Invoiceless trading and settlement method and system

• US 20070136166A1
• Filed: 01/16/2007
• Published: 06/14/2007
• Est. Priority Date: 05/03/1999
• Status: Active Grant

• Current Assignee: Fast 101 Pty Ltd
• Original Assignee: Fast 101 Pty Ltd
• Inventors: Duncan, William
• Granted Patent: US 7,716,130 B2
• Time in Patent Office: Days
• US Class Current: 705/35
• 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 20/28 Pre-payment schemes, e.g. "pay before"
• CPC Class Codes: G06Q 20/367 involving electronic purses or money safes
• 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 30/0213 Consumer transaction fees
• CPC Class Codes: G06Q 30/0215 Including financial accounts
• CPC Class Codes: G06Q 30/0222 During e-commerce, i.e. online transactions
• CPC Class Codes: G06Q 30/0234 Rebates after completed purchase
• CPC Class Codes: G06Q 30/0235 constrained by time limit or expiration date
• CPC Class Codes: G06Q 30/0239 Online discounts or incentives
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 50/188 Electronic negotiation

Abstract

Methods and systems consistent with the present invention overcome the shortcomings of existing trading systems by providing an invoiceless trading system that creates incentives for customers to pay suppliers within a predetermined period of time, such as a settlement period. Specifically, the invoiceless trading system enables a customer to obtain a discount on orders placed with suppliers in return for an immediate payment (e.g., within 24 hours) by the customer. The supplier receives payment within the predetermined period of time, and the customer receives additional cash benefits by providing an early payment to the supplier. To communicate with and transfer funds between customers and suppliers, the invoiceless trading system may use an electronic gateway and a settlement bank. In addition to creating an incentive to embrace e-commerce, both customers and suppliers avoid the need to manually process orders and use invoices to complete transactions.

Claims

1. A method for a customer to obtain an early payment discount for an order from a supplier by paying the supplier via a settlement bank, the method comprising the steps of:

establishing by the customer an agreement with the settlement bank for settling orders placed by the customer, the agreement including a service fee and a rate of interest to be paid to the settlement bank by the customer in exchange for the settlement bank paying suppliers for orders placed by the customer;

transmitting from the customer an order message including an order for an item to the supplier;

receiving by the customer, in response to the order message, a shipping notification indicating that the order has been filled;

after the shipping notification is received by the customer, transmitting by the customer a payment message to the settlement bank to make a discounted payment to the supplier for the order, the discounted payment being an amount equal to a cost for the order less an early payment discount agreed upon between the customer and the supplier based on the supplier receiving payment for the order within a predetermined time period; and

after the discounted payment to the supplier for the order has been made on a first date, paying by the customer to the settlement bank a negotiated payment equal to the discounted payment plus the service fee and an interest amount calculated from the rate of interest for a time period between the first and second dates.

2. The method of claim 1 carried out by at least one computer, wherein the at least one computer uses an electronic gateway to communicate between the settlement bank, the supplier, and the customer.

3. The method of claim 1, wherein the early payment discount is a percentage off the cost for the order.

4. The method of claim 1, further comprising the step of:

receiving a confirmation message from the supplier indicating that the order can be filled before receiving the shipping notification.

5. The method of claim 1, further comprising the step of:

paying, by the settlement bank, the first amount to the supplier on the first date.

6. The method of claim 1, further comprising the step of:

negotiating, by the customer and the supplier, the early payment discount based on a fiscal attribute of the customer.

7. The method of claim 1, wherein transmitting the payment message to the settlement bank occurs after a predetermined event subsequent to receipt of the shipping notification by the customer.

8. A method for a settlement bank to settle an order for a customer so that the customer obtains an early payment discount for the order from a supplier by paying the supplier by a funds provider via the settlement bank within a predetermined time, the method comprising the steps of:

establishing by the settlement bank a settlement bank agreement with the customer for settling the order placed by the customer with the supplier by paying the supplier using funds provided by the funds provider; and

receiving, by the settlement bank, a payment message from the customer to make a discounted payment to the supplier for the order on a first date using funds from the funds provider, the discounted payment being an amount equal to a cost for the order less the early payment discount, the early payment discount being based on a fiscal attribute of the customer,

wherein after the first date, the customer pays to the funds provider by a second date a negotiated payment equal to the discounted payment plus a service fee established between the customer and the funds provider and an interest amount calculated from a rate of interest established between the customer and the funds provider based on a time period between the first and second dates.

9. The method of claim 8, further comprising:

after the payment message is received by the settlement bank, paying the discounted payment, using funds obtained from the funds provider, by the settlement bank to the supplier for the customer'"'"'s order by the first date.

10. The method of claim 8, further comprising the step of:

negotiating, by the customer and the supplier, the early payment discount based on a fiscal attribute of the customer.

11. The method of claim 8, wherein the rate of interest is negotiated based on a fiscal attribute of the customer.

12. The method of claim 8 carried out by at least one computer, wherein the at least one computer uses an electronic gateway to communicate between the settlement bank, the supplier, the funds provider, and the customer.

13. The method of claim 8, wherein the early payment discount is a percentage off the cost for the order.

14. The method of claim 8, further comprising the step of:

receiving, by the customer, a confirmation message from the supplier indicating that the order can be filled before the supplier receives payment.

15. The method of claim 8, wherein the first date falls within the predetermined time after the customer receives a shipping notification from the supplier.

16. The method of claim 8, wherein the funds provider and the settlement bank are parts of a single financial institution.

17. The method of claim 8, wherein receiving the payment message by the settlement bank occurs after a predetermined event subsequent to receipt of a shipping notification by the customer.

18. A method for a settlement bank to settle an order for a customer so that the customer obtains an early payment discount for the order from a supplier by paying the supplier by a funds provider via the settlement bank, the method comprising the steps of:

establishing by the settlement bank a settlement bank agreement with the customer for settling orders placed by the customer by paying suppliers using funds provided by the funds provider; and

receiving by the settlement bank a payment message from the customer to make a discounted payment to the supplier for the order on a first date using funds from the funds provider, the discounted payment being an amount equal to a cost for the order less an early payment discount agreed upon between the customer and the supplier based on the supplier receiving payment for the order within a predetermined period of time,

wherein after the first date, the customer pays to the funds provider by a second date a negotiated payment equal to the discounted payment plus a service fee and an interest amount calculated based on a time period between the first and second dates.

19. The method of claim 18, further comprising:

after the payment message is received by the settlement bank, paying the discounted payment, using funds obtained from the funds provider, by the settlement bank to the supplier for the customer'"'"'s order by the first date.

20. The method of claim 18, further comprising the step of:

negotiating, by the customer and the supplier, the early payment discount based on a fiscal attribute of the customer.

21. The method of claim 18, wherein the rate of interest is established by the customer and the funds provider based on a fiscal attribute of the customer.

22. The method of claim 18 carried out by at least one computer, wherein the at least one computer uses an electronic gateway to communicate between the settlement bank, the supplier, the funds provider, and the customer.

23. The method of claim 18, wherein the early payment discount is a percentage off the cost for the order.

24. The method of claim 18, further comprising the step of:

sending a confirmation message from the supplier to the customer indicating that the order can be filled before the supplier receives payment.

25. The method of claim 18, wherein the funds provider and the settlement bank are parts of a single financial institution.

26. The method of claim 18, wherein the payment message is received by the settlement bank after a predetermined event subsequent to receipt of a shipping notification by the customer.

27. A method for a settlement bank to settle an order for a customer so that the customer obtains an early payment discount for the order from a supplier by paying the supplier via the settlement bank, the method comprising the steps of:

establishing by the customer an agreement with the settlement bank for settling orders placed by the customer, the agreement including a service fee and a rate of interest to be paid to the settlement bank by the customer in exchange for the settlement bank paying suppliers for orders placed by the customer;

receiving by the settlement bank a payment message from the customer to the settlement bank to make a discounted payment to the supplier for the order, the discounted payment being an amount equal to a cost for the order less an early payment discount agreed upon between the customer and the supplier based on the supplier receiving payment for the order within a predetermined time period; and

after the discounted payment to the supplier for the order has been made on a first date, paying by the customer to the settlement bank a negotiated payment equal to the discounted payment plus the service fee and an interest amount calculated from the rate of interest for a time period between the first and second dates.

28. The method of claim 27 carried out by at least one computer, wherein the at least one computer uses an electronic gateway to communicate between the settlement bank, the supplier, and the customer.

29. The method of claim 27, wherein the early payment discount is a percentage off the cost for the order.

30. The method of claim 27, further comprising the step of:

receiving by the customer a confirmation message from the supplier indicating that the order can be filled before the supplier receives payment.

31. The method of claim 27, further comprising the step of:

paying, by the settlement bank, the first amount to the supplier on the first date.

32. The method of claim 27, further comprising the step of:

negotiating, by the customer and the supplier, the early payment discount based on a fiscal attribute of the customer.

33. The method of claim 27, wherein transmitting the payment message to the settlement bank occurs after a predetermined event subsequent to receipt of a shipping notification by the customer.

34. A method for a funds provider to pay a supplier via a settlement bank for an order placed by a customer so that customer obtains an early payment discount when the supplier receives payment for the customer'"'"'s order within a predetermined time, the method comprising the steps of:

establishing by the funds provider a funding agreement with the customer, the funding agreement including a service fee and a rate of interest to be paid by the customer to the funds provider for providing funds via the settlement bank to the supplier, wherein the customer instructs the settlement bank to make a discounted payment to the supplier for the order on a first date using funds from the funds provider, the discounted payment being an amount equal to a cost for the order less the early payment discount based on a fiscal attribute of the customer;

after the customer instructs the settlement bank, providing funds by the funds provider to the settlement bank for paying the discounted payment to the supplier for the customer'"'"'s order by the first date; and

after the first date, receiving by the funds provider from the customer by a second date a negotiated payment equal to the discounted payment plus the service fee and an interest amount calculated from the rate of interest based on a time period between the first and second dates.

35. The method of claim 34, further comprising the step of:

negotiating, by the customer and the supplier, the early payment discount based on a fiscal attribute of the customer.

36. The method of claim 34, wherein the rate of interest is negotiated based on a fiscal attribute of the customer.

37. The method of claim 34 carried out by at least one computer, wherein the at least one computer uses an electronic gateway to communicate between the settlement bank, the supplier, the funds provider, and the customer.

38. The method of claim 34, wherein the early payment discount is a percentage off the cost for the order.

39. The method of claim 34, further comprising the step of:

sending a confirmation message from the supplier to the customer indicating that the order can be filled before the supplier receives payment.

40. The method of claim 34, wherein the first date falls within the predetermined time.

41. The method of claim 34, wherein the funds provider and the settlement bank are parts of a single financial institution.

42. The method of claim 34, wherein the customer instructs the settlement bank after a predetermined event subsequent to receipt of a shipping notification by the customer.

43. A method for a funds provider to pay a supplier via a settlement bank to settle an order for a customer so that the customer obtains an early payment discount for the order from the supplier by paying the supplier via the settlement bank, the method comprising the steps of:

establishing by the funds provider an agreement with the customer for providing funds for settling orders placed by the customer, the agreement including a service fee and a rate of interest to be paid to the funds provider by the customer in exchange for providing funds to the settlement bank for paying suppliers for orders placed by the customer;

providing funds by the funds provider to the settlement bank to make a discounted payment to the supplier for the order on a first date, the discounted payment being an amount equal to a cost for the order less an early payment discount agreed upon between the customer and the supplier based on the supplier receiving payment for the order within a predetermined time period; and

after the first date, receiving from the customer by the funds provider a negotiated payment equal to the discounted payment plus the service fee and an interest amount calculated from the rate of interest for a time period between the first and second dates.

44. The method of claim 43, further comprising the step of:

negotiating, by the customer and the supplier, the early payment discount based on a fiscal attribute of the customer.

45. The method of claim 43, wherein the rate of interest is based on a fiscal attribute of the customer.

46. The method of claim 43 carried out by at least one computer, wherein the at least one computer uses an electronic gateway to communicate between the settlement bank, the supplier, the funds provider, and the customer.

47. The method of claim 43, wherein the early payment discount is a percentage off the cost for the order.

48. The method of claim 43, further comprising the step of:

sending a confirmation message from the supplier to the customer indicating that the order can be filled before the supplier receives payment.

49. The method of claim 43, wherein the funds provider and the settlement bank are parts of a single financial institution.

50. The method of claim 43, wherein the funds provider provides funds to the settlement bank after a predetermined event subsequent to receipt of a shipping notification by the customer.

51. A method for a funds provider to pay a supplier via a settlement bank for an order placed by a customer so that the customer obtains an early payment discount, the method comprising the steps of:

establishing by the funds provider a funding agreement with the customer, the funding agreement including a service fee and a rate of interest to be paid by the customer to the funds provider for providing funds via the settlement bank to make a discounted payment to the supplier for the order, the discounted payment being an amount equal to a cost for the order less an early payment discount agreed upon between the customer and the supplier based on the supplier receiving payment for the order within a predetermined period of time; and

after the discounted payment to the supplier for the order has been made on a first date, receiving from the customer by the funds provider by a second date a negotiated payment equal to the discounted payment plus the service fee and an interest amount calculated from the rate of interest based on a time period between the first and second dates.

52. The method of claim 51 executed by at least one computer, wherein the at least one computer uses an electronic gateway to communicate between the settlement bank, the supplier, and the customer.

53. The method of claim 51, wherein the early payment discount is a percentage off of the cost for the order.

54. The method of claim 51, further comprising the step of:

sending a confirmation message from the supplier to the customer indicating that the order can be filled before the supplier receives payment.

55. The method of claim 51, further comprising the step of:

paying, via the settlement bank, the first amount to the supplier on the first date.

56. The method of claim 51, further comprising the step of:

negotiating, by the customer and the supplier, the early payment discount based on a fiscal attribute of the customer.

57. The method of claim 51, wherein providing funds to the settlement bank occurs after a predetermined event subsequent to receipt of a shipping notification by the customer.

58. A method for enabling a customer to obtain an early payment discount for an order from a supplier by paying the supplier via a settlement bank using an electronic gateway, the method comprising the steps of:

permitting the customer to establish an agreement with the settlement bank for settling orders placed by the customer, the agreement including a service fee and a rate of interest to be paid to the settlement bank by the customer in exchange for the settlement bank paying suppliers for orders placed by the customer;

permitting the customer to transmit an order message including an order for an item to the supplier;

permitting the customer to receive, in response to the order message, a shipping notification indicating that the order has been filled;

after the shipping notification is received by the customer, permitting the customer to transmit a payment message to the settlement bank to make a discounted payment to the supplier for the order, the discounted payment being an amount equal to a cost for the order less an early payment discount agreed upon between the customer and the supplier based on the supplier receiving payment for the order within a predetermined time period; and

after the discounted payment to the supplier for the order has been made on a first date, permitting the customer to pay to the settlement bank a negotiated payment equal to the discounted payment plus the service fee and an interest amount calculated from the rate of interest for a time period between the first and second dates.

59. The method of claim 58 executed by at least one computer, wherein the at least one computer uses the electronic gateway to communicate between the settlement bank, permitting the settlement bank to pay the supplier, and the customer.

60. The method of claim 58, wherein the early payment discount is a percentage off the cost for the order.

61. The method of claim 58, further comprising the step of:

permitting the supplier to send a confirmation message to the customer indicating that the order can be filled before receiving the shipping notification.

62. The method of claim 58, further comprising the step of:

permitting the settlement bank to pay the first amount to the supplier on the first date.

63. The method of claim 58, further comprising the step of:

facilitating negotiation by the customer and the supplier of the early payment discount based on a fiscal attribute of the customer.

64. The method of claim 58, wherein permitting the customer to transmit the payment message to the settlement bank occurs after a predetermined event subsequent to receipt of the shipping notification by the customer.