Method and system for facilitating merchant-initiated online payments

• US 20050228750A1
• Filed: 06/21/2004
• Published: 10/13/2005
• Est. Priority Date: 04/13/2004
• Status: Active Grant

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: eBay Inc.
• Inventors: Chu, Peter, Wu, William, Brown, Chris, Gunby, Carol, Veino, Thomas, Dang, Thach, Olliphant, Hugo, Chen, Steve, Su, Yi-Ling, Chastagnol, Franck
• Granted Patent: US 8,175,938 B2
• Time in Patent Office: Days
• US Class Current: 705/40
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/10 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 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/405 Establishing or using transaction specific rules
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes

Abstract

A method and system for facilitating merchant-initiated online payments are disclosed. According to one aspect of the present invention, a payment service provider'"'"'s server receives a user'"'"'s request, via a merchant'"'"'s server, to establish a merchant-initiated payment relationship or agreement. Accordingly, the payment service provider presents the user with options to customize the terms of the merchant-initiated payment agreement. After the agreement has been established and the terms customized, the merchant server communicates a merchant-initiated payment request to the pavement service provider for a transaction entered into with the user. The payment service provider'"'"'s server processes the payment request after verifying that processing the payment does not exceed the user-customized terms of the agreement.

Claims

1. A method to facilitate a merchant-initiated payment for an online transaction between a merchant and a user, the method comprising:

establishing a merchant-initiated payment relationship in response to receiving, from a user, a request to establish a merchant-initiated payment relationship;

after establishing the merchant-initiated payment relationship, receiving, from a merchant, a payment request associated with the transaction; and

processing the request for payment.

2. The method of claim 1, wherein the request to establish the merchant-initiated payment relationship includes terms defining the authority given to a payment service provider to make payments to a merchant on behalf of the user.

3. The method of claim 2, wherein a term included in the request to establish the merchant-initiated payment relationship identifies a particular product or service for which the payment service provider is authorized to make payments on behalf of the user under the merchant-initiated payment relationship.

4. The method of claim 2, wherein the payment request received from the merchant includes a request for payment under the terms of the merchant-initiated payment relationship.

5. The method of claim 4, wherein the payment request is generated by the merchant server in response to the user selecting the merchant-initiated payment relationship as a payment type for processing the transaction with the merchant via a website hosted by the merchant.

6. The method of claim 1, wherein the request to establish a merchant-initiated payment relationship includes a payment relationship identification that uniquely identifies the merchant-initiated payment relationship.

7. The method of claim 1, further including:

responsive to receiving the request to establish a merchant-initiated payment relationship from the user, presenting the user with an option to customize the terms of the merchant-initiated payment relationship; and

receiving user input indicating the user-customized terms of the merchant-initiated payment relationship.

8. The method of claim 7, wherein said presenting the user with an option to customize the terms of the payment relationship includes presenting the user with the option to modify a funding source for the merchant-initiated payment relationship.

9. The method of claim 8, wherein the user is presented with the option to select a preferred funding source for the merchant-initiated payment relationship from a list of funding sources available to the user.

10. The method of claim 8, wherein the user is presented with the option to disable a funding source for the merchant-initiated payment relationship.

11. The method of claim 8, wherein the user is presented with the option to select, from a list of funding sources available to the user, one or more funding sources to disable for the merchant-initiated payment relationship.

12. The method of claim 8, wherein the user is presented with the option to add and/or delete a funding source for the merchant-initiated payment relationship.

13. The method of claim 7, wherein said presenting the user with an option to customize the terms of the payment relationship includes presenting the user with the option to customize the authority given to the payment service provider to make payments to the merchant on behalf of the user.

14. The method of claim 13, wherein the user is presented with the option to set a maximum payment amount, for a particular time period, that the payment service provider is authorized to pay the merchant on behalf of the user.

15. The method of claim 13, wherein the user is presented with the option to set a maximum payment amount, for a single transaction, that the payment service provider is authorized to pay the merchant on behalf of the user.

16. The method of claim 13, wherein the user is presented with the option to set a maximum number of payment requests, for a particular time period, for which the payment service provider is authorized to make a payment to the merchant on behalf of the user.

17. A method to facilitate processing a payment for an online transaction, the method including:

receiving a payment request from a merchant server, the payment request including a unique identifier to identify a previously established merchant-initiated payment agreement defining the authority granted to a payment service provider to make payments to a merchant on behalf of a user;

verifying that processing the payment request does not exceed the authority granted under the merchant-initiated payment agreement; and

processing the payment request.

18. The method of claim 17, wherein verifying that processing the payment request does not exceed the authority granted under the merchant-initiated payment agreement, includes verifying that processing the payment would not exceed a maximum payment amount set by the user.

19. The method of claim 18, wherein said maximum payment amount set by the user is a maximum payment amount over a predetermined time period.

20. The method of claim 18, wherein said maximum payment amount set by the user is a maximum payment amount for a single transaction.

21. The method of claim 17, wherein verifying that processing the payment request does not exceed the authority granted under the merchant-initiated payment agreement, includes verifying that processing the payment would not exceed a maximum number of payment requests processed over a predetermined time period.

22. The method of claim 17, wherein verifying that processing the payment request does not exceed the authority granted under the merchant-initiated payment agreement, includes verifying that the payment request is in connection with a product or service for which the payment service provider is authorized to make a payment.

23. A system to facilitate a merchant-initiated payment for an online transaction between a merchant and a user, the system including at least one server configured to:

establish a merchant-initiated payment relationship in response to receiving, from the user, a request to establish a merchant-initiated payment relationship;

after establishing the merchant-initiated payment relationship, receive from a merchant, a payment request associated with the transaction; and

process the request for payment.

24. The system of claim 23, wherein the request to establish the merchant-initiated payment relationship includes terms defining the authority given to a payment service provider to make payments to a merchant on behalf of the user.

25. The system of claim 24, wherein a term included in the request to establish the merchant-initiated payment relationship identifies a particular product or service for which the payment service provider is authorized to make payments on behalf of the user under the merchant-initiated payment relationship.

26. The system of claim 24, wherein the payment request received from the merchant includes a request for payment under the terms of the merchant-initiated payment relationship.

27. The system of claim 26, wherein the payment request is generated by the merchant server in response to the user selecting the merchant-initiated payment relationship as a payment type for processing the transaction with the merchant via a website hosted by the merchant.

28. The system of claim 23, wherein the request to establish a merchant-initiated payment relationship includes a payment relationship identification that uniquely identifies the merchant-initiated payment relationship.

29. The system of claim 23, wherein the server is further configured to:

responsive to receiving the request to establish a merchant-initiated payment relationship from the user, present the user with an option to customize the terms of the merchant-initiated payment relationship; and

receive user input indicating the user-customized terms of the merchant-initiated payment relationship.

30. The system of claim 29, wherein the server is further configured to present the user with the option to modify a funding source for the merchant-initiated payment relationship.

31. The system of claim 30, wherein the user is presented with the option to select a preferred funding source for the merchant-initiated payment relationship from a list of funding sources available to the user.

32. The system of claim 30, wherein the user is presented with the option to disable a funding source for the merchant-initiated payment relationship.

33. The system of claim 30, wherein the user is presented with the option to select, from a list of funding sources available to the user, one or more funding sources to disable for the merchant-initiated payment relationship.

34. The system of claim 30, wherein the user is presented with the option to add and/or delete a funding source for the merchant-initiated payment relationship.

35. The system of claim 29, wherein the server is further configured to present the user with the option to customize the authority given to the payment service provider to make payments to the merchant on behalf of the user.

36. The system of claim 35, wherein the user is presented with the option to set a maximum payment amount, for a particular time period, that the payment service provider is authorized to pay the merchant on behalf of the user.

37. The system of claim 35, wherein the user is presented with the option to set a maximum payment amount, for a single transaction, that the payment service provider is authorized to pay the merchant on behalf of the user.

38. The system of claim 35, wherein the user is presented with the option to set a maximum number of payment requests, for a particular time period, for which the payment service provider is authorized to make a payment to the merchant on behalf of the user.

39. A system to facilitate processing a payment for an online transaction, the system including a server configured to:

receive a payment request from a merchant server, the payment request including a unique identifier to identify a previously established merchant-initiated payment agreement defining the authority granted to a payment service provider to make payments to a merchant on behalf of a user;

verify that processing the payment request does not exceed the authority granted under the merchant-initiated payment agreement; and

process the payment request.

40. The system of claim 39, wherein the server is further configured to verify that processing the payment would not exceed a maximum payment amount set by the user.

41. The system of claim 40, wherein said maximum payment amount set by the user is a maximum payment amount over a predetermined time period.

42. The system of claim 40, wherein said maximum payment amount set by the user is a maximum payment amount for a single transaction.

43. The system of claim 39, wherein the server is further configured to verify that processing the payment would not exceed a maximum number of payment requests processed over a predetermined time period.

44. The system of claim 39, wherein said server is further configured to verify that the payment request is in connection with a product or service for which the payment service provider is authorized to make a payment.

45. A system to facilitate a merchant-initiated payment for an online transaction between a merchant and a user, the system comprising:

a communications module to receive a request to establish a merchant-initiated payment relationship from a merchant server, the request to establish a merchant-initiated payment relationship including a unique identifier to identify the merchant-initiated payment relationship between the merchant and the user;

a management module to establish a merchant-initiated payment relationship in response to the request to establish a merchant-initiated payment relationship; and

a payment processing module to process a payment in response to the communications module receiving a payment request, the payment request including the unique identifier to identify the merchant-initiated payment relationship.

46. The system of claim 45, wherein the request to establish a merchant-initiated payment relationship and the payment request are digitally signed and encrypted by the merchant server, and the communications module further includes:

an authentication module to authenticate the request to establish the merchant-initiated payment relationship and the payment request; and

an encryption module to decrypt the request to establish the merchant-initiated payment relationship and the payment request.

47. The system of claim 45, wherein the management module further includes:

a funding source customization module to facilitate the customization of a funding source used to process a payment associated with the payment request.

48. The system of claim 47, wherein the funding source customization module facilitates the selection of a preferred funding source for the merchant-initiated payment relationship.

49. The system of claim 47, wherein the funding source customization module facilitates the disabling of a funding source for the merchant-initiated payment relationship.

50. The system of claim 47, wherein the funding source customization module facilitates the adding and/or deleting of a funding source for the merchant-initiated payment relationship.

51. The system of claim 47, wherein the management module further includes:

a payment customization module to facilitate customizing the terms of the merchant-initiated payment relationship including the authorization granted to a payment service provider to make payments on behalf of the user.

52. The system of claim 51, wherein the payment customization module facilitates the customization of a maximum payment amount for a predetermined time period.

53. The system of claim 51, wherein the payment customization module facilitates the customization of a maximum payment amount for a single payment request.

54. The system of claim 51, wherein the payment customization module facilitates the customization of a maximum number of payment requests for which a payment service provider is authorized to make a payment to the merchant on behalf of the user.

55. The system of claim 45, wherein the payment processing module includes:

an authorization verification module to verify that processing a payment associated with the payment request does not exceed the authority granted to the payment service provider by the user.

56. The system of claim 55, wherein the authorization verification module verifies that processing a payment would not exceed a maximum payment amount set by the user.

57. A system to facilitate a merchant-initiated payment for an online transaction between a merchant and a user, the system comprising:

means to receive a request to establish a merchant-initiated payment relationship from a merchant server, the request to establish a merchant-initiated payment relationship including a unique identifier to identify the merchant-initiated payment relationship between the merchant and the user;

means to establish a merchant-initiated payment relationship in response to the request to establish a merchant-initiated payment relationship; and

means to process a payment in response to the communications module receiving a payment request, the payment request including the unique identifier to identify the merchant-initiated payment relationship.

58. The system of claim 57, wherein the request to establish a merchant-initiated payment relationship and the payment request are digitally signed and encrypted by the merchant server, and the communications module further includes:

means to authenticate the request to establish the merchant-initiated payment relationship and the payment request; and

means to decrypt the request to establish the merchant-initiated payment relationship and the payment request.

59. The system of claim 57, wherein the means to establish a merchant-initiated payment relationship further includes:

means to facilitate the customization of a funding source used to process a payment associated with the payment request.

60. The system of claim 59, wherein the means to facilitate the customization of a funding source facilitates the selection of a preferred funding source for the merchant-initiated payment relationship.

61. The system of claim 59, wherein the means to facilitate the customization of a funding source facilitates the disabling of a funding source for the merchant-initiated payment relationship.

62. The system of claim 59, wherein the means to facilitate the customization of a funding source facilitates the adding and/or deleting of a funding source for the merchant-initiated payment relationship.

63. The system of claim 59, wherein the means to establish a merchant-initiated payment relationship further includes:

means to facilitate customizing the terms of the merchant-initiated payment relationship including the authorization granted to a payment service provider to make payments on behalf of the user.

64. The system of claim 63, wherein the means to facilitate customizing the terms of the merchant-initiated payment relationship facilitates the customization of a maximum payment amount for a predetermined time period.

65. The system of claim 63, wherein the means to facilitate customizing the terms of the merchant-initiated payment relationship facilitates the customization of a maximum payment amount for a single payment request.

66. The system of claim 63, wherein the means to facilitate customizing the terms of the merchant-initiated payment relationship facilitates the customization of a maximum number of payment requests for which a payment service provider is authorized to make a payment to the merchant on behalf of the user.

67. The system of claim 57, wherein the payment processing module includes:

an authorization verification module to verify that processing a payment associated with the payment request does not exceed the authority granted to the payment service provider by the user.

68. The system of claim 67, wherein the authorization verification module verifies that processing a payment would not exceed a maximum payment amount set by the user.