Real-time issuer bidding to compete for use of electronic payment instrument by consumer

• US 10,026,117 B1
• Filed: 10/28/2011
• Issued: 07/17/2018
• Est. Priority Date: 10/28/2011
• Status: Active Grant

• Current Assignee: Intuit, Inc.
• Original Assignee: Intuit, Inc.
• Inventors: Arbel, Eran, Fedorov, Boris A.
• Primary Examiner(s): Qayyum, Zeshan
• Application Number:
  US13/284,740
• Time in Patent Office: 2,454 Days
• Field of Search: None
• CPC Class Codes: G06Q 30/08 Auctions

Abstract

Issuers of electronic payment instruments can bid or submit competing offers to consumers in real-time during a transaction to influence consumers selecting their electronic payment instruments to complete a pending electronic transaction. Requests for bids, issuer responses with offers or proposed terms (e.g., annual percentage rate, miles, points, cash back, etc.), analysis of competing issuer offers, and selection of an electronic payment instrument based on the offer analysis occur in real-time such as while the consumer is at an electronic payment device of a merchant. An electronic payment instrument may be selected for the consumer, e.g., the instrument associated with an offer that confers the greatest benefit to the consumer compared to other offers, or the offer data can be presented to the consumer such as in the form of a ranking or list so that the consumer can select the electronic payment to be utilized to complete the transaction.

Claims

1. A computer-implemented method for real-time electronic bidding by issuers to select an electronic payment instrument to be utilized by a consumer to complete a pending transaction for purchase of an item by the consumer from a merchant, the method comprising:

an intermediate bid analysis computer, in communication through respective communication networks with a mobile communication device of the consumer and respective computers of respective issuers of respective electronic payment instruments available to the consumer, receiving electronic transaction data for an item selected for purchase by the consumer, the electronic transaction data being received from the mobile communication device in real-time during a pending transaction, after the pending transaction has been initiated to purchase the item, and before the pending transaction has been completed, the mobile communication device comprising data of respective electronic payment instruments available for use by the consumer and being operable as a mobile wallet, each electronic payment instrument being governed according to default contract terms to which the consumer previously agreed to use the electronic payment instrument;

the intermediate bid analysis computer transmitting the electronic transaction data and respective bid requests to respective issuer computers, respective bid requests comprising a response time restriction such that a response must be received by the intermediate bid analysis computer from an issuer computer within a pre-determined time to be considered by the intermediate bid analysis computer;

the intermediate bid analysis computer receiving respective responses from respective issuer computers, comparing the pre-determined time and respective response times of respective issuer computers and selecting responses that were received within the pre-determined time,

each selected response comprising an offer by an issuer that would apply if the electronic instrument of the issuer is utilized to complete the pending transaction, a first selected response comprising a first offer comprising default terms governing a first electronic payment instrument issued to the consumer by the first issuer, and a second selected response comprising a second offer comprising proposed terms that differ from default terms governing a second electronic payment instrument issued to the consumer by the second issuer; and

the intermediate bid analysis computer comparing the respective offers comprising the first offer and the second offer, an electronic payment instrument being selected to complete the pending transaction based at least in part upon the comparison.

2. The method of claim 1, further comprising the intermediate bid analysis computer sending an authorization request to an issuer computer and receiving data indicating whether the issuer computer authorized use of the electronic payment instrument for the transaction together with a response to the bid request when the issuer computer authorized use of the electronic payment instrument for the transaction.

3. The method of claim 1, the consumer being at an electronic payment device of the merchant and within the merchant'"'"'s establishment while the intermediate bid analysis computer receives electronic transaction data from the mobile communication device, transmits electronic transaction data and respective bid requests to respective issuer computers, and receives respective responses from respective issuer computers.

4. The method of claim 1, the consumer being located remotely relative to a location of the merchant.

5. The method of claim 1, the intermediate bid analysis computer selecting the electronic payment instrument for the consumer based at least in part upon comparing the first offer and the second offer.

6. The method of claim 5, the intermediate bid analysis computer notifying the consumer of the selected electronic payment instrument by transmitting an electronic message to the mobile communication device, the selected electronic payment instrument being confirmed and utilized by the consumer to complete the pending transaction.

7. The method of claim 5, the intermediate bid analysis computer selecting the electronic payment instrument based at least in part upon an offer of a selected response that is associated with the selected electronic payment instrument providing a maximum benefit to the consumer compared to other offers of other selected responses that are associated with other electronic payment instruments of other issuers.

8. The method of claim 7, the maximum benefit involving a rewards program offered by the issuer of the selected payment instrument.

9. The method of claim 7, the maximum benefit involving an annual percentage rate charged by the issuer of the selected payment instrument.

10. The method of claim 1, further comprising the intermediate bid analysis computer transmitting the first offer and the second offer to the mobile communication device to notify the consumer of the first offer and the second offer, the electronic payment instrument to be utilized for the transaction being selected by the consumer.

11. The method of claim 1, further comprising the intermediate bid analysis computer

generating a list of the plurality of electronic payment instruments ranked based at least in part upon comparing respective offers of respective selected responses, and

transmitting the list to the mobile communication device, the consumer selecting an electronic payment instrument from the list.

12. The method of claim 1, a selected offer by a particular issuer comprising a proposed term that is more favorable than a default term of a contract of the particular issuer, wherein the consumer would receive the benefit of the proposed term when the pending transaction is completed using the electronic payment instrument of the particular issuer.

13. The method of claim 12, the default term comprising a default annual percentage rate, and the proposed term comprising an annual percentage rate that is lower than the default annual percentage rate.

14. The method of claim 13, the proposed term being applicable to the specific pending transaction for which the offer was submitted by the issuer.

15. The method of claim 12, the default term comprising a default number of points or miles awarded for the transaction amount, and the proposed term comprising a number of points or miles that is greater than the default number.

16. The method of claim 15, the proposed term being applicable to the specific pending transaction for which the offer was submitted by the issuer.

17. The method of claim 1, when the intermediate bid analysis computer does not receive a response to a bid request within the pre-determined time, the method further comprising the intermediate bid analysis computer comparing a default term of the contract of the issuer that did not respond to the bid request within the pre-determined time relative to proposed terms of offers of other issuers.

18. The method of claim 1, the intermediate bid analysis computer comparing the same type of proposed terms of respective offers of respective selected responses.

19. The method of claim 18, a proposed term comprising an annual percentage rate, the intermediate bid analysis computer comparing a first annual percentage rate of the first offer of the first selected response and a second annual percentage rate of the second offer of the second selected response.

20. The method of claim 18, a proposed term comprising a term of a rewards program, the intermediate bid analysis computer comparing a first rewards program term of the first offer of the first selected response and a second rewards program term of the second offer of the second selected response.

21. The method of claim 1, the intermediate bid analysis computer comparing respective offers of comprising the intermediate bid analysis computer comparing different types of proposed terms of respective offers of respective selected responses.

22. The method of claim 21, further comprising the intermediate bid analysis computer

normalizing the different types of proposed terms of respective offers of respective selected responses into a common metric or standard;

comparing the terms based on the common metric or standard, and

determining which proposed term is more beneficial to the consumer based at least in part upon the comparison of terms based on the common metric or standard.

23. The method of claim 22, the intermediate bid analysis computer normalizing a first proposed term comprising an annual percentage rate of the first offer and a second proposed term comprising a rewards program of the second offer.

24. The method of claim 22, the intermediate bid analysis computer normalizing a first proposed term of first offer comprising a number of miles to be awarded for the transaction amount and a second proposed term of the second offer comprising a number of points to be awarded for the transaction amount.

25. The method of claim 1, at least one of the electronic payment instruments comprising a credit card.

26. The method of claim 1, the electronic transaction data transmitted with the respective bid requests by the intermediate bid analysis computer to respective issuer computers comprising an identification of the consumer and an amount of the pending transaction.

27. The method of claim 1, the intermediate bid analysis computer receiving the electronic transaction data after a wireless connection is established between the mobile communication device and an electronic payment device of the merchant to initiate the pending transaction.