A METHOD OF ENABLING ELECTRONIC FINANCIAL TRANSACTIONS VIA A NEAR-FIELD COMMUNICATION INFRASTRACTURE

Field of the Invention

The present invention relates to transaction devices for enabling electronic financial transactions and, more particularly, to such a transaction device capable of receiving and transmitting data via a near-field communication infrastructure.

Background of the Invention

Electronic financial transactions embodying a process by which a monetary value is transferred from one's electronic financial account to another person's electronic financial account are commonly used in various payment systems. The electronic financial account may be a debit account, a credit account, a stored-value account, and the like. Physical cards having thin substrates or chips manufactured using semiconductor technologies and linked to such financial accounts have made it possible for payment transactions to be completed without physical cash.

Physical cards used in conventional payment systems such as those integrated in POS (point-of-sale) terminals operate in such a way that their substrates communicate with card readers over contact plates, and then all the information relevant to payment transactions are transmitted to a financial network typically consisting of an acquirer computer system, a payment data processing system such as those branded as Visa™ and Mastercard™, and an issuer computer system. These components of a typical financial network are linked together over a wide area network and operate to authorize payment transactions. Not all dedicated payment terminals equipped with card readers are, however, provided with means to communicate with the financial network over the wide area network. This effectively renders the physical cards inutile.

U.S. Patent Publication No. 2014/0136350 published on 15 May 2014 discloses a secure mobile contactless payment system, wherein a mobile phone includes a secure payment subscriber identity module Universal Integrated Circuit Card ("UICC/SIM" card) which is configured to communicate via an NFC (near-field communications) antenna, or a card reader interface, of the mobile phone wirelessly with an NFC enabled smartcard in order to send to and receive payment information from the smartcard. The UICC/SIM card is configured to store certificates, communicate, receive, process and request further information from and send payment information to a payment processing center such as a bank. Thus, the mobile phone is configured to serve as a contactless card reader, a display and a communication channel. In combination with the UICC/SIM card, mobile phone accepts payments without a need for a dedicated mobile payment terminal.

The secure payment UICC/SIM card according to the above cited prior payment system is configured to communicate with payment processing center using communication protocols available to mobile phone such as TCP/IP, GPRS, CSD, SMS, USSD, and so on. In one example, secure payment UICC/SIM card is configured to support off-line payments. For example, if the mobile phone is not able to communicate with payment processing center at the time of a transaction, secure payment UICC/SIM card is configured to store the processed payment information and to communicate the payment information to payment processing center at a later time.

The mobile phone according to the above cited prior payment system includes a user interface that is configured to enable a user to initiate a transaction. For example, the UICC/SIM card is configured to receive a transaction amount via a user interface. Accordingly, the secure payment UICC/SIM card is configured to initiate a payment transaction and to communicate the transaction amount as well as the received payment information to the payment processing center, wherein the payment transaction can be a prepaid, debit or credit card transaction or a fund transfer between two accounts. Once the transaction is complete, a payment processing center initiates a transfer of funds from the smartcard owner's account to mobile phone owner's account or to another designated account.

Mobile phones nowadays are commonly provided with short distance communications technologies. NFC is one of these technologies as described in, by way of example, ISO/IEC 18092:2004 standard which defines communication modes for NFC interface and Protocol (NFCIP-1) for interconnecting computer peripherals using inductive coupled devices at certain frequency <http://www. iso.org/iso/catalogue_detail. htm ?csnumber=38578>. Chip cards, which are also known as UICC/SIM cards and which are embedded with purpose-specific software applications, are commonly used to enable communications between software applications and the mobile phones and, further, any suitable communication network as may be defined by various industry standards.

The use of the NFC-enabled mobile phones and NFC-enabled UICC/SIM cards as described in the above cited prior payment system and in respect of NFC related communication standards provides a contactless technology for transmission of payment-related data between mobile phones, effectively eliminating the need to use physical cards in relation to card readers commonly installed as part of dedicated payment terminals and in turn of a financial network over a wide area network. However, the prepaid, debit or credit card transaction or the fund transfer as disclosed in the prior payment system may not, at all times, be appropriated with funds sufficient to authorize and complete a payment transaction thereby resulting in declined transactions. Thus, there remains an outstanding need to ensure success of an NFC- enabled payment transaction even in cases where electronic financial accounts associated with the NFC-enabled payment transaction have insufficient balance information.

Summary of the Invention

One aspect of the invention provides a transaction device which is suitable for use in enabling electronic financial transactions and which comprises: (i) a processor; (ii) a near-field communication (NFC) transceiver coupled to the processor for receiving and transmitting data via an NFC infrastructure; and (iii) a control circuit coupled to the processor and the NFC transceiver for controlling transmission of the data via the NFC infrastructure, wherein the data transmitted to and from the NFC transceiver includes transaction data.

The control circuit is arranged to: (i) execute a first transaction based on an electronic financial account balance; (ii) execute a second transaction based on an electronic checking account balance distinct from the electronic financial account balance; (iii) execute a third transaction based on an electronic stored- value balance; (iv) adjust any one of the electronic financial account balance, the electronic checking account balance, and the electronic stored-value balance using computer-executable loading instructions; (v) respond to an incoming transaction by communicating with a further transaction device using proximity-based services; and (vi) record first, second, third, and incoming transaction data associated with the first, second, third and incoming transactions, respectively, and representative of the transaction data.

The provision of the first, second, third, and incoming transactions, and as well as the adjustment of any one of the account balances, executable through the control circuit ensures the success of any NFC-enabled payment transaction even in cases where electronic financial accounts associated with the NFC-enabled payment transaction have insufficient balance information. For one, the wide range of choices among the financial account balance, checking account balance, and stored-value balance provides alternative source of funds in cases wherein any one of them has insufficient balance to complete a payment transaction. Furthermore, the adjustable financial account balance, checking account balance, and stored-value balance using computer-executable loading instructions provide mechanisms by which lacking funds or account balances may be replenished in a convenient manner.

Another aspect of the invention provides a control circuit suitable for use in enabling electronic financial transactions. The control circuit is also suitable for controlling transmission of transaction data to and from a transaction device via a near-field communication infrastructure. The control circuit comprises machine-executable applications which are configured to: (i) execute a first transaction based on an electronic financial account balance; (ii) execute a second transaction based on an electronic checking account balance distinct from the electronic financial account balance; (iii) execute a third transaction based on an electronic stored-value balance; (iv) adjust any one of the electronic financial account balance, the electronic checking account balance, and the electronic stored-value balance using computer-executable loading instructions; (iv) respond to an incoming transaction by communicating with a further transaction device using proximity-based services; and (vi) record first, second, third, and incoming transaction data associated with the first, second, third and incoming transactions, respectively, and representative of the transaction data.

Yet another aspect of the invention provides a machine-implemented method of enabling electronic financial transactions suitable for use in controlling transmission of transaction data to and from a transaction device via a near-field communication infrastructure. The method comprises: (i) executing a first application representative of a first transaction based on an electronic financial account balance; (ii) executing a second application representative of a second transaction based on an electronic checking account balance distinct from the electronic financial account balance; (iii) executing a third application representative of a third transaction based on an electronic stored-value balance; (iv) adjusting any one of the electronic financial account balance, the electronic checking account balance, and the electronic stored-value balance using computer-executable loading instructions; (v) responding to an incoming transaction by communicating with a further transaction device using proximity- based services; and (vi) recording first, second, third, and incoming transaction data associated with the first, second, third and incoming transactions, respectively, and representative of the transaction data.

For a better understanding of the invention and to show how the same may be performed, preferred embodiments thereof will now be described, by way of non-limiting examples only, with reference to the accompanying drawings.

Brief Description of the Drawings

Figure 1 is a block diagram illustrating general components a transaction device suitable for use enabling electronic financial transactions in accordance with one or more embodiments of the invention.

Figure 2 is a high-level block diagram illustrating detailed components of the transaction device of Figure 1.

Figure 3 is a block diagram illustrating an exemplary architecture of a control circuit of Figure 1.

Figure 4 is a sequence diagram illustrating a process for executing a payment transaction in accordance with the transaction device of Figure 1. Figure 5 is a sequence diagram illustrating a process for executing another payment transaction in accordance with the transaction device of Figure 1.

Figure 6 is a sequence diagram illustrating a process for issuing a SIM card containing a control circuit of Figure 1.

Figure 7 is a sequence diagram illustrating a process for linking the SIM card of Figure 6 to an electronic financial account.

Figure 8 is a sequence diagram illustrating a process for adjusting an electronic financial account in accordance with one embodiment of the invention.

Figure 9 is a sequence diagram illustrating a process for adjusting an electronic financial account in accordance with another embodiment of the invention.

Figure 10 is a sequence diagram illustrating a process for adjusting an electronic financial account in accordance with yet another embodiment of the invention.

Figure 11 is a sequence diagram illustrating a process for performing payment transaction in accordance with one embodiment of the invention.

Figure 12 is a sequence diagram illustrating a process for performing payment transaction in accordance with another embodiment of the invention.

Detailed Description of Preferred Embodiments

Referring to Figure 1, there is shown a block diagram illustrating general components a transaction device suitable for use in enabling electronic financial transactions via a near-field communication (NFC) infrastructure in accordance with one or more embodiments of the present invention. The transaction device is consistently designated by reference numeral 100 throughout the ensuing description. The transaction device 100 mainly includes a processor 102, an NFC transceiver 104 coupled to the processor 102, and an NFC-enabled control circuit 106 coupled to the processor 102 and the NFC transceiver 104.

The processor 102 which serves as a host controller, the NFC transceiver 104 which is capable of receiving and transmitting data via the NFC infrastructure through the aid of an electronic antenna circuit 104a, and the control circuit 106 which is arranged to control transmission of the data via the NFC infrastructure interact with one another to primarily enable an electronic financial transaction via the NFC infrastructure.

The processor 102 may be suitably selected from any of well-known general-purpose or specific-purpose processors such as micro-processors, digital signal processors, and the like. Through the NFC transceiver 104, the processor 102 is able to connect to the NFC infrastructure. The processor 102 controls the transaction device 100 to activate various functions of the transaction device 100 by way of executing programs and software applications which may be stored on a storage device 108. The storage device 108 may be selected from any one of or suitable combinations of a solid state hard drive, a RAM (random-access memory), a ROM (read-only memory), an EEPROM (electrically erasable programmable read-only memory), a flash memory, a semiconductor storage device, or any other computer-readable storage medium having the capability of storing computer-executable program instructions and/or digital information.

The NFC transceiver 104 is configured to enable operations using NFC communications protocols based upon the NFC infrastructure. These communications protocols enable the transmission of the data from and to the transaction device 100 over the NFC infrastructure. In one embodiment, this transmission of the data through the NFC infrastructure may be made between the transaction device 100 and any further transaction device which may include, by way of non-limiting examples, a portable NFC-enabled mobile phone 110 owned by individual users, an NFC-enabled POS (point-of-sale) reader 112 commonly installed in POS systems maintained by merchants, an NFC-enabled transit reader 114 commonly made operable in transportation infrastructures, a portable NFC-enabled kiosk 116, a portable NFC-enabled tag 118, and a portable NFC-enabled card 120. The further transaction device may also be in the form of a computer (e.g., desktop computer, laptop computer, minicomputer), a tablet computer, a personal digital assistant, a sticker, and a wearable device (e.g., Android Wear wrist-watch, Pebble Wear wrist-watch, Google glass, heart monitor, accelerometer, gyroscope).

The control circuit 106 which is arranged to control the transmission of the data via the NFC infrastructure may reside on a secure element (SE). As is well-known in the art of information and communication technology, this secure element may exist in a form factor that can be selected from a group consisting of a Universal Integrated Circuit Card, embedded Secure Element card, smart Secure Digital card, and smart micro Secure Digital card, all of which may be removably attachable to the transaction device 100 or, alternatively, may form as an integral part of the transaction device 100. Preferably, the control circuit 106 is an integrated circuit that is arranged to securely store the following information: unique serial number (ICCID) information; international mobile subscriber identity (IMSI) information; security authentication and ciphering information; information related to local networks; list of accessible service information based on authorization information; and password information such as PIN (personal identification number) and PUK (personal unblocking code).

Software applications or application programs, which are collectively referred herein to as "SE applications," may be embedded in the control circuit 106 using codes in programming languages such as, by way of non-limiting examples, C, C++, and Java which are readable by the processor 102, effectively causing the transaction device 100 to read and execute programs arranged in the control circuit 106 to perform various operations. The data transmitted to and from the NFC transceiver 104 include transaction data that may be generated using the aforementioned operations that can be executed using the control circuit 106 in communication with the processor 102 of the transaction device 100. A device application, which may be stored on the storage device 108 and, further, which can also be programmed using C, C++, and Java may be made operable in the transaction device 100.

In operation, the device application of the transaction device 100 may be arranged such that it is capable of requesting access to the SE applications embedded in the control circuit 106 using predefined access rights information. A granted access to any one of the SE applications causes interchange of data and commands between the device application and a particular SE application. The device application of the transaction device 100, using a GUI (graphical unit interface) module 122, may provide a GUI for displaying and receiving an indicia of the transaction data which may be generated by the SE applications of the control circuit 106 which may be stored either on the storage device 108 of the transaction device 100 or on a memory system of the control circuit 106. A user may use the GUI to initiate one or more transactions.

The control circuit 106, through the SE applications, may be arranged to execute a first transaction based on an electronic financial account balance associated with an electronic financial account owned by a financial account holder and maintained in a financial institution computer system 124. The electronic financial account may be a cash account, a credit account, a prepaid account, a savings account, a current account, a trust account, and an investment account., or any suitable combinations thereof. The execution of the first transaction by the control circuit 106 causes generation of first transaction data. The transaction device 100, in this regard, includes a wireless communication transceiver 126 coupled to the processor 102 for receiving and transmitting the transaction data via a wireless communication network utilizing network protocols such as, by way of example, TCP/IP (Transmission Control Protocol/Internet Protocol).

It is to be understood and appreciated that other forms of the wireless communication network may be used to facilitate data exchange between the transaction device 100 and the financial institution computer system 124 such as WLAN (wireless local area network), WWAN (wireless local area network), and wireless MAN (metropolitan area network). The first transaction executable through the control circuit 106 may be characterized as "e-wallet" that can be used in enabling and completing electronic payment transactions, the full features of which will be discussed in the ensuing disclosure of the transaction device 100 of the present invention.

The control circuit 106, through the SE applications, may likewise be arranged to execute a second transaction based on an electronic checking account balance associated with a further electronic financial account owned by the financial account holder and maintained in the financial institution computer system 124. The electronic checking account balance, for that matter, is distinct from the electronic financial account balance. The execution of the second transaction by the control circuit 106 causes generation of second transaction data. The second transaction executable through the control circuit 106 may be characterized as "e-checkbook" that can be used in enabling and completing electronic payment transactions, the full features of which will be discussed in the ensuing disclosure of the transaction device 100 of the present invention.

The control circuit 106, through the SE applications, may further execute a third transaction based on an electronic stored-value balance. Unlike the first and second transactions, the third transaction may not be linked to or associated with any electronic financial account maintained in the financial institution computer system 124. The execution of the third transaction by the control circuit 106 causes generation of third transaction data. The third transaction executable through the control circuit 106 may be characterized as "e-cash" that can be used in enabling and completing electronic payment transactions involving digital cash, the full features of which will be discussed in the ensuing disclosure of the transaction device 100 of the present invention.

The control circuit 106, through the SE applications, may be configured to adjust any one of the electronic financial account balance, the electronic checking account balance, and the electronic stored-value balance using computer-executable loading instructions. This adjustment configuration executable through the control circuit 106 may be characterized as "e-loading" that can be used in the adjustment of the electronic financial account balance, the electronic checking account balance, and the electronic stored-value balance by replenishing the electronic financial account, the electronic checking account, and the electronic stored-value account, respectively, through any of the near-field communication infrastructure, proximity-based services, the wireless communication network and a telecommunication network, the full features of which will be discussed in the ensuing disclosure of the transaction device 100 of the present invention.

The control circuit 106, through the SE applications, may further be configured to serve as an "NFC reader" by being capable of responding to an incoming transaction by communicating with any one of the illustrated further transaction device (i.e., the NFC-enabled mobile phone 110, the NFC-enabled kiosk 116, the NFC-enabled tag 118, and the NFC-enabled card 128 using the proximity-based services. Preferably, the proximity-based services may include, by way of non-limiting examples, near-field communications (NFC), radio- frequency identification (RFID) communications, ultra high frequency (UHF) communications, very high frequency (VHF) communications, Bluetooth communications, ZigBee ^® communications, and Infrared communications. The full features of the incoming transaction to the control circuit 106 of the transaction device 100 will be discussed in the ensuing disclosure of the transaction device 100 of the present invention.

In all the non-payment-related transactions or payment-related transactions that can be carried out by the control circuit 106 in cooperation with the processor 102 of the transaction device 100, the first, second, third, and incoming transaction data associated with the first transaction, the second transaction, the third transaction and the incoming transaction, respectively, and representative of the transaction data can be stored on the storage device 108 and can be graphically rendered on the GUI of the transaction device 100 using the GUI module 122.

Further, the transaction data represented by the first, second, and incoming transaction data may be adapted to be used for updating records of the electronic financial accounts corresponding to any of the financial account balance and the checking account balance and maintained in the financial institution computer system 124 via the wireless communication network using the wireless communication transceiver 126. Various arrangements may be employed in updating the records of the financial accounts which may be referred herein to as "e-passbook," the full disclosure of which will be presented in the ensuing description of the transaction device 100 into which the control circuit 106 may be inserted or of which the control circuit 106 may be made as an integral part in accordance with the embodiments of the present invention.

Adjustment data associated with an adjustment of any one of the account balances based on the loading instructions may be recorded by the "e- passbook" feature of the control circuit 106 of the present invention and may also be stored on the storage device 108 and graphically rendered on the GUI of the transaction device 100. In other words, the control circuit 106 is further arranged to record the adjustment data associated with adjustments caused by the computer-executable loading instructions.

Preferably, the control circuit 106 is further arranged to communicate with any of the further transaction device 110, 112, 114, 116, 118, 120 using location-based services which may be based on a satellite positioning system. In one embodiment, detection by the processor 102 or by the control circuit 106 that the transaction device 100 in which they are resident is within a particular geographical area, a discount value may be applied against a transaction value associated with any of the electronic financial account balance, the electronic checking account balance, and the electronic stored- value balance. The satellite positioning system may include a United States Global Positioning System, a Russian Glonass System, or a European Galileo System, any unitary system which utilizes one or more combinations of such individual satellite positioning systems, or any system which utilizes pseudolites operable in conjunction with satellites.

In terms of power supply, the processor 102 may be adapted to turn the control circuit 106 "on" or "off" as shown by the switch element 128 either in a time-based manner or as long as the mobile phone is operational. The operation of the control circuit 106 may also be switched "on" or "off" in a manual fashion by a human user. Any or all of these configurations may be selectably provided on the transaction device 100 for various purposes such as saving of power consumption or convenience of the user. In terms of electrical connection, the control circuit 106 may be made such that it is in electrical communication with electrical components of the transaction device 100. It also preferable that storage device 108 is shared with the control circuit 106 by the transaction device 100 whenever they are electrically connected with one another through any suitable contact plates. Apart from the NFC infrastructure, and as mentioned, payment related transactions embodied by the present invention may also be conducted over the wireless communication network or the Internet. In one embodiment, any of the first, second, and third transactions may be resident on an electronic commerce or e-commerce platform which can be made accessible from the transaction device 100 via the wireless communication network. These e- commerce platforms may be accessed using a web browsing application, and identifier information associated with the electronic financial account, the electronic checking account, and the electronic stored-value account may be used to complete checkout processes in any e-commence platform such as E- bay, Amazon, and other sites through which electronic orders for various goods and services may be placed, processed, and completed.

In terms of security features that may be employed in the present invention, any one of the processor 102 and the control circuit 106 may be arranged to execute an authentication module. The authentication module may be configured to authenticate any one of the first, second, third, and incoming transactions executable through the control circuit 106. In this regard, the first, second, third, and incoming transactions may be authenticated by the authentication module on the basis of any one of a received pass code, a received user identification code, and a received transaction code associated with any one of the first, second, third, and incoming transactions.

The received pass code, the received user identification code, and the transaction code may be based on any of a personal identification number and a biometrics information. In the case of the biometrics information, associated security data may be obtained from a voice recognition system, a face recognition system, a hand pattern recognition system, a fingerprint recognition system, an iris recognition system, a retina recognition system, or vein recognition system. It is to be understood and appreciated that aforementioned biometrics information gathering systems constitute a non-exhaustive list. Any computer-implemented genetic sequencing systems for identifying encoded biological or chemical properties of human individuals may be employed in the present invention.

In terms of further security features that may be employed in the present invention, the control circuit 106 may be made deactivatable upon detecting, by any of the processor 102 and the control circuit 106, change in signal from any one of the further communication device. Alternatively, control circuit 106 may be made deactivatable upon executing, by the control circuit 106, any one of the first, second, third, and incoming transactions. Where, for example, the transaction device 100 passes through the transit reader 114 on a highway road network and then the electronic stored-value value balance associated with the third transaction is consequently adjusted, the control circuit 106 may be arranged to deactivate an operation that controls the execution of the third transaction.

The reactivation of the deactivated operation of the control circuit 106 may require any of the above-mentioned authentication information. This ensures that sensitive information such as the account balance and personal information of the account holder are no longer accessible without the knowledge or authorization of the account holder after execution of each and every transaction by the control circuit 106. All the security features described herein are arranged for the purpose of protecting the transaction device 100 and all the information associated with it against potential fraudulent activities such as hacking of personal information, unauthorized distribution of personal information, misuse of account balances, and the like.

The provision of the SE applications characterized by the first, second, third, and incoming transactions, and as well as the adjustment of any one of the account balances, executable through the control circuit 106 ensures the success of any NFC-enabled payment transaction even in cases where electronic financial accounts associated with the NFC-enabled payment transactions have insufficient balance information. For one, the wide range of choices among the "e-wallet," "e-checkbook," and "e-cash" features of the control circuit 106 of the transaction device 100 provides alternative source of funds in cases where any one of them has insufficient balance to complete a payment transaction. Furthermore, the "e-loading" feature of the control circuit 106 of the transaction device 100 provides a mechanism by which lacking funds or account balances may be replenished in a convenient manner.

Referring to Figure 2, there is shown a high-level block diagram illustrating detailed components of the transaction device of Figure 1 in accordance with one or more embodiments of the present invention. The transaction device of Figure 1 includes the processor 102 which serves as a host controller capable of executing computer-executable instructions from any of the RAM (random-access memory) 200, the ROM (read-only memory) 202, the flash memory 204, and an external memory 206 through a system bus. A storage controller 208 and an external storage controller 210 may also be provided on the transaction device in communication with the processor 102 for facilitating proper storage of data in their respective locations.

The NFC transceiver 104 containing the antenna 104a and the control circuit 106 constitute the components of the transaction device as previously illustrated in Figure 1. In Figure 2, it is shown that the NFC transceiver 104 may include an NFC controller 212 for enabling predetermined selection of any SE application from various SE applications based on the event detected by the control circuit 106. The NFC transceiver 104 also includes an NFC receiver 214 for receiving signals representative of any of the first, second, third, and incoming transactions corresponding to the payment transaction as described in Figure 1, wherein any of the first, second, and third transaction data generated by the first, second and third transaction executable through the control circuit 106 correspond to payment data. The payment transaction may also be associated with non-bank issued electronic accounts such as discount card accounts, loyalty card accounts, insurance card accounts, senior citizen card accounts, or any electronic account that has a transaction value.

Preferably, the transaction device also includes an I/O controller 216, a display driver 218, a GPS receiver 220, and a touch sensor controller 220, each of which is in communication with the processor 102. In addition to the NFC transceiver 104, the transaction device may also include a cellular transceiver 222, a Wi-Fi transceiver 224, a Bluetooth™ transceiver 226, and an Infrared transceiver 228, each of which is in communication with the processor 102.

Referring to Figure 3, there is shown a block diagram illustrating an exemplary architecture of a control circuit of Figure 1. The control circuit may exist in the form of a SIM card that can be inserted into the transaction device of Figure 1. The SIM card may include a subscriber identity module (SIM) that identifies the transaction device into which it may be inserted. The SIM card may also include its own CPU (central processing unit) 302, a RAM 304, a ROM 306, an EEPROM 308, and an input/output interface 310.

Like the usual design of SIM cards, the SIM card of the present invention may also include a power conditioning element 312, a security logic 314, and a Vpp (peak-to-peak voltage) generator 316. These exemplary components of the SIM card may interact or communicate with one another through a system bus 318. The SIM card may also include its own cellular transceiver 320, Bluetooth™ transceiver 322, Wi-Fi transceiver 324, and NFC transceiver 326 with antenna 326a. In this respect, the SIM card may also facilitate NFC-based communications dependency or independently of the NFC transceiver of the transaction device. The control circuit embodied in the SIM card may be suitable for use in enabling electronic financial transactions. The control circuit may also be suitable for controlling transmission of transaction data to and from a transaction device via a near-field communication infrastructure. The control circuit comprises machine-executable applications which are configured to: (i) execute a first transaction based on an electronic financial account balance; (ii) execute a second transaction based on an electronic checking account balance distinct from the electronic financial account balance; (iii) execute a third transaction based on an electronic stored-value balance; (iv) adjust any one of the electronic financial account balance, the electronic checking account balance, and the electronic stored-value balance using computer-executable loading instructions; (iv) respond to an incoming transaction by communicating with a further transaction device using proximity-based services; and (vi) record first, second, third, and incoming transaction data associated with the first, second, third, and incoming transactions, respectively, and representative of the transaction data. The machine-executable applications associated with the control circuit are further configured to record adjustment data associated with one or more adjustments caused by the computer-executable loading instructions.

Referring to Figure 4, there is shown a sequence diagram illustrating a process for executing a payment transaction in accordance with the transaction device of Figure 1. Particularly, the sequence diagram of Figure 4 illustrates a process for operating the "e-wallet" feature in relation to the "e-passbook" feature of the SE applications embedded in and executable through the control circuit which may exist in the form of a SIM card insertable into the transaction device as illustrated in Figure 1. The "e-passbook" embedded in the SIM Card behaves substantially the same as a bank's statement of account for a subscriber's financial transactions in the "e-wallet" feature. The statement of account embodying the "e-passbook" feature of the present invention preferably contains the following information: (i) transaction date and time information; (ii) unique transaction number information; (iii) transaction code which describes the banking transaction or the financial transaction; (iv) information representative of debit column for payments or withdrawals; (v) information representative of credit column for deposits or loads ("deposits"); (vi) balance or outstanding balance information of the subscriber's deposit; and (vii) information representative of remarks for additional description or instruction.

After the subscriber has conducted a transaction using the "e-wallet" feature of the present invention as indicated by arrow 400, the SIM card downloads the older transaction to the transaction device as indicated by arrow 402 that is subsequently uploaded to an issuer computer, as indicated by arrow 404, such that it may be used to ensure completeness of transactions, prevent overloading, and as well as audit. Thereafter, the issuer computer archives the uploaded transaction as indicated by arrow 406.

The "e-wallet" feature enables the subscriber to: (i) accept deposits or money in the "e-wallet" in his possession; or (ii) pay for goods and/or services he purchased from a merchant; or (ii) transfer funds from the "e-wallet" to and from another "e-wallet." The "e-wallet" feature may operate using multi- currencies such as Dollar, Pesos, Yen, and the like. The "e-wallet" feature may also operate using multi-tokens such as stored values, chits, loyalty points, and the like. The "e-wallet" feature may operate for cross-border transactions. For example, the SIM card may be issued by a bank in the Philippines but it can be used to purchase goods and services in another country.

Referring to Figure 5, there is shown a sequence diagram illustrating a process for executing another transaction in accordance with the transaction device of Figure 1. Particularly, the sequence diagram of Figure 5 illustrates a process for operating the "e-checkbook" feature of the SIM card of the present invention. The "e-checkbook" feature enables the subscriber (or the "payor") to order payment of money from his deposit account with the SIM card issuer (or the "drawee") to another party (or the "payee"). The payor and the payee may be natural person or juridical or legal entity. The SIM card issuer may be a bank or telco with which the subscriber has a credit, debit or pre-paid account. The SIM card has an issuer computer that performs electronic financial transactions.

The "e-checkbook" feature of the SIM card of the present invention may be made, upon issuance, to reflect the balance of the credit, debit, or pre-paid account that the subscriber may want to use to pay for goods and/or services he desires to purchase from a merchant, an individual or any business entity. By tapping his SIM Card on the "NFC reader" feature of the present invention, the subscriber in effect accepts the charges by the seller (i.e., the merchant, the individual, or the business entity) for goods and/or services purchased by the subscriber from the seller, as indicated, respectively, by arrows 500, 502.

By tapping his SIM Card on the NFC Reader, the Subscriber "A" also allows the transfer of electronic monetary value from his electronic issuer account to a payee's acquirer computer as indicated by arrow 504. Further, by tapping his SIM Card on the NFC reader, the subscriber in effect instructs the issuer computer to pay for the goods and/or services he purchased or to transfer the electronic money value from his account to the account of the seller as indicated, respectively, by arrows 506, 508. The "e-checkbook" being the replacement of a regular chequebook, all the rules and regulations pertaining to the regular checks may apply to all payment orders coming from the "e-chequebook."

The "e-checkbook" feature of the SIM card of the present invention is arranged to issue all variants of checks or payment orders currently used in any banking system. From time to time, the issuer computer updates the balance on the e-checkbook as indicated by arrow 510. As illustrated in Figure 1, the NFC reader is an application program for reading NFC transactions or messages that can be embedded in the SIM Card. With the NFC reader in the SIM card, phone-to-phone banking and financial transactions can be made possible.

Referring to Figure 6, there is shown a sequence diagram illustrating a process for issuing a SIM Card containing the control circuit of Figure 1. The issuer, using SIM information stored in an issuer computer, issues the SIM Card to the subscriber, as indicated by arrow 600. Upon insertion of the SIM card into the transaction device, the SIM information accompanying the SIM card are automatically registered to the issuer computer, as indicated by arrow 602. The issuer may be a telco, or a bank with a telco as a co-issuer.

The issuer may generally keep the "float" of the "e-wallet" or the unutilized electronic funds that are deposited in the "e-wallets" of all the subscribers. The electronic "float" may be used to settle all electronically enabled payment instructions of the subscribers for goods and services that they purchased from sellers. The issuer may also enjoy the interest it earns on the "float" and may store the "float" value on the issuer computer, as indicated by arrow 604. The co-issuer, through the co-issuer computer, may obtain part of the income of the issuer from the issuer computer, as indicated by arrow 606.

Referring to Figure 7, there is shown a sequence diagram illustrating a process for linking the SIM Card of Figure 6 to an electronic financial account. Particularly, the sequence diagram of Figure 7 illustrates a process for linking the SIM Card to the subscriber's issuer accounts. When the issuer issues the SIM Card to the subscriber, and upon request of the subscriber using the transaction device, the issuer may give the subscriber the option to link his SIM Card to his issuer or bank accounts using the issuer computer as indicated by arrow 700. The issuer or bank accounts may be a credit, debit, or pre-paid account, among others.

To link the subscriber's SIM card to his issuer accounts, he may register the "e-passbook" and "e-wallet" features of the SIM card issued to him by the issuer. The registration may be made via encrypted SMS (Short Messaging Service) or secured TCP/IP connection using the transaction device. Upon applying validation methods, the issuer may link the subscriber's SIM card with the subscriber's issuer accounts, as indicated by arrow 702. By linking the subscriber's SIM card to his issuer accounts, the subscriber may be able to access his issuer accounts using the transaction device as indicated by arrow 704. The subscriber may also be able to electronically transfer funds from his issuer accounts to the "e-wallet" feature of his SIM card, as indicated by arrow 706.

Referring to Figure 8, there is shown a sequence diagram illustrating a process for adjusting an electronic financial account in accordance with one embodiment of the present invention. Particularly, the sequence diagram of Figure 8 illustrates a process for loading the "e-wallet" feature of the SIM card of the present invention via over-the-air (OTA). To use OTA transfer, the subscriber may instruct his issuer to transfer some deposits from his issuer accounts (which may be a credit, debit or pre-paid, among others) to his e- wallet via encrypted SMS or secured TCP/IP connection using the transaction device, as indicated by arrow 800.

For bigger amounts, the bank or telco accounts may ask for the subscriber's PIN (Personal Identification Number). For security purposes, loading the e-wallet via OTA may be conducted online. In response, the issuer may transfer the electronic monetary value to the transaction device using the issuer bank computer, as indicated by arrow 802. Consequently, an acknowledge receipt may be provided by the transaction device to the issuer bank computer, as indicated by arrow 804.

Referring to Figure 9, there is shown a sequence diagram illustrating a process for adjusting an electronic financial account in accordance with another embodiment of the present invention. To use Over-The-Counter (OTC) as illustrated in Figure 9, the Subscriber 900 goes to a POS Reader that sells money or tokens. Such POS reader may be located conveniently in the merchant's premises. He may give cash, as indicated by block 902, to the POS operator 904 who may have encoded the amount as indicated by block 906, then taps his SIM Card on the POS Reader and his e-wallet, as indicated by block 908, gets loaded with the amount he paid less any service fees. Loading the POS Reader with money or tokens may be conducted on-line. For as long as the POS Reader has a balance of money or tokens, it may dispense such balance on-line or off-line.

Referring to Figure 10, there is shown a sequence diagram illustrating a process for adjusting an electronic financial account in accordance with yet another embodiment of the invention. Loading phone-to-phone, as particularly illustrated in Figure 10, may be done when both SIM cards are connected on ^¬ line to the subscribers' issuers. For example, Subscriber "A" 1000 may send money to Subscriber "B" 1002 using the secured network of the transaction device of the present invention then sending the amount to the issuer 1004, as indicated by arrow 1006. The issuer 1004 using the same or another secured network, may send the same amount to Subscriber "B" 1002, an indicated by arrow 1008.

Conversely, Subscriber "B" 1004 may also send money using the same or another secured network to Subscriber "A" 1000 passing through the issuer 1004, as indicated by arrow 1010. Likewise, the issuer 1004 sends the same amount to Subscriber "A" 1000 using the same or another secured network, as indicated by arrow 1012.

Referring now to Figure 11, there is shown a sequence diagram illustrating a process for performing payment transaction in accordance with one embodiment of the invention. Particularly, the sequence diagram of Figure 11 illustrates a process for paying with the "e-wallet" via phone to POS reader. In the process for paying with the "e-wallet" via phone to POS reader, the subscriber may pay for goods and services he purchased from the merchant by tapping his SIM card on the POS reader conveniently located at the merchant's cashier station that may accept payments for credit, debit, and pre-paid cards, comprising NFC-enabled phones and SIM card, as indicated by arrow 1100.

By tapping the subscriber's SIM card on the POS reader, the amount due to the Merchant may be deducted from his "e-wallet," as indicated by arrows 1102, 1104. The acquirer, through the acquirer computer, may acquire all electronic transactions that go through the POS readers at the merchant's cashier and teller stations. The acquirer may subsequently instruct his acquirer computer to process the transactions for clearing and settlement, rendering a new balance based on the deducted amount, as indicated by arrow 1106. Payment through the "e-wallet" may be conducted on-line or offline. On-line means the "e-wallet" can pay the merchant while the POS reader is connected to the back-end processing in the acquirer computer, as indicated by arrow 1108. Off-line means the "e-wallet" can pay the merchant even if the POS reader is not connected to the back-end processing.

Referring to Figure 12, there is shown a sequence diagram illustrating a process for performing payment transaction in accordance with another embodiment of the present invention. In particular, the sequence diagram of Figure 12 illustrates a process for paying with the "e-wallet" via phone-to- phone. In this process, the acquirer who acquires all transactions from his designated POS Readers, using the acquirer computer, can also acquire all transactions from NFC-enabled phones and SIM cards that act as NFC reader.

The acquirer authorizes the phone or SIM card subscriber to use his phone or SIM card to accept banking and financial transactions involving money or tokens, as indicated by arrow 1200. As such, the SIM card subscriber may transfer money or tokens via SIM card to phone (assuming the phone may act as NFC Reader, or SIM Card to SIM Card (assuming the latter can also act as NFC Reader). The subsequent steps, as indicated by arrows 1202, 1204, 1206, 1208 and 1210, behave substantially similar to the steps indicated by the arrows 1100, 1102, 1104, 1106 and 1108 of the sequence diagram of Figure 11.

Although not illustrated, a process for processing POS (NFC phone) transactions will now be described. The acquirer computer may be made to check the transactions of the acquirer by: (i) forwarding them to the SIM card issuer for verification; (ii) carrying out anti-fraud measures against the transaction; and (iii) checking previous payment history. Once the acquirer computer serving as payments processor receives verification from the issuer, it relays the information back to the acquirer who then completes the payment transaction. If the issuer denies the verification of the transaction, the acquirer computer relays the information to the acquirer, who then declines the transaction. Processing for the acquirer also includes monitoring, reporting and other services.

Although not illustrated, a process for clearing the banking and financial transactions will now be described. In banking and finance, clearing (usually done by third parties) denotes all activities from the time a commitment is made for a transaction until it is settled. Clearing of payments is necessary to turn the promise of payment (for example, in the form of a check, electronic payment request, or stored value) into actual movement of money from one bank account to another or one bank to another bank.

During the clearing process, the acquirer provides the appropriate issuer with information on the sale or exchange of values. Preferably, no money is exchanged during clearing. Clearing involves the exchange of data only. The acquirer provides data required to identify the subscriber's account with the issuer and provide the dollar amount of the sales. When the issuer gets these data, the issuer posts the amount of the sale as a draw against the subscriber's available credit or deposit and prepares to send payment to the acquirer.

Although not illustrated, a process for settling the banking and financial transactions will now be described. Settlement involves the actual exchange of funds. The issuer sends a record of money or token being transferred from its account to that of the acquirer. From this account, the acquirer pays the merchant for his goods and/or services purchased by the subscriber. The acquirer also distributes the merchant discount given by the merchant to the participants of the payment system illustrated herein.

In another embodiment of the present invention, there is provided a machine-implemented method of enabling electronic financial transactions suitable for use in controlling transmission of transaction data to and from a transaction device via a near-field communication infrastructure. The method comprises: (i) executing a first application representative of a first transaction based on an electronic financial account balance; (ii) executing a second application representative of a second transaction based on an electronic checking account balance distinct from the electronic financial account balance; (iii) executing a third application representative of a third transaction based on an electronic stored-value balance; (iv) adjusting any one of the electronic financial account balance, the electronic checking account balance, and the electronic stored-value balance using computer-executable loading instructions; (v) responding to an incoming transaction by communicating with a further transaction device using proximity-based services; and (vi) recording first, second, third, and incoming transaction data associated with the first, second, third, and incoming transactions, respectively, and representative of the transaction data. The method may also include recording adjustment data associated with one or more adjustments caused by the computer-executable loading instructions.

While the present invention has been described with respect to a limited number of embodiments, those skilled in the art, having benefit of this disclosure, will appreciate that other embodiments can be devised which do not depart from the scope of the present invention as disclosed herein.