Method and system for merchant indemnification for online financial transactions
First Claim
1. A method for making an irrevocable advance of funds to an end merchant by a requesting client without waiting for a successful settlement of an electronic fund transfer from the requesting client, the method comprising:
- providing an intermediary service having a server system in electronic communication with the client, the end merchant, and an intermediate account;
receiving at the intermediary service an request from the requesting client to transfer an amount of requested funds to the end merchant from a source account;
irrevocably committing at least a permitted amount of the requested amount of the requested funds by initiating an first electronic fund transfer from the intermediate account as transferred funds which are transferred to the end merchant; and
thereafter initiating a settlement transaction including submitting a second electronic fund transfer for seeking to recover at least the permitted amount of the requested funds from the source account to the intermediary account.
1 Assignment
0 Petitions
Accused Products
Abstract
A method and system enable indemnification of funds transferred electronically to an end merchant. An intermediary service having a server in communication with an automated clearinghouse system and having a client interface provides an online account for committing an irrevocable transfer of funds to the merchant account of a participating end merchant at the request of a client. Preferably, the intermediary verifies the client'"'"'s identify and authorization to access the client'"'"'s source account. In particular, the intermediary can provide an irrevocable transfer of funds to an end merchant substantially instantly upon the request of the payor client.
18 Citations
19 Claims
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1. A method for making an irrevocable advance of funds to an end merchant by a requesting client without waiting for a successful settlement of an electronic fund transfer from the requesting client, the method comprising:
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providing an intermediary service having a server system in electronic communication with the client, the end merchant, and an intermediate account;
receiving at the intermediary service an request from the requesting client to transfer an amount of requested funds to the end merchant from a source account;
irrevocably committing at least a permitted amount of the requested amount of the requested funds by initiating an first electronic fund transfer from the intermediate account as transferred funds which are transferred to the end merchant; and
thereafter initiating a settlement transaction including submitting a second electronic fund transfer for seeking to recover at least the permitted amount of the requested funds from the source account to the intermediary account. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15)
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16. A method for making an irrevocable advance of funds to an end merchant by a requesting client without waiting for a successful settlement of an electronic fund transfer from the requesting client, the method comprising:
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providing an intermediary service having a server system in electronic communication with the client, the end merchant, and an intermediate account;
receiving at the intermediary service an request from the requesting client to transfer an amount of requested funds to the end merchant from a source account;
substantially contemporaneous with the request, obtaining from the requesting client an assertion of the requesting client'"'"'s authorization to transfer funds from the source account and limiting a permitted amount of the requested funds to be transferred based on the strength of the client'"'"'s assertion, and irrevocably committing the permitted amount of the requested funds by initiating an first electronic fund transfer from the intermediate account as transferred funds which are transferred to the end merchant; and
thereafterinitiating a settlement transaction including submitting a second electronic fund transfer for seeking to recover at least the permitted amount of the requested funds from the source account to the intermediary account.
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17. A system for making an irrevocable advance of funds to an end merchant by a requesting client without waiting for a successful settlement of an electronic fund transfer from the requesting client, the system comprising:
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an intermediary service having a server in electronic communication with the client, the end merchant, and an intermediate account;
a client interface for receiving at the intermediary service an request from the requesting client to transfer an amount of requested funds to the end merchant from a source account;
a verification interface for obtaining from the requesting client an assertion of the requesting client'"'"'s authorization to transfer funds from the source account and limiting a permitted amount of the requested funds to be transferred based on the strength of the client'"'"'s assertion;
a first automated clearinghouse request means for committing transfer of the permitted amount of the requested funds from the intermediate account as transferred funds which are transferred to the end merchant, the transferred funds being irrevocable to the end merchant; and
a second automated clearinghouse request means for initiating a settlement transaction including transfer of at least the permitted amount of the requested funds from the source account to the intermediary account. - View Dependent Claims (18, 19)
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Specification