Interbank process

• US 20040015436A1
• Filed: 05/29/2003
• Published: 01/22/2004
• Est. Priority Date: 09/06/2000
• Status: Active Grant

• Current Assignee: Edeposit Corp.
• Original Assignee: Edeposit Corp.
• Inventors: Understein, Norman
• Granted Patent: US 7,844,537 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 20/04 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 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 99/00 Subject matter not provided for in other groups of this subclass

Abstract

In transactions between a consumer and a merchant where a merchant requires a deposit for participation, a method and system are provided for intermediating the transaction (10). The system enables a consumer to secure the required deposit amount for the transaction with funds deposited in one of a bank account (14) or a special deposit account (16). Fees are generated based on a percentage of the deposit amount secured with the deposited funds and/or by providing an interest rate on funds deposited in the special deposit account (16) with a fixed spread from a bank interest rate. The system assures merchants that deposit funds have been reserved for a particular transaction, and enables consumers to participate in such transactions without requiring an actual transfer of funds.

Claims

1. A method of intermediating a transaction between a consumer and a merchant involving an exchange of monetary funds, the method comprising:

(a) receiving subscriptions from merchants and registering the merchants as member merchants;

(b) providing a vehicle for the member merchants to require a deposit amount for the transaction; and

(c) enabling a consumer to secure the deposit amount for the transaction with funds deposited in one of a bank account or a special deposit account.

2. A method according to claim 1, further comprising the step of generating fees based on a percentage of the deposit amount secured with the deposited funds.

3. A method according to claim 1, further comprising the step of generating fees by providing an interest rate on funds deposited in the special deposit account with a fixed spread from a bank interest rate.

4. A method according to claim 1, further comprising the step of receiving subscriptions from banks and registering the banks as member banks, wherein step (c) is practiced by linking the consumer'"'"'s bank account and reserving an amount of funds in the consumer'"'"'s bank account corresponding to the deposit amount.

5. A method according to claim 4, wherein the consumer'"'"'s bank account comprises at least one of a checking account, savings account, credit card, or letter of credit.

6. A method according to claim 1, wherein step (c) is practiced by placing a hold on the deposited funds in an amount corresponding to the deposit amount, wherein the deposited funds placed on hold are unavailable to the consumer.

7. A method according to claim 6, wherein upon completion of the transaction, the hold on the deposited funds is released.

8. A method according to claim 6, wherein upon completion of the transaction, the deposited funds placed on hold are transferred according to preset consumer preferences.

9. A method according to claim 1, wherein step (c) is practiced by providing an online link to a transaction intermediary through the consumer'"'"'s existing bank account.

10. A method of reserving funds in a transaction requiring a deposit between a consumer and a merchant, the method comprising holding consumer funds in one of an existing bank account or a special deposit account in an amount corresponding to a required deposit, and generating service fees (1) on a transaction basis in accordance with either an amount of funds deposited in the special deposit account or an average amount of funds held over a set period of time, or (2) based on a fixed spread between an interest rate offered by associated banks and an interest rate provided to the consumer.

11. A method according to claim 10, wherein the existing bank account comprises at least one of a checking account, savings account, credit card, or letter of credit.

12. A method according to claim 10, wherein the funds placed on hold are unavailable to the consumer.

13. A method according to claim 12, wherein upon completion of the transaction, the hold on the funds is released.

14. A method according to claim 12, wherein upon completion of the transaction, the funds placed on hold are transferred according to preset consumer preferences.

15. A method according to claim 10, further comprising providing an online link to a transaction intermediary through the consumer'"'"'s existing bank account.

16. A system for intermediating a transaction between a consumer and a merchant involving an exchange of monetary funds, the system comprising:

means for receiving subscriptions from merchants and registering the merchants as member merchants;

means for providing a vehicle for the member merchants to require a deposit amount for the transaction; and

means for enabling a consumer to secure the deposit amount for the transaction with funds deposited in one of a bank account or a special deposit account.

17. A system for reserving funds in a transaction requiring a deposit between a consumer and a merchant, the system comprising means for holding consumer funds in one of an existing bank account or a special deposit account in an amount corresponding to a required deposit, and means for generating service fees (1) on a transaction basis in accordance with either an amount of funds deposited in the special deposit account or an average amount of funds held over a set period of time, or (2) based on a fixed spread between an interest rate offered by associated banks and an interest rate provided to the consumer.