Automated transaction processing system and approach with currency conversion

• US 20060229982A1
• Filed: 04/12/2005
• Published: 10/12/2006
• Est. Priority Date: 04/12/2005
• Status: Active Grant

• Current Assignee: Syncada LLC (US Bancorp)
• Original Assignee: Syncada LLC (US Bancorp)
• Inventors: Hahn-Carlson, Dean W., Bailey, William H., Pogue, James B.
• Granted Patent: US 7,970,671 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 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• 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

Transaction management for contract and contract-related approaches is facilitated. According to an example embodiment of the present invention, a transaction management system automatically sets contract terms including currency conversion terms for a transaction based on business rules previously established between parties to a transaction. In one implementation, the transaction management node automatically derives a contract term including a pricing-related term for a transaction between a buyer and seller using contract information therefor. The pricing-related term is used to set a price for the transaction, and a currency conversion term is used to convert the set price (or a portion of the set price corresponding to a particular transaction party) into a different currency.

Claims

1. An automated pricing and payment system for use with transaction parties who provide respective sets of business rules for transactions to be processed using the automated pricing and payment system, the business rules including information for selecting a currency conversion standard, the system comprising:

a transaction processor adapted to;

receive and use the business rules to derive a specific term for a transaction to be implemented by transaction parties, the transaction having a price that is set as a function of the specific term, the price being in a first currency;

select a currency conversion standard as a function of the business rules, the currency conversion standard being susceptible to fluctuation as a function of currency conversion rates;

convert the set price from the first currency into a second different currency for at least one party to the transaction as a function of the currency conversion standard; and

effect payment and settlement for the transaction as a function of the set price, the business rules and the converted set price.

2. The system of claim 1, wherein the transaction processor is adapted to derive a specific term that includes a price term characterizing a price of the transaction.

3. The system of claim 1, wherein the transaction processor is adapted to store the business rules.

4. The system of claim 3, further comprising a data storage arrangement for storing the business rules, wherein the transaction processor is adapted to store the business rules in the data storage arrangement.

5. The system of claim 1, wherein the transaction processor is further adapted to match a product identification term from a buyer with a seller product for identifying a particular product for which the specific term is derived.

6. The system of claim 1, wherein the transaction processor is further adapted to:

use business rules that include terms identifying a particular currency conversion standard; and

convert the set price from the first currency into a second different currency for at least one party to the transaction as a function of the currency conversion standard by using the identified currency conversion standard, at the time that settlement is effected, to convert the set price.

7. The system of claim 6, wherein the transaction processor is further adapted to:

use business rules including terms identifying two or more currency conversion standards for different types of currency conversions; and

select one of the two or more currency conversion standards as a function of the first and second currencies.

8. The system of claim 1, wherein the transaction processor is adapted to access business rules including terms for use in selecting a currency conversion standard among two or more available currency conversion standards for converting from the first currency to the second currency and to select the currency conversion standard as a function of the accessed business rules.

9. The system of claim 1, wherein the transaction processor includes a pricing engine programmed to use business rules and transaction information to derive a pricing term for a transaction, the transaction information including an identifying characteristic for associating the transaction with a particular set of business rules.

10. The system of claim 9, wherein the pricing engine is programmed to derive a pricing term using transaction information including at least one of:

a contract identifier for the transaction, an item identifier for an item being sold, a currency code identifying the currency in which the contract is denominated, quantity and order date.

11. The system of claim 1, wherein the transaction processor is adapted to receive a currency selection term associated with one of the transaction parties for use in processing transactions for the one of the transaction parties.

12. The system of claim 1, wherein the transaction processor is adapted select a currency conversion standard as a function of business rules characterizing a contract between two remote parties.

13. The system of claim 1, wherein the transaction processor is adapted to use business rules characterizing a contract between an operator of the transaction processor and a remote party to select a currency conversion standard.

14. The system of claim 1, wherein the transaction processor is further adapted to select the currency conversion standard as a function of the business rules and as a function of a current date and time at which the set price is converted.

15. The system of claim 14, wherein the transaction processor is adapted to use the business rules to select the time at which the set price is converted.

16. The system of claim 1, wherein the transaction processor is further adapted to select the currency conversion standard as a function of the business rules and of a particular reference date and time location to use in selecting the currency conversion standard.

17. The system of claim 1, wherein the system is adapted for use with a transaction involving a buyer and a seller and wherein the transaction processor is adapted to convert the set price for the buyer or the seller into a currency selected by the buyer or seller for which the currency conversion is being made.

18. The system of claim 1, wherein the transaction processor is adapted, for two or more transactions involving a currency conversion between a first and second currency during a particular business period, to convert a bulk sum of currency for all of the transactions from the first currency to the second currency and to effect payment individually for each party to each of the two or more transactions.

19. The system of claim 1, wherein the transaction processor is further adapted to assess a currency conversion fee to the at least one party to the transaction.

20. The system of claim 1, wherein the transaction processor is adapted to convert funds relating to the transaction from the first currency to the second currency at a first currency conversion rate and to convert funds for the at least one party to the transaction at a different currency conversion rate.

21. The system of claim 1, wherein the transaction processor is adapted to receive and use business rules indicating an acceptable range of currency exchange rates and to select a currency conversion standard as a function of the acceptable range of currency exchange rates.

22. The system of claim 1, wherein the transaction processor is adapted to use different currency exchange rate sources for different parties to the transaction.

23. The system of claim 1, wherein the transaction processor is adapted to assess a user fee to the at least one party to the transaction for converting the set price.

24. The system of claim 1, wherein the transaction processor is adapted to effect payment for the transaction as a function of the business rules and the converted set price by transferring funds in the amount of the converted set price to an owed transaction party identified by the business rules.

25. The system of claim 1, wherein transaction parties include a financial institution that facilitates the transaction payment, wherein the transaction processor is adapted to effect payment by transferring an amount in a set price of the first currency to an owed transaction party from the financial institution while establishing a liability to the financial institution in the first currency amount.

26. The system of claim 1, wherein transaction parties include a financial institution that facilitates the transaction payment, wherein the transaction processor is adapted to effect payment by transferring an amount in the converted set price of the second currency from an owing transaction party to the financial institution.

27. The system of claim 26, wherein the transaction processor is further adapted to effect payment by transferring an amount in a set price of the first currency to an owed transaction party from a debiting financial institution that is indebted to the sponsoring financial institution.

28. The system of claim 1, wherein the transaction processor is adapted to effect payment and settlement for the transaction by:

setting a pay to amount and currency for effecting payment to a seller party on behalf of a buyer party;

setting a bill to amount and currency for billing the buyer party for the effected payment and for transaction functions including the currency conversion.

31. The system of claim 1, wherein the transaction processor is adapted to:

compare an actual currency conversion rate specified by the selected currency conversion standard to a budgeted currency conversion rate as specified by the business rules;

in response to the actual currency conversion rate being different than the budgeted currency conversion rate, assess a difference between the converted set price using the actual currency conversion rate and the converted set price using the budgeted currency conversion rate.

29. A transaction processing and currency conversion arrangement configured and arranged to:

receive respective sets of business rules for transactions between transacting parties;

communicate with a plurality of buyer terminals and seller terminals and to provide a common source of data for users of the terminals, the data including seller offerings;

control access to the data and for configuring the type and arrangement of the data to be communicated with the at least one buyer terminal in response to the identification of a buyer receiving the communications;

for a transaction to be implemented by a buyer for the seller offerings, use the business rules for the buyer and sellers to automatically derive a currency conversion criterion for the transaction; and

use the currency conversion criterion to convert currency for the transaction from a first currency implemented by the seller in the seller offerings to a different currency.

32. The system of claim 29, further comprising recording an expense characterizing the assessed difference.

33. The system of claim 29, further comprising posting the assessed difference between the converted set price as an expense to a transaction party'"'"'s accounting management system as a function of business rules for said transaction party.

30. An automated pricing system for use with transaction parties who provide respective sets of business rules for transactions to be processed using the automated pricing system, the system comprising:

means for receiving and using the business rules to derive a specific term for a transaction to be implemented by the buyer and seller, the transaction having a price that is set as a function of the specific term, the price being in a first currency;

means for selecting a currency conversion standard as a function of the business rules; and

means for converting the set price from the first currency into a second different currency for at least one party to the transaction as a function of the currency conversion standard.