System and method for third-party payment processing

• US 20020016765A1
• Filed: 07/10/2001
• Published: 02/07/2002
• Est. Priority Date: 07/11/2000
• Status: Abandoned Application

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Inventors: Sacks, David
• Application Number:
  US09/901,962
• Publication Number:
  US 20020016765A1
• Time in Patent Office: Days
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/385 using an alias or single-use codes

Abstract

A system and method for handling a payment between a buyer/payor to a seller/payee at a third-party site. The buyer is redirected from the seller to the third-party payment processor to process payment for an electronic transaction. Details of the transaction may be received with the buyer'"'"'s connection. The buyer may be electrically disconnected from the seller to prevent financial or private data from being passed to the seller. The third-party payment processor establishes an account for the buyer if the buyer does not have an account. The buyer'"'"'s account may be funded by a credit card, debit card or bank account, and may be identified with an electronic mail address. The third-party payment processor transfers payment from the buyer to the seller (e.g., through a seller account with the payment processor). The buyer may be redirected to the seller after completion or cancellation of the payments.

Claims

1. A method of processing an electronic payment from a payor to a payee at a third party, comprising:

receiving at the third party a first connection from the payor, wherein a second connection between the payor and the payee is terminated when said first connection is received;

creating an account for the payor with the third party for facilitating electronic payments, if said account does not exist; and

electronically transferring funds from the payor to the payee.

2. The method of claim 1, further comprising, prior to said receiving, facilitating the generation of computer readable instructions for replacing said second connection with said first connection.

3. The method of claim 2, wherein said facilitating comprises:

receiving a connection at the third party from the payee;

receiving one or more details of a possible electronic transaction between the payee and a payor; and

generating said computer readable instructions.

4. The method of claim 2, wherein said facilitating comprises:

providing the payee with required parameters for said computer readable instructions;

wherein said computer readable instructions are configured for use on a payee computer system during said second connection.

5. The method of claim 1, further comprising receiving, with said first connection, details of an electronic transaction between the payor and the payee.

6. The method of claim 5, wherein said details include a network address to forward the payor to after said funds are electronically transferred.

7. The method of claim 5, wherein said details include a network address to forward the payor to if the payor cancels said electronic transfer of funds.

8. The method of claim 5, wherein said details include an identifier of a payee account with the third party.

9. The method of claim 1, further comprising redirecting the payor to a network address identified by the payee.

10. The method of claim 1, wherein said creating comprises:

receiving a unique identifier of the payor; and

receiving payment mechanism information from the payor.

11. The method of claim 10, wherein said unique identifier is an electronic mail address.

12. The method of claim 10, wherein said unique identifier is a telephone number.

13. The method of claim 10, wherein said payment mechanism is a credit card.

14. The method of claim 10, wherein said payment mechanism is a debit card.

15. The method of claim 10, wherein said payment mechanism is a bank account.

16. The method of claim 1, further comprising maintaining a shopping cart at the third party for the payor.

17. The method of claim 16, wherein said shopping cart is configured to track the payor'"'"'s transactions with multiple payees.

18. The method of claim 1, wherein said account is identified by an electronic mail address.

19. A computer readable storage medium storing instructions that, when executed by a computer, cause the computer to perform a method of processing an electronic payment from a payor to a payee at a third party, the method comprising:

receiving at the third party a first connection from the payor, wherein a second connection between the payor and the payee is terminated when said first connection is received;

creating an account for the payor with the third party for facilitating electronic payments, if said account does not exist; and

electronically transferring funds from the payor to the payee.

20. A computer-implemented method of processing a payment from a buyer for a seller at a third-party payment processor, comprising:

receiving a connection from a buyer at a payment processor, wherein said connection replaces a previous connection between the buyer and a seller during which the buyer and the seller arranged an electronic transaction;

receiving one or more criteria of the electronic transaction, including a first value to be paid by the buyer;

verifying with the buyer a source of said first value;

initiating receipt of said first value from the buyer;

initiating payment of a second value to the seller; and

reconnecting the buyer to the seller if said one or more criteria include a destination for said reconnection.

21. The method of claim 20, further comprising:

prior to said receiving a connection, generating a set of computer readable instructions enabling said replacement of the connection between the buyer and the seller;

wherein said computer readable instructions are configured for use on a buyer computer system during said connection between the buyer and the seller.

22. The method of claim 20, further comprising establishing an account for the buyer for electronically transferring value, if said account does not exist.

23. The method of claim 22, wherein said account is identified by an electronic mail address of the buyer.

24. The method of claim 22, wherein said source of said first value is said account.

25. The method of claim 22, wherein said source of said first value is a credit card of the buyer.

26. The method of claim 22, wherein said source of said first value is a bank account of the buyer.

27. The method of claim 20, further comprising transmitting a receipt to the buyer.

30. The payment processor of claim 29, further comprising a payee interface configured to facilitate generation of computer readable instructions for redirecting the payor from the payee to the payment processor.

31. The payment processor of claim 29, further comprising a database configured to store a shopping cart for the payor.

28. A computer readable storage medium storing instructions that, when executed by a computer, cause the computer to perform a computer-implemented method of processing a payment from a buyer for a seller at a third-party payment processor, the method comprising:

receiving a connection from a buyer at a payment processor, wherein said connection replaces a previous connection between the buyer and a seller during which the buyer and the seller arranged an electronic transaction;

receiving one or more criteria of the electronic transaction, including a first value to be paid by the buyer;

verifying with the buyer a source of said first value;

initiating receipt of said first value from the buyer;

initiating payment of a second value to the seller; and

reconnecting the buyer to the seller if said one or more criteria include a destination for said reconnection.

29. A payment processor for processing a payment from a payor to a payee, comprising:

a communication interface configured to receive a connection from a payor and details of an electronic transaction between the payor and a payee;

a payor interface configured to verify one or more of said details with the payor;

a registration module configured to create an account for the payor for electronically transferring value; and

a payment module configured to initiate a first payment from the payor and a second payment to the payee;

wherein said communication interface is further configured to connect the payor to the payee.