System and method for effecting a real-time payment for an item won on an electronic auction

• US 20020095376A1
• Filed: 09/05/2001
• Published: 07/18/2002
• Est. Priority Date: 01/17/2001
• Status: Active Grant

• Current Assignee: XPRT Ventures LLC
• Original Assignee: XPRT Ventures LLC
• Inventors: Likourezos, George, Scaturro, Michael A.
• Granted Patent: US 7,567,937 B2
• Time in Patent Office: Days
• US Class Current: 705/40
• 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 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/14 specially adapted for billing systems
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

The invention provides a computerized electronic auction payment system and method for effecting a real-time payment for an item won in an electronic auction by setting up and maintaining electronic auction payment accounts for prospective bidders and sellers. In one embodiment, upon being deemed as a winning bidder, the winning bidder accesses a payment page, enters the total amount of funds to be transferred to the seller, and authorizes the computerized electronic auction payment system to effect a real-time payment by debiting his, i.e., the winning bidder'"'"'s, respective electronic auction payment account and crediting the electronic auction payment account of the seller, and/or another account specified by the seller. In an alternate embodiment, the prospective bidder authorizes the computerized electronic auction payment system to effect a real-time payment to the seller upon the prospective bidder being deemed the winning bidder (i.e., immediately following the conclusion of the auction). That is, without the winning bidder having to access the payment page. Funds can be automatically transferred to the electronic auction payment accounts on a periodic basis and after funds are deducted from the payment accounts to replenish the funds deducted from the payment accounts. A fee can be charged by an operator of the computerized electronic auction payment system for automatically transferring funds to the electronic auction payment accounts and for automatically replenishing the payment accounts.

Claims

1. A method for automatically effecting payment for a user of an electronic auction web site maintained by an electronic auction system, said method comprising the steps of:

receiving authorization from the user prior to the beginning of an electronic auction provided by the electronic auction web site to execute an automatic payment method after the conclusion of the electronic auction, wherein the automatic payment method includes at least automatically deducting funds from a payment account corresponding to the user of the electronic auction web site; and

executing the automatic payment method for the user after the conclusion of the electronic auction, if the user has provided authorization prior to the beginning of the electronic auction for executing the automatic payment method, the executing step comprising the steps of;

automatically deducting funds from the payment account corresponding to the user of the electronic auction web site; and

automatically transferring at least a portion of the deducted funds into at least one account for automatically effecting payment for the user of the electronic auction web site.

2. The method according to claim 1, further comprising the step of accessing the user'"'"'s payment account on a periodic basis for at least withdrawing funds from therein and transferring the withdrawn funds to an account corresponding to an operator of the electronic auction system.

3. The method according to claim 1, wherein the at least one account corresponds to an operator of the electronic auction system.

4. The method according to claim 1, wherein the deducted funds include at least fees payable to an operator of an electronic auction payment system in operative communication with the electronic auction system.

5. The method according to claim 1, wherein the steps of automatically deducting funds from the payment account corresponding to the user and automatically transferring at least the portion of the deducted funds into the at least one account occur in real-time.

6. The method according to claim 1, wherein the at least one account corresponds to at least a payment account corresponding to another user of the electronic auction web site.

7. The method according to claim 1, wherein the at least one account includes an account corresponding to an operator of the electronic auction system and a payment account corresponding to another user of the electronic auction web site.

8. The method according to claim 1, further comprising the steps of:

determining if there are sufficient funds in the payment account corresponding to the user to effect payment prior to the step of executing the automatic payment method; and

loaning funds to effect payment, if there are not sufficient funds in the payment account corresponding to the user of the electronic auction web site.

9. The method according to claim 1, further comprising the step of automatically replenishing the payment account corresponding to the user after the step of automatically deducting funds from the payment account.

10. The method according to claim 9, further comprising the step of charging a fee for automatically replenishing the payment account corresponding to the user of the electronic auction web site.

11. A method for automatically effecting payment for a user of an electronic auction web site maintained by an electronic auction system to an operator of an electronic auction payment system in operative communication with the electronic auction system, said method comprising the steps of:

receiving payment account information corresponding to at least one payment account of the user prior to the user bidding in or initiating an electronic auction via the electronic auction web site;

determining if funds are owed by the user to the operator of the electronic auction payment system;

automatically withdrawing funds from the at least one payment account corresponding to the user of the electronic auction web site; and

executing an automatic payment method by automatically transferring the withdrawn funds to an account corresponding to the electronic auction payment system, if it is determined that funds are owed by the user to the operator of the electronic auction payment system.

12. The method according to claim 11, wherein the at least one payment account is selected from the group consisting of a bank account, an investment account, and a corporate account.

13. The method according to claim 11, further comprising the step of storing the payment account information within a database of the electronic auction payment system.

14. The method according to claim 11, wherein the step of automatically withdrawing funds from the at least one payment account occurs on a periodic basis.

15. The method according to claim 11, wherein the step of automatically withdrawing funds from the at least one payment account occurs daily, weekly or monthly.

16. The method according to claim 11, further comprising the steps of:

receiving authorization from the user to automatically withdraw funds from the at least one payment account prior to the step of automatically withdrawing funds from the at least one payment account; and

receiving authorization from the user to execute the automatic payment method prior to the step of executing the automatic payment method.

17. The method according to claim 11, wherein the step of automatically withdrawing funds from the at least one payment account occurs according to a user-specified basis.

18. The method according to claim 11, further comprising the step of preventing the user from using the electronic auction web site, if funds greater than a predetermined amount are owed by the user to the operator of the electronic auction payment system.

19. The method according to claim 11, further comprising the step of automatically transferring the withdrawn funds to a payment account corresponding to the user prior to the step of executing the automatic payment method.

20. The method according to claim 11, further comprising the step of charging a fee by the operator of the electronic auction payment system for automatically transferring the withdrawn funds to the account corresponding to the electronic auction payment system.

21. A method for automatically effecting at least one payment for a user of an electronic auction web site maintained by an electronic auction system, said method comprising the steps of:

receiving payment account information corresponding to at least one payment account corresponding to the user of the electronic auction web site;

receiving authorization from the user to periodically deduct funds from the at least one payment account;

periodically deducting funds from the at least one payment account corresponding to the user of the electronic auction web site; and

executing an automatic payment method by automatically transferring at least a portion of the periodically deducted funds into at least one account for automatically effecting the at least one payment for the user of the electronic auction web site.

22. The method according to claim 21, wherein the step of periodically deducting funds from the at least one payment account occurs daily, weekly or monthly.

23. The method according to claim 21, wherein the at least one payment account is selected from the group consisting of a bank account, an investment account, and a corporate account.

24. The method according to claim 21, wherein the step of periodically deducting funds from the at least one payment account occurs according to a user-specified basis.

25. The method according to claim 21, wherein the at least one account is selected from the group consisting of a payment account corresponding to an operator of an electronic auction payment system in operative communication with the electronic auction system, and a payment account corresponding to a seller of an auction item via the electronic auction web site.

26. The method according to claim 21, further comprising the step of charging a fee for periodically deducting funds from the at least one payment account corresponding to the user of the electronic auction web site.

28. The method according to claim 27, wherein the step of periodically withdrawing funds occurs daily, weekly or monthly.

29. The method according to claim 27, wherein the step of periodically withdrawing funds from the payment account occurs according to a user-specified basis.

30. The method according to claim 27, further comprising the step of automatically transferring the withdrawn funds to another payment account corresponding to the user prior to the step of executing the automatic payment method.

27. A method for automatically effecting payment to an operator of an electronic auction system, said method comprising the steps of:

periodically withdrawing funds from a payment account corresponding to a user of the electronic auction system; and

executing an automatic payment method by automatically transferring at least a portion of the periodically withdrawn funds to a system account corresponding to the electronic auction system to effect payment to the operator of the electronic auction system.

31. A method for automatically effecting payment to an operator of an electronic auction system, said method comprising the steps of:

withdrawing funds on a monthly basis from a payment account corresponding to a user of the electronic auction system; and

executing an automatic payment method by automatically transferring at least a portion of the withdrawn funds to a system account corresponding to the electronic auction system to effect payment to the operator of the electronic auction system.

32. A system for automatically effecting payment for a user of an electronic auction web site maintained by an electronic auction system, said system for automatically effecting payment comprising:

means for receiving authorization from the user prior to the beginning of an electronic auction provided by the electronic auction web site to execute an automatic payment method after the conclusion of the electronic auction, wherein the automatic payment method includes at least automatically deducting funds from a payment account corresponding to the user of the electronic auction web site; and

means for executing the automatic payment method for the user after the conclusion of the electronic auction, if the user has provided authorization prior to the beginning of the electronic auction for executing the automatic payment method, the means for executing the automatic payment method comprising;

means for automatically deducting funds from the payment account corresponding to the user of the electronic auction web site; and

means for automatically transferring at least a portion of the deducted funds into at least one account for automatically effecting payment for the user of the electronic auction web site.

33. The system according to claim 32, further comprising means for accessing the user'"'"'s payment account on a periodic basis for at least withdrawing funds from therein and transferring the withdrawn funds to an account corresponding to an operator of the electronic auction system.

34. The system according to claim 32, wherein the at least one account corresponds to an operator of the electronic auction system.

35. The system according to claim 32, wherein the deducted funds include at least fees payable to an operator of an electronic auction payment system in operative communication with the electronic auction system.

36. The system according to claim 32, wherein the means for automatically deducting funds from the payment account corresponding to the user of the electronic auction web site deducts the funds in real-time, and wherein the means for automatically transferring at least the portion of the deducted funds into the at least one account transfers at least the portion of the deducted funds in real-time.

37. The system according to claim 32, wherein the at least one account corresponds to at least a payment account corresponding to another user of the electronic auction web site.

38. The system according to claim 32, wherein the at least one account includes an account corresponding to an operator of the electronic auction system and a payment account corresponding to another user of the electronic auction web site.

39. The system according to claim 32, further comprising:

means for determining if there are sufficient funds in the payment account corresponding to the user to effect payment prior to activating the means for executing the automatic payment method; and

means for loaning funds to effect payment, if there are not sufficient funds in the payment account corresponding to the user.

40. The system according to claim 32, further comprising means for automatically replenishing the payment account corresponding to the user after automatically deducting funds from the payment account.

41. The system according to claim 40, further comprising the step of charging a fee for automatically replenishing the payment account corresponding to the user.

42. A system for automatically effecting payment to an operator of an electronic auction system, said system for automatically effecting payment comprising:

means for periodically withdrawing finds from a payment account corresponding to a user of the electronic auction system; and

means for executing an automatic payment method by automatically transferring at least a portion of the periodically withdrawn finds to a system account corresponding to the electronic auction system to effect payment to the operator of the electronic auction system.

43. The system according to claim 42, wherein the means for periodically withdrawing funds withdraws funds from the payment account daily, weekly or monthly.

44. The system according to claim 42, wherein the means for periodically withdrawing funds withdraws funds from the payment account according to a user-specified basis.

45. The system according to claim 42, further comprising means for automatically transferring the withdrawn funds to another payment account corresponding to the user prior to activating the means for executing the automatic payment method.

47. The method according to claim 46, wherein the preset time period is one of a day, a week, or a month.

48. The method according to claim 46, wherein the preset time period is determined by the user.

49. The method according to claim 46, further comprising the step of transferring the withdrawn funds to another payment account corresponding to the user prior to the step of using at least the portion of the withdrawn and transferred funds for automatically effecting payment for the user of the electronic auction web site.

46. A method for automatically effecting payment for a user of an electronic auction web site maintained by an electronic auction system, said method comprising the steps of:

receiving authorization from the user to automatically withdraw and transfer funds after a preset time period from a payment account corresponding to the user of the electronic auction web site;

determining whether the preset time period has lapsed;

automatically withdrawing and transferring funds if the preset time period has lapsed; and

using at least a portion of the withdrawn and transferred funds for automatically effecting payment for the user of the electronic auction web site.

50. A method for automatically effecting payment for a winning bidder of an electronic auction conducted via an electronic auction web site, the method comprising the steps of:

setting up a payment account corresponding to a prospective winning bidder, the payment account configured for storing funds therein; and

receiving at least one input from the prospective winning bidder prior to the conclusion of the electronic auction to execute an automatic payment method after the conclusion of the electronic auction if the prospective winning bidder is declared the winning bidder by automatically deducting funds from the payment account corresponding to the winning bidder and automatically transferring the deducted funds to at least one account to effect payment for the winning bidder.

51. The method according to claim 50, wherein the at least one account corresponds to an operator of the electronic auction web site.

52. The method according to claim 50, wherein the at least one account corresponds to a seller of at least one auction item via the electronic auction.

53. The method according to claim 50, wherein the at least one account includes an account corresponding to an operator of the electronic auction web site and an account corresponding to a seller of at least one auction item via the electronic auction.

54. The method according to claim 50, wherein the automatic payment method is executed in real-time.