System and method for settling trades in a digital merchant exchange

• US 20040044620A1
• Filed: 02/16/2001
• Published: 03/04/2004
• Est. Priority Date: 02/16/2001
• Status: Active Grant

• Current Assignee: ASF Financial Corporation
• Original Assignee: ASF Financial Corporation
• Inventors: Iversen, Jorn
• Granted Patent: US 7,363,270 B2
• Time in Patent Office: Days
• US Class Current: 705/40
• 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 30/06 Buying, selling or leasing transactions
• 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

Abstract

A system and method for settling trades in a digital merchant exchange includes a buyer, a seller, a transaction agent, a network and a capital pool. The buyer and seller communicate through the network to agree on a contract. When the goods are received or the services are performed, the buyer issues a negotiable instrument that is received by the transaction agent. The transaction agent communicates with the buyer, seller, and capital pool through the network and facilitates the settlement of the trade. The system may call upon the capital pool to provide liquidity so that the system can issue payment to the seller at a time prior to the maturity date of the negotiable instrument.

Claims

1. An apparatus for providing liquidity to a seller who has provided value to a buyer, said apparatus comprising:

a receiving module configured to receive a negotiable instrument from the buyer, said negotiable instrument having a maturity date; and

a calling module configured to call upon a capital pool to purchase an interest in said negotiable instrument and to send a portion of the value of said negotiable instrument to the seller prior to said maturity date, whereby said.

2. The apparatus as defined in claim 1 further comprising a notification configured to be received from the buyer by said receiving module.

3. The apparatus as defined in claim 2 further comprising a verification module configured to verify that said negotiable instrument and said notification are responsive to the receipt of the value by the buyer.

4. The apparatus as defined in claim 1 wherein said negotiable instrument is a promissory note.

5. The apparatus as defined in claim 4 wherein said promissory note is certified.

6. The apparatus as defined in claim 5 wherein said promissory note is certified electronically.

7. The apparatus as defined in claim 6 wherein said electronically certified promissory note is certified digitally.

8. The apparatus as defined in claim 2 further comprising storage configured to store said negotiable instrument and said notification.

9. The apparatus as defined in claim 1 further comprising a collection module configured to collect the value of said negotiable instrument from the buyer.

10. The apparatus as defined in claim 9 wherein said collection module is configured to receive an order to pay.

11. The apparatus as defined in claim 10 wherein said order to pay is a bank draft.

12. The apparatus as defined in claim 10 wherein said collection module is configured to verify that said order to pay is for the value of said negotiable instrument.

13. The apparatus as defined in claim 12 wherein said collection module is configured to distribute the value of said negotiable instrument as received from said bank draft to interested holders of said negotiable instrument.

14. A method for providing liquidity to a seller who has provided value to a buyer, said method comprising the steps of:

receiving a negotiable instrument from the buyer, said negotiable instrument having a maturity date; and

calling upon a capital pool to purchase an interest in said negotiable instrument such that the seller is sent a portion of the value of said negotiable instrument prior to said maturity date.

15. The method as defined in claim 14 further comprising the step of receiving a notification from the buyer.

16. The method as defined in claim 15 further comprising the step of verifying that said negotiable instrument and said notification are responsive to the receipt of the value.

17. The method as defined in claim 14 wherein said negotiable instrument is a promissory note.

18. The method as defined in claim 17 wherein said promissory note is certified.

19. The method as defined in claim 18 wherein said promissory note is certified electronically.

20. The method as defined in claim 19 wherein said electronically certified promissory note is certified digitally.

21. The method as defined in claim 15 further comprising the step of storing said negotiable instrument and said notification.

22. The method as defined in claim 14 further comprising the step of collecting the value of said negotiable instrument from the buyer.

23. The method as defined in claim 22 wherein said collecting step is configured to receive an order to pay.

24. The method as defined in claim 23 wherein said order to pay is a bank draft.

25. The method as defined in claim 23 wherein said collecting step verifies said order to pay is for the value of said negotiable instrument.

26. The method as defined in claim 25 further comprising the step of distributing the value of said negotiable instrument received from said bank draft to interested holders of said negotiable instrument.

27. An apparatus for distributing payment to a seller providing value for a contract, said apparatus comprising:

a negotiable instrument;

a notification comprising a receipt of the value from the seller;

a verification module configured to verify that said negotiable instrument and said notification are responsive to the value provided by the seller;

a certification module configured to present said verified negotiable instrument to the seller prior to the maturity date of said negotiable instrument; and

an order to pay the value of said certified negotiable instrument on the maturity date.

28. The apparatus as defined in claim 27 wherein said negotiable instrument is a promissory note.

29. The apparatus as defined in claim 28 wherein said promissory note is certified.

30. The apparatus as defined in claim 29 wherein said promissory note is certified electronically.

31. The apparatus as defined in claim 30 wherein said electronically certified promissory note is certified digitally.

32. The apparatus as defined in claim 27 further comprising a network, wherein said certification module is configured to present said verified negotiable instrument to the seller through said network.

33. The apparatus as defined in claim 32, wherein said network is the Internet.

34. The apparatus as defined in claim 27 wherein said order to pay is a bank draft.

35. A method of distributing payment to a seller providing value for a contract, said method comprising the steps of:

generating a negotiable instrument;

notifying the seller that the value has been received in a notification;

verifying that said negotiable instrument is responsive to the receipt of the value;

presenting said verified negotiable instrument and said notification to the seller prior to the maturity date of said verified negotiable instrument; and

generating an order to pay the seller the value of said verified negotiable instrument.

36. The method as defined in claim 35 wherein said negotiable instrument is a promissory note.

37. The method as defined in claim 36 wherein said promissory note is certified.

38. The method as defined in claim 37 wherein said promissory note is certified electronically.

39. The method as defined in claim 38 wherein said electronically certified promissory note is certified digitally.

40. The method as defined in claim 35 wherein said presenting step includes a network, wherein said verified negotiable instrument is presented to the seller through said network.

41. The method as defined in claim 40 wherein said network is the Internet.

42. The method as defined in claim 35 wherein said order to pay is a bank draft.

43. An apparatus for extending the payment term to a buyer receiving value from a seller, said apparatus comprising:

a receiving module configured to receive a negotiable instrument from the buyer, said negotiable instrument having an extended maturity date;

a certification module configured to certify that said negotiable instrument is responsive to receipt of the value; and

a liquidity module configured to liquidate said negotiable instrument such that the seller receives funds before said maturity date of said negotiable instrument, whereby said maturity date can be later than said maturity date might be without said liquidity module.

44. The apparatus as defined in claim 43 further comprising storage configured to store said negotiable instrument.

45. The apparatus as defined in claim 43 wherein said negotiable instrument is received over a network.

46. The apparatus as defined in claim 45 wherein said network is the Internet.

47. The apparatus as defined in claim 46 wherein said negotiable instrument is a promissory note.

48. The apparatus as defined in claim 47 wherein said promissory note is certified.

49. The apparatus as defined in claim 48 wherein said promissory note is certified electronically.

50. The apparatus as defined in claim 49 wherein said electronically certified promissory note is certified digitally.

51. A method for extending the payment term to a buyer receiving value from a seller, said method comprising the steps of:

receiving a negotiable instrument from the buyer, said negotiable instrument having an extended maturity date;

certifying that said negotiable instrument is responsive to receipt of the value; and

liquidating said negotiable instrument such that the seller receives funds before said maturity date of said negotiable instrument, whereby said maturity date can be later than said maturity date might be without said liquidity module.

52. The method as defined in claim 51 further comprising the step of storing said negotiable instrument.

53. The method as defined in claim 51 wherein said negotiable instrument is received over a network.

54. The method as defined in claim 53 wherein said network is the Internet.

55. The method as defined in claim 51 wherein said negotiable instrument is a promissory note.

56. The method as defined in claim 55, wherein said promissory note is certified.

57. The method as defined in claim 56, wherein said promissory note is certified electronically.

58. The method as defined in claim 57, wherein said electronically certified promissory note is certified digitally.

64. The apparatus as defined in claim 51 wherein said promissory note is certified.

65. The apparatus as defined in claim 64 wherein said promissory note is certified electronically.

66. The apparatus as defined in claim 65 wherein said electronically certified promissory note is certified digitally.

59. An apparatus for providing liquidity to a seller having provided value to a buyer, said apparatus comprising:

a negotiable instrument issued by the buyer and received by the seller for the consideration, said negotiable instrument having a maturity date on a future date and being redeemable from the buyer;

a purchase of said negotiable instrument from the seller; and

an amount of money tendered to the seller such that said amount of money is a portion of the value of said negotiable instrument.

60. The apparatus as defined in claim 59 further comprising storage configured to store said negotiable instrument.

61. The apparatus as defined in claim 59 wherein said negotiable instrument is received over a network.

62. The apparatus as defined in claim 61 wherein said network is the Internet.

63. The apparatus as defined in claim 59 wherein said negotiable instrument is a promissory note.

67. A method for providing liquidity to a seller having provided consideration to a buyer, said method comprising the steps of:

transferring a negotiable instrument issued by the buyer to the seller for the consideration, said negotiable instrument having a maturity date on a future date and being redeemable from the buyer;

purchasing said negotiable instrument from the seller; and

tendering an amount of money to the seller such that said amount of money is a portion of the value of said negotiable instrument.

68. The method as defined in claim 67 further comprising the step of storing said negotiable instrument.

69. The method as defined in claim 67 wherein said negotiable instrument is received over a network.

70. The method as defined in claim 69 wherein said network is the Internet.

71. The method as defined in claim 67 wherein said negotiable instrument is a promissory note.

72. The method as defined in claim 71 wherein said promissory note is certified.

73. The method as defined in claim 72 wherein said promissory note is certified electronically.

74. The method as defined in claim 73 wherein said electronically certified promissory note is certified digitally.