System and method for electronic transaction settlement

• US 20020169713A1
• Filed: 05/08/2001
• Published: 11/14/2002
• Est. Priority Date: 05/08/2001
• Status: Active Grant

• Current Assignee: ZAMA Innovations LLC
• Original Assignee: Advent IP LLC
• Inventors: Chiang, Matthew, Holmes-Kinsella, David, Chang, Jerry Shaw-Yau
• Granted Patent: US 7,941,368 B2
• 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 20/023 the neutral party being a clearing house
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/042 characterized in that the payment protocol involves at least one cheque
• 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 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/1085 involving automatic teller machines [ATMs]
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/322 Aspects of commerce using mobile devices [M-devices]
• 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 20/425 using two different networks, one for transaction and one for security confirmation
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

A method for electronic transaction settlement includes a customer providing an account identifier and contact information to a merchant, the merchant contacting a settlement house and transmitting the account identifier and a transaction amount, the settlement house contacting the customer, preferably via a mobile communication device. The customer then chooses a payment method such as a credit card and the settlement house contacts a credit provider for authorization. If the settlement house receives an authorization, the settlement house transmits it to the client, who approves the amount. The settlement house then completes the transaction with the credit provider and the merchant'"'"'s bank.

Claims

1. A method for settling an electronic transaction, comprising the steps of:

a customer providing a merchant with a customer identifier;

the merchant sending the customer identifier and a transaction amount to a settlement house;

the settlement house contacting the customer;

the customer selecting a payment method and transmitting the selected payment method to the settlement house;

the settlement house sending the transaction amount and customer identifier to a financial service provider associated with the payment method;

if the electronic transaction is approved by the financial service provider, sending an approval to the settlement house;

the settlement house sending the approval to the customer;

the customer approving the transaction amount; and

the settlement house finalizing the electronic transaction with the financial service provider and the merchant.

2. The method of claim 1, wherein the settlement house finalizes the electronic transaction with a merchant'"'"'s financial service provider.

3. The method of claim 1, wherein the financial service provider is a bank where the customer maintains an account.

4. The method of claim 1, wherein the financial service provider is a credit provider that issued a credit card to the customer.

5. The method of claim 1, wherein the customer identifier is an account number.

6. The method of claim 1, wherein the customer identifier is a customer name.

7. The method of claim 1, wherein the customer communicates with the settlement house via a mobile communication device.

8. The method of claim 7, wherein the mobile communication device is a mobile telephone.

9. The method of claim 7, wherein the mobile communication device is a handheld computing device.

10. The method of claim 1, wherein the payment method is a credit card.

11. The method of claim 1, wherein the payment method is a debit card.

12. The method of claim 1, further comprising the step of:

if the electronic transaction is not approved by the financial service provider, the customer selecting an alternate payment method.

14. The system of claim 13, wherein the mobile communication device is a mobile telephone.

15. The system of claim 13, wherein the mobile communication device is a handheld computing device.

16. The system of claim 13, wherein the financial service provider is a bank where the customer maintains an account.

17. The system of claim 13, wherein the financial service provider is a credit provider that issued a credit card to the customer.

19. The system of claim 18, wherein the customer selects a payment method and transmits the selected payment method to the settlement house via the mobile communication device.

20. The system of claim 18, wherein the settlement house includes the financial service provider.

13. A system for settlement of an electronic transaction, comprising:

a merchant;

a settlement house configured to communicate with the merchant;

a financial service provider configured to communicate with the settlement house; and

a mobile communication device operable to communicate with the settlement house such that a customer selects a payment method for the electronic transaction and transmits the selected payment method to the settlement house, the settlement house settling the transaction with the merchant and the financial service provider.

18. A system for settling an electronic transaction between a customer and a merchant, comprising:

a settlement house configured to communicate with the merchant and the customer, the settlement house communicating with the customer via a mobile communication device; and

a financial service provider that provides financial services to the customer and is configured to communicate with the settlement house.