System for inexpensively executing online purchases

• US 20030163432A1
• Filed: 02/26/2002
• Published: 08/28/2003
• Est. Priority Date: 02/26/2002
• Status: Active Grant

• Current Assignee: Jr., Thomas Calvin Cannon
• Original Assignee: Jr., Thomas Calvin Cannon
• Inventors: Cannon,, Thomas Calvin Jr.
• Granted Patent: US 7,092,913 B2
• Time in Patent Office: Days
• US Class Current: 705/64
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/28 Pre-payment schemes, e.g. "pay before"
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• 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
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 50/188 Electronic negotiation

Abstract

The present invention is a system for making online purchases using electronic funds transfers from the buyers'"'"' bank account to the vendor'"'"'s bank account, enabled by an intermediate funds transfer from the buyer'"'"'s account to a holding account maintained by the buyer'"'"'s bank or a third party. The system is further enabled by the buyer'"'"'s bank acting as a portal to the Internet that pre-authenticates buyers, enforces security, and speeds the execution of online transactions.

Claims

1. A system for making online purchases comprising;

a customer interface device for connecting buyers to either a voice or data network,

a network of banks,

a collection of buyers each of which maintains a buyer account with at least one of the banks in the network of banks,

a collection of payees each of which maintains a payee account with at least one of the banks in the network of banks,

a network of holding accounts with at least one holding account residing in each of the banks in the network of banks,

an agent that directs the transfer of funds from a buyer account into a holding account residing in the same bank as the buyer account within the network of banks, and also directs the transfer of funds into a payee account from a holding account residing in the same bank as the payee account within the network of banks

2. A system according to claim 1, further comprising a means for authenticating buyers and payees and enforcing security

3. A system according to claim 2, further comprising a process for settling imbalances between the various holding accounts

4. A system according to claim 3, further comprising a means for delivering transaction logs to payees who maintain accounts within the network of banks,

5. A system according to claim 3 in which the process for settling imbalances between holding accounts consists of

first transferring all of the excess funds from those holding accounts having excess finds into the one holding account having the largest deficit,

and then transferring excess funds from the one holding account that formerly had the largest deficit into the remaining holding accounts having deficits, in the exact amounts needed to balance each holding account.