells Kristy.

If Ann hadn't been able to contact him, she would have sent an SMS to Mark asking him to call Customer Care and quote the call log number. TopItUp has already changed the processing state of Mark's account from'PreRegistered'to'PreRegistered BadDebt'. Changing the processing state to PreRegisteredBadDebt means that whenever an Scheme Adminstrator (such as Joe) or an Scheme Operator (such as Ann) runs the PreRegistered Payment Exception Report, Mark's name will appear. At some point in time, Joe would assess this account is not likely ever to be registered and Cancel the account by changing the state of the account to 'Cancelled'. Ann (being an Scheme Operator) does not have access to perform this function.

Applicant is Activated On the Tuesday morning, Kristy and Matt's accounts are Activated. This means that $60 was drawn down from Kristy's bank account on Friday night has cleared and that A'TopUp Voucher entitlement has been automatically allocated to both accounts.

Customer gets a Welcoming Message to TopItUp When TopItUp Activates Kristy and Matt's accounts, TopItUp sends a Welcoming Message to both handsets stating"Welcome to TopItUp. You can now Request a TopUp. Thank you for using TopItUp" Dealer Commission Advise The commission advise for Kristy and Matt's initial TopUp is automatically processed at the end of day settlement run on Tuesday and a settlement advise is generated and emailed to Lee showing details of the commission and the activities that generated the income.

Lee rings Kristy after seeing that Kritsy and Matt have been Activated on his report. He asks if she has any questions. Kristy thanks Lee and says she will recommend TopItUp to her friends.

Need Sufficient Funds to Re Register When Kristy gets her SMS notifying her that her account has been activated, she remembers about Mark's decline. She was going to let Mark stew until he could fix his bank account balance. She rings John and they agree to cover Mark's funds and John deposits the required funds into Mark's bank account using internet banking.

When Matt gets his Welcome SMS, he rings'555'to check his account balance to see if he needs to use TopItUp. He then remembers that he can't use the service as he doesn't know the Password. He thinks 'maybe I can get mum to tell me'.

Kristy then rings Matt to see if he received a Welcome SMS as well. Matt asks for the Password but Kristy tells him to wait at least 6 months until he proves that he can be trusted. Matt straight away blames Mark for creating problems himself without understanding that if Kristy gives him the Password, he has open slather on Kristy's bank account.

John rings Mark to tell him that he deposited the required funds into his account to try to reactivate his account with TopItUp. Mark thinks this is brilliant news, he has almost run out of credit. John also tells Mark that once he is registered, that he cannot request a TopUp Voucher until Mark has deposited sufficient funds to cover the bank fee and the TopUp Voucher into his bank account. This is not good news for Mark.

Mark Calls Customer Care When Mark gets home from school, he rings the TopItUp Customer Care number using the home handset.

Craig is a Customer Care Agent and works in TopItUp's call centre. Craig is trained in handling most customer scenarios and will only pass a call onto an Scheme Administrator in the event of a Customer Compliant.

Craig takes Mark's call asking for Marks handset number. Craig accesses Mark's account. Craig then asks for his name, current address and date of birth. Craig verifies that Mark is the Account Holder. Craig also sees from the file note that Mark's account is'PreRegistered BadDebt'.

Craig asks how he can help. Mark says that he has put money into his bank account as requested and can you try to activate my account please? Craig explains that this is the second attempt at registration and that since it is Wednesday, expect a Welcome SMS on Friday saying that the account has been activated. Mark agrees and Craig enters a File Note and changes the state of the account from PreRegistered BadDebt to PreRegistered.

Craig asks if there is anything else he can do to help. Mark says no and rings off.

Mark's Account is Ready for Second Registration Attempt When Joe runs the Create Bulk Funds Movement File option at 4: 30 pm that day, Mark's second attempt at registering with TopItUp is included in one of the settlement batches uploaded to the acquirer bank. On Friday morning, the batch that contains Mark's settlement is Closed, TopItUp determines that Mark's funds have cleared and Mark's Account is Activated by TopItUp. Like Kristy and Matt one week before, Mark now receives an SMS welcoming him to TopItUp and his entitlement to a PIN is made.

Otller Registration Problems-Account Number is Not Accurate In this scenario, the Customer's handset number (their account number) is not registered accurately. This could be caused by the number not being recorded accurately on the registration form or incorrectly entered into the Schemes database when registering. The chance of the second reason is minimised as the SO is required to re-enter the account number to verify the entry.

In either case, the fact that the account number is not recorded correctly is a problem as the Customer will not receive a'Welcome Message'to the scheme as the SMS will be sent to another prepaid mobile number.

The following scenarios may occur:- If the incorrect mobile number is not registered on the carrier's network, the System will know something has gone wrong and the System will generate an exception report to be investigated by an SO. A letter may need to be sent to the Account Holder requesting the Account Holder to ring an SO direct and not Customer Care.

If the number is registered on the carrier's network, the Welcoming Message will be sent to another mobile handset. This certainly presents a problem. TopItUp believes the account is registered and the Account User is still awaiting their Welcome Message. This registration will remain in an error state until the customer eventually rings Customer Care who do not have a record of the account number being quoted by the customer. Customer Care will need to locate the account using search features and referring the matter to an SA.

Otlaer Registration Problenzs-Account Nunber is Reissued by Carrier In this scenario, the Customer's handset number (their account number) has been reissued by the carrier after the number has been cancelled and quarantined by the carrier. This presents a problem if the previous user was also registered with the Scheme as an account associated with that number exists in the System.

When the SO attempts to register the new account, the SO will be aware the old account exists and will alloacate a two digit suffix (starting with'00') to the old account number. This action will identify the old account as superceded yet still tied to the old account number and then allow the new account to be established.

TopUp Scenarios Kristy Requests a TopUp for Her Account Later that month, Kristy decides to Request a TopUp. She goes to the SMS messaging area on her handset and writes an SMS containing her Password only. She finds the number for TopItUp that Lee saved on her handset and sends the SMS. She remembers that Lee had asked her to delete the sent SMS fronz her handset for security reasons and does so.

The TopItUp system receives her request and processes the request within a minute of the SMS being received. Processing the request will select the oldest PIN activation date from the $30 Optus TopUp Pool and sends that PIN as the TopUp Voucher using an SMS to Kristy's mobile handset. If the Reward System is running, Kristy would also get an acknowledgement of the Reward Points due.

Kristy gets her TopUp Voucher fro » i TopItUp Kristy remembers that Lee had told her that the TopUp process in most instances is pretty much immediate.

He pointed out to her in the User Guide that if there were problems with the SMS network, such as network congestion or coverage for her handset, delivery will be delayed. If she hasn't received the TopUp Voucher within the hour, she should send another SMS to re-request the voucher.

Kristy receives an SMS with her TopUp Voucher within two minutes. When she reads the SMS, the message is"Your TopUp Voucher is 1234567890. You have 25 TopUp Points. Thank you for using TopItUp". She reads the SMS and writes down the TopUp Voucher number. She rings'555'and enters her TopUp Voucher as if she had purchased it from a store.

TopItUp starts a Draw Down on ICristys'Bank TopItUp will then start the Draw Down process on Kristy's bank account for a replacement voucher.

TopItUp automatically changes Kristy's account state from Active to Pending. Overnight, TopItUp requests the Draw Down from Kristy's bank. At the completion of At the same time that TopItUp will automatically

change the state of Kristy's account from Active to Pending, meaning that TopItUp has started a Draw Down process of additional funds from Kristy's bank account.

Clearing is performed by exception. Unless the account is declared a Bad Debt after two business days, it is assumed the payment has been cleared which will change the state of the account to Active and a PIN is transferred from the unallocated PIN pool to the $30 Optus allocated PIN pool. This completes the Draw Down.

ICristy ICnows Not to Sezd Multiple Requests The User Guide also points out to Kristy that if she was to resend the Request a TopUp within 24 hours of her first request, TopItUp will send back the same PIN that was sent on the first request plus a message saying this is the second notification.

This allows the user to get the TopUp Voucher again if they didn't receive it, were too impatient or lost the number before entering it into the handset.

A third request will likewise resend the TopUp Voucher. The SMS to the customer indicating this is the third and final transmission of the same PIN.

TopItUp will not send any further SMSs and will effectively ignore any further SMS received from the account until the funds have been drawn down and a new TopUp Voucher is available to be requested. If the customer handsets Customer Care, the system will provide sufficient information to allow the Customer Care Operator to explain the state of their account.

User Problems-Bad Attempts 'Bad Attempts'are attempts to Request a TopUp that cannot be processed by TopItUp for whatever reason.

They can occur by accident or could be the result of a fraud attempt.

In the following scenarios that generate Bad Attempts, TopItUp always writes the full contents of any SMS received that generates a'Bad Attempt'to the'Potential Fraud Log File'in the event that fraud is being attempted on the system.

In some of the scenarios listed, the account will be flagged as'Blocked'which means that TopItUp will not issue TopUp Vouchers to a Request a TopUp from the account, nor will TopItUp send other SMSs to the account. Blocking an account does not stop TopItUp's automatic processing of account states. performed by TopItUp in Accounts can only be'Unblocked'by an Scheme Adminstrator.

Matt attempts to guess the Password Matt attempts to Request a TopUp guessing the Password that Kristy created for his handset. He types in their dog's name as the password and sends the SMS to TopItUp using his handset.

When TopItUp receives the SMS, the system verifies Matt's account is is registered with TopItUp but the Password sent does not match the entry in the TopItUp database. TopItUp sends an SMS to Matt's handset which informs the user"Bad attempt, your Password is not correct. If you get it wrong again, call 1300 TOPUPS". The state of the account is'Active'.

Matt panics. He calls 1300 TOPUPS on his mobile. He speaks to George from the TopItUp Customer Care Centre. George asks how he can help. Matt says that he has forgotten his Password, can you help. George asks for the Caller's name. Matt gives his name. Other questions would normally follow but George notices that Matt is the Account User and not the Account Holder. George informs Matt that the Account Holder (without identifying the Account Holders name) must contact TopItUp in person. A record of conversation is made.

Matt is not one to give up easy, maybe the Password is Kristy's favourite colour. He's not sure what to do. If he gives up and Kristy performs the next TopUp Voucher on Matt's behalf and gets the Password correct, the Bad Attempt logic is broken and the account will operate as normal.

Matt decides to risk it two days later. Even though two days has passed, TopItUp remembers his first bad attempt. He enters the Password as'blue'and sends his second SMS attempt to crack the Kristy's Password to TopItUp. When TopItUp cannot validate the password on the second attempt, TopItUp assumes fraud and flags this account as'Blocked'.

Two Bad Attempts are allowed before the account is automatically Blocked. One SMS is sent in response to tlze first Bad Attempt. This must be dealt with by an Scherne Adminstrator.

The Result is Matt's Account is Blocked When an account is Blocked, no further TopUp Vouchers or SMSs will be sent to the account handset and all SMSs received are written to the'Potential Fraud Log File' Matt does not tell Kristy he has attempted to crack her Password. A Customer Care Operator accepting a call from an Account Holder with a blocked account will forward the call to an Scheme Administrator who determines whether a fraudulent attempt has been made to access PINs.

Kristy makes two attempts to request a TopUp Voucher without receiving any replies from TopItUp.

Eventually Kristy calls Customer Care to report the problem. Kristy is passed through to Joe who determines that Kristy is the Account Holder by asking her personal details and verbally verifying her Password. Joe

informs her that there have been three recent attempts to request with bad passwords followed by two attempts with correct passwords giving her the date and times. Kristy verifies the two most recent attempts were hers. She is horrified when Joe tells her that a caller identifying themself as Matt had handsetd to ask for the Password.

Joe is satisfied that while a fraudulent activity has occurred, that it will remain in the family and that the account can be Acivated which he does. He records the converstion against the account. Kristy can now request a TopUp Voucher.

Unregistered user attempts to use TopItUp Greg (Mark's friend) tells his father about TopItUp. Greg hasn't been to a Network Store. His dad had just bought him a Optus Prepaid Starter Kit from the Post Office. Greg has seen Mark request a TopUp Voucher.

He puts his PrePaid Sim into his father's handset and sends an SMS to TopItUp's SMS number using Mark's Password. He knows Mark's Password, after all Mark had been told not to give out his Password, but, after all, Greg is his best mate.

When TopItUp gets his SMS, TopItUp does not have an account for the Greg's mobile number and sends back an SMS to Greg's handset informing him"You must Register your handset to use TopItUp at your nearest Network Store or ring 1300 TOPUPS". TopItUp records his handset number in case he decides to send additional requests before Registering with TopItUp. If any subsequent SMSs are sent by Greg, TopItUp will write these attempts to the'Potential Fraud Log File'to be investigated by an Account Administrator for potential fraud. No further SMSs are sent by TopItUp.

Greg goes to a Network Store and signs up to TopItUp. When his account is Registered on TopItUp's Customer Base, any logic that TopItUp used in dealing with Unregistered Attempts made previously by Greg is broken and Greg's account is conducted normally.

One Bad Attempt is allowed by a user attempting to use an Unregistered Handset. One SMS is sent as a response to the first Bad Attempt. Subsequent SMS received from the same handset are automatically logged to the'Potential Fraud Log File'. TopItUp will also create an entry for the mobile used to initiate the SMS in the'unregistered handset database'maintained by TopItUp and will maintain logic regarding additional'Bad Attempts'from this handset.

Any Mobile Scenarios 'Any Mobile'is an advance feature that allows a TopItUp user to use any other mobile to send an SMS to TopItUp to request a TopUp in the event that the user's handset does not have sufficient credit to send an SMS. TopItUp requires that any mobile that sends a Request a TopUp to TopItUp is to have the handset setting for'Caller ID'to be switched ON. This applies to Any Mobile scenarios as well.

ICristy sends a Top Up Voucher to Matt using'Any Mobile' There are two ways Kristy can use TopItUp to provide a TopUp Voucher to Matt.

The first method requires Matt to give Kristy his handset. Normally, Kristy would TopUp Matt's handset for him by simply grabbing his handset and sending a TopUp request using the password she created for Mark, sending the SMS and deleting the sent SMS from Matt's handset.

However, Matt has gone to camp and Kristy cannot access his handset. Matt is still trying to work out how he can get the password to his TopItUp account. He rings Kristy asking Kristy to provide the password so that he can TopUp his handset himself. Kristy remembers that the TopItUp User Guide explains how she can send a TopUp Voucher using the'Any Mobile'feature of TopItUp to Matt without having access to his handset.

The User Guide says"Type in the Password, then a space and then the TopItUp Account Number eg'PASS 0412123456'". Kristy writes an SMS on her handset. She types in Matt's password followed by a space followed by Matt's mobile handset number. She sends the SMS. The User Guide informs Kristy that she has a maximum of two tries to use'Any Mobile', so she is careful to make sure the Password and Matt's Mobile Number are correct and are separated by a space.

When TopItUp receives her request, it reads the password supplied and verifies the password against the 10 digit handset number following the space. Any ada'itional spaces entered in the handset nunaber are ignored. They match, so TopItUp sends an SMS to Matt's handset with the TopUp Voucher as if the request were sent from Matt's handset. Matt reads the SMS and enters the TopUp Voucher number after calling'555'.

Meanwhile, TopItUp places Matt's account as pending and starts the Draw Down on the bank account details provided by Kristy (as the account holder) when she registered Matt's handset.

Mark runs out of Credit and uses'Any Mobile' Mark has gone out on Friday night and is using his handset to contact friends deciding where to go. He dials Jenny, he hears a prerecorded message telling him to TopUp before making this call. He tries to send an SMS and finds the same problem. He remembers that he can he can still use TopItUp if he can get a friend to allow him to use their handset to send an SMS. Greg has his dad's mobile which uses a Telstra postpaid account.

Mark uses Greg's mobile to send an SMS to TopItUp. Mark punches in his Password followed by a space followed by his handset number. He sends the SMS. However, his Password is not correct.

Bad Attempts Using'Any Mobile' For security reasons, when TopItUp checks the password against the account number provided in the SMS (sent as Mark's handset number), TopItUp sends an SMS to Mark's handset informing him"This is your first attempt using'Any Mobile'and the password entered is incorrect". TopItUp also writes an entry into Mark is excited when his mobile gets the SMS from TopItUp. He reads the SMS and is dismayed that the Password he entered is wrong.

Mark forms another SMS on Greg's handset and tries again. This time when TopItUp receives the second request it knows this is the second attempt using'Any Mobile'from the same handset. Mark gets the Password right but gets his own handset number wrong by missing one of the digits. When TopItUp received the SMS it can't find a match for the account number to verify the password. TopItUp registers this is the second bad attempt from the same'Any Mobile'handset. Only two attempts are allowed using the'Any Mobile'feature from the same handset. TopItUp will not respond by sending an SMS on the second attempt or subsequent attempts from the same handset and writes the details of all attempts from the same handset using the'Any Mobile'feature to a logfile that is reviewed by Joe or another Scheme Administrator as a potential fraud attempt or a denial of service attack.

Had Mark not entered his handset number correctly on the first attempt, TopItUp would have sent the notification SMS to Greg's handset as the Account Number could not be verified. The SMS sent would inform him"This is your first attempt using'Any Mobile'and the Handset Number entered is incorrect." Mark is out of luck again unless he uses another friends handset or a TopUp voucher from a store.

Two Bad Attempts are allowed by a user attempting to use'Any Mobile'using the same mobile handset.

One SMS is sent as a response to the first Bad Attempt. Subsequent SMS received from the same handset are automatically logged to the'potential fraud log file'. TopItUp will also create an entry for the mobile used to initiate the SMS in the'unrgeistered handset database'maintained by TopItUp and will maintain logic regarding additional'bad attempts'from this handset. Since the bad attempts do not originate from the account holders handset, it is not appropriate to Block the account.

Account Holder wants to Close Account Closing an account by a customer request involves the Account Holder calling a Customer Care Officer who has the authority to close the Account requiring the Account Holder to supply the Password to verify the action. Once the Account is Cancelled any additional SMSs sent to TopItUp for this account are logged in the 'Potential Fraud Log File'and no other action is taken by TIU. TIU retains all transactions and file notes associated with Cancelled Accounts for database integrity reasons but only an SA and an FA can view the Personal Information.

If a CCO receives a call from someone claiming to be the Account Holder of a Cancelled Account, the CCO can only verify that the Account Holders name, the Account Number and the fact that the Account was closed on a specific date. Only an SA or an FA can reactivate a Cancelled Account.

The following scenarios apply to an Account Holder closing an Account.

ActiveAccountis Cas2celled-Send TopUp bySMS Matt keeps bugging Kristy for her Password. Kristy thinks enough is enough and decides to close Matt's account. She rings George at Customer Care. After George has identified Kristy as the Account Holder to Matt's Account, Kristy asks George to close the account. Had Matt handsetd and tried to close the account, George would have identified Matt as the Account User and told Matt tlaat oaly the Account Holder can close the account.

As a CCO, George through five steps to close the account.

* STEP 1-He asks Kristy for her Password and enters it into the'Confirm Password Entry'box on his screen. The Conf rm Password Entsy box must be completed successfully for a CCO to either chage tlae Password on an Account or to Cancel an Account.

STEP 2-George asks Kristy if she doesn't mind telling him why she is cancelling the account.

George has a number of codes that summarise why an Account may be closed which are Code Reason for closing account 1. Customer doesn't need the service anymore 2. Customer handset has been stolen 3. Customer dissatisfied with service-delivery of TopUps 4. Customer dissatisfied with service-bad encounter with dealer 5. Customer dissatisfied with service-bad encounter customer service 6. Customer dissatisfied with service-problem with bank 7. Customer-other eg privacy, security concerns 8. TIU SA-Customer has attempted to defraud system 9. TIU SA-Customer has incurred too many bad debts 10. TIU SA-Customer is PreRegistered_BadDebt for too long 11. TIU SA-Customer is PreRegisteredBadBank for too long 12. TIU SA-Customer's account considered dormant 13. TIU SA-Other When Kristy explains, George sees this as a customer who has security concerns and enters a Code 7 with the file note. George only gets to see Reasons I to 6 on his entry screen as they all relate to customer initiated reasons for closing the account An Scheme Administrator would use Codes 8 tol2 only to Cancel an Account.

STEP 3-George checks the State of the Account to determine the Account Holders entitlement to a TopUp Voucher. George can only issue a TopUp Voucher immediately if the State of the Account is Active. The State is Active, so George knows Kristy is entitled to a TopUp Voucher and informs

Kristy of her entitlement and that TopItUp will SMS the TopUp Voucher to Matt's mobile. Kristy agrees, so George Cancels the Account using the'Cancel with SMS Option'which changes the State of the Account to Cancelled, SMSs the TopUp Voucher to the Account's Mobile with the message"You have requested your account be closed. Your final $30 TopUp Voucher is 1234567890. Thank you for using TopItUp. You can rejoin"and removes Kristy's entitlement of the TopUp Voucher from the allocated $30 pool.

STEP 4-George tells Kristy the TopUp Voucher is on its way and that should she desire to reactivate the Account, please handset Customer Care. Thank you for using TopItUp.

STEP 5-Kristy receives her TopUp Voucher entitlement by SMS. Any additional SMSs sent to TopItUp are logged in the'Potential Fraud Log File'and no other action is taken by TIU.

Active Account is Cancelled-Send TopUp by Mail Had the State of Kristy's Account been Active but she could not or did not want to receive her TopUp Voucher by SMS, George would sent it by Mail. Steps 1 and Step 2 are repeated as above.

STEP 3 (CCO)-Kristy may have told George that Matt's had been lost/stolen or that she just doesn't want the TopUp Voucher sent to the Account's Mobile. In these circumstances, George would have have checked Kristy's address details and then used the'Cancel with Letter'option which changes the State of the Account to Cancelled, prints a personalised letter to Kristy as the Account Holder informing her'You have requested to have her account closed. Yoztr final $30 TopUp Voucher is 1234567890. Thank you for using TopItUp and you can rejoin at afzy tirne by calling Customer Care on 1300 TOPUPS"and removes Kristy's entitlement of the TopUp Voucher from the allocated $30 pool.

STEP 4-George tells Kristy the TopUp Voucher is being mailed and that should she desire to reactivate the Account, please handset Customer Care. Thank you for using TopItUp.

'STEP 5-George then mails the letter with the TopUp Voucher number to Kristy's address.

Pending or PreRegistered Account is Cancelled Had the State of Kristy's Account been Pending or PreRegistered when she handsetd George, George would have repeated Steps 1 and Step 2 as if the account was Active.

STEP 3 (CCO) -George would have explained to Kristy that TopItUp was clearing funds with her account. As a result he can start the process of closing her Account which will not allow further

TopUp Vouchers to be requested or delivered. When the funds are cleared, TIU will mail your TopUp Voucher to you. Kristy agrees.

In these circumstances, George would have checked Kristy's address details, Updates the File Note and used the'Cancel with Letter Option'. This time the letter does not print and cannot therefore be mailed. When the State is Pending, this action flags the Account as'Blocked'which allows TIU to complete the Draw Down and at the same time disable the Account from sending TopUp Vouchers or replying to SMSs sent by the customer.

STEP 4. George tells Kristy that should she desire to reactivate the Account, please handset Customer Care. Thank you for using TopItUp.

TIU has not Cancelled the Account. Blocking the Account means that whenever an SA runs a Blocked Accounts Report, Kristy's account will show.

As an extension of STEP 3 performed by an Scheme Adminstrator to complete the process with two possible outcomes depending on whether the funds clear:- STEP 3 (Funds Clear) -If the funds clear, the State is automatically changed to Active. The Account is still flagged as'Blocked'. The next time an SA runs'Blocked Account Report', they will notice that Kristy had attempted to close her Account and that the funds have cleared. The SA can now Cancel her Account. The SA opens the Account and selects the'Cancel with Letter Option'. This action prints a personalised letter to Kristy as the Account Holder informing her that she has requested to have her account closed. Your final $30 TopUp Voucher is 1234567890. Thank you for using TopItUp and you can rejoin at any time by calling Customer Care on 1300 TOPUPS"and removes Kristy's entitlement of the TopUp Voucher from the allocated $30 pool.

'STEP 3 (Bad Debt or Bad Bank) -If the funds do not clear, TIU will automatically change the State of the Account to Bad Debt or Bad Bank as appropriate. The Account is still flagged as'Blocked'.

The next time an SA runs'Blocked Account Report', they will notice that Kristy had attempted to close her Account and the funds have not cleared. The SA can now Cancel her Account without providing her a TopUp Voucher as she does not have an entitlement because of the Bad Debt or Bad Bank details. The SA opens the Account and selects the'Cancel with Letter Option'. This action prints a personalised letter to Kristy as the Account Holder informing her'that she has requested to have her account closed and that her account is in Bad Debt. Consequently, you are not entitled to a TopUp Youcher. You can ring TopItUp's Financial Departznent on XXXXBEX to discuss'and Cancels the Account.

STEP 5-George then mails the letter without the TopUp Voucher number to Kristy's address.

Bad Debtor PreRegistered BadDebt Account is Cancelled Had the State of Kristy's Account been a Bad Debt or PreRegistered_BadDebt when she handsetd George, George would have repeated Steps 1 and Step 2 as if the account was Active.

STEP 3 (CCO) -George would have explained to Kristy that her Account does not have an entitlement to a TopUp Voucher as the funds did not clear on the last attempt to draw funds. George says he can close the Account. Kristy agrees. George updates the File Note and uses the'Cancel as Bad Debt'option. No letter or SMS is printed and TIU Cancels the Account.

Had Kristy complained, George would still take this action and give Kristy the contact handset number for the Financial Administrator to call to discuss.

STEP 4. George thanks Kristy you for using TopItUp. He does not invite her to rejoin.

. STEP 5. No action as the account is cancelled and no entitlement exists.

Bad Bank or PreRegistered BadBank Account is Cancelled Had the State of Kristy's Account been a Bad Bank or PreRegistered BadBank when she handsetd George, George would have repeated Steps 1 and Step 2 as if the account was Active.

STEP 3 (CCO) -George would have explained to Kristy that her Account does not have an entitlement to a TopUp Voucher as the funds did not clear on the last attempt as the Bank Account details were not correct. George says he can close the Account. Kristy agrees. George updates the File Note and uses the'Cancel as Bad Bank'option. No letter or SMS is printed and TIU Cancels the Account.

Had Kristy complained, George would still take this action and give Kristy the contact handset number for the Financial Administrator to call to discuss.

STEP 4. George thanks Kristy you for using TopItUp. He does not invite her to rejoin.

. STEP 5. No action as the account is cancelled and no entitlement exists.

Other Scenarios Greg's Mobile is Stolen Greg's mobile (his Dad's actually) is stolen with Greg's Prepaid SIM in the handset at the time. When an SMS is sent using this SIM, TopItUp ascertains Greg's account number from the SIM. Greg handsets

Customer Care using his home handset and speaks to Craig. Craig establishes that Greg is the Account Holder and Greg reports the handset as stolen.

Craig asks Greg for his other contact handset number and verifies the Personal Information on TopItUps database on Greg is accurate.

Craig flags Greg's account as'Blocked'and records a file note on his account. Blocking an account does not interfere with the processing state of an account. Whatever the processing state was associated with the account prior to the Greg's call is also recorded in the file note. This information is used in any subsequent actions by TopItUp staff to allow consistency to be maintained with the account.

Greg's account is currently Active which means prior to Greg's call, TopItUp would have issed a TopUp Voucher had it been requested. If Greg had received a TopUp Voucher within the past 24 hours, TopItUp would have made a Draw Down on his bank account and TopItUp's logic would continue unaffected updating the processing state of his account regardless of whether the account is flagged Blocked or Unblocked including the rules associated with bad debt processing etc.

Craig explains to Greg that even if someone knows his Password and uses the solen handset in an attempt to request a TopUp Account, that since the handset has been reported stolen, TopItUp will log the SMS request to be investigated for fraud. When an Scheme Administrator reviews the'potential fraud log files', a decision is made according to TopItUp's current security policy whether to inform the Police. The potential fraud log files contain all details of SMS's sent to TopItUp that are written to the potential fraud log file.

Craig explains that if the handset is found or returned intact, Greg should handset Customer Care and the state of his account will be'Unblocked'allowing him to use his account normally again.

Until Greg either gets a new SIM or the handset (with SIM) is returned, Greg cannot use his account.

The state of Greg's account was Active when the SIM was reported stolen so Greg is entitled to a TopUp Voucher. Unless the State of Greg's account is'Bad Debt'or'PreRegistered Pending', Greg would eventually be entitled to a TopUp Voucher. Craig asks Greg if he is going to get another Starter Kit and if so, does he want the new SIM to be re-registered with TopItUp in place of the stolen SIM. Greg says'Yes'and Craig asks Greg to purchase a new Starter Kit from his nearest Network Store and tell the Dealer he is re- registering his account. Craig records Greg's decision on the file note to his account.

Had Greg decided not to register a new SIM, he is entitled to a TopUp Voucher. Had this been the case, Craig would have printed a TopUp voucher and mailed the voucher to Greg's account address (after verifying the address). The voucher is mailed to protect the accountholders right to the TopUp Voucher in the event that this was an attempt by another person to defraud the system. Accompanying the TopUp Voucher

would be a thankyou letter from TopItUp. The Account State would be manually changed by Craig to Cancelled.

Greg Re-Registers his Stolen Account The state of Greg account remains Blocked until he gets a new Starter Kit (and possibly a new or secondhand handset to replace his Father's stolen handset). He goes to the Dapto Network Communication Store and tells Jock that he wants to buy a Starter Kit and use it to Re-Register a his account. Jock gets Greg to complete a Registration Form and Direct Debit Authority. When completing the Registration Form, Jock gets him to tick the'Are you Re-Registering an Existing Account'box and Jock asks him to complete the space titled 'Old Handset Number'with the number of his stolen mobile. Jock explains his new account should be registered overnight.

Jock faxes Greg's Registration Form to TopItUp. When Ann goes through the Registration forms the following morning, she notices that Greg's Application is for a Re-Registration. She creates the new account which sets the state of the new account to Pre-Registered. Ann opens up the'Account Cancellation'screen and picks the'Cancel an account and transfer Entitlement to a New Account'option. Ann is prompted to enter the account number of the account to be cancelled and enters Greg's old handset number. She notes that the state of this account is'Active'which means that Greg has an entitlement to a TopUp Voucher.

Ann is prompted to enter the account number of the Pre-Registered Account which she does. TopItUp then asks her to confirm the cancellation of the old account and to change the entitlement. Ann presses the OK button.

The system changes the state of the old account to Cancelled, creates a link to the new account, changes the state of the new account to Active and sends an SMS to Greg's new account welcoming him to TopItUp.

Greg could Request a TopUp immediately and TopItUp would send the TopUp Voucher to his new account.

Had the state of Greg's old account been pending when the handset was stolen, it would be unlikely that the state was still pending one day after he had been ins tore for a new Starter Kit, but if had been the case, TopItUp would transfer the state as Pending and not sent the Welcoming SMS until the Draw Down of funds had been cleared. Had the DrawDown resulted in a Bad Debt, the state of the new account would be a Bad Debt.

Greg initially signed up with Network Wollongong. Each TopUp Voucher ordered on his old account resulted in a commission to this store. When Greg re-registered, he did this through Network Dapto. Dapto will not get the commission for the entitlement transferred to the new account, but every TopUp Voucher that is successfully Drawn Down will result in a commission to Jock at Dapto.

James does not live near a Network Store Greg writes to his brother James at Tennant Creek telling him about TopItUp. Greg knows that James uses Optus Prepaid but has trouble getting TopUp vouchers.

James handsets Greg and asks where he can signup. Greg checks the Hot to Guide and notices that James can get a Registration Form and Direct Debit Authority Network to complete by downloading the forms from TopItUps website www. topitup. com. au ; or * ringing Customer Care and requesting the forms be mailed out.

James downloads the forms as'pdf files and prints them out. There is no dealer account nominated on the form. The download also includes the'How to Use Guide'and instructions on how to complete the forms correctly and where to fax or mail them. James completes the forms nominates his prepaid number and signs the T&Cs, and the Direct Deposit form. He mails the forms to TopItUp which starts the Registration process.

Ifristy is Concerned about her Privacy TopltUp will provide Personal I7Fformation to Registered Account Holders only.

Kristy saw a special last Sunday night on 60 Minutes regarding the new Privacy obligations on Private Sector organizations.

On Monday morning she gets an SMS from TopItUp telling her about a new range of ringtones that she can get using TopItUp. She remembers that she checked the Send Info box on the Registration Form when she signed up which gives TopItUp permission to send her this SMS.

She did not notice that Lee had TopItUp's Privacy Statement on the sales counter. She checks the'How to Guide'and reads that she view her Personal Information at a Network Communication Store after mailing, emailing or faxing her request to Jayson Packett, TopItUps Privacy Officer.

She decides to email TopItUp requesting that she views the Peronal Information for both Matt's account and her account at Network Wollongong. When Jayson reads her email, her arranges for Joe to print the Personal Information for both accounts. Joe rings Lee and informs him that Personal Information has been requested by Kristy and that she desires to view this in Lee's store. He asks Lee to stand by his Fax and to ring Kristy to arrange a convenient time for her to view the Personal Information. Joe than faxes both accounts to Lee.

When Kristy comes into store, Lee shows Kristy TopItUps Privacy Statement framed on his sales counter. Kristy is entitled to ask Lee for a copy which she does. Lee provides Kristy with the Personal Information for both accounts. Kristy notices that her street name has been mistyped when Ann originally typed Kristy's details into the TopItUp Registration Database. Kristy is in her rights to have TopItUp keep her information accurate and up to date. She asks Lee to fix the street address. While Kristy is in store, Lee handsets TopItUp

Customer Care centre handing the handset over to Kristy so she can identify herself and the change to her address is updated.

Ifristy Waftts to Change Matt's Password Kristy has been concerned that Matt stills wants to know his Password and Kristy is becoming nervous. The Password she created for Matt's account when she registered the account is the cat's name and is very easy to guess. She decides to change it. She rings Customer Care and talks to Crig. After Craig verifies that she is the Account Holder of Matt's account, Craig asks her to provide him with the old password. Craig cannot view the Account Holders Password. To change the Password, he must ask the Account Holder for thei Password, type this in and get a match from TopItiUp.

If he does get a match he will ask Kristy to spell her new password and type the new password in. To ensure this is performed correctly, Craig asks Kristy to spell the Password again as he re-enters it. If both entries for the new Password are the same, the new Password is accepted and the Account Holders account is updated.

If the Account Holder and the User are the same person, TopItUp will send an SMS to account holders handset"Your password has been successfully changed". In this instance, the Account Holder and User are different people, so TopItUp does not send an SMS.

ICristy Forgets tlze Password Kristy's forgets the new Password for Matt's handset. She rings Customer Care and talks to George. After George verifies that she is the Account Holder of Matt's account and that she has rung using Matt's handset.

George asks her additional questions about recent account activity, such as when did you last Request a TopUp. The additional questions are only asked when someone forgets their Password and require that enough information is provided to George for him to believe that she is not someone who may have stolen Kristy's handset and wallet.

If George is confident she is genuine, George will direct TopItUp to send the Password to Matt's handset as an SMS. George as a Customer Care Officer, does not have sufficient access to obtain Kristy's Password.

The TopUp Voucher Value Clanges The System handles the situation of a TopUp Voucher changing value. Since the Account Holder has an entitlement to a TopUp Voucher, the next time a Recharge Order is received, the TopUp delivered is valued at the old TopUp Voucher value and the new voucher is ordered and payment made at the new TopUp Voucher Value.

Vouclters are supplied GST Free In accordance with existing recharge vouchers purchased through stores, GTS is not paid by the customer on purchase but is levied and paid by the carrier as the service is used independent of the System.

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