Method and system for secured web-based escrowed transactions

• US 20010037290A1
• Filed: 02/26/2001
• Published: 11/01/2001
• Est. Priority Date: 02/24/2000
• Status: Abandoned Application

• Current Assignee: Oliver Woiwode
• Original Assignee: Oliver Woiwode
• Inventors: Lai, Tony
• Application Number:
  US09/794,815
• Publication Number:
  US 20010037290A1
• Time in Patent Office: Days
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/00 Payment architectures, schemes or protocols apparatus for performing or posting payment transactions G07F7/08, G07F19/00; electronic cash registers G07G1/12
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"

Abstract

A method and system for enabling a secure transaction using the Internet is disclosed. The method comprises using a Personal Identification Number (PIN) for business transactions wherein the customer does not directly reveal financial or home address information during the transaction. Instead, an escrow agent supplies delivery instructions to the merchant. The escrow agent then collects payment from the customer and places the payment in an escrow account. Shipping information is not provided to the merchant until the payment is in escrow. Payment is only made to the merchant after the merchant confirms the goods have been shipped.

Claims

1. A system for secured escrowed network transactions between consumers having access to consumer computers and a company having partners, each partner having a partner account and access to a partner computer, the consumer and partner computers each being connectable to a communication network, the system comprising:

(a) a server host computer operatively connected to the communication network;

(b) a host database having member tables, partner tables, transaction tables, and bank tables; and

(c) means for accessing at least some of the tables of the host database by the server host computer;

(d) means for registering consumers as members having respective demographic information, payment accounts, and member identification numbers;

(e) means for processing a first network communication from a partner, the first network communication including a member identification number and a transaction amount;

(f) means for depositing payment of the transaction amount from the payment account of the member into an escrow account as an escrow deposit; and

(g) means for notifying the partner of shipping data for the transaction only following the payment of the transaction amount from the payment account.

2. The system of

claim 1

, wherein the means for registering consumers as members comprises:

(a) consumer data entry means accessible through the network for receiving and storing in the host database for each accessing consumer the demographic information, payment account information, and member identification number;

(b) means for verifying the demographic information and the payment account information;

(c) means for verifying satisfactory credit-worthiness of the payment account; and

(d) means for communicating acceptance or denial of the consumer as a member.

3. The system of

claim 2

, wherein the means for verifying the demographic information and the payment account information is operable for identifying inconsistent data during a network session in which the data is entered by the consumer.

4. The system of

claim 1

, further comprising:

(a) means for processing a second network communication confirming performance by the partner in satisfaction of the transaction amount; and

(b) means for withdrawing the transaction amount from the escrow account and depositing the transaction amount into the partner account of the partner only following receipt of the second network communication.

5. The system of

claim 4

, further comprising means for processing a return transaction from the member to the partner, comprising:

(a) means for receiving a third network communication from the partner, the third network communication confirming receipt of returned goods and a return credit amount; and

(b) means for transferring a return payment from the partner account to the payment account of the member.

6. The system of

claim 4

, further comprising:

(a) means for linking the member to other members as auxiliary members, the member selectively identifying the other members by respective member identification numbers in combination with an item of demographic information; and

(b) wherein the means for notifying the partner of shipping data comprises means for substituting shipping information for an auxiliary member selected by the member.

7. The system of

claim 6

, further comprising means for delivery of a grant from the member to the auxiliary member, comprising means for holding the transaction amount in the escrow account until the auxiliary member communicates acceptance of the grant.

8. The system of

claim 7

, wherein the grant is of a gift certificate, the system further comprising:

(a) means for processing a fourth network communication from the partner in response to the auxiliary member selecting of partner performance covered at least in part by the gift certificate; and

(b) means for making an offset transfer from the escrow account to the partner account, the offset transfer being in an amount not greater than a value of the gift certificate and not greater than a value of the partner performance.

9. A method for secured escrowed network transactions between members having access to consumer computers and a company having partners, the method comprising:

(a) depositing payment of a transaction amount from a member payment account into an escrow account in response to a first network communication from a partner, the first network communication including a member identification number of the member, and a transaction amount; and

(b) notifying the partner of shipping data for the transaction only following payment of the transaction amount into the escrow account.

10. The method of

claim 9

, further comprising transferring the transaction amount from the escrow account into a partner account of the partner only following receipt of a second network communication confirming performance by the partner.