Method and system in electronic commerce for inspection-service-based release of escrowed payments

• US 20020073049A1
• Filed: 12/07/2000
• Published: 06/13/2002
• Est. Priority Date: 12/07/2000
• Status: Active Grant

• Current Assignee: International Business Machines Corporation
• Original Assignee: International Business Machines Corporation
• Inventors: Dutta, Rabindranath
• Granted Patent: US 6,865,559 B2
• Time in Patent Office: Days
• US Class Current: 705/75
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/085 involving remote charge determination or related payment systems
• CPC Class Codes: G06Q 20/0855 involving a third party
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 20/401 Transaction verification
• CPC Class Codes: G06Q 30/0185 Product, service or business identity fraud
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes

Abstract

A method, apparatus, system, or computer program product facilitates trustworthy electronic commerce by providing an inspection-service-based release of an escrowed payment for a transaction involving physical goods. An inspection service stands as an independent party at the onset of the transfer of goods between the buyer and the seller. In an attempt to reduce fraudulent behavior by the buyer or the seller, an inspection service inspects the goods, preferably at the point of shipment. A description of the goods has been previously stored in a transaction record that has been previously created within an escrow service. The inspection service may electronically retrieve the description of the goods from the escrow service. The inspection service then determines whether the description of the goods is acceptably similar to the actual condition or type of the goods and generates a certification if they are acceptable similar. The inspection service may then electronically notify the escrow service of the certification, and the escrow service may release the escrowed payment if the goods are accepted by the other party.

Claims

1. A method for processing a transaction in electronic commerce, the method comprising the steps of:

receiving a transaction message, wherein the transaction message comprises a description of goods to be transferred during a transaction between a seller of the goods and a buyer of the goods;

accepting payment for the goods from the buyer;

in response to accepting payment for the goods from the buyer, notifying the seller of payment for the goods;

holding the payment in escrow; and

receiving a certification message for the transaction after accepting payment for the goods from the buyer, wherein the certification message indicates that a physical state of the goods is acceptably similar to the description of the goods during an inspection of the goods by an entity other than the buyer or the seller.

2. The method of claim 1 further comprising:

receiving an acceptance message, wherein the acceptance message indicates an acceptance of goods received from the seller by the buyer; and

releasing payment for the goods to the seller.

3. The method of claim 1 further comprising:

receiving a rejection message, wherein the rejection message indicates a rejection of goods received from the seller by the buyer;

receiving a certification message, wherein the certification message indicates an inspection of the goods by an entity other than the buyer or the seller; and

returning payment for the goods to the buyer.

4. The method of claim 1 further comprising:

generating a transaction identifier for the transaction, wherein the transaction identifier provides an association between the transaction and electronic messages regarding the transaction.

5. A method for processing a transaction in electronic commerce, the method comprising the steps of:

receiving a transaction identifier for the transaction, wherein the transaction identifier provides an association between the transaction and an electronic description of goods to be transferred during the transaction between a seller of the goods and a buyer of the goods;

retrieving the electronic description of the goods associated with the transaction; and

generating a certification message for the transaction, wherein the certification message comprises the transaction identifier, and wherein the certification message indicates that a physical state of the goods is acceptably similar to the electronic description of the goods during an inspection of the goods by an entity other than the buyer or the seller.

6. The method of claim 5 further comprising:

sending the certification message to an electronic escrow service.

7. The method of claim 5 further comprising:

cryptographically protecting the certification message; and

sending the certification message to the seller.

8. An apparatus for processing a transaction in electronic commerce, the apparatus comprising:

first receiving means for receiving a transaction message, wherein the transaction message comprises a description of goods to be transferred during a transaction between a seller of the goods and a buyer of the goods;

accepting means for accepting payment for the goods from the buyer;

notifying means for notifying, in response to accepting payment for the goods from the buyer, the seller of payment for the goods;

holding means for holding the payment in escrow; and

second receiving means for receiving a certification message for the transaction after accepting payment for the goods from the buyer, wherein the certification message indicates that a physical state of the goods is acceptably similar to the description of the goods during an inspection of the goods by an entity other than the buyer or the seller.

9. The apparatus of claim 8 further comprising:

third receiving means for receiving an acceptance message, wherein the acceptance message indicates an acceptance of goods received from the seller by the buyer; and

releasing means for releasing payment for the goods to the seller.

10. The apparatus of claim 8 further comprising:

fourth receiving means for receiving a rejection message, wherein the rejection message indicates a rejection of goods received from the seller by the buyer;

fifth receiving means for receiving a certification message, wherein the certification message indicates an inspection of the goods by an entity other than the buyer or the seller; and

returning means for returning payment for the goods to the buyer.

11. The apparatus of claim 8 further comprising:

generating means for generating a transaction identifier for the transaction, wherein the transaction identifier provides an association between the transaction and electronic messages regarding the transaction.

13. The apparatus of claim 12 further comprising:

first sending means for sending the certification message to an electronic escrow service.

14. The apparatus of claim 12 further comprising:

cryptographic protecting means for cryptographically protecting the certification message; and

second sending means for sending the certification message to the seller.

16. The computer program product of claim 15 further comprising:

instructions for receiving an acceptance message, wherein the acceptance message indicates an acceptance of goods received from the seller by the buyer; and

instructions for releasing payment for the goods to the seller.

17. The computer program product of claim 15 further comprising:

instructions for receiving a rejection message, wherein the rejection message indicates a rejection of goods received from the seller by the buyer;

instructions for receiving a certification message, wherein the certification message indicates an inspection of the goods by an entity other than the buyer or the seller; and

instructions for returning payment for the goods to the buyer.

18. The computer program product of claim 15 further comprising:

instructions for generating a transaction identifier for the transaction, wherein the transaction identifier provides an association between the transaction and electronic messages regarding the transaction.

20. The computer program product of claim 19 further comprising:

instructions for sending the certification message to an electronic escrow service.

21. The computer program product of claim 19 further comprising:

instructions for cryptographically protecting the certification message; and

instructions for sending the certification message to the seller.

12. A apparatus for processing a transaction in electronic commerce, the apparatus comprising:

first receiving means for receiving a transaction identifier for the transaction, wherein the transaction identifier provides an association between the transaction and an electronic description of goods to be transferred during the transaction between a seller of the goods and a buyer of the goods;

retrieving means for retrieving the electronic description of the goods associated with the transaction; and

generating means for generating a certification message for the transaction, wherein the certification message comprises the transaction identifier, and wherein the certification message indicates that a physical state of the goods is acceptably similar to the electronic description of the goods during an inspection of the goods by an entity other than the buyer or the seller.

15. A computer program product on a computer readable medium for use in a data processing system for processing a transaction in electronic commerce, the computer program product comprising:

instructions for receiving a transaction message, wherein the transaction message comprises a description of goods to be transferred during a transaction between a seller of the goods and a buyer of the goods;

instructions for accepting payment for the goods from the buyer;

instructions for notifying, in response to accepting payment for the goods from the buyer, the seller of payment for the goods;

instructions for holding the payment in escrow; and

instructions for receiving a certification message for the transaction after accepting payment for the goods from the buyer, wherein the certification message indicates that a physical state of the goods is acceptably similar to the description of the goods during an inspection of the goods by an entity other than the buyer or the seller.

19. A computer program product on a computer readable medium for use in a data processing system for processing a transaction in electronic commerce, the computer program product comprising:

instructions for receiving a transaction identifier for the transaction, wherein the transaction identifier provides an association between the transaction and an electronic description of goods to be transferred during the transaction between a seller of the goods and a buyer of the goods;

instructions for retrieving the electronic description of the goods associated with the transaction; and

instructions for generating a certification message for the transaction, wherein the certification message comprises the transaction identifier, and wherein the certification message indicates that a physical state of the goods is acceptably similar to the electronic description of the goods during an inspection of the goods by an entity other than the buyer or the seller.